J.P. Morgan Chase CEO Jamie Dimon was forced to the market yesterday to pre-disclose a 20% drop in trading revenue. That was the real story. What everyone talked about was his rant against Bitcoin and the subsequent market response.
Let it never be said that J.P. Morgan CEO Jamie Dimon shies away from controversy. But, at the same time never forget that this is a man who sits at the literal top of the world.
So, when Dimon rails against Bitcoin and signals to his traders that they need to close their positions or be fired, that makes the headlines. Why? Because, like everything else, there is the narrative that Wall St. wants pushed and the real story.
Dimon was forced to pre-disclose to the market that JPM’s trading revenue for the 3rd quarter would be down 20% from previous guidance. Moreover, the firm would be suspending all further trading revenue guidance.
This is a clear signal that Dimon still has compliance issues within his firm which has a history of using its massive trading desk to not only manipulate markets but irresponsibly trade them.
Rant against the Past
Let’s not forget for a second that Dimon was in charge during the infamous ‘London Whale’ incident where JPM trader Bruno Iksil cornered the IG9 market and then couldn’t exit the trade.
Iksil became trapped in the same way that the European Central Bank is currently trapped with its sovereign debt buying spree known as Quantitative Easing.
To understand where the ECB is headed, you only need to look at where Iksil went. THis is why Except, the difference here is that who will bail out the ECB and then which regulator will fine them for being ‘irresponsible?’
In Dimon’s rant about Bitcoin yesterday he slammed the cryptocurrency market saying:
“You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart,” Dimon said. “It won’t end well.”
Uh, Jamie I hate to break this to you but that is exactly what the central banks and fractional reserve banking system you are a systemically-important member of does.
Every day. Millions of times a day.
Dimon saying this and the braying jackals in the financial press repeating it far and wide without a hint of irony is a clear sign to me of desperation. It was intended to induce downside volatility during a particularly vulnerable moment in the markets.
Timed perfectly with a bounce in the U.S. dollar, Bitcoin, Ethereum, Gold and the Euro were all hit hard yesterday while stocks rallied to all-time highs.
Rant Against the Future
Dimon’s rant is one for the history books. It is the clearest example one could ever find of of a major market player publicly talking his book. It distracted everyone from the real problems J.P. Morgan is facing, namely that there is less money sloshing around for them to go around bullying markets to boost the quarterly P&L.
That money leaked away from his control and it’s off in a different part of the digital economy. And that digital economy is the future of markets. Dimon knows this. That’s why his firm unsuccessfully attempted 175 times to secure a blockchain-based patent.
See you at the Auto Show, Jamie.
In the end, this is simply another in a series of bearish headlines and coordinated liquidations designed to move a competing asset to the U.S. dollar. It’s a cheap scare-tactic to warn the little folk from getting a piece of what could be the greatest wealth transfer in the history of the planet.
Only this time it’ll go from rapacious sociopaths like Jamie Dimon to those they stole it from through inflation and usury over the past two centuries, us.
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