Shanghai Index Falls Equivalent of 2,000 Dow Points In Past Few Weeks While Copper Nears Bear Market Territory In Sympathy

Above is a chart of the Shanghai composite (colored candlesticks) with the price of copper overlaid on it. (black solid line) I'm not convinced action in the U.S. stock market last week was related to Europe in any way. Industrial commodities came crashing down as well. The media has to blame it on something they can see. ie, Riots in the street of Greece and Wall Street's scheming in the Greek sovereign debt markets.

The correlation between copper and the Shanghai index is literally a nearly perfect daily correlation. For some reason no one else still wants to talk about this. But the reason we are paying $80 for a barrel of oil and $3.50 for a pound of copper is because Wall Street is front running the commodities market just like they are front running investors in the stock market with computer trading. I wrote on here years ago that it costs about 5 cents a pound to mine copper and the average price of copper over the last sixty years has been about 50 cents. But, instead we now hear the world is running out of the shiny metal. Why? Because it fits Wall Street's fraud.

Wall Street is completely extorting China's massive purchase of commodities by inserting themselves into the commodities space and creating this commodities bubble. Not to mention that they are ripping off every single American by forcing prices higher. Wall Street's entire existence is predicated on front running. Historically, Wall Street had made its money front running credit as we have highlighted numerous times. Something their monopoly access to capital grants them. Monopoly access given to private bankers about eighty years ago through what was most assuredly lobbyist bribery of our Congress. But now these scumbags have their fingers in everything. Front running food commodities, industrial commodities, energy commodities, gold, etc. They front run consumers with every type of banking fee imaginable. (late fees, application fees, every type of credit card fee imaginable, ATM fees, account fees) They front run our schools and municipalities in the fees they extort for raising capital and selling risky protection schemes that don't work. They front run our retirement accounts by charging astronomical management fees for what almost always amounts to guaranteed underperformance. They front running our government by extorting massive federal debt interest penalties from the American people. They are front running Greece's crisis by ripping off the sovereign people of Greece by front running its debt issuance and even helping to create that crisis. Wall Street is nothing more than a massive and fraudulent tax on society. A killer of wealth. A destroyer of freedoms. A murderer of economic opportunity.

Eventually people will have to choose between social programs or Wall Street's massive tax. Social Security or Wall Street fees? Funding for special needs children or Lloyd Blankfein's salary?

Commodities are imploding because the Shanghai Index is imploding, not because of Greece. Not that they are completely unrelated. And the correlation between the Shanghai Index and commodities is surely driven by the Frankenstein mathematical models Wall Street has built for the commodities markets. Something President Clinton's deregulation has allowed.

For years we have written that this commodities bubble was manufactured by Wall Street. Somehow this continues to escape mainstream discussion. It's really because society has no idea how Wall Street has rigged the game. It's Enron redux. The lack of transparency allows any type of scheme imaginable by a predatory financial and banking system.

If our government didn't borrow money from private banksters but instead printed it into existence as we used to, we would have enough money to give every American a home, wean ourselves off of foreign energy, finally democratize our educational system and recover much of our lost economic opportunity. As I wrote on here before, Thomas Jefferson wanted to give everyone their own property courtesy of the government. We don't need to borrow money to do that either. But can you imagine if that were suggested today? Jefferson would be labeled a communist. A Nazi. Un-American. Because Wall Street controls the microphone and has brainwashed the vast majority of society into this absurd mess we have gotten ourselves into. Is it any different than people defending a predatory dictator? Our dictator resides on Wall Street. Those brainwashed into supporting this dictator are the political elites and the wealthiest members of society who benefit from such predatory actions.

It's time to send Wall Street mobsters packing. Public banking is needed to encourage the development of humanity and democracy - which should be its primary goal anyway.

There is no real financial reform. Only loopholes and more fraud.