So Which Is It, Commissioner?
Because I'm just too angry today to stay away.
Last night, while interviewed on camera for the CBC documentary, CFTC Commissioner Bart Chilton said this:
"What we have seen all too often is where you have an individual trader who has excessive concentration - when I say "excessive concentration" I mean concentration that can lead to pushing prices around - and we've seen it in the precious metals. In silver. In gold. And some of the other commodities."
The full clip is below, with Commissioner Chilton's clip beginning at about the 0:30 mark.
This stands in stark contrast to an email exchange that Commissioner Chilton had with Turdite "GoldMania300" just last Friday. Copied below is the entire exchange, with GM3000's email address removed for his privacy.
Fri, Apr 12, 2013 at 9:01 AM
To: bchilton <firstname.lastname@example.org>
are you looking at the gold and silver market today. what does your
boss think about the manipulation?
Chilton, Bart <BChilton@cftc.gov> Fri, Apr 12, 2013 at 9:12 AM
We are looking.
Fri, Apr 12, 2013 at 9:33 AM
To: "Chilton, Bart" <BChilton@cftc.gov>
why is there always looking but nothing being done or said about the progress?
Chilton, Bart <BChilton@cftc.gov> Fri, Apr 12, 2013 at 9:53 AM
Well, if we find something we do something, although of we are
investigating, we aren't allowed to discuss it. But we do look, in
detail at trades--particularly large positions. Many times, however,
what we see isn't "right" in my book, but not against the law. We see
a lot of HFT cheetah traders in the pm markets, for example. Without
saying anything I'm prohibited from saying: what we have seen ain't
what some in the pm community suggest. There isn't currently one large
firm with huge short positions trading to keep prices down.
Finally, when prices rise, we never hear a peep. When they go down, my
mailbox fills. I understand that, and I know it is frustrating to
folks. I wish we would explain some of this in a public conference
call--perhaps regularized. Even take questions from folks. Again, we'd
have to be careful about not giving out trader info, but it could be
OK, so Commissioner Chilton is now on the record stating that: "What we've seen is all too often an individual trader who has excessive concentration...". The only plausible metrics that Commissioner Chilton could be using to determine this would be the Commitment of Traders Report and the Bank Participation Report, both of which are regularly supplied and updated by his own agency, the CFTC.
In the email above, Commissioner Chilton is now on the record stating: "There isn't currently one large firm with huge short positions trading to keep prices down". But is this truly the case?
Industry expert and longtime silver analyst Ted Bulter disagrees. Last week, in his weekly summary for his subscribers and using the CFTC-provided data, Ted estimated the current JPMorgan naked short position to be approximately 19,000 to 19,500 contracts. Remarkably, this number is half of what Ted reported just two months ago when the JPMorgan naked short position had grown to 38,000 contracts. At that time, this represented nearly 37% of the entire short side of Comex silver futures, once spread contracts were deducted from the total. Most rational people would conclude that 37% of one side of the market represents an "excessive concentration". Even though JPM has since been able to cover nearly half of the position, it no doubt continues to be "excessive".
So, which is it, Commissioner Chilton? How do you define the "excessive concentration" you freely mention in the documentary? Which data are you now utilizing to claim that there "isn't currently one large firm with a huge short position". How do you reconcile that with the information provided by Ted Butler? Is it simply that you aren't being honest? Were you deliberately misleading GM3000 when you replied to his email?
The old ways are passing away. Tomorrow will not be like yesterday. The time for truth is upon us. Whose side are you on, Commissioner Chilton. Your constituents demand an answer.