So Which Is It, Commissioner?

463
Fri, Apr 19, 2013 - 12:42pm

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 <bchilton[at]cftc[dot]gov>

are you looking at the gold and silver market today. what does your
boss think about the manipulation?

Chilton, Bart <BChilton[at]cftc[dot]gov> Fri, Apr 12, 2013 at 9:12 AM
To: xxxxx
We are looking.

Fri, Apr 12, 2013 at 9:33 AM
To: "Chilton, Bart" <BChilton[at]cftc[dot]gov>
why is there always looking but nothing being done or said about the progress?

Chilton, Bart <BChilton[at]cftc[dot]gov> Fri, Apr 12, 2013 at 9:53 AM
To: xxxxx
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
done.

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.

TF

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  463 Comments

  Refresh
The Watchman
Apr 21, 2013 - 10:30pm

Latest From Santa:

"We are witnessing history here, and before this is over the physical gold buyers will crush the central planners.”

philipat
Apr 21, 2013 - 10:17pm

@Gold Dog

Two Bitcoin whore, perhaps??

Gold Dog
Apr 21, 2013 - 9:49pm

Bernanke...

....You are a Two-Bit Whore!

Close, but not quite there. Let me sleep on it.

Gold Dog
Apr 21, 2013 - 9:46pm

I keep having halucinations!

Every time I look at Gold and Silver futures the numbers are green for some reason.

And no, I am not in college taking shrooms!

Dog

EDIT- Patriot Family, If I have been a touch salty in my language I would like to apologize. I do know that in referance to the head of the Federal Reserve, using the acrynim of For Unlawful Carnal Knowledge has been a common occurance for me. I cannot say that I won't again but I think I may be able to find a suitable sustitute to call that Two-bit Whore!

The Watchman
Apr 21, 2013 - 7:58pm
Patriot Family
Apr 21, 2013 - 7:39pm

Profanity

I don't mind it so much if it's the same that would be used in person to express a point. It's the relatively anonymous keyboard warriors who use it to goad a reaction that they would never do in person that gets to me. I used to moderate a portion of a paid forum that simply charged a couple of bucks a month for membership. The forum owners knew who every member was - couldn't hide behind login IDs. Things were remarkably respectful compared to the days where free membership was permitted. The discussions could get heated but there was always that limit of knowing the consequences if things got out of hand. Anyway, you weren't the one who went on ignore. Carry on!

AlexCojones
Apr 21, 2013 - 7:27pm

Patriot Family: Time for Civility and a Time for Profanity

I haven't been a member here long enough to know whether TFMR enjoyed more civility than now. People say that also about a bygone era. Not sure if the "Fabulous Fifties" were all that fabulous or the Good Old Days were all that good.

I do use choice 4-letter words when overcome with rage. Then I remember what that fiery radical did to those bankers two thousand years ago, overturning those tables in the Temple, and my few choice words don't seem to carry the same powerful weight. I wonder if that guy was arrested by the local SWAT team?

Patriot Family
Apr 21, 2013 - 7:03pm

The tone around here used to

The tone around here used to be so much more civil. Using profanity in your posts just makes you sound stupid and eager to be confrontational. I never really wanted to use the ignore feature here at TFMR. I've only used it for one person. Unfortunately I just added another - so now if that person has something to say that's actually relevent and useful, I doubt I will be able to see it unless someone happens to repeat it in their own post. Too bad.

I called a local LCS this weekend - I've done business with them in the past. They are a larger retail operation with a solid reputation. Just like everyone else, they are out of stock on everthing except for graded coins, etc.

Hagarth
Apr 21, 2013 - 6:58pm
Mudsharkbytes
Apr 21, 2013 - 6:02pm

Plagiarism…

…at this late state in my life I have decided to return to the local university and earn my DMA degree - don't ask me why.

Anyway, every semester in every class I am presented with a form I have to sign that warns me of the dangers of plagiarism, even inadvertent. If I'm caught, using any idea that is not my own and I don't cite it, I not only fail the class, but I run the real risk of expulsion.

Hell, I used a small quote of the stupid Tro-lo-lo tune in my latest orchestral work, just for fun & to get a laugh, and even though I thought there was no change anybody wouldn't get it, I placed a footnote in the score giving credit just to be on the safe side, that's how serious they take it there.

Copying and pasting the work of others & not giving credit is stealing and lying - trying to convince others they're your ideas. Not cool. Give a source, it's only fair.

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