CFTC and the Rule of Law
Thu, Sep 26, 2013 - 12:43am
By now, everyone knows that the CFTC has declined to formally take action against JPM for silver futures manipulation, after “7,000 staff hours of investigation produced no evidence of wrongdoing,” and despite that “the CFTC was given greater powers to crack down on trading malfeasance after the 2010 Dodd-Frank financial reforms.”
This is simply, a failure of the Rule of Law. There is no other way to say it. When the US District Court judge declines to exercise jurisdiction over manipulation claims in the precious metals futures, instead deferring to the CFTC which is federally mandated to have exclusive jurisdiction over such claims, then in turn the CFTC fails miserably to even produce a report of their investigation efforts that consumed 7,000 staff hours as they decline to initiate any charges, well, it is time to call the emperor naked.
Who here is surprised about this lack of enforcement by the CFTC? Any of us? Hell no. Well, who then? Bart Chilton, is who, saying he “was disappointed.” Is that all he can say? Really?
The truth about why the CFTC did not initiate enforcement action, was hinted at, surprisingly, in the Reuters’ article above: it is official USA policy, through the Treasury borrowing, the Fed printing through QE to infinity, that the ponzi fiat scheme must continue at all costs. Anything that could derail confidence in the colorful pieces of paper that the elite want us all to believe magically hold value and by which we are all forced to transact commerce, or else, is attacked, ridiculed, and left withering. That includes any alternative forms of currency, to include gold and silver.
See, if gold and silver were allowed to freely trade, then the enormous QE efforts, dumping 85 BILLION brand new colorful pieces of paper into the economy EVERY SINGLE MONTH, would become obvious because priced in terms of such fiat, gold and silver would have climbed and stayed well past the all time highs. As Giffen goods, this would have exponentially accelerated the end of the Keynesian experiment. Banksters would be making Mussolini impressions. The elite will not allow this to happen.
Hence, like the fact that QE cannot and will not taper, so too is manipulation of physical gold and silver priced in terms of fiat never going to end, BECAUSE IT IS OFFICIAL POLICY OF THE USA.
Plenty of commentators have already exposed this, such as Mike Maloney. Indeed, GATA has been all over this for years if not decades. So, is there really any surprise about this development?
So, how does this comport with the–supposed–Rule of Law? Easy. It does not. Simply that.
Who is naive enough to believe that the elite play by the same rules as the rest of us? Corzine? MF Global? TBTF banks who have admitted to massive fraud, yet there is not a single perp walk or criminal investigation ongoing or pending? Jamie Dimon and the Presidential cuff-links? Massive white collar crime, control group accounting fraud, are things of which many commentators have identified as occurring right now, with no end in sight, to the point that getting caught and paying a fine is just part of the costs of doing business. There is NO incentive for any of the elites to change their behavior. None.
Until there is, through a miraculous government hero prosecutor, who is not outright killed or silenced in some other way, a public, righteous criminal investigation with real consequences imposed, then the Rule of Law is just an illusion.
On the whistleblower allegations, per Andy Maguire, and TF, I absolutely believe that there were two whistleblowers. I have no reason to doubt TF. I have no reason to doubt Andy Maguire. They have no incentives to BS anyone on any of this, but instead, have powerful reasons to have just kept their mouths shut. That they spoke up, at likely great risk to themselves, lends credibility to the argument.
On another note, looking back in retrospect, at TF’s HEH summer pronouncements, it seems perfectly clear to me now that TF did indeed have a contact from a source, passed that source on to the appropriate channels, and, naturally, that TF would have rationally expected that there would be some sort of follow through by some or at least one enforcement agency. That TF was disappointed because nothing of the sort occurred, should be a lesson here to us all.
Finally, looking back over the past year, I was left with this thought: What if JPM learned of the whistleblowers’ allegations, then influenced the metals’ markets lower over that year in order to accumulate a massive long position, all as a hedge against any criminal action down the road? Brilliant, huh? Are they that smart? The better question is: Are we that naive to believe in the Rule of Law for EVERYONE?
Folks, I will say this until I can no longer speak: prepare accordingly, we are in the fiat end stages and it seems almost comical to say that there will be a new currency or means to transact international commerce in the near future. Whether there is a collapse or a more managed transition remains to be seen. But, the signs are all there, have been there, and one only need open one’s eyes to see that which exists.