The Philosophy of Max Keiser, pt. 2: Crash JP Morgan – Buy Silver!
The famed Max Keiser, spawn of Karmabanque, Hollywood Stock Exchange, The Silver Liberation Army, Crash JP Morgan Buy Silver, and more has demonstrated a clear development in his thinking over the nearly 10 years of his journalism. Silver Vigilante presents a series called “The Philosophy of Max Keiser,” which begins to summarize the episteme of Max Keiser, and how he believes change can be elicited in the casino gulag. This is part 2.
Max Keiser should win the nobel prize for journalism. So should many others who never will because award of the prize is in the hands of elitists. What Keiser does best, besides piercing financial and copyright law analysis, is create memes that stick. One such meme is “Crash JP Morgan – Buy Silver.”
Even if you do not buy the numbers cited by alternative news outlets and Commitment of Traders data, and believe there is no reason to believe that JP Morgan is short and unhedged in the silver market, wait before you count the scheme a scam. For, considering the metal’s history, as well as its apparent price discovery and price action in the near-and-long terms, it seems reasonable to suspect that the powers-that-be consider the commodity a dangerous asset when in the wrong hands, the hands of the people.
This can be seen most clearly in Commitment of Traders data, which demonstrates the open interest of small traders, large traders and commercial hedgers. The commercial hedgers, in the silver market, generally can be considered transnational corporations with transnational banks trading the largest volume. Such institutions, more times than not, adhere to elitist philosophies in the running of their businesses and beyond.
In the silver market, these commercial hedgers are often short in the neighborhood of 20k-50k contracts of troy ounces short. At 50k contracts short, the market risk equals about 250,000,000 ounces of silver. That’s about one-third the year production supply of silver, which is around 600,000,000 ounces +. So, the largest derivatives holder in JP Morgan are, along with their partners-in-crime, short the metal nearly one-third of its annual supply.
Those who watch silver see how its pricing functions as if by schedule and not natural market processes. As Keiser has said, which might not be fact but does describe how silver seems to move in price, it’s as if as soon as New York monkey-traders have awoken and finished their first cup of coffee, silver takes its morning dip in the waters of lower prices.
On December 2, 2010, Max Keiser penned a piece for the Guardian UK entitled “Want JP Morgan to crash? Buy silver!” This is among the most successful memes presented by the journalist and fits under his Global Insurrection Against Banker Occupation movement.
In that piece, Keiser cites the efforts of the GATA (Gold Anti-Trust Action) committee to reveal the silver and gold price suppression. Through the efforts of GATA and others, it has surfaced that JP Morgan owns an estimated 3.3 billion ounces shorts on silver, according to Keiser’s December 2010 article.
Keiser posits in the article that if just 5% of the world’s population each bought a one-ounce coin of silver, JP Morgan would have to cover their short position – an approximately $1.5 trillion liability – against their market capital of $150 billion “and the company would go bankrupt.”
Keiser premises his campaign upon the following:
Here’s how the campaign works: wealth tied to a fiat currency is easily overwhelmed by wealth tied to silver and gold. And the world is waking up to the fact that they have the ability, without government assistance or other interference, to create a new precious metals-based backed currency system by simply converting their fiat paper into real money.
An enthusiastic Keiser guarantees that “the campaign has 100% chance of working; it falls into the category of self-fulfilling prophecy.” He continues:
As more individuals buy silver and gold, all attempts to replenish the system with more paper money will only cause the purchasing power of the silver and gold to increase – thus prompting more people to buy more. Any attempts to bail out JP Morgan would have the same effect. If the US Fed was to flood the system with bailout money for JP Morgan to cover their silver short position (as they did after the collapse of Long-Term Capital Management), more inflation will ensue and the price of silver and gold will rise more, triggering more purchases. A virtuous circle is born.
Keiser enlisted the mighty Alex Jones for the efforts to bust the bank. Keiser said, also, on the Alex Jones Show that if each individual in the United States bought 1 oz. of silver, the bankruptcy of JP Morgan would be brought about.
Jones had recently been pushing his meme of a “Google Bomb” in which his listeners search a certain term so as to propel it in the Google Trends rankings. Keiser suggested the meme “Crash JP Morgan, Buy Silver” for the efforts.
JP Morgan is known for the largest derivatives position of any bank, at $69 trillion, according to US OCC and much evidence attests that the bank also holds the largest short position in silver derivatives. Compared to the rest of their balance sheet, the $100 billion short position, as of 2010 based on a price of approximately $30 an ounce, would be relatively small in the context of the holographic steroid-economy, and so it does not need to be so shocking that the bank would own such a position in the silver market. In April 2011, when silver tested its old record of $50 an ounce (when adjusted for inflation, the metal would have to reach over $100 to test the record adjusted for inflation), the unhedged short position price risk would have increased by more than $60 billion.
Alongside the “Crash JP Morgan – Buy Silver!” campaigning, another meme was born: $500 silver. Keiser oft refrains that the silver buyer can have $500 silver if they want it via metal purchases. As reported by Jason Hommel, the search term “500 dollar silver” hit number 4 on Google’s “hot searches” on November 18 2010.
Quickly on the heels of what essentially is Keiser’s boycott of the Federal Reserve Note for silver, Zero Hedge reported on a Financial Times article in which it was confirmed that “JP Morgan has quietly reduced a large position in the US silver futures market which had been at the center of a controversy about its impact on global prices for the precious metal.”
Zero Hedge suggested that the development marks “an unprecedented victory” for all those who have over the past year themselves conspired to compromise JP Morgan. Reads The Times,
“the decision by JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said. The person added that the bank’s position in silver would from now on be “materially smaller” than in the past.”
Zero Hedge calls the banks’ bluff in regards to the last sentence:
Of course, the latter is pure and total bullshit: as Bart Chilton indicated over the weekend, it is JP Morgan who at one point or another (and possibly very recently) controlled as much as 40% of the silver market, via a massive short. Attempting to make others believe that this short could be covered without pushing the price of the silver metal to over $100/ounce is an indication of either how stupid JPM believes the general population to be, or just how desperate the firm is to end the ongoing short squeeze onslaught. Either way, we are confident that this first unprecedented confirmation that a) JPM is indeed massively short silver and b) that it is hurting bad, will merely redouble efforts to put the world’s biggest financial company out of business. Lastly, this means that silver is about to really blast off as the push to really hurt JPM takes off in earnest.
The Crash JP Morgan – Buy Silver! Campaign is based on a couple key axioms. 1) that the amount of silver above ground available for purchase could be as little as 300 million ounces, and so therefore the metal is extremely rare. 2) the derivatives market has been blown up to beyond the capacity of the economy and nature to support such a reality, and that this artificial market space is compromised and will eventually collapse via real world societal development and evolution, so the anti-establishment might as well bring it about on their terms. These are axioms that SV can certainly live with, especially when the work of Bix Weir and SGT Report suggesting the rareness of silver compared to gold, are considered.
The Crash JP Morgan – Buy Silver campaign is a scientific boycott aimed at the fulcrum of civilization, the transnational-corporate banking system. Reporter Jason Hommel spoke highly of the effort:
This plan is effective. In fact, I sincerely believe this is the most effective plan for positive societal and world change of all kinds. And this is partly why I’ve been advocating investing in silver for 8 years.
Since the onset of the campaign, an increasingly organized movement whose focal point is silver as a means of boycotting the Federal Reserve Note and undermining transnational banks such as JP Morgan and HSBC has formed. This broader movement seems to be unifying under the moniker the “Silver Liberation Army,” another Keiser meme, who buy silver as a means of savings and an alternative to paper. Perhaps part of the reason the movement has caught on so swiftly, especially in the United States, is the nation’s history with silver as acceptable in the payment of debts until 1873 and as the material of circulated coinage until 1964, as well as the affordability of silver, which on 4/20/2012 closed around $31.66 per oz.
If you would like to join the campaign, be sure to visit Compare Silver Prices, where you can compare North American silver bullion online prices.