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How (& Why) JPMorgan & COMEXShould Be Sued For Precious Metals Manipulation

Tyler Durden's picture




 

Submitted by Ted Butler via Gold Silver Worlds blog,

I’ve had some recent conversations with attorneys who were considering class-action lawsuits regarding a gold price manipulation stemming from reports about the London Gold Fix. I told them that while there is no doubt that gold and, particularly, silver are manipulated in price, I didn’t see how the manipulation stemmed from the London Fix. I wished them well and hoped that they may prevail (the enemy of my enemy is my friend), because you never know – if the lawyers dig deep enough they might find the real source of the gold and silver manipulation, namely, the COMEX (owned by the CME Group) and JPMorgan.

So I thought it might be constructive to lay out what I thought a successful lawsuit might look like, although I’m speaking as a precious metals analyst and not as a lawyer. I’ll try to put the whole thing into proper perspective, including the premise and scope of the manipulation as well as the parties involved.

The first thing I should mention is how unprecedented it is that I’m writing this in the first place. Here I am, directly and consistently accusing two of the world’s most important financial institutions of market manipulation (making sure I send each all my accusations) and I have received no complaint from either. I don’t think that has ever occurred previously. Now I am taking it one step further; presenting a guide for how and why JPMorgan and the CME should be sued for their manipulation of gold and silver (and copper, too).

Let me explain why I am doing this. I am still certain that the coming physical silver shortage will end the price manipulation, but I see nothing wrong with trying to hasten that day. Over the past quarter century, I petitioned the regulators incessantly to end the manipulation, but the CFTC refused to do so. Far from regretting my past efforts, I feel it has greatly advanced and legitimized the allegations of manipulation. After 25 years, however, one must recognize that the horse being beaten is dead and that the CFTC will never act.

So, instead of simply waiting for the silver shortage to end the manipulation, I thought it advisable to try a new approach that was completely compatible with the real silver story to date. Since I (we) couldn’t get the CFTC to do its job and end the manipulation; why not try a different approach? The truth is that I have long believed that the right civil lawsuit stood a good chance at ending the manipulation before a silver shortage hit. I had high hopes initially that the class-action suit that was filed against JPMorgan for manipulating the price of silver a few years ago might succeed; but it seemed to drift off track and I wasn’t particularly surprised that it was ultimately dismissed. My intent should be clear – I want to see the next lawsuit succeed.

The stakes in a COMEX silver/gold/copper manipulation lawsuit are staggering. Not only is market manipulation the most serious market crime possible, the markets that have been manipulated and the number of those injured are enormous. I don’t think it’s an exaggeration to say that any finding that JPMorgan and the COMEX did manipulate prices as I contend could very well result in the highest damage awards in history. That’s no small thing considering the tens of billions of dollars that JPMorgan has coughed up recently for infractions in just about every line of their business.

My point is that no legal case could be potentially more lucrative or attention getting than this one. Certainly, this also includes the pitfall that JPMorgan and the CME are legal powerhouses who are not likely to roll over easily. Because the silver manipulation has lasted so long and damaged so many, the stakes away from any monetary finding are staggering. It is no real stretch to suggest, with or without eventual criminal findings, the reputational and regulatory repercussions (from other countries) could threaten the existence of each institution in current form (or at least management).

What is the theory or premise of the legal case for market manipulation against JPMorgan and the CME? The COMEX has evolved into a trading structure that has allowed speculators to control and dictate the price of world commodities, like gold, silver and copper, with no input from the world’s real producers, consumers and investors in these metals. The CME has allowed and encouraged this development for the sole purpose of increasing trading fee income. Not only do the world’s real metal producers, consumers and investors have no effective input into the price discovery process on the COMEX; because the COMEX is the leading metals price setter in the world, real producers, consumers and investors are forced to accept prices that are dictated to them by speculators on the exchange.

Because so few of the world’s real producers, consumers and investors deal on the COMEX, the exchange has developed into a “bucket shop” or a private betting parlor exclusively comprised of speculators. Again, this is an intentional development as much more trading volume is generated by speculative High Frequency Trading (HFT) than by legitimate hedgers (like miners) transferring risk to speculators. Legitimate hedgers don’t day trade. It is no exaggeration to say that the COMEX has been captured by speculators and abandoned by legitimate hedgers.

In turn, JPMorgan has developed into the “King Rat” in the speculative bucket shop by virtue of its consistent market corners in COMEX gold, silver and copper futures. The COMEX market structure was already rotten when JPMorgan blasted onto the scene in March 2008 when the bank acquired Bear Stearns’ short market corners in gold and silver. Incredibly, the regulators engineered the Bear Stearns rescue, granting to JPMorgan a listed market control in addition to the OTC market share control that JPM held for years. Talk about a powerful manipulative combo – JPMorgan and the COMEX.

Perhaps the most compelling aspect of my premise for a legal case against the CME and JPMorgan for market manipulation is that it is based exclusively on public data available from the CFTC in the form of the agency’s weekly Commitments of Traders (COT) and monthly Bank Participation Reports. There is additional proof of JPM’s controlling market share in the Treasury Department’s OCC OTC Derivatives Report (please see my public comment to the Federal Reserve at the end of this piece). The CFTC data may seem somewhat complex at first, but there can be little question as to its general accuracy and government pedigree. In fact, the data is compiled from exchange information transmitted to the CFTC, so the CME can’t deny its accuracy. There’s no he said/she said or ambiguity in these data series. In short, it is type of data that will hold up in a court of law.

According to the CFTC’s data, there are two primary groups of speculators setting prices on the COMEX. One group are the technical funds, traders that buy and sell strictly on price movement. Also referred to as trend followers and momentum traders, the technical funds buy and continue to buy futures contracts as prices climb; and sell and continue to sell, including short sales, as prices fall until prices subsequently reverse. These traders are included in the Managed Money category of the disaggregated version of the COT report, primarily because they are investment funds trading on behalf of outside investors, also known as registered Commodity Trading Advisors (CTA’s).

One thing that can be said for certain about these technical funds is that they are pure speculators, as there is no mining company or user of metal in this category by CFTC and CME definition. By itself, there is nothing wrong with that as regulated futures exchanges need speculators to take the other side of the transaction when legitimate hedgers wish to lay off price risk in the normal course of their underlying business. This is the economic justification for why congress had authorized futures trading originally. The problem is that there are few, if any, legitimate hedgers involved on the COMEX nowadays; only other speculators that are falsely categorized as legitimate producers and consumers.

The second group of speculators are primarily categorized as commercials, mostly in the Producer/Merchant/Processor/User category, but also in the Swap Dealers category. Since these terms are quite specific and strongly suggest that only legitimate hedgers are included, most people automatically assume the traders in these commercial categories are just that – hedgers. But that is not the case, as most of the traders in these two categories are banks, led by JPMorgan, pretending to be hedging, but which are, in reality, trading on a proprietary basis strictly for profit. Simply put, JPMorgan and other collusive COMEX traders are just pretending to be commercially engaged in COMEX trading in gold, silver and copper when, in reality, they are nothing more than hedge funds in drag.

http://www.cftc.gov/MarketReports/CommitmentsofTraders/DisaggregatedExplanatoryNotes/index.htm

The lynchpin of any legal case against JPMorgan and the CME revolves around whether the traders in the commercial categories of the COT report are, in fact, hedging or simply speculating, as are the technical funds. The CME and JPMorgan will go to the ends of the earth to show that the commercials are hedging, not speculating and will hide behind the twin concepts that the commercials are either trading on behalf of clients or are actively involved in market making and are thereby providing much needed liquidity. It will sound legitimate if you believe in make believe stories instead of facts.

JPMorgan has a history of proclaiming it is hedging when confronted with an unnecessarily large speculative position. The first thing the bank declared when the London Whale debacle surfaced was that it was part of a hedge against the bank’s portfolio. But that was openly scoffed at and quickly discarded as an excuse. JPM is likely to trot out the hedging or market making justification, but any competent attorney will blow that away. No one (openly or legitimately) granted JPMorgan the right to maintain market corners in COMEX gold and silver.

In December 2012, JPMorgan held market shares on the short side of COMEX gold and silver that amounted to 20% and 35% of the net open interest in each market respectively. It is not possible that a reasonable person would not consider those market shares in an active regulated futures market to constitute market corners. After rigging prices lower by historical amounts in 2013, JPMorgan flipped its short market corner in COMEX gold to a long market corner of as much as 25% and reduced its short market corner in COMEX silver to under 15% from 35%, pocketing more than $3 billion in illicit profits. I’d like to see JPMorgan explain some connection to hedging with regards to its position change.

Undoubtedly, JPMorgan will claim it was “making markets” to explain away its huge position shifts in COMEX gold and silver (and copper), proclaiming it was always a buyer on the downside and a seller on the upside of prices. True enough, but far from being the market hero it will pretend to be, a closer examination will reveal something else entirely. The purpose of market making is to provide market liquidity and price stability. Legitimate traders are given some leeway from regulations limiting speculative positions and market shares from growing too large in order to enhance liquidity and price stability which benefits everyone.

But the record clearly indicates that JPMorgan, in cahoots with the CME, has used its dominant market shares in COMEX gold, silver and copper to instead engage in an evil form of market making whose intent is to constrict liquidity and create disorderly pricing. What record indicates that? The price record. Twice in 2011, the price of silver fell more than 30% ($15) in a matter of days and last year gold fell $200 and silver by $5 in two days. These price declines were unprecedented, had no legitimate supply/demand explanation and the regulators, including the CME did or said anything.

For sure, JPMorgan was a buyer on those deliberate price smashes and every other COMEX gold, silver and copper price smash for the past six years, but how does that make them a hero? This crooked bank and the CME and others arranged every COMEX price smash in order to create chaos, drain liquidity and disrupt pricing; the exact opposite of what legitimate market making is supposed to be. JPMorgan and the CME violated public trust in our markets as proven by the price record. For that, they should be made to pay dearly.

The key question is how did (and does) JPMorgan and the CME pull this off repeatedly? It all has to do with market mechanics, of which JPM and the CME are absolute masters. Since there are, essentially, two separate and competing speculative groups setting prices on the COMEX, it comes down one group scamming the other. (I know this is old hat to subscribers, but please remember I’m writing this to convince the right attorney to take on these crooks). So how does JPM get positioned to profit from a price smash (or price rise) and then rig prices to go in their direction? Basically, by scamming the technical funds by getting those funds to do what is profitable for JPMorgan and other collusive commercial traders and including the CME in the form of extraordinarily large trading volume.

How the heck does JPMorgan and the CME pull that off? They can pull it off because they know how the technical funds operate and because JPM and the CME also know how to cause the funds to buy and sell when JPM wants them to buy and sell. Since the technical funds only buy as prices are rising and only sell as prices are falling, particularly when prices penetrate key moving averages, all JPMorgan and the other collusive commercials have to do is occasionally set prices above and below those key moving averages. And thanks to an array of dirty trading tricks developed over the past 30 years, the most recent being HFT, JPMorgan can set short term prices wherever it chooses, whenever it desires.

In a very real sense, JPMorgan and other collusive COMEX commercials have become the puppet masters controlling the technical funds’ movements. It is an exquisite racket – JPMorgan gets the technical funds to buy or sell in order to take the other side of the transaction as counterparties. This can be seen in almost every price move in COMEX gold, silver and copper over the years. Let me try to present the data in graphic form, courtesy of some charts by my Aussie friend, Nick Laird of sharelynx.com.

Depicted below are the three main metals of the COMEX, gold, silver and copper and the net positions of the traders in the managed money category – the technical funds over the past couple of years. If you plot when the technical funds buy or sell, there is almost a 100% correlation to price. In other words, when the technical funds buy, prices for gold, silver and copper rise and when the technical funds sell, prices fall. The correlation is almost uncanny, to the point where some pundits have recently claimed that it is the technical funds, not the commercials, which are manipulating prices. But those claims melt away once one considers the nature of this bucket shop fraud.

GOLD COT March2014 physical market

Silver COT March2014 physical market

Copper COT March2014 physical market

Sure, the technical funds move prices when they buy and sell, but that’s just what JPMorgan and the CME count on. If the technical funds weren’t mechanical and predictable there would be no scam possible. It is only because the technical funds can be counted on to do the same thing repetitively that allows JPMorgan and other collusive commercials to take counterparty positions. If the technical funds weren’t predictable, JPMorgan would never have made $3 billion+ last year in COMEX gold and silver and been able to flip a short market corner in COMEX gold to a long market corner. Or just ask yourself – why would the technical funds collude to harm themselves?

I also feel it is significant that I can now include copper in the JPMorgan/CME illicit scheme to manipulate. This broadens the manipulation in a systemically important way. If ever there was a case for the Racketeer Influenced and Corrupt Organizations Act (RICO), this must be it.

In one recent attorney conversation, I was asked to provide the name of a technical fund that was duped as I described and would like to seek legal redress. If I could have, I would have, but I don’t think that’s possible. It’s another reason I refer to this COMEX manipulation as almost the perfect crime. In this case, any technical fund would not likely seek redress as a victim (certainly not as the initiator of legal action) because to do so would involve having to admit being the mark at a crooked poker game, something not conducive to attracting additional investor funds. In fact, it would invalidate a technical fund’s core business and be tantamount to simply quitting a business that may have been in existence for decades. It just isn’t going to happen.

But that hardly matters because the nature of market manipulation means there are untold numbers of other victims, particularly considering the scope of the gold, silver and copper markets. Whereas the technical funds were both the enablers and sometimes victims of the scam I described above, there are many thousands of legitimate victims (including me and many of you) who did nothing to enable the scam.

I dare say that there are more potential victims of the JPMorgan/COMEX gold, silver and copper manipulations than in just about any previous financial fraud. Let’s face it, there is hardly a mining company or investor in gold and silver or mining company shares that hasn’t been damaged over the past six years to some extent. That’s when JPMorgan came to dominate COMEX trading. If a legitimate class-action lawsuit was initiated, I believe potential litigants would emerge in massive numbers. Then again, there’s only one way to find out for sure and that’s to have such a case filed.

On a number of occasions in the past, when there was still some slim hope that the CFTC might address the ongoing silver manipulation, I publicly requested that you should submit public comments on issues related to position limits. By my count, upwards of 10,000 comments were submitted collectively, for which I offered my profuse thanks. Unfortunately, because the agency appeared to be compromised on the issue, no real good came from it through no fault of our own. Therefore, I would hardly ask anyone to do that again.

But I was reminded by a subscriber that I should submit a comment in regard to the Federal Reserve’s open public comment period seeking input on whether banks should be allowed to deal in physical commodities and derivatives on such commodities. I had mentioned in a previous article that I was undecided whether to do so or not. The subscriber convinced me that it was the right thing to do in order to go on the record, to which I had to agree. I understand the comment period has been extended to April 14, for anyone wishing to submit comments for the record. There have been less than 80 comments posted thru today and mine are near the bottom

http://www.federalreserve.gov/apps/foia/ViewAllComments.aspx?doc_id=R-1479&doc_ver=1

 

Gold & Silver Market Manipulation: Fed Open Comment March 2014

 

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Sat, 03/22/2014 - 19:51 | 4581146 DaddyO
DaddyO's picture

And suing would produce what outcome?

DaddyO

Sat, 03/22/2014 - 19:56 | 4581158 knukles
knukles's picture

Make a lotta money for the lawyers, silly!
Plus, Bloomberg had an article the other week that said that every other asset under the sun was manipulated except for gold.  And they know.  They'd not lie.  I saw it on the news so it must be true.

Sat, 03/22/2014 - 19:59 | 4581168 kliguy38
kliguy38's picture

besides everyone knows its a barbarous relic and you can't eat it like you can fiat.....

Sat, 03/22/2014 - 20:07 | 4581186 knukles
knukles's picture

Besides, hasn't GATA or somebody else already tried this?  I mean the lawsuit, not eating the fiat.  Somebody already tried to sue everybody else and got told to piss off, I think.  Plus, if my memory serves me well, under a host of legislation ranging form financial modernization thru Patriot Act, NDAA, DoddFrank (whatever) the banks are not required to reveal that which is related to gold and silver markets on national security grounds.
Neither is the Fed.

Lotsa luck...

I mean, Germany can't even get let into the FRBNYC's gold vault to see if there's anything there.  Same with the BoE.  But the Queen gets to go in and ohh and ahh...

Sat, 03/22/2014 - 20:11 | 4581196 Bay of Pigs
Bay of Pigs's picture

Blanchard sued Barrick and JPM if I remember correctly. Some corrupt judge through it out on a technicality without excusing the criminal actions.

Lets face it, these fuckers are untouchable.

Sat, 03/22/2014 - 20:27 | 4581225 Squid-puppets a...
Squid-puppets a-go-go's picture

all it takes is one monolithic oligarchic entity to turn.

Imagine goldman sachs taking up the lawsuit against JPM. It never happens - except at times of stress like 2008. Remember that?

there can be only one, highlander

Sat, 03/22/2014 - 20:52 | 4581285 Soul Glow
Soul Glow's picture

Fuck you Jamie Dimon!

Sat, 03/22/2014 - 20:55 | 4581292 Apeman
Apeman's picture

Jamie Dimon the tapeworm.

Sat, 03/22/2014 - 23:34 | 4581627 strannick
strannick's picture

Just read ''Den of Thieves'', how the DOJ and SEC took down Milken. Those were men. Dogged men, of the Chris Powell, Ted Butler variety. Shitheads like Jeff Christian and Jimmy Dimon perpetuate their crimes becuase of indifference, and because of meely mouthed corrupted CFTC worms like Chilton and especially Jill Sommers.

Sun, 03/23/2014 - 08:17 | 4582026 GetZeeGold
GetZeeGold's picture

 

 

Send the CFTC a nail gun kit.....remove the instructions first.

Sun, 03/23/2014 - 10:38 | 4582156 BaBaBouy
BaBaBouy's picture

Check Out Latest Attack On POG...

http://www.cftc.gov/dea/futures/deacmxsf.htm

The Commis Went Net Shorter Of Over 20,000 Contracts Of GOLD During The Week Period Of

Mar/11 To Mar/18.

AND, With GOLD Looking To Break Out Much Higher, Here We Are Again

With Them Selling And Selling... WHY ???

 

 

Sun, 03/23/2014 - 12:32 | 4582464 MontgomeryScott
MontgomeryScott's picture

Hey, Yellen, take a memo:

The Board of the Federal Reserve should take immediate steps to disallow US banks and bank holdingcompanies from both physical and derivative commodities trading for a reason not mentioned to date,namely, to  eliminate  market    manipulation. This is the most  serious   market  crime of all.

You know, they now   have their own private Police Force. Equipped with Senco Nail Guns.


Mon, 03/24/2014 - 14:43 | 4586518 MeelionDollerBogus
MeelionDollerBogus's picture

That mullet has Satoshi-power.

Sun, 03/23/2014 - 10:18 | 4582136 DeadFred
DeadFred's picture

All the judges and monolithic oligarchic entities who could take this to a just outcome use cell phones and email. The NSA doesn't really care what I say or write but every word and action of those judges and oligarches will be reviewed and then they will be shown why a "No manipulation" outcome is in their best interest. People usually follow the path of their best interests. Good luck with your lawsuit but I'm not holding my breath.

Mon, 03/24/2014 - 14:43 | 4586510 MeelionDollerBogus
MeelionDollerBogus's picture

As soon as anyone on the 'list' starts mentioning 'manipulation' in any way other than dismissal/denial they start getting junk email to sell them nail guns at bulk discount prices.
If that message isn't understood the next one will be much clearer.

Sat, 03/22/2014 - 20:46 | 4581272 philipat
philipat's picture

Where are the two JPM whistle blowers who gave testimony to CFTC? Were they amongst the "suicides"??

Sat, 03/22/2014 - 21:13 | 4581335 john39
john39's picture

these kinds of lawsuits take years to litigate, and millions of dollars to pay for.  when the system is obviously rigged, a lawyer would be insane to take the case on a contingency...  and without a contingency suit, who could afford to pay for it... knowing that the outcome would likely be rigged?

look at the obamacare lawsuits.  at the end of the day, John Roberts rolled over for TPTB.  when it really matters, that will always be the outcome in thes rigged courts.  like american democrazy, its all for show.  and the show is wearing pretty thin.

Sat, 03/22/2014 - 21:51 | 4581438 HoofHearted
HoofHearted's picture

Viva la Revoluccion.

If we keep sitting by and letting ourselves get fucked, then we probably deserve what we're getting. I'm not a big fan of violence usually, but...it is one way to get somene's attention. I'd rather have the cajones of Putin and win the battle without even having to break into a sweat...but how do we pull that off?

Sun, 03/23/2014 - 01:31 | 4581788 RafterManFMJ
RafterManFMJ's picture

It's all for show? Very good. Now print this quote out and paste in on your refrigerator:

The illusion of freedom will continue as long as it's profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater. - Zappa

Sun, 03/23/2014 - 06:49 | 4581966 H. Perowne
H. Perowne's picture

And once the masks come off, the corollary:

 

"Every normal man must be tempted, at times, to spit on his hands, hoist the black flag, and begin slitting throats." - Mencken

Sat, 03/22/2014 - 22:52 | 4581556 Cacete de Ouro
Cacete de Ouro's picture

Reg Howe also sued a big cast of players including (I think) the Fed, BIS, representative bullion banks (JPM), Greenspan, McDonough, Treasury Secretary.

The judge ruled that Reg Howe didn't have 'standing' to sue these entities, and then the judge dismissed the case.

Basically 'standing' means:

"In law, standing or locus standi is the term for the ability of a party to demonstrate to the court sufficient connection to and harm from the law or action challenged to support that party's participation in the case."

http://en.m.wikipedia.org/wiki/Standing_(law)

Sat, 03/22/2014 - 19:55 | 4581159 Pladizow
Pladizow's picture

Wanna win? Better have the trial anywhere but NY.

The court system in ny is Wall streets whore!

Sat, 03/22/2014 - 20:00 | 4581174 knukles
knukles's picture

Beijing?
Moscow?
Dubuque?
Oakland?  Yeah, Oakland!  Be able to get an impartial jury.  If they can't even speak English.  Still got the gold initials inlaid on dere teef....  Dey knos...

Sat, 03/22/2014 - 21:48 | 4581428 Josh Randall
Josh Randall's picture

That's because it's New "York" as in the "York Rite"of Freemasonry - good luck winning anything without the blessing of the Lodge behind you

Sun, 03/23/2014 - 08:34 | 4582044 Winston Churchill
Winston Churchill's picture

Shit. you don't even need to go to NY.

The court in Vero Beach in Florida, is a Lodge unto itself.

Sat, 03/22/2014 - 19:57 | 4581162 Chief_Illiniwek
Chief_Illiniwek's picture

Why, much needed income for downtrodden law firms - of course...

Sat, 03/22/2014 - 20:02 | 4581178 DaddyO
DaddyO's picture

I had surmised that the law firms being handsomely rewarded was the best answer.

I was hoping though that some real answers would be forthcoming, silly me!

DaddyO

Sat, 03/22/2014 - 20:13 | 4581198 knukles
knukles's picture

I answered that first!
I wanna unicorn!
You promised me a unicorn.

Did you know if you butcher a unicorn the best parts are bacon, sprinkles, rainbows, skittles, magic tumors, happy penises and it releases singing tortured souls caught in the 7th circle of hell across the flaming river of blood from the paper island?
Great shit.
The sausage ain't bad, either.

Sat, 03/22/2014 - 20:21 | 4581209 DaddyO
DaddyO's picture

I know, at the time of my post, everyone was lined up and then the cascade hit.

Unicorn bacon, now that's got to be some tasty stuff...

Has anyone ever had Unicorn mountain oysters? just curious as to their flavor.

DaddyO

Sat, 03/22/2014 - 20:35 | 4581243 kaiserhoff
kaiserhoff's picture

I smell marketing opportunities,

  and a way to move a bit of horse meat and roo;)

We just can't have it taste like chicken.

Sat, 03/22/2014 - 21:33 | 4581394 zhandax
zhandax's picture

Smoked over wild cherry, of course

Mon, 03/24/2014 - 14:01 | 4586265 MeelionDollerBogus
MeelionDollerBogus's picture

Let's just say before you eat one you better be OHungry.

Sat, 03/22/2014 - 20:00 | 4581175 Mr Pink
Mr Pink's picture

Can I still sign up for the class action, even after my boating accident?

Sat, 03/22/2014 - 20:03 | 4581180 DaddyO
DaddyO's picture

You'd have about as much standing as everyone else, I suppose.

DaddyO

Sat, 03/22/2014 - 20:37 | 4581248 kaiserhoff
kaiserhoff's picture

Are you saying "snow ball in hell"?

tis bettah to have loved and lost...

Sun, 03/23/2014 - 09:34 | 4582089 MsCreant
MsCreant's picture

So all these accidents are folks standing in their boats?!? 

Sun, 03/23/2014 - 12:28 | 4582451 MontgomeryScott
MontgomeryScott's picture

Boating accident, fall from a balcony, mysterious airline disaster, polonium poisoning, Home Depot nail gun misfiring in your garage, suicide with three bullets in the back of the head,...

Sun, 03/23/2014 - 02:18 | 4581832 Schmuck Raker
Schmuck Raker's picture

Ideally, you will post fewer inanities.

BTW, that is my -1, suck it.

Sat, 03/22/2014 - 19:52 | 4581150 ParkAveFlasher
ParkAveFlasher's picture

Gold, bitchez!

Sat, 03/22/2014 - 19:58 | 4581164 ebworthen
ebworthen's picture

JP Morgan as "King Rat" is about right.

Those crooks need to be in orange jump suits busting rocks, not making payoffs.

Sat, 03/22/2014 - 19:59 | 4581166 El Hosel
El Hosel's picture

Wake me up when 1% of the 1% get charged with any of their financial crimes... You know, the crimes that occur every fucking day for years on end bilking billions from "the system" they put in place and "regulate".

Sat, 03/22/2014 - 21:57 | 4581454 HoofHearted
HoofHearted's picture

Free John Corzine!!!!

Sat, 03/22/2014 - 20:00 | 4581169 Who was that ma...
Who was that masked man's picture

You might just as well sue the United States Government AND The Federal Reserve.

 

Good luck with that.

Sat, 03/22/2014 - 20:00 | 4581172 honestann
honestann's picture

Sorry Ted, but the ENTIRE "legal system" is utterly owned and controlled by the very same predators-that-be who manipulate the markets.  You really have to be naive to imagine that a predator with ZERO honor, ethics, honesty or scruples will do anything but thwart any and every attempt made through so-called legal channels.

The ENTIRE legal system is nothing but a tool for the predators-that-be.  Period.  And that tool works precisely because even after endless egregious evidence that the "legal system" is nothing more than a tool for the predators-that-be... humans continue to pretend it has some legitimacy.

IT DOES NOT.

In fact, it never did, but long ago the predators made a better effort to pretend.

The only workable solution is for honest, ethical, productive, benevolent humans like you, me, and others to buy as much physical as we possibly can, and hide it away where the predators cannot find it.  And do not give it up, under any circumstances.  If you have to leave the country to prevent them taking it back... do so.  Or whatever else it takes.

Sat, 03/22/2014 - 20:39 | 4581257 Squid-puppets a...
Squid-puppets a-go-go's picture

yes, but - as i mentioned above - when one 'predator that be' attacks another 'predator that be' a judge has no option but to apply the basic principles of justice. 

Sun, 03/23/2014 - 22:46 | 4584179 honestann
honestann's picture

No, a judge can do whatever he wishes.  Usually that means favor whoever makes him a better offer [for immediate or future favors], or who can find more incriminating evidence to hold against him.  What a typical judge NEVER considers is... justice.

Sat, 03/22/2014 - 22:34 | 4581518 BigJim
BigJim's picture

Honestann - You're right, of course, but one of the best things any person can do is make more people aware of this fact.

So even though Ted Butler (probably) would agree with you that his legal actions are - in themselves - pointless, he probably believes that playing it 'straight' is more likely to inform the uninformed than just saying 'look what a bunch of corrupt monkeys they are'.

The only thing that will change all this is if enough people wake up to it. And the more people like Ted Butler shout and holler, the more people will do just that.

Sun, 03/23/2014 - 22:50 | 4584196 honestann
honestann's picture

He has done a great job of hollering, and good for him if he continues.  But the "payback" for playing legal games is vastly less than his prior actions.  Why waste his time, effort and huge quantities of funds... when that time, effort and money is more effective otherwise.

Remember, no judge will find for him, so the net result will be to convince MORE people that "there's no smoke or fire here" (because most people are still terminally naive). 

Mon, 03/24/2014 - 13:56 | 4586228 MeelionDollerBogus
MeelionDollerBogus's picture

No they're not. They don't hear it, don't care. Won't care until there's guillotines in public squares and then they'll accuse every gold holder of being an elite bankster even if you had only 1 coin inherited from grandma and they'll say anyone with beans and bullets is a terrorist and demand all of them to the guillotines or mass graves or burn their homes to the ground too.
What's coming is ugly.

Sat, 03/22/2014 - 20:03 | 4581179 Who was that ma...
Who was that masked man's picture

Actually, all markets are manipulated and always have been.  That's what a market is.  Everytime someone buys or sells, that transaction will change (manipulate) that market.

Sat, 03/22/2014 - 20:09 | 4581194 DaddyO
DaddyO's picture

Technically yes, each independent trader dealing with another at arms length.

However, the currents markets have thugs running around with chainsaws lopping off the arms of the traders.

DaddyO

Sat, 03/22/2014 - 20:17 | 4581203 knukles
knukles's picture

Sorta like if it was always Oct 31stHalloween and all the traders looked like Jamie Lee Curtis?
That'd be cool!

Sat, 03/22/2014 - 20:24 | 4581215 DaddyO
DaddyO's picture

and all the traders looked like Jamie Lee Curtis?

I'm afraid the only thing being traded would be unmentionable in polite circles...

DaddyO

Sat, 03/22/2014 - 20:38 | 4581254 kaiserhoff
kaiserhoff's picture

I'm confused.  How would that be different?

Sat, 03/22/2014 - 20:04 | 4581183 EmmittFitzhume
EmmittFitzhume's picture

Sued...LOL

Sat, 03/22/2014 - 20:18 | 4581205 MarcusAurelius
MarcusAurelius's picture

The financial system by iteself does nothing. It exists solely to serve its own best interest. We have become a society of gamblers and impulse buyers thanks in large part to the financial system, which was supposed to look after the interests of its customers failed them time and time again over the past thirty years. 

A law suit will do little against an entity that is above the law in most areas. Greshams Dynamic rules and this will not change until we value true production again. Industry that does something for us all instead of serving itself. 

Mon, 03/24/2014 - 13:52 | 4586196 MeelionDollerBogus
MeelionDollerBogus's picture

I'll buy that for a dollar!
And then put it all on red for good measure.

Sat, 03/22/2014 - 20:29 | 4581231 tbd108
tbd108's picture

I am a big fan of Ted Butler. He is the leading expert in the world on the silver market. However he doesn't seem to be aware that all judges in the state of New York are owned by the mob. Good luck in court.

Sat, 03/22/2014 - 20:31 | 4581237 q99x2
q99x2's picture

Don't fight the FED until the military is on your side.

Mon, 03/24/2014 - 13:46 | 4586186 MeelionDollerBogus
MeelionDollerBogus's picture

Military is paid in Fed dollars so, never.

Sat, 03/22/2014 - 20:39 | 4581246 DavidPierre
DavidPierre's picture

Yeah...Sue 'em ...

Bill Murphy and Ted Butler should hire Bart Chilton as their lead attorney.

Maybe Bill can waste another $264,400 of GATA money and take out another ad in the fucking WSJ.

LOL!

Sat, 03/22/2014 - 20:36 | 4581247 MFLTucson
MFLTucson's picture

Whay not prosecute Dimon for Fraud?

Sun, 03/23/2014 - 10:48 | 4582186 logicalman
logicalman's picture

You'd need to hide the cufflinks first!

Sat, 03/22/2014 - 20:37 | 4581249 fonzannoon
fonzannoon's picture

If they are able to get themselves a team of no nonsense attorneys who understand the precious metals markets and how this is all tied together and are fortunate enough to get just the right open minded judge who will let them get all the facts out in the open.....it will still go nowhere and will be soon forgotten.

Sat, 03/22/2014 - 20:40 | 4581258 kaiserhoff
kaiserhoff's picture

Might as well look for humble lawyers.

Sun, 03/23/2014 - 01:40 | 4581798 RafterManFMJ
RafterManFMJ's picture

Yup

"open minded judge"

yup, and soon his mind would be opened to the atmosphere by some mysterious, well placed 308 round...

Sat, 03/22/2014 - 20:43 | 4581265 Reaper
Reaper's picture

It doesn't matter,if the lawyers get rich. They'll be discovery and that'll provide info for lawsuits in other jurisdictions/countries. The Second Circuit Appeals and the district court in the Southern District of NY (Manhattan and Westchester County)are totally corrupt, but this would be a great enrichment device for connected lawyers on both sides. Even with JPM and Comex, the outside lawyers represent the lawyers' interests first. Such a lawsuit is a pox on their houses.

Sat, 03/22/2014 - 21:09 | 4581329 Iam_Silverman
Iam_Silverman's picture

Why complain when they make it cheaper for you now?  Once they lose control of the paper market, you will (or should) have accumulated enough to tide you through the coming "rough times ahead".

Sat, 03/22/2014 - 21:16 | 4581347 moneybots
moneybots's picture
"How (& Why) JPMorgan & COMEXShould Be Sued For Precious Metals Manipulation"

 

How about the FED, for interest rate manipulation

Sat, 03/22/2014 - 21:19 | 4581358 moneybots
moneybots's picture
"How (& Why) JPMorgan & COMEXShould Be Sued For Precious Metals Manipulation"

 

Where is the criminal prosecution?

Sat, 03/22/2014 - 21:32 | 4581389 hotrod
hotrod's picture

Ted,   So many were killed in 2013.  The April -June PM miner stock drop was surreal.  My losses in the millions and literally changed my life.  Sold my home/car to raise cash.  I still dont understand the gold/xau ratio being so under valued.  Very little has changed economically and the Fed still monetizes today and the debt will surpass 18 trillion soon.  I am starting to wonder if China was also involved even though Obama called his banker meeting two weeks prior to the TAX Day gold massacre after a 2 year bull market consolidation phase.  Even that timing is suspect.  Jim Sinclair sent me an Email a couple of days ago and he said he felt "We all would have some recourse". It is one thing to get some money outta BOA, JPM etc. for mortgage fraud to appease the poor poor home owners but not sure the govt give a rats ass about PM investors.  Maybe Sprott would offer Bart Chilton 10 million to come clean.  Offer a HUGE RANSOM for information leading to prosecution.  The govt. just paid some whistle blower 64 million against JPM for home insurance fraud.  Gotta be someone out there that wil talk for the MONEY..

Sat, 03/22/2014 - 22:17 | 4581489 pocomotion
pocomotion's picture

Hotrod, 

You and I have equal losses in percentage speak.  Say, 64% total worth?  BIG steal none the less. 

This run in PMs is not over...  If you and I go to ZERO just know that 99% will be there with us.  Thinking the way we do will get us in their 1% in a heartbeat and we will be back at the big table in a flash...

Quality cannot be kept down, my friend, quality cannot be kept down...

Sun, 03/23/2014 - 01:45 | 4581807 RafterManFMJ
RafterManFMJ's picture

HotRod I feel for you but why would you go against people that murder entire nations to maintain their inbred privilege?

You think markets are real?

You think work, intelligence, and insight are rewarded in the USSA?

This is a titanic struggle of leviathans and to think you'll short this or make a rational play is folly.

Mon, 03/24/2014 - 13:14 | 4586082 MeelionDollerBogus
MeelionDollerBogus's picture

What on Earth is wrong with you? How could anyone put so much money into so obviously foolish a venture?
You stack gold, you stack silver, you stack beans & bullets and you get a few leveraged ETF's and you sit.
You don't put millions into anything but cash, PHYSICAL and transportation / fortress depending where you live.
You know what they say about a fool and their money....
Miners stocks are one of the least reliable things to put money into.

Gold / XAU ratio?

For real? You may as well be watching the equally useless DXY.

If you trade on either your funds go to zero. That's how it is.

 

Sat, 03/22/2014 - 21:32 | 4581392 Lord Koos
Lord Koos's picture

Talk is cheap -- why don't you and your sponsor Eric Sprott start a case?

Sat, 03/22/2014 - 23:09 | 4581585 Duc888
Duc888's picture

 

 

hey....ummmm, you guys should call Eric Holder.

 

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAHAHAHAHAHAHAHAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA!

Sat, 03/22/2014 - 23:14 | 4581594 mccvilb
mccvilb's picture

I must be missing the forest for the trees. It seems obvious that whoever is sued or charged (civil/criminal) will elect for a jury trial. Show me twelve people who (think they) understand the stock market. Now show me twelve who claim to understand the commodities market.

Sun, 03/23/2014 - 19:48 | 4583690 bardot63
bardot63's picture

Why would JPM want a jury trial?  What would they gain from 12 angry pissed off,  angry. over-regulated citizens judging the case?  Wait -- that would work for them if the trial were held in NY, because NYer's think that's normal.

Sat, 03/22/2014 - 23:42 | 4581646 Robot Traders Mom
Robot Traders Mom's picture

"I am still certain that the coming physical silver shortage will end the price manipulation, but I see nothing wrong with trying to hasten that day"

 

This statement is the entire problem with the mentality of the metals markets, right now. The movement has been infiltrated by charlatans buying it to get 'paper wealthy' off the price movement of metals, rather than those of us that are happy when the price falls so we can buy more physical, knowing it is a store of value, long-term. One day, we'll all be happy it was manipulated by a bunch of shitheads because it allowed us to become truly wealthy. I know a collapse is inevitable and the true price discovery in metals will happen. That doesn't mean I want it to happen right now.

 

www.TopTheNews.com 

Sun, 03/23/2014 - 00:56 | 4581759 bardot63
bardot63's picture

Your belief that illegal manipulation is good because it enables you to buy silver or gold cheaply might need a rethink.  It shows you are happy with the illegal behavior, and not upset, as you should be, that the market is fraudulent.  What about those who had the foresight to see what was coming 10-12 years ago, or even just 5-6 years ago, and who may now be at the stage of life when they should reap their rewards?  Is it OK they are being cheated, so that you can enjoy the fruits of a market run by the mafia?   You say "one day we'll all be happy...."  Perhaps in your case it won't be for another 50 years.  How will you feel when some brain dead lugnut says the same thing then that you say now?

Mon, 03/24/2014 - 13:01 | 4586031 MeelionDollerBogus
MeelionDollerBogus's picture

Such is the way of markets since they ever existed, to the beginning of human history.

Disliking reality doesn't change it. Crushing empires into dust by force or by time doesn't change it. I see no plans from your end.

Sun, 03/23/2014 - 01:00 | 4581764 holdbuysell
holdbuysell's picture

Speaking of nickels:

60 nickels will buy a loaf of bread in 20 years.

But three usd won't come close.

#timestamp

Sun, 03/23/2014 - 01:47 | 4581809 RafterManFMJ
RafterManFMJ's picture

Way way ahead of you. I use 20K in Nickels to ballast my sailboat ... wait something about that seems dangerous...

Sun, 03/23/2014 - 01:17 | 4581776 bilbert
bilbert's picture

I think the problem lies with the STRUCTURE of COMEX Futures trading rules.

Can ANYONE here tell me:

1.  How the futures markets could be manipulated, and

2.  How any LEGITIMATE users of PM's could be harmed if:

A.  COMEX rules REQUIRED delivery of metals Future Contracts, with a 5% penalty for non-delivery 

B.  Margin was eliminated altogether.

From my lowly view, the entire purpose of the COMEX (and PLEASE don't get me started on the "Options Market")  seems to be bringing "Fractional Reserve Banking" benefits to folks who are NOT even producers OR consumers of said commodities?

Thanks!

PS - I know I should proly direct these questions to the CFTC, but I hear they are mighty busy...., doing something.

 

 

 

 

 

Sun, 03/23/2014 - 01:32 | 4581789 ItsDanger
ItsDanger's picture

LIBOR manipulation alone should have been an easy basis for bankruptcy for the companies involved.  Yet it didnt happen, just some routine 'fines'.  I expect nothing less here.

Sun, 03/23/2014 - 17:00 | 4583176 The Abstraction...
The Abstraction of Justice's picture

LIBOR rates represent the solvency of companies, so the fraud was about hiding the insolvency of the banking system. That insiders were able to capitalize on the difference between the real and fake public rates is actually the much smaller crime. QE was the system of funding the insolveny banks, and any fines are simply added to the QE bill.

Sun, 03/23/2014 - 01:45 | 4581799 Catullus
Catullus's picture

This is the worst argument for "manipulation". It's the evil speculators arguement from 80 years ago.

Look, gold and silver don't pay interest. No commodity does. If you're buying it and don't intend to consume it, you're speculating that the price you're buying it for will rise when you're ready to sell it. Everyone who is not using gold and silver in some sort of industrial application is a speculator.

That JPM is gaming technical funds because they program buy, good for them. Someone is losing their shirt for trading in such a way.

The question, as always, is why does a paper futures market for gold and silver even exist? What's clearly going on is that there's a short position that's larger than the available supply of either commodity. If not rolled, there is no way for those who have sold gold and silver forward to fulfill their contractual obligations to deliver. This is causing the price to be manipulated, but the real foul here is that they are making commitments they can't deliver on. And that they know they can't deliver on. And that everyone can clearly see they can't. This is just called fraud. You're entering into a contract that you have no intention of making good on going into it.

Sun, 03/23/2014 - 02:13 | 4581829 Schmuck Raker
Schmuck Raker's picture

How many dead bankers does that make? [If you said "not enough", then I can't disagree, but I am trying to keep score]

Sun, 03/23/2014 - 03:44 | 4581888 Notsobadwlad
Notsobadwlad's picture

I find it ironic that one would consider suing the manipulators of gold relative to dollars and NOT sue the manipulators of dollars relative to gold.

In other words, the Fed is just as guilty of manipulation as JP Morgan et al. Oddly enough they are related parties.

For gold to have reached the height is has reached "at all", the dollar must have been severely weakened by the actions of the Fed... and now the "geniuses" are claiming that the value of the dollar has not been weakened enough?

They cannot be claiming that there is no free market in gold?!?. There has NEVER been a free market for gold, relative to fiat. GET OVER IT. The people who control the price of gold relative to fiat are those who, coincidently BOTH hold gold in their vaults and create fiat out of thin air.

Sun, 03/23/2014 - 04:15 | 4581900 The Abstraction...
The Abstraction of Justice's picture

www.kingoftherepublic.com

 

My litigation is under way, albeit agaisnt Deutsche Bank alone. So far received zero donations, so I am limited in what I can sue for.

Sun, 03/23/2014 - 05:53 | 4581938 falak pema
falak pema's picture

Oh the wealth of Oligarchy shitholia plays  now being swept out from under the carpet for the world to see.

Some notions of wealth have the stink of festering garbage dumps that we accumulate at our own risks : of disseminating the inevitable diseases germinating under the crust of sweet suburbia and pretty white fences, ready to be spread like spring pollen at the slighest gust of a summer breeze like the monetary plague.

Augean stables of Pax Americana's house of cards  made from shit fiat, erected into tall derivative stacked sky scrapers of twin tower fame.

Towering Infernos...? 

Not if you listen to the FED and Congress : we can keep going until hell freezes over, our Imperial Reserve the symbol of our universal empire on which the sun never sets! 

Sun, 03/23/2014 - 07:13 | 4581983 agstacks
agstacks's picture

LANNY BREUER: Well, I think I am pursuing justice. And I think the entire responsibility of the department is to pursue justice. But in any given case, I think I and prosecutors around the country, being responsible, should speak to regulators, should speak to experts, because if I bring a case against institution A, and as a result of bringing that case, there’s some huge economic effect — if it creates a ripple effect so that suddenly, counterparties and other financial institutions or other companies that had nothing to do with this are affected badly — it’s a factor we need to know and understand.

Sun, 03/23/2014 - 09:02 | 4582060 Bioscale
Bioscale's picture

In case you missed the latest interview of Daily Bell with Bill Murphy from GATA, it's a good reading:

http://dailybell.com/exclusive-interviews/35139/Anthony-Wile-Bill-Murphy...

Sun, 03/23/2014 - 10:12 | 4582126 Graph
Graph's picture

Funds for the fine were allredy allocated as cost of doing business. That's not a problem for JPM.

Sun, 03/23/2014 - 12:22 | 4582435 traderjj57
traderjj57's picture

As if this is something new, exchanges colluding to the benefit of its members, ask the hunt family from texas.

Sun, 03/23/2014 - 13:31 | 4582687 GTC
GTC's picture

The really irony here is that "hedgers" get lower margins. LOL  

Sun, 03/23/2014 - 14:51 | 4582885 Bow Tie
Bow Tie's picture

as long as any damages are payable in boolion.

Sun, 03/23/2014 - 15:16 | 4582959 zerohedgejjxxzz12
zerohedgejjxxzz12's picture

anyone remember the movie Star Chamber, enough said

Mon, 03/24/2014 - 02:49 | 4584611 MeelionDollerBogus
MeelionDollerBogus's picture

JP Morgan, Goldman Sachs & gang should clearly all be sued for dealer channel-stuffing of monkey-hammers. Decade over decade I believe we're seeing all-time highs for inventory.

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