We continue our quest into the market manipulation universe, finally, mainstream is paying attention. LIBOR, Gold, Silver - what will be next now? Will it bring Naked Short Sellers into the hot place as well? Couple of whistle blowers can ignite now the huge rally in totally beaten into the dust mining juniors.
We have an interesting study of the modern interconnected financial system - once it became insolvent the only way out is to pump liquidity in all forms to keep it running, debase the currencies and inflate the debt out covering the more and more uncovered losses along the way. Capital is eroded, banks are under constant "run" risk and nobody can take risk any more - the velocity of money drops with the real lending.
The razor sharp edge between deflation and Inflation will be tilt by all means to the inflation side on the world wide base - Gold and Silver will be the store of value as thousand years before. The complication will come with Oil price and its Mega-trend: Inflation multiplied by peak Oil - there is No More Cheap Oil. With FED involved in QE and record low and Negative Real Rates Oil became the real FED who controls the economic cycle now.
Now, try to add another input into your understanding of the global economic system - that all markets are rigged and manipulated:
Business Insider: Everyone Is Passing Around This 'Whistleblower' Letter Claiming To Know About Market Manipulation At JPMorgan
"With today's news from JP Morgan the old article from Business Insider is taking the new context at least - what revelations will be next now? JP Morgan's name is all over the place with the recent scandals - we can not tell yet that it will become the "Next Lehman moment" which will unleash QE3 - but company's involvements in MF Global bankruptcy, PFG bankruptcy, Trading Loss Revelations and today's announcement about "cooking the books" are not leaving any room for "error".