Market Manipulation and Deglobalization

JP Morgan Chase and Co’s Guy America, who served as global head of credit markets and public finance, was found guilty on charges of market manipulation this month. After working for 28 years at the bank, Guy’s run has come to an end at the bank. Too many, this is just another story confirming their biases that banking is a dirty game, rigged to help the elites and insiders. That these lawsuits are just weapons used in a much larger game, and not a sign of changing times. Soon we will all forget about Mr. America and many believe that business will be back to the usual.

In many similar cases over the past 50 years, that take would have been true. But this time I think it will be different. This is not just a situation that will be swept under the rug like Enron or Lehman Brothers. This time major financial tectonics shifts are occurring and these movements will change the world of finance as we know it for hundreds of years.

Here is a 2016 interview with Guy and his explanations for how J.P. Morgan works with AFME (Associate for Financial Markets in Europe). 

Guy America and the four other members of the J.P. Morgan team were found guilty of manipulating precious metal markets, such as gold and silver, after running their scheme with success for years. There team was sited for using thousands of layering and spoofing manipulation techniques to defraud investors. The team is being formally charged with racketeering.  

If this scheme was being run for years, why now is the team being punished for their actions? 2021 was an extraordinary year in the stock market to say the least. Remember when the London Metal Exchange’s Nickel market was broken forcing the exchange to shut down, alter the nickel price and reach a bank deal to settle the trade? This was the direct result of a massive Chinese short squeeze executed by the metal and steel monopoly Tsingshan Holding Group. J.P. Morgan was on the LOSING side of this trade and the incident has cause massive upheaval in the market. 

Besides jail time and billions of dollars in losses, the fall out from this incident is much greater. Trust (maybe the most important aspect in any market) was broken between western nations and eastern nations. This is nothing new, as the relationship between the two sides has been deteriorating by the day. The financial weapon of the West has been the EuroDollar Banking system. Countries like Russia, China, Iran and Saudia Arabia are realizing that by using the EuroDollar system they open an attack vector that is very strong and used frequently by the West. Since the Bretton Woods Act the Dollar has been backed by the strength of the US military, government and society. Now 50 years later, countries like China and Russia are slowly opting out of this system and trying to create there own banking system, a commodities based system through an organization called BRICS

Economic relations were destroyed between the West and Russia with the invasion of Ukraine. Europe relying heavily on Russian oil for energy are now being strangled by high electricity costs. China and the Saudi’s pricing oil in Yen or Chinese companies removing themselves from American exchanges. There are tectonic economic shifts occurring right below the surface of the market. 

In the new economic ware casualties like Guy America is one of many more that will be exposed before this conflict is settled.  


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