Bob Chapman, financial expert and author of the International Forecaster newsletter, joined us on my radio program Friday night to talk about Goldman Sachs cashing out 44% ($4,680m) of its shares in BP Oil in the first quarter of this year, just ahead of April’s oil rig explosion in the Gulf of Mexico. Was it simply good luck in their timing? Or was there more to it than that?
I asked him about a story that had gone viral earlier last month in which it was reported that Goldman Sachs had placed shorts on TransOcean (oil rig owner) stocks days before the explosion. I couldn’t find the original source. Bob said he couldn’t find any either. Here’s what he did tell us about Goldman Sachs and his theory on what’s really going on:
“They also (Goldman Sachs) also sold 43 percent of their position in BP and I suspect — although we’ll not know probably ever — that they probably used derivatives to short the other part of their position. And they probably — if they didn’t do that, they shorted against the box, which freezes your position. And so they knew something was going down. And so didn’t Halliburton. And Halliburton bought — about three weeks or so before the event… they bought out a company that specializes in taking care of problem wells, although Halliburton’s perfectly capable of doing that. And so there’s a lot of question for complicity.
Freezing a position?
“They go to a market maker, like an insurance company, or another bank or a brokerage house and they say ‘look, we want to buy some derivative puts to freeze our position in British Petroleum, so what kind of a deal can you give us?’ And so the party comes back and says ‘well, we can give you this kind of a deal’, and they accept it and it freezes the position. And it’s done over the counter so nobody ever sees it. …It gives you the advantage of not being exposed to any gain or any loss. And you can also do it with stock. You can short an equal amount of shares that you’re long and freeze the position. And that’s what I think they did.
“And Goldman, back in October along with JP Morgan Chase and HSBC and Citibank and Deutche Bank, they all went long the dollar, and they went short the Euro. So they knew what was going on.
And it’s the same case here. They knew ahead of time. Halliburton knew as well. I mean, this was a planned event. This didn’t just happen.
Asked upon what he based that, he replied,
“A chain of events, and backing into a conclusion. I mean these things aren’t coincidence. There is no such thing as coincidence.”
Was it strange that Obama said just a couple of weeks before the explosion that he would be open to offshore drilling? Was it nothing more than window dressing? As if he knew he could get away with saying that because he knew what was to come?
“I think so. Another thing too, if you noticed for the past week, the president has been pushing carbon taxes. And that’s a reflection of the concept of global warming. At the Trilateral meeting two weeks ago in Brussels, they said that it’s a dead issue. People are not going to put up with taxes based on carbon.
…that was one of their goals in the early meetings of the Bilderberger group, which is meeting now in Catalonia… they want to continue to fight for these kinds of taxes and global warming when the whole thing had been exposed as an absolute scam. These people just don’t give up. They think they’re the masters of the universe and they can do anything they want. In fact a number of people did not attend the meeting because there’s been so much publicity, finally!”