CFTC Confirms Its Complicity

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.


From Reuters:

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:

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Fred Hayek
Sep 25, 2013 - 1:56pm

Back when Bretton Woods made the dollar the reserve currency

I saw Bill Holter make this point about the Fed's backtracking on tapering but it applies here as well.

Back when Bretton Woods made the dollar the reserve currency there were a few very strong reasons why that was acceptable to the rest of the world.

1) The U.S. was the biggest industrial producer in the world -- NO MORE

2) The U.S. had more gold than anyone else in the world -- NO MORE

3) The U.S. had a legal, political and economic framework to it that was not perfect but deemed reliable by the rest of the world. -- NO MORE

And this farcical decision by the CFTC further degrades any claim by the U.S. to number three. This has to make other nations look at us even more skeptically.

Sep 25, 2013 - 2:07pm

Important distinction

I noticed that, in both interviews, Andy said that "Chilton promised to make a statement if the CFTC failed to do anything before the end of September", or something to that effect.

The CFTC has now "done something".

Chilton no longer needs to "make a statement".

Sep 25, 2013 - 2:12pm

We knew this was coming

We knew that Bart had been deceiving us, that he was following orders.

We knew the CFTC was corrupt

We knew they would never rule against JPM.

But it still pisses me off that they can so brazenly flaunt the laws of this nation.

We have seen another brick of our society officially crumble.

I knew the country was corrupt and that any semblance of the rule of law did not apply to TPTB. Those synecdochal cigar-smoking people in the dimply lit room from the TV show X-files really are out there somewhere and they are firmly in control at this point.

All I can do is go live my life and prepare for a time when this hollowed out world economy collapses from the weight of fat sociopathic bankers & politicians sitting in its upper balconies while its infrastructure crumbles.

At this point, I am thinking less about metal and more about solar power equipment to run a well, lights and freezer.

Sep 25, 2013 - 2:18pm

Not so fast Pining

I can't help feeling this is excellent news, as silly as this may sound. Hear me out, and give me some wiggle-room as its early days in the release of this statement and what Chilton and other parties may say about it.

Did we really expect the CFTC to find JPM guilty of this?.......

The torturous and non-existent 'investigation' process had actually managed to provide in my opinion excellent cover for the perpetrators to manage the situation, precisely due to the legal cotton wool wrapped all around the subject matter. One could argue that this has been VERY helpful to the Morgue in managing Precious Metals markets into their current state, covering huge short position etc.

Various people will presumably have the ability/need to speak publicly about what they know and may even be able to depose hard data into the public domain now that the cotton wool is no more.

Perhaps MOST interestingly and central to the positive spin thesis, if JPM were to cash settle all or part of their Gold and Silver 'obligations' (as must happen) surely this would only be 'allowed' (which it surely will) once the 'investigation' is completed and cannot be used as a legal weapon in the ruckus that will follow this default by JPM on its PM obligations?

I could certainly be accused of looking for a shine on a stinky Turd but then where better to do that than here...?

Sep 25, 2013 - 2:19pm

Well that's certainly a possibility

Well that's certainly a possibility to consider.

Additionally, now that JPM is net long something like 70,000 Comex gold contracts, perhaps this tacit approval of business as usual will see prices actually rise...

John Galt
Sep 25, 2013 - 2:20pm

CFTC - Let's Look at the Big Picture

While many of us here are lamenting the (lack of) findings by the CFTC, perhaps we should see the big picture and realize that the vast majority of people on this planet would actually prefer continuation of the status quo.

The TBTF banks, of course, are pleased with the CFTC decision because they can continue their shenanigans and continue to rake in their huge bonuses.

The Western governments will be pleased because by looking the other way they can continue to keep the broken Ponzi system going for a while longer, and not have to risk the wrath of a furious populace figuring out that their savings, pensions and other entitlements are literally and figuratively wiped out. In this regard the TBTF banks are playing a role for the governments to keep the "markets" inflated with the illusion of normalcy and growth.

Since PMs are the speedometer on the printing press the ongoing price suppression also means that no admission of real inflation needs to be made, which means that interest rates can be kept low which, in turn, keeps government debt from blowing up, the bond market from collapsing, and real estate and stock markets from imploding. Once stock markets implode, any illusion that pension plans are worth anything will be vaporized.

Eastern Governments, for different reasons, are going to be happy because the artificially low prices will keep the flow of real PM moving from west to east. If PM markets were to be set free, and people started to notice line up to buy the PMs the flow of metal to the east would be greatly hindered.

And for the 99% of the planet who are largely oblivious to what is happening, this news (which won't even register a tick on their collective radars) will simply mean that they can continue to buy their 6 pack and watch their television as the never ending spectacle of Bread and Circuses continues to roll.

By the time the news comes on television tonight I doubt that most people will even notice anything to do with today's CFTC decision, unless it could somehow influence the Wild Card race to this year's MLB post season.

I can honestly say that there's a small part of me that also secretly hopes this charade can continue. While it would be easy to hope for higher PM prices and the prospect of either "getting rich" or, at least, preserving one's purchasing power by holding physical PM, that "upside" will be more than offset by the hellishness that will result from the new paradigm following TEOTGKE.

Urban RomanTF
Sep 25, 2013 - 2:20pm

Re: Done Something

That was my thought exactly when I saw the news this morning.

Welp, they said that they would do something. And this is it.

John GaltDoctor J
Sep 25, 2013 - 2:24pm

Amen, Dr. J

That is a conclusion I too have reached. While I do not discount the long term merit of holding physical, there are far too many other more important things to be done.

Sep 25, 2013 - 2:35pm

What a bitch!

Well, I am sure they ended the investigation now so they didn't have to consider the information from the latest whistleblower. The heat was probably on. I hesitated to call Chilton a buffoon because I am naive and an optimist. He is a clown and the perfect representative for CFTC. They spent 7000 hours on the investigation because there is only 7000 hours of free porn available on the internet. The worst part is that we actually pay these jackasses who intentially don't do anything. I guess I am fortunate that I don't have to do something so meaningless to make it is this world. Fuck'em!

boomer sooner
Sep 25, 2013 - 2:39pm


Why not file a Freedom Of Information Act and see what documents they do have. Some of the docs are 5 yrs old now. Since case is closed and no wrong doing, surely they would not mind making the info public.

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