Saturday, September 12, 2009


Today's landscape continues to evolve with the deleveraging of the financial landscape. As many areas show a renewed vigor for risk and as we plow our precious resources into backing a new derivative based reinflation effort Will this work. You had better hope it does....because that is the end...its over......kaput.....(see 2012-2014 end of supercycle).

Even though we are desperately fighting to prevent deleveraging... other areas are not. Just look at some of the hottest regions for evidence of the "real story"....

Istithmar spent more than $25 billion on investments this decade, according to the Monitor-FEEM SWF transaction database. Among its investments are Yacht Haven Grande, a marina complex in the Caribbean, the W Hotel Union Square in New York and GLG Partners Inc., a hedge fund that has lost more than 61 percent of its value since the deal was announced in June 2007.
“Istithmar is in serious trouble,” said Rochdi Younsi, head of Middle East research at New York-based Eurasia Group. “At Istithmar, there’s a feeling that jobs aren’t secure and it wouldn’t be a surprise if the firm just disappeared

So sure.....we are least we appear to be .....but what of the rest of the world? Do they have the world's reserve currency status to print until their populace is forced to convert from risk adverse assets to risk..well apparently not all. And now the the meat of this post and the story that underlies the premise of the delevering of leverage ...or where the con meets the ponzi..... READ ALL OF THE FINAL is a tidbit

When Bear Stearns collapsed in March 2008 (incidentally at the then-highest price for silver in decades - $21), there was no one willing to take over their giant COMEX silver short position and the offsetting Chinese OTC contracts. Enter JPMorgan Chase. Remember, this was a time of great stress to the financial system and all efforts were directed to quickly fixing problems that arose. The giant silver short position at Bear Stearns was one such problem. With federal government guarantees against loss and criminal prosecution, JPMorgan did assume the role of master of the silver market. All this was revealed in subsequent Bank Participation Reports and in correspondence from the CFTC to various lawmakers. Since that time, JPMorgan has managed the giant silver short position. My speculation includes that Morgan has quietly offset its COMEX short position over the past year and a half with other unsuspecting parties in the OTC market.

The CON is in these final links for g_ds sake read these last two
This link is a must read
And for those that like to view an entertaining and fabulous interview...


  1. What exactly happens to the price of silver if China defaults? While covering a large short is bullish, defaulting a large short is..?

  2. Hi Kli,

    I am not normally as bearish as you but this article is interesting:

  3. ya morla i was wondering the same...

    To me it means China went short da silver..borrowed they have physical possesion of it? The person on the other side is out da silver. as to the price? If the long had to buy silver to cover the position then there would be quite the silver spike.


  4. kli..whats your play on edap. Im in at 3.3 but that resistance at 5 is killing it?? what do ya think?

  5. play the gaps is all I do with it.....a trade....I have sold it twice at 5 but joe plays the gaps

  6. kli,

    Playing the gaps on EDAP is very profitable and today was no exception.