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OCC derivatives report suggests U.S. govt. has seized all commodity markets
10:56p ET Monday, June 25, 2015
Dear Friend of GATA and Gold:
Citing the latest quarterly report of the U.S. Office of the Comptroller of the Currency, Zero Hedge concludes tonight that JPMorganChase has "cornered the commodity derivative market," the notional value of the investment bank's commodity derivative position having just exploded from around $200 billion to nearly $4 trillion.
The OCC report, Zero Hedge adds, has ceased distinguishing gold derivatives from foreign exchange derivatives, but the combined total of gold and FX derivatives held by investment banks is shown to have exploded as well.
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Zero Hedge's analysis is headlined "JPMorgan Just Cornered the Commodity Derivative Market, and This Time There Is Proof" and it's posted here:
http://www.zerohedge.com/news/2015-06-29/jpm-just-cornered-commodity-der...
Your secretary/treasurer is, of course, inclined to construe this astounding anomaly as comprehensive intervention in the markets by the U.S. government using Morgan as its broker, since it's unlikely that a single investment bank would have the wherewithal to establish such fantastic positions on its own. The OCC report may mean that, with the fiat currency system cracking under the weight of years of abuse, the U.S. government has felt compelled to seize emergency control of all markets to bolt the exits from the system, gold being the primary exit, and to forestall hyperinflation.
This would signify the government's belief that only totalitarian means -- "financial repression" squared -- can sustain the system now.
Venezuela already has shortages and rationing. Today Greece got capital controls, if indeed there is any capital left there. But before Americans snicker too much at those troubled countries, they should ponder the meaning of their country's huge trade deficit, a privilege of issuance of the world reserve currency, a currency that is in effect a great tax on the world, a tax that, if Zero Hedge gets the OCC report right, now encompasses the destruction of all markets worldwide.
Immoral as it would be, it's almost certainly all legal under the Gold Reserve Act of 1934 as amended in the 1970s --
http://www.treasury.gov/resource-center/international/ESF/Pages/esf-inde...
-- the Trading with the Enemy Act of 1917, and the International Emergency Economic Powers Act of 1977:
It just hasn't been conducted in the open yet. But maybe with the OCC report we're almost there, and pushing this totalitarianism into the open is probably the best we can hope for.
Of course the Financial Times, Wall Street Journal, and the other mainstream financial news organizations will report it only to rationalize it and make excuses for it, whereupon they will sound a bit like the old Daily Worker. Barron's may have a little more trouble with it. But they're all going to look pretty silly -- not that they care.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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