CFTC Confirms Its Complicity

173
Wed, Sep 25, 2013 - 12:37pm

In what can't be termed a surprise, Reuters reports today that the CFTC is prepared to close it's silver investigation.

In the end, why should this surprise anyone? They've covered up the manipulation for five years. If they were to act now, they would be opening themselves to liability based upon their inaction. All they can do now is cover up and hope that the entire issue slips away into irrelevance.

The institutions of government are hopelessly corrupt. I believe fear know now that we are too far down the path of tyranny and corporate fascism to ever be rescued.

TF

From Reuters: https://www.reuters.com/article/2013/09/25/us-cftc-silver-idUSBRE98O0SR20130925

The U.S. Commodity Futures Trading Commission on Wednesday said it has closed its long-running investigation into complaints about manipulation in the silver markets, and is not recommending charges.
The CFTC publicly confirmed the probe in September 2008. At the time, the agency had received complaints about whether the silver futures contracts traded on the Commodity Exchange Inc (COMEX) were being manipulated.
"Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets," the CFTC said in a statement.

The full CFTC statement is here: https://www.cftc.gov/PressRoom/PressReleases/pr6709-13

About the Author

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  173 Comments

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Dyna mo hum
Sep 25, 2013 - 10:59pm

Cordinated silver purchase....

I'm in. I will do it for the hell of it..We all need to hang together and you know the rest of that story. Say when.

¤
Sep 25, 2013 - 10:57pm

The Exchange Stabilization Fund

I'm pretty sure for those of you who know little or nothing about the ESF that this series of vids will fill in some gaps and provide a moment maybe.

What I have been afraid to blog about: The ESF and Its History_Part 1
What I have been afraid to blog about: The ESF and Its History_Part 2
What I have been afraid to blog about: The ESF and Its History_Part 3
What I have been afraid to blog about: The ESF and Its History_Part 4
What I have been afraid to blog about: The ESF and Its History_Part 5

The Exchange Stabilization Fund: How It Works

Exchange Stabilization Fund
  • The Treasury Department's Exchange Stabilization Fund (ESF) buys and sells foreign currency to promote exchange rate stability and counter disorderly conditions in the foreign exchange market.
  • The ESF is used to provide short-term credit to foreign governments and monetary authorities and to hold and administer Special Drawing Rights.
  • ESF operations are normally conducted through the Federal Reserve Bank of New York in its capacity as fiscal agent for the Treasury Department.

The Exchange Stabilization Fund (ESF) of the United States Treasury was created and originally financed by the Gold Reserve Act of 1934 to contribute to exchange rate stability and counter disorderly conditions in the foreign exchange market. The Act authorized the Secretary of the Treasury, to deal in gold, foreign exchange, securities, and instruments of credit, under the exclusive control of the Secretary of the Treasury subject to the approval of the President.

When the United States adopted the revised articles of agreement of the International Monetary Fund (IMF) in 1978, Congress amended the Gold Reserve Act to provide that the dealings of the ESF were to be consistent with U.S. obligations to the IMF. The ESF also may provide short-term credit to foreign governments and monetary authorities. These ESF "bridge loans" are financed through swaps. That is, the dollars held by the ESF are made available to a country through its central bank in exchange for the same value of that country's currency.

The ESF is used to hold and administer Special Drawing Rights (SDRs), which are assets created by the IMF that the IMF lends to countries that need help to finance balance-of-payment deficits. SDRs were created to increase international liquidity and are permanent resources of the ESF after they are allocated to, or otherwise acquired by, the United States Treasury.

The Federal Reserve and the ESF
ESF operations are conducted through the Federal Reserve Bank of New York in its capacity as fiscal agent for the Treasury. The New York Fed, which executes foreign operations on behalf of the Federal Reserve System and the Treasury, acts as an intermediary for the parties involved when the ESF provides short-term financing to foreign governments. However, it neither guarantees, nor profits from, the loans.

Several times each day, the foreign exchange trading desk of the New York Fed provides current information on market conditions to the Treasury. Whenever necessary, the trading desk buys or sells foreign currencies on behalf of the Treasury, through the ESF, for intervention purposes. Treasury and Federal Reserve foreign exchange operations are closely coordinated and typically are conducted jointly. Operations on behalf of the Treasury are made under the legal authority of the Secretary of the Treasury and those for the Federal Reserve System under the legal authority of the Federal Open Market Committee, the central bank's policy-making group. The ESF does not provide financing to the Federal Reserve System for foreign exchange operations. Rather, the Federal Reserve participates with its own funds. The Treasury reimburses the New York Fed for expenses incurred in carrying out Treasury actions.

Since 1963, the Federal Reserve occasionally engaged in "warehousing" transactions with the ESF. In warehousing a transaction, the ESF sells foreign currencies to the Federal Reserve for dollars and simultaneously arranges to repurchase them, typically within a year. The dollars are immediately credited to the Treasury's account at the New York Fed, and the Federal Reserve invests the warehoused foreign currency, separate from its regular accounts, to earn a market rate of return. Any effect warehousing has on domestic bank reserves is offset by open market operations.

ESF accounts and activities are subject to Congressional oversight. The Treasury provides monthly reports on U.S. intervention activities and a monthly financial statement of the ESF to Congress on a confidential basis. In addition, the quarterly report to Congress by the New York Fed's manager of foreign operations, covering Treasury and Federal Reserve foreign exchange operations, is issued publicly by the New York Fed.

ESF Financing
The ESF was structured to be self-financing. Its resources, which are held in both dollars and foreign currency, include its original Congressional appropriation and retained earnings. The Gold Reserve Act of 1934 initially funded the ESF with resources resulting from the devaluation of the dollar, in terms of gold. Congress appropriated $2 billion of the resulting valuation gain to the ESF; $1.8 billion of that was later used to fulfill the initial U.S. quota subscription to the IMF.

Currently, the New York Fed invests ESF foreign currency balances in instruments that yield market-related rates of return and have a high degree of liquidity and credit quality, such as securities issued by foreign governments. In addition to interest earned on assets, the ESF's balance sheet also includes gains or losses on exchange operations.

As of March 31, 2007, total assets were $45.9 billion and included $20.8 billion in foreign currencies, $9 billion in SDRs, and $16.1 billion in U.S. Government securities.

https://www.newyorkfed.org/index.html

maravich44tmosley
Sep 25, 2013 - 10:54pm
Save_America1st
Sep 25, 2013 - 10:47pm

ha...funny...

Thx DPH...man, it's like you read my freakin' mind by what you just wrote! You posted that while I was typing out my confusion on my tiny little phone, so I didn't see it until after I posted my questions to Turd. So I guess that sums it up then as you said...if I had understood the ESF and that law (which I really haven't seen it all explained in that way like Chris Powell did), then yeah, I wouldn't be so shocked as I was tonight after reading it. Am I alone on this though? Oh well...pretty crazy story about that 2001 court case though. Has anyone read about that before? Well, thx for answering a good part of my questions before I even posted them. That's a pretty amazing case of ESP you just threw out there man! Lol Have a good one...

Zoltan
Sep 25, 2013 - 10:40pm

Hate to Say I Told You So

Just Sayen' ;-)

"The CFTC will never do anything about the silver market manipulation" - Zoltan, for years now to anyone who will listen. Thanks for listening and not giving me the funny looks that I get from the sheeple.

Z

¤
Sep 25, 2013 - 10:39pm

The Gold Reserve Act & ESF

Thanks for posting that KWN link with Chris Powell's comments.

We've previously discussed both of those elements on here and at one time others on here and myself have posted a series of ESF vids that are kind of mind blowing.

That's why none of this CFTC stuff is really phasing me. It's just another "business as usual" aspect I've come to realize awhile ago. The whole part about certain banks acting on behalf of the govt. as federal agents is something I distinctly remember being discussed on here and their immunity from prosecution.

In that regard, some of the disbelief this would end any other way shouldn't surprise anyone if you knew about the ESF and what took place in the 1930's besides the well known Gold Reserve Act and so called confiscation.

TPTB make the laws and rules for their benefit and only enforce them (or not) to our detriment mostly. It's their policy.

Save_America1st
Sep 25, 2013 - 10:38pm

Turd...

Gotta ask some follow-ups to the KWN post I put up above, cuz I guess I'm confused. I've been reading and reading and reading about all this stuff for over 3 years now...so that also means please bear with me... But I've never seen anything regarding the info Chris Powell just divulged on KWN in that interview before. He states he's understood this since a court case in 2001. Is that law well known? I've never seen that explanation before. Is that story and law posted or explained anywhere on GATA's website that I've missed somewhere? Have you or anyone else written of or explained that law in that manner as you understand it or in any other way on tfmetals ever before and I've missed it? If that is basically the law (as criminal as it obviously is), then how....geez, I don't even know how to ask the question...but then how is it that Andrew Maguire's whistleblowing was such a revelation, so to speak? Wouldn't those like Chris Powell have just come out and explained that what Andrew discovered is just evidence of a "legal" activity? And why all the years of frustration with the CFTC if it was already known that there was nothing they could do because of this law. Am I misunderstanding or confusing things? Because now it all seems like everything was, I don't want to say for nothing...that's not how I want it to sound like from me...but I mean it kinda seems odd that for 3 years I've read about all this criminality with manipulation, which of course it is...and I've read nothing other than about major anger and frustration from everybody about these acts...but if GATA knew it was "law" then why haven't I ever seen it explained this way until now? I understand fighting an unjust law...but I've just apparently missed everywhere that it was all "legal". I'm still gonna keep stackin' my ass off because I still believe its all gonna come crashing down some day soon. But this still also kinda baffles me.

Sep 25, 2013 - 10:33pm

Parsing words

"Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets" NOT There is no manipulation of the market NOT there has been no law broken Note: "any firm or its employees" -- government employees are (arguably) not employees of any firm 1. PPT/SecTreas 2. FRB Affiliate 3. Private agent with 'in the interest of NatSec' double-0 license / waiver 4. Non-US sovereign, via one of the above. Nothing to see here, move along... It's a feature, not a bug. Not anomaly but policy.

maravich44Save_America1st
Sep 25, 2013 - 10:21pm
flyinkel
Sep 25, 2013 - 10:18pm

Sheetrocker

When I first saw the video was 1:40 I thought, "geez, no way". Then I watched it. THIS is EXACTLY the ESSENCE of all that is WRONG today. Many, many thanks!

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