Futures Manipulation - Third Branch Getting Involved

Thu, Jul 31, 2014 - 12:46am

Whether this is misplaced hope or a sign of good things to come is certainly anything but certain. Articles abound regarding recent lawsuits filed against CME and big banks, for example:




I am just buried in pressing deadlines, but my plan is to dig into the CME lawsuit, and give an analytical, critical opinion on the likelihood of that lawsuit surving a 12(b)(6) motion to dismiss as well as the likelihood of any real discovery getting done. Give me some time, and I will complete my analysis and post my thoughts.

For now, though, read these articles, and ask some questions, like these:

(1) Why are these lawsuits getting filed now?

(2) Are these lawsuits any sort of a planned distraction so that we do not focus upon the real swindle?

(3) In light of the other wordly, newsworthy headlines, not the least of which is the outbreak of the Ebola virus in what seems to be a radically more virulent manner, do the lawsuits really matter that much at all in the bigger picture?

(4) Congress, that bastion of buffoonery, has just authorized a law suit against Obummer. Not only does this immediately reek of cowardice, but it seems readily apparent to be unconstitutional on its face. Just like the President could never order Congress to do anything and try to enforce it with a lawsuit, the Congress cannot use the judiciary to force the executive branch to take or cease taking action. Congress is extremely powerful, when acting within the Constitutional framework, that is, as a unified body on behalf of the people. But, when the members, along party lines, vote to allow a lawsuit to be filed against the President, we have truly turned into a banana republic. What's next, defaulting on debts followed by a military coup? How can the third branch do anything but dismiss the lawsuit?

Similarly, understand the nature of judicial relief. Federal lawsuits, especially class actions, are not really conceived to redress a real legal problem. Rather, they are more geared to enrich lawyers who bring them as well as the top tier law firms and their mega wealthy lawyers who defend the elites such as the TBTF banks.

So, unlike the pundits who are selling their books, I am not immediately enamored of all the sudden lawsuits.

Like frequent poster Madhatter wrote at least a year ago, one of the most logical lawsuits that could be filed, if one wanted to truly get to the bottom of the manipulation and suppression issue, is a lawsuit based on either common law fraud, or federal law such as the Sherman Antitrust Act. If the banks were acting together to suppress the price of metal, then that would seem rather clearly to be a "contract, combination or conspiracy in restraint of trade." Why then, is not a single lawsuit filed alleging this?

My theory on this is truly simple. There is no lawsuit because there is NO incentive to do so. There is not enough reward relative to the risk. Until that equation changes, I will not hold my breath.

On the issue of the lawsuits, if one posts a link, I will do my best to download the complaint and take a look at it. So, by all means, post away and include the lawsuits the court and case number if available. Thanks in advance!

About the Author


Spartacus Rex
Jul 31, 2014 - 1:06am

Branching Out

On a new thread

re: "(1) Why are these lawsuits getting filed now?"

Uh, Somebody smells Money?

Spartacus Rex
Jul 31, 2014 - 1:17am

@ Cal

Re: "Congress cannot use the judiciary to force the executive branch to take or cease taking action."

The POTUS has expressed Duties and limitations under the U.S. Constitution. If the POTUS should be in dereliction of such duties, or attempts to usurp power and/or authority, I really would love to hear your Points & Authorities on why either the legislative branch, or the Supreme Court sua sponte, could not avail a Writ of Mandamus, or Writ of Prohibition, to effect adherence to the U.S. Constitution, especially when it is their sworn duty to do so.

What do you otherwise imagine such Writs even exist for???

And who else other than the co-equal branches of gov't do you suppose has a greater standing to bring such?

Cheers, S. Rex

Spartacus Rex
Jul 31, 2014 - 1:42am

Obama "So Sue Me!"

Video unavailable
Jul 31, 2014 - 2:59am

touch um all

4 bagger brah !!

"What's next, defaulting on debts followed by a military coup?"

now that is the question. when and where could be the next.

of course we the phyzz is the best...so

"If the banks were acting together to suppress the price of metal, then that would seem rather clearly to be a "contract, combination or conspiracy in restraint of trade." Why then, is not a single lawsuit filed alleging this?"

can't wait to read your thoughts on the lastest CME bs. i do like that attitude dood. lets hope for the best.

Spartacus Rex
Jul 31, 2014 - 4:37am

Silver Eagle Sales Over 26 Million for the Year


US Mint Sales Report:


Collectors take note:

Next week,(August 5th) the US Mint will begin sales for the 50th Anniversary Kennedy Half Dollar Gold Proof Coin. This product is struck in 3/4 oz of 24 karat gold and features the original portrait design and a dual date of “1964-2014″.


Safety Dan
Jul 31, 2014 - 4:37am

What you haven’t been told

What you haven’t been told about Obamacare

Unless you’ve been living under a rock, you’re familiar with the “Affordable Care Act” – otherwise known as “Obamacare” – and you probably have some strong opinions about it.

But chances are, those opinions are based on misconceptions and half-truths you’ve heard from the media and politicians.

Liberals have cheered Obamacare for bringing healthcare to “everyone”… while conservatives have denounced it as “socialized medicine,” and even “communism.” But the fact is, both of these opinions are wrong.


Jul 31, 2014 - 6:41am

The system is rigged. The

The system is rigged. The system is dishonest. 'Government' should be an institution that protects people from fraud and dishonesty..... If fact that is ALL that is required of 'government'; to lock up bad people who cause loss or harm to others.

Fractional Reserve Banking gets very little mention on this site, which is sad, because it is the key fundamental to ALL manipulation......not forgetting of course the threat of physical violence to the ultimate underwriter.....the tax payer.

In short, without the *tax payer* there's NO Fractional Reserve Banking; without Fractional Reserve Banking there's NO manipulation.

Manipulation of real stuff is what HAS to be done when money is allowed to be created from thin air.

* tax payers here are really those who are free to purchase goods and services they themselves deemed to be good value.

How many would contribute freely to a buy banker payout..... can you imagine the request wording by government to 'it's' people. ...... (sounds like government owns people)

......."we need to bail out some of our bankers friends, we reckon it's going to come to around £$2000 a head......so could you, if that's OK with you, please sent a cheque (check) for £$2000....or should we load that debt onto your children / grandchildren"

Jul 31, 2014 - 7:21am

forms of silver: 90% vs. bars

Here's something I just ran across in my pile of old clippings. (This one is 10 years old!) I'm posting here with the idea of getting some feedback from anyone who has thoughts on the matter. Yes, I know 90% would be a preferred form in some scenarios (total collapse; direct use as money; barterable). But for bulk investment purposes, under less-extreme circumstances... ? Your thoughts are welcome.

Author: RossL
Subject: 1980 Ag
Number: 8301 :: Date/Time: 11-28-2004 :: 17:24
@ Galearis
The 1980 peak in silver was a special case. The refineries had
3 months supply of 90% silver waiting to be melted. Due to
this, bags of 90% silver never did reach the 35x face value
that $50/ounce implied. They were discounted due to the risk
involved in holding for 3 months. The only form of silver that
really did hit $50 was .999 bars that could be delivered on
futures contracts. All other forms were discounted.
The question is... could it happen again? As you mentioned,
the supply and demand situation is very different. As part of
due diligence it is necessary to explore every angle possible.

Jul 31, 2014 - 8:14am

San Bernadino


Saw yesterday that your lovely city has decided it has a new tax source...Pot Stores!

Wondering when the "revinoors" will start hitting up those illegal pot fields.

Will DHS be the new "revinoors"?

Ah, the world is a funny place....

Jul 31, 2014 - 8:50am

Unrelated anecdote

Entirely unrelated at all to the thread topic.

In light of the fantastical GDP number and stocks at all time highs, the observable wealth effect should be incredible. I'm currently at the Smoky Mountain National Park area. The crowds in the commercial areas are way off, down 35% or more from what I normally see.

Of course this might be a sampling error, but I've vacationed in this area for nearly 30 years and have seen a lot of variable but steady growth. The crowds in the free park areas are within what I would consider to be normal, but the commercial areas don't seem to have a sustainable customer base. There has been a lot of construction over the past 15 years to accommodate the greater number of visitors, which now only seems to accentuate the sharp decline in foot traffic.

It looks like the empty mall syndrome is starting to hit this popular tourist destination.

Jul 31, 2014 - 9:15am


If anything we keep our sense of humor and don't allow this to be taken from us! "Congress, that bastion of buffoonery, has just authorized a law suit against Obummer." Good am chuckle. Rome burns and the red arse baboons are in session playing with matches.

"Are these lawsuits any sort of a planned distraction so that we do not focus upon the real swindle?" You have feel the long pole of misdirection in any and all which comes up front and to the public. I've posted here many times the wash, rinse, repeat cycle; for fleecing citizens, leaves little in the lint trap for distribution among the peeps seeking restitution. All the fraud, theft, and corruption adds up globally to less than a penny of total bankstering profits in fines ands no one goes to jail. All teflons have get out of jail cards free from high ranking banksters to CONgress & SINate. Lawsuits are just an intellectual process of pounding sand to keep the children from rioting in the sand box.

You're untiring thrust into the shifting depths of the beach front of justice is commendable. We'll need warriors as yourself on our return to rule of law as a common legacy for freedom among we the people. Don't believe we can overcome pounding sand on the corrupted beach front. Like the Ezero before the citizens fled to the colonies and picked their own beach front away from the barristers home front to do battle. We'll need gather to where we make our own stand and forget about burning up our energies in the place the corrupted choose for battle. It also is a process we the people we'll learn, as we unite and stand against tyranny.

Jul 31, 2014 - 9:32am


The question is... will any form of silver be better to have in your hand than any piece of ponzi fraud paper? I would say yes, but that is just my opinion. If you wait for all of the lights to turn green before you head downtown, you are never going to get downtown. Look at the value of that 90% vs. the paper since 1913 and realize that the paper is in the final death throes. You would be better off with a 10% silver nipple ring than a fraudulent debt instrument. My two cents. Whether you use Quilted Northern, Scotts, or a fig leaf to wipe your ass, they are all better than not wiping your ass.

Jul 31, 2014 - 10:03am

Cal or others-please comment

Cal or others-please comment:

What Constitutional remedies are there for solving the Obama usurpation of power, besides impeachment?

Jul 31, 2014 - 10:11am



Easy. Voting.

Otherwise, impeachment is the only proper Constitutional method.

Those in charge of the House are corrupt and beholden. They will not pull the trigger on impeachment. As such, there will be two more years of the same.

This HAS to be by design. My senses are acute, and I am watching intently. Something is happening, and public perception is actively being managed to focus away from what is really going on.

erewenguy alan2102
Jul 31, 2014 - 10:32am

90% vs bars

My personal silver holdings consist of:

.999 and .9999 govt issued bullion

.999 private mint rounds and bars

.925 sovereign coins

.90 US coins (junk and numismatic)

.72 sovereign coins

.40 US coins

.35 US coins

sterling (.925) jewelry and utensils

coin (.90) utensils

I'm probably more of a random accumulator and look for the best quality and deals possible, but I'm not a silver snob. If I can buy a 5 oz sterling silver trophy for $5, or a small collection of war nickels near face value, well, I've done so, and would do so again.

I'm sure there will be different premiums on each of these items as the price increases, but that will allow me to sell off what I consider to be my less desirable holdings while retaining the best. I don't see myself ever completely divesting the most valuable pieces. My goal right now is ounces. Price appreciation will help me to sell off my lower quality holdings with no regrets.

Jul 31, 2014 - 12:12pm

90% (junk) silver coins . . .

are the best, in my opinion. Why?

They are still real U.S. coins, so they are recognized as money. Their face value is the floor--they won't go to zero (nor will other forms of silver).

Most pre-1965 coins are not faked. It is way too costly at current silver prices to make fakes of Roosevelt dimes, or even Mercuries, except for the rare dates like the 1916.

Even quarters are pretty safe. Not sure about halves--Chinese entrepreneurs might have figured it worth faking them due to their size (contain about 1/3rd of an ounce of silver each).

Silver dollars I know are faked, so beware if getting a deal too good to be true.

Even so, I own some .999 and .9999 coins, bars, etc. I like anything silver and gold, at a good fiat price.

Jul 31, 2014 - 12:16pm

AC doctor re: Obama remedies . . .

It's not Constitutional, but the DoI says:

"That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness."

A coup would be a remedy. Maybe that is where this is all headed, by intention.

Jul 31, 2014 - 12:26pm

There's A Big Rumor Going Around About How to Rescue Argentina

Argentina's President Cristina Fernandez de Kirchner speaks during a rally to celebrate the 202nd anniversary of the Revolucion de Mayo (May Revolution) in the Patagonian city of San Carlos de Bariloche, May 25, 2012. The European Union filed a suit against Argentina's import restrictions with the World Trade Organization (WTO) on Friday, intensifying the disputes between the South American nation and its trading partners.

Think of last night's Argentine default as an explosion. Now even 24 hours later the dust has yet to clear, and what will remain when it does is the stuff of questions and rumors —a heady mix of speculation based on a history that tells very little.

Remember: A country has never chosen to default before.

The biggest rumor going around right now is a good one for Argentina. The word is that private banks including JP Morgan, HSBC, and Citigroup are in negotiations to buy over $1.3 billion in debt from NML Capital, the group of investors that have sued the country for about a decade.

JP Morgan has declined to comment, though Bloomberg reports that the bank has held talks with Aregntina and that those talks are ongoing.


Jul 31, 2014 - 12:41pm

JPM buying bonds will still triger RUFO clause

JPM/FED buying bonds will still trigger RUFO clause aka default of all bonds. ISDA still has to rule on the default.-AC

Update: According to Ambito the deal is a no go as Italian bondholders (and likely all others) claim that a private deal with a buyer of holdout bonds would also trigger the RUFO clause, thus making the deal meaningless and forcing Argentina to payout billions more. From Ambito:

Italian bondholders say a private agreement also would trigger the clause RUFO

The representative of a group of debt holders Argentina Italy, Tulio Zembo said that any agreement between private RUFO also would trigger the clause.

"I do not understand the idea of banks because that would trigger the RUFO" Economy Minister said yesterday. Please do not help us because it makes the situation worse," said Zembo in dialogue with Radio La Red

"All that is settlement discussion will have to olvidárselo until January 2015, because you can not argue," he said.

For the representative of Italian bondholders "the drama of a default is when the debtor is kneeling and can not pay, that would be a problem, here's a serious problem but should concentrate all legal guns to go," he said by way of conclusion.


Jul 31, 2014 - 12:48pm

‘Trade war can take years’

“The trigger has been pulled. After months of great hesitation, the EU decided on Tuesday to impose economic sanctions against Russia. It is the beginning of a protracted trade war with major financial implications”, writes De Volkskrant. The Dutch newspaper thinks “the EU had no other possibility”: the downing of the Malaysian Boeing MH17 on July 17 by a Russian missile was the “proverbial gamechanger”. The sanctions package is possibly just the beginning of a trade war that can take years. The arms embargo on China for exemple goes back to 1989. De Volkskrant adds that —

for the relatives of flight MH 17’s passengers, time might be standing still for the moment; things are different for companies who have to deal with the sanctions. For them, time is money.


Jul 31, 2014 - 12:54pm
Jul 31, 2014 - 1:02pm
Jul 31, 2014 - 1:19pm

CL- maybe how the 'lawsuits' fit in the grand fiat con

the lawsuits imply that the markets are legitimate (that the chart numbers are the results of actual trading, rather than manufactured "hoax" data)

And now look what they are positioned to do in their larger "save the system by replacing the USD as the reserve currency" plan.

With all of these lawsuits and "market manipulation" stories, they can move the Silver and Gold charts way UP, and sell the much higher numbers as being the ...Result of Justice Coming To The Markets! ...and not the sign of the system failing that it might otherwise have been perceived as being.

So, the lawsuits-

  • imply market (chart) legitimacy
  • position the system to leverage the charts in their more grandiose New Reserve Currency scheme


alan2102 ag1969
Jul 31, 2014 - 1:32pm


"The question is... will any form of silver be better to have in your hand than any piece of ponzi fraud paper? I would say yes, but that is just my opinion. If you wait for all of the lights to turn green before you head downtown, you are never going to get downtown."

I totally agree. I was asking the question knowing that it is secondary to the physical-vs.-paper question. But I still think it IS a valid question.

The Doc
Jul 31, 2014 - 1:49pm



The contributors are many as actors in the American Tragedy, to cause the systemic breakdown failed state. Faulty monetary policy, economic policy, and political policy have caused the resulting failure. The primary perpetrators are the central bankers, led by Greenspan and Bernanke.
Refusal to Repatriate German gold was a crime out of the gate. The motive was to conceal the appropriation (re-hypothecation) of German official gold accounts. The Germans are on notice of gold thefts by their own allies.Germany will work with the Eastern superpowers to develop a USDollar alternative and a Gold Trade Standard.
The United States has given the world two choices: war to defend the USDollar, versus work with Eastern Alliance toward the Gold Standard.
The motive for actions taken are clearly in defense of the King Dollar Regime. The responses taken are clearly to reinstate the Gold Trade Standard and no longer deal with a toxic USDollar for trade and banking. The unintended consequences are uniform if not universal.
The outcome will be to develop the Eastern Gold Trade Standard while the entire Western system crumbles, deteriorates, sinks, and implodes.


Jul 31, 2014 - 1:57pm

alan2102 best form of Silver to hold

jmho, but... when the masses scramble for Silver, they are going to prefer .999 over junk. They will not have the same sentimental/historical considerations that a lot of the life-long collectors and stackers have.

With the fake markets coming unglued, and the price of Silver and Gold skyrocketing, the masses will be making a real time "holy $h!t" decision. Silver Eagles, Maples, 1 oz., 10 oz. .999 bars. etc. clearly marked with weight and purity.

They aren't going to want to hear "well, now this 1962 dime here is x% silver, and it usually weighs about .x of an oz., ...but it does appear to be worn, but hey, all we have to do is weigh this thing, and then do a series of mathematical calculations, and . .. . and .... "

not to say that I don't have some junk silver, but as this train gets closer the details are getting clearer and imo the scrambling masses are going to want their Silver just like they want their gadgets... ready to pick up and go without a lot of thinking. jmho

El Gordo
Jul 31, 2014 - 2:56pm

Congressional litigation

I'm not a lawyer, but if I remember my 8th grade civics class, it would seem to me that the Judiciary will not let the Legislative Branch dump that skunk on its doorstep. I suspect that it will tell Congress that it has sufficient remedies at its disposal to resolve the issue on its own and toss the lawsuit. However, given that we are now a lawless society, a society of men rather than of laws, it is conceivable that the Judiciary could perceive an opportunity to seize more power from/over each of the other two branches of government by hearing the case. That circus might absorb more TV and internet bandwith than is currently available in the US and might lead to a couple of new 24 hours news channels and create a few new careers in broadcast journalism, but other than that would provide very little of substance; while at the same time taking Ukraine, Israel, immigration, and every other Presidential scandal off the front page. So, as a layman, I have to rate it a tossup at this juncture even though logic would dictate tossing the litigation.

Jul 31, 2014 - 3:55pm

Since it is a slow day...

I just saw an article linked at 321gold about a Monet selling for $57.3 million ponzi coupons.


OK, yeah, artwork is a good wealth preserver. But, included in that article, is that this painting:

Sold for .5 million ponzi coupons.

"Mondrian fetches high price

Another famous painting which sold at the auction on Monday was a work by Dutch artist Piet Mondrian entitled Composition with Red, Blue and Grey.

It also achieved the second-highest price ever paid for one of his works at auction.

The 1927 piece, which sold to an anonymous bidder for 15.2 million pounds (.5 million), features a distinctive combination of prime colours and is unusually large."

So as I stared at this in amazement that anyone would part with so much currency for such a ridiculous piece of "Art", it hit me as to why this image is so deeply embedded in our culture that it would command such a high price:

And there you have it. While people are starving and dying and Rome is on fire, $27.5 million goes to a close up of the rear quarter panel.

The Partridge Family Opening TV Theme Song 1970
Jul 31, 2014 - 3:57pm

General mkt observation today.

Unless there's follow through to the downside FRYday, this is just another set up to reel in the bears and hand'em their heads again tomorrow. If and It's a very big if, the follow through comes to the downside tomorrow we're headed for trouble in the fiat bubble folks.

Jul 31, 2014 - 3:58pm

SS121, ancientmoney


SS121, you make a good argument.

Ancientmoney, I appreciate the point about the difficulty (improbability) of faked smaller coins.

I still wonder if that passage from my original post might be relevant; i.e. the idea that huge amounts of 90% will be sitting at refiners, waiting weeks or months to be melted, and therefore you can only get a discounted price for it since the refiner has to hedge against whatever might happen in the interim (like silver topping and plunging down again, as it is inclined to do; volatile baby). This would come into play in a situation where you wanted to pull the trigger on a larger portion of a stash -- silver having reached a good-enough sell point for you -- in order to switch into something else, perhaps gold, perhaps R.E., whatever. I wonder how much 90% remains out there that might actually show up at a refiner, given a high enough silver price. There used to be enormous quantities, but enormous quantities were in fact melted down during the big 1979-80 run.

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