Get Ready Mr. Morgan

It’s gonna get interesting in the next few weeks. If J.P. were alive today he would surely have his panties in a bunch. Never one to stand idle while his firm takes a hit, I’m betting he would be a tad madder than the above photo indicates.

Unable to continue manipulating the silver and gold markets due to various class-action lawsuits and CFTC scrutiny, the clock is ticking ever faster to the December delivery clusterfark for messengers Morgan & HSBC.

On Monday, open interest in Dec. silver stood at approximately 17,000 contracts [86,000,000 oz.]. The Comex [division of CME] reports approximately 48,000,000 oz.  available for delivery. Open interest in Dec. gold stood at approximately 59,000 contracts [5,900,000 oz.]. The Comex reports approximately 2,600,000 oz. approved for delivery.

I got in touch with my chief math guy, Jethro Bodine, just to make sure I wasn’t fudging the numbers. After showing me [for the umpteenth time] his diploma, he assured me naught from naught is still zero and subtracting a higher number from a lower number means you got problems.

With all the POMO [Permanent Open Market Operations] by the Weimar Fed, they’re gonna need all the printed money they can get from “Helicopter” Ben to stem the ass-kicking they’re gonna get come delivery.

Of course, they can always deliver the physical metal, but that is becoming somewhat of a problem since deliverable product is scarce. Instead, expect the dual evil empires to kick the can down the road to Feb. 2011 [gold] and March 2011 [silver], hoping like hell we get a break so they can cover.

If that doesn’t work, expect the next bank bailout at the end of Q1 2011. Soooooooo sorry Mr. Morgan, you lose!!

-vegas