In an interview with Russia Today (RT) on November 14th, economist and trends forecaster Gerald Celente became the newest victim of the MF Global bankruptcy when his gold futures account was taken by trustees, and he was hit with a margin call within days of the corporate shutdown.
“I really got burned, I got a call last Monday, I have an account with Lind-Waldock, and I have been trading gold since 1978, and I have a very simple strategy. As you well know, I’ve been very bullish on gold for many years…”
Gerald Celente- “So I was building up my account to take delivery on a contract, and I got a call on Monday, and they said I needed to have a margin call. And I said, what are you talking about, I’ve got a ton of money in my account. They responded, oh no you don’t, that money’s with a trustee now.”
Celente is a victim here, to be sure. He advocated the physical ownership of gold, and not paper claiming you owned such-and-such an amount, perhaps knowing that such ownership can be revoked, especially in regimes as criminal as the Obama Administration. But nevertheless, he used MF Global as a conduit for his trading. Perhaps a savvier investor would have seen Corzine's name, known about his open desire to make a quick buck and then dash to the Treasury, and pulled their money out. Or perhaps our expert, Mr. Celente, believed deep in his heart that anything with Jon Corzine's name on it would be protect by the government, due to his rather unique relationship with the president.
Celente lost that bet, if he had made it. The lessons are to take all of these so-called experts with a grain of salt - Celente may be no better a forecaster than some guy at a casino who is sure which number will come up next on the roulette wheel - and to watch who manages your funds very, very closely. True even if your investing is limited to a 401(k).
Finally:
MF Global's demise and theft of customer assets caught a big fish in the crossfire when trustees [Jon Corzine] took money and holdings from Gerald Celente futures account...
I've said before that MF Global could in fact bring down Barack Obama, and the involvement of high-profile investors may make this case even more troublesome for our larcenous president. For what if people become aware that their money - on deposit in a S&L, perhaps - is no longer safe, as bank officers can use it to place bad bets, and go under cover and be protected by the government if it all goes to hell?
Slowly, people would start withdrawing their money from these institutions. And banks would no longer even have the money to lend. Some would go under, with ensuing "panic" and runs on banks. Within days, our whole system could collapse...
{Don't laugh, it's already happening across the pond}
...and it could be 1939 all over again. All thanks to Jon Corzine, and the president that refused to let him be prosecuted...
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