Though some readers will be disappointed at this news, no one who has followed the sad existence of this pretend-regulator should be surprised that (once again) it simply refused to do its duty.
Based in a nation where the Rule of Law is dead-and-buried, whenever the CFTC doesn’t like “the law” it simply ignores it. The most obvious example is some of the “Dodd-Frank” rules on position limits in commodity markets. The CFTC was mandated to implement position limits by January 1, 2011. As of today, there are no position limits in these markets, and no sign that they will ever be imposed as was required by law more than 18 months ago.
This is why we hold physical bullion rather than holding “gold” or “silver” in some sort of fund or account. We live in an era of criminal governments, zero regulation, and where confessed criminals in the financial sector are allowed to rob people at will. And on the rare occasions where bankers are caught red-handed committing a crime, this is “American Justice”:
1) If they represent one of the Wall Street fraud-factories they will never be charged with a crime, no matter how flagrant the offense.
2) Their “fine” will never be more than 10% of the profits of the crime, and usually less than 1% of profits. The intent is not to “deter” crime but to encourage it.
3) For over 30 years, no Wall Street fraud-factory has not even been required to admit its wrong-doing – even when caught committing the most blatant/severe infractions.
The only people ever punished by the CFTC are the “small fish”, further proof that the CFTC and the Wall Street crime syndicate function exactly like the Mafia. Just like the Mafia, Wall Street and the CFTC eliminate the smaller “competition” so that Wall Street can capture 100% market share with its own crimes.
Understand that the silver manipulation conducted by the London/New York crime syndicate is the most blatant example of commodities manipulation in the history of markets, and yet we’re being told by one of the media apologists that (supposedly) this investigation is being dropped due to “lack of evidence”. Thus this is a good time to remind readers of some of the evidence which (apparently) was “invisible” to the CFTC
a) Silver short positions are the largest in the history of any commodity market. The JP Morgan short position (by itself) is much larger than the single short position of the Hunt Brothers when they were convicted of manipulating the market on the long side. Collectively, a handful of criminal bullion-banks hold a short position more than four times as large as that of the Hunt Brothers.
b) Based on nearly 5,000 years of market history, silver is priced at an absurd discount in relation to every other hard asset on the planet. In real dollars it’s still not far above the 600-year low in price created by this bankster manipulation, and it has been held at this discounted level for decades. There can be no possible legitimate explanation for a multi-decade, extreme, price-depression of this nature.
c) As a matter of basic arithmetic/economics; excessive shorting will always destroy inventories. With the complete destruction of silver inventories being a totally unprecedented event in the history of our markets, this is further evidence of illegal conduct.
d) A bona fide whistleblower. As many/most silver investors know; the CFTC has simply refused to hear the evidence of veteran metals trader, Andrew Maguire, to whom traders for these bullion banks not only personally confessed their crimes, but explained how they did it. Thus Maguire was able to provide the CFTC with two detailed examples of silver manipulation – a past (extreme) example, and a current blow-by-blow account of a silver-manipulation in progress.
In short, it’s impossible to imagine the CFTC having a more complete case, unless the bullion bankers themselves all simply wrote out spontaneous confessions of their crimes. If it was possible to prosecute the Hunt Brothers, then it must be possible to prosecute and convict JP Morgan.
Thus there are only two possilble scenarios here. Either the prosecution/conviction of the Hunt Brothers itself was a massive fraud, where they were found guilty despite insufficient evidence; or, the CFTC is simply refusing to fulfill its most basic function (crime prevention) – because the prime defendant is part of a protected oligopoly.