Ted Butler Bombshell: Gold & Silver Short Positions Killed Bear Stearns!

falling-bearSomething negative did hit Bear Stearns in the first quarter of 2008; although there are remarkably few details of what went wrong. Since Bear had a significant presence in sub-prime mortgages and that market was in distress, it is assumed the fall of the firm was mortgage related. That may be true, but there was no general stress in the stock market through mid-March 2008 reflecting a credit crisis. Was there instead some specific trigger behind the company’s sudden collapse?
I believe that sudden and massive losses and margin calls of more than $2.5 billion on tens of thousands of short COMEX gold and silver contracts were the specific triggers that killed Bear Stearns. Let’s face it – Bear was so leveraged that a sudden demand of more than $2.5 billion in immediate payment for any reason could have put them under. Bear Stearns’ excessive gold and silver shorts on the COMEX are the most plausible reason for the sudden demise.
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Ted Butler: 2013 – The Year of JPMorgan

Blythe Masters Jamie DimonAs has been the case for the past five years (since it acquired the concentrated short positions of Bear Stearns), 2013 was the year of JPMorgan in silver and gold. Everything important that transpired in silver and gold can be traced to JPMorgan, just as this bank will dictate what happens in the future. I realize I am being overly specific and that many different factors influence the price of any market; but the circumstances surrounding JPMorgan are so overwhelming as to render all those other factors combined moot when it comes to silver and gold.
From the very beginning of the year to the last two days of 2013, JPMorgan has dominated and controlled the price of silver and gold. Here are the documented facts: [Read more...]

Ted Butler: Did the Treasury Dept Give JP Morgan a License to Steal?

bankstersIn this MUST WATCH interview with Sprott’s Ask the Expert, silver analyst Ted Butler discusses how JP Morgan inherited Bear Stearns massive short gold and silver positions in early 2008 at the request of the US Treasury Department, and makes the case that requesting JP Morgan inherit Bear Stearns’ positions should not have been a license to steal and freely manipulate the gold and silver markets.
Ted Butler’s full Ask the Expert Q&A session is below:
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Ted Butler: JPM is Cornering the Gold Market!

Bernanke-Dimon-Fed-TunnelFor the past few weeks I have been harping on JPMorgan’s massive long position in COMEX gold futures, stating that nothing comes closer in importance for the price. There has never been a case where a market corner wasn’t the prime price determinant. Preventing or eliminating market corners is the number one priority under commodity law. A market corner is the antitheses of how a free market is supposed to operate. A series of market corners and manipulation in the early part of the last century (the Jesse Livermore era) was what led to the formation of commodity regulation in the US in the 1930’s.  It’s bad enough when entities such as the Hunt Brothers or the rogue copper trader from Sumitomo cornered markets; but it’s a whole different level of badness when the most important US bank corners a market, as JPMorgan has done in COMEX gold futures. [Read more...]

Ted Butler: Bankster Market Dominance

Jamie DimonSubmitted by Ted Butler:

One market participant, JPMorgan, determines what will happen price-wise in gold and silver (and other commodities). This is a crooked bank that has no business controlling the gold and silver markets by its easy to document dominant market position. It’s encouraging that there is wide discussion on the unnatural control that big banks have on LME metal warehouses and that the Fed is reconsidering the wisdom of allowing banks to deal in physical commodities. But the most obvious danger of all is allowing JPMorgan to hold dominant market shares in regulated futures markets. [Read more...]

Ted Butler: Busting the Perfect Crime

What makes the silver (and gold) manipulation the perfect crime are a number of elements; short term price control through High Frequency Trading,  compliant regulators and the fact that most victims don’t even realize they are being had, as the sellers are mostly just reacting to the deliberately-set lower prices. It’s hard to end an ongoing crime in progress when so many don’t realize it is in progress. Worse, there are still some who profess that there is no manipulation underway. And for the few who do realize what’s really going on, what can you do about it when the regulators are in bed with the manipulators? Perhaps the options are limited, but that’s not the same as non-existent.
I believe that an impartial review of the CFTC by the GAO could end the silver manipulation.

 

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Ted Butler: CFTC- The Worst Regulator Possible

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. [Read more...]

Ted Butler: The Gold & Silver Price Smash – Who, What, How and Why?

silver smashWith the record-setting trading volume Monday and on Friday, I would not be surprised if JPMorgan had eliminated its concentrated silver short position.
JPMorgan the big concentrated short seller and manipulator of silver and other markets, has made a boatload of money, many hundreds of millions of dollars, by short selling at higher prices than the prices they have been buying back at. I don’t begrudge JPMorgan for making large trading profits if they were doing so legally, but that is not the case. The trading profits being made by JPMorgan and the other commercials are as far from legal as is possible. That’s the only plausible conclusion a reasonable person could reach when answering the last open question – how do they do it? [Read more...]

Ted Butler: The Good, the Bad, & The Ugly of Silver Manipulation

Submitted by Ted Butler:

I’ll save the good for a moment, but the bad and the ugly seem to permeate the silver and gold and other markets. On Wednesday, I mentioned that one reason gold and silver failed to move higher after the Cyprus news was such a rally would have interfered with a planned takedown in copper, platinum and palladium, which was evident on Monday and Tuesday. For the record, there was the expected substantial commercial buying in copper and platinum, a bit less in palladium. My point is that commercial positioning on the NYMEX/COMEX is the strongest short term price influence, way ahead of anything else, including actual news and developments in the real world of supply and demand. This is so contrary to commodity law that I believe the regulators must be thought of as corrupt.

Even worse is that silver (and gold) investors seem to be confronted on a daily basis with the proposition that the US Government is working against the interests of silver investors. While every conceivable effort is undertaken by the USG to help push bond, equity and real estate markets higher, there appears to be an effort to depress silver prices that goes beyond ugly. [Read more...]

Ted Butler: A Moment of Clarity on Silver Manipulation

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. [Read more...]

German Automaker Reportedly Hoarding As Much Physical Silver As it Can Acquire

German silver shortageLast month we posted a report (which subsequently went viral) from an Apple contractor who claimed that Apple has delayed production on the new 27″ iMacs due to an industrial silver shortage in China.

New signs of an extremely tight wholesale physical silver market have now emerged, as a first-hand account has revealed that one of the largest and most famous German automakers is hoarding massive amounts of physical silver inside one of the most secure vaults in Zurich, Switzerland.

Financial writer Byron King, who viewed the massive German automaker’s silver hoard in Zurich stated:
Why does the German company store dozens of pallets of silver in a secure vault deep in the mountains of Switzerland? It’s simple, really. So that the metal is there when the car maker needs it. As one purchasing manager explained later in my travels, “For some metals, like silver, there’s no such thing as ‘just in time’ delivery anymore.
In other words, this German company buys silver when it’s available. In fact, the company buys as much as it can acquire. Then it stores and stockpiles the material in a vault in the mountains of Switzerland, right next to the pope’s gold.

Ted Butler’s long anticipated panic buying & stockpiling of physical silver by industrial users appears to be gaining momentum.
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CFTC’s Bart Chilton: Banks Must End ‘Brazen, Flagrant’ Manipulation

Bart ChiltonThe CFTC’s Bart Chilton was on CNBC’s Squawk Box today, and stated that TBTF banks must end their brazen, flagrant manipulation.
Chilton was referring to LIBOR manipulation, and specifically RBS, who has just been fined over $600 million for their role in LIEBORGATE.

While we couldn’t agree more with Mr. Chilton, we are all still waiting to see the CFTC address the alleged silver manipulation in the same manner as the already broken LIBOR manipulation scandal…rather than drag their supposed investigation into its 5th full year. (particularly after Mr. Chilton personally advised the Doc in July 2012 that he expected a resolution of the CFTC’s silver investigation and an announcement by September 2012)

Chilton’s full interview and rant on how the banks must end their brazen, flagrant manipulation is below:
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Is Ted Butler’s Silver Panic Imminent? Apple Contractor Claims New iMac Production Delayed Over Silver Shortage!

apple silver shortageSilver expert Ted Butler has long predicted and awaited an eventual industrial shortage of physical silver, and a resulting panic silver buying that terminates the bullion bank cartel’s manipulation of the silver market.  
Butler may be about to be finally proven correct, if an Apple contractor is right that Apple has delayed production on the new 27” iMacs over an industrial silver shortage in China.

With the US Mint sold out of Silver Eagles and production shut down for the 2nd time in 2 weeks, and shortages of nearly all retail silver products rapidly developing along with spiking physical premiums, it appears that a widespread retail, and perhaps industrial physical silver shortage is developing and escalating by the hour. [Read more...]

Ted Butler: My Worst Fear- CFTC Confirms it Doesn’t Understand Silver Manipulation

Submitted by Ted Butler:

Recently, I have received a good number of emails containing conversations between readers and CFTC Commissioner Bart Chilton about the allegations of a silver price manipulation because of the large concentrated COMEX short position held by JPMorgan. Chilton had previously led the move to begin the current silver investigation in September 2008 and has always been quick to respond to those writing to him, a rarity for high officials. I couldn’t help but notice that Commissioner Chilton had recently begun to say things that seemed to try to explain away the allegations of a silver manipulation, much different from his former stance of promising to look into it. I found this change disturbing and it has influenced my thinking that the CFTC would never do anything about the silver manipulation. One particular response from Chilton to a reader prompted me to write to the Commissioner myself (aside from sending him all my articles) -

In simple terms, Commissioner Chilton’s response to the reader confirms my worst fear – the reason the CFTC hasn’t moved against the silver manipulation is that they don’t understand it. Even though the agency publishes remarkably detailed and accurate data on concentration in their weekly COT reports, they apparently don’t comprehend what it is they are publishing. As a big believer in the premise that recognition of a problem is 50% of the ultimate solution; I also believe that if a problem is not recognized, it is unlikely to be remedied. I’ve always considered Chilton to be one of the “good guys” at the Commission, so it is quite disheartening to see him so misinterpret his own agency’s data.

This is no small matter. The CFTC’s main mission is to guard against price manipulation, the most serious market crime possible.
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Ted Butler: A Silver Manipulation Timeline

By Ted Butler:

A friend and long-time subscriber who intends to write a book about the silver manipulation asked if I could provide him with a bit of history. To my mind, the silver manipulation dates back to early 1983, when the commercial traders grew confident that they could sell any quantity of paper short contracts to the technical fund buyers on the COMEX. By that time the commercials learned that technical fund buyers would never take physical delivery and could be counted on to buy or sell based upon price signals that the commercials could easily influence and control. In essence, the game has remained remarkably similar ever since.

The important thing to remember is that regardless of how many years and decades that the silver manipulation has been in place, when it ends, it will end in a virtual instant. That’s why it’s better to be positioned early in silver, rather than late.

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