A Constructive Suggestion


by Ted Butler, Silver Seek:

Shortly after I posted publicly last week’s article, “Is the COT Report Still Valid?,” commentary on my article was posted by Chris Powell, from GATA, suggesting that I consider the possibility that JPMorgan may be operating in the silver and gold markets as an agent under orders from the US Government and not as a principal for its own account (as I believe). I want to thank Chris for offering his input and I’m not kidding when I say it’s much better for an article to generate interest than to be ignored.

Since I know this is a widely-held opinion, namely, that the US Government is behind the silver and gold manipulation, ostensibly to defend the dollar, I have always considered this to be a possibility and believe I have written about it previously. Since there is no question that the regulators have continuously evaded allegations of wrongdoing by JPMorgan in the silver and gold markets, that’s reason enough to admit to the possibility of US Government involvement.

Throw in the fact that the US Government arranged the pivotal takeover of Bear Stearns by JPMorgan, thrusting JPM into the role of the biggest COMEX gold and silver short in early 2008. It’s easy to suspect some level of governmental involvement. On the other hand, I’m more persuaded that JPMorgan is acting on its own behalf in its silver and gold activities. No doubt that JPMorgan extracted some type of “free get out of jail card” on its takeover of Bear Stearns and that has accounted for the CFTC turning a blind eye towards JPM’s corrupt behavior in silver and gold. However, that’s very different from the US government orchestrating things. What things?

Well, for starters, how about JPMorgan never taking a loss, only profits in all its COMEX silver and gold dealings over the past decade. And for the bank amassing 750 million ounces of physical silver and 20 million ounces of gold over the past 7.5 years at artificially-depressed prices.  Since when did the US Government become a profit-motivated precious metals trader and hoarder? It’s not what they do

Specific public allegations of criminal activity directed at public companies, particularly financial institutions, like banks, are quite rare. Retaliation is swift and harsh. How many thousands of lawyers does JPM have at its command to attack any claims of wrongdoing? I have frequently called JPMorgan a stone cold crook in its silver and gold dealings. And truth be told, I was quite frightened of the consequences of doing so when I first started to make such allegations ten years ago, and sending these complaints to them. That’s because it is unheard of a large public company of any type to ignore complaints alleging criminal activity.  After ten years, any fears I had have disappeared. The only reason JPM and the CME have not responded is because they are both guilty as charged.  Therefore, I’d like to suggest to GATA and others to press the issue.

To my knowledge, GATA has three board members, Chris Powell, Bill Murphy and Ed Steer. Ed has already become fully convinced that JPMorgan is the chief player in the silver (and gold) manipulation, as anyone who reads his daily newsletter will attest. Bill now talks more about silver and JPMorgan than he does about gold, a marked reversal from the past. In the most constructive sense possible, I’d like to suggest that GATA go all the way and focus on JPMorgan’s activities as its main thrust. After all, that seems to be the direction it is headed anyway. In practical terms, it will be much easier to crack JPMorgan, than the US Government.

One final thought that occurred to me after I published these comments to subscribers. I have traced the COMEX silver manipulation from the mid-1980’s. Ronald Reagan was president when this scam started and we’ve had five different presidents from either political party since then. If the silver manipulation was a coordinated US Government run operation, it would involve a remarkable string of inside operatives over the past three decades. When I look at daily developments from Washington DC, I am struck by the extraordinary amount of leaking on all issues from both sides of the aisle.

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