The self-doubting going on around the metals community recently about the facts of manipulation are, after all this time, downright annoying.
Ted Butler’s point has always been that what’s occurring is manipulation not because the spread positions and hedges are unbalanced, or because it’s naked shorting, but because there exists a grossly disproportionate concentration and collusion of positions within the bullion bank activities in silver.
As of two weeks ago, JP Morgan alone held more than 1/3 of ALL short positions in COMEX silver. THAT is concentration that would’ve blown the Hunt brothers’ minds.
If the positions that existed by the bullion banks(BB’s) were just evenly, non-concentrated spread hedges as Jim Sinclair claimed this weekend.….silver wouldn’t have killed Bear Stearns, and consequently the 2008 financial crisis wouldn’t have gone down at the time it did.
In the 70′s when Sinclair et al were doing what they did best….the US govt didn’t have a debt to GDP ratio of 110%. Now it does.
In the 70′s when Sinclair et al were doing what they did best….most US debt was held by Americans. Now it’s held by foreigners and the Fed.
In the 70′s when Sinclair et al were doing what they did best…..the 1.5 quadrillion OTC derivative market didn’t exist, and wasn’t weighing down every major bank’s balance sheet to the nth degree.
Remember what Sinclair said? Do you remember who was the plaintiff in the lawsuit that shut down the CFTC’s silver position limit ruling in the first place?
It was the ISDA. Now….why would the ISDA care enough about the lil ole $30 billion silver market to personally launch a court case to get an emergency ruling to stop position limits in silver? That’s simple: because the silver(and gold) shorts ARE dangerous, they AREN’T just “smart trading policy”, they ARE a government policy to maintain the con just a bit longer, and because a silver spike CAN kill fiat money faith faster than one look at Hillary Clinton can kill a perfectly good buzz.
Did we not read a dis-info piece from another mystery trader who said that the BB’s can and should be able to hold a 25% position of the entire market, simply because those banks are 1 to 1 offset and balanced with phyzz to paper? Well, they’re not. Citi does not have 300 million oz of phyzz (which is what it would take to offset their $9.5 billion silver derivative play.)
Did we not see Andy Maguire expertly remind us that that the mystery trader’s position was nonsense because it ignored the grossly disproportionate silver and gold derivative numbers?
Have we not heard repeatedly from GATA and Bill Murphy that JPM is having serious, deathly issues with its silver short position? Doesn’t sound like an ingenious move, or good trading to me.
This isn’t the 70′s. Things are totally different this time. It’s not about simply maximizing profit: holding these things down is foundational to keeping the system going even one more quarter.
JPM has been found guilty of manipulation by governing officials in cotton.
JPM has been found guilty of manipulation by governing officials in energy.
And JPM is well-known to be guilty of manipulation by governing officials in silver.
The bullion bank traders are not merely brilliant, ingenious folk doing good business…..these people are criminals with a license to kill.