Thursday, May 27, 2010

Gold Is The Money That Can Be Trusted

Eric King: This was from Jim Sinclair’s eblast today and I thought KWN viewers should take note of it (hat tip). Jim Sinclair: What ever the OTC derivatives do not do to the Investment Banks litigation will. Litigation is both civil and criminal. No civil suit based on derivative can ever go to judgement by jury because it will be a stone loser. Even a bench trial would present significant risk to the defendant. OTC derivatives are the basic problem about which nothing has been done and nothing will be done. That secures the final end which is gold as the only standard of value, measure and storehouse of value functioning as a medium exchange which is the complete description of what money is.

Gold is the money that can be trusted as debt is being added to debt in a pharisaical plan to cure a debt problem.

The fiat system is cooked, and there is simply no good paper currency.

The face of this world is about to change. Sir Richard Russell is correct.

Please protect yourselves because you must. I can point you in the right direction. You must take the action.

Lehman Sues JPMorgan to Recover Billions of Dollars (Update1)

By Linda Sandler and David McLaughlin

May 26 (Bloomberg) -- Lehman Brothers Holdings Inc. sued JPMorgan Chase & Co. to recover tens of billions of dollars in “lost value,” accusing the bank of precipitating its downfall and preventing it from winding down in an orderly fashion.

JPMorgan, which was Lehman’s main short-term lender before its September 2008 bankruptcy, helped cause the failure by demanding more collateral as credit markets tightened during the financial crisis, Lehman said in a complaint filed today in U.S. Bankruptcy Court in New York.

The lawsuit follows a report by Lehman examiner Anton Valukas, who said in March that Lehman might have grounds for suing JPMorgan and other banks.

“On the brink of LBHI’s bankruptcy, JPMorgan leveraged its life and death power as the brokerage firm’s primary clearing bank to force LBHI into a series of one-sided agreements and to siphon billions of dollars in critically needed assets,” Lehman said in the complaint.

Lehman didn’t specify in the complaint an amount for the losses it is claiming as a result of JPMorgan’s actions.

“The lawsuit is ill conceived and the costly litigation will cause a further drain on the limited resources available to the Lehman bankruptcy estate,” Joe Evangelisti, a JPMorgan spokesman said.

“As the examiner’s report makes clear, it was the ill- advised decisions of Lehman itself and its principles to take on perilous leverage and to double-down on subprime mortgages and overpriced commercial real estate and not any conduct by JPMorgan that led to Lehman’s demise and the enormous losses to its various constituents,” he said.

The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).