The CFTC IS the watchdog for abuse in the options and futures markets and Friday April 12-Monday April 15 were beyond obvious as to what was done. Reportedly 1,000+ tons of paper Gold were sold in less than 8 hours of trading. This is 32 million ounces. This is 40% or more of ALL Gold produced on the planet in 1 ENTIRE YEAR! “Who” in their right mind would sell in this fashion? Who in the world even holds this amount of Gold? The answer in case you are wondering is NO ONE (other than central banks and THIS may not even be true any longer)!
Forget completely the nuts and bolts, look at this through the eyes of an 8 year old. The price of the physical metal is different than the futures prices. ONE of these two must be wrong by definition as they cannot both be correct. The “price” is and has been “set” by the paper markets. The “tail is wagging the dog”, this is more than obvious. The futures markets were set up originally to create liquidity and facilitate suppliers hedging and speculators speculating. This has gone on for years now (at least since 1996). Obviously “something” isn’t right when one market has one price and the other another price so …what to do? Just sit back and wait…for the inventories to be wiped bare.
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Ted Butler: CFTC- The Worst Regulator Possible
By SD Contributor Ted Butler
We’ve just crossed a few important anniversary dates that relate to silver that taken in proper perspective point to a disturbing conclusion. That conclusion is that the US commodities regulator, the CFTC, has done more public harm than good over the past few years. Simply put, the public and our markets would have been better off had the agency not been run by the commissioners in place, specifically including Chairman Gensler and Commissioner Chilton. In fact, rarely has so much promise for genuine regulatory reform been squandered as badly as has been the case over the past few years.
I single out Gensler and Chilton because they were once the good guys on the Commission or the only ones pushing for position limits. Since they have allowed position limits, the silver investigation and the unprecedented price declines in silver to fade into the sunset unresolved, they must be held to the greatest standards of failure. In a very real sense, Gensler and Chilton have done more harm as a result of first championing the important issues and then abandoning them. [Read more...]
Bart Chilton Says CFTC Needs to Look into Bitcoin- While Latest Silver Manipulation is Ignored!
How does Bart Chilton and the rest of the regulatory crew explain the 2013 instant replay of 2008? Price gets crashed from “sellers” yet what supposedly was sold can only be bought at a 30% premium…IF you can find it at all? We are still waiting…and now “Bitcoin” is on the front burner I’m sure that Silver (and Gold) will not be addressed until AFTER exchange defaults occur. For that matter, they won’t be reported on after the fact either because we will then have bigger, MUCH BIGGER problems facing us…like where the next meal will come from. [Read more...]
Legal Outline for Suit Against CFTC For Failing to Complete Investigation on Silver Manipulation
Because of the recent furious decline in value of real and paper silver, and the belief by many that manipulation is the major (if not only) cause, I have been asked what might be done to force the non-regulating regulator, the CFTC, to begin regulating in regard to the existing concentration.
After studying the silver futures market since the days of C.V. Myers—and focusing on it intensely for the past several years—my opinion is that if there has been, and currently is, a concentration in the silver market, it would constitute not only manipulation but consequently the disruption of market integrity, and the prevention of fair competition among silver investors, speculators, hedgers and others. Certainly, the esteemed Ted Butler has made an overwhelming case that there has been, and currently is, such a concentration/manipulation.
In light of the CFTC’s foot-dragging in concluding its unreasonably delayed investigation and/or required report concerning concentration /manipulation, I have been considering how to break the self-created CFTC log-jam that has caused incalculable financial losses as a result of the uncertainty engendered by the apparently languishing investigation.
As I will fully develop below, a lawsuit is feasible that will force either the Director of Investigations and/or the Commission itself to disgorge the Report of the CFTC’s four-year-plus investigation into concentration in the silver futures market. The hope would be that the investigation’s conclusions, either way, will allow investors, speculators, hedgers and others to make rational decisions, unlike currently when the concentration skewers free market choices and decisions.
Below is only the outline for a lawsuit, not the Petition itself.
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Ted Butler: A Moment of Clarity on Silver Manipulation
By Ted Butler
Every once in a while, someone utters a statement that suddenly galvanizes the issue at hand. That’s the first thing that came to my mind when I read of the US Attorney General’s words before a Senate hearing this week.
In a blinding moment of clarity, the answer to the whole “why isn’t the CFTC doing anything about the silver manipulation and JPMorgan’s stranglehold on the price” question flashed for all to see. Mr. Holder’s words couldn’t be any clearer and fit perfectly with the now-consensus view held by those who know that JPMorgan is manipulating the price of silver. The reason the CFTC is allowing JPMorgan to continue with their illegal behavior in silver is because the bank is too dam* big and powerful to rein in for fear of the unintended consequences. [Read more...]
CFTC’s Chilton: We’ve Witnessed Blatant and Brazen Monkeying with the Benchmarks
CFTC Commissioner Bart Chilton spoke Thursday before the International Roundtable on Financial Benchmarks in Washington, DC.
Chilton spoke out against last year’s LIBORGATE scandal, stating that We’ve witnessed blatant and brazen monkeying with the marks, and that When marks are manipulated, it affects us all.
While we couldn’t agree more with Mr. Chilton that benchmark manipulation affects us all, we also believe that so does manipulation of interest rates, gold, silver, the dollar, and every other commodity and currency market.
Perhaps the CFTC should focus on investigating manipulation crimes in progress, rather than the scandals that have already previously broken.
CFTC’s Bart Chilton: Banks Must End ‘Brazen, Flagrant’ Manipulation
The CFTC’s Bart Chilton was on CNBC’s Squawk Box today, and stated that TBTF banks must end their brazen, flagrant manipulation.
Chilton was referring to LIBOR manipulation, and specifically RBS, who has just been fined over $600 million for their role in LIEBORGATE.
While we couldn’t agree more with Mr. Chilton, we are all still waiting to see the CFTC address the alleged silver manipulation in the same manner as the already broken LIBOR manipulation scandal…rather than drag their supposed investigation into its 5th full year. (particularly after Mr. Chilton personally advised the Doc in July 2012 that he expected a resolution of the CFTC’s silver investigation and an announcement by September 2012)
Chilton’s full interview and rant on how the banks must end their brazen, flagrant manipulation is below:
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Bankster Backer Jill Sommers Resigns From CFTC
CFTC Commissioner Jill Sommers, who is famous for voting in favor of TBTF bankers interests nearly 100% of the time has just announced her resignation from the CFTC.
In other news, The Vampire Squid and The Morgue are duking it out vying for an alumni to replace Sommers.
Full statement below: [Read more...]
CFTC Announces Real-Time Public Reporting of Swap Transactions and Swap Dealer Registration Began December 31, 2012
The CFTC has announced that live reporting of Swap transactions and swap dealer registration began on December 31st 2012.
Our banker friends had lobbied extensively to delay or cancel the implementation of these requirements of the Frank/Dodd legislation, whining that they would be too costly to enact. In reality, the cockroaches did not wish to have the light of day shining in the corner where they congregate.
Jamie & Lloyd cannot be pleased. Wasn’t lobbying the regulatory agencies part of Blythe’s new job description? [Read more...]
Harvey Organ: CFTC Can’t Release Findings of Silver Probe- End Game is Being Played Out, LBMA & COMEX Near Default!
Source: FT.com
The Doc sat down with Harvey Organ again for the 3rd and final interview regarding the recent massive cartel intervention in the gold and silver markets post the QE4 announcement, the fiscal cliff, the CFTC’s silver probe, and the unprecedented 20 million oz of silver still standing for December delivery.
Harvey stated that the CFTC’s silver probe has concluded, but they can’t release the findings because it would collapse the entire financial system! Harvey also stated that China is ultimately the big gold & silver short, and stated that the nation is draining massive amounts of physical metal East.
Organ also made the shocking allegation that COMEX is settling allocated delivery & storage requests with paper metal, and stated that he no longer has any faith whatsoever in the numbers reported in the COMEX gold and silver inventories.
Harvey gave hope to PM investors who have endured years of cartel interventions in the gold & silver markets, stating that the end game is being played out, and that extreme physical shortages of silver could end the manipulation once and for all, possibly as soon as March!
Full MUST LISTEN 3 Part Interview Below: [Read more...]
Gold & Silver COT Report 12/28/12: Commercials Cover 43 Million Ounces of Silver Shorts into Price Smash!
By SD Contributor Marshall Swing:
Gold & Silver COT Report 12/28/12
Commercial longs rose a huge 3,955 on the week and covered an even larger 4,676 shorts to end the week with 48.07% of all open interest, an imperceptible decrease of -0.02% in their share since last week, and now stand as a group at 233,540,000 ounces net short, which is a massive decrease of over 43,000,000 net short ounces from the previous week!
Historically, with silver now at $30 and the commercial net short position at about 233 million ounces, the last time their net short position was similar was the closing of September 11 yet price was about $33.50 Couple that information with the massive long buying by the commercials and I feel safe to say the bottom is in for the short term.
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Ted Butler: My Worst Fear- CFTC Confirms it Doesn’t Understand Silver Manipulation
Submitted by Ted Butler:
Recently, I have received a good number of emails containing conversations between readers and CFTC Commissioner Bart Chilton about the allegations of a silver price manipulation because of the large concentrated COMEX short position held by JPMorgan. Chilton had previously led the move to begin the current silver investigation in September 2008 and has always been quick to respond to those writing to him, a rarity for high officials. I couldn’t help but notice that Commissioner Chilton had recently begun to say things that seemed to try to explain away the allegations of a silver manipulation, much different from his former stance of promising to look into it. I found this change disturbing and it has influenced my thinking that the CFTC would never do anything about the silver manipulation. One particular response from Chilton to a reader prompted me to write to the Commissioner myself (aside from sending him all my articles) -
In simple terms, Commissioner Chilton’s response to the reader confirms my worst fear – the reason the CFTC hasn’t moved against the silver manipulation is that they don’t understand it. Even though the agency publishes remarkably detailed and accurate data on concentration in their weekly COT reports, they apparently don’t comprehend what it is they are publishing. As a big believer in the premise that recognition of a problem is 50% of the ultimate solution; I also believe that if a problem is not recognized, it is unlikely to be remedied. I’ve always considered Chilton to be one of the “good guys” at the Commission, so it is quite disheartening to see him so misinterpret his own agency’s data.
This is no small matter. The CFTC’s main mission is to guard against price manipulation, the most serious market crime possible.
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