bobchapmanradio
Bob’s Interview with Joyce Riley on The Power Hour
In legislation just proposed, and I don’t know by whom, nor do I have a number yet, the Dept of Labor has proposed a re-definition of who is a fiduciary, not under the Securities laws, but under ERISA, the law that governs tax advantaged retirement accounts, such as 401K and IRAs and it probably will include all retirement assets, we don’t have a definite direction yet of what they intend to do but it is my guess they want to limit those investments only to US government debt. They may include some blue chips or funds, I don’t know. They may allow other high-graded fixed income products. These DOL-ERISA rules override all SEC rules. We don’t know the final form of the legislation, nor do we know whether it will be passed, but my guess it will be. The government desperately needs to get those retirement funds invested in government debt. I would seriously think about terminating 401ks and IRAs by transferring the assets – without commission – into a personal account it then becomes a taxable event. I also believe there is a good chance that taxes will be higher next year. There is also an outside chance that retirement assets could be frozen – such events would be negative on the general market because government would be directing brokerage houses to sell retirement assets. This is all in the planning stage, but it is very real.
Your government attacks markets when they are most vulnerable and when it is politically expedient to do so. As we look back over 50 years we never would have believed things that go on today could ever have happened. The blatant presence of crime overwhelms you everywhere you look, particularly in the financial world. We are reminded of these conditions again as we reflect on what has happened in the commodity, gold and silver markets over the past two weeks. We saw an unprecedented five margin increases over nine days in the silver market, which took margin from $4,500 to $21,600. That in and of itself was disturbing, but what we saw from scores of commodity houses was even worse. Simultaneously many of them recommended the sale of commodities and they all raised margin limits to $40,000 to $42,000. The excuse was there was too much volatility. The same volatility had been present in commodities for months yet few increases were implement. Could there have been another reason? Could the naked short position of JPMorgan Chase and HSBC in silver have something to do with the double rise in margins? We also ask how did all the commodity brokerages suddenly decide simultaneously to double CME margin requirements effectively blowing out most commodity positions of small and medium sized investors? Did the Treasury Department or the Fed have anything to do with that? Of course they did. The naked short position of JPM and HSBC had to be protected because their loses were in the billions of dollars.
These past two weeks are a perfect example of market manipulation instituted to protect those too big to fail. These are two of the largest banks in the world and they just happen to be Fed shareholders. Morgan happens to be the Fed’s largest shareholder, so what else could we expect. From our viewpoint there is nothing less than a crime syndicate connecting banking, Wall Street, the Fed and the Treasury Department and Washington. The Fed has a balance sheet of almost $3 trillion, which is used to bail out Wall Street, banking and the government.
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