Market manipulations Galore....

Market manipulations Galore, before dashing for the exits....

A Few Questions, One Answer....
By Ted Butler
June 15, 2012

Please read this article carefully because I’m disclosing for the first time that the U.S. government has given JPMorgan the green light to manipulate the silver market. This fact explains the shenanigans in the silver market. It answers all the questions and exposes this tawdry affair for all to see.

The scandal recently became more outrageous. The June Bank Participation Report, as of Tuesday, June 5, along with the COT confirmed that JPMorgan’s silver short position has increased by at least 5,000 contracts in the past two reporting weeks. That is the equivalent of 25 million ounces of silver, truly an enormous amount in a two week period and about equal to all the silver produced and consumed in the world in the same period. I calculate JPMorgan’s net short position in COMEX silver futures to be between 16,000 and 17,000 contracts. JPMorgan has been the sole net commercial silver short seller over the past two weeks. That is the clearest proof yet of manipulation. A market dominated by one buyer or seller is the ultimate definition of manipulation...

The President’s Working Group on Financial Markets answers all my questions. It explains why JPMorgan and the CME remain silent about allegations of manipulation. They have been given legal cover by the Working Group. This also explains why the CFTC says they are conscientiously investigating silver when it is clear they are not. The agency can’t come out and disclose silver was smashed with the full knowledge of the Working Group, so it pretends to go through the motions of investigating. What is going through Gary Gensler’s mind? Is he not tormented by the blatant silver manipulation which runs contrary to all his public utterances? Commodity law is being broken.

If my analysis is correct, what does this mean for silver from here? It will prove to be wildly bullish for the price; maybe not immediately, but on a long term basis. It sets the stage for the really big move in silver. This overt government interference in the silver market will boomerang at some point, just as every attempt at artificial price setting has failed...

Read the rest here

This is an interesting piece by Ted Butler and well worth reading in its entirety. But he does not paint the complete picture for the circumstantial case, which includes motive. GATA does a much better job in their detailed analysis of government interference in the gold market. But Ted's added voice is welcome.

The Greek elections will be Sunday and it is unlikely that any party will win enough votes to establish a stable government on their own, making a difficult coalition a requirement.

The markets were banking on massive and decisive action by the central banks early next week.

Let's see if that is what happens.

Later: A Special Message From Jim Sinclair:

Have you had enough of the manipulation of your gold and silver shares? The more noise we make the closer we come to getting the light shined on these evil people.

Complain about the raids of your investments by short sellers if you have witnessed it.

Hi Jim,

Looking at quite a few issues this afternoon, this same phenomenon occurred with huge volumes right at the close or even trading after the close. THIS is the biggest, most blatant and in your face manipulation since this whole fiasco started. I entered the PM arena in 1998 and thought that I had seen it all. Apparently not! Of course, we will not hear anything from the regulators but we must yell louder and louder. To suffer in silence is madness and cowardly.

CIGA Bill

Dear Bill,

I am asking my readers that if any gold shares they hold were sneak attacked after the close tonight that they raise total hell with both the regulators and the exchange.

I am asking for 400,000 complaints on Monday morning. Suffering in silence is madness. These people do not want sunlight on themselves so our only weapon is to turn as much light on as we can.

Dear Friends,

Please complain about the blatant manipulation of your company today to the following:

SEC – http://www.sec.gov/complaint/select.shtml

Amex – http://usequities.nyx.com/customer-support

Apparently I was not the only one who could not bear to watch this. As I said, it was iffy going, but Jim DeMint pushed me right over the edge.


Senators Grovel, Embarrass Themselves at Dimon Hearing - Rolling Stone


Former Goldman Sachs Director Rajat Gupta Found Guilty on Four Counts of Insider Trading....


Jury deliberated only two days, finding Gupta guilty on four counts of insider trading, and innocent of two counts.

This was clearly a case of failing to maintain GPS coordinates when burying the bodies for your masters, and failing to provide sufficient campaign donations to the plutocracy.

The pampered princes have thrown another one of their Immortals to the wolves.

So Lloyd has given up one of his thralls, and a whale sized proxy at that. But nonetheless still prey whose moment had come.

Who will take the axe for Jon Corzine and Jamie Dimon?

Key Takeaway: Unless you are a made member of the Billionaire Boys Club, too big to jail, and not merely a faithful servant, take the deal...

Daily Word: Anagnorisis (an·ag·no·ri·sis) from the Greek anagnōrizein, to recognize. See also hamartia

the point in the plot, especially a tragedy, at which the protagonist recognizes their or some other character's true identity and motivation, or discovers the true nature of their own situation


From Bloomberg:

"Gupta, 63, was found guilty of securities fraud and conspiracy by a federal jury in Manhattan today in its second day of deliberations. The trial began May 21. Securities fraud carries a maximum prison sentence of twenty years. Conspiracy carries a five-year maximum prison sentence. He will remain free on bail until his sentencing on Oct. 18...

Gupta is the most prominent of those convicted at trial or to plead guilty since the nationwide crackdown began in October 2009. To date, the U.S. has brought cases against 66 traders and their sources from Wall Street to Silicon Valley. No one has won an acquittal; six cases are pending.

Besides his tenure at Goldman Sachs and McKinsey, which he ran from 1994 to 2003, the Kolkata-born Gupta served on the boards of the Rockefeller Foundation and the Bill & Melinda Gates Foundation. He is also a co-founder of the Indian School of Business in Hyderabad."