The following is excerpted from a special Sunday (8-12) edition of the James Joyce Table, one of the sections from GATA Bill Murphy's LeMetropole Cafe, a precious metals newsletter that normally appears Monday through Friday....

                         THE JAMES JOYCE TABLE

                           MIDAS du METROPOLE

                              TOPIC du JOUR

August 12 - Gold $1619.70 – Silver $28.06

More "Source" Input On Coming Precious Metals Price Explosions

Over the past month+ I have been pounding the table that based on information from three extremely informed sources the prices of gold and silver would begin their launches to much higher prices in August … a launch that would lead to all-time highs in both precious metals and well beyond.

The reason for this Mini-Midas is that I just received some new input, which supports what my original sources have been telling us for some time. It is from someone I have known for a long while and is of the same caliber as my other sources in terms of reliability. When you have traded commodities and stocks as long as I have, and get to be my age, it is fairly easy to sort that all out … and what to run with.

Here it is … short, sweet, and maybe VERY important:

August 10, 2012

The METALS

I have spoken before about my contact on the Board of Trade who trades mainly the metals and is in touch with New York minute by minute. He has been saying for several weeks that the metals would have one more big drop (1525-1550) before they really took off. Today he changed his mind. They saw heavy covering of shorts in Chicago and New York. This should show in next week’s COT. They see an explosion of huge proportions and are adding four more floor traders as they see August as a record month for them. He closed by saying "We could see a 100% increase in 90 days." Tie this in with other things that we have read and heard.
Golden regards
Peter

If what Peter sends us pans out anywhere close to what he has been told, this Mini-Midas is more than well worth the read. What fascinates me is that this new input confirms what my other three sources have been saying. Now we wait to see how this plays out in the three weeks of trading left ahead in August.

In addition, as you well know by now, it has come to my attention from all of my original contacts that JP Morgan has a big problem with their silver short position and that this problem will reveal itself in a public way in the near future. Thus, it was of great interest to receive this email yesterday afternoon from a GATA supporter. While it is not directly related to silver, or the precious metals, the comments about the financial system being overhauled are intriguing…

CARTEL CAPITULATION WATCH

CNBC Stand-In Reporter Admits Financial System Changeover: "They're Going to Put the Old System In a Coma"!

Also, lots of talk about 'Cartels" in first video…

2012 August 10
Posted by Stephen Cook

From the CNBC show Squawk Box – August 10, 2012

http://video.cnbc.com/gallery/?video=3000108212

Stephen: This IS amazing! A stand-in finance reporter for CNBC, Kevin Ferry from Kronus Futures Management – after being told, bizarrely, by Squawk Box host Joe Kernen, twice, "whatever you do don’t screw this up" – has just disclosed that the current financial system and, importantly, the Libor, is about to be overhauled.

After saying that a Pandora’s Box is going to be opened up in the Libor area (in reference to the separate story posted below on the subpoenas now heading JP Morgan Chase’s way) Kevin Ferry told Joe Kernen – and the rest of us: "I think what they’re going to do, Joe, is basically put the old system in a coma, and work to devise something that’s a little bit better, and it’s going to be tricky."

Separately, I have personally heard from several different sources in the past two days, that big things are about to happen this coming week with regards the world’s financial system. A good weekend indeed!

Read the full transcript below:

"We’re just seconds away from import price data for July, and Kevin Ferry is standing by at the CME in Chicago.

Don’t screw this up because you don’t normally do it. Usually it’s Santelli so whatever you do, don’t screw this up, Kevin. No pressure.

Import prices down 0.6. that’s actually weak. We were looking for it to come back on to the high side after a big oil moved down last time. small revision the Dow 2.4 from 2.7. year over year, you’re still looking at prices falling out of bed, Joe, down 3.2% year over year. wow.

Also, when we were corresponding earlier, Kevin, you wanted me to ask you something that I didn’t really understand that was compelling. what was that?

Oh, well I was just noticing that there are Libor subpoenas raining down on the New York branches of these foreign banks today, so i think you really have to watch the BBA is now saying they are going to go into overhaul mode, so as if we don’t have enough things going on, you’re going to start opening up a Pandora’s box here in the Libor sector of the market.

I see. What would the implications be for Libor, do you think?

Well, I think what they’re going to do, Joe, is basically put the old system in a coma, and work to device something that’s a little bit better and it’s going to be tricky. I’m a Merck guy. I cut my teeth in the euro/dollar pit but watch the new general collateral futures at the new york stock exchange, I think that’s where the interest is going to go.

Doug Dachille joins in:

So what are they going to do with the euro/dollar futures and all the outstanding notion of principal of contracts linked to Libor? Is everybody going to convert their Libor interest rate swaps to cost of fund funds or Fed fund basis swaps or some other index?

Are you asking me? I’ve asked that question as high as I could ask it and I get blank stares, so I don’t think you can violate the open interest in the contracts of over two decades.

What I find fascinating, we had somebody talking about oil earlier today and everybody uniformly agrees that there’s market manipulation by a fairly strong cartel of people that have, in that case, that cartel has the exact same directional exposure to know that when prices go up, they all make money and when prices go down, they all lose money.

In the Libor space it’s not clear that every bank has exactly the same Libor exposure. so it’s not clear that that cartel in setting Libor and manipulating it actually is as powerful as the cartel that manages oil prices, yet I don’t hear any outrage of people routinely trading commodity derivatives and commodity futures as much as I hear the outrage over euro/dollar futures and Libor-based interest rate swaps.

Maybe it’s a perception thing, Everybody assumes that’s what goes on when you trade commodity futures, but nobody ever really thought that was going on when you were trading euro/dollar futures.

Right, well let’s go out for a drink sometime.

I knew you guys would be, you’re like soul mates. I just got you started.

Thank you, Kevin, Doug. thank you, have a good weekend. you, too."

LINKED source…..

http://the2012scenario.com/2012/08/cnbc-stand-in-reporter-admits-financial-syst
em-changeover-theyre-going-to-put-the-old-system-in-a-coma/#more-139056

Another article of importance as well……

JPMorgan Chase Libor Subpoenas Coming From Everybody In The World

2012 August 10
JP Morgan Chase CEO Jamie Dimon
By Mark Gongloff, The Huffington Post – August 9, 2012

Pretty much everybody in the world with subpoena power has hit JPMorgan Chase with requests for information in the Libor-rigging scandal.

The biggest U.S. bank revealed the extent of its involvement in the probe in a filing Thursday morning with the Securities and Exchange Commission, saying regulators in the U.S., U.K., Canada, Switzerland and more had asked it for information:

JPMorgan Chase has received subpoenas and requests for documents and, in some cases, interviews, from the DOJ, CFTC, SEC, European Commission, UK Financial Services Authority, Canadian Competition Bureau, Swiss Competition Commission and other regulatory authorities and banking associations around the world.

That’s a whole lot of subpoenas.

For the uninitiated, "DOJ, CFTC, SEC" refer to the Justice Department, Commodity Futures Trading Commission and Securities and Exchange Commission. "Libor" stands for "London Interbank Offered Rate," a short-term interest rate that affects borrowing costs for homeowners, companies and borrowers throughout the world, along with about $350 trillion in credit derivatives. Despite its importance, the rate has apparently been manipulated constantly for years, in what may be the biggest financial scandal of all time.

JPMorgan — which said it was cooperating with the investigations — has also received requests for information about its involvement in setting Euribor and Tibor, the European and Japanese versions of Libor, respectively.

The bank made a similar disclosure in its previous quarterly filing in May.

JPMorgan has been identified as one of 16 banks in the U.S., the U.K. and Europe under investigation for manipulating Libor.

Barclays has already agreed to pay $450 million in fines in the case, admitting its traders pushed Libor higher and lower to either gain advantage in derivatives trades or make the bank look healthier.

Other banks will likely soon follow, and regulators are building criminal cases against individual traders and maybe banks, too.

Previously, Bank of America and Citigroup have said that they, too, have gotten subpoenas in the Libor case, though they mentioned fewer regulatory agencies than JPMorgan did.

JPMorgan also said it was the subject of a large and growing number of lawsuits coming out of the Libor mess. State and local governments, for example, are suing banks for keeping Libor too low, hurting the value of interest-rate swaps they bought to protect against rising rates.

http://www.huffingtonpost.com/2012/08/09/jpmorgan-chase
-libor-subpoenas_n_1760015.html

-END-

It certainly appears JP Morgan is going to be under the gun for some time concerning their activities in various financial markets.

(This is mostly for newer Cafe members, as veterans know this cold by now.)

On that score in December of 2008 I met with the CFTC’s Bart Chilton in Washington, D.C., along with three senior enforcement people, and laid out what evidence had GATA to expose the gold/silver price manipulation scheme…

December 18, 2008 - Gold $859.90 down $8.60 - Silver $11.08 down 32 cents

…About 45 minutes before I was to leave for my meeting with CFTC Commissioner Bart Chilton, this news hit the tape:

09:12 Obama to appoint Gary Gensler to lead Commodities Futures Trading Commission-AP
Gensler is a former Undersecretary of the Treasury and Assistant Secretary of the Treasury.
* * * * *

Gensler is a Goldman Sachs alum AND a Treasury man. Obama is putting one of the key figures in The Gold Cartel scheme into the top dog role at the CFTC. Talk about the fox guarding the hen house! However, the bad news might be good news.

The meeting with Bart Chilton went on as scheduled and lasted about 50 minutes. The surprise was that there were three others from the CFTC who attended, including the Deputy General Counsel. One of the other attendees at our meeting had already viewed the Gold Rush 21 video.

Bart listened intently and took notes, as did one of the others, and asked numerous questions. Basically, I laid out our GATA presentation as I explained in the Sunday Midas. I am not going to get into all the details of what they said, as we will see what takes place in the months to come … except to say that I chuckled when saying to them if they really wanted to comprehend what the real gold price suppression scheme is all about, all they have to do is go to their new Chairman … at the right time. No one knows what is going on better than he does.

I did not hold back and said the main culprit of The Gold Cartel was our own government (their own boss), who has been in league with bullion banks JP Morgan Chase, and others, to suit their own hidden agenda.

Naturally, I drew parallels to the Madoff scandal and how the SEC ignored 9 years worth of probes into the Ponzi scheme. I also laid out how and that why what is occurring in gold and silver could lead to a much bigger scandal in the years ahead if the price suppression scheme is not aborted … and that is because The Gold Cartel is running out of enough ammunition (available central bank gold) to meet the growing annual supply/demand deficit.

I was very impressed with Bart Chilton (very sharp guy) and he mentioned that my trip to D.C. would not be in vain. There are two things for sure. As in the Madoff scandal, no one can say the powers that be didn’t get the full scoop, and the facts about the gold price suppression scheme … what has happened and why. And if there is one person in Washington who will throw his hat in the ring to get to the gold truth, this is the man.

***

http://www.lemetropolecafe.com/james_joyce_table.cfm?pid=10168
(subscription required, but a 'painless' two week free trial is available by clicking on the above link.

Dan