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

Founder
turd [at] tfmetalsreport [dot] com ()

  173 Comments

Kcap
Sep 25, 2013 - 5:12pm

Two outcomes

1) The CFTC announcement backfires because people really know its all a manipulated sham and therefore everyone fear level is raised and they stand for delivery in the next delivery month available and drain the deliverables.

2) The CFTC is effective and the TPTB in the G/S space use the opportunity to run this crumbling charade at the speed in which they choose. Someone is going to be the fall guy here.....they need time to make it happen the way of their choosing.

Interesting to say the least. But I will tell you that sovereigns and very wealthy folks will need to drain the vaults and fast to get what they want out. No doubt in my mind they must be shaking in their boots wondering if they'll get the physical they need to protect what they have, in time, before the masquerade turns into a bloody truth fest.

Kcap

ag1969
Sep 25, 2013 - 5:13pm

I pulled a Mr. Fix

I just spent 45 minutes typing a post I was proud of and hit the wrong button and lost it. I know, I know, there are many measures I can take to not have that happen, too late, I am an idiot. No time to write that again.

The CFTC's ruling is anathema to any freedom loving American who believes in the constitution and the rule of law.

“No ruler should put troops into the field merely to gratify his
own spleen; no general should fight a battle simply out of pique.
If it is to your advantage, make a forward move; if not, stay
where you are.
Anger may in time change to gladness; vexation may be succeeded
by content.
But a kingdom that has once been destroyed can never come again
into being; nor can the dead ever be brought back to life.”
Sun Tzu

Our Kingdom is dead. Prepare accordingly.

Robski
Sep 25, 2013 - 5:14pm

Chris Powell's from GATA

CFTC can't stop market rigging when U.S. government does it -- it's the law

If the U.S. government is using intermediaries like investment and bullion banks to rig the monetary metals markets, those intermediaries presumably would be exempt from ordinary market regulations. And of course the main suspect in the rigging of the silver market, JPMorganChase & Co., long has said that it doesn't trade the monetary metals for itself but only for "clients," and the U.S. government long has been the bank's client in various markets every day, the bank being a primary dealer in U.S. government securities. GATA's lawyers noted the government's market-rigging authority soon after our organization was formally incorporated in January 1999. The authority was given in the Gold Reserve Act of 1934, which established the Exchange Stabilization Fund in the Treasury Department.

read more here:

https://www.gata.org/node/13059

Urban Roman AgNovice
Sep 25, 2013 - 5:15pm

A moment of silence ...

... then send 'im to the refinery! 

Response to: Paul Karason died on Monday

daveyboy
Sep 25, 2013 - 5:30pm

100,000 is a drop in the

100,000 is a drop in the ocean

There are billion of ounces if you include currently held silver

So, let's look it another way, price will not rise until formerly owners of silver stop selling back their silver.

Demand and supply unfortunately

benque
Sep 25, 2013 - 5:33pm

7000 hrs

Last season on the Bart and Gary show, we saw our two loveable buffoons snicker and snort as they sent out one side-splitting e-mail response after another to those "oh so dumb", but evil silver-bugs.

In this season's opener, our hilarious heroes are shown sending out invoices for 3,500 rollicking labour hours (EACH!!), to all those fun-loving American tax-payers. Ha-ha-ha, and a hardy-har-har! The jokes on YOU!

The Bart & Gary show, brought to you by JP Morgue. A name you can trust!

Caution: Side effects may include "mulch-mullett" and "reverse-mullett". Not recommended for those suffering from bouts of honesty and/or integrity.

Sheetrocker
Sep 25, 2013 - 5:35pm

Where It All Started

I am not the least bit surprised by the CFTC's decision. It was exactly what I expected. As I have stated in prior posts, our government is totally criminal and corrupt, and no agency of said government is going to do anything to benefit us.

Anyone who has done even a small amount of research on the legislation passed in the years leading up to the 2008 collapse, and the government's actions afterward, should know who runs this country and it sure isn't us.

Those who have studied history know the bankers and globalists have been trying to take this country over since it was founded. There are several key moments in our history cited as major turning points where they greatly increased their control.

The passage of the Federal Reserve Act and the income tax were certainly notable achievements for their side. I have always felt that the period of the 50s and 60s was at least the equivalent. I think this is when they really started the implementation of a police state, including ever increasing surveillance of the citizenry. People like the Dulles brothers and J. Edgar Hoover were among the prominent players.

This was at the time of my youth and innocence, when outside of the threat of nuclear war, we thought everything was OK, and trusted our government. Their actions seem more blatant today, and probably are, but we also have the internet and the ability to spread information. Back in those days, there was a lot going on the the public was totally unaware of.

I ran across this video on SGT Report. It is an interview with former Congressman Neil Gallagher, who served in the 60s.

He details the abuses of power going on way back then, such as finding out all their offices were bugged and their phones were tapped. Sound similar to recent allegations that the NSA is using it's surveillance capabilities to blackmail politicians?

Is this guy pure as the driven snow? I doubt it. Yet everything he says dovetails perfectly with all the other criminal activity committed by Hoover that I've read about over the years. I find him quite credible. I think it's a worthwhile watch for anyone interested in the history of our country during that timeframe and the incredible corruption going on way back then.

At about 33:30, he first discovers how bad government invasion of privacy had become. At 1:26:00, he tells how Hoover kills a bill he doesn't like.

Basically, if you were clean, Hoover would frame you or smear you in the MSM. If you were dirty, they would prosecute you, unless you voted their way, in which case you got a pass.

https://youtu.be/byul-xnPFCM

I am by no means an authority, but I have studied the history of this period quite a bit, and I heard a couple of things that were brand new to me.

Also, I think anyone who hasn't read 'The Creature from Jekyll Island' by G. Edward Griffin should do so. Also check out the work of Antony C. Sutton. You will find that the so-called 'conspiracy theories' are real, they have been going on a long time, and are why we're where we are today.

https://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/0912986212

https://digitaljournal.com/article/326318

Dagney Taggart
Sep 25, 2013 - 5:38pm

@Kcap and Bugzy

Yes, the CFTC just committed professional suicide. Officially neutered and useless agency. They may as well go all the way and take the cyanide too. Trust me, the smart money was watching and will not be left without a chair. Trust is officially broken. Anxiously awaiting thieving rat cannabalism spectacle with popcorn.

@Bugzy: Nah. That was a pretty graphic rant. I'll leave it at that.

silverwhere
Sep 25, 2013 - 5:40pm

"mulch-mullett" and "reverse-mullett" - LOL

7000 hours of circle twerking it seems...

.

Dagney Taggart
Sep 25, 2013 - 5:46pm

@davey

So who sold what exactly? Where is the selling happening and what is being sold? I can write a few contracts myself and sell them. Does that mean I no longer have the metal?

I wish I had a complicit watchdog allowing me to write a bunch of naked contracts and settling them with counterfeit paper too.

Try again.

daveyboy
Sep 25, 2013 - 5:49pm

The response I give to that

The response I give to that is those who are profit taking, those who are desperate for cash, those who have panicked.

I can buy silver at 8.3% premium, that is not indicative of said wholesalers being overwhelmed by the demand. The demand is up yes, but common sense tells you that the supply is also markedly up.

Dagney Taggart
Sep 25, 2013 - 5:50pm

I wonder.....

how deep pockets like Eric and Hugo are dissecting this news.

ggnewmex
Sep 25, 2013 - 5:55pm

Dagney

I appreciate the way you think about the Asians. It is just so sad to think that we were a nation of laws, and that is what made our country great. Sure, we still have good things here. But, when the government no longer looks out for the average American, and simply let the richest and most powerful survive, that is a bad sign. I think of Russia in the 1910's. Sad day for America 

I like the suggestion by the one dude to buy 10 ounces at a time. Yep, it is a drop in the bucket individually.... collectively... over time.... there is an impact. Right now, in my opinion, the cast has been laid. We each must prepare individually,,, spiritually AND physically, because it is just a matter of time

sad day for liberty

zman
Sep 25, 2013 - 5:59pm

Anyone notice, 10 year bond at 2.63%

So much for this "bond collapse", yields continue to trade lower.

The Fed's balance sheet will grow much larger, nothing new here.

Bollocks
Sep 25, 2013 - 6:01pm
Dagney Taggart
Sep 25, 2013 - 6:02pm

@davey

How can supply of actual metal be up? Who sold what exactly? Spot is below production cost for all but a handful of miners. Hannes Tulving has no metal and is committing fraud. Rob Gray has no metal and has committed fraud on multiple occasions.

I know of nobody who has sold anything meaningful in the last year. Do you?

Try again.

@gg: It seems it ended when Americans stopped being represented and started being ruled.

Back to work. Later all. The sun will rise tomorrow.

Wizard
Sep 25, 2013 - 6:03pm

Just Almost Feel Sorry For Them..... Almost

The time is quickly arriving when a serious crack in the system that wakes up the Sleeping Giant that is the American Population. As they slumber at the moment with American Idol and Endless Sports season after season to distract them. The Bread and Circuses will no longer be able to hide the Corruption and Out right Theft wrought onto an unaware public by Politicians and Bankers. When the Crack Heard Round The World is heard by the General Population and directly affects their everyday life. The French Revolution will look like a Tea Party The Angry will be Everyone that has been a victim of the Politicians and Bankers........ And That Is Everyone Around The Planet. 

daveyboy
Sep 25, 2013 - 6:06pm

"The cost of mining for

"The cost of mining for primary producers is roughly between $20-22.50" - David Morgan

Now, as for your question, the rhetorical point you are making only underlines the point doesn't it? Supply still flows freely, so, that's either newly extracted silver which is ramping up, or it's formerly buyers selling back onto the market.

"As we know Greg the price could stay below the cost of mining for a long time, depending on how much silver is sold back out onto the market"

Now, as you asked me a question, let me ask you a few questions, please explain how I can purchase silver at 8.3% premium per ounce?

Why do the rules of demand and supply suddenly become suspended?

Kcap
Sep 25, 2013 - 6:06pm

Why low volume moves down are tres tres dangerous...

In the stock market, what happens is the sinking begins with this low volume action that almost everyone just dismisses. It meanders downward with no real conviction and finally approaches some important technical threshold....longs start to worry a bit and some begin to sell, volume increases accordingly. The threshold gets pierced and then some follow on selling begins to works its way in. At that point people are raising eyebrows but still in disbelief, so a small 1-2 day relief rally ensues...perhaps heading into a weekend. Over the weekend, yay, all is great...wooohooo. Monday comes and the volume is light to the upside and then light to the downside. But, then something interesting happens. Because eyebrows were raised the week prior, some bigger sells happen "just in case"....and this brings us to a major technical threshold. At this threshold, people look back up the chart and say, uh oh, we've come down pretty good here....news ain't great, someone must know something and then the major threshold is violated and a cascading high-volume thrashing ensues. This could bring the market down a couple thousand points in a few days....(4-8?). Then...the dead cat bounce....wait, this can't be happening....quick, back in before the next guy....and up we go for a 50% upward retracement. Its at that time, at the top of that retracement, that the worry really begins to kick in. They know its technically driven and now they better get the F out before they get caught in the downward vacuum. Now the real action takes place. We won't go into the way this plays out, but we've all seen it before....and we forget when the market has been going up for years straight.....what happens when the bottom falls out. On the other side this time, no panacea awaits.

Gold and silver. You'd be crazy not to.

Kcap

Dagney Taggart
Sep 25, 2013 - 6:11pm

@zman

So what is the Fed using to buy all of these assets that expands their balance sheet?

This quote from Jesse comes to mind: "The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title."

Seems to me that the bullets will fly when the Fed actually tries to come out and claim ownership of said assets which they bought with a magic printing press.

Just adding to your comment.

@davey: When did David say this? 2010? Steve St. Angelo will probably disagree. The laws of supply and demand can be manipulated when a disillusioned marketplace considers paper gold as physical gold..... until it no longer can.

ctob
Sep 25, 2013 - 6:17pm

Nice title

I like the title of the thread, TF.

I would say "I told you so" in reference to my comment "Bart Chilton ain't gonna do jack." but I suspect a large number of people shared that sentiment. But I guess he has a few more days, we can always smoke the hopium ,right? Just say yes, please just say yes, I need another hit of hopium, man, come on, just one more ...

This is all that's left really for this system, momentum and hopium. I caution not to think this means it won't last a while longer. Momentum and hopium can go another two years no matter how stupidly flimsy it is.

daveyboy
Sep 25, 2013 - 6:35pm

No, David Morgan said this in

No, David Morgan said this in July, or August of this year, I can find the audio link if you like?

Dagney, it stands to reason that supply has been underestimated because whilst I can't remember the exact quote, it usually went along the lines of "the supply of silver will dry up below $30, the silver dealers will charge over $30 if they do, there will be an explosive disconnection"

I had a conversation with the director of the biggest european wholsaler several months ago, I posted the content of that conversation on here but I could buy tons of silver and it would be with me within 2 days.

I had a follow up conversation with him today (i spun some line about cousins being interested in acquiring tens of thousands of ounces and whilst I couldn't get a number from him of the potential amount I could be sent (he would then realise this was merely an investigative purpose) he did confirm that if my cousin wanted 1.5 tonnes (a number i came out with) that wasn't a problem.

Now again, that doesn't sound like a supply shortage does it?

If there is a supply issue, then do you simply think these analysts that work for these dealers are just all incredibly stupid, that all of these owners are incompetent?

Bollocks
Sep 25, 2013 - 6:44pm
Kcap
Sep 25, 2013 - 6:46pm

Oh daveyboy

1.5 tons is NOT A LARGE AMOUNT OF SILVER.

So, if at 3 tons he had a problem, then supply would have a problem.

If not, then 6?

If not 6, then 12?

Any of these numbers are not large at all. So, if indeed supply is constrained at Europe's largest wholesaler when say, 6 tons is removed, then we would have a serious supply issue on hand.

You better get back on the horn and figure out what is going on. If 6 tons is a problem, then thats a huge supply problem.

Kcap

boomer sooner
Sep 25, 2013 - 6:55pm

@ Bollocks

Love the print. The CFTC must have dug in the trash for the wallpaper I removed from the first rehab I did!!! On a second thought, shoulda kept some for wrapping paper for shiney Christmas presents.

Mantis
Sep 25, 2013 - 6:59pm

Rage against the machine

Rage Against The Machine - Killing In the Name
woofwoof
Sep 25, 2013 - 7:02pm

Mass Buy-in

I just visited my LCS and shared with him the concept of a mass coordinated purchase. He thinks it is a great idea and would be willing to participate and share with his customers to stir things up. We need to start acting and stop complaining. Guys like Turd and McGuire can give us guidance on the timing.

Recall a few months back when the price of silver was dropping and a mass purchase ensued? The pipeline was clogged for a month. We can win this thing.

It is not the 100,000 oz that matters it is disruption and uncertainty and shock that's the key. It is the catalyst to wake up the masses that will drive the market. It is the same game the bankers play with paper to influence the market … except we do it with real silver.

Bollocks
Sep 25, 2013 - 7:15pm
Kerbouchard
Sep 25, 2013 - 7:17pm

Lifted from R. Russell, today

"But here's something that worries me. I'm of the opinion that the government (actually, any government) will do whatever they have to -- to retain power. Once the US government runs out of money, they are going to look for where the money is. And if the money is in IRAs, savings plans, pension plans, etc., I think that ultimately, the US government is going to go after this money, leaving bonds and IOUs in exchange."

ancientmoney
Sep 25, 2013 - 7:18pm

Coordinated silver purchase . . .

I like this idea--we could take pledges just as was done when Gold Dog put up stuff for raffles, but the money is used to buy silver, and each gets his own silver shipped to his/her address.

I am buying silver regularly anyway, so I would sure take part.

Become a gold member and subscribe to Turd's Vault

Contribute

Donate  Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

Key Economic Events Week of 1/14

1/15 8:30 am ET Producer Price Index
1/15 8:30 am ET Empire State Mfg. Index
1/16 8:30 am ET Retail Sales
1/16 8:30 am ET Import Price Index
1/17 8:30 am ET Housing Starts
1/17 8:30 am ET Philly Fed
1/18 9:15 am ET Capacity Utilization and Ind. Prod.

Key Economic Events Week of 1/7

1/7 10:00 ET ISM Services Index
1/7 10:00 ET Factory Orders
1/9 2:00 ET December FOMC minutes 
1/10 Speeches from CGP, Goons Bullard and Evans
1/11 8:30 ET CPI

Key Economic Events Week of 12/31

1/2 9:45 am ET Markit Manu PMI
1/3 10:00 am ET ISM Manu Index
1/4 8:30 am ET BLSBS
1/4 9:45 am ET Markit Serv PMI

Recent Comments

randomness