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Guest Post: JP Morgan Wins: CFTC Position Limits Do Not Apply (To Them)
Submitted by Chris Martenson
JP Morgan Wins: CFTC Position Limits Do Not Apply (To Them)
Speaking of changing the rules...
Gold and silver are now down hard over the past two days and the reason may have something to do with the fact that the CFTC utterly caved to JPM in their long-awaited decision on position limits in a 4-1 vote.
While position limits will eventually be set, maybe, someday, the course of action taken by the CFTC grandfathers in JPM's (and HSBC, et al) current outlandish positions.
Here's the background (emphasis mine):
On July 21, 2010, the Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. Among other things, the Dodd-Frank Act amended the Commodity Exchange Act to:
- Require the Commission, as appropriate, to limit the amount of positions, other than bona fide hedge positions, that may be held by any person with respect to commodity futures and option contracts in exempt and agricultural commodities traded on or subject to the rules of a designated contract market (DCM).
- Require the Commission to establish position limits, including aggregate position limits, for swaps that are economically equivalent to DCM contracts in exempt and agricultural commodities (collectively, economically equivalent swaps). Such limits must be imposed simultaneously with limits on DCM contracts.
(Source)
The only wiggle room in the Dodd-Frank bill is for "bona fide" hedge positions which, I should state, I think is not a good idea because the exact definition of a 'bona fide hedge' is elusive.
For example, you and I could decide to engage in a massive short-hedged position where you short a commodity but buy calls from me. Your 'hedge' is only as good as my credit. Or perhaps you decide that oil and natural gas have enough negative correlation that you are 'hedged' by being equally short and long both substances. What if your correlation blows out? You're not hedged is the answer to that question.
Continuing into the meat of the new position limit ruling, we find these discomforting items:
The Commission’s proposed regulations call for:
Position limits to be placed on 28 core physical-delivery contracts and their “economically equivalent” derivatives.
Establishment of position limits on physical commodity derivatives in two phases:
- Initial transitional phase: spot-month position limits only, based on deliverable supply determined by and levels currently set by DCMs.
- Second phase: spot-month position limits, based on the Commission’s determination of deliverable supply, and position limits outside of the spot month.
Translation: Only the front month of any contract will be subject to the position limits initially. Later, at some undefined point "early next year", out months will be included. But for now it's just the spot month.
Impact: Watch out for crazy out-month behaviors as JPM et al. seek to skirt this rule.
Okay, that's not too terrible.
But this is:
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
That's just horrible.
For anybody like JPM that has no intent of taking physical delivery, they are prevented from accumulating a position that is 125% of the total deliverable supply. What sort of a limit is that?? That's like trying to limit the damage from auto accidents by limiting freeway speeds to 'no more than' 175 mph.
Also, anybody who might want to actually buy the physical is limited to 25%, so any potential Hunt Bros. need not apply. The outer limits of this game have been exclusively reserved for speculators and manipulators.
That's not even remotely the outcome I was hoping for. This 'ruling' tantamount to saying "carry on!"
And what does 'deliverable supply' mean? Does it refer to COMEX warehouse deliverables in current storage or can special players receive additional preferential treatment by including 'deliverables' available to them via contractual arrangements with the LBMA? Lots of questions are emerging for me here.
But it gets worse:
Exemptions for bona fide hedging transactions (based on the Dodd-Frank Act’s new requirements for such transactions) and for positions that are established in good faith prior to the effective date of specific limits adopted pursuant to the proposed regulations.
Translation: "JPMs silver position is in complete violation of even these generous new 'rules' so we're just going to let them keep it."
Impact: Just check the price behavior of gold and silver for the impact. The gold and silver markets have traded upwards of late in part because of the thought that JPM would finally be forced to play fair and reduce their outlandish precious metals short positions. Nope. Guess not.
Once again, all sense of fair play has been abandoned in the interest of giving a special handout to a set of large banks that are reporting near-record earnings. When, I must ask, is enough enough?
The message that I receive from this ruling is that US markets are now hopelessly and irrevocably captive to the behind-the-scenes wishes of the banking class, for which "everything and then some" seems to be not quite enough.
Worse, an already battered faith in the markets has been kicked again.
Here's my prediction: someday the US commodities markets will experience a very painful set of failures, big banks will be caught on the bad end of that experience, and they will simply, once again, lobby to have the rules changed in their favor.
To everybody who hopes to make money by being on the opposite side of that trade, good luck collecting your winnings. They will simply be rule-changed right out of your hot little hands.
Thank you for playing sir, and sorry about your luck; would you care to try again?
The CFTC is now playing the role of Lucy holding the football. If you don't wish to be Charlie Brown in this story, I'd advise that you take delivery.
Here's CFTC Chairman Gary Gensler describing the rationale, such as it is, for the CFTC's ruling [with my reactions inserted in-line]:
Position limits help to protect the markets both in times of clear skies and when there is a storm on the horizon. In 1981, the Commission said that “the capacity of any contract market to absorb the establishment and liquidation of large speculative positions in an orderly manner is related to the relative size of such positions, i.e., the capacity of the market is not unlimited.” [So far so good!]
Today’s proposal would implement important new authorities in the Dodd-Frank Act to prevent excessive speculation and manipulation in the derivatives markets. The Dodd-Frank Act expanded the scope of the Commission’s mandate to set position limits to include certain swaps. [Still good]
The proposal re-establishes position limits in agriculture, energy and metals markets. It includes one position limits regime for the spot month and another regime for single-month and all-months combined limits. It would implement spot-month limits, which are currently set in agriculture, energy and metals markets, sooner than the single-month or all-months-combined limits. [Okay, spot-month goes first, before single-month and all-months combined. Got that. With the grandfather and 'bona fide hedge' exemptions of course. Left that part out...]
Single-month and all-months-combined limits, which currently are only set for certain agricultural contracts, would be re-established in the energy and metals markets and be extended to certain swaps. These limits will be set using the formula proposed today based upon data on the total size of the swaps and futures market collected through the position reporting rule the Commission hopes to finalize early next year. ["Will be set?" Early next year? Isn't that a year from now? Why so long?]
It will be some time before position limits for single-month and all-months-combined can be fully implemented. In the interim, if a trader has a position that is above a level of 10 and 2 ½ percent of futures and options on futures open interest in the 28 contracts for which the Commission is proposing position limits, I have directed staff to collect information, including using special call authority when appropriate, to monitor these large positions. [For silver, this amounts to some 5,300 contracts. Well above the 1,500 contracts Ted Butler called for based on the 1% of world production limit. It's too high.]
Staff will brief the Commission and make any appropriate recommendations based upon existing authorities for the Commission’s consideration during its closed surveillance meetings at least monthly on what staff finds. [Oh, so this is not a regulatory action, but a fact-finding mission? It's rather unusual to find a government body that takes care to under-interpret a congressional mandate for regulatory power, but we seem to have one in the CFTC. Odd that such a loss of regulatory nerve only seems to occur when the interests of big banks are on the line...]
(Source)
Let's close with a statement of regret by Bart Chilton who tried very hard to do the right thing, but couldn't get the other four commissioners to see things his (and my/our) way.
Statement of Commissioner Bart Chilton at the 9th CFTC Public Meeting on Rulemaking under the Wall Street Reform and Consumer Protection Act
January 13, 2011
As regulators, I think we have one key mission. It is embodied in the Commodity Exchange Act. We have a singularity of purpose to ensure efficient and effective markets and to prevent and deter fraud, abuse and manipulation. Quite frankly, I think we can do better. We can because the new Wall Street Reform and Consumer Protection Act requires that we develop what many of us consider to be some fairly precious parameters.
Today, I am hopeful we will move forward to propose a position limits rule, a most precious parameter that we should have proposed much earlier in a way that would have implemented the provision as Congress intended. That's not happening.
Yesterday, eight U. S. Senators told us to move forward on limits. That follows two other senatorial letters from last month.
This is a Commission of five individuals, a group of people who make these decisions. That pretty much ensures no individual will get their way all the time. I'm certainly not getting my way on position limits, nor are the Senators who wrote to us.
I am thankful that we will have position points in place as a kind of glide path to position limits. As I've said repeatedly, points are not limits. However, they will help us learn more and do better as we go forward in further developing important—and precious— parameters.
(Source)
Thank you for trying Bart, I am grateful for your efforts. I wanted to give Gary Gensler, the former Goldman Sachs executive, the benefit of the doubt and I did that. All benefit and all doubt now removed. Once a squid, always a squid I guess.
I am still trying to get my arms around this ruling and its likely impact on gold and silver prices going forward. Long-term this changes nothing except to reinforce my conviction that I have no interest in playing in rigged markets.
Further, given the opportunity to do the right thing in an open and transparent manner, the CFTC, quite predictably, caved to large interests - the same large interests that are helping to shape, if not drive, current fiscal and monetary policy.
For more on rule changing, please read yesterday's piece "Don't Worry, They'll Just Change the Rules". I guess I should append the following to that title "...or decline to enforce them.'
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Let them short. The more they drive down the price, the faster it flies out of the mint. Idiots.
Exactly. This is my main foundation to PMs - they must maintain price in some narrow price channel - possibly low to make paper money looks good, but enough high to not let peasants of the world buy all the stuff in one week. Premiums for physical metal are driving fundamental. And bullion investors don't care about daily changes in USX or corrupt CFTC decisions.
You got it, shorty. Pass the popcorn and slurp some suds. Best show in town.
Its all good. I just redeemed my rewards. My Amazon gift card is in the mail. Thanks JPM. Also, Thanks for the free coffee and danish.
my danish tasted like crap.
I am dreaming . I will wake up and realize that it was only a bad dream .
Unfortunately this is the "new reality"...bad is good and good is good...any problem can be solved by ignoring, papering over, and printing more currency...long live the Bernank.
This is what pisses me off. Not only can they force everyone to accept and trade with their irredeemable paper money but they can use unlimited amounts and surrogates to naked short things and set prices. It's called Central Planning. What separates us from the former Soviet Union? Not much except our culture is probably much more tacky and our masses infinitely more stupid then they were. At least all the Soviet citizens knew how crooked their government was.
And they were better at gymnastics.
It looks like JPM withdrew 6.3 Moz of silver from SLV to cover COMEX silver position this week.
http://about.ag/SLV/comex.htm
Wow, that's a great site. Thanks for the link.
Why bitch? You have more time to buy physical. All they have is dollars. You know which way they are going. At some point it won't matter how many sheets of FRN toilet paper an ounce buys.
Dear CFTC, thank you for extending deep discounts on physical silver until the paper market breaks. History will note your attempts to let the average bloke get their piece of eight.
See? Now THIS is how you make lemonade out of lemons!
Keep buying bitches! I know I will...
It is all pretty simple. A "bona fide" hedge position is whatever JPM needs to do to keep the scam going and the Bernak approves. Seems like the markets can continue to be manipulated longer than the shorts can stay solvent. Month to date, the quartet of Harry, Robo, Timmy and Ben is winning.
the CFTC is JP Morgan Goldman Sucks and JP Morgan Goldman Sucks is the CFTC.
reptiles looking in the mirror.
Actually, to be more specific, JP Migraine owns the Treasury, Goldman Sucks owns the Federal Reserve, and the Federal Reserve shares equal billing rights in the shadow government with the Industrial Military Complex.
Rule of law? A distant memory.
The Constitution? A dying whisper of a once great vision.
Like watching the colapse and fall of the Roman Empire in real time.
I'd love to see some honest statistics on how many of USA's wealthiest are scrambling to get themselves and their money the hell out of Dodge, or are already gone.
to where?
Good point.
We fled Aus, for Canada. We'd rather take the dismal possibility of being taken down with the US, than the even more dismal possibility of being run by China.
Be at least as aware of what you're running TO, as what you're running FROM.
Hint: If you have ever played the game of Risk, there is one continent that is NEVER considered strategic in the quest for world domination. Guess which one.
If you said South America, then you'll know where to flee.
I hear Argentina and Uruguay are nice this time of year. On the river where the painted birds live.
It tells you how bad things are when they have to rig all markets to preserve what they believe is the solvency of the big banks. It is funny how these guys cheered the collapse of the Soviet Union and now they have taken us to the same point, but will do anything to keep the shit from hitting the fan. Sinister is the JMP
You're on to something there, Johnny. The collapse of the Soviet empire came as a thief in the night. Few even dreamed that it would happen so quickly and so thoroughly. Let us hope that history repeats itself.
Once the crowd turns (and it will), the Game is Over.
i told ya'll a long time ago...the bankers own every branch of this banker bitch government....aint nothing changing unless it is made crystal clear that if u fuck over the people u r gonna get shot the fuck up...say hello to ur illusory democracy and free markets...
FUCK ALL BANKERS...................
So what does this do to the natural gas and electricity markets?
It's only a delayed execution.
Physical kills the papermarket
Physical kills the papermarket
http://www.youtube.com/watch?v=BTT3-vA25Zk
I mean really, what is the point of having laws and regulatory agencies at all?
Simply a promotion to comfort the sheeple, fool them in to thinking big brother is watching out for them, while picking their pockets and raping their daughters.
To keep the peons in line. Laws don't apply, or are changed at will, for the masters. This action justifies that you are one big sucka to play with paper. Physical is even MORE important now. The fraud is so blatant that you can not trust anyone or anything, the only thing that makes sense is for us peons who are trying to stay financially secure is to buy physical.
I believe one of our Argentinian friends on ZH said it shortly ago. Hide your assets now! These people are gonna suck every last drop of blood from our veins.
You are exactly right. Only fools could believe that contract law, or any law for that matter, still applies today. Bear Stearns stock holder's investments stolen overnight was the shot o'er the bow. GM senior bondholders given the shaft in favor of unions by our apparently foreign-born "President", another momentous event. The flash-crash in May was a significant sign of things to come. We have been repeatedly warned by TPTB that they can wipe out any paper investment in a few hours, or a millisecond, whatever they want. Anyone who continues to trust in paper promises is going to end up helpless. There are no alternatives to protect our wealth other than gold, and especially silver, against what's coming. TPTB will take their cut from those who end up having something. But what will they take from those who don't own anything? These people will be their slaves, plain and simple.
And why should anyone else obey them? The social contract is broken. 2011 is off to a hell of a start.
And yes most people aren't paying attention but more and more are. I'm a bit of news junkie and what I'm seeing in the comments sections of even MSM sites is interesting. Most are not buying the propaganda.
It will be okay. Frequent flier miles are going to be redeemable for dollars. Dollars are going to be redeemable for CFTC "points", then your CFTC "points" are going to be redeemable for Farmville credits. We've broken it down. If you'll simply link through us, we'll get bonus affiliate points with Groupon which are redeemable for cupcakes. It's based on a thesis of the inherent "wealth of nodes" as promoted by the Marie Antoinette Institute for Frosting Econometrics.
http://tradewithdave.com/?p=4791
Dave "Zynga" Harrison
Laws and Taxes are for Peons and Peasants.
Like Hambone said, there are no markets, just rigged casinos.
So knowing this reality, what happens to Fraudclosure? Will the courts do the hear/see/speak no evil monkey and then banks are in the clear?
WTF. The Alice in Wonderland world has more consistent rules/laws - Kleptocracy, Plutocracy, FuckedUpOcracy, but certainly not a Democracy or a Republic.
Great article discussing what the big boys in DC are discussing wrt fraudclosure:
http://www.nakedcapitalism.com/2011/01/dc-puts-its-bankster-friendly-solution-for-foreclosure-fraud-on-the-table.html
The Lobby motivates the thieves... the Lobby is controled by whomever pays them... now asume for one fucking second that its not just greedy bankers? what if it where someone else?
there are no protections afforded the populace, never has been.
Everyone in Public Office wants a cushy Private job post that publicly held office.
Thusly the Private Market works.
This is a good thing. Physical will still be cheap, until it isn't available.
And the paper markets will be turn into those books that value baseball cards at 500 bucks, but you can only sell it for 200. In reverse.
pods
http://about.ag/
big upps to this site!
So who do we mass e-mail to let them know the people are paying attention to this?
From everyone on CNBC to the government employees to the politicians its all one big Goldman Sachs good ole boys network they just keep changing positions. I can't believe more people aren't going bezerk.......
Guess I can keep accumulating Silver bullion for the forseeable future. Was my plan all along. Still hate too see obvious market manipulation taking place for all regulators to see. Being Grandfathered was great when they raised the drinking age from 18 to 19 (1978). Sucks if you're expecting a fair market to invest in..... Hats off to T. Butler and everyone else who worked hard making this public knowledge.......
Silver Fundamentals Explained 2 - Office Series 8
http://www.youtube.com/watch?v=P6oCXsN3AWk
I read an article on Sinclairs site today China now has 1 million people with gold backed bank accounts........Maybe China is holding this up as part of some kind of agreement because they own us. Maybe since Steve Nash and half the NBA now do commericals over there we can just sell them the fuckin NBA and ship the whole thing over there.
No Justice, No Peace!!!
good get rid of the NBA who gives a shit about basketball.
Do not pay attention to the Crimex or London 'paper' price. It has no meaning. Physical trumps paper in all markets. Just look at what a 1 oz. Silver Eagle commands on eBay---a free market. If you own the physical you can sleep easy knowing someday no amount of fiat can pry you from the physical. It is 'God's' money (and I do not say this from ANY organized religious belief) and will always be so.....
Just FYI...Bible facts.
Of all the metals, Gold is mentioned both first AND last.
Gold is mentioned in the second chapter of Genesis, the first book of the Bible and in the second to the last chapter of Revelation, the last book of the Bible.
Gold is found in the Garden of Eden (the beginning), and in Eternal city of Jerusalem (the end)....where the streets are paved with it!
Like God, gold is incorruptible.
For me, our gold and silver answer a very primitive need.
They are the main reason I can sleep easy at night. You think I'm exaggerating - I'm NOT.
I don't trust the government. Corporates even less. I can't count on anyone's future profits or earnings (or even their continued existence) to pay for my retirement. I don't trust banks. I understand inflation. I don't trust any government scrip to outlast its government, and I don't trust any government to last my whole lifetime.
Property has a lot of associated expenses, and can put a big target on your back for a hostile government. Most people have to get rid of their property when they are old, either by passing it on or selling it.
Gold lasts. It's portable. It's hard to steal from those of us who know how to hide it. It's hard for governments and corporates to confiscate or even know about. Its value is easy to assess.
I get tempted to worry about the future, especially at night. I've never had security in my life, and maybe that's why part of me wants it especially as I get older. We are closer to the end of our earning strength, closer to chronic or sudden illness, closer to the gradual dying off of family and friends.
When that anxiety comes, I think of our gold and silver. I know we'll always have *something* real that can't be taken away from us. And even though we aren't rich by any stretch, as long as we have our gold & silver we will never be threatened with destitution.
why would the silver miners play this game and supply the LBMA and CRIMEX.
The LBMA and Crimex back in pre-Internet days had something to offer, now it is just pure suppression scheme.
Seems like one solution would be for the miners to get together, get some venture money and create their own worldwide warehousing, spot buying, and delivery platform. This way there would be true spot pricing independent of London and USA.
Wrong. the lower the paper crimex price is the more affordable it is for the rest of us to get physical silver. What is the problem with JPM shorting paper silver and making physical silver more affordable for us? That's what I want to know.
So how many ounces of world silver production must JPM be short to get you the price you want? How many individual investors buy silver on the crimex? It is a FRAUD, plain and simple. As with everything else now in this country, it is all about corporations and big business. I agree the miners should band together to bring about their own exchange. The London and Crimex exchanges would be put out of biz. However, unfortunately, most miners do not complain about what JPM and others are doing with the paper price. They control it all but are 'bullied' by the bullion banks....
I am no longer a buyer. No more cash. I stopped when silver was ~$10 & gold ~$780. Delivered. Now I am into guns and ammo. And whiskey. What price/oz do you need before you have yours delivered? That's what I want to know.
Go back to your econ 101. The paper price you think silver is worth is an artificial price ceiling. Thats why there is a shortage of the physical at that price.
There will be a whole seperate market price for the real thing. Thats what we call premium and the quotes will rise or the shortage will continue. Be prepared to pay spot plus a shit-load to touch it.
Ok, so now silver spot is an imaginary number batted around by JPM and counterparties, while physical completely decouples and goes its own way.
That's all this ruling means.
kitco should put a j in front of their quote.
HAR HAR. Engineering joke bitchez!
Please explain your "engineering" joke.
i = sqrt( -1 ), j is used by engineers instead of i, because i is used to denote AC current flow.
and sqrt (-1) is an imaginary number...
http://en.wikipedia.org/wiki/Imaginary_number
+7
So we've got more time to buy physical on the cheap. What's the big deal??
how much time?
Hell I don't know. More than we did yesterday?? At least through the weekend.
Two clear messages here:
1) Buy as much physical bullion as you can get your hands on
2) Ensure it is well hidden where the plunderers can't get their slimy claws on it, ideally out of the USSA completely.
Another lesser solution is for the CFTC to require holders of over X contracts to report those holdings for release on a public report.
This might just cause the whole thing to blow up faster.
Before, players who sought to own a significant long position could just buy paper and roll it month to month until they decided to sell it. Now, they will have to buy a long position to the limit, stand for delivery, and then take delivery before buying more long positions.
This could accelerate the drain of the physical metal out of the COMEX.
+1000
many of the banks are already asking more than the dealers.
http://silvergoldbull.com/s/features-home-page-products/silver/1oz-canadian-silver-maple-leaf-coin.html
CTFC is just enforcing what I've been saying all along, the futures markets are not intended for physical supplies, only for cash settlement. They'll let cash players load up all day long on either side, but you will not be permitted to stand for delivery.
If you want silver, call a miner.
CTFC is just enforcing what I've been saying all along, the futures markets are not intended for physical supplies, only for cash settlement.
Yeah, they are a price rigging fraud. Their failure to deliver will remove the illusion that they are anything more.
This reminds of when the SEC passed Reg SHO to curtail naked shorting. However, they grandfathered every trading group that had a naked short position that was too big to cover under the reasoning that it would create dislocations in the market.
Face it, the big boys play by a completely different set of rules and are never subjected to anything that would cause them to take a big loss. Case in point--Madoff was a "big boy" player and even though the SEC was notified dozens of times about his Ponzi scheme, they always looked the other way. It took his own sons turning him in and his own guilty plea to do him in.
JP Morgue is still in over their heads if they have to have the CFTC bail them out.
McCudden was M'f**kin right about the M'f**kers. How about the RICO suits?
No, the CFTC... IS... JPMorgan. And vice versa.
This is an admission that Masters has been a total failure and can only survive by the CFTC legalising corruption for JPM.
The CFTC here simply confirm what is generally kown, they are a corrupt organisation established solely for the purpose of allowing corruption to proceed unchallenged. The CFTC is itself a functional arm of corrupt bankers.
The real price of metal is spot plus whatever premium JPM pay to not take delivery when you demand it.
How soon before we get a pure physical market where traders are dealing in real metals and their delivery. Where JPM and the CFTC and HSBC can go maturbate into thin air.
These corrupt CFTC and bankers ought to be careful. The world can change all too suddenly. One day they can think themselves totally safe, free from accountability and law and punishment for their crimes. History is replete with sudden wind shifts in fortunes, where today's arrogants become tomorrows death row inmates.
When BBs crashes this ship into the rocks ( and this is inevitable) the game is over. The eventual truth commissions will line up these corrupt bankers and regulators and sentence a number to death for economic treason. Regulators will be especially punished as corruption and the destruction of the country can only happen with bent cops as watchdogs. Thus their crime is far far greater, and their punishment under law withoug mercy, and demanded by the public.
And on that day, I'll be at the front with my knitting, enjoying the fate of those...what was the word?... 'useless eaters'.
JPig Morgan is a an evil little pustule in human history. We must remember, record and re-tell everyone we know, so that there comes a time when the names of its vicious, parasitic banksters will be as loathed as 'Hitler', and their crimes as well remembered.
physical exchange opening in singapore soon.
I googled that just now, but not sure what you're referring to. Are you talking about something other than London Metal Exchange LME Asia, or Singapore Mercantile Exchange (SMX)?
Thanks Kina. +100
Eloquent, logical, and genuinely encouraging.
China just recieved the key to unlock the yuan. Freedom to take control of the paper gold market with surplus USD's. Shyeh Shyeh CFTC !
Can there be any doubt whatsoever?
The entire government of the USSA, the Federal Reserve, and all large financial institutions are guilty of treason, fraud on never before seen scales, and continuous crimes against humanity.
#1: Sell ALL paper assets.
#2: Do not pay any taxes whatsoever.
#3: Never make a morgage payment again.
#4: Convert all wealth to physical silver and gold.
#5: Charge all credit cards to their limits and default.
And that's just the warm up, folks. Otherwise, kiss your ass goodbye.
#1: What are you going to buy stuff with after (#5) you have maxed out your credit cards? Barter?
#2: That can get you into a federal pen.
#3: Fine, if you want to lose your house.
#4: Where are ya gonna store it after you lose your house?
#5: See #1
#1: gold and silver.
#2: depends on how you do it.
#3: i own no house; others are underwater.
#4: same place as now, nowhere near a house.
#5: see #4.
Funny how lessons from history make zero difference. Humans beings are morons, and the 99.999% who do nothing from start to their walk into the gas ovens pretty much asked for it.
Oh, and by the way, no matter WHAT the criminals at JPMorons and GoldmanShafts and their ilk do, all they get is... massively richer, massively more unearned gains, all stolen from people who accept ANYTHING.
This is a GOOD thing. Because it means I can continue to afford to buy silver. Once the shelves (of silver) go empty and even the big volume physical dealers tell you they are backordered -- then the MSM will notice, and joe and jane six pack will all run to buy some. At which point -- massive spike in price.
"The only wiggle room in the Dodd-Frank bill is for "bona fide" hedge positions which, I should state, I think is not a good idea because the exact definition of a 'bona fide hedge' is elusive."
Which is exactly why such vague language was used. Did you really think Dodd and Frank were going to stand up to the banks?
So when does physically throwing the corrupt bums out on their asses go from a terrorist act to a patriotic one?
After a successful revolution, the return of stability, and when the winners are starting to write the history books.
Until then, get used to the following:
terrorist subversive gloomer angry bitter reactionary extremist crackpot criminal crazy spewing hateful selfish paranoid
(But, interestingly, not "wrong" - I don't hear that a lot. If you're all those other things, then it doesn't matter whether or not you're right.)
Learn 'em. Own 'em. Love 'em. We are all niggers.
Jimi Hendrix was a nigger.
Jesus Christ and Grandma, too.
Jackson Pollock was a nigger.
Nigger, nigger, nigger, nigger, nigger, nigger, nigger.
Post modernism wins again: there is not truth.
There are no facts.
There is no "public interest."
Governments do not lie, only because lies do not exist.
I spent nearly forty years teaching American government, managing my own portfolio, and trying to lead an ethical life. It was a waste of time.
Everything I taught has been turned into a lie - if it ever was true.
Every investment strategy that worked for me was ultimately restricted by my broker: too exotic for their tastes for a "small" non=professional investor.
There appears to be no one who pursues anything but self-interest in a non-Madisonian way.
Now, so shall I.
http://www.youtube.com/watch?v=rJDLZRv1otE
Kingdom Of Heaven-King & Balian
It is an uphill task to gather political will to effectively control the too big to fail banksters. They have a lot of influence on the political class, the rule makers and the rule enforcers due to their enormous purchasing power. So irrespective of the position in the government, everyone works for the benefit of the banksters.
The rest of the population have to be dumped with lots of problems like unemployment, high cost of living (thanks to speculation in commodity exchanges), foreclosures, etc. so that they don’t devote their thoughts to the root of all problems and revolt against the comfortable arrangement between the banksters, central bankers and the governments.
This too big to fail group has grown more powerful in size and influence in the last two years and is likely to end up being too big to bail bringing down complete economies of countries with them.
http://www.marketoracle.co.uk/Article24581.html
I've been getting my hands on the 100oz silver bars.
Have 10 of them.
Does anyone have any research on how much total physical silver bullion is held globally
by investors?
I believe it is thought to be 5 billion for gold and about 1 billion for silver. IE physical held for investment.
Does any know how much total phyisical silver bullion
is currently held by all investors?
Did corporate hedging for crude oil companies in the mid 80s...at that time atleast in order to qualify as a "hedger" and get hedger margins you hade to mine, produce the commodity in question.......... is this is not the case today ????
CFTC says we're Bonnie and Clyde. We won't be taken alive!
Oh really?
Who is John Galt?
In the end game the extend & pretend of the squids is to keep the public away from what the rat basturds know!! Gold/silver are real money and compete with fiat paper which eventually is printed to zero by all goon governments!! The scare/fear factor is no different than before in holding; accumulating hard currency for when paper reaches it's intrinsic value=zero!! I've been accululating silver eagles for 3 years now and crimex price action has not detoured me from making my monthly purchase in Jan '11 as I will in Feb '11! It's a self evident truth we have finite resources and the banksters extend and pretend the resources are unlimited through paper ponzi fraud!! The worst which ever hapened 400 years back among the goldsmiths/rothschilds is all people demanding delivery in allocated gold accounts carrying certificates!! There was hell to pay as the bankster fraudsters lost all credability and the rat basturds will again as fiat currency fractionally reserved in certificates of delivery or backed by thin air political promises to retain value as the USD; will lose over hard currency real money gold/silver! We the people haven't a clue how far the fraudsters can extend & pretend in having PAPER CURRENCY RETAIN ANY VALUE ABOVE ZERO! WE THE PEOPLE WHO KNOW MONETARY HISTORY REALIZE IT HAPPENS SUDDENLY OVER NIGHT! The confidence game in paper money having value is soon to be up and the cycle purged!! Just know that when that cycle is up if you have anything which burns you probably don't have real money and ceratain won't be able to turn in ashes for what is and has been real money since man walked; gold/silver!! Just make sure you know that at this time which is very soon upon us; 100% possession will be the law among the lawless fraudster banksters! If you don't have gold/silver in your hand you don't own it!! That simple!!
Yeah...
http://www.gordongekkosblog.com/2010/03/its-going-to-implode-buy-physical-gold.html
No surprise to me. It was the same dog and pony show that we saw back in 2008 when the CFTC held their position limit hearings for oil markets when prices went crazy. Blythe herself was the presenter for JPM on that one. I honestly think the big commodity trading banks just dusted off those old presentations and changed the name of the commodity from oil to silver & gold.
The CFTC is a sham and so are most of the commodity futures markets they supposedly regulate. That’s the biggest reason I would never invest in any of them; they’re not really markets at all, more like a carnival side show to lure in small investors who can never win anything worth the price of a toss in the long run.
"Why Steal Less, when you can Steal More?"
Wall Steet Mantra, 2011
Short term they can maipulate the price, but long term the market will decide the VALUE of the commodity---gold, silver, oil.
Since the Fed and the ECB have openly stated their intetnions, i.e., continuous and endless printing to finance financial market bailouts, my prediction is continued long term rise in the most impirtant commodities---gold, oil, silver, food, plt, palladium.
In reality CFTC's latest hearing was not so bad.
If you see my videos in www.youtube.com/user/SilverShortageTV ,you will understand that in the December 16 2010 hearing it was disclosed for the first time ever that the COMEX silver manipulated existed for so long due to non action of Chicago Mercantile Exchange Group (COMEX owner).Due to being a SRO -Self Regulatory Organization ,it was CME 's obligation to check the entity that holded 40% of the COMEX silver market and ask for further details on its spot and swap positions.In January 13 2011 meeting Commissioners O'malia and Sommers asked questions about the CFTC staff checking the spot and swap positions on the traders holding above position points levels,ofcourse without naming JP Morgan's name .Chairman Gensler has ordered for such CFTC check on the traders above position points.Commissioner Chilton stated on position points ''not less than monthly CFTC staff will brief Commissioners on those traders that exceed position points.''
I find this stuff fascinating to say the least. Can someone explain to me in simple terms why JPM is so intent on manipulating the silver market to keep the price supressed? Why this metal and why the concerted effort to suppress?
This CFTC decision reads like "The Field Manual: How To Destroy Trust in Markets."