SmartKnowledgeU’s JS Kim has released an excerpt from his upcoming book The Bankers’ Plot to Bankrupt the World & How We Can Stop Them!, which is Kim’s blueprint on how average investors can band together to finally kill JP Morgan’s alleged massive manipulative short position in silver futures.

From SmartKnowledgeU:

If the strategy of taking the opposite side of a hugely manipulative position allegedly helped Goldman Sachs kill SemGroup’s massive short position in crude oil and eventually bankrupt SemGroup and it this same exact strategy that allegedly helped hedge funds double, triple or perhaps increase by a factor of 10,  JP Morgan’s CDS paper losses in a very short condensed period of time, then there is no reason to doubt that this same strategy would not work in chasing JP Morgan out of the silver futures market if they are indeed holding a massively large manipulative position in the silver paper market. So how could this be accomplished?

One way would be for hedge funds and speculators to start piling on long positions in the silver futures market to force prices to rise and cause a massive spike in silver due to the consequent necessity of JP Morgan to then also assume long positions to hedge the growing losses of their short positions. However,for reasons stated above, we know that this will never happen as those that have assumed long positions in the silver futures market have repeatedly been forced out of the market with massive losses due to JP Morgan’s utter dominance of the paper silver market and their periodic engineered silver crashes with the cooperation of MF Global, the US Federal Reserve, the SEC and the CFTC. Due to the massive distrust of the paper gold and paper silver market created by the enormous volatility that the banking cartel creates in this market from time to time, convincing institutions to very aggressively take the opposite side of a trade in a market that is so highly manipulated, as occurred with SemGroup and the London Whale, would be an exponentially more difficult task in the silver futures market.  Furthermore, the criminal banks have illustrated that the CFTC will change laws, such as initial and maintenance margins in the PM futures market at any time to assist JP Morgan when JP Morgan’s silver short is in serious trouble. Thus, assumption of the opposite side of JP Morgan’s silver position in the paper markets may not be a viable option.

But there remains a second option – take the opposite side of JP Morgan’s alleged massively manipulative silver position not in the paper markets but in the physical market. If every one that read this article just converted a small percent of their paper savings into physical silver, eventually this action would cause such a massive divergence between physical silver price and the paper futures silver price that the fraudulent COMEX futures market would collapse and bring down JP Morgan’s alleged short silver position with it.  In other words, the people could act as did Goldman Sachs versus SemGroup and hedge funds v. the London Whale and collectively serve the same purpose as a huge fund that decided to take the opposite side of the alleged JP Morgan silver short to squeeze their position and cause it irreparable damage. And since Blythe Masters is already on record as stating that JP Morgan has no stake in whether silver prices crash or skyrocket, then skyrocketing silver prices should not cause great economic distress for JP Morgan, and if it does, then
she will once again be outed as a massive liar.

However, this solution to shaking JP Morgan out of their massive silver short position will work if only enough citizens around the world believe it will work. The problem we face now is primarily one of education, so I am depending upon each and every one of you to spread the world and to serve as a node of information transfer to your fellow citizens. The reason citizens have not yet taken this stand against JP Morgan, even those whom are furious with JP Morgan’s immoral actions in the finance world, is because they do not believe we can win.  This false assumption has been spawned from the banking cartel’s massive volatility created in paper gold and paper silver markets and also simply by banker propaganda that is designed to raise doubt in our collective intellect and our collective ability to fight back. How many times, since 2008, have you heard bankers tell us that the situation is “too complicated for people to understand” and that only they have the “expertise to solve this economic crisis”? The truth of the matter is that their immorality in gaming the system for their benefit only is shockingly simple to understand and that the solutions we can partake collectively to bring them down are shockingly simple as well. However, the key word is “collective”. United, there is no way a few dozen families worldwide would ever be able to control 6.8 billion people and hold us hostage, but this is the situation we face today because we do not yet have the faith that we are powerful enough to affect positive change in the banking industry. During this fight for our economic freedom, too often we have fallen victim to the voice of doubt that bankers have planted inside our heads, telling us we are too dumb and too weak to make a change, and we have unfortunately have believed their drivel. I am here to tell you that we do wield the power to defeat them if we only support one another to first educate, second, believe, and third, act upon our
beliefs.

Most citizens, by and large, still have shockingly little understanding of what drives gold and silver prices, and they do not understand that the banking cartel can drive down gold and silver spot prices considerably at times even when institutions and sovereign entities are consummating massive physical purchases of gold and silver. And that is why the people should fight back in the physical market. If one should purchase 5,000 ozs of silver today and the cartel drives silver down $3 an ounce, at the end of the day, you still have 5,000 ozs of silver and the price drop is merely illusory and one, in my opinion, that will be easily recouped in the future. Why? Because the current dynamics of the physical market and the downward spiral of our global monetary system says it will.  Remember that massive purchases of physical gold and physical silver were reported out of the East during this latest Western banking cartel takedown in paper prices. What does this indicate? – that in the future, the prices of gold and silver will rebound massively, despite any interim volatility or another banking cartel takedown that may happen. I fear that most people do not understand just how close we are to the end of our current global monetary system and that taking action now to protect oneself from the implosion of our criminal fraudulent monetary system is quickly becoming less of an option but rather an absolute necessity.

The only reason that these massive physical purchases of gold and silver are not causing a massive divergence between spot and physical prices right now is because these physical purchases that have been transferring massive quantities of physical gold from West to East have been completed out of the view of the public. Perception is very important in the determination not only of paper prices but also of physical prices. If the retail investor joins in this physical buying spree and gold and silver coins become scarce, then this situation, because it would be visible to the retail investor, would eventually cause a massive divergence in price between the spot and physical prices of gold and silver because the perception of gold and silver supplies will finally match the reality of physical gold and silver supply. At the current time, perception and reality of physical gold and silver supplies DO NOT MATCH one another. This is how we can still suffer depressed prices of gold and silver even as physical supplies are tightening.

Thus, for all intents and purposes, we need to change the perception to match the realities of the physical gold and silver markets in order to drive the stake into the heart of the alleged JP Morgan short position in silver. Three weeks ago, in my article Fear & Panic are the Banking Cartel’s Weapons V. the Gold & Silver Bull. Patience and Logic are the Best Defense, I stated, “at times like this, when gold and silver have taken a fairly brutal hit in a condensed period of time thanks to low daily trading volumes both in PM futures and PM stock markets that make it very easy for the banking cartel to manipulate them, it can be difficult not to sell out of everything and run for the hills if one allows emotions to dictate one’s decisions(always a bad move). Especially at a time when fundamentals mean virtually nothing and speculators like JP Morgan and Goldman Sachs are constantly rigging markets and gaming the system through their High Frequency Trading (HFT) programs, it is difficult not to become emotional with your investment decisions. Thus it is important to take a step back from the here and now, and to look at the big picture to re-gain a better grasp of where asset prices will be heading in the future and to re-establish the proper perspective with which to evaluate your decisions… I would interpret this as a sign that a major bottom is imminent rather than sign that the gold and silver bull are finished.”

Despite Citigroup technician Louise Yamada releasing an article that very same day in which she stated that weakness in gold and silver was likely to continue with gold likely to retrace to $1,500 an ounce or lower and silver likely to retrace to $25 and then possibly $20 an ounce, I contradicted her with my own view. Since May 16, 2012, one day prior to when I wrote this comment, gold has moved 5.5% higher from a low of $1526.70 and silver has moved a very significant 8.8% higher from a low of $26.73. And even if I’m wrong about gold not retracing to $1,400 due to another banking cartel engineered decline in PM prices, the big picture people need to understand to gain the confidence to take action and shutter the alleged and immoral JP Morgan silver short is that the occasional massive and artificial banker-created volatility in paper prices of PMs is entirely irrelevant to the protection physical PMs will provide when the global monetary system continues to implode. If people can grasp this one concept, then I’m convinced that people will collectively act in a decisive manner to finally assume the opposite side of the alleged JP Morgan silver short as hedge funds did with the London Whale and as Goldman Sachs did with SemGroup.

The sure way to align perception with the reality of tight supplies in the physical gold and physical silver markets that have resulted from the banking cartel’s takedown of paper gold and paper silver prices last month is to start preparing for the end of our current global banking system by converting fiat currencies into physical silver right now. If you are still apprehensive about doing so, then consider starting out small. Merely convert part of your savings into physical silver right now and continue to do so every month. If we can convince enough people around the world to do this, then we would all be re-assured in a positive feedback loop by the resultant rising silver prices. The only reason that JP Morgan has been able to temporarily knock down silver prices every time it makes significant runs higher in price is because enough people do not buy physical silver and continue to engage JP Morgan on their home turf of paper silver derivatives such as futures and the SLV ETF. However, draw JP Morgan out of the paper silver game and on to the turf of physical silver by converting bogus paper fiat currencies into physical silver and holding tight through their attacks on paper silver prices, and this will spell the end for any manipulative silver shorts held by them.

Silver is a small enough market and it is priced at an affordable enough price right now that nearly every one, rich, middle class or poor, can participate in this scheme to help end our current fraudulent banking system.  Christine Lagarde, the head of the International Monetary Fund, aptly illustrated why we all need, as a collective group of global citizens, to act now and put an end to the scams big banks are imposing upon us. Ms. Legarde warned this week, in June of 2012, that the world risks a triple crisis of declining incomes, environmental damage and social unrest unless countries adopt a more sustainable approach to economic growth. This is one of the most incredibly hypocritical statements yet to be uttered by a banker because her organization is one of the organizations most responsible for economic instability across the entire world. If we do not act now, banksters will be sure to achieve the destruction of our current system that they desire in order to establish a 100% digital monetary system that will be their deceptive “solution” presented to us to save us from economic instability. In reality, such as solution will only further push all of us deeper into economic slavery. There are those that question the validity of exposing big bank scams and pushing them into a bankrupt state as many have intelligently observed that it is only us, the taxpayers, that will be continued to be punished for the banks’ immoral behavior with the imposition of more massive bailouts.  While this unpleasant conundrum may be true, at least the accumulation of physical silver (and physical gold) will protect us as the prices of gold and silver should continue to soar under these conditions. Thus, the accumulation of physical gold and silver will serve as a hedge for us for conditions that we know will happen as a result of our actions with one enormous added benefit. The accumulation of physical gold and silver will provide us with the power to determine our future course of action after our current monetary system implodes instead of leaving this power concentrated in the hands of the immoral global banking cartel. At the present time, the smaller silver market versus the much larger gold market (in terms of market capitalization) affords us the best opportunity to do so, and if all of us would convert just a small percent of our fiat paper savings into physical silver, I sincerely believe that we can achieve our mission of putting the power to determine our future back in our hands.

For a much more comprehensive and detailed discussion of this topic and other topics critical to surviving the coming brutal collapse of our global monetary system, please visit our website to purchase a full copy of The Bankers’ Plot to Bankrupt the World & How We Can Stop Them! next month when it becomes available. And please remember, we will be donating all first-year sales profits of this book to two children’s orphanages and one children’s learning center.