Open Letter to the CFTC (Commodity Futures Trading Commission)

Open Letter to the CFTC (Commodity Futures Trading Commission

news.goldseek.com

I am writing this letter in the hopes that the scheduled hearing on COMEX metal concentration limits is the REAL DEAL and not some “horse and pony show” designed to pacify angry gold and silver investors without making real changes. The COMEX gold and silver markets have been manipulated for far too long so any attempt to place a Bandaid on the problem and kick it down the road will be received with scorn and ridicule by those of us who know the truth.

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[edit on 3/10/2010 by sp00n1]

Nobody denies that the futures markets for energy is heavily manipulated, but what most people don't know is that the manipulation in the gold and silver markets is orders of magnitude larger. For instance, if a single trader in the oil market were to control more than 5% of the supply or demand, the CFTC would instantly start an investigation. On the other hand, gold and silver prices are being suppressed by one or two large banks that collectively represent over 85% of the open interest on the short side. In other words, they have contracts to sell precious metals at prices that are far below the true fair market value in the actual physical market. What's worse, the size of these contracts represent more metal than these banks, or anyone, could actually have. In other words, these banks are selling gold and silver that doesn't even exist (known as "naked shorting"). They are able to get away with this because most traders settle the contracts in cash, instead of taking physical delivery of the underlying metals. The COMEX even has position limits on the long side of the trade, this means that BUYERS are limited in how much metal they can buy and take delivery of, but SELLERS can sell as much fake paper gold and silver as they want because the COMEX will make sure it never needs to be delivered. The paper market for these metals DWARFVES the real physical market.

THE COMEX IS RUNNING OUT OF GOLD and has offered 25% premiums to have buyers settle in cash instead of taking delivery. Wait times on deliveries are growing longer by the day. Discrepancies in the COMEX's gold holdings have caused them to stop releasing new numbers. The amount of gold and silver they have on hand has remained constant for the past 4 months, despite the huge outflow of gold from their warehouses.

REPORTS OF COUNTERFEIT GOLD AND SILVER BARS ARE BECOMING FAR MORE COMMON as these crooks are getting more desperate to continue the ponzi scheme and hide the fact that the statistics they have been reporting to us are FAKE! Banks, governments, ETF's, all have discrepancies. Government mints are 'loosing' millions of dollars in gold that somehow disappears from their inventory. ETF's listing their bar serial numbers mysteriously misplace 1000's of bars they are supposed to have in inventory.

The CFTC is supposed to be regulating this, but they pretend not to notice and claim they don't understand why gold and silver traders are concerned. Since there is not a large public awareness of the events, there is no pressure for these government bureaucrats to do their jobs. The CFTC is headed by former GOLDMAN SACHS insider Gary Gensler, a protege of Paulson.

The CFTC's reports didn't list the names of banks involved, but due to the HUGE size of the concentrated short positions it is easy to figure out that only two banks could be responsible. JP MORGAN AND HSBC. The CFTC has since stopped reporting this anonymous information because we used that data to figure out who was responsible. In other words the CFTC is complicit in this market manipulation scheme.

Bear Stearns used to be a big player in the silver short fiasco, but since they were on the wrong side of the trade they went bankrupt when silver hit $22. JP Morgan quickly took over their position with the help of the US Federal government. Many of us believe the $30 billion loan deal for the bear stearns buyout was predicated upon the continuation of the shorting scheme.

THIS IS BIG AND IT IS ONLY GETTING BIGGER! When it hits the fan things are going to go crazy. We need the public to be aware of this so they can ask the right questions. These criminals in our government need to know that we are paying attention.

Unfortunately, the CFTC's upcoming meeting on the issue is really just a show trial. They refuse to allow experts to testify and they refuse to admit solid evidence of wide scale price suppression schemes. This is the 3rd silver market price fixing investigation in 5 years and they still haven't even agreed to look over any evidence, choosing instead to confirm their predefined conclusions that they had before they started the investigation.

news.goldseek.com
(visit the link for the full news article)

I think that things are starting to come to a head with some of the derivatives short selling cabal talking about wanting payment in gold on their dollar shorts. For therein lies the crux of the matter. When King Fiat comes under short attack for its massive debt, how will the bounty be paid?

So I see the heat going up substantially do to many factors as countries and bankers fight about the very limited amounts of silver and gold. They have all been very careful about their accumulation, but at some point someone will make a mistake and then it's comin' out in the open.

But of course this cftc dog and pony show is just that.

CFTC is a joke.

Research what they are trying to do to the foreign exchange markets.

Trying to drive all revenue to the futures which they control and make money off of. Basically taking all the margin rates down to where it would be more competitive to play futures.

They are also pretty weak with their punishment. Only fined UBS $45,000 I believe for having control of too many contracts, thing is that is only about .01 tick for them in light sweet crude = basically the lint out of their pockets for breaking the rules.

reply to post by sp00n1


I believe the reason for the fake gold is because there is`nt any left. I think the real gold had been taken, and to cover it up, the fake gold put in it`s place. I think the real gold is being sat on by someone, or some group, in preparation for a massive crash. And when it`s over, they will be the ones we have to turn to for the money. Then again, I may be wrong. Anyway, it`s just an opinion.

reply to post by sp00n1


Sorry I missed your second post.

I would say most do NOT believe the futures market is heavily manipulated for energy IMO. Like I just posted previous they do watch, they just don't scold very hard.

Especially in the pit or something where all the big boys play with their own money there is no manipulation. Just constant volatility from the zero sum game they play all day. People walk out of there rich by 9am and people walk out totally broke by 9am. That is the nature of their game.

This is a situation where we do not need to rely on government intervention. Believe it or not the power is in the hands of the people. Due to the artificial price controls that have been brought about by the government/banking/corporate manipulation the scope of the shortage of the real physical commodities is so great that even a tiny increase in investment demand will make it impossible to hide the shortage any longer.

They are playing a shell game that involves moving stuff from one box and into another. They are flying by the skin of their teeth, stealing from one person to provide for another, and then stealing from them to move it into another place, artificially inflating the supply. Anytime there is an audit they move some bullion into a vault, show it is there, then quickly move it to the next vault to maintain the illusion that there is more gold than there really is. It's like bernie madoff payoff old investors with new capital, it works for a while but eventually the scam is exposed when too many people try to get their money at the same time. Modern western 'fractional reserve' banking relies on the same principal. It is fraud.

The market for precious metals is tiny compared to stocks and bonds. The real physical supply is so strained that all it would take is for a few tens of thousands of people to attempt to buy and take physical delivery of precious metals for the fraud to collapse. There is already a widespread retail shortage of silver bullion, often requiring large premiums to acquire. And gold is so scarce that the federal government mints can no longer produce the amount of gold eagles required by law.

I will make clear my conflicts of interest. I am a big believer in the Austrian School of Economics, and as such i converted a large quantity of my wealth to gold and silver BEFORE the stock market collapsed. So i am long gold and silver. I wish to provide you with the means to acquire real physical gold and silver, and i do not have any financial interest in the merchants i recommend. I have done business with them before with good results. No long wait periods or any other abnormalities.

If you are interested in purchasing precious metals, i would recommend that you look into the following;

Mom's Silver Shop

American Precious Metals Exchange

Tulving

JH MINT

Seek Bullion

MTB COINS

YOUR LOCAL COIN SHOP.... and many many many more