Fighting Back

Fri, Jan 25, 2013 - 12:20pm

If you're depressed and despondent over the price action in the metals, don't be. It's all simple, option expiry nonsense and it will get better next week. Besides, I have some happy news for you today...The Good Guys are fighting back.

You'll recall that late last year, the U.S. District Court in New York dismissed the civil suit for silver manipulation against JPMorgan. At the time, The Court granted the plaintiffs 30 days to re-file. Today, I'm happy to share with you that they, in fact, have re-filed and are quite optimistic about their case going forward.

First up, here's a link to the summary written by Turdville Attorney General CALawyer in the days immediately following the dismissal. You might want to review this again before going forward.

Upon receipt of the filing yesterday, I once again sent it off to CALawyer for his opinion. Time was short so he was only able to reply with the email below. We are all in his debt for taking the time to review it. Again, CALawyer, THANK YOU!

Hey Turd:
This is my quick take. I read the Motion for Leave to Replead. It is very standard, and should be granted. Routine pleading, nice summary. The defense will oppose, claiming that even with all the new proposed facts, the new facts do not make a difference and thus, the Motion for Leave to Replead should be denied. It is a very low hurdle for Plaintiffs, and the Motion is almost certain to be granted, based on the new facts from the Proposed Second Amended Complaint. My read of the proposed new complaint is that this should be enough to make out a case. That may or may not be enough to get discovery launched, but the absolute last thing the defense wants is an army of Plaintiff attorney's scouring through the JPM documents. No TBTF bank wants that, ever. I hope, but I do not know, that the court will grant discovery on this based on the showing of alleged facts from the new complaint, though.

For example, look at this new allegation, at paragraph 137. I like this quote a lot:
"e. As a sophisticated and large market participant as well as a
market maker on the London market and clearing member of COMEX, JP Morgan
well knew each of the foregoing facts as they occurred. By selling in the small
COMEX market, JP Morgan knew that it received lesser sale prices because it had a greater depressant effects on prices. Thus, JP Morgan repeatedly and
uneconomically incurred additional transaction costs in order to sell at the lower
prices it caused on COMEX. JP Morgan thereby intentionally acted contrary to the
conduct of a hedger by repeatedly incurring greater transaction costs. It did so in
order to depress prices."

This allegation is tight, and makes out a compelling case, because it finally shows that JPM's behavior is illogical and hence, that leaves only the conclusion that it was manipulating prices. The distinction between the Comex and LBMA as far as price, volume, etc., is critical. Rhetorically, then, the obvious question that is asked, "Why would JPM hold a large short position on Comex to hedge when hedging on Comex cost more than on LBMA?, is then answered: "Because it wanted to manipulate prices despite the costs to do so because it made money from depressing prices, which ultimately means it was not hedging at all, since JPM would not hold a hedge that lost it money when it could hold the same hedge on LBMA without losing money."

I like the substantial allegations at paragraph 137 a lot. This could get real interesting if discovery is allowed. 
That decision is the next real test, not the next motion to dismiss.
Thanks for letting me weigh in.
Anytime you need something my friend, just ask.


CALawyer, Esq. Attorney General de Turdville

OK, with that, the documents to review are below. The have been filed with the court and are fully public. At this point, we'll need to let the process run its course so no need to get carried away today. However, I felt that it was important for you to know that The Good Guys are continuing the fight on your behalf. Wish them well and Godspeed.



Second Amended Complaint in JPM Silver Manipulation Civil Case by Turd Ferguson

About the Author

turd [at] tfmetalsreport [dot] com ()


Jan 25, 2013 - 12:23pm
Jan 25, 2013 - 12:27pm

Nice.  Let's hope something

Nice. Let's hope something comes of this, though I won't hold my breath.

Jan 25, 2013 - 12:28pm

May 2013 be an unlucky year

for JPM.

oh please, oh please.......

Jan 25, 2013 - 12:29pm

Congrats philly

Damn speed readers!

Jan 25, 2013 - 12:34pm


He expresses my views exactly

Fuck Off


Jan 25, 2013 - 12:34pm

down but not out

The good guys always come back somehow!

Here is Jamie Dimon dismissing the silver-bugs, but we know how this ends.

Jan 25, 2013 - 12:35pm

You tha man CA Lawyer!

Thanks for this post TF and Cal Lawyer

Jan 25, 2013 - 12:36pm
Jan 25, 2013 - 12:36pm

thanks Cal Lawyer ditto

I appreciate your work on this blog!

Jan 25, 2013 - 12:41pm
Jan 25, 2013 - 12:44pm

I am so happy that TA has become useless...

..because the daily chart for silver looks like CRAP.

Jan 25, 2013 - 12:44pm

@ Tmosley

The syndicate looks after its own, but there is usually some useful new info that comes out of the process.

Late edit:

The highlight for me, is watching the politicians, MSM and judiciary, contorting themselves to avoid condemning the guilty, and inexorably becoming visible accessories to the crime. We all know it; let the masses see. Let the whole corrupt edifice be dragged into the light, to be seen to be dedicated accomplices in the banker crimes against humanity. They know a reckoning may come, and that in doing their duty to the devil, that they now need to spend their lives looking over their shoulders.

Bring it on! 

Jan 25, 2013 - 12:49pm

DEPRESSED? Almost Time To head To The Bar-

The silver bar, that is. When you're depressed, why not head directly to where the lights are bright and the gleam welcomes you?

Happy Weekend Fellow Faithful, Church of Silver & Gold, Truth & Justice, pastor Ferguson Presiding

Jan 25, 2013 - 12:52pm

Thanks CAL

I would give you a hat tip - but I don't know where.

Jan 25, 2013 - 12:52pm


The dollar, oil, gold, silver, and snow coming down. At least the oil coming down is good. smiley


Jan 25, 2013 - 12:55pm


Thank you Cal, you are a truely valuable discovery in Turdville.

If it goes forward, this could be the biggest silver discovery in all of history!!

Go GATA! We're all behind the good guys.

Loud Noises
Jan 25, 2013 - 12:59pm

Its encouraging to see that

Its encouraging to see that they are getting better at articulating the argument. This battle doesn't necessarily need to be won in the courts if it can win the minds of the people.

Jan 25, 2013 - 1:02pm

Fed Balance sheet expansion

Since gold is nothing more than a benchmark.....a canary in the coal mine.....the mere fact that gold is lower/range bound while the balance sheet is exploding is evidence that manipulation is in full effect. For otherwise it would be in absolutely no one's best interest for the price of gold to be down/rangebound.....Gold not indicating the accurate value of paper currencies is like a gas gauge not indicating how much fuel you have in your gas tank... even a moron would know your gas gauge is obviously broken........ but NO! not with gold! Nope....if you believe that, you're obviously a nutbag conspiracy freak..

Jan 25, 2013 - 1:08pm

Which Country Doesn't Mind A Strong Currency...???

Which Country Doesn't Mind A Strong Currency...???

January 22, 2013 4:11 PM

With the world drowning in debt, there is rarely a dull year in finance. 2012 will go down in history as the year when a politician, Shinzo Abe, campaigned specifically on the platform of weakening his voter’s currency. I’m not sure if that has ever happened before.

Think about this for a second. You own Yen. You can use your Yen to buy all sorts of products from overseas—everything from imports to foreign investments. Your Yen make up your savings. Then you suddenly decide that you will vote to lose over 10% of your currency’s buying power. That’s just unheard of. Who would rationally want to agree to such a thing? Who would vote for a candidate who would endorse such a thing? Of course, big Japanese corporates may want this. Thinking outsiders would say that this is Japan’s only hope of competing with China and Korea. Economically focused Japanese probably realize that this is practical. However, when you go to the voting booths, do you want to have 10% less (and counting) of net worth? 2012 is the year that a country of very educated people decided that they would sacrifice their net worth in exchange for a weaker currency. Even more importantly, the Japanese allowed this to become a decisive election issue. If Japan can do it, everyone can. The race to the bottom is on—it won’t be pretty.

race to the bottom

This brings up a very strange question—which countries benefit from a strong currency? In the past, you could say that resource economies would want strong currencies. If you export oil or some other commodity, you would want your currency to be strong so that you can use your export earnings to buy finished goods. At least that used to be the logic—not anymore. Everyone is scared of Dutch Disease. Just look at the Middle Eastern kingdoms that are stoking inflation by pegging their currencies to the US Dollar. Look at Chile and Peru accumulating foreign reserves to stop their currencies from appreciating. Most resource countries are now scared about strong currencies harming domestic industries.

What about countries that have strong banking center industries? In the past, Switzerland would always want a strong Franc. The Franc used to be thought of as being as "good as gold"—not any more. Switzerland has done more in terms of money printing than any other country. They’re scared that a strong currency will harm exporters. The Swiss are in the process of surrendering the dominance of their traditional banking industry for the benefit of some chocolatiers.

What about trade facilitators? Hong Kong is defending a US Dollar peg that is creating the mother of all property bubbles. Singapore’s practice of using a basket of currencies has practical uses in terms of balancing the currency in terms of trading partners, but in a race to the bottom, Singapore will sink with everyone else.

ben prints money

So what sort of country would ever want a strong currency? I guess; you should invert the question, what does a strong currency get you? It gets you political power. It lets you dictate the terms of trade and the terms of foreign aid that you dispense. You can subsidize your allies with a strong currency and you can bring enemies into your circle of influence with it. A strong currency is the ultimate tool of the country with expansionary political goals.

Who has political goals? China is an obvious choice and I can see the Yuan continue to appreciate. That said, they cannot allow the currency to appreciate too much—China is still a country dependent on export trade.

Who imports lots of finished goods, doesn’t export much except raw commodities and has expansionary geopolitical aims? How about Russia?


Russia is generating huge foreign currency reserves. Russia exports mostly raw commodities and isn’t that concerned with Dutch Disease. Finally, we all know that Putin likes to throw his weight around. Putin has played energy politics for the past decade and held parts of Europe under his power. He is intent on being more forceful in certain former Soviet possessions. With Europe on the ropes, it may be a perfect time to use a strong currency for selective politicking.

As I scan the globe, the Russian Ruble is the lone currency that I can see appreciating. It doesn’t particularly hurt Russia to have a strong currency and it can play into the hands of the leaders. Will it play out that way? I’m still exploring the possibilities, but I’ve taken an initial long position while I learn more. Besides, it pays a nice carry while I work to figure it all out.

Gold is the largest component of my currency basket—which is made up of an ever-changing list of paper currency longs and shorts. While this isn’t the first time that I have added the Ruble, I have a hunch that this is the start of something bigger for me. The Russians are increasingly getting their act together and in a race to the bottom, they may be the only ones who decide not to get involved in that race.

El Gordo
Jan 25, 2013 - 1:09pm

Knowledge is power

Thanks to Turd and CA Law for providing some to all us loyal citizens of Turdville.

ballyale ballyale
Jan 25, 2013 - 1:12pm

Incase you missed it.

Re: From Kuppy: Which Country Doesn't Mind A Strong Currency...??? We're thinking along the same lines? Here's my morning post on TFMetals board.

Conclusion: A rising yuan backed by sufficient gold, cheap gold at that, is what the City of London Banksters want, imo. They, themselves, are accumulating as much cheap gold and silver as they can for their own personal vaults. They know that at these "spot rates" and China's insatiable and growing desire to get as much PM's as possible, the West's Gold and Silver reserves will soon run out. The CB's of London and the US are probably empty already.

I still don't understand the contradictory idea that by selling one's gold, it will prop up the currency, while at the same time they want to devalue the currency? It can only be a mirage of some sort for the reason stated above.

The Banks or their higher up personnel want to devalue both the Dollar and the price of gold/silver in order to buy as much as they can before it, the PM's run out of circulation, before the much anticipated "Reset" occurs and they make many times what they bought their PM's for. Now that makes sense to me.

I think you are absolutely correct. I have been writing for years now that after China had established, first its mfg. base, it would then create an internal domestic market such that it wouldn't be so supportive of its export market. Its pretty much done those two things. Now, it wants to strengthen the yuan and this is a first step.

What I find fascinating is that it a GB Pound/Yuan swap that's being considered. The City of London is the international gold center. The Chinese want to get as much gold as they can to underpin the value of the yuan.

As commodities rise and China's internal appetite for them and to import them exceeds or balances the necessity of continued increasing exports, then commodities will be cheaper for China with a rising yuan.

The Chinese will be able to buy foreign gold and silver for less with an increasing yuan as the years go on, esp. vis a' vis other countries who are frantically attempting to devalue their currencies, thus selling their gold and silver at lower and lower real nominal i.e. purchasing power prices.

The Chinese are laughing all the way to PBOC, the only one that's probably still solvent.

They've played the West like a rare violin for more than a decade. Unless one takes up the argument that the Western Elites profited by these moves inordinately at the expense of their countries and peoples, they are either brilliant for their own ends, incompetent fools, or traitors. I don't think that they are incompetent fools.

Here's a link that Turd uncovered that supports our theses. ca

Jan 25, 2013 - 1:20pm

today a bummer kind of


got notice my 2013 ASE's were shipped today on schedule I requested so I arrive home before they do.

I have kept my core paper positions in PSLV and PHYS-the other day cut my NUGT--still not fun. Thinking about when to buy back NUGT, and open USLV and UGLD.

Opening some GLD and SLV Feb bullish call spreads -figure getting close to end of this round of crap. Not a lot of $$ put in.

Can someone private e mail me with Jim Sinclairs birthday, TIA.

Different day, same crap. One day, probably sooner than we imagine, this part will be gone. I wonder what free markets woudl look like.

3.7 Bil of POMO today.

Jan 25, 2013 - 1:24pm

@ CALawyer & Mr. T

I so appreciate your wonder input of information. You are a true well as a statesman in the community...

And Mr.T, thank you for the community platform you have provided for us....

Jan 25, 2013 - 1:43pm

Remember what Volcker said

Remember what Volcker said in his memoirs:

"That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake."

Have central bankers learned from mistakes?

Jan 25, 2013 - 2:01pm

Options expiry shenanigans and what it really means for US!!!!!!

From RHODY, an old Kitco poster. I thought this important enough to share....It is why some of us can't just watch this corruption and dismiss it as temporary...It is not something to dismiss; it is a process that will infect our children and our children's children with poverty and chaos:

To wit:

This is utterly damning information. 8375 options represents 837,500 ounces of paper gold. If gold was to close out Jan. 28th at $1701, the banks would need to cough up $837,500 to the holders of those options. To block that tiny exposure, they have held gold below $1700 for at least three weeks. During that time the mining sector produced 4.6 million ounces, and was forced to sell THAT for less than $1700 per ounce. 5 weeks ago gold was $1795. So, in the past 3 weeks, the mines have had at least $30 per ounce times 4.6 million ounces of production subtracted from their operations (a total of $138 million) so that banksters could save a $837,500 loss on options. You go back to 5 weeks ago when the gold price reached $1795 and the mines have had to sell 7.35 million ounces at prices that averaged about $1730 or $65 under where they should have been, just to walk down the price below that option critical $1700 strike price. That means the mines had $477 million SUBTRACTED from their bottom lines by the paper machinations of a few banks trying to save $837,500 in option losses. NO WONDER THE MINING SHARES ARE IN THE DUMPTSTER. These are the losses just to the miners. About 20% of the physical gold market is recycled scrap. These people also had a hundred million or so subtracted from what they SHOULD have received by selling that gold. The point I am trying to make here is that ANYONE selling real gold at the paper price is being massively cheated. Want to insulate yourself from the tempatation to sell real gold. Realize that .33 grams of gold should equal a day's average labour. Right now a third of a gram of gold is about $17. When that third of a gram of gold is worth $150, you can sell your gold, as that's fair value. Hoard your gold, the present market is an obscene fire sale.

On top of all of the above, there is another grouping of options totalling 6817, totalling 681,700 oz at $1675-$1680. Clearly the banksters are after those option holders as well since gold has been hammered down to $1660 over the past few days. Using the same arithmetic, in just the past three days in which the gold price has been hammered down an average of $15 the mines produced about 630,000 ounces of gold now worth $15 per ounce less than it should have been worth and that totals a loss to the mining sector of $9.5 million. If these options had remained in the money at say a gold price of $1681, the payoff to the option holders would be between $5 and $1 per ounce or say an average of $3/oz, worth about $2 million. To save themselves $2 million on options, the banksters STOLE $9.5 million from the mines and another $1.8 million from the scrap gold dealers by suppressing the paper gold market.

Don't get me wrong. I don't feel sorry for the cheated option holders. If you deal in paper gold, you get what you deserve. I don't feel sorry for the scrap dealers either. Many of them buy in gold for a small fraction of even the spot price, thereby cheating further the people they buy from. No, I feel sorry and enraged by the loss to gullable gold shareholders, and holders and sellers of gold in the general public. Eventually the public will clue in. They will react by turning their backs on the SYSTEM and hoarding their gold. That's when the system dies.

What's my point? The banks are manipulating markets (all of them) to steal nickels while the cost of the manipulation costs everyone in society at large, Dollars. The public is beeing fleeced and the government just sits by and lets it go on.


Oh, and one more thing...Am I the only one who thinks Rickard's statement on the Lyster interview about paper gold NOT reacting was a function of uneducated investors at the COMEX? That's a paraphrase, of course, but accurate....He HAS to know better than that....It did not react very strongly when BEN the Dumper announced hyperinflation a few months ago....So to my jaded thinking all this means is that the suppression effort is of biblical proportions and we may be seeing a lot more CONsolidation ahead of us.....I have been watching these markets long enough to remember how paper gold reacted out of New York when the Washington Agreement issue was announced.... But when they announce hyperinflation and bond monetization, paper gold barely moves.... Oh, my forcast for 2013 for gold and silver both: double tops then big corrections......followed by,,,,guess what(?) CONsolidation....



Jan 25, 2013 - 2:12pm
Charles S. Hamlin Mickey
Jan 25, 2013 - 2:16pm

@ Mickey

In regards to Santa's birthday; I don't know the exact date, but it is toward the end of March (28th I think).

The Watchman
Jan 25, 2013 - 2:17pm
Jan 25, 2013 - 2:21pm

@ Charles....

Jim Sinclair said NOT to publicly publish his birthday, as he doesn't want the banks, who are killing real wealth with machine gun algos, are all trying to divine his intent and predictions...

Please kindly take that birthday off in your post via the "edit" button. Loose lips sink ships, friend. Message it to him privately.

Jan 25, 2013 - 2:23pm

Why would anyone want to stop the silver manipulation here?

Yes, a crazy question but seriously! The more they manipulate silver, the faster these crooks will deplete the worlds silver supply.... right? I used to hate this manipulation but now Im welcoming it with open arms. I only care about the premiums on physical now. Also, the paper price of silver is on a platform owned by the same crooks that manipulate it. Say we are successful in exposing these crooks... then what? Nobody will go to jail, it wont be on the mainstream media and the same platform that sets the paper price of silver will still be running and will be manipulated. Ahh... but it all comes down to the physical supply of silver. Everybody knows the government lies about unemployment and inflation but they continue to do it anyways. The same goes for silver. They will go ahead anyways.

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