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.
Prepare accordingly.

About the Author


bullion only
Sep 26, 2013 - 12:45am

So much for the whistle blower effect.

These guys are the government. The government dosent prosecute itself.

bullion only
Sep 26, 2013 - 12:48am

If they spoke the truth about

If they spoke the truth about the metals rigging they would have to live lives like Snowden.

Foreign country, hidden, wearing disguises........what kind of a life is that.

Everything to lose and nothing to gain.


bullion only
Sep 26, 2013 - 12:54am

As Martin Armstrong and Paul

As Martin Armstrong and Paul Craig Roberts state; Metals prices will be held in check until the rest of the world loses confidence in the dollar due to US policies. Roberts says perhaps 2 years due to deals the US has made with other countries such as convincing Japan to QE. Armstrong says the great collapse begins Q3 2015. Thats 2 years also.

So all we can do is sit tight and be patient.


Sep 26, 2013 - 12:56am

Why Not Disclose All the Insider Files

I bet a cheesecake that there are numerous Russian and Chinese media willing to help. The Rule of US law is only in the US not there.

Where is our Chinese Turdite Judejin? Why doesn't this Chinese fellow give us some suggestions when we need them?

Mr. Fix
Sep 26, 2013 - 1:07am

California lawyer, thank you for confirming what we knew.

As people explore these markets, they all have their moment of awakening, as to just how corrupt and lawless our system of government has become.

My “wake-up call” was when George Bush announced - “We need to suspend free market principles in order to save the free-market”. (TARP) That was my slap in the face, even though the clues had been there for decades, and I knew the system was sinking fast, that was the moment of truth, that the corruption went to the very highest levels.

Previously, I would go along with the popular belief that politicians were just ignorant, stupid people.

That one statement informed me that this was an orchestrated takedown of America.

Of course I've learned a lot since, because with my eyes open started looking.

As the Atty. Gen. of Turdville, you're well respected and well informed opinion will probably open a lot of eyes here, as people are beginning to wake up every day.

Thank you for your time, and the excellent reasoning you bring to this place.


Sep 26, 2013 - 1:08am

Maybe if we played this really loud...

rage against the machine - Wake up

Could work, maybe - not sure.

Anyway it's late... it's all I can think of.

More power to you Turd!

You tell 'em!!!

Sep 26, 2013 - 1:13am

@CL - Thanks for your comments

I couldn't have said it better myself!

The degradation of federal and state rule of law is reaching a point of diminishing return, where it is literally better to ignore the government proclamations and to move forward with individual plans to extricate and preserve life/liberty.

I am reminded of the comments of a Costa Concordia survivor. The newly married couple was on their honeymoon. The newlywed wife was in such denial that she refused to believe the ship was sinking even as she saw water swamping the hallways of the lower decks. The husband led the wife below decks to attempt to retrieve their life preservers from their cabin. By the time the husband got his newlywed wife to the top side, they had no room in the lifeboats and were crowded off three boats. The couple left the ship by having to jump off the deck onto a passing lifeboat below, falling on to the roof of the lifeboat without preservers and having survived the roll over by dumb luck.

I have to wonder if the newlywed husband will continue in his disbelief and follow his wife or if his wife will, in the future, follow her husband's lead.

He clearly understood the issue but was slow in being able to execute decisions because he was confused by (his words) "the absence of information" and "no one around to tell us what was going on".

With due respect to the 2000-3000 men on that ship, if you can't figure out that a blacked out ship with no power and listing by 20 degrees was in trouble; then is it really the ship employee's fault that you can't figure it out?

With due respect to the 100,000,000 men of the United States (Yes, I'm discounting the 50,000,000 people who are born male genetically and either are not mature past puberty or do not identify themselves with being male); if one can not figure out that the ship of state is listing badly; FIGURE IT FRICKING OUT!

How badly rolled does this economy need to get before you figure out that the S.S. United States is headed for mothballs when the ship of state should be ready for another mission?

Sep 26, 2013 - 1:44am

Ultimately the issue boils down to control...

The perceived level of control over the stability of the system by TPTB, i.e. the market, prices and asset valuations versus the reality.

The extent to which these differ and whether or not such a difference matters (and crucially how much so) naturally determines one's participation in this market/game/whatever... and it's result.

Posterity will vindicate those who made the right decisions, the sole remaining issue is time.

The Nightwatchman - Until the End

"Wisest is he who knows he does not know." -Socrates (Plato if you must.)

Gold Dog
Sep 26, 2013 - 3:13am

Number nine...

Number nine.

Thanks Cali!

Excellent life boat allegory SSJ. I think that the regular Joe's in the US have a strong sense of fairness but are being kept clueless about the nature and depth of the manipulation and lies. When they hep to it they are going to be pissed off in a large way!

I don't think, for most of these evil people it's about bringing down the U.S., Golden Goose and all. My thinking is that they are bringing it down in the mad scramble for wealth and power.

The TOTUS and his bunch may very well want to deep six the place, for reasons I hear of but don't understand I think that sliver actually hates us, sort of like Jihadists. (They may discover that they have shot themselves in the foot before it's all over. Many times arsonists get burned themselves.)

Having been reared in Illinois none of this surprises me but I was offended when Holder said that the banks were too big to prosecute.

I have started a subscription, on the advice of a fellow Turdite, to Sovereign Man Confidential and must admit that as part of my strategy of 50% tangibles and 50% cash, water rights in Chile and Hong Kong dollars are definitely on my radar. (Danish Kronor too.)

Remember to warn your children about avoiding a strong man when he appears and to steer clear of anyone that doesn't want to move the country backwards in the direction of closer adherence to the Constitution. (I am also offended by the fact that the last sentence, supporting the Constitution, puts me on a list of those who would supposedly do harm to our country!)

Your friend,


Sep 26, 2013 - 3:57am


That's Roman Numeral for Tenth!

(also stands for the "unknown", the territory we are in)

El Gordo
Sep 26, 2013 - 4:12am


If you did not know it before now, just remember that laws are for the little people. Zerocare is the perfect example to demonstrate this phenomena as the head zero himself has documented this fact in the form of waivers - the legality of the issue of such are nowhere to be found in the law books. Just do whatever you are big enough to do and don't get caught.

Sep 26, 2013 - 5:24am

living in the twilight zone

For most people the price of silver and gold is not relevant to their lives at all, not in the slightest.. If I was to inform one of these people, eg my mum, that the government and bullion banks are manipulating the price of silver in order to prop up the monetary system, she would feel relief that the government are doing the right thing. She would not share my indignation about debt based currency backed by nothing, about governments being able to steal the wealth you've earned by adjusting the value of the currency. No matter how much I try to explain it all, she will still feel glad that the government are in control and doing what they need to do and will worry that I am too much into conspiricy stuff. It is a really wierd twilight zone to be sure.

I think there are many people who have a superstition that governments are needed, and that they are good, and I have no idea what needs to happen before they will realise that was a false belief.

Sep 26, 2013 - 5:56am

A change in the weather?

Dang! Just a few days ago this place was crawling with smiley faced, all is well, happy people in total denial of the decline of the USA. It now looks like they all decided to hunker down within hours of each other. What a difference a day makes.

@ judejin

Don't assume it will be one percent of stackers that will go off on the DC crooks and their moron minions. They might be joined by another three to ten percent of armed citizens that only need a trigger event to jump in and settle various types of old scores. I would not be shocked if gun owners, Ruby Ridge types, anti-IRS folks, disgruntle former military, etc., etc. pile in because they hate what our gooberment has become or simply so they won't miss out on a sanctioned rat shoot.

Keep, silver and lead.

Gold Dog
Sep 26, 2013 - 6:26am


Many people, prolly most, feel secure by letting someone else handle things that seem complex to them.

My brother in law is the managing partner in a pretty big, ( 350 lawyers), law firm. I have tried for years to open his eyes but he is convinced that TPTB wouldn't put us in a situation that would result in the collapse of the fiat Dollar.

I am co-trustee with him for a nephew that was orphaned, to his credit he has allowed me to move 10% of the lads money into PM's as insurance.

Your friend,


Urban Roman
Sep 26, 2013 - 6:58am

Rule of Law

Reminds me of the interviews we have recently seen with Karen Hudes. She seems to be convinced that someone, somewhere will actually pay attention to her evidence and ... I'm not sure what she expects to be done. How can any enforcement happen when the corruption is ubiquitous?

I suspect the lady could use a nice hug.

Sep 26, 2013 - 7:32am

Perhaps the CFTC

will release results of their findings. Surely after 7K manhours of labor, there is documentation, right?

Well, lets see what your results are?!?! If not, are we to conclude, there are no notes? Would not be unlike the government to waste a few hours


Sep 26, 2013 - 7:39am

How One Man Took China’s Gold

Jan Skoyles: The story of China and their obsession with gold has been revived this year as monthly data shows the phenomenal volumes imported through Hong Kong and being traded on the Shanghai Gold Exchange.

However, given how much we gold commentators report on China’s inherent love for gold, it’s surprising that very few realize that less than one-hundred years ago the country lost thousands of years’ worth of reserves.

Whilst the 1930s saw the Shanghai Gold Business Exchange as one of the biggest gold centers in the Far East. China’s love for gold left them vulnerable to two separate accounts of looting. The first was in 1937 when Japan invaded China, thus helping themselves to 6,600 tonnes of gold from the then capital Nanking.

However we now turn our attention to a lesser reported looting. The gold that was smuggled out of China to Taiwan between 1948 and 1949 by the soon-to-be-ousted Nationalist party.

In 1948, President of the Kuomintang (KMT) government, Chiang Kai-shek was losing the civil war in north-east China against the Communists. He began planning a retreat to Taiwan and he intended to take the gold reserves with him.

The 1949 retreat of Chiang Kai-shek’s government to Taiwan is a key point in China’s recent history. Not only did it signal a dramatic change in the country’s political and social future but it also left the country with little gold bullion to support any sound money they might have wanted.

Estimates of how much was moved differ between sources, ranging from between 3 million – 5 million taels (113.6 tons – 115.2 tons). In The Archives of Gold published in 2010, Dr Wu Sing-yung, outlines how his father (head of finance for the KMT government) helped to mastermind the operation that saw over 4 million taels of gold be moved from Shanghai to Taiwan. One tael is 37.2 grams

Urban Roman
Sep 26, 2013 - 8:08am

ggnewmex, did you really want

ggnewmex, did you really want to watch 7000 hours of midget tranny porn?

Sep 26, 2013 - 8:12am

The Rebel X-Factor: Seeking Sharia Law & "Communique No. 1"

Main Syrian opposition group splits

AP 4:52 p.m. EDT September 25, 2013

BEIRUT (AP) — Nearly a dozen of Syria's powerful rebel factions, including one linked to al-Qaeda, formally broke with the main opposition group in exile Wednesday and called for Islamic law in the country, dealing a severe blow to the Western-backed coalition.

The new alliance is a potential turning point, entrenching the schism within the rebellion and giving President Bashar Assad fuel for his long-stated contention that his regime is battling Islamic extremists in the civil war.

The Turkey-based Syrian National Coalition — the political arm of the Free Syrian Army rebel group — has long been accused by those fighting inside Syria of being a puppet promoted by the West and Gulf Arab states supporting the Syrian rebellion.

Wednesday's public rejection of the coalition's authority will likely be extremely damaging for its future in Syria, particularly at a time when the U.S. and Russia are pushing for peace talks.

"If the groups involved stand by this statement, I think this could be a very big deal — especially if it develops into a more-structured alliance instead of just a joint position," said political analyst Aron Lund.

"It basically means that some of the biggest mainstream Islamist forces within the so-called FSA are breaking up with the political leadership appointed for them by the West and Gulf states, to cast their lot with more hard-line and anti-Western Islamists," he said.

The announcement came less than two weeks after the coalition elected an interim prime minister, Ahmad Touma, charging him with organizing governance in opposition-held territories that have descended into chaos and infighting.

In a joint statement, 11 rebel groups that are influential in Aleppo province in the north, including Jabhat al-Nusra, which is listed as a terrorist organization by the U.S. State Department, said they rejected the authority of the Syrian National Coalition as well as Touma's appointment.

A video on the Internet showed Abdel-Aziz Salameh, political chief of the Liwaa al-Tawheed brigade that is particularly strong in the northern city of Aleppo, reading the statement.

"These forces call on all military and civilian forces to unite under a clear Islamic framework based on Sharia law, which should be the sole source of legislation," the signatories said.

Ominously, the rebel groups' statement was titled "Communique No. 1," a term used in Arab countries following military coups that suggests the creation of a new leadership body....(cont.)

Sep 26, 2013 - 8:38am


Well done!

Mr. Fix
Sep 26, 2013 - 8:48am




The USTreasury Bond market breakdown is in progress, all part of the general USDollar global rejection that is taking the world by storm. The USFed, the USGovt, and the Big US Banks urgently needed to stop the move in the 10-year bond yield (aka TNX). They needed to prevent a move above 3.0% on the USTreasury yield. They needed to avoid a calamity with both Interest Rate Swaps and USTBond carry trade reversals. They needed to avoid a trigger of sell stops. They needed to prevent the rest of the world selling off USTBonds within their reserves management systems, the foundation of their national banking systems.So the USFed and Big US Banks called upon themselves to place artificial high bids on USTBonds sold among themselves in a circle jerk of Flash Trading. They pushed the TNX below 2.9% quickly in the corrupt process. USFed Chairman Bernanke then backed off the Taper Talk threat, and the USTBonds rushed in a pathetic rally. The Jackass forecasted his retreat exactly, a bluff after a failed trial balloon. The bankers then resorted to the hidden work of computer algorithms. They altered the constructive dynamics of the bond market. They corrupted it one deeper level. The Flash Trade defense is pathetic, and will be revealed in coming weeks. The bond market has converted into a Flash Trading arena within the bank syndicate to maintain bond prices. This is an explosive development, indicative of unsustainable sovereign bond prices kept up by round robin marked by internal sales within the Federal Reserve banks themselves. The USTBond market is broken, and the USDollar cannot be defended.
[Read more...]

Sep 26, 2013 - 9:00am

LOL Urban Roman

First, indeed, great post Cal Lawyer

second, LOL, I know, this is what that 7K hours would be!! LOL


I like the RCM and their products. I like them better than the silver Eagle.

Interesting take the one poster had about our unified "buying" day being other than the US Mint


We do need to stop, not the dialog, but the complaining about our being useless, and just lay low, and take action 10 oz at a time

Sep 26, 2013 - 9:15am

Impeachment Action

There may be some of your Congressman that will hold impeachment hearings and expose some of this corruption. There are no regulators that will do it and no whistle blowers that will not be treated as criminals. Every response to your representatives should include the word "impeachment".

sierra skier
Sep 26, 2013 - 9:16am

As the theatrics of our

As the theatrics of our economic realities continue to erode the foundation of faith in our system we will see the collapse of our currency. You can't build a durable structure without a solid base and the faith that has held that base together is rapidly eroding.

The lack of concern in our regulating agencies to bring the corruption and fraud to light and bring justice to our system shows we are on the precipice of systemic collapse. The markets will show more dramatic and violent moves as we close in to a broken system and final failure.

The folks in charge have passed the point of repair and are scrambling for the spoils left before all fails.

Another great post CL.

Edit in: The new colorful $100 bill is due in Oct. 8,,,, truly funny money on the way.

Sep 26, 2013 - 9:23am

Rule of law

The rule of law is a myth just like the myth of authority. The rule of law has never applied to the people who make up the ruling class as a whole and never will as long as there are rulers. Sure once in awhile one of them is sacrificed to keep the sheeple believing in and supporting the charade but never the ones who really matter.

As long as the people believe in authority and its right to control them nothing will ever change. They will continue to be robbed and controlled by the people at the top and lied to forever.

Being ruled doesn't make you free. Being robbed doesn't make you free. Being forced doesn't make you free.

The sad thing is there are far, far more of us than there are of them and the only way they can maintain their power and control is because most of us believe that in order to be free we must have rulers. And where do you think we got that idea?

Must be ruled to be free. Does that make any sense to you? It sure doesn't to me.

Sep 26, 2013 - 9:44am

CFTC non-decision . . .

Is a back-handed recognition that gold and silver are money. Just as all currencies are bought and sold, controlled, etc. in forex markets. It is simply much easier to use the commodities markets to control prices through massive naked shorting by entities that have direct, free access to the fiat currency. The futures market is a perfect venue for manipulation, and that is why it (PMs) trades there.

All the games, however, in the end mean nothing. In time, all manipulations fall away. Of course, many people are hurt by this, as they cannot outlive the manipulations. But maybe our children can, or our grandchildren.

The entire country has been high-jacked by an ever-encroaching elite. Their main tool has been the fiat currency system. By creating and controlling the currency, and firehosing it wherever they wish, they can buy off anyone, any nation, any group--either directly with the fiat, or by paying someone else to kill off those who refuse to buy in.

The power elite fear the population. They will use whatever tools at their disposal to protect themselves from the masses, when, or before the masses finally figure it out.

It seems to me that our best hope lies in the military units. Every man and woman in the Navy, Army, Air Force, Coast Guard, Marines, their reserves, and especially our states' National Guards need to sort this out. Are they fighting for the American people, or for a handful of international elite? Since they are not elites, they and their families are very disposable when their usefulness ends. I hope the officers who lead have this in mind. I think they do. I hope they do.

Sep 26, 2013 - 9:53am

"We're just going to kill the dollar"

I don't think this has been posted yet. It's a must watch....

If someone could embed the video... thanks!

Sep 26, 2013 - 9:53am

Kenyan Mall Siege

I'm no ballistics expert but this a bit more than a terrorist car bomb? Brings to mind other demolition jobs.......

ancientmoney silverstool
Sep 26, 2013 - 10:07am

@silverstool re: Kenya mall . . .

Yeah--this morning on GMA (my wife watches it), they said that the terrorists set off grenades in the parking ramp, weakening the supports--LOL!!!!

99 out of 100 listeners will swallow it as gospel, unfortunately.

Sep 26, 2013 - 10:39am

Per OhioSunnyDay Request

"We'll Kill the Dollar!"


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