Some fake tungsten gold bars controversy links.


Here is a quick collection of information items on the growing fake tungsten gold bars controversy:

1)

http://www.nytimes.com/1983/12/22/world/austrians-seize-false-gold-tied-to-london-bullion-theft.html

Austrians Seize False Gold Tied to London Bullion Theft

REUTERS
Published: December 22, 1983

VIENNA, Dec. 21

The Austrian police announced the arrest today of 5 men and the discovery of 10 counterfeit gold bars stamped with numbers and refiner’s name to match 6,000 real bars stolen in Britain last month.

The police said the five arrested in Vienna on Tuesday night apparently planned to sell the counterfeit gold, passing it off as part of the haul of three tons of bullion stolen by masked gunmen from a warehouse near London’s Heathrow Airport on Nov. 26.

A police spokesman said the police did not know how the men had discovered the numbers stamped on the stolen bars.

The police at first suspected the counterfeit bars were part of the Heathrow booty, but the spokesman said tests showed the bars were made of tungsten and only coated with gold.

The fake bars were seized in a police raid on a hotel where the five men – four Italians and an Austrian – were meeting.

2)

“LONDON, April 14, 2004 (Reuters) – NM Rothschild & Sons Ltd., the London-based unit of investment bank Rothschild [ROT.UL], will withdraw from trading commodities, including gold, in London as it reviews its operations, it said on Wednesday.”

3)

http://www.marketoracle.co.uk/Article14996.html

Gld ETF Warning, Tungsten Filled Fake Gold Bars.

Nov 12, 2009. The Market Oracle.

Coincidentally [or perhaps, not?], GLD Began Trading 11/12/2004

In light of what has occurred – regarding the Gold ETF, GLD – after reviewing their prospectus yet again, it becomes pretty clear that GLD was established to purposefully deflect investment dollars away from legitimate gold pursuits and to create a stealth, cesspool / catch-all, slush-fund and a likely destination for many of these “salted tungsten bars” where they would never see the light of day – hidden behind the following legalese “shield” from the law:

Excerpt from the GLD prospectus on page 11:

http://www.spdrgoldshares.com/media/GLD/file/SPDRGoldTrustProspectus.pdf

Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss. Neither the Trustee nor the Custodian independently confirms the fineness of the gold bars allocated to the Trust in connection with the creation of a Basket. The gold bars allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for gold bars delivered in settlement of a gold trade, or the London Good Delivery Standards, the standards required by the Trust. If the Trustee nevertheless issues a Basket against such gold, and if the Custodian fails to satisfy its obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss.

4)

German ProSieben TV Channel Finds 500 Gram Tungsten Bar At W.C.Heraeus Gold Foundry With Bank Origin.

March 1, 2010. Zerohedge.com.

German TV station ProSieben finds what appears to be some evocative proof of gold counterfeiting, in the form of tungsten gold substitutes coming to the W.C.Heraeus foundry, which is the world’s largest privately-owned precious metals refiner and fabricator, located in Hanau, Germany. The foundry has isolated at least one 500-gram tungsten bar due for melting, originating from a (so far) unnamed bank, which as the head of the foundry stated made the unpleasant discovery that “not all the glitters is gold.”

[Click on image to go to Youtube]

German ProSieben TV Channel Finds 500 Gram Tungsten Bar At W.C.Heraeus Gold Foundry With Bank Origin

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Japan’s consumer prices fall again in January. Deflation now -1.3% compared to January 2009.


Japan, after two decades of fighting against deflation and racking up a 240% of GDP public debt has literally nothing to show for. The deflation is firmly entrenched in the Japanese economy, which is a very good thing for consumers, not speculators.

Marketwatch.com. February 25, 2010.

Japan’s consumer prices fall again in January.

LOS ANGELES (MarketWatch) — Japan’s core consumer price index for January fell 1.3% from the same month a year earlier, the Statistics Bureau said Friday. The result matched economists’ average forecasts as reported separately by Dow Jones Newswires and Japan’s Kyodo News. Compared to December, core CPI — which excludes volatile fresh food prices — was down 0.6%. The “headline” CPI, which includes all prices, was down 1.3% from a year earlier and down 0.2% from the previous month. The drop in core CPI marked Japan’s 11th consecutive month of deflation.

One hell of a deflationary bust: JP Morgan loses 93% of value of Lehman collateral that it holds.


This is an excellent real life example of how deflation works. As reported by Reuters JP Morgan was holding Lehman Brothers’ collateral back in 2008 as a way to protect itself against possible investment losses. Well, deflationary bust that was caused by rampant FED sponsored inflation prior to the Fall of 2008 crisis, has hit not only the investments but the collaterals as well.

When you have a 93% evaporation on the collateral which is supposedly only a fraction of the actual assets that it guarantees, you can safely say we are in the thick of it – the deflation.

Of course, the controlled press article says that JP Morgan “will reduce a $7.68 billion claim”. JP Morgan has no choice. The claim has already been reduced for it – by deflation.

Reuters. February 25, 2009.

Lehman settles collateral claims with JPMorgan.

NEW YORK/BANGALORE (Reuters) – Lehman Brothers Holdings Inc (LEHMQ.PK) agreed with JPMorgan Chase & Co (JPM.N) to settle a $7.68 billion claim stemming from collateral obligations after Lehman’s bankruptcy filing in 2008, court documents show.

Crisis in Credit

JPMorgan had provided various financial services to Lehman’s primary broker-dealer unit prior to Lehman’s bankruptcy filing in September 2008.

In the normal course of trading, banks collect collateral from counterparties as a way to hedge risks.

But as worries about Lehman’s financial condition deepened, some banks held on to collateral, leaving large blocks of the bankrupt investment bank’s assets in the control of other banks including JPMorgan.

As part of the proposed settlement, Lehman will make a one-time cash payment of $557 million to JPMorgan, and JPMorgan will reduce a $7.68 billion claim it had against Lehman to $557 million.

“The settlement allows Lehman to more efficiently manage those illiquid assets and thereby maximize returns for the benefit of creditors,” Lehman said in a statement.

Both JPMorgan and Lehman have reserved all rights to the claims they have against each other, and there could still be future litigation between the two.

As per the deal, JPMorgan will transfer the remaining illiquid collateral back to Lehman, according to the filing.

The collateral at issue relates to dealings in the summer of 2008, when JPMorgan asked Lehman Brothers to execute a guaranty dated August 26, 2008, and post collateral to cover that guaranty, according to court papers.

Although the collateral posted by Lehman had a face value in the billions of dollars, it consisted of illiquid securities whose actual value was difficult to ascertain, the court papers show.

Between September 9, and September 12, 2008, Lehman posted an estimated $8.57 billion in cash and money market funds as additional collateral security, the papers show.

Lehman said in court papers that recovering control of the assets would be more “conducive to enhancing their value.”

A court hearing on the proposed settlement is set for March 17.

The case is In re: Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555.

Empty nonsense talk from European policy makers.


It does not cease to amaze me how much meaningless nonsense can so called leaders of the European union spew all day long. Apparently this is the speak to which the residents of the continent are used to and pay no attention.

Consider this interview excerpts with Eurogroup Chairman Jean-Claude Juncker:

Reuters. February 13, 2010.

EU’s Juncker warns against eurozone drift apart: report

The Greek government had to understand it was its job to bring its budget into order but if Athens did everything it could, Europeans would stand by in an act of solidarity.

He declined to say, however, exactly how the EU could help Greece.

“I cannot today name an exact instrument… We have many instruments ready and will use them if necessary,”

So all week of February 8th, 2010 these European leaders kept telling us that they came to an agreement and have worked out a deal for Greece bailout, and now that the markets are closed these asses can’t even tell how they are going to bail Greece out.

Next:

“The basis of the Maastricht Treaty is that a state bankruptcy does not come into question. If we had thought a euro zone member could go bankrupt, we would have devised instruments to deal with that. This is not envisaged,”

Is there any provision in the Treaty that the Sun does not set? What are they going to do when the night comes?

“An exit would be the end for Greece. And it would be absolutely negative for the image of the euro zone.”

Ahh more nonsens. Greece existed for thousands of years before there was an EU and it was fine. What will end Greece is membership in this globalist union. The sooner it all falls apart and all the countries around the world regain their sovereignty from these supranational bodies controlled by the banking mafia, the better it will be for their peoples.

Then this nonsense:

“EU states must start cutting their debt in 2011. If they refuse, the Stability Pact must be changed so EU authorities can better crack down,”

Why not start cutting now, why even get into debt in the first place, why in 2011 and not in 2021? Is he pulling this numbers out of his own ass? And who gave these EU authorities the right to crack down on free people living in their ancestral lands since time immemorial. Who are these EU authorities? I want names.

Some more nonsense:

“The stability of the euro must be guaranteed,”

Must be guaranteed? By who and for what reason? The Euro is what it is based on the underlying economics and investor sentiment that determines free market FX rate. Who will guarantee those guarantors?

It is time to end globalism, time to end European Union, time to abandon Euro currency and shut down the Brussels parasitic state once and for all. European people don’t need their stinking opinions on how to run their lives. The sooner this modern economic and political systems comes apart and down, the sooner we’ll all breathe easily. It applies to all countries around the world.

G7’s Sheeple Distraction in IQALUIT, Canada, while Central Bankers Meet Secretly in Australia.


We don’t know what the Central Bankers will be discussing during their secret two day meeting in Australia, but what we know is that you don’t hold a well publicized G7 economic ministers meeting at the same time for no reason. If the CBs need a distraction that means that something is very grave and serious is going on. Whether we are on the verge of a new panic and financial crisis or something else, but it cant be good. Perhaps the sovereign debt issues in Europe are on the verge of causing a big monetary implosion and stock markets collapse.
When one reads the reports of G7 meeting in Canada, it is clear the meeting is a charade as nothing has been decided or agreed upon and all we are reading in the press is some general statements about “working together” and

“We expect and we are confident that the Greek government will take all the decisions that will permit it to reach that goal”.

This is total BS.

It is much more interesting to read in one of the very few articles about the secret meeting in Australia that

“This does feel like ’08 and ’07 all over again whereby we had these sorts of little fires pop up and they are supposedly contained but in reality they are not quite contained,” said H3 Global Advisers chief executive Andrew Kaleel.

“Dubai should have been an isolated incident and now we are seeing issues with Greece, Portugal and Spain.”

We shall find out in the week of February 8th, 2010 how low will the market’s leg down go.

Just remember history:

  • 05/1866 (April 1866) Market Crash (England, Italy) Suspension of Bank, Italy abandoned fixed parity.
  • 10/03/1937 (March 10 1937) Start of 2nd worst market crash of 20th century; Starting DJIA: 194.40; Ending DJIA: 98.95; Total loss: 49.1%; Total days: 386

The stock market will start a new leg down the week of February 8 2010.


The money has been laundered. The stock market will start a new broad based decline the week of February 8th, 2010. This is round 2.

Porn deflation.


In a punny way of things the porn industry is deflating in unison with the rest of the US economy.

CNBC. January 22, 2010.

Porn Industry Is No Longer Recession-Proof.

While several industries have been labeled “recession-proof,” porn has historically best lived up to that title. No matter how bad the economy, adult entertainment companies have managed to survive—if not thrive.

Until now.

The latest financial crisis, mixed with rampant piracy problems, has taken its toll. Profits are down and porn production studios are folding at a pace faster than anyone would have imagined two years ago.

Exactly how hard the industry is being hit is hard to gauge. While porn is regularly described as a $13 billion industry, some insiders question the accuracy of that number—saying the true figure is impossible to determine, given how many companies hide their true nature in tax filings.

“I’ve never bought off on the amount of money that news articles suggest we are making,” says Dan O’Connell, president of Girlfriends Films. “We are one of the top companies—certainly in the top 10—when it comes to numbers of DVD’s sold for a new release and I don’t see how the industry can be making that sort of money. Girlfriends Films is a privately-held company and our tax returns show us as being an ‘amusement’ company. As such, accurate revenue figures just aren’t available.”

For the first time, porn is showing signs of vulnerability. This was evident at January’s Adult Entertainment Expo in Las Vegas, which took up just one floor of the Sands Convention Center—and had lots of room to spare, compared to the two floors that were filled last year. And while the industry is trying to find a way back to its glory days, no one seems certain about the best formula to get there.

Consumer interest certainly hasn’t diminished. Despite the smaller number of vendors, the same Expo in Las Vegas saw a 14 percent jump in fan attendance, topping 22,000. The trick for companies is figuring out how to capitalize on that interest.

Parody films, such as Hustler’s “This Ain’t Star Trek XXX” and “Not Three’s Company XXX,” are a growing trend for some studios. Others, like Digital Playground, are betting on high production values to attract customers away from free online offerings.

“My philosophy is: Water is free (too), but people still pay for it in a bottle,” says Digital Playground founder Ali Joone.

Digital Playground says it spent up to $10 million to create its biggest film—“Pirates”. It was a significant gamble, but one that paid off. Joone says he was hoping to make the money back within two years, but when the film’s trailer went viral , he recouped those expenses in pre-orders alone.

That success isn’t preventing the company from diversifying, though. Digital Playground recently launched a line of sex toys that were created in-house. (The company had previously worked with a third party, but wasn’t happy with either the revenue split or the quality of the products.) It also launched a video on demand channel with Avail-TVN, the country’s largest VOD distribution service, at the start of 2010.

With hotel room pay-per-view a big growth area for the industry in recent years, many adult companies are looking to expand into the living room—though a bit less aggressively than Digital Playground. Vudu, which streams films via an Internet connection (and is a competitor to Netflix [NFLX Loading… () ], focuses primarily on major cinematic releases, but also has an optional porn channel, with content from several adult studios, including Vivid, Hustler and Wicked. Rentals cost between $7-$9. Purchasing a film runs from $20-$30.

It’s a notable partnership, since Vudu will ship on millions of HDTVs and Blu-ray players this year from companies including Mitsubishi [MIELY Loading… () ], Samsung [SSNNF Loading… () ], Toshiba [TOSBF Loading… () ], Sanyo and Vizio. (The company, it should be noted, has strict parental controls.)

Online streaming is another growing field for porn—but one with limitations. While it helps reduce piracy, since all of the material rests on hosted servers, users only pay by the minute. With the average viewer only watching porn for 8 minutes, that’s not exactly a formula for substantial revenues.

Sites like Clips4Sale are trying to work around this by selling short clips for up to $1.25 per minute. To attract the largest possible audience, the company offers film segments from virtually every imaginable sexual activity or category (and a few—such as “bubble gum” and “burping”—that might leave you scratching your head).

Not surprisingly, the iPhone is seen as a growth area as well. And while Apple [AAPL Loading… () ] won’t sell any app with adult content through its app store, companies are finding away around that hurdle.

Sex App Shop, for example, uses a mobile Safari feature to sell XXX slideshows and video that can be accessed both online and offline. The company claims its product has been downloaded over 2.8 million times since its Dec. 1 opening.

It’s another example of the creative thinking of porn companies. But viewers may find the best part of the service isn’t the content: It’s the fact that when you turn your iPhone horizontally, a faux newspaper that looks an awful lot like the New York Times front page pops onto the screen, hiding the more prurient content.

Will any of these initiatives convince customers to start paying for porn again?

“I think the real threat faced by the industry … is going to be market driven,” Christian Mann of Evil Angel Productions. “To paraphrase Pogo: We have met the enemy and he is us.”

Google wants to get into energy trading business. Is this a sign of coming deflation in that sector?


When you see automotive companies and consumer electronics companies getting into the business of Finance, you know that the boat is lurching to far to one side in will most surely topple over. So it happened in the US Financial Services industry that has expanded far beyond the original investment banks and brokerage houses.

Now we are witnessing a rush to go into energy trading in light of booming commodity prices. Google of all companies is now seeking to start trading energy. Yahoo has been thinking of that too. Of course, in addition, Google may be interested not so much in energy trading itself, as in the cap and trade scam that offers huge benefits to those who know how to game the system. But make no mistake, when dilettantes begin to break into a particular trade the trade is about to become too crowded and inevitably will lead to major distortions.

Of course, behind their “green” initiatives and concern for the environment hide true motives – if banks can do it, why can’t we. After all it does not matter how the owners of the internet giant make money. They are seeking to put their extra cash to work any way they can, sort of like ordinary Americans all got into real estate speculation and thought of themselves as “experts” and “successful” people. We all know how that turned out. If Google’s energy yearnings are a harbinger of energy price collapse so be it. The consumers will only benefit and the evil ones will lose money.

Reuters. January 09, 2010. Google applies to FERC for trading permit late December. * Aims to buy more renewable energy, become carbon neutral * Does not plan energy trading as a new line of business (Recasts with Google comment, background) By Tom Doggett WASHINGTON, Jan 8 (Reuters) – Google Inc (GOOG.O) has asked the main U.S. energy regulator for authority to trade electricity in the wholesale market, which will make it easier for the Internet search giant to obtain renewable energy to power its huge data centers as part of its green initiative. In its filing to the Federal Energy Regulatory Commission in late December, the company said its Google Energy LLC subsidiary wants the authority “to contain and manage the cost of energy for Google.” “We’re interested in procuring more renewable energy as part of our carbon neutrality commitment, so we applied for the ability to buy and sell energy on the wholesale market to give us more flexibility,” Google spokeswoman Niki Fenwick said on Friday. The company in December pledged on its blog “Going green at Google” to make its operations carbon neutral and reduce greenhouse gases blamed for global warming. Fenwick said Google does not have any plans to make the energy markets a new line of business, except that the company may sell any surplus renewable energy it does not use. Other companies that consume a lot of electricity have been given similar authority by FERC to help control their energy costs. “It’s routine,” an agency spokeswoman said of Google’s application. FERC lists on its website about 1,500 companies that have subsidiaries with the same market-based rate authority, including Alcoa (AA.N), the Safeway (SWY.N) grocery store chain and Walmart (WMT.N). Information technology and telecommunications facilities account for approximately 120 billion kilowatt hours of electricity annually — or 3 percent of all U.S. electricity use, according to the Energy Department. Rapid growth in the U.S. data center industry is projected to require two new large power plants per year just to keep pace with the expected demand growth, the department says. Google told FERC it does not own or control any facilities that generate electricity to sell in the wholesale markets and the extent of its electric generation ownership is to provide power solely to the company’s facilities and for emergency backup power. The company asked FERC to approve its request by Feb. 23. Google officials could not immediately be reached for comment. 

“US Government” fearing Treasury bond collapse, wants 401(k) funds to prop up their prices.


In yet another clear set up by the so called “US Government”, the US Treasury and Labor departments, as if it is their own idea, are looking to give Americans more “options” of how to invest their pension money. These “options” have a funny way of becoming the only choices when it comes to government policy. While it may not get to the point of mandating that everyone buy Treasuries, it is quite plausible that a market crash could be orchestrated that would force many pension plan investors to “flee to safety” of “US government” bonds and use their 401(k) fund to do that. The “US government” is clearly fearing an impending bonds crash and thus is exhibiting this extraordinary concernt for the citizens’ well being. One might wonder where was their concern when they have been inflating bubble after bubble for decades and eroding the value of those very savings that they are now telling us they want to protect. The main role of any government, especially “US Government”, is to pretend to fail in their duties. And when they “fail” the big money behind the poiticians, pocket hundreds of billions, if not trillions, of $$.

Consider this situation:

A man goes on a shooting spree on January 7th, 2010 in Missouri over a 401(k) dispute with his company (ABB electrical equipment plant), as has been widely reported in the first week of January, 2010.

Then on January 8th, 2010 it is reported by Businessweek magazine that:

The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.

Is it another coincidence? – after American public’s attention is being diverted from an unpopular Obama’s Health Reform Bill debate to “terror incident on Detroit-bound airliner from Amsterdam” discussions starting last week of December of 2009.

Conquer the crash: Bernanke defeats deflation.


At last, the news reports are now fully brimming with optimism and proclaiming victory after victory on the economic front. Despite the fact that the private (and total) credit in the US economy has been and is still contracting at unprecedented multitrillion dollar annual rate, which is deflation by definition in credit based monetary system, the Bloomberg news declares nevertheless that the honorable manager of the privately owned Federal Reserve, Ben Bernanke, has already defeated deflation. Oh say, can you see …

Bloomberg. December 21, 2009.

TIPS Give Way to Inflation as Deflation Yields Drop.

Dec. 21 (Bloomberg) — The market for Treasury inflation protected securities is showing Federal Reserve Chairman Ben S. Bernanke won the battle with deflation, paving the way for him to start withdrawing cash pumped into the economy since 2007.

The gap between yields on Treasuries and so-called TIPS due in 10 years, a measure of the outlook for consumer prices, closed above 2.25 percentage points four days last week, the longest stretch since August 2008. That’s the low end of the range in the five years before Lehman Brothers Holdings Inc. collapsed, and shows traders expect inflation, not deflation in coming months, said Jay Moskowitz, head of TIPS trading at CRT Capital Group LLC in Stamford, Connecticut.

Bernanke has cited tame inflation expectations for keeping the target interest rate for overnight loans between banks at a record low range of zero to 0.25 percent and the unprecedented stimulus that prevented more bank failures during the worst financial crisis since the Great Depression. Now, TIPS show the improving economy may change sentiment and spark further losses in bonds. Yields on the benchmark 10-year Treasury note hit a four-month high of 3.62 percent last week.

“It could be an environment where we see 4 percent on 10- year yields, which we think is probably likely in the near term,” said Carl Lantz, an interest-rate strategist in New York at Credit Suisse Securities Group AG, one of the 18 primary dealers of U.S. government securities that trade with the Fed.

Rising Yields

The yield on the benchmark 3.375 percent note due November 2019 rose 14 basis points to 3.67 percent at 2:50 p.m. in New York, according to BGCantor Market Data.

Treasuries are poised for their first down year in a decade, losing 2.43 percent after reinvested interest, according to Merrill Lynch & Co.’s U.S. Treasury Master index. They gained 14 percent on average in 2008 as the global recession deepened and investors bet on deflation, or a general decline in prices.

While prices fell, real yields, which takes into account inflation or deflation, widened to an average of 3.64 percent this year, the most since 1998, helping attract investors to the record $1.48 trillion in new cash raised by the government in the bond market in 2009.

TIPS returned 11.1 percent this year as measured by Merrill Lynch indexes, on speculation that the almost $12 trillion lent, spent or committed by the government and Fed to keep financial markets from collapsing would spark inflation.

‘Deflation Fighter’

“The TIPS breakevens moving higher is a sign Bernanke is gaining credibility as a deflation fighter,” said Robert Tipp, chief investment strategist for fixed income at Prudential Investment Management. The Newark, New Jersey-based firm oversees more than $200 billion in bonds.

The securities pay interest on a principal amount that rises or falls based on the consumer price index. Inflation- protected bonds due in 10 years yield 2.34 percentage points less than Treasuries. That gap, known as the break-even rate, has risen from 0.04 percent in November 2008. It averaged about 2.42 percentage points in the five year’s before Lehman went bankrupt.

“A lot of people are investing in the asset class viewing that with the amount of liquidity that the Fed has provided the market and the devaluation of the dollar that inflation’s inevitable somewhere down the road,” said Todd White, who oversees government debt trading at Minneapolis-based RiverSource Investments, which manages $93 billion of bonds. The breakeven rate could widen to 2.75 percentage points, he said. Continue reading