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Read Ted Butler's Prophetic Letter Warning Of COMEX Silver Manipulation... In 1989

Tyler Durden's picture


After precious metals market manipulation finally came out of the tinfoil hat closet and was officially recognized in 2010, subsequently becoming mainstream, following various whistleblowing disclosures which led to a long overdue investigation by the DOJ, and CFTC commissioners such as Bart Chilton admitting that there is in fact open market manipulation in the silver futures market by large short position holders, nobody is more relieved than Ted Butler. As the attached letter written by Butler shows, the PM expert wrote with excruciating detail everything that would subsequently be proven true. A key excerpt from the letter: "the true sorrow in this whole affair is that, in addition to the unnecessary financial punishment, the producers and owners of Silver (including the U.S. government) have experienced over the last six years, there are tens of thousands of contracts held short by innocent and unsuspecting speculators who are in for a ruinous shock. Do not be surprised, when this manipulation is attacked, to see the price of Silver open $20 per ounce higher at that time. Since that would represent a $100,000 loss on each contract held short, the current $2,000 COMEX margin will provide scant protection against the inevitable massive bankruptcies for those shorts not holding real Silver." The kicker: the letter was written on April 25, 1989.


h/t Mike Krieger and Ed Steer


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Fri, 12/31/2010 - 15:13 | Link to Comment gmak
gmak's picture

And 21 years later Silver reaches above $20. There is a problem with too much knowledge - It is the Heisenberg Uncertainty principle. We can know what will happen. We can know when something might happen - but never both at the same time.

Fri, 12/31/2010 - 15:24 | Link to Comment pcrs
pcrs's picture

lol, funny twist (it happens rarely that the exact time of a happening is known, but not what that happening is about. At most you could go with the "chatter on the internet tells us a terrorist attack is coming next Wednesday", but that is mostly scare tactic to sell more weapons and take more freedoms away)

Fri, 12/31/2010 - 15:13 | Link to Comment redrob25
redrob25's picture

And JPM is moving silver shorts to offshore banks, supposedly, so they will not be affected by CFTC rules.

Fri, 12/31/2010 - 15:21 | Link to Comment unwashedmass
unwashedmass's picture

and once there, they will pay off every official in sight to keep things "under control".....

until, they can't deliver.

at this point, they can push silver down to 4 per ounce, (where i started buying), and even then, i wouldn't sell....

i'd put every dime i have in at that point.

it will explode. only question is still, when? and i've waited ten years, i can wait a few more.....


Fri, 12/31/2010 - 15:27 | Link to Comment JLee2027
JLee2027's picture

It explodes when the metal runs out.

And they appear to be out, so the time is imminent (March at the latest).

Fri, 12/31/2010 - 15:57 | Link to Comment KickIce
KickIce's picture

I think it will take either a run on physical and/or China and Japan seeing the handwriting on the wall and dumping their bonds.

I don't there will be no more public announcements of QE but the states will be bailed out.

Fri, 12/31/2010 - 16:20 | Link to Comment JLee2027
JLee2027's picture

The run on physical started last summer. They are out! Silver is in backwardation (current price higher than future).

"There is no commercial silver left"

Fri, 12/31/2010 - 15:21 | Link to Comment buzlightening
buzlightening's picture

hehehehehehehehe! One nation under fraud!!  One thing about frauds!  Once exposed they collapse in fine devastating fashion!  Jpig may have had sometime to off load risk on innocent folks but they'll end up in the same pit the rat bastards dug for others!! Good ridden's to, to big to fail!!!  

Fri, 12/31/2010 - 15:26 | Link to Comment VegasBD
VegasBD's picture

The sentence structure of this letter is very similar to Tyler Durden's.

Great (re)find though!

Fri, 12/31/2010 - 15:26 | Link to Comment mick_richfield
mick_richfield's picture

And China is moving the silver offshore (off of our shores...) so that it will not be affected by Anglosphere corruption.

Fed Delenda Est.


Fri, 12/31/2010 - 15:30 | Link to Comment JLee2027
JLee2027's picture

I believe I recognize that proof peace dollar...

Fri, 12/31/2010 - 15:29 | Link to Comment JLee2027
JLee2027's picture

BTW, that is one amazing letter!

Fri, 12/31/2010 - 15:37 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

The fact that this letter was written in 1989 is just more proof of how long the magicians can keep the general public (as well as so-called financial professionals) spellbound and lost in the fog.

Fri, 12/31/2010 - 15:36 | Link to Comment SteveNYC
SteveNYC's picture

Shocker to read the name "Wendy Gramm" in there. I wonder how much real damage the dynamic-duo of Wendy and Phill Gramm have done to this country? How much have they personally and financially benefited? Yet still, the party goes on.

Fri, 12/31/2010 - 15:39 | Link to Comment JLee2027
JLee2027's picture

The road to hell is paved with good intentions.

Translation: Lacking proof, I doubt they benefited at all.

Fri, 12/31/2010 - 17:08 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

CFTC judge, planted by Gramm states to sitting judge." There is not a case that comes before me that I will find in favor of the plaintif".

In its 36 year existance, the CFTC has only been able to find enough evidence, in a Building 7 size stack of evidence, to successfully prosecute 1 stinking case. 

Building 7 collapses into its own footprint, as all buildings enexpectedly do.

The beat cop  ushers witnesses away, authoratively, reassuringly pronouncing, "Nothing to see here. Move along now".

The witness, normalcy bias working overtime, skips away trilling; Tra la la la la.


Fri, 12/31/2010 - 21:19 | Link to Comment JLee2027
JLee2027's picture

Yes, yes, I know all about that. It's not proof.

Fri, 12/31/2010 - 21:45 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Wonders will never cease!

Tra la la la la.

Sun, 01/02/2011 - 21:20 | Link to Comment Guy Fawkes Mulder
Guy Fawkes Mulder's picture


Fri, 12/31/2010 - 19:23 | Link to Comment Vendetta
Vendetta's picture

yep, except a lucrative job at UBS for Phil not to mention all the benny's that we don't know about

Fri, 12/31/2010 - 19:25 | Link to Comment SteveNYC
SteveNYC's picture

Thank you. THe crooks really do sleaze together. UBS/Gramm a match made in crook heaven.

Fri, 12/31/2010 - 17:54 | Link to Comment snowball777
snowball777's picture

Damage: trillions. Benefits: billions.

Fri, 12/31/2010 - 19:52 | Link to Comment huggy_in_london
huggy_in_london's picture

not as shocking as the impact lou gramm had in the 80's on hairstyles

Fri, 12/31/2010 - 15:37 | Link to Comment chet
chet's picture

Silver is pretty happy today.

Sat, 01/01/2011 - 23:25 | Link to Comment CitizenPete
CitizenPete's picture

In a couple months it may be hilarious. 

Fri, 12/31/2010 - 15:42 | Link to Comment antidisestablis...
antidisestablishmentarianismishness's picture

No problem, just get yourself some 20 year LEAPS.

Fri, 12/31/2010 - 16:00 | Link to Comment Cow
Cow's picture

Happy New Year Karl Denninger

Fri, 12/31/2010 - 16:02 | Link to Comment blindman
blindman's picture


MSNBC w/ Cenk: Matt Taibi - Magic Money Printing Machine at The Fed


@ryanshaunkelly "A nation can stand its fools, it can even stand its ambitious, but it cannot stand wickedness from? within" - Cicero

MotesTV 1 month ago 3

Fri, 12/31/2010 - 16:48 | Link to Comment Armchair Bear
Armchair Bear's picture

My Hero...

Fri, 12/31/2010 - 16:56 | Link to Comment Stonecold
Stonecold's picture

Why is the margin $2000 when I am paying over $10,000 per contract

Fri, 12/31/2010 - 21:04 | Link to Comment StychoKiller
StychoKiller's picture

Erm, 2010 - 1989 = 21 years; 10,000  - 2,000 = 8,000.  Take it from there.

Fri, 12/31/2010 - 16:59 | Link to Comment LeBalance
LeBalance's picture

It might also be interesting to read Ted's most recent December 12, 2010 missive in which he deduces that the entire scarcity of silver issue is DUE to the manipulation and without the manipulation there would be no shortage.

Fri, 12/31/2010 - 17:16 | Link to Comment Stonecold
Stonecold's picture

I do not see where it says that without the manipulation there would be no shortage.

But Butler is wrong on it being dumb for China to be short.  They are keeping the price down while the accumulate.  They can always cover with worthless dollars.

Fri, 12/31/2010 - 18:02 | Link to Comment snowball777
snowball777's picture

Curious how often this CFTC has managed to drop the ball in the listening to prophetic heads-up might think the fix is in.



etc ad nauseam

Fri, 12/31/2010 - 20:28 | Link to Comment Yits and the Yimrum
Yits and the Yimrum's picture

the CFTC's mission is to keep any non-members of their club from making any large spec gains

other than that, they function like Cops making a run to the Donut shop

Fri, 12/31/2010 - 18:45 | Link to Comment Hulk
Hulk's picture

Dear Ted, nice letter, but we regret to inform you that the word "bankruptcy" has been 1984'd. No such thing for the TBTF.

Fri, 12/31/2010 - 21:51 | Link to Comment gwar5
gwar5's picture

I belieeeve. Ted Butler lives and breathes silver. And if Ted Butler says JPM is offshoring and China is in on the shorts I have no reason to doubt until proven otherwise.

In 2008, Bank of China bought into Edmond de Rothschild's bank,  Le Compaigne Financiere Rothschild, which also goes by the initials LCFR (kid you not, can't make it up), in 2008 for $236 million ($340M USD) for "private banking and asset management services".

LCFR chairman Benjamin de Rothschild, quoted in the Bank of China statement, said: “This agreement opens up a new era of development for La Compagnie Financiere Edmond de Rothschild in the tradition of innovation and international expansion of our group.”  --  from Infowars Sept 23, 2008




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