Bill Murphy: JPM Stopped Manipulating Silver From January-June of 2011

GATA’s Bill Murphy has just publicly released STUNNING new revelations regarding JP Morgan’s alleged silver manipulation.
Murphy states an informed source has advised him that JP Morgan was compelled to stop manipulating the silver market in January of 2011, and that fact is the reason why silver ran from $28 to $50 over the next 6 months.
Murphy states JPM took down silver in the infamous overnight May 2011 raid from an auxiliary account, and began manipulating silver again in June of 2011.

Murphy’s source also states that JP Morgan’s CIO derivatives losses are actually tied to the Bear Stearns short silver positions JPM inherited from the Fed in 2008, and that the LIBOR scandal will soon engulf JP Morgan in a SILVER MANIPULATION scandal– likely when the CFTC releases their findings on their silver manipulation in the next 30-60 days!

Murphy states:

It has come to my attention that in January 2011 JP Morgan, for some yet unknown reason, was compelled to stop manipulating the silver market. That is when the price of silver went vertical to the upside…

Silver practically went straight up to $49 an ounce. THEN, it collapsed for no apparent reason. That reason, from my most well informed source, was that JPM came back into the market in June. Now, if that is the case, JPM worked through some sort of auxiliary account to overnight raid silver in the earliest of May in 2011, because that is when The Gold Cartel/JP Morgan went into combative action in earnest to crash the price down…

Monthly silver price
http://futures.tradingcharts.com/chart/SV_/M?anticache=1341620769

I hope to be able to explain more of this in the near future, but that is what I can put in the public domain for the moment.

Regarding JPM’s CIO losses:

JP Morgan’s public declaration about being offside on a $2 billion dollar “hedge transaction” was not fully transparent. My sources tell me that was the case, but in addition, that what JPM CEO Jamie Dimon said at the time was camouflaging another serious financial problem. At the time it made little sense that a CEO would talk about a trade loss of that kind when his firm was making $18 billion dollars a year. The smell meter that the situation was much more serious than $2 billion lit up the light bulbs on the GATA camp scoreboard. Since then New York Times has reported the amount of the loss could be as high as $9 billion.

The bottom line here: my well informed source tells me that the Jamie Dimon lament is about a derivatives problem that also involves the silver position JPM took over for the Fed when Bear Stearns went belly up. I hope to have more particulars on this declaration in the near future. The main point is that JPM has some serious issues with their present short silver position and is having difficulty extricating itself from that position. Whether it has to do with coming up with a large amount of borrowed physical silver, I am not sure. We will stay on the case and report on any new developments.

Should the CFTC finally release a verdict (as Bart Chilton advised SD readers would be coming by September) implicating JPM of manipulating silver, we are potentially looking at a perfect storm of scandals converging on The Morgue at the same moment.

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