CFTC Commissioner Bart Chilton Reveals "One Trader" Controls 40% Of Silver Market, As Silver Holdings Of SLV Hit All Time Record

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Sat, 12/11/2010 - 14:56 | 798881 boricuadigm-shift
boricuadigm-shift's picture

Is history repeating itself?


Research who was Brooksley Born in CFTC and what she try to do just before LTCM collapse.  Its infuriating and sad at the same time.  There is a PBS documentary on this:




Sat, 12/11/2010 - 15:03 | 798892 DoChenRollingBearing
DoChenRollingBearing's picture

It was an interesting speech, but it sure does sound familiar like you suggest boricuadigm.

I would like to see some action now.

NONE of our problems have been solved.  NO ONE who matters has gone to jail since the financial crisis started.

Until I see some REAL CHANGE, most of my spare change will go to gold, silver and platinum.  No, I will not be creating jobs with my capital.

Sat, 12/11/2010 - 15:54 | 798961 billhilly
billhilly's picture

Speaking of change, I wonder if there was ANY talk about position limits at the Dec. 9 meeting...more extend and pretend?

Sat, 12/11/2010 - 16:07 | 798977 DoChenRollingBearing
DoChenRollingBearing's picture

Being kind of out of the action down here, I would not know about changes in position limits.

I´ll will extend my position limits upon my return in PMs.

Pretend and extend is what we will get until somone in authority acts.   I guess the question here is: if, not when.  QE to infinity and all that as well.

Sun, 12/12/2010 - 00:36 | 799644 dlmaniac
dlmaniac's picture

I doubt Brooksley Born did anything to curb silver manipulation, tho. As I sure know that Ted Butler was complaining all along.

Sat, 12/11/2010 - 17:26 | 799109 midtowng
midtowng's picture

Let's compare this to the Hunt Brothers from Wikipedia:

"The brothers were estimated to hold one third of the entire world supply of silver (other than that held by governments)."

  The Hunt Brothers controlled 33% of the silver market and got fined. JPM holds 40% and no one says Boo.

Sat, 12/11/2010 - 23:27 | 799599 Lord Koos
Lord Koos's picture

I think one difference was that the Hunts actually had a bunch of the metal.

Sun, 12/12/2010 - 02:28 | 799740 dhengineer
dhengineer's picture

And they were long, not short.

Sun, 12/12/2010 - 11:22 | 800018 SwingForce
SwingForce's picture

How about The Fed and its corner on RMBS?

Sun, 12/12/2010 - 07:32 | 799892 Al Gorerhythm
Al Gorerhythm's picture

That extending and pretending is what they have been doing since the inception of the CFTC. Ask any judge sitting there. This is no more than covering bases. Imagine how they would pursue a long position of that size. If Chilton was really concerned, he'd be pulling the myopic press into a press conference and tell it like it is. It would however present him with security problems. Kevlar doesn't stop their ordinance.

Sat, 12/11/2010 - 18:09 | 799177 dizzyfingers
dizzyfingers's picture

Should we all stop using banks and credit cards?

What else would be on the list?

Continue purchasing silver?

Sat, 12/11/2010 - 23:07 | 799580 PaperWillBurn
PaperWillBurn's picture

"But you start to follow the money, and you don't know where the fuck it's gonna take you." -The Wire


Too many people with their hands dirty. They don't want to prosecuting people 

Sun, 12/12/2010 - 00:00 | 799621 Seer
Seer's picture

We know where it leads!  AIG and the CIA- duh!  The Secret Government; and it's this government that's got the goods on all the "representatives"- figure this: do you think that ANY of us here would come out clear if the CIA wanted to nail us?  There would always be something to smear us with; figure that they control the media and it's, to borrow from George Tenent- "a slam dunk."

One either works for these folks and pretents to go after the "terrorists," in all their supposed forms, or one gets thrown under the bus.

The trail will NEVER be exposed.  Should it come close it'll be a massive self-destruct (like 9/11, which was used to cover up massive crime).

Sun, 12/12/2010 - 12:33 | 800088 TheProphet
TheProphet's picture

I'm sorry, I must have dozed off. What exactly was the massive crime that 9/11 was supposed to cover up?

Mon, 12/13/2010 - 08:04 | 801205 XPolemic
XPolemic's picture

I'm sorry, I must have dozed off. What exactly was the massive crime that 9/11 was supposed to cover up?

Gold robbery. WTC1/2 had a gold repository in the basement. The repository was rumoured to be one of the world's largest (although in 2 years of searching, I am yet to find a verifiable estimate to the quantity). Central Banks in the US and EUR have been selling physical gold (from their holdings) since the 80s, to depress the price, and suppress the traditional inflation signal (i.e. gold price). They did this to cover up a massive expansion of credit, which would normally be inflationary.

In 2004, a second Gold robbery was attempted, this time at the Iraqi central bank. US forces claimed the Iraqi central bank's gold as a 'spoil of war', but those spoilsports in the UN claimed that was against the Geneva convention. As a result, the federal reserve had to start raising interest rates to slow down the expansion of credit, which in turn imploded the housing market, and well, you know the rest.

Sun, 12/12/2010 - 12:32 | 800089 TheProphet
TheProphet's picture

I'm sorry, I must have dozed off. What exactly was the massive crime that 9/11 was supposed to cover up?

Sun, 12/12/2010 - 08:03 | 799908 FreeMartinArmstrong
FreeMartinArmstrong's picture

Is it the money you need to follow ?
or is wealth flowing the opposite way ?

Sun, 12/12/2010 - 03:10 | 799772 Ludwig Van
Ludwig Van's picture


@ boricuadigm-shift [@ first post] -- There's a link on the PBS link you offered with a page on which, among others, is a photo of Blythe Masters herself. I'm wondering if Mr. Banzai7 has this one in his archives.

Sun, 12/12/2010 - 06:03 | 799864 akenathon
akenathon's picture

You all should listen at this:

A truly shocking interview from GATA's head about all this story and his 15 Gold/Silver ratio forecast...



Sat, 12/11/2010 - 14:56 | 798882 whaletail
whaletail's picture

Topic on the table: Isn't JPM the custodian of the SLV bullion? Best read that prospectus, SLV holders.

Sat, 12/11/2010 - 16:50 | 799046 bernorange
bernorange's picture

BlackRock Asset Management International Inc. is the sponsor of the trust, The Bank of New York Mellon is the trustee of the trust, and JPMorgan Chase Bank N.A., London branch, is the custodian of the trust.

Sat, 12/11/2010 - 16:53 | 799049 Lord Koos
Lord Koos's picture

That's right... it's going to be interesting if people start asking for delivery.

Sun, 12/12/2010 - 21:40 | 800760 Al Gorerhythm
Al Gorerhythm's picture

They are or are being offered cash at premium.

Sat, 12/11/2010 - 16:56 | 799055 Lord Koos
Lord Koos's picture



Sat, 12/11/2010 - 15:02 | 798888 Oh regional Indian
Oh regional Indian's picture

The age of machines is here. We are merely spectators, not even real speculators anymore.

So Ironical that there is a bunch of silver and gold in the synapses of those HFT machines making it all possible.

What a read. What a situation.

Crack up boom in-deed. And word.

As another said, rather eloquently, we shall watch together, yes?




Sat, 12/11/2010 - 15:07 | 798902 DoChenRollingBearing
DoChenRollingBearing's picture

I´ll be here watching with you ORI. 

Ain´t the Internet great?  I write from Peru, but live in America (and return soon) and reply to our smart friend in India.

Sun, 12/12/2010 - 00:41 | 799649 Oh regional Indian
Oh regional Indian's picture

I saw you gone for a bit back there and was wondering DoChen. Good to know you are in your second home. How's the weather? Summer time there right?

And yes, the internet. We shall indeed watch together! :-)


Sat, 12/11/2010 - 16:19 | 798990 Al Gorerhythm
Al Gorerhythm's picture

The age of machines may well be with us ORI but unless they have somehow gained cognition:(At the first meeting of CFTC’s Technology Advisory Committee (TAC) in July, some firms provided evidence that elements of the Flash Crash may have been caused by so many orders going into the order book so fast that the market couldn't respond.  One member of the committee called it “algorithmic terrorism.” I call it algo price piracy, where one algorithm “invades” another.  It doesn’t appear that happened May 6, but I’m sure it can.) then they are simply machines that are operated by insider traders,

Sat, 12/11/2010 - 18:16 | 799194 dizzyfingers
dizzyfingers's picture

Goldman-Sachs again.

Sun, 12/12/2010 - 00:51 | 799655 Oh regional Indian
Oh regional Indian's picture

Al, cannot find the reference right now, but many years ago, the AT&T network went silent all over america for a few minutes. People who were in the thick of it described as the network having fallen asleep. And then it "woke up". 

I believe it might have been back in the 80's. It was considered the first known HAL moment, network sentience.

I do believe machines are still independently dumb but collectively....hmmmm...and the sheer pace of the network effect growth, quite stunning eh?


Sun, 12/12/2010 - 01:35 | 799697 Buckaroo Banzai
Buckaroo Banzai's picture
All Circuits are Busy Now: The 1990 AT&T Long Distance Network Collapse

Sun, 12/12/2010 - 07:00 | 799883 Oh regional Indian
Oh regional Indian's picture

Thanks BB. 

Trippy read. That was the tech side explanation. I lean towards Sentient networks. ;-)


Sat, 12/11/2010 - 15:01 | 798889 Thanatos
Thanatos's picture

And the beat goes on. Crooks are everywhere!

Never do business with anyone you can't "reach out and touch".

It changes things when they know there will be personal fallout from any monkey business.

Sat, 12/11/2010 - 15:04 | 798894 Azannoth
Azannoth's picture

"Things can happen so fast that, all too often, regulators are like the fire department that comes in and cleans up the charred remains.  In practice, we need to be more like the police department trying to keep these disasters from happening in the first place."

Police never prevent crime, and very often are much later on the scene than firefighters(at least they have a deadline, till the house burns out, the cops dont have deadlines)

Otherwise I agree with you

Sat, 12/11/2010 - 15:39 | 798936 Arius
Arius's picture


Sat, 12/11/2010 - 16:37 | 799023 chopper read
chopper read's picture

when seconds count, the police are only minutes away. 

Sat, 12/11/2010 - 16:08 | 798973 Thanatos
Thanatos's picture

Police are getting tired of hearing this "they don't prevent" and we should be paying attention.

Preventing Crime against yourself and your property is YOUR Job... Not the Cops.

If you want to prevent crime, have a clue and present a hard crunchy exterior and obvious serious (death) consequences for violating that boundary.

It works.

If you are worried, hire some private consultants who can give you an assesment. They will tell you the same thing I did and only charge you a few K.

When the Cops get into "prevention" we are all fucked.

"Preventing" crime with statistical analysis and GIS applications already exists in DC and a trial in Baltimore is ongoing now.

This is the next big wave in law enforcement. Tied together with all the other metric collection mechanisms they have, will result in a formidable and utterly ignorant tool that will be used to put boot to ass in ways yet unseen!

Thrilling isn't it?

Sat, 12/11/2010 - 16:29 | 799009 trav7777
trav7777's picture

the law doesn't permit you in many places to present death as a consequence.  The State wants to exercise a monopoly over the use of force

Sat, 12/11/2010 - 16:47 | 799029 Thanatos
Thanatos's picture

Happens all the time where I live.

We have had 3 self defense killings this year in a town of 80,000 or so.

about 5 more that were hit but not killed including one hit in a run and gun in a parking lot at the mall.

at least 10 additional incidents of shots fired but no hits on the perp.

ZERO prosecutions against defenders.

"The West is the Best"

Sat, 12/11/2010 - 16:55 | 799053 cosmictrainwreck
cosmictrainwreck's picture

me confused..... you seem to contradict trav. No matter....what struck me about your prior post was flash to that flick "Minority Report". Kewl....we get to go to that wonderland, too, huh?

Sat, 12/11/2010 - 17:01 | 799066 Thanatos
Thanatos's picture

It's not that fancy.

Just an algorythm, a big database and a GIS.

Says go here at 7:00 to 9:00 pm and watch for murders.

They go and park a sqaddie on the corner and no murders happen.

They go back and report a success.

Dr. Crime sends them to a new location next time or whatever...

Sat, 12/11/2010 - 17:06 | 799077 Thanatos
Thanatos's picture

Not contradict, just pointing out that it isn't the same everywhere.

Our DA (now our governor) was pretty tough on lowlifes.

As long as you called the cops after the fact and didn't try to hide the body, you would probably be good.

Here is a link to some crime predictive analysis:


Sat, 12/11/2010 - 16:40 | 799030 chopper read
chopper read's picture

exactly.  i'm happy to wear a gun on my hip, but somehow this is now illegal.  why?  Because government seeks to monopolize force. 

Sat, 12/11/2010 - 17:29 | 799112 Thanatos
Thanatos's picture

Shoulder rigs are better imho. Unless your worried about IDPA rules.

With a shoulder rig you can take a crap and still have your roscoe handy. Hehe.

Sat, 12/11/2010 - 18:04 | 799168 chopper read
chopper read's picture

are there any in particular that you recommend, T?

Sat, 12/11/2010 - 18:24 | 799209 spinone
spinone's picture

Glock .45 or .357 mag revolver.

Sat, 12/11/2010 - 18:54 | 799260 Thanatos
Thanatos's picture

This is what I run most days:

Sig P220 Carry is what I "Carry" in it.

I like Galco and Desantis but EP Saddle is a lot nicer.

There are a lot of custom rigs out there too... But a little pricey.

The toolwork is optional, but I like it alot. Its worth the extra money IMHO.

People don't look you the same when you carry a decked out holster...

Sat, 12/11/2010 - 19:43 | 799331 chopper read
chopper read's picture

i like it!  i have that kimber in the picture, so its an easy sell.  i need one.  thanks for the recommendation. 

Sat, 12/11/2010 - 19:08 | 799276 Thanatos
Thanatos's picture

If you are an "outdoor" type that gets wet, sweaty, etc... Then consider a Nylon rig like a Bianchi..

Stay away from "Cheapies" like uncle mike unless you are a casual user. You get what you pay for in this dept. and it aint a dept. you want to skimp on.

Go to Sig Forum or and fire away. They luv noobs.

I almost feel guilty for gun talk here, No more weapon advice from me.

Do NOT follow this link or you will be banned from the site!