MF Global: Was It a Hit?
by Lawrence Lepard
are Ben Bernanke, or on the Board of Governors of the Federal Reserve.
The time frame is July and August of 2011 and the price of gold
is on a tear. Commodities inflation has been persistent and is breaking
out everywhere. Your prediction that inflation is contained
and is a temporary phenomena are beginning to look absurd.
What do you do?
that QE3, the primary drive of inflation, is coming and then fail
to deliver at the September FOMC meeting. That takes care of the
price of gold and the gold stocks. Ah, but those pesky commodities
speculators keep making money and trading against what you want
the markets to do. So what is to be done there? Hey Jon Corzine,
how about you tank the largest broker for the small commodities
punters in the world, and we let them twist in the wind? That will
serve them right. Teach them to bet against the government approved
Think it did
not happen? Well think again. All of the pieces fit. It sure is
convenient that all those commodities speculators are now out of
the box. Also, who will want to speculate on commodities in the
future given customer funds are no longer protected. Furthermore,
commodities speculators are not a very All American
From the authorities
point of view they can say: screw them, who will feel sympathy?
Hell, James Bullard, Fed Governor, in an interview on CNBC yesterday
said the MF Global collapse proves that the system works. Yes it
does Jim, for you. Personally, I have $90,000 at MF Global and I
would like to have my honestly earned money returned. Unfortunately,
the odds of that happening any time soon seem slim. In part because
when MF Global entered bankruptcy the judge appointed a Trustee
whose law firm has done substantial work for JP Morgan, a deeply
interested party. We will probably never find out what happened
here. But for those of us whose eyes are open the results speak
mess stinks to high heaven. I am with Gerald Celente, if the largest
commodity broker in America can go bankrupt and nothing is done,
then where can you put your money and expect it to be safe? I, for
one, do not accept that Jon Corzine is stupid enough to lever up
MF Global 40:1 and use the proceeds and customer money to bet on
European sovereign debt. This was a hit, pure and simple. That is
why there is no resolution to the problem, and it is just another
example of the deeply corrupt US political/financial axis. It may
take money away from a bunch of commodities speculators, and it
may cool down the perceived inflation, but it is just another hole
in the dike which is The US Financial System. A dike whose life
can probably now be measured in months, not years.
with permission from ZeroHedge.
© 2011 ZeroHedge