LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

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LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby ninakat » Wed Mar 31, 2010 2:59 am

.

This is an absolutely fascinating story. The exclusive interview linked below from King World News is a must listen even if you don't have any interest in economics, because this has ramifications that potentially flow all the way to the top of the world's power structure (the central banks).

And, "coincidentally," the whistleblower and his wife were in a hit-and-run accident the day after his story was publicized (they were admitted to hospital but released the next day), according to GATA.

There's a lot in the interview -- fraud on a level that would make Madoff's numbers look like peanuts, media blackout of GATA interviews, leveraged "paper silver" where there is probably only 1 ounce of physical metal for every 100 certificates claiming they represent the metal, claims that this is treason and implicating the Federal Reserve and other central banks and government leaders, especially in the west.

I'm interested in hearing more opinion about the implications of all this -- but what I'm gathering is that now that this fraud is being exposed (despite censorship from the MSM), the dollar, the pound, and essentially all fiat currencies could plummet overnight due to loss of confidence, as a result of non-western investors crashing the COMEX and the London Metals exchange.

What does this mean in practical terms? Perhaps someone here at RI can hazard a guess or two. Let me just say that I don't expect the fallout to be pretty.

King World News - Exclusive Audio Interview
Andrew Maguire & Adrian Douglas
Tuesday, March 30, 2010

Andrew Maguire & Adrian Douglas: Discuss What Could Be the Largest Fraud in History - Andrew is an independent metals trader turned whistleblower at the center of a storm for exposing what could be the largest fraud in history involving countries, banks and government leaders. Adrian Douglas Board of Director from GATA, the man who Andrew reached out to joins in this interview where they discuss a fraud so extraordinary and so unimaginable that it is the kind of thing that only happens in hollywood thrillers. They also discuss the CFTC sponsored meeting on metals which was an unmitigated disaster because it additionally exposed the fraud on a grander scale.

To read Andrew Maguire’s documented e-mail exchange with the CFTC click here.
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby ninakat » Wed Mar 31, 2010 1:09 pm

The saga continues -- another interview today from King World News with 3 guys from GATA. Fascinating, really.

King World News Audio Interview
GATA interview
Wednesday, March 31, 2010

In this interview with GATA we continue the saga after just having interviewed Andrew Maguire, the whistleblower out of London. This gives a short and long-term view down the rabbit hole through the eyes of 3 of the GATA board members. GATA was so heavily involved not only in breaking the news at the CFTC meeting about the the metals manipulation but also at the same time quite possibly uncovering the largest fraud in history. The Gold Anti-Trust Action Committee was organized in January 1999 to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities. The committee arose from essays by Bill Murphy, a financial commentator, and by Chris Powell, a newspaper editor in Connecticut, published at Murphy's Internet site, lemetropolecafe.com. In this GATA Roundtable we will have Bill Murphy, Chris Powell and Adrian Douglas.
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby ninakat » Wed Mar 31, 2010 3:30 pm

I had to transcribe the following comment from Chris Powell in the GATA interview. (starts at 24:42)

ERIC KING: Chris, let me ask you, and then I want to ask Adrian and Bill, what should happen in the end -- I mean, their [TPTB] argument is going to be "national security, we had to do this because as gold and silver rises, it's an indictment against all paper currencies globally and people depended on those currencies for a structured society and for their standards of living, and so out of interest of national security, we had to do this" and I want to get this from Bill and Adrian, but Chris, let me start with you. How do you respond to that, and what should happen to these people, in your opinion, that have been involved in this activity, that have surreptitiously suppressed the price of gold and silver? Have they acted.... has it been a crime, has it been a treasonous crime? What are you thoughts?

CHRIS POWELL: You know, it's a policy that's built on a fraud and a lie. It started as a small fraud and a small lie, but as I remarked at our Washington conference two Aprils ago, that one market intervention encourages another and another and increases the political pressure to keep intervening to benefit special interests rather than the general interest, and you can't undo the previous intervention, the previous fraud, without admitting it, and you just have to keep committing more and more and more to cover your tracks or to protect the people you've been protecting. And, as things have developed, our whole world financial system now is built on a fraud. It's immoral, I think by any standard, in spite of all the people who have built their livelihoods upon it. It is still built on a fraud that is expropriating many, many people -- many more people than I think understand it -- I mean, any country, any commodity country, any country in the developing world has been expropriated here. That's all that developing countries can do, basically, is exploit their natural resources to get started in the world, and this is a fraud on them. It expropriates their natural resources by paying them less than a market price for those resources. It is a cosmic crime. It is the assignment of power to a very few people, to determine the value of all capital and labor in the world. It's an affront to decency, it's an affront to democracy. There is an old Latin phrase that used to be familiar in British jurisprudence Fiat justitia ruat caelum "Let justice be done though the heavens fall."

[from Wikipedia: Fiat justitia ruat caelum is a Latin legal phrase, meaning "May justice be done though the heavens fall." The maxim signifies the belief that justice must be realized regardless of consequences.]
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby Simulist » Wed Mar 31, 2010 3:39 pm

It is a cosmic crime. It is the assignment of power to a very few people, to determine the value of all capital and labor in the world. It's an affront to decency, it's an affront to democracy.


Well, for all those people who say, "How could such a small group of people some 'conspiracy theorists' posit are running the world actually pull off something of this magnitude?" …um… well, this is pretty much how they could do it.
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby madeupname452 » Wed Mar 31, 2010 10:24 pm

or is this fraud bigger?
http://www.nytimes.com/2010/03/12/business/12norris.html
Perhaps the largest case of “buyer’s denial,” at least in terms of alleged damages, is in the fraud involving a tiny company known as CMKM Diamonds, which purported to have valuable diamond mining claims. In reality, what it had was a publicity machine, including the sponsorship of a car at “funny car” races around the country.

Several shareholders in CMKM — some of whom kept buying shares after the government exposed the fraud — want 10 current and former commissioners of the Securities and Exchange Commission to pay them $3.87 trillion, an amount equal to about half the United States government debt in public hands. You might think that would be enough, but the suit claims those are merely compensatory damages. They also want punitive damages, but do not cite a figure.

That is an impressive amount for a company whose last published balance sheet showed total assets of $344. That is dollars, not millions.

The tale the shareholders tell, in a lawsuit filed in January in federal district court in Santa Ana, Calif., is of a conspiracy involving not just the S.E.C., but also the Justice Department and the Department of Homeland Security.


I dont know but it is a strange murky tale.
FWIW Christopher Story has a unique and difficult to read take on it here
CMKM/CMKX $3.87 TRILLION LAWSUIT GOES 'MAINSTREAM'
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby apologydue » Wed Mar 31, 2010 11:28 pm

While poking around in the archives of this forum a few weeks ago I saw something related to this situation. It was written a good while back. I can't remember exactly what it said but I will see if I can find it again. I think it was in something that was written about Madoff but I am not for sure.
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby apologydue » Wed Mar 31, 2010 11:47 pm

I found it by using Comex as a search term. I bolded the parts about Comex. I included the post before and after the post about the Comex to add context.



nathan28 wrote:
vig, you say above no one wants to get caught holding bonds--maybe (i mean, right now is a good time not to have any paper wealth), but look at GM. Senior bondholders are getting paid out, everyone else's contracts, shares, pensions are getting trashed. At what point does regular bankruptcy become flat-out looting? That rumbling about a sales tax sounds like it'd fit, too--what better way to pay senior bondholders than to institute regressive taxes that hit the people who buy bonds the least hard?





vigilant wrote:

OLD MCDONALD HAD A FARM, EEII EEII OHHHHH


nathan28 I know that you personally don't need a response of this magnitude because you understand the game. But considering that its been a while since I have written anything financially related I decided to do an in depth explanation in answer to your question for forum readers that need and appreciate the 'finance for dummies' or 'cliff note' version. What I wrote is not complicated by financial jargon. Its written in alley language that we can all understand.

Very salient points, and what is happening at GM is looting. GM isn't going bankrupt, its being taken over by the biggest players on the block, and you know they will get paid no matter what they have to take from whomever. These people are big enough in the game, and control enough of the game, that they can direct these bailout funds to a "first in first out" status.

Regardless of what "should be", as you astutely know, these (sic) bailout investments can be tiered in any way the big players see fit, much like preferred and common stock. Preferred stock gets honored first, and the pension holders with common stock will get screwed if there isn't enough money left in the game. These people have no intention of putting themselves in a position to lose a single dime because they simply don't have to.

Looting was the intention from the beginning, and looting they have been doing from the first note of the first dance. They fully intend to load their books with every industry and business they want, such as GM, and have the bill paid by our future labor, us taxpayers.

The problem that could still arise for some of the players is the possibility that the biggest players are not through screwing the smaller players, the bag holders, the chumps, the Bernie Madoff's in the game. Every time a Bernie gets chumped, it directly extrapolates itself into the common man's pocket too through pension funds, stock holdings, municipal bonds that institutions were holding, etc...whatever...But it isn't the common man that is my focus of these thoughts in this writing.

A lot of people got burned when they pimped Bernie Madoff, because Bernie had pimped a lot of people out of their money under false pretenses. I haven't checked it diligently, but it appears that most of the people that got pimped by Bernie were still smaller players that were bilking the public through the ownership of charities, and other dubious enterprises.

Some were simply regular citizens with enough money to give Bernie, but it seems that the bulk may have been people that are not in a position to complain too loudly, like the people that were skimming charities. Its sort of like stealing money from a drug dealer, knowing that he can't complain too loudly, because if he does, the people that looted him will bust him and put him in jail.

Bernie was considered a 'new rich pest' that had no blue blood. Search Bloomburg Financial's site for an article that includes both Madoff and Rothschild. Read the touted esteemed write up of Rothschild's glowing 250 year history, as they compare it to Bernie's piker short term little piggy ass. The jest of the article is, over and over, "Bernie is a new rich slug with no bloodline, and Rothschild is an esteemed family of hundreds of years history that funded the Battle of Waterloo, etc..." Gives you a perspective of how this game is played.

Bernie was the guy at the parties, that had enough money to get in the door, but that nobody wanted to stand around and talk to because he was irritating. He had the right clothes and shoes, but you could just tell that he had tried too hard. Too trendy, and didn't have that old blood dignity, so to speak. He spent too much time hamming it up talking about "how we wealthy people do things"...blah...blah...blah...He tried too hard to fit in and equate himself with the true blue blood wealth instead of being quiet and humble, and in subtle manner letting the blue bloods know that he was inferior to them, and thanking them for letting him participate. He was the guy at the party that the truly wealthy blue bloods would say about, "i'll be damn glad when the bag he's holding hits the floor so we can get rid of his irritating ass because he is on my last nerve"...

As far as the shaky feelings for bond holders goes, the reason I alluded to that is because the yield curve has been close to having its back broken. The bond market was choking on that last load of bonds they were unloading. We have seen the biggest gap in the bond market in history. Too much too quick. This heist is unprecedented in all of history and some of the smaller "investors" also known as looters, in the chain are scared, and rightly so. This is a once in a hundred year reloading, and when that happens, anybody's fan can get hit with shit if they are not the biggest shark in the tank.

I use the word "smaller" as if 100 billion isn't a lot of money but we know it is. Maybe 'control" would be a better word. Smaller players have no control, and if they get chumped its OVER FOR THEIR ASS IN A BIG WAY. Not only are they broke, but since they were so easily disregarded and used up, they have to fear getting busted and end up in jail too. If the control guys are willing to bankrupt them, obviously they are only unrespected griss for the mill, and have no certainty that they won't end up in the worst possible position, if the game also needs a fall guy.

They realize that this situation has been pushed to its limit. Essentially, its all about selling the future labor and productivity of 'us' the taxpayer to whomever will buy the debt. These bankers only own and control the world by loaning a "promise that the mules in the field will produce", and generate a certain Gross Domestic Product. In the U.S. the bankers have approximately 300 million mules in the field. These mules, according to average statistics, will each generate X amount of dollars in X amount of time. Were they standing around talking, the conversation would be such as...literally too. We're "plowshares", and the incentive we receive, whether we know from whence the pain comes or not, is called the "sword"...

"What have you been up to lately?"
"not much, just driving swords into plow shares, you know how it is"
"which section of the herd are you going to buy next?"
"not sure yet, but I have some cowpokes checking the stock"

Owning debt is the most coveted place in the financial hierarchy. The more you own, the more interest on the debt that comes your way. Even more valuable, are the taxes that will be collected through the labor this debt represents. Taxes equal labor credits, energy, force, work, in practically endless supply. For the biggest players, its free money, because they are not loaning anything at all of value that they own, other than our labor. They can sell this future labor to buyers for a lump sum right now. These buyers are mostly buying this future labor with "nothing" too, because the Chinese Government is printing money too, its only paper. It literally is a 'slave trade' and nothing more.

We enter into it voluntarily because we need food, so we need those bank note dollars. It is legal to pay workers with "money" but a man just got arrested for doing so. Legally these bank notes we carry around are not money. Gold and silver coin are indeed money, and the man that got busted paid his workers in gold coin, real money. He paid them at the rate of the face value of the coin, which is of course worth a lot more than face value, and according to the constitution that is legal money.

The grocery business, like the car and housing industries, is being bought by the same people. Large independent farmers were paid not to grow food. Remember Willie Nelson and farm aid? Now it is down to the small yard plot gardener growing a few veggies in his back yard. They just passed laws to regulate that too, because of course, you're too dumb to grow food and might hurt yourself with it, so it needs to be inspected. If you transport it, even a basket of tomatoes that you are taking to your Aunt, it is subject to reporting, tracking, and inspection. Slowly, the requirements to even grow a tomato plant will become so stringent, and the seed cost so high, they plan to drive the backyard gardener out of business too. You won't be able to save seeds from last years plants because seeds are being rendered "ungerminable" before shipment. So...seeds will become scarce.

A lot of our asses are now working for the Chinese, Russians, French, or whoever will fork over something of value to get their hands on our future labor. Instead of being put on a ship and taken overseas like the old days, electronic transactions and transfers of items of real value are used due to the fact that we now have cargo planes to collect the ransom for our labor quickly. Slave traders get to keep the slaves, sell their labor, while also making them buy their goods from the company store, which increases the value of a slave to its owner. Anything the slave can be enticed or forced to buy or borrow is extra revenue. The old days of having to buy from the "Company Store" are just around the corner...again.

Some of these guys have gotten so big, that the U.S. is only one pasture in a much bigger farm. This makes the game much more dangerous if you have no control because it makes it much harder to understand how much debt has been sold from the farm. Pastures are countries, and there are farms with several pastures tended by the same farmer (banker, or small group of bankers) Rothschild's wife didn't allude to him as a "gentlemen farmer" for nothing ya know. Farmer of men...Old McDonald had a farm, eeii eeii ohhhh. Means more than ya think. Fe Fi Fo Fum, I smell the blood of an Englishman...means more than ya think.

These deals are structured in all kinds of crazy ways, and the words "bond market" covers it for the most part, and aside from, and in addition to that, the sorts of deals they swing that we never know about are as many and as creative as they can think up. They might take a goldmine in trade for our asses. Just like all those CDO's that stand as an untraceable front for the hidden companies behind them that are buying the GM's, and etc...We never know. This future labor is being sold off, and the bulk of it is being kept by our owners for themselves, because it is their lifeblood, and without it, the whole house of cards falls tomorrow. They are forcing us to borrow money, and also forcing us to work our asses off to pay the interest on what we borrow, and forcing us to pay taxes on the worthless paper they run through our hands.

This paper, to these bankers, only represents one thing, and that is a "labor credit". If they can get us to work for these pieces of paper, and then force us to give a lot of it back to them, they can in turn give it back to us, and have us do whatever they want us to do for them. We have to have it, for one reason, and that is because that is what the bankers demand that we pay taxes with. Since it is what we have to pay taxes with, we must scramble around and get us some of it. That is what makes it valuable as a trading unit between us, the common folk, too. If we didn't need it for taxes, we would barter and trade amongst ourselves, because we wouldn't need their little pieces of paper. We might use a lot of it, but we wouldn't have to have it.

Each dollar represents a certain amount of labor from a school teacher, plumber, engineer, etc...THE TRUE BEAUTY IS, THAT THEY CAN STORE THESE LABOR CREDITS, INDEFINITELY, AND THEY CAN BE CONVERTED INTO ANYTHING THESE BANKERS LITTLE HEARTS DESIRE. ]

A plumber pays taxes, but right now they don't need plumbing done. No problem. They store his labor in a jar or a piggy bank. In a couple of days they need a soldier to go kill some folks that wear turbons. No problem, they take the plumbers labor, simply convert it into a soldier, by giving the soldier the plumbers labor, in the form of his tax money. A teacher's labor can be magically converted into an airplane, or the services of an engineer. These labor credits don't spoil, and like true magic, they become whatever these people desire. Now thats magic...

If they shove too many trillions in taxpayer debt down our throats, more than we can work off in a reasonable amount of time, the people that fork over something of value to buy it, and expect a return, will get screwed because too much debt was sold, and there are not enough of our little mulie asses to work it off. These people that get screwed could be anybody from hedgefunds run by rich kids that inherited a trust fund, to some foreign government, but it damn well won't be the international bankers that own us and run this side of the show.

Anything that gets left holding the bag, if it squeaks and causes trouble, will be eaten. Plain and simple....

Question is, truly, how much debt have they sold? How much do they plan to keep for themselves? Are they selling way too much, with full intention of eating some squeakers, because they know they can screw them out of some valuables in the process?

Probably...Folks that have enough money to play this game could end up with that little Troll Doll you win at the carnival, with long blue wooly hair in trade for their valuables. Some already have...

I'm not sure if that is what these rumors of a run on the Comex Gold Exchange are about or not. Of course Comex doesn't have the bullion to back the worthless paper receipts they have written. They have sold tons upon tons of gold that does not exist, also known as "paper gold". John Brown buys gold from Comex, but of course most of the time John Brown does not take physical delivery of the gold. Like a stock purchase, he accepts a piece of paper that says, "John Brown own 1 million in gold".

This is the oldest game in town, and is how fractional reserve banking was initially born. Just like the fictional money we think we have in the bank, that is not there, neither is the gold in the Comex Gold Exchange. Like a bank seldom if ever suffers a rush of people wanting their money all at once, call a "run", neither does the Comex suffer a "run" from people all suddenly showing up demanding their gold.

The biggest players are not stupid, and they don't buy paper gold. If they buy gold, they have it delivered to the doorstep COD. The rest of the people that buy gold, almost never take physical delivery of it. The people that do are usually the incredibly small buyers that think its nifty to have two gold coins under the bed, or the smart people. Most people are not smart enough to demand physical delivery.
Comex has a lots of folks goodies held at ransom though...


-------------------------------------------------------------------------------------

and this from smiths in reply: he was quoting someone else but I do not know who




on bonds


Quote:
What's happening in bond land? The latest US govt bond auction was for $110 billion. Two years ago the average monthly bond auction total was $5 billion, $10 billion, numbers like that. The US govt finances its debt with bonds. A $2 trillion deficit means $2 trillion in new bonds needs to be issued. Approx. $200 billion a month.
While that action may be in the pipeline, as of today the ACTIONS taken in the bond market by the players are what is important. And those actions, believe it or not, are to buy bonds. Money is starting to come out of general equities, aka the stock market, and into bonds. Money is not coming out of bonds, it's going in. This is what the chartists don't understand. Money isn't just trickling in, it's pouring in. But it's not enough to meet the govt's skyrocketing demand for money!



http://www.greenenergyinvestors.com/ind ... 0&p=110721

on the COMEX and precious metals



Quote:
My reaction: The strange activity in precious metals includes:

1) A surprisingly small amount of gold contracts were delivered, especially when compared to silver. Only 16% of June gold contracts standing for delivery on Thursday were delivered compared to 94% of June silver contracts.

2) The open interest numbers for Friday's big up day in both gold and silver unexpectedly/unexplainably fell. If shorts had actually been covering their positions, Friday's price activity would have been much more spectacular to the upside. This suggest that perhaps there were more deliveries than reported.

3) There has been record breaking volume of contracts traded in both gold and silver in the last few weeks.

4) There have been large strange fluctuation in COMEX’s reported silver inventories.

My Suspicions:

Delivery requests are being understated. There is only one thing that can make open interest go up: someone sells new contracts to short gold. However, there are two things that can cause open interest to decrease:

1) Short covering—Shorts buy back contracts they sold.
2) Deliveries—Shorts delivery gold to settle contracts.

I believe open interest for gold fell on Friday because of deliveries that were, for some reason, not reported. As for what is happening with COMEX’s silver inventory or the eye-popping volumes being traded, I have no idea, but it is strange.





http://www.marketskeptics.com/2009/06/m ... etals.html
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby ninakat » Thu Apr 01, 2010 3:21 am

apologydue, thanks for that input and for digging up that info on the COMEX -- I do remember all the talk, last year I believe, about the COMEX. In fact, Jim Sinclair (jsmineset.com) was trying to force the issue and coerce investors with paper-gold to demand delivery. I guess it didn't work then, at least not enough to expose the fraud.

But this seems different now. In the first interview above (with Andrew Maguire and Adrian Douglas), there's talk about how rich Asian investors were just waiting for confirmation about the paper-gold racket, and now that they have it, they're likely to crash the COMEX.

In another forum I visit (LATOC), one of the posters, plastixxman, had this comment, which I found quite plausible:

Any nation or large investment group seeking to rapidly acquire physical metal in large quantities WILL upset the market in a big way. If the Chinese can stablize their own economy and undermine those of the West at the same time by making LARGE BIDS for gold and silver on the Comex and LBMA and insisting on delivery they can shut down the exchanges and raise the price of the metal very fast. Being that the chinese are still trying to obtain as much gold and silver by stealth as they can they will not do this yet, however, if they are denied in their bids on physical metal and told to accept cash equivilent instead they have nothing to lose by crashing the London and New York price fixing scam on the metals. Doing so will vastly raise the prices that Chinese mines obtain for their production, and being a large producer it will greatly benefit their ability to build up their capital reserves and back their currency for long term stability. It wil also give them the ability to influence the price of the metal more themselves.

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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby ninakat » Thu Apr 01, 2010 3:25 am

And here's another "coincidence" that appears just too obvious (that someone, ahem, is trying to keep this story from getting out):

Sophisticated attack disables King World News site for 2 hours
10:25p ET Wednesday, March 31, 2010

Dear Friend of GATA and Gold (and Silver):

Internet servers hosting the King World News Internet site, which today posted a half-hour interview with three GATA board members, were attacked and disabled tonight from approximately 8 to 10 p.m. ET.

The servers are maintained by one of the largest Internet site hosting companies in the world and one of its technicians told King World News proprietor Eric King, "We cannot figure out why this cluster of servers is being attacked." The King World News site host has maintained the site on a "grid" system of servers so that ordinary technical problems with any one server cannot disable the site, but tonight's attack was sophisticated and brought down the entire grid.

King and his family have not been attacked and one may suppose that what happened tonight at least is preferable to being rammed by a hit-and-run driver, as CFTC whistleblower Andrew Maguire and his wife were rammed in London the day after GATA disclosed at last week's hearing of the U.S. Commodity Futures Trading Commission that Maguire had given the commission detailed warning of a manipulation of the futures market and the commission had done nothing about it.

At this hour the King World News interview with the three GATA board members -- GATA Chairman Bill Murphy, Adrian Douglas, and your secretary/treasurer -- appears to be accessible again here:

http://www.kingworldnews.com/kingworldn ... _GATA.html

If King World News is becoming Radio Free America, this sort of thing may happen again.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby ninakat » Thu Apr 01, 2010 3:29 am

madeupname452 wrote:or is this fraud bigger?
http://www.nytimes.com/2010/03/12/business/12norris.html
Perhaps the largest case of “buyer’s denial,” at least in terms of alleged damages, is in the fraud involving a tiny company known as CMKM Diamonds, which purported to have valuable diamond mining claims. In reality, what it had was a publicity machine, including the sponsorship of a car at “funny car” races around the country.

Several shareholders in CMKM — some of whom kept buying shares after the government exposed the fraud — want 10 current and former commissioners of the Securities and Exchange Commission to pay them $3.87 trillion, an amount equal to about half the United States government debt in public hands. You might think that would be enough, but the suit claims those are merely compensatory damages. They also want punitive damages, but do not cite a figure.

That is an impressive amount for a company whose last published balance sheet showed total assets of $344. That is dollars, not millions.

The tale the shareholders tell, in a lawsuit filed in January in federal district court in Santa Ana, Calif., is of a conspiracy involving not just the S.E.C., but also the Justice Department and the Department of Homeland Security.


I dont know but it is a strange murky tale.
FWIW Christopher Story has a unique and difficult to read take on it here
CMKM/CMKX $3.87 TRILLION LAWSUIT GOES 'MAINSTREAM'


That's quite a story. Jeez, so many scandals, so little time. On the surface, it seems a ridiculous sum -- but, it's certainly interesting that yet more allegations of conspiracy are surfacing at the very top of government and finance.
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby ninakat » Wed Apr 07, 2010 1:17 pm

.

The saga continues -- and, this current story/interview might be the impetus for today's rise in gold despite the dollar not dropping. But this has implications far beyond the price of gold, because it's also an indictment of government run fiat currencies globally (which are essentially ponzi schemes).

King World News - Exclusive Audio Interview
Harvey & Lenny Organ & Adrian Douglas
Wednesday, April 7, 2010

Harvey & Lenny Organ & Adrian Douglas: Drop Another Bombshell In What Could End Up Being The Largest Fraud In History - I [Eric King] was contacted again by Adrian Douglas, Board of Director for Gata with another stunning new bombshell involving the man he testified with at the CFTC meeting Harvey Organ. Harvey, who was invited by the CFTC to testify and his son Lenny describe an eyewitness account with another piece of the puzzle in what could turn out to be the largest fraud in history. This time a large international bank with almost 15 million customers in 50 countries around the world becomes part of this unfolding saga. It is so hard to believe and unimaginable so let’s continue our trip down the rabbit hole with another King World News exclusive interview.

+ + +

The Latest Gold Fraud Bombshell: Canada's Only Bullion Bank Gold Vault Is Practically Empty, Is The Central Fund Of Canada Insolvent?
Submitted by Tyler Durden on 04/07/2010

Continuing on the trail of exposing what is rapidly becoming one of the largest frauds in commodity markets history is the most recent interview by Eric King with GATA's Adrian Douglas, Harvey Orgen (who recently testified before the CFTC hearing) and his son, Lenny, in which the two discuss their visit to the only bullion bank vault in Canada, that of ScotiaMocatta, located at 40 King Street West in Toronto, and find the vault is practically empty. This is a relevant segue to a class action lawsuit filed against Morgan Stanley, which was settled out of court, in which it was alleged that Morgan Stanley told clients it was selling them precious metals that they would own in full and that the company would store, yet even despite charging storage fees was not in actual possession of the bullion. It appears that this kind of lack of physical holdings by all who claim to have gold in storage, is pervasive as the actual gold globally is held primarily in paper or electronic form. Lenny Organ who was the person to enter the vault of ScotiaMocatta, says "What shocked me was how little gold and silver they actually had." Lenny describes exactly how much (or little as the case may be) silver was available - roughly 60,000 ounces. As for gold - 210 400 oz bars, 4,000 maples, 500 eagles, 10 kilo bars, 10 one kilogram pieces of gold nugget form, which Adrian Douglas calculates as being $100 million worth, which is just one tenth of what the Royal Mint of Canada sold in 2008, or over $1 billion worth of gold. As Orgen concludes: "The game ends when the people who own all these paper obligations say enough and take physical delivery, and that's when the mess will occur."

Also note the interesting detour into what Stephan Spicer, a VP of a major bank and a friend of the proprietor of the Central Fund Of Canada, has said in regard to these observations: he wanted access to his 15,000 oz of silver, and had to wait 6-8 weeks for its to be flown in from Hong Kong. What this may imply for the CFC itself is rather critical - the CFC notes on its website it is in possession of 1.3 million and 67.3 million ounces of gold and silver, respectively. One wonders just how much actual gold is really backing these claims.

It is funny that central bankers thought they could take the ponzi mentality of infinite dilution of all assets coupled with infinite debt issuance, as they have done to fiat money, and apply it to gold, in essence piling leverage upon leverage. They underestimated gold holders' willingness to be diluted into perpetuity - when the realization that gold owned is just 1% of what is physically deliverable, you will see the biggest bank run in history.
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby MacCruiskeen » Wed Apr 07, 2010 6:37 pm

I do'n't understand this. Can someone explain?
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby Wombaticus Rex » Wed Apr 07, 2010 7:48 pm

MacCruiskeen wrote:I do'n't understand this. Can someone explain?


Yes. The market in precious metals is totally corrupted and most people who think they're holding actual metal deposits actually have worthless paper - meanwhile, tiny cabal pockets the $Trillion+ difference.

This will probably not come as much of a surprise to you.

As for fiat currency collapsing because it's a lie, no. It's a lie we all live on. Nobody has a sufficiently vested interest to short the dollar but hardcore ideo-tards with a grudge -- one spot where Chicago school fundamentalists and Islamic "terrorists" overlap almost 100%.

I just don't think either or both of them would be enough. Nobody can shit on the dollar without spraying poo all over their own backyard. (and, hands)
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby apologydue » Wed Apr 07, 2010 11:32 pm

Now that people are understanding that they got "ponzied" it will be interesting to see what they do. If the gold exchanges such as the Comex, etc...get rushed all the paper gold holders will get screwed out of their investment because the whole thing will collapse and they will lose their entire investment. If I were a huge investor and suddenly realized I were caught in this scam I would pray that there was not a run on the gold exchanges. I would sell out of my paper gold and get my cash back and hope I was able to do so before all the other people that got scammed did the same thing. If paper gold investors all start suddenly selling their paper gold at the same time it would have the same effect as investors suddenly demanding physical delivery. A rush on the gold exchange. The people that get their paper gold sold first will get their cash back if a rush happens.

I sort of suspect that this information that appears to be 'leaking' about this situation is in fact not leaking. I suspect it has been strategically released in an effort to start a rush on the gold exchanges. If not to start a rush, an excuse to steal the money of the paper gold investors. The net effect is the same. Once the scandal is exposed the paper gold investors money is effectively transferred into different pockets. In order for it to be transferred there needs to be a public scandal. We'll see. But it seems likely. Certain people, who are already strategically invested, will profit enormously from a rush, as the rush of money flows from the losers pockets into their pockets.

Then the whole thing will be like the mortage scam. It will be out in the open, people will have lost hundreds of billions of dollars, and the regulators can "investigate the situation because they are totally confused as to how this could have happened".

The game board can also now be reset. The sales of paper gold can begin again for the next round of suckers now that this round of suckers have been fleeced.




http://www.zerohedge.com/article/latest ... ally-empty


Continuing on the trail of exposing what is rapidly becoming one of the largest frauds in commodity markets history is the most recent interview by Eric King with GATA’s Adrian Douglas, Harvey Orgen (who recently testified before the CFTC hearing) and his son, Lenny, in which the two discuss their visit to the only bullion bank vault in Canada, that of ScotiaMocatta, located at 40 King Street West in Toronto, and find the vault is practically empty. This is a relevant segue to a class action lawsuit filed against Morgan Stanley, which was settled out of court, in which it was alleged that Morgan Stanley told clients it was selling them precious metals that they would own in full and that the company would store, yet even despite charging storage fees was not in actual possession of the bullion. It appears that this kind of lack of physical holdings by all who claim to have gold in storage, is pervasive as the actual gold globally is held primarily in paper or electronic form. Lenny Organ who was the person to enter the vault of ScotiaMocatta, says “What shocked me was how little gold and silver they actually had.” Lenny describes exactly how much (or little as the case may be) silver was available – roughly 60,000 ounces. As for gold – 210 400 oz bars, 4,000 maples, 500 eagles, 10 kilo bars, 10 one kilogram pieces of gold nugget form, which Adrian Douglas calculates as being $100 million worth, which is just one tenth of what the Royal Mint of Canada sold in 2008, or over $1 billion worth of gold. As Orgen concludes: “The game ends when the people who own all these paper obligations say enough and take physical delivery, and that’s when the mess will occur.”
Also note the interesting detour into what Stephan Spicer of the Central Fund Of Canada, said regarding his friend at a major bank, who wanted access to his 15,000 oz of silver, and had to wait 6-8 weeks for its to be flown in from Hong Kong.
It is funny that central bankers thought they could take the ponzi mentality of infinite dilution of all assets coupled with infinite debt issuance, as they have done to fiat money, and apply it to gold, in essence piling leverage upon leverage. They underestimated gold holders’ willingness to be diluted into perpetuity – when the realization that gold owned is just 1% of what is physically deliverable, you will see the biggest bank run in history.
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Re: LARGEST FRAUD IN HISTORY? (whistleblower Andrew Maguire)

Postby mentalgongfu2 » Wed Apr 07, 2010 11:49 pm

I've been slowly been working my way through this book:

http://en.wikipedia.org/wiki/Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds

Extraordinary Popular Delusions and the Madness of Crowds (Google books entry)

Extraordinary Popular Delusions and the Madness of Crowds is a history of popular folly by Scottish journalist Charles Mackay, first published in 1841. The book chronicles its subjects in three parts: "National Delusions", "Peculiar Follies", and "Philosophical Delusions".

The subjects of Mackay's debunking include economic bubbles, alchemy, crusades, witch-hunts, prophecies, fortune-telling, magnetisers (influence of imagination in curing disease), shape of hair and beard (influence of politics and religion on), murder through poisoning, haunted houses, popular follies of great cities, popular admiration of great thieves, duels, and relics. Present day writers on economics, such as Andrew Tobias and Michael Lewis, laud the three chapters on economic bubbles.[1]


It's amazing what you can learn from history, if you have the time and inclination to look, and the biggest thing I've taken away from perusing this book, particularly the chapters on economic bubbles, is that none of this is new. The game was perfected some time ago, and it merely continues.
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