After nearly 4 years of “intensive” investigation into the Silver market, the CFTC is apparently going to announce that they have found no evidence where they can prosecute a legal case. Well…what did you expect? Silver and Gold are THE 2 most important markets to keep “under wraps” if you are running a fiat Ponzi scheme. Would the “Ponzi” and thus the “worthlessness” of the paper money not be exposed for everyone to see if Silver was trading at $500 or $1,000 per ounce? Did anyone expect the CFTC to actually come out and say “OK folks, we caught ’em! JP Morgan and HSBC have been manipulating the Gold and Silver prices for years at the behest of the Fed and U.S. Treasury. Now, we will correct the problem, Gold and Silver will levitate to true market levels and we will have truly free markets”?
Is this even possible given the ramifications to other markets? Is this even possible given what would happen to “the players”, not to mention the economy and the system itself? Think this through; we know that interest rates are being held artificially low by the Fed (which helps the Treasury pay debt service on a $16 Trillion debt), what exactly would the housing market look like if interest rates for 30 year mortgages was 7%? How about 10%? Exactly how many cars would Detroit sell if the average car loan was 10%? What would happen to bank, broker and insurance company balance sheets if interest rates rose to 7%? Can you imagine the losses on their bond portfolios and pension plans? None of “this” (higher interest rates) can be allowed to happen under any circumstance. Silver and Gold as an “alternative” investment/currency just cannot be allowed to forecast either inflation or higher interest rates, I get it. Really I do, but…
That said, the CFTC is going to be on the record again (for the 3rd time) that Silver is NOT manipulated, so when the force majeure (default) occurs, they cannot say “who coulda’ seen it coming?”. If anything it will be absolute PROOF that the government was 100% complicit in the rig! We know that oil is rigged. Many times in the past, Congress has called for and our President(s) have threatened/promised to release oil from the SPR (Strategic petroleum reserve) to lower prices. We know that interest rates are manipulated, central banks have run rates to zero and far below the inflation rates. We know that banks have manipulated rates with the recent Li(e)bor scandal. We know that Gold prices are manipulated, just look back to the London Gold Pool and statements from Arthur Burns, Paul Volcker and Alan Greenspan. Stocks are manipulated by the PPT/ESF, this is even written into law by Executive order. But….but….but Silver is not manipulated?
If it is not manipulated and everything is on the up and up, how can anyone explain that just one ETF amongst many (SLV) has allegedly accumulated more “physical” Silver than supposedly even existed from supply after industrial use? This does not even include the futures markets or “pooled accounts” …or even supposedly “segregated” accounts. For example, HSBC and Morgan Stanley have both been fined for taking orders to purchase Silver, charging to “store it” but never purchasing it. JP Morgan says that they are not “short” Silver. Really? There is little to no hedging by the producers so your “short” is not for these “customers”. I can’t imagine any investor buying Silver and then continually “hedging” it 24/7 so your short cannot be for bona fide investors. And where exactly is all of this Silver held? Some 500 million ounces? 15-20 THOUSAND TONNES? Where did this long supposedly come from? I know that it doesn’t amount to squat in Dollar terms but it sure is a lot of weight, a lot of product! The bottom line is that the Fed and the U.S. Treasury are JP Morgan’s “customers” who are ultimately short of Silver, again the phrase “who coulda’ seen this one coming?” comes to mind.
Getting back to the upcoming CFTC “whitewash”, the committee is made up of 5 individuals. The chairman, Gary Gensler, is an ex Goldman Sachs employee so that speaks for itself. The one “hope” for those seeking “justice”, truth or just plain fair markets was Bart Chilton. Mr. Chilton has alluded to in the past that he believed that Silver prices were in fact manipulated. Now, he has a big decision to make. When the whitewash becomes public, Mr. Chilton has a few choices, he can remain silent, he can publicly announce his dissension from the “non”finding or he can do what a real man would do. He should resign. He should RESIGN in very PUBLIC fashion and leave, going on the record as to why he resigned. It will take some real guts and he may view a resignation as a career ender but I doubt it, someone, somewhere, has to go on the record as to the truth. I hope he does the right thing whatever that might be.
As a post note, “history” is going to look back upon this era with total scorn. How, was it possible for a civilization as “advanced” as the world is today, to have been SO STUPID? What would have possessed the population to work, trade and invest for/with/in pieces of paper with ink on them? Was it something in the water? Poor schooling? At least Tulips were pretty!