-- Posted 17 March, 2010 | | Discuss This Article - Comments:
(Is the CFTC forming a plan to end the fraud in progress?)
Silver Stock Report
I will be flying out to Washington DC for the CFTC Public Meeting. I have invited two congressmen and a senator to join me; my representative, Tom McClintock, former presidential candidate Ron Paul, and senator Jim DeMint. Please invite your own congressmen and senators to attend this historic event. Seating capacity is limited to about 100 people in the hearing room, and only about 40-50 for "overflow". The event will be webcast as well.
GATA will be there. http://gata.org/node/8427
If you live in and around the DC area, please contact anyone you know in the media to let them know of this event.
CFTC to Hold Public Meeting to Examine Futures and Options Trading in the Metals Markets
CFTC event: March 25th, 9am to 3pm.
Further details, and pre-registration via email:
I invited the congressmen and senator to attend, to see first hand the corruption of our monetary system at work, or, at least, the apologetics for the greatest fraud of our generation.
The CFTC is the Commodity Futures Trading Commission, and their job is to regulate futures contracts, to prevent fraud. But they protect and encourage fraud! How? They place position limits on the longs (and there should never be limits on what you can buy in a free market), but they refuse to place and enforce position limits on the shorts (who fraudulently sell what they do not have). If anything, to prevent fraud, they should limit the shorts, and not limit the longs.
Also, it is well known that JP Morgan is a major precious metals short, but the CFTC does nothing.
Here are a few links of importance.
This shows that the notional value of JP Morgan's derivatives exceed $72 trillion.
The Bank of International Settlements (BIS) report shows that the notional value of "other precious metals" contracts went up by $107 billion in 6 months.
(Contracts expanded from $96 billion to $203 in a mere 6 months by June 2009, which is an increase of $107 billion, which, at $17/oz., would be 6 billion ounces if it were all silver.)
Yet, the CPM Group at cpmgroup.com shows that world annual silver production is less than 600 million ounces, which is 1/10th of the amount.
This means that the over the counter markets created, over 6 months, a precious metals liability, among banks, to deliver 10 times as much silver as is produced in a year.
Platinum and Palladium markets, the other precious metals that might be included, are just as small as the silver market, and thus, cannot be used as a valid excuse to say that no fraud was involved.
World annual produciton for all three markets stands at about:
Silver: 600 million oz. x $17/oz. = $10.2 billion
Platinum: 8 million oz. x $1500/oz. = $12 billion
Palladium: 8 million oz. x $450/oz. = $3.6 billion
The BIS report, and the OCC report, in contrast with the size of the silver market as reported by the CPM Group, are the three main public resources that prove that there is massively excessive fraud in the precious metals markets.
The CFTC, by doing nothing, is contributing to the ongoing fraud, which is helping to keep alive the fraud of paper money. When this fraud collapses suddenly, like it will, it will wipe out the living standard of most everyone in the USA.
The fraud needs to end smoothly and in a open and transparent manner, not in an emergency or panic as will happen after the upcoming default that is guaranteed to happen, if the CFTC continues to ignore the problem and deny that it exists.
Questions to pose to the CFTC to demonstrate that they are not deceiving us:
(Here's a news article showing people are waking up to the fraud of paper money)
75 years of funny money
1. Why do you claim there is "unrestricted access" to the silver market when you admit there are position limits on the longs which limit their access to the market?
2. Why do you enforce position limits on longs, but not on shorts? http://gata.org/node/8432
3. Why does JP Morgan get to short all the silver they want, with no prosecution?
4. Why does JP Morgan not have a conflict of interest in the silver market by holding the largest position of notional value of derivatives, according to the OCC report, which stands at $72 Trillion, with a T?
5. Why does JP Morgan not have a conflict of interest in the silver market by being the custodian of the silver ETF, SLV, which means they are supposed to be the custodian of 299 million ounces of silver that they owe, which is like a short position.
6. Why is it not a conflict of interest to allow futures contracts for silver to be settled in SLV ETF shares? Aren't SLV shares backed up by futures contracts for silver, or OTC unallocated "bullion" accounts, such as those offered by JP Morgan?
7. The BIS Report reveals that banks, primarily JP Morgan, have collectively created a short position in silver in the "other precious metals" category in the "over the counter" (OTC), non-transparent market, that is about ten times as large as the short positions on the COMEX. The CFTC has no jurisdiction over those market segments. But that market is clearly priced based on COMEX market prices, because the COMEX market transactions are public, whereas the OTC market is not. Thus, the very large OTC short positions are a significant motive for manipulating COMEX prices. The other motive would be keeping the financial system alive, as the $2.5 Trillion US deficit is about $10 billion per day, which is an amount that is equal to the entire world's silver produciton in a year. What is your plan to prevent all of this fraud from ending badly? To just continue to lie to everyone? May I humbly suggest that is not much of a plan?
8. How are futures contracts, which create performance obligations, not likea form of voluntary slavery, which is illegal in the USA, and totally incompatible with free market philosophy?
In my letter to the CFTC from 2003, I asked, "Do the short sellers have the silver to back up their positions?" Back then, my question was ignored. Today, we know both the identity of the primary short seller, JP Morgan, and also, I believe with certainty that I can say that they most certainly do not have the silver to back up the huge $200 billion OTC "other precious metals" position, and the 300 million ETF position, and their COMEX position.
In 2003, you asked, "If you or anyone else has any, specific, first-hand evidence concerning violations of the Commodity Exchange Act, please forward it."
I believe I have provided more than enough evidence. Furthermore, your question is absurd in its face, since you have always known all along the identity of all the entities who are excessively short selling silver; it is you who are vainly failing to keeping their names hidden, that JP Morgan is the large short seller.
My question now is, "What is your plan to prevent the silver delivery default that is surely going to come if you do nothing?"
My plan is to warn my readers. I believe that when the biggest market for price discover in silver, the COMEX, defaults, that the entire silver market will sustain severe disruptions; and the market may see a severe lack of supply, and severely higher prices. Silver products may not be available at all, as major market dealers may take some time to find other more reliable suppliers, and producers may likewise take some time to find others markets to determine a market price for silver.
A plan in Idaho is to allow silver to become money again, by allowing the payment of state taxes in silver.
CFTC: the Common Fraud Training Committee
OPA Silver Letter
Meanwhile, there is a last ditch panic going on to try to pass the hated health care bill. Here's how we can try to stop it:
John Stossel explains:
In more "government is a thief" news, Paul Craig Robers warns that government is about to steal private retirement accounts and pensions:
Is The Recovery Real? March 02, 2010
"Money will have to be found somewhere if the Fed is to avoid printing it. During the Clinton administration a Treasury official proposed a 15 percent capital levy on all private pensions to make up for their tax deferral status. This idea didn't fly, but today a desperate government, which has wasted $3 trillion invading countries that pose no danger to the U.S. and wasted more trillions of dollars combatting a crisis brought on by the government's failure to regulate the financial sector, is likely to steal people's pensions as well as to gut Social Security and Medicare."
KEY QUESTION: HOW WILL YOU BE ABLE TO BUY SILVER TO PROTECT YOU IF YOUR RETIREMENT ACCOUNT HAS BEEN RAIDED, AND THERE IS NO SILVER LEFT TO BUY? ALREADY, MANY PEOPLE HAVE TOLD ME THEY WOULD LIKE TO SELL THEIR HOUSE TO BUY SILVER, BUT THEY HAVE DISCOVERED, TOO LATE, TO THEIR DISMAY, THAT THE HOUSING MARKET IS COMPLETELY ILLIQUID. THEY CAN'T SELL THEIR HOMES!
I strongly advise you to get real gold and silver, at anywhere near today's prices, while you still can.
In case you miss an email, check the archives:
-- Posted 17 March, 2010 | | Discuss This Article - Comments:
Last Three Articles by Jason Hommel, Silver Stock Report