The Sicilian Code

Mon, Oct 14, 2013 - 9:26am

 Criminal enterprises the world over are tied together by a particular conduct so endemic to organized crime that it might accurately be referred to as Mafiosi Best Practices. It is based on the very common-sense principle that one should never, ever leave a paper trail of one’s criminal activity. Any document, from notes at a meeting to a list of goods, is a tangible piece of evidence that could be used against you at some future date. The Sicilian Mafia, renowned for their “code of silence”, had an old saying which sums this up perfectly: Never write when you can speak, and never speak when silence will do

What does this have to do with Gold and Silver? Perhaps a great deal. 

First, note that the “never write it down” principle of organized crime is already known to have been employed in the largest and best known example of market rigging that has been proven to date- the London Gold Pool. The London Gold Pool operated for 7 years and only fell apart when France decided the US was printing money too fast (in relation to France) and was gaining an unfair advantage, so they withdrew and only then did the episode slowly became public knowledge. In his book "Gold Wars", Swiss banker Ferdinand Lips wrote:

"It was decided to keep the gold pool secret at the time. Keeping with traditional practices at the BIS meetings, not a scrap of paper was initialed or even exchanged; the word of each governor was as binding as any contract". (Lipps, Gold Wars, 2001: pg 53)

Why didn’t anyone present record the details of this agreement, so crucial that it would structure the major part of international trade for most of a decade? Because what they were conspiring to do (and succeeded in doing for seven years) was illegal. The Sicilians would have been proud. 

More to the point, there is a facet of the “never write it down” procedure that is especially crucial to understand, in light of current events in the metals markets. The principle of deliberately leaving no paper trail has an added benefit for those at the top of criminal organizations. Let’s say that a mob boss orders a hit and his shooter gets caught in the act. Without any tangible evidence that he ordered the hit, from a legal standpoint it winds up merely his word against the shooter. The shooter says “He ordered me to do this” and the boss says “Prove it”. Giving orders by word of mouth thus provides an added layer of protection for those at the top of a criminal organization.

Crucially, however, it places those actually conducting the day-to-day business of crime in a very difficult position- they have no choice but to follow the orders of the powerful people in charge, but they know that they are on the hook for the crimes committed. This means that when criminal enterprise starts to fall apart or when public pressure causes politicians or law enforcement to turn up the heat, we see the underlings in such a scheme put into a no-win situation. They do not dare cross those giving the orders, but they are painfully aware that they themselves are the ones actually committing the crimes. Because the entire thing has been word of mouth from the beginning, at some point they start to realize that they do not dare turn on the powerful entities giving them their marching orders but the longer they continue, the more likely it is that they themselves will be hung out to dry if/when the scheme is revealed. 

The only rational response in this situation is to quietly leave the organization if at all possible. Remove yourself from being in the position of having to commit crimes which you cannot refuse to commit, yet you have no proof that you have been ordered to commit them if the whole thing blows up. 

In light of the above, consider the following:

  • The CFTC has been conducting an “ongoing” investigation into precious metals markets manipulation since 2008.
  • One year ago, two whistleblowers from inside J P Morgan (one a trader, one in management) allegedly gave very specific evidence of vigorous market manipulation by JPM, apparently detailing deliberate market-moving trades. 
  • Despite this apparent “smoking gun” evidence, the CFTC stunned market observers last month by closing the investigation, declaring that they could not bring charges against any firm or individuals.

Now here is where it gets interesting. Isn’t it peculiar that:

  • CFTC commissioner Jill Sommers unexpectedly resigned, leaving her high-ranking position despite having no other job waiting for her (link). Indeed, aside from giving the occasional paid talk about Dodd-Frank at a business conference or two, she appears to be still unemployed.
  • Less than 10 days after the “no charges filed” announcement, CFTC Chairman Gary Gensler (whose term as chairman is up at the end of the year) very publicly turned down the Obama Administration’s offer of a second term, in a Wall Street Journal article. He will be leaving the CFTC at the end of the year(link).
  • Within a week of the “no charges filed” announcement, CFTC Chief of Enforcement Davd Miester unexpectedly resigned his position, again despite apparently having no firm job offer or position he was leaving for (link). 

Now one could certainly argue that top people leave government agencies all the time, even three of the top six at the CFTC including the Chief of Enforcement and the Chairman. But one could also argue, given that it is now public knowledge that the CFTC has ignored direct whistleblower evidence of manipulation in the precious metals markets for more than a year prior to sinking their own investigation, this spate of resignations could certainly be more than mere coincidence. In fact, it is EXACTLY what one would expect to see when people ordered to cover-up criminal activities come to realize that the heat is being turned up, word has leaked to the public, and they have no way to prove that they were ordered from on-high to do these things. 

They cannot defy the powerful people or entities who have given them their marching orders, yet the nothing written down method means that they cannot prove they were verbally ordered to do these things. They begin to fully realize how precarious their position is, and that “they told me to do this” will not get them off the hook if it all goes wrong. So the best they can do is to try and slink into the background, hoping against hope that this all goes away.

The Sicilians understood that foot-soldiers are expendable. Perhaps a few of our public servants are coming to realize this, too.

About the Author


arch stanton · Oct 14, 2013 - 9:35am

could it be?


flyinkel · Oct 14, 2013 - 9:54am

Home Run

On many levels.

With that thought, don't remember this being posted (from a few days ago)

Mr. Fix · Oct 14, 2013 - 10:01am


I think a whole bunch of government employees are beginning to notice that they are “expendable”.smiley

Thanks Pinning,

boomer sooner · Oct 14, 2013 - 10:02am

Currently reading Gold Wars

Listening to Glenn Beck this morning on radio headed to job site. He is talking about China speaking out for changing the reserve currency away from American dollar.

turdpond · Oct 14, 2013 - 10:05am


The rats are jumping ship.

Patrancus · Oct 14, 2013 - 10:06am

insignia of

an obedient expendable foot soldier

· Oct 14, 2013 - 10:09am

Nice observation Pining.

Nice observation Pining.

SilverSurfers · Oct 14, 2013 - 10:11am


Yolanda Be Cool & DCUP - We No Speak Americano (Official Video)
Zoltan · Oct 14, 2013 - 10:24am

Well Written P4TF

Another solid work.


PS Life in the coal mine is good. Have missed posting lately but still have time to lurk and read. Thanks for the site TF.

pforth · Oct 14, 2013 - 10:24am

So when's Bart going to slink off?

He's been the most public face of the CFTC investigation... he should be trying to escape soon....

tyberious · Oct 14, 2013 - 10:25am

They are not called

Banksters for nothing!

Good one Pining!

Bollocks · Oct 14, 2013 - 10:52am

Haha! Worth up to $20,000 each - sold for $60...

Original signed canvasses by British street artist Banksy have been sold from a stall in New York's Central Park for $60 (£38) each.

The elusive artist posted a video on his website showing a man selling what appeared to be fake Banksys.

Many of the pieces, estimated to be worth up to £20,000 each, remained unsold at the end of the day.

ned braden · Oct 14, 2013 - 11:01am

$10 over spot at Apmex

1/2 oz. AG Maples......

Never saw that before....

Fat Willie · Oct 14, 2013 - 11:01am

Great post pining

I must admit that I love when someone is able to connect some dots that I had missed. Great observations and nicely done Pining!

Down Range arch stanton · Oct 14, 2013 - 11:09am


The Good, The Bad and The Ugly

One of the BEST!


Gold Dog · Oct 14, 2013 - 11:19am


Hello you wonderful Turdites!

I have been a busy little beaver and haven't had time to catch up but do want to say that I WILL be buying silver on Halloween, and you should too!


Gold Dog

EDIT- I am 99% sure it will be from Doc.

Orange · Oct 14, 2013 - 11:25am

Street Art

LOL, reminds me that gold is currently selling like that street art. $1280 will soon be $20,000 plus

Nick Elway · Oct 14, 2013 - 11:31am

Banker Resignation List from 2012

Unfortunately the list seems to have disappeared and updates stopped in March of 2012. It was a wonderful list of bankers jumping ship. Some must be legitimate retirees, some must have opted for "early retirement".

173 designations in the two weeks around the end of Feb 2012.

rl999 · Oct 14, 2013 - 11:35am

MBS purchases in October

Was looking for the pomo schedule and saw this. Probably posted elsewhere already, but good to keep in mind.

Additional Asset Purchase Amounts*
The Desk plans to purchase $40 billion in additional agency MBS over the month of October. The Desk will release the amount of additional planned purchases for November 2013 at 2 p.m. on October 31, 2013.

MBS schedule

Treasury schedule

achmachat ned braden · Oct 14, 2013 - 11:46am

Ned Braden

probably because 1/2 oz. Ag Maples don't exist? ;-)

but I saw the ad for their 1/2 oz. Au Maples... they do say that they're old and scratched. 

AlienEyes · Oct 14, 2013 - 11:47am

I am not a big conspiracy guy

I am not a big conspiracy guy except to say I am well aware that the government is populated by devout liars in the highest positions. I am neither an anti-semite nor a neo-Nazi but I know I will be branded as both in some circles when I ask the following question. Aren't Jill Sommers, Gary Gensler and David Miester all ”somewhat Jewish”? I ask because of all of the Rothschild references that are popping up all over the internet. I am well aware of the Rothschild’s reputation as money mongering nation destroyers in the past but I am an “inquiring mind” that wants to know just how involved they are in current skullduggery.

Bollocks · Oct 14, 2013 - 11:49am

Absolutely spot-on Pining!

Great post and I think you're dead right yes.

Strongsidejedi · Oct 14, 2013 - 11:59am
tyberious · Oct 14, 2013 - 12:08pm
Kuchek · Oct 14, 2013 - 12:14pm

Not sure if this has been posted

This is a great interview w Dr. Janda regarding healthcare. Spread it far and wide.

Patrancus · Oct 14, 2013 - 12:18pm

Get the money

out of the hands of the enemies of Christ, says Brother Nathanael. As far as money, not much has changed in over 2000 years.

Bollocks · Oct 14, 2013 - 12:27pm

Karen Hudes

It's interesting how, having established herself as a whistleblower of note, she's now coming out with this gold nonsense. That's twice in two of her most recent interviews that she's trotted out this 'info' that there's far more gold out there than was previously thought.

Maybe she is still working for the government... hmmm...

ned braden achmachat · Oct 14, 2013 - 12:49pm

@ achmachat


I was wondering the same thing, bout scruffy Maples - random date


· Oct 14, 2013 - 1:15pm

Gold Wars

A great read so far. somebody posted a PDF link on Turd's podcast.

Actually, one internet author I know shares all his books freely via PDF files and he says that it increases his sale of hard copies of his books. I believe it. I plan to get a copy of this one. Chapter one alone is quite enlightening, learning that the Dark Ages were accompanied by a period of money debasement and the Renaissance began with a retun to sound money.

Can't wait to read chapter 2 tonight.

Dagney Taggart · Oct 14, 2013 - 1:26pm

Happy Thanksgiving!

The first of two anyway.

Great post, Pining. It's odd how the mafiosi and color-of-law corporations operate in exactly the same fashion. Except one is legalized.

"A world where the rule of law, not the law of the jungle, governs the conduct of nations." -George Bush

Uh huh.

PS. Dry powder in the safe waiting for the 25th. Fridays are really the only days I can freely leave the office. And the Vancouver supplier likes when I show up to take the weekly sales off his hands before the weekend. Saves 20-30 cents an ounce and usually pays for the drive, a night out, and a very cheap hotelwink.

@Alien: Please stop insulting the true olive-skinned descendents of the 12 Tribes. They don't like being confused with lying white Turks. wink Those you refer to only say they are to escape scrutiny. Identity theft works!

@Bollocks: I'm with you on this Karen Hudes hysteria. Although maybe she's suffering withdrawals from her supposed time at the WB where gold contracts are regularly mistaken for physical gold and both seen on a balance sheet as an "Asset". Mark to future!

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