Even the "thieves" will need "safe haven" for their ill begotten cash with their last resort - - - you guessed it, gold and its little brother, silver! Their $UStrillions would certainly move gold beyond its "outer orbit!"

Stand by!

THE HIGH COST OF HOPE (an excerpt from Jim Willy's article posted today on Kitco.)

The maxim goes “burn me once, shame on you, burn me twice, shame on me” applies. The public is about to be burned again, then later in the spring, burned a third time. They do not learn. They prefer, as many friends and family of mine do, to continue to give the benefit of the doubt to the bank officials and Congressional leaders, and to cling to hope.

The Hat Trick Letter has not granted any trust to such charlatans, elite syndicate heads, and compromised public reps for years. Correct forecasts are easier that way. Some wonder in private exchanges to me why corruption is such a regular theme in my articles and work. My answer is simple. Corruption is reaching a climax in proportions, the dominant theme behind the failure of the US banking system, the co-opted USGovt, as well as the national charade that has taken root nationwide, the war on terrorism. Bernie Madoff is not an isolated case. An entire cluster of Wall Street and other major financial fraud-ridden institutions is plain in view, like AIG and Fannie Mae, even Citigroup, Goldman Sachs, and JPMorgan. The nation reveres the very fraud kings that ruined the national financial structure. Numerous hedge funds operate scams of various shades. Before long, if justice finds a little luck on some upcoming twists, the Madoff Scheme might reveal a broad USDept of Treasury involvement spanning two decades, centered in London. The four major trillion$ syndicates have strangled the nation. It is in a death spiral. Delusion of a recovery is pure propaganda. Talk of recovery is politically necessary. Was there song on the Titanic, or mere rearrangement of chairs?

The hope in my view stands as a cloud that must cover the other cloud that permeates policy decisions regarding banks and mortgage. The major motive behind most solutions today is to administer aggregate solutions, from the top down, so as to eliminate the scrutiny at the grassroots level. The level that deals with individual loans is ripe with pervasive fraud in bond securitization, as in poor perfection of titles, which means mortgage bonds do not have proper links to actual home loans. Change of loans would force change in mortgage bond values, the start of the discovery process. The issue of colossal counterfeit of Fannie Mae bonds is a topic that eludes the entire press corps. It reached over $1 trillion by many accounts. Any solution other than aggregates must enter the fraud and counterfeit quicksand. The public is unaware. So the nation will continue to sink while the elite are redeemed.

FAILED REGULATORS WITH GREATER POWER

The next changes for regulatory bodies will grant them more powers, when they failed to exercise their current powers in protecting the public investment community. The gaggle of agencies will next have powers to enable even greater corruption, control of your assets, access to private position data, integration with markets, and likely price controls much broader than today. Geithner has warned that extraordinary measures will be taken and implemented in order to sustain the system. The problem is that the system is broken, firms are deeply insolvent, and conditions are actually growing worse. Almost all efforts at this point will be to produce more climax events in the corrupt vein, leading to a crescendo like bank holidays. Such an event would be a perfect backdrop for a missing cool $1 trillion in private brokerage accounts, bank accounts, and insurance accounts. They will probably do it because they can, since they have already paved the way with consolidations and removal of legal obstacles. They require more confusion though.

BIG BANKS, BAD BANKS, PEYTON PLACE, HUSH MONEY

Could it be that the hidden JPMorgan garbage has grown too big to manage, and that the USGovt strives to create an official ‘Bad Bank’ to contain worthless toxic bonds and related securities? Surely, the JPMorgan garbage can continue with a foundation of toxic credit default swap and interest rate swap contracts. A Bad Bank would enable JPMorgan to shuffle tens of billion$ in the dead of night on a regular basis, putting the entire collection of swill under the USGovt roof. The entire issue of nationalization of the major components of the US bank system in my view would constitute a grand embrace of a totally destroyed enterprise laced with fraud, giving ownership of the broken pieces, fraudulent lattice work, and acidic flow to the American people. The entire concept of a Big Bad Bank is ludicrous. If its foundation is based upon reality, then the banks that unload toxic assets will receive next to nothing in return, rendering the banks themselves deeper into insolvency. If the foundation is based upon mythical models, then the USGovt will pay 3x or 5x or 7x too much for them, in yet another bankster welfare theft program whose price tag could easily reach a few $trillion after the dust clears. Banks will be reluctant to lend in either case, since they will either be insolvent and unable OR view borrowers as unqualified and unable to repay. In such a horrible setting with bleak outlook, staggering rescues and stimulus ensure that gold & silver shine!

The last question: Could another bigger motive be at work in granting $450 million in retention bonuses to the credit derivative group at AIG? The more sinister reality might be that such a large sum was necessary within AIG to reward deep failure in order to keep them silent on colossal corruption in the machinations among the USTreasurys, Wall Street, and COMEX regarding illegal market controls, interference, and interventions. The same argument holds for the hire of numerous failed traders in key roles at Lehman Brothers. The failed fellows followed the path back through Wall Street doorways, fully hired, totally locked in, and thus motivated not to speak to the press or write damaging articles in key publications. The same argument holds for appointing Tim Geithner as Treasury Secretary. He knows too much, and could easily pull a thread that would unravel the entire tapestry that conceals vast corruption. The system remains firmly in place.

Just a footnote in my objection to a theme. During the Geithner confirmation hearings, a theme arose that although he was at the center of the failures within the financial system, he was familiar with how the system works. The nation could not afford to engage in ‘On the Job Training’ for someone unfamiliar, an outsider. In other words, the corruption continues since an outsider would require training!!! Is that precisely what is needed, an outsider who would not be trained on how the system currently operates, but rather on how the system should be set up in order to function properly???

Is it any wonder Jim states publicly that his worst fear is L-E A D?

RUF