Chilton

Commodity pricing is vastly more important than most people actually realize,” explains former CFTC Commissioner Bart Chilton, warning that beginning around 2007 the rise of computer driven trading algorithms changed the rules, and the markets have not been the same since.”
In the MUST LISTEN interview below, the former CFTC Commissioner is asked POINT BLANK if there is a manipulation problem in the precious metals market-silver, especially: 

ChiltonIn a recent column, silver analyst Theodore Butler presented information that leaves him somewhat optimistic that the Government Accountability Office (GAO) is looking into the possibility that the silver markets might be rigged or manipulated.
In the column,  Butler labels as “phony” a prior “investigation” conducted by The Commodity Futures Trading Commission (CFTC).
According to Butler and the CFTC itself, this “investigation” lasted five years and included “7,000” man hours of work on the part of CFTC employees doing the investigating.
I too believe this alleged exercise in fact-finding was either bogus or clearly not worthy of the label of “investigation.”
As it turns out, I even have evidence to support my skepticism.

JP Morgan Dimon MastersIn December 2012, I received a phone call from the Government Accountability Office (GAO), and that led to me providing documentation about the silver manipulation and the CFTC that led to a number of conference calls with the GAO. The GAO’s mission is to make sure that all federal agencies are conducting their missions appropriately.
I kept my contact with the GAO private so as not to jeopardize any action by the agency, although I must tell you that I was quite excited about the situation
. In time I was informed by the GAO that as the one government agency that reports directly to Congress that it needed to be directed by Congress to look into the matter. In May 2013, I sought to stimulate action by writing publicly about the matter and asking readers to write to their elected officials to urge the GAO to pursue the matter. A good number did just that.
Several months passed and, once again, I grew weary about any follow up by the GAO.  I had heard nothing and assumed the matter was dead.
As it turns out, I was dead wrong. 

ChiltonFailure to address precious metals market manipulation is your true legacy, Mr Chilton.  Position limits by themselves fix nothing.  To your credit, you did make the space for GATA’s Bill Murphy to introduce critical testimony to the CFTC during a 2010 publicly broadcast hearing.  But that’s the only thing we can objectively point to suggesting your job performance wasn’t just another example of a spineless regulator captured by the industries he is supposed to regulate.
But it’s not to late, Mr. Chilton.  You can still become a whistle-blower. 

ChiltonIs it Mission Accomplished for the CFTC’s “Good Cop”?
In a statement just released by the CFTC, Bart Chilton has sent President Obama notice that he will be stepping down from his position as a CFTC Commissioner.

Chilton’s full statement on position limits & resigning from the CFTC is below:

mafiaCriminal enterprises the world over are tied together by a particular conduct so endemic to organized crime that it might accurately be referred to as Mafiosi Best Practices.  It is based on the very common-sense principle that one should never, ever leave a paper trail of one’s criminal activity.  Any document, from notes at a meeting to a list of goods, is a tangible piece of evidence that could be used against you at some future date.  The Sicilian Mafia, renowned for their “code of silence”, had an old saying which sums this up perfectly: Never write when you can speak, and never speak when silence will do.
What does this have to do with Gold and Silver?  Perhaps a great deal. 

Jamie DimonThe CFTC has announced Wednesday evening that it has settled with JP Morgan for $100 charges that the bank violated prohibition on manipulative conduct in connection with the London Whale swaps trades which saw the firm lose nearly $9 billion.
In the settlement, JP Morgan admitted that its traders (no mention of Mr. Dimon, who assuredly approved his traders actions removing IG9 swaps delta hedging interest rates) acted recklessly, and agreed to the $100 million penalty.

Precious metals markets are now the Wild West: a lawless territory where the Judges are bought and paid for, and where brutal and rapacious men are allowed to pillage the populace at will, unchecked by the rule of law.  The Sheriff is too cowardly to emerge from his office, let alone do anything to go after the bad guys.  He slumps impotently behind his desk, mourning his receding hairline and hoping against hope that nobody brings in more evidence of wrongdoing- not because he would then have to do something (there is no crime so egregious to cause him to bestir himself) but because such revelations make his inaction and cowardice even more publicly humiliating than they already are.
Meanwhile, the townsfolk are realizing they are completely on their own.  They stay inside and keep their heads down, trying not to get preyed-on by the gangs of sanctioned looters roaming the territory.  The smart ones are quietly stacking all the gold and silver bullets they can lay their hands on, knowing that they and they alone are responsible for their own safety.

ChiltonBart Chilton provided Friday humor a little early yesterday on Bloomberg: “If you don’t want consumers protected, fine, fire us all, shut us down.
If you want the markets safe, secure, efficient, and effective, that helps markets and consumers, you’ve got to keep us on the job.”

Chilton’s full Bloomberg interview on why strong regulators (an oxy-moron if we’ve ever heard one) are needed is below:

Gensler

H. Darr Beiser USAT

The WSJ is reporting that Goldmanite Gary Gensler has declined an invitation from President Obama to serve a second term as CFTC Chairman, and will leave the CFTC by the end of the year.
Apparently Goldman no longer needs their man at the CFTC now that the agency’s 5 year “investigation” into silver market manipulation has been put to rest.

Bart Chilton on today’s metal’s smash:  You’re on your own.
Chilton’s prediction that the “do-badders” would attack due to lack of any gov’t oversight of the markets in light of the gov’t shutdown is below:

This morning’s trade in silver demonstrates a pattern regular observers of this market will instantly recognize. 
This pattern happens so frequently that any claim by the CFTC that they couldn’t get to the bottom of this sort of crap is just nonsense.
But we have a pretty good idea why the CFTC closed it’s investigation.  How can you bust the government that your agency is a part of?
We see the firm control of manipulation algo patterns operating in the early morning hours both yesterday and today.  Then, we have a flash crash running of the stops going into the COMEX open, which has been a one-two punch set-up we’ve seen countless times.    The only thing different today is that there was more low hanging fruit to harvest on account of gold and silver speculators fearful of what a government shutdown could mean such that these speculators were operating with tighter stops.
This was furthered by the fact that support levels informing the views of these technical analysis dependent speculators were targeted and blown out of the water by the fast crash algo manipulation.

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On this week’s show, GATA’s Bill Murphy joins The Doc & Eric Dubin to discuss:

  • Manipulation in a big-picture context:  What’s the end game?
  • Panama bank holidaystory developing, but some things are fishy- Panama is an off-shore tax haven like Cyprus

This week’s SD Weekly Metals & Markets breaks down the metals, markets, and official manipulation with GATA’s Bill Murphy below!

ChiltonTheNewsDoctors.com Exclusive:

Open Letter & Petition to CFTC Commissioner Bart Chilton
Petition Background (Preamble):

CFTC Commissioner Bart Chilton has claimed he stands for honest markets. We, the undersigned, call upon him to read the open letter below and take the only appropriate action remaining. Mr. Chilton: Resign, become a whistleblower and take your rightful place in history.
Click here for The News Doctors’ Exclusive open letter to Bart Chilton calling for the CFTC commissioner to resign and become a whistle-blower on the manipulation of gold and silver markets:

 

 

*Updated 11pm EST 9/25*
Well, that didn’t take long.  After Andrew Maguire went public last Friday that the CFTC is holding evidence that JP Morgan manipulated the gold and silver markets, moments ago the CFTC announced it is closing its 5 year investigation into silver market manipulation, and that after 5 years of investigation the CFTC has found:

“Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets.”
Something tells us Mr. Chilton won’t be releasing any contrary statements by the end of September as promised either.
Let the manipulation continue indefinitely until the last ounce of physical gold and silver are removed from COMEX vaults!

Jamie Dimon

We know market rigging occurs every day. We may not be able to see it, as it’s hidden in vast arrays of high frequency trading at the nanosecond level. The manipulators can conceal their work through offshore accounts.  Proxy traders conceal their actions, but we still know it goes on.
Why do these excesses and criminal actions get punished only lightly, with no jail time and little more than a miniscule fine?
Because it is in the interest of the government to disclose only enough to the viewing public so that it is possible for a prosecutor to wage his little war against JPM, while, in the full knowledge that the real story is infinitely deeper.
It’s like prosecuting the Mafia. A don or two goes down but the enterprise continues to thrive. Every one prospers; banks, criminals, attorneys and the government. Its a win-win for all except the marks who suffered predations by these people.
But the one market that can never be prosecuted is the market in which the government is running the fraud. The government is in the precious metals market. That market belongs directly to the government. That market must be suppressed because if it is not, the government is screwed.
Legal beagles, attorneys general, and private lawyers cannot get a handle on this manipulation; they cannot be allowed to find the bodies and levy fines because the government cannot allow it.
The government is the market, manipulates the market and this game MUST continue.

gold & silver sold outThe CFTC IS the watchdog for abuse in the options and futures markets and Friday April 12-Monday April 15 were beyond obvious as to what was done.  Reportedly 1,000+ tons of paper Gold were sold in less than 8 hours of trading.  This is 32 million ounces.  This is 40% or more of ALL Gold produced on the planet in 1 ENTIRE YEAR!  “Who” in their right mind would sell in this fashion?  Who in the world even holds this amount of Gold?  The answer in case you are wondering is NO ONE (other than central banks and THIS may not even be true any longer)!
Forget completely the nuts and bolts, look at this through the eyes of an 8 year old.  The price of the physical metal is different than the futures prices.  ONE of these two must be wrong by definition as they cannot both be correct.  The “price” is and has been “set” by the paper markets.  The “tail is wagging the dog”, this is more than obvious.  The futures markets were set up originally to create liquidity and facilitate suppliers hedging and speculators speculating.  This has gone on for years now (at least since 1996).  Obviously “something” isn’t right when one market has one price and the other another price so …what to do?  Just sit back and wait…for the inventories to be wiped bare.

CFTCBuilding (HomeSubFeature)By SD Contributor Ted Butler

We’ve just crossed a few important anniversary dates that relate to silver that taken in proper perspective point to a disturbing conclusion. That conclusion is that the US commodities regulator, the CFTC, has done more public harm than good over the past few years. Simply put, the public and our markets would have been better off had the agency not been run by the commissioners in place, specifically including Chairman Gensler and Commissioner Chilton. In fact, rarely has so much promise for genuine regulatory reform been squandered as badly as has been the case over the past few years.

I single out Gensler and Chilton because they were once the good guys on the Commission or the only ones pushing for position limits. Since they have allowed position limits, the silver investigation and the unprecedented price declines in silver to fade into the sunset unresolved, they must be held to the greatest standards of failure. In a very real sense, Gensler and Chilton have done more harm as a result of first championing the important issues and then abandoning them.

How does Bart Chilton and the rest of the regulatory crew explain the 2013 instant replay of 2008?  Price gets crashed from “sellers” yet what supposedly was sold can only be bought at a 30% premium…IF you can find it at all?  We are still waiting…and now “Bitcoin” is on the front burner I’m sure that Silver (and Gold) will not be addressed until AFTER exchange defaults occur.  For that matter, they won’t be reported on after the fact either because we will then have bigger, MUCH BIGGER problems facing us…like where the next meal will come from.

cftcBecause of the recent furious decline in value of real and paper silver, and the belief by many that manipulation is the major (if not only) cause, I have been asked what might be done to force the non-regulating regulator, the CFTC, to begin regulating in regard to the existing concentration.

After studying the silver futures market since the days of C.V. Myers—and focusing on it intensely for the past several years—my opinion is that if there has been, and currently is, a concentration in the silver market, it would constitute not only manipulation but consequently the disruption of market integrity, and the prevention of fair competition among silver investors, speculators, hedgers and others. Certainly, the esteemed Ted Butler has made an overwhelming case that there has been, and currently is, such a concentration/manipulation.

In light of the CFTC’s foot-dragging in concluding its unreasonably delayed investigation and/or required report concerning concentration /manipulation, I have been considering how to break the self-created CFTC log-jam that has caused incalculable financial losses as a result of the uncertainty engendered by the apparently languishing investigation.

As I will fully develop below, a lawsuit is feasible that will force either the Director of Investigations and/or the Commission itself to disgorge the Report of the CFTC’s four-year-plus investigation into concentration in the silver futures market. The hope would be that the investigation’s conclusions, either way, will allow investors, speculators, hedgers and others to make rational decisions, unlike currently when the concentration skewers free market choices and decisions.
Below is only the outline for a lawsuit, not the Petition itself.

clarityBy Ted Butler

Every once in a while, someone utters a statement that suddenly galvanizes the issue at hand.  That’s the first thing that came to my mind when I read of the US Attorney General’s words before a Senate hearing this week.

In a blinding moment of clarity, the answer to the whole “why isn’t the CFTC doing anything about the silver manipulation and JPMorgan’s stranglehold on the price” question flashed for all to see. Mr. Holder’s words couldn’t be any clearer and fit perfectly with the now-consensus view held by those who know that JPMorgan is manipulating the price of silver. The reason the CFTC is allowing JPMorgan to continue with their illegal behavior in silver is because the bank is too dam* big and powerful to rein in for fear of the unintended consequences.