I have had several inquiries concerning the article about JP Morgan’s transfer of its gold assets.
We do not know the reason why JP Morgan has no gold left but all of the possible reasons are bad.
1. They are moving assets out of the country prior to an economic collapse.
2. They are giving a privileged group of people physical gold before the paper gold ETFs collapse.
3. The Fed has called in markers to repatriate gold stored for other countries like Germany. A tunnel connects the two facilities which are across the street from each other.
4. JP Morgan lied about their true gold assets in the past and are now being monitored.
5. Combination of the above.
There may be other reasons but without facts, we do not know at this point.
Let us frame this story in another way.
You own a car dealership with 2500 cars 18 months ago. This inventory has been fairly constant and your company is well respected. The economy is not doing well and you decide to take action to protect your assets and the assets of your friends. These friends may own part of your company or may just be good friends with whom you have had previous business dealings with in the past. The actions that you take may be legal or semi-legal (or illegal) but when the accounting firm comes in to audit your inventory, you now have 12 cars.
Looking back to December 2012, your stated inventory was 2000 cars. So in a six month period, you liquidated 99% of your inventory.
As for other JP Morgan Chase assets, consider this from September, 2011:
- U.S. commercial banks currently hold a notional value of $244 trillion in derivatives.
- Five banks dominate the U.S. derivatives market, J.P. Morgan Chase (JPM), Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), and HSBC (HBC), accounting for 96% of the derivatives activity. However, a total of 1,047 U.S. banks participated in the derivatives market in the first quarter.
If only 5% of the derivatives go bad, which is incredibly optimistic, the world’s economy collapses.
The bottom line is this is the kind of story we expect to see in the end game.