FROM SHADOW BANKING TO SHADOW WAREHOUSING
As I have previously stated, the Banks have literally stolen trillions of dollars from pension funds, municipalities, states, federal agencies, sovereign wealth funds and private investors. Estimates range from $3-$20 Trillion. So where did they put that money? They didn’t keep it in currency (too easy to trace and too easy to claw back). They are keeping it in natural resources which are (a) practically as liquid as cash and (b) likely to go up in value rather than keeping the stolen money in cash. The fact that they have already been fined for committing violations and crimes with the storage and movement of our natural resources is not stopping them any more than the fines and penalties they paid in the great group of mortgage-related settlements now totaling an estimated $200 Billion. Chump change when you have stolen trillions of dollars.
The foreclosures? That’s just the finishing touch on the last scheme. Now the new one is starting in natural resources. They figure they have pretty much won the mortgage confrontation. Not on my watch!
Millions of tons of metal stored in “shadow warehouses”
04:29 AM ET · JPM
- The WSJ shines a light onto “shadow warehouses,” a hidden system of facilities that store tens of millions of tons of aluminum, copper, nickel and zinc across the globe for banks, hedge funds and commodity merchants. [Editor’s Note: If you were wondering where all the hidden compensation from real estate loans went — is this recoverable under TILA?]
- The warehouses operate outside the London Metal Exchange’s system, are unregulated, and don’t provide details of their holdings. As a result, it’s unclear how much metal is held in the shadow system. This lack of visibility could cause major price swings.
- The WSJ article follows allegations that warehousing companies have artificially boosted the price of metals, particularly aluminum. [Just as they artificially boosted the illusion of price in the mortgage bubble]
- Companies that operate metals warehouses include Goldman Sachs (GS), Glencore Xstrata (GLCNF) and JPMorgan (JPM), although the latter is looking to sell its commodities unit.
- Relevant tickers include VALE, AA, AWC, KALU, MNSF, CENX, NOR, BHP, RIO, ACH.
- ETFs: DBC, JJC, DBB, DJP, GSG, RJI, GCC, USCI, CFD, JJN, JJT, BOM, RGRC, CPER, CTF, RJZ, GSC, LSC, GSP, JJU, DEE, BDD, BOS, JJM, DYY, DDP, DJCI, LD, CMD, BCM, CUPM, UCI, RGRI, UCD, UBM, FOIL, BDG, LEDD, CMDT, SBV, USMI, DPU, NINI, FTGC, CSCB, CSCR, HEVY
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