Ted Butler goes "all in" on COMEX corruption
derryb
Posts: 36,824 ✭✭✭✭✭
Why The COMEX Is Corrupt
"First, let me be clear in what I am asserting – the Commodities Exchange Inc. (COMEX), owned and operated by the CME Group, has come to control and manipulate the price of gold and silver, as well as copper, for the sole benefit of certain exchange insiders, most prominently JPMorgan.
"Through corrupt trade practices, the COMEX has stolen and captured the pricing mechanism for gold, silver and copper away from the influence of actual supply and demand fundamentals. Replacing the law of supply and demand as the price determinant, the COMEX has substituted a private club run by a few large traders who, in turn, dictate prices to metal producers, consumers and investors. The federal commodities regulator, the CFTC, is complicit in the price capturing, but the prime culprit is the CME Group. Ironically, it is data from the CME and published by the CFTC that prove price manipulation on the COMEX.
"More than 95% of COMEX silver trading is purely speculative in nature, with much of it nothing more than day trading by HFT algorithms.
"This is the consequence of the CME seeking to pump up trading volume at all costs. By catering to speculative traders seeking rapid turnover over the needs of producers, consumers and investors seeking legitimate hedging opportunities, the COMEX has become little more than a private gambling parlor divorced from the price influence of actual silver supply and demand. It also explains how the price of silver can be so estranged from real world fundamentals – the COMEX speculators setting the price have no interest in actual supply and demand, just the next price tick. This can be seen in the COT data published weekly by the CFTC."
"First, let me be clear in what I am asserting – the Commodities Exchange Inc. (COMEX), owned and operated by the CME Group, has come to control and manipulate the price of gold and silver, as well as copper, for the sole benefit of certain exchange insiders, most prominently JPMorgan.
"Through corrupt trade practices, the COMEX has stolen and captured the pricing mechanism for gold, silver and copper away from the influence of actual supply and demand fundamentals. Replacing the law of supply and demand as the price determinant, the COMEX has substituted a private club run by a few large traders who, in turn, dictate prices to metal producers, consumers and investors. The federal commodities regulator, the CFTC, is complicit in the price capturing, but the prime culprit is the CME Group. Ironically, it is data from the CME and published by the CFTC that prove price manipulation on the COMEX.
"More than 95% of COMEX silver trading is purely speculative in nature, with much of it nothing more than day trading by HFT algorithms.
"This is the consequence of the CME seeking to pump up trading volume at all costs. By catering to speculative traders seeking rapid turnover over the needs of producers, consumers and investors seeking legitimate hedging opportunities, the COMEX has become little more than a private gambling parlor divorced from the price influence of actual silver supply and demand. It also explains how the price of silver can be so estranged from real world fundamentals – the COMEX speculators setting the price have no interest in actual supply and demand, just the next price tick. This can be seen in the COT data published weekly by the CFTC."
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
0
Comments
But seriously, thanks for posting the article. Maybe if someone more prominent within this market would write/say this it would gain traction? Sadly, they're mostly all involved in the act.
<< <i>Ted Butler is a convicted felon. He was barred for life from trading due to his attempt at OJ manipulation. That is the reason he has a johnson for the COMEX. >>
Heck, I have a johnson for the COMEX and I've never been arrested. Ted Butler has 40 years under his belt as a metals analyist. Instead of trying to discredit him focus on providing a good argument against what he said.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Knowledge is the enemy of fear
<< <i>Argue against supposition? >>
counter-supposition.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>Ted Butler is a convicted felon. He was barred for life from trading due to his attempt at OJ manipulation. That is the reason he has a johnson for the COMEX. >>
Heck, I have a johnson for the COMEX and I've never been arrested. Ted Butler has 40 years under his belt as a metals analyist. Instead of trying to discredit him focus on providing a good argument against what he said. >>
so what u r saying is... 40 years of being wrong... makes one a expert???...
<< <i>
<< <i>
<< <i>Ted Butler is a convicted felon. He was barred for life from trading due to his attempt at OJ manipulation. That is the reason he has a johnson for the COMEX. >>
Heck, I have a johnson for the COMEX and I've never been arrested. Ted Butler has 40 years under his belt as a metals analyist. Instead of trying to discredit him focus on providing a good argument against what he said. >>
so what u r saying is... 40 years of being wrong... makes one a expert???... >>
Still waiting on your argument against what he said.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Ted Butler is a convicted felon. He was barred for life from trading due to his attempt at OJ manipulation. That is the reason he has a johnson for the COMEX. >>
I don't know the particulars on this. But like Martha Stewart he apparently got "caught" doing something the big boyz do day in and day out without a so much as a wink from the SEC or CFTC. Interesting that no banker or trader
has ever been convicted of wrong doing associated with the MBS, CDS, and derivative's crash of 2008. That only cost the US $10-$20 TRILLION. What did Ted Butler cost the OJ market? Nope, no felons there among any of the
TBTF banks. Keep looking elsewhere. We already know the silver market is corrupt. That was made clear in 2008 when JPM assumed the Bear Stearns silver short position legacy. By July 2008 JPM doubled that position to over
$200 BILL on otc silver derivatives (or the equivalent of 12-15 years of world silver production). Who in their right mind needs to hedge that many years of production? Of course, silver crashed in July 2008 and kept dropping all
the way into October.
Martin Armstrong is a felon as well per the US govt. Does that mean all of his analysis and theories are suspect? Can't question the govt right? I would think Armstrong is also banned from some markets for life when they
"pinned" the securities fraud name tag on him. I don't even think Bernie Madoff was barred for life from trading.
You cant make an argument against because very little of what is writes is fact. One cannot prove a negative. This is what is so great about conspiracy theory---to disprove it forces one to prove a negative. Since thats impossible, the conspiracy feeds upon itself. "You cant prove im wrong so therefore im right." (I might just make that my sigline
for the sole benefit of certain exchange insiders, most prominently JPMorgan----not a fact.
Through corrupt trade practices, the COMEX has stolen and captured the pricing mechanism for gold, silver and copper away from the influence of actual supply and demand fundamentals---not a fact.
COMEX has substituted a private club run by a few large traders who, in turn, dictate prices to metal producers, consumers and investors---not a fact.
Thats just in the first 2 paragraphs..
Knowledge is the enemy of fear
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Too big to jail
So many complain of market interference by the government. Is there such a thing as bad interference by corps with more money at play the the government?
Butler is just a one trick pony. Manipulation. Big deal. Every market is manipulated. We all know that now. How do I profit from that or gain an advantage?
<< <i>250 to 1 paper to silver leverage, but no manipulation.
Silver bulls should be extremely happy that the paper market is larger than physical...
In a recent interview, David Morgan confirmed to me that the annual physical silver production is of roughly one billion ounces. With silver trading around $20 currently, this represents a $20 billion market for physical silver.
So the size of the physical silver market is of $20 billion, whereas Bloomberg is mentioning $5 trillion.
.....Because such a tiny market cap of $20 billion would generate very little investor attention. There are at least 360 companies that are worth more. Examples include Sirius Radio, Twitter, Hershey and Kelloggs.
Knowledge is the enemy of fear
2 Points:
1) Why does such a tiny market need such a preponderance of paper contracts? None of the above companies experiences leverage in that magnitude. Why not?
2) For having such a small sliver of market value, and in generating very little investor attention, can you imagine what silver will do when it does generate investor attention? It won't take much.
I knew it would happen.
2. Possible. But silver is heavy and cumbersome and prone to theft. People are lazy and would rather click keys on a keyboard than push a wheelbarrow and carry a firearm.
But, what if silver already has investors attention? It was $4 just a decade ago.
Knowledge is the enemy of fear
re: #2 - silver only has $20 billion worth of attention, as you pointed out. At $4/oz. it was only $4 billion worth of attention.
I've never used a wheelbarrow for silver. A 2-wheel cart might work better, you can keep your firearm a little more accessible.
I knew it would happen.
<< <i>
<< <i>250 to 1 paper to silver leverage, but no manipulation.
Silver bulls should be extremely happy that the paper market is larger than physical...
In a recent interview, David Morgan confirmed to me that the annual physical silver production is of roughly one billion ounces. With silver trading around $20 currently, this represents a $20 billion market for physical silver.
So the size of the physical silver market is of $20 billion, whereas Bloomberg is mentioning $5 trillion.
.....Because such a tiny market cap of $20 billion would generate very little investor attention. There are at least 360 companies that are worth more. Examples include Sirius Radio, Twitter, Hershey and Kelloggs. >>
Silver got plenty of attention in July 2008 when JPM & Co. carried $200 BILL notional in otc silver derivatives.....at least 10X the size of the world silver market. What other market would the SEC/CFTC allow such a small
group of players hold 10X the size of the entire market as an opaque "trading" or "hedge" position?
<< <i>Ted's latest commentary - 14 July 2014 >>
Most important and revealing work Butler has done. A must read for every silver stacker and both every believer and non-believer in price manipulation.
From the link: "The two separate 30%+ silver price declines within days in 2011 were also the two largest price declines for any commodity in history. Please think about that for a moment. Had any stock or bond or currency market crashed that much in a matter of days, would there not be some public assurance as to what took place from any regulator or exchange involved? If any other commodity had fallen as dramatically as silver fell (twice) in 2011, would you not expect the CFTC or the CME to comment on it? Yet, to my knowledge, neither has uttered a word to this day. There’s really only one plausible explanation for why the CFTC and the CME have been silent on a most unusual commodity price movement(s) in history – they were both in on it."
que cohodk.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Knowledge is the enemy of fear
Hmmmm..............seems normal to me. Not.
I knew it would happen.
A good overview of gold manipulation that isn't too complicated to understand.
PCR was an Assistant Secretary of the Treasury for Economic Policy under Reagan, among other credentials in the financial world. He seems to think that Comex is complicit in illegal market activities, supported by the current political regime and banking cartel. How long before the markets in general know that they've been had?
I knew it would happen.
And how come these "experts" never post graphs of quick up moves where xxx contracts traded? Does the "Government is complicit in the price suppression and manipulation of gold and silver and welcomes the insider trading" rhetoric spewed by those who dont understand market mechanisms, believe in little green men and want to separate you from your dollars, not hold so much water?
Knowledge is the enemy of fear
Don't you BELIEVE him without volume charts? Gosh, it's only been a few days ago, so I'm sure that you can access them since you are pretty much the "chart man" around here. And that goes for the 2011 silver charts that Ted Butler refers to as well. Let me know if you need them, and I'll try to round up some charts for you. I was gone yesterday, and I have to get on the road tomorrow, but I could try to find some time.....
2nd point - do you not think that Paul Craig Roberts (or Ted Butler, for that matter) understands market mechanisms? Just askin'.
I knew it would happen.
o you not think that Paul Craig Roberts (or Ted Butler, for that matter) understands market mechanisms? Just askin'.
No I do not.
Knowledge is the enemy of fear
<< <i>Oh, I can find the volume charts easy enough, just curious why he chose not to present them.
do you not think that Paul Craig Roberts (or Ted Butler, for that matter) understands market mechanisms? Just askin'.
No I do not. >>
'splains everything.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Knowledge is the enemy of fear