The CFTC voted 3-2 Thursday to move forward with an appeal of a federal district judge’s September ruling vacating the position limits rule mandated by Dodd-Frank and approved by the CFTC.

Anyone believe Mr. Dimon and Mr. Blankfein do not have appeals judges in their pocket as well?

Washington, DCThe Commodity Futures Trading Commission (CFTC) will move forward with an appeal of a federal district court’s decision vacating the position limits rule.  The Commission approved the appeal on a 3-2 vote.

“As part of the Dodd-Frank Act, Congress directed the Commission to limit promptly speculative positions in physical commodity futures and options contracts and economically equivalent swaps. The rule addresses Congress’ concern that that no single trader be permitted to obtain too large a share of the market, and that derivatives markets remain fair and competitive. I believe it is critically important that these position limits be established as Congress required. I support the Commission’s continued efforts to put in place position limits on speculative positions by appealing the September ruling,” said CFTC Chairman Gary Gensler.

Source: CFTC

    • CFTC Commisioners Jill Sommers and Scott O’Malia are the chronic dissenters and always try to fillibuster anything contrary to Bullion Banks interests. Jill Sommers presided over John Corizine’s kangaroo court CFTC hearing and she also tried to stop a public comment on precious metals limits. OMalia and Sommers also try to thwart derivatives regulation.
      They are in my mind, two of the most corrupt regulators in business. Hopefully one day, their records will be gone over, and they will be in prison.

  1. That ought to kick the can a few months at least.  The judge that nullified the original had no authority to tell our regulators they couldn’t regulate, that power remains with the congress.  The CFTC should have approached the committee they report to for a legislative fix, instead of more drawn out legal proceedings.

    • If the federal district court acted in error and the ruling is not supported by the current law, then no legislative remedy is possible or needed.  What is needed, however, is a clarifying ruling from a higher court as to what Dodd-Frank does or does not require.  Getting that should not be difficult. If they do, then this whole episode on position limits will disappear and limits can be imposed forthwith.

  2. If the cartel were not interested in manipulating the gold and silver markets, they would not be fighting against position limits.  Since they intend to keep manipulating the silver and gold markets, they will not allow position limits to be implemented.  This seems a very clear cut case.
    And it bears repeating that the cartel does not manipulate the gold and silver markets to make a direct ‘profit’ in fiat money (remember, they have the power to create fiat money out of thin air).  They manipulate silver and gold in order to keep the fiat debt currency system alive.  Their very existence depends on the continued use of fiat debt currencies, so it is a matter of survival for them (not a matter of acquiring more paper money profits, as many think).  When looked at in this way, it is very clear why they so desperately smash gold and silver prices every chance that they get.

    • “When looked at in this way, it is very clear why they so desperately smash gold and silver prices every chance that they get.”

      Indeed it is, just as it is clear that they could not do this without at least tacit government approval.  IMO, there is much more than “we’ll look the other way” approval of these manipulations.  The government seems more like a full fledged partner in all this.  If so, then protecting the reputation of the dollar as a valid currency is likely their motive since a rapidly failing currency would be a BIG problem for the government.  It would be impossible to sell US Treasury paper, for example, that was denominated in a currency that was clearly dying.

    • Depends, Mary.  The US government is not just one giant monolithic structure that always acts in concert.  Quite often the left and right hands do not know what the other is doing.  If the courts are not in on this, then court action can be used to defeat this manipulation.  These guys are powerful but not ALL powerful.  If they were we might as well surrender now and get it over with.

  3. I just hope they can keep this BS going another year or so, then I can just keep accumulating, better get some gold soon too I guess.
    Anyway, keep the game going boys, your time will run out without a doubt.
    I’ll be enjoying it on a beach somewhere in South East Asia in early retirement. after it all collapses.
    Keep it going boyz, delay a real market til the dollar implodes, pretty please.

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