CME Declares Force Majeure at Manhattan Gold Depository

CME Group Inc. (CME) on Monday said that Manfra, Tordella and Brookes Inc., one of the exchange's gold depositories, will not be able to delivery metal as the lower Manhattan company deals with "operational limitations" almost a month after the arrival of Hurricane Sandy.

MTB, one of five depositories licensed to deliver gold against CME's benchmark 100-troy ounce gold contract, held 29,276 troy ounces of gold and 33,000 troy ounces of palladium as of Nov. 23, according to data from CME subsidiary Comex.

In a notice to customers on Monday, CME declared force majeure, a contract clause that frees parties from liability due to an event outside of their control, for the facility.

CME said that individuals holding MTB warrants, or certificates for a specific lot of metal stored in the depository, may receive gold delivered from Brinks Co. (BCO) in New York. MTB is responsible for any additional costs incurred by customers receiving metal from Brinks, CME said. Read more >>

Consolidation of power by the Secret Government has been achieved

Comment of the day by Joyful

The real subtext of this [CME] story is exclusively about government debt.

The CME, the primary dealers, TBTF banks are running interference for the FED, so as to disguise the latest manipulations dreamed up by the subgenius MBAs who finally had to acknowledge that the QE experiment had run out of runway.

In other words, this is a governmental liquidity crisis. It will be 'solved' (temporarily, as always) by a mass confiscation of investor savings disquised as more 'free market' events. (hint:MFG as precursor event)

If Wall Street and the big banks get blamed for the fallout, that will be entirely satisfactory to the TPTB: it's part of the deal for the rake off they get for hiding the true nature of the crime and indentity of the criminals. Besides- beta testing for the imposition of martial law (hint:OWS) has advanced to the stage where everyone is sure that public anger can and will be contained.

That this is unfolding in sync on both sides of the euro-merikan pond is mere confirmation that consolidation of power by the Secret Government has been achieved to the necessary degree to successfully collapse our post-feudal experiment in individual liberties and return us all to the required level of peonage.

Nothing new under the Sun...this is 1720, all over again. Rinse, repeat, sheer the sheep. If the small investor class does not go completely apeshit over what's already happened to them as of this week, they will assuredly be completely destroyed before that Mayan calendar thingy even has a chance to kick in.

1720 saw the CONCURRENT failure of schemes wherein governmental debt was farmed into corporate hands in order to complete an integration of public-private insider trading which ruined the investing classes of the times in Britain, France and the Netherlands. It also involved an incipient USA insofar and the Mississippi Company was the vehicle by which public risk was institutionalized via the crown takeover of a public company's risk.

I don't have the time right now to go into all the details of Jon Corzines channeling of John Laws template of corporate fascism aka statist ponzi schemes. But I can assure you that everything is completely under control. It's the people who are at greatest risk of 'folding' not the banks.

For now.