Last weekend, JP Morgan brazenly trotted out its commodities criminal-in-charge – Blythe Masters – to “defend herself” on the world’s most sycophantic network – CNBC. Long-time readers know of the venom I have for symbols of American corruption none more so than CNBC, home of some of mega-creeps like perma-bull Larry Kudlow and admitted stock manipulator Jim Cramer. The Zero Hedge article below summarizes her CNBC comments, and provides a link to the interview.
I immediately chimed in my views on her blatant LIES, highlighted by my “Quote of the Day,” from the Queen of Silver Manipulation herself…
We store significant amounts of silver on behalf of customers. Often, customers hedge that silver forward via JP Morgan, who in turn hedges itself.
I’d say “the debate rages on” regarding silver manipulation, but in reality, it doesn’t. At the CFTC hearings two years ago, Cartel apologist Jeff Christian admitted what we all knew of the silver market – i.e., the PAPER market is at least 100 times larger than existing PHYSICAL inventory. Subsequently, damning EVIDENCE from Andrew McGuire PROVED the point beyond the shadow of a doubt…
…not to mention, my three, extremely detailed “COMEX GOLD MANIPULATION PICTORIALS,” which can be viewed at these links:
Even CFTC Governor Bart Chilton – in October 2010 – flat out admitted the silver market is manipulated!
Thus, it was truly awe-inspiring to hear “the Blythe one” speak, spewing lies so obvious that Pinocchio would be embarrassed!
The reason I am rehashing this topic – aside from its VITAL IMPORTANCE TO OUR LIVES – is to once again demonstrate that only PROOF holds water in my world.
Despite my extreme views on the topic, I am tolerant of dissent and open-minded to alternative theories. That is why I get so irate when simply offered platitudes and un-backed statements in contradiction.
Thus, to those offering them, I challenge you to either a written or oral debate – ANY TIME, ANY PLACE!
And anyone foolish enough to accept such a challenge – don’t worry, there won’t be – will not only have to refute the evidence above, but the iron-clad LOGIC of some of the world’s most knowledgeable experts, such as Chris Powell of GATA (who chronicles decades of PROVEN JP Morgan manipulations):
Rob Kirby of Kirby Analytics, whom specializes in PM derivatives analysis:
Jason Hommel, one of the world’s renowned silver experts:
Ted Butler, the premier COMEX silver trading analyst for the past three decades:
And Bill Holter, one of the world’s finest Precious Metals and macroeconomic commentators:
“Client(s) with an “s” – Bill Holter
I have a few observations of several things that are really not adding up correctly. First, NYSE volume has cratered and is back to levels not seen since late 2007. Not only is volume way down, the public participation has evaporated and what is left is HFT (high frequency trading). Add to this lack of volume the fact that mutual fund cash flows have been nothing but “outflows” for several years and one must scratch their head as to how stock prices have risen on balance since 2009. Never before in history have we watched a market go higher on lower volume and actual “outflows” by the public, what a wonder today is with the ability of the “tail” (derivatives) having the ability to “wag the dog” (set market prices).
Speaking of market prices, many of you saw Blythe Masters (head of JPM commodity trading) do an unprecedented interview on CNBC last week. She responded to a question regarding the alleged “manipulation” of Silver that has made the rounds for years in the “blogosphere”. Shock of all shocks for me! Why…would she even respond to us “conspiratorial bloggers”? The mainstream media has not ever even breathed a word on the subject so why even respond? The CFTC has buried their so-called investigation into Silver for going on 4 years now, can it be that they will finally report that the short position is merely “hedging” as Ms. Masters contends? For me, merely the fact that she was paraded out to deny something that “is so ridiculous, conspiratorial and not worth the time of day” just doesn’t make any sense unless there is something else in the pipeline that need “prepping the public for”. Maybe a CFTC “explanation”, a default or force majeure, who knows?
Many of you may have also read Ted Butler’s comments on her interview which I think misses the heart of why the “hedging” explanation is pure and simple bullshit. If you were a big, BIG owner of Silver, presumably you bought it originally because you were “bullish” on the price. But wait, this short position has been outsized FOREVER, or at least since Silver was trading at $4 back in the late 90’s. This “short hedge” position has been carried since the inception of the bull market (which by the way started when Silver was BELOW its cost of production!). Who, or what “client(s)” would want to be short the ENTIRE time? Did their client(s) not EVER turn bullish at least one time over 12 plus years even though they owned originally because they were presumably bullish?
But wait, there is another little bothersome question that Ted Butler didn’t really address. JPM has simply been “hedging for client(s)” yet we have watched year after year when millions upon millions of ounces suddenly hit the market all at once? Is this the way “hedging” gets done? Think about it, if you are “long”, you want the price to go up, right? If you start to get a little nervous about the price and you tell JP Morgan to hedge your position, would you “accept” the manner in which they perform the trades for you? But let me back up just a little, Blythe Masters was implying “client(s)” with an “s”, do ALL of her clients, year after year ALL call in to “hedge” at EXACTLY the same instant in time? Does not one client care about the “price” they receive? Does it not bother their “client(s)” that each time they “all” call in with their order(s) to hedge, the price of their underlying asset gets slaughtered? Is this REALLY the way to hedge? Blow your own foot off each and every time to the tune of over 10%+++? In other words, after once but certainly not after the second time, wouldn’t a “real client” stop pulling the “hedge trigger” and shooting their own feet off? Wouldn’t it just be better to leave the ” un-hedged” position on and take your chances???
First off, it is 100% IMPOSSIBLE that time after time, “client(s) with an “s” ALL call in at the exact same moment and give “hedge orders”. Secondly, would any long that is trying to maximize profit, “sell” in a manner that destroys their own price? Not possible in any way shape or form. Were this to actually be the case and “client(s) with an “s” really did give orders to “hedge”, wouldn’t someone, somewhere…sooner or later get pissed off at JP Morgan’s BRILLIANT trading desk’s trading techniques? After their first foot got shot off, wouldn’t they give an order which included the terminology something like “feed it out into the market” and don’t destroy the price? This does make some common sense, doesn’t it? M I missing something?
In the real world, JP Morgan would have had their asses fired but good for destroying the price of their “client(s)” with an “s” Silver price. Since their “client(s)” with an “s” is obviously someone that we can conclude wants the price of Silver DOWN rather than up, we can deduce who their client is…yes, I know that you know who it is. Their “client(s)” with an “s” is…………drum roll please………….The Fed! Now, that wasn’t so hard was it? The Fed wants the price of Gold (and more easily manipulated Silver) down in price so as not to compete with their “product”, Dollars. The Fed owns no Silver and may have (ya’ think?) already sold much of our Treasury Gold, they are not “hedging” anything except “time”. They are merely prolonging the amount of time that the ruse, that Dollars actually have value, can last.
Common sense logic is so simple, so easy. This same common sense logic will tell you that if a bank that is issuing “money” that has no value is trying to steer you away from a “money” that has had value for over 5,000 years, you should probably not take the bait! Can anyone, anywhere, REALLY believe that this can end in any manner other than fake money becoming valueless and real money accruing ALL of the value that the fake money once had? Regards, Bill H.
The above crew of “good guys” – myself included – have been consistently correct on ALL macroeconomic and Precious Metals assumptions for the past DECADE – including silver’s rise from $4.00/oz to $50.00 – and will continue to be for years to come. The reason we have succeeded where so many have failed is not due to genius, but simple common sense and scientific method. We ignore the “MAINSTREAM,” and certainly do not listen to platitudes and un-backed statements, instead opting for LOGIC and PROOF.
Which, by the way, tells me that not only is this one of the largest “reverse head and shoulder” formations I have EVER seen, but also – if you go back to the May 2011 “SUNDAY NIGHT PAPER SILVER MASSACRE” – what appears to be one of the most POWERFULLY BULLISH technical formations of ALL-TIME. If the seven-month “reverse head and shoulders” formation signals an imminent surge to the “ULTIMATE QUADRUPLE TOP BREAKOUT” at $50.00/oz, the twelve-month “ULTRA reverse head and shoulder – and second shoulder – bottom” could easily launch silver toward the TRIPLE DIGITS.
Perhaps this sounds like I am excited, but I am actually more terrified than anything else. When silver breaks past $50/oz – let alone $100/oz – the Cartel will be SWAMPED by EXPLODING PHYSICAL DEMAND, yielding an end to TPTB’s façade of price stability. Once that occurs, the breakdown of the GLOBAL MONETARY SYSTEM will be as sure as day follows night.
PROTECT YOURSELF, and do it NOW!