In an interview with Russia Today (RT) on November 14th, economist and trends forecaster Gerald Celente became the newest victim of the MF Global bankruptcy when his gold futures account was taken by trustees, and he was hit with a margin call within days of the corporate shutdown.
Interviewer for RT – “I have to ask about this MF Global thing, because it appears you were caught in the crossfire.”
Gerald Celente – “I really got burned, I got a call last Monday, I have an account with Lind-Waldock, and I have been trading gold since 1978, and I have a very simple strategy. As you well know, I’ve been very bullish on gold for many years…”
Gerald Celente- “So I was building up my account to take delivery on a contract, and I got a call on Monday, and they said I needed to have a margin call. And I said, what are you talking about, I’ve got a ton of money in my account. They responded, oh no you don’t, that money’s with a trustee now.” – Russia Today
(See video to the left of this article for full interview)
Gerald Celente's trouble, along with clients who lost millions of dollars in holdings when MF Global allegedly used their money to invest for the company in toxic Euro assets, is a micocosm of the global financial system that no longer distinguishes between individual accounts, and corporate accounts. In fact, investment banks such as Goldman Sachs have been caught selling financial instruments to their clients, while betting against their own customers through their own corporate accounts.
Before its bankruptcy declaration, MF Global was a primary dealer for the Fed in buying and selling Treasuries in the market. They held a special status with the central bank, primarily due to a relationship with former Goldman Sachs CEO and New Jersey Governor Jon Corzine.
Gerald Celente has been a staunch advocate of physical possession of gold and silver, and not ownership through paper instruments such as ETF's. Unfortunately, Celente was burned by the advice he gave to others, even though his intention was to use the paper investment as a mechanism to receive delivery of physical gold when his December contracts were up.
MF Global's demise and theft of customer assets caught a big fish in the crossfire when trustees took money and holdings from Gerald Celente futures account, and it will now be up to the lawyers and regulators to see if he gets back his money back before the December gold delivery due date.
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