COMEX Crimes: Your Tax $ at Work

tedbutler_smCheck out Ted Butler’s (one of my heroes) latest column. He asks some great questions… (I’ve edited together some excerpts below.)

BTW: Notice how you can never buy silver or gold at the spot price anymore? It’s always at least 15% above spot price IF you can find it?

Remember this: before March 2008 (when the events described below happened) silver was easy to get and you paid just 18 cents or so over spot. Now the US Mint is rationing gold and silver Eagles, they’ve halted production of fractional Gold Eagles, and silver & gold carry delivery lead-times measured in weeks or months. You can thank the government’s PPT (Plunge Protection Team) for this mess.

Q: How did we get to the point where a big U.S. bank, most likely JP Morgan Chase, has come to manipulate the silver (and gold) market?

Q: Why are U.S. banks allowed to speculate in commodity markets at all, when they have caused such havoc already with their failed trading in just about everything they touched?

Q: Didn’t they do enough damage with subprime mortgages and credit default swaps?

Q: Why should taxpayers subsidize bank commodity speculation and manipulation?

Q: When did the regulators stop enforcing the law and switch over to defending the criminal element?

Dead Bodies
As bad as the lack of justice for past misdeeds is to the public psyche, there is something even worse: regulators ignoring an obvious crime in progress, especially when the evidence of that crime is readily available and published by the regulator [CFTC] itself.

The CFTC is on their third silver investigation within five years, while at the same time reporting that the short concentration has grown to the highest level in that time. This is akin to tripping over and not seeing the dead body in a murder investigation.

The Crime: In Progress Now
market-riggingAs I write this article, the big short(s) is attempting to rig the silver and gold markets lower to trip off technical fund selling below the 50 day moving averages. Will that attempt succeed? I don’t know. What I do know is that this is market rigging of the highest order. I also know that the big short is becoming increasingly isolated and more learn of the manipulation daily. That’s good for us, bad for them.

In the case of silver, while the manipulation has been ongoing for many years, the criminality kicked into high gear when JP Morgan took over Bear Stearns, at the government’s request, last March [2008].

Who Started the Crime?
Bear Stearns was the holder of the large concentrated short silver position and it was inherited by Morgan. In JP Morgan’s defense, it does not appear they initiated the concentrated silver short position. It was excess baggage from the forced takeover of Bear.

The Treasury Department and Federal Reserve backstopped Morgan and agreed to hold them harmless for financial losses and for criminal involvement in the silver manipulation. The financial system was weak enough at the time of Bear Stearns’ failure, that a blowup in silver had to be avoided. JP Morgan was given the go-ahead to “manage” and control Bear Stearns’ silver short position directly by the Treasury.

JP Morgan: Above the Law
prince-charming-v2smWhile it is understandable that JP Morgan would accept the Treasury Department’s request, and that the avoidance of a potential financial panic is always a good thing, panics are short-term events. A year has now passed, and the manipulation is still in force, stronger than ever.

What started as a temporary remedy for a short-term emergency, has evolved into a continuance of the long-term silver manipulation. This is wrong on every level. The U.S. is a nation governed by the rule of law. No one is above the law. Not the Treasury Department, not JP Morgan, not the CFTC. If my findings are accurate, then the passage of time indicates that there is potential real criminality here.

Why Does the CFTC Look the Other Way?
As far as the CFTC, it is a weak agency, incapable of over-ruling a directive from the Treasury Department. They had no choice but to allow the silver market to continue to be manipulated by allowing the transfer of the concentrated short position from Bear Stearns to JP Morgan.

Besides, the CFTC already dropped the ball by allowing the concentrated short position to come into existence at Bear Stearns in the first place and denying for years that the silver manipulation existed. They had no choice but to go along. They couldn’t stand up to Treasury if they wanted to. [Editor’s note: the CFTC is actually a member of the Plunge Protection Team (created by Executive Order # 12631) whose stated purpose is to manipulate markets. [link] See also Bailout Charade: The Hidden Reason Why]

Will It Ever End?
So how does this end, or can JP Morgan, Treasury and the CFTC allow this crime to continue indefinitely? No one has a lock on the future, but there is no easy way out for them. This cannot be resolved quietly or orderly, but it must and will be resolved.

Even if the manipulators don’t blink first, the growing shortages in the wholesale physical market will bring this scam to a head. That’s why you must own silver. [more]

JPMorgan Is Fed’s Fair-Haired Golden Boy
“Federal Reserve”: NO On Both Claims
CFTC to Investigate Silver Manipulation

“The Hunts Tried to Corner the Silver Market” Myth
Bailout Charade: The Hidden Reason Why


If You Have No Silver I’ll Give You Some of Mine

***  Update 3/17/2009: 
***  Sorry, but I’ve run out of silver to give away.
***  (I’ve given away 73 ounces all together, worth about $1,050. )

Click to Enlarge

Click to Enlarge

Yes, it’s true.

When someone I meet listens to me rant about how “ya gotta get some silver, dude, cuz it’s really GONNA HIT THE FAN SOON” I usually give them a 1 oz bar free. Figure it’ll keep ’em thinkin’ about protecting themselves with some more.

Now, it’s true WE haven’t met. But, if you’ll read this post Market Predictions for 2009-2010 I’ll consider it listening to me rant about PROTECTING YOURSELF and your family for what’s heading our way by 2011 (most likely sooner).

you don’t have any silver bullion now, and
2) you promise not to turn around and sell it on eBay, etc (c’mon, cross your heart now), and
3) you promise not to post this on some web site where I’ll get flooded with requests from greedy people (let’s just keep it between us, OK?)
I’ll send you an ounce on me.

And, yes, I’ll pay the postage, too. Sure, I’ll send it overseas if that’s where you live. Just leave your name & address in the “comments’ below. Once your silver’s in the mail I’ll blank out your address for safety.

Now remember: you’re getting gold or silver more for protection than investment, OK?

If you already have gold and silver CONGRATS! And thank you for protecting yourself and your family. Maybe you might even consider sharing some of yours with one of your friends? It will help them more than just words.


Monday's Mailing: This is startin' to feel like work!

Some of the people I’ve given an ounce to:
*David, Alice, James, Alaric, Don, Kevin, Tiff, Seth, Mike the UPS guy (worked up a sweat schlepping in silver from Apmex), Eric, Loren, J-Boy, Kim, Brad, Rachel, Hoov, Maury the Schwann’s guy, my dentist Phil S., Sandy, Patty, Noel, Joel, Alice, Ellen, Allen, Tonya, Austin, Baby Bri, Morgan, Kyle, Trev, Joe, Tom, the A/C guy, John F., Vincent F., Margaret L, T.K. Kreis, Brian Myres, Barry L., Barry Lightfoot, Jon Vere, Scott Schaefer, Dan McCutchan, Rhett, P. Pavlic, Connally Perry, Anne White, Brenda Arnold, Toni Palazzolo, Brad Kaniewski, Visah Nixon, Chris Cusak, Jure Gorjanc, John Pringle, Mark Perkins, Justin Asche, Mark Woodhouse, Shawn Foreman, Troy Uhlman, Scott Decker, Gary Schuberth, William Wu, Colin, Jaxon Mehlhoff, Alex Hoover, Jason, Michael McLain, R.W. Shade, Kaleb Harris, Arnold Frey, Steve Scott, N. Gardner

Most people say “if it’s too good to be true it probably is.” Guess what? This is one of those rare cases where it’s not.


***  Update 3/17/2009: 
***  Sorry, but I’ve run out of silver to give away.
***  (I’ve given away 73 ounces all together, worth about $1,050. )


Is this for real?

What’s the catch?
This is for silver newbies only. Don’t ask me for a free oz of silver if you already own some. And, don’t ask for more than 1 ounce.

How do you make money off this?
I don’t; that’s not my goal.

What is your goal? =)
To be happy. Helping people, especially people I don’t know, makes me happy. Ever paid for the car behind you at the drive-through? Same thing.

How many can I have?
One (per family/address).

Do I have to give you my address?
Um, yeah. Although, if you live in Omaha, Nebraska you could take me out to lunch…

How do I know I can trust you with my personal info?
Uh, I can’t think of a way. My wife thinks I’m nice enough (most of the time) and my 16 year old son still talks to me. Is that good enough?

Are you gonna send me junk mail/offers/solicitations?
Nope. I’m not selling anything.

Will you sell/give my info to someone else?
Nope again.

Can you send me an extra oz for my sister/brother/father?
No. Have them ask for their own.

How long are you gonna do this?
Until I run out or get tired of running to the post office.

How much do you have?
Enough for now.

What kind of silver is it?
I’m giving away some silver “art” bars I bought from APMEX a couple years back. They are 1 troy oz .999 fine silver bullion bars with (sometimes stupid-looking) embossed images on the front. Most were minted in the 1970s.

I bought them ‘cuz they were the cheapest form I could get. I now own a lot of 1oz Silver Eagles, some 5 and 10 oz bars, some “junk” US silver coins, and a bunch of 100 oz Johnson/Matthey & Englehard bars.

Can I choose my bar?
Um, OK. Click the image above to see what I have right now. Gimme your first and second choice, I’ll try to accomodate.

I don’t like the one you sent me. Can I send it back and get another?
Aw, c’mon. Just send it back and I’ll refund every penny you (didn’t) pay.

More Good Stuff:
Newsweek: “Gold Is the Currency of Ages”
US Mint Clamps Down on Gold
He Chooses Silver Over Gold 2 Beat Inflation

Silver Headin’ for $4,000/oz?
“Silver is for the optimist, gold for the pessimist.”

How Do I Buy Gold/Silver? How Much Does It Cost?
Gold & Silver Dealers: My Experiences
REAL Silver/Gold Prices on eBay
A Visit to APMEX Headquarters

Don’t Buy Silver & Gold ETFs, Get Real, Get Physical:
“SLV” in Danger!
Uncle Sam’s Gold Grab
ETFs Suddenly Frozen
SLV in Trouble