Guest Post: JP Morgan Wins: CFTC Position Limits Do Not Apply (To Them)

Tyler Durden's picture

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egdeh orez's picture

wow! WTF!!!

Can't all ZH readers get together and do something about this (and I don't mean death threats to GG)?

Honestly, this fucking corruption is so fucking blatant.  CFTC and SEC, designed to protect the public, is working to screw the public. 

Cheesy Bastard's picture

Can't all ZH readers get together and do something about this

Yeah, we can all buy physical silver and take delivery....Nevermind.  That would only work if there was a rule of law.

Pladizow's picture

"The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth becomes the greatest enemy of the State." 

-- Dr. Joseph Goebbels, Nazi Propaganda Minister

Mark Medinnus's picture

Ok, who's the lapwing flagging insightful comments? 

Triggernometry's picture

Damn that quote looks familiar.

Oh yeah, I posted it earlier.

Kobe Beef's picture

Dear Triggernometry,

You might find the below of interest, then, too.

"As civilization has become more complex, and as
the need for invisible government has been increas-
ingly demonstrated, the technical means have been
invented and developed by which opinion may be

--Edward Bernays, Propaganda


tmosley's picture

No, it will still work.  The LBMA and the COMEX will cease to be functioning exchanges by doing so.  They can play their paper games all they like.  All it will do is cause everyone else to ignore them.  They will have all the effect of the Zimbabwe Stock Exchange on world markets in the end.

Cheesy Bastard's picture

They will cease functioning and pay out in fiat, then move on to the run the next shell game  a few blocks down.  

breezer1's picture

i believe that this may be a defining moment in the demise of the greenback.

Red Neck Repugnicant's picture

I told you guys a month ago... don't bet the devil your head - you'll lose it. 



Chappaquiddick's picture

RNR - this looks like win:win to me.

If anything this latest development will exacerbate the backwardation in the physical market and possibly lead to a paper/physical disconnect.

The physical market is ultimately about the delivery of physical metal from supplier to consumer.  If that supply is exhausted by an incorrectly priced paper market fuelling a larger than supportable demand for the physical then the physical markets will seize.

If this happens and irrespective of the price of the paper the physical will be priced according to the real supply / demand which exists, while the paper market will become just like the MBS farce - backed by nothing.

Following the trend to its conclusion both sides win:  the physical market will be priced according to supply and demand of the physical free of the paper market and the paper market will collapse.  If you are a small time Joe holding physical - you win, prices to the moon.  If you're a big time bankster you win as the paper market implodes and your short position turns into a giant winner.


I will keep buying into this rigged and suppressed market as I know I am buying value.  Let them keep suppressing it.  They can't keep this going forever - they are tearing these markets apart and at some point the markets will disconnect on price.  The obvious moves now at State level on PM collection as an option for taxation are another pointer to massively higher PM prices.  If they reinstate the Gold Standard then we're already looking at close to $60K/oz on gold and that's assuming they actually do have the 8000 tonnes of Au they say they have.  If they don't get a move on and there's less gold than they claim then when they eventually do reinstate the gold standard we could be looking at a 10^4 devaluation in 40 yrs $35:$350000 / oz 1971:2011. 

The Fonz's picture

This is an interesting viewpoint, thank you Chappa :)

TheGoodDoctor's picture

Chap that is all fine and dandy until they issue an new currency. Then what?

Chappaquiddick's picture

Then we'll get screwed all over again.

I'm focusing on silver as I see it as a positive hold whichever way the market moves.  Its money so in deflation everything will deflate against it.  It's an inflation hedge store of value.  It's an industrial metal with wide application and growing demand and its finite and non-renewable.  I think 8-10 years from now it'll be as rare as rocking horse shit and people will be paying large amounts for it in whatever currency comes next - even if that currency is gold.

malikai's picture

No wonder people are going berserk and threatening to kill people from the .gov.

Mark Medinnus's picture

Insensitive to some, perhaps, like the princess who flagged you, but I agree.  As the storm nears, rats'll start jumping ship while rogues'll be shootin' shit.

Quixotic_Not's picture

The 'MeRiKan Sheeple approve of blatant corruption!

It's a similar human trait to Genghis Khan or Timur recruiting mercenaries that only get paid from the rape, looting and pillage of conquered peoples...that is, until the looters themselves are defeated.

Plenty of Lotto culture out there looking for money from nothin', chicks for free...everybody wants to be a pigman!

No worries, the last laugh will be on the blood lust mouth breathers, when the USofA will no longer be able to export inflation to BRIC countries and we start turning on each other!

Until then, Toodle-oo...

nasa's picture

Have pitchfork, will travel

Spigot's picture

More and more it seems to me the USA is ruled by a criminal cartel. They are so confident of their immunity that they do this sh!t in broad daylight without a concern that they will be run down.

One day, my sweets, one day. The fire will not go out for a very long time.

e_goldstein's picture

yeah. get out of all paper markets and anything that has a counter-party risk and go 100% into physical assets. 

for perpetuity.

Turd Ferguson's picture

With the silvergoldsilver bears as inspiration, I created this today for fun and laughs:

strannick's picture

Turd; Im one of your 20000 hits per day, but even guys in big yellow hats gotta upkeep their dignity.

How about a little less advertizing on ZH. This is our Rivendale, gotta keep the glacial spring crystal clear.

RobotTrader's picture

Yep, as I predicted.

JPM "the house" wins.

Never fight the house.

Just look at the stock today.

Spalding_Smailes's picture

.... "Spot-month position limit levels set at 25% of deliverable supply for a given commodity, with a conditional spot month limit of five times that amount for entities with positions exclusively in cash-settled contracts. " ................


One Ton Lady's picture

Don't worry about it numbnutts. We will just keep buying silver and gold. The truth of this matter will win out , soon.

AnAnonymous's picture

Never fight the house.


Until the house starts to fight you. At that moment, you discover that you have no other option than fighting the house but  the house has grown so powerful thanks to your relentless supportive efforts that fighting is useless. And you never fought the house. 

Bill Lumbergh's picture

"Just look at the stock today."

I am looking and all I see is a stock putting in a nice shooting star.

Cdad's picture better check that JPM chart again at the EOD.   Looks like trade over.

Arkadaba's picture

Not an expert on these things but really weird spike down, up and down again at closing bell.

e_goldstein's picture

you don't have to fight.

you just don't play.

Sudden Debt's picture

To take you example "the house" wins like in casino's, there it is the rule that the house must have enough funds in it's vault to ensure the payout of all the bets made.





But why do you think these rules are set in place?

To make it "fair"? The world isn't fair. If you want something you got to take it from someone else, so it's not that.



It's like playing russian roulette with the safety on. As long as the safety is on, the risk of getting shot is like ZERO.

Remove the safety, and you get a totally different game with MUCH HIGHER RISKS!



Now that they removed the restrictions, removed the safeties, THIS GAME IS SET TO GET INTERESTING.

Why? Their game is a paper game. You can have all the paper you want but if doesn't follow demand/supply the game gets very dangerous and can explode at any time.

Demand for silver will stay high for AT LEAST another 5 to 6 years if we can believe Benny B. that it will take 5 years for the job market to recover and we can really start talking about a recovery.



And if "the house" enables me to keep buying the real stuff at a low price, I should actually send "the house" a thank you letter :)

Xibalba's picture

'Open for public comments' means...."now taking bribes"



malikai's picture

Nah, it means: "Now ignoring you silly plebs"

Mark Medinnus's picture

You're both right.  They multitask.

Al Gorerhythm's picture

Open for public comment, eh?

Let me say what Theodore Buttler might say to Gary Gensler:

Gensler, you misserable piece of snake shit! Yoo have betrayed my trust in you, and as well have betrayed your countrymen and your country. 

You have shown who you pledge your loyalty to. You are a "Grimer Wormtongue", a Quisling, and from this point in time going forward, may you deservidly attract the disgust of the nation.

Your banking background should have been the telltale but I was blind-sided by your sociopathic slick tongue and feigned sincerity. It is now openly advertised as to who you have devoted your weasle fealty to.

You are on the public payroll and yet place yourself in the service of bankers. You are a treasonous cur and deserve the collective disgust of the citizens of the United States.

May you go down in the history of this fine country, as one of the most obvious, bought and paid for regulators ever to have disgraced the office to which you have pledged your loyalty. You cur. You are a traitor. May you be held in contempt by every citizen who comes to study the history of that treasonous entity known as the FED and its satellite banks and supporters.

You image should be placed on every silver coin, as a reminder to the nation as to who sold them down the river.

TheGoodDoctor's picture

I am very interested to see how Ted Butler responds. The CFTC's response is basically a middle finger to him. And Ted tried to be very polite in his assessment of Mr. Gensler.

Pladizow's picture

The USA is easily the most corrupt nation in history!!!!

The country is doomed - the sheeple are asleep and will be rightfuly slaughtered.

BobPaulson's picture

On the corruptometer, it's getting high but there is a lot of competition out there. Currently I'm living in Mexico; let me assure you that honesty is the anomaly, not corruption.

Arkadaba's picture

And it has been going on a long time. I lived for a year in Mexico as part of my misspent youth years ago. Was very naive going in and a lot less so a year later. But I did meet some wonderful people. Also loved the food - atole, corn on the cob with mayonaise and cheese, enchildas verde, chilaquiles ...

BobPaulson's picture

Sorry, double post from internet hiccup trying to get my tiny message down an ADSL line here.

Spigot's picture

Absolutely agree with you. Doomed. Corruption will reap its whirl wind.

Geoff-UK's picture

In history?  Well, that's a pretty high bar fella...


The country as it exists is doomed--but shepherd your local sheep as best you can to physical PMs and food storage.

XPolemic's picture

The USA is easily the most corrupt nation in history!!!!

Not even close. The problem is not the degree of corruption, but the fact that it is occurring in the Imperial Senate, Congress and Presidency. There are far more corrupt nations than the USA, but nobody really gives a rats ass about them.

The world's remaining superpower though .... that's a different story. Better to think of this as war, where the goal is to disrupt the enemies government, forment dissent,sponsor chaos, and win without firing a shot. The USA just happens to be losing that war at the moment (having been the top dog in the game for nearly 50 years).

What will happen is an inevitability, there is no way to stop it. Best just to have an exit plan, or a solid risk mitigation strategy in place.

Cinfultreat's picture

Wasnt the vote 4 - 1 to continue the process and now there would be 60 days of discussion until a final vote?  Which needs to be 5 - 0

junkiebev's picture

doesn't fit the site conspiracy narrative hence it did not happen

Careless Whisper's picture

your avatar is sexy. jus sayin


ronin12's picture

+1 - I love ZH but I do notice a propensity to skew things as negative as possible.

FunkyMonkeyBoy's picture

And the populous still sits idle by while the financial criminals act in the open...

... i truly believe people are so passive now to their criminal overlords actions that Obama could come around your house and stamp on your grandma's face in front of you and you'd let him 'cause he said he was for the greater good. 

God bless America.

cclaeys's picture

most people dont care, if you could attribute the disruption in their cable service to it then sure - not to mention the fact that the masses as a whole have no vested interest in it - just the schlucks that play by the rules.