NY Post: Trader Blows Whistle On Gold and Silver Price Manipulation

[CrackSmokeRepublican]

The NY Post now reports on the CFTC hearings....

11 April 2010
NY Post: Trader Blows Whistle On Gold and Silver Price Manipulation


    "Every society gets the kind of criminal it deserves. What is equally true is that every community gets the kind of law enforcement it insists on." Robert Kennedy


The CFTC hearing in Washington was about safeguards against, and limits on, naked short selling at the COMEX. The LBMA in London is a 'cash market' and while short selling is accepted, large leverage and blatant naked short selling is not. The crux of the scandal is that the Banks and hedge funds have been selling what they do not have in order to manipulate the price and cheat investors, in this market as they have been shown repeatedly to have done in other markets.

The story gets sticky in the States because, as disclosed in the motions in a New Orleans trial, the players filed a motion claiming immunity because they were acting in partnership with the Treasury and the Federal Reserve, and other central banks who were not within the Court's jurisdiction.

Watch this story unfold, and then make up your own minds. But be prepared for smears, diversions, misconceptions, and false denials. The accused parties will consistently try to ignore this, and change the subject. The attempts to pressure the media to ignore tihs altogether are a 'tell' if there ever was one.

I am shocked at the extent to which the Banks influence and control the American media. This was testimony at a public hearing, and it has been largely squashed. Judging by history, this is going to get ugly.

Thanks to the NY Post for breaking ranks with the mainstream media. Despite some significant behind the scenes pressure, the Post is actually publishing some words that the Banks do not wish the American people to hear. And many Americans to not wish to hear it, because it shakes their faith in the system, and threatens them with the unknown. And too many, including economists and even bloggers, are only too willing to 'go along to get along' and be invited to the posh gatherings of the famous, and receive some sinecure from the monied interests.

I do not know if this is true or not, or what the truth may be. But I do have a strong passion for bringing the light of day to shine on this, and for these markets to be much more transparent, as a reform, to prevent frauds which we do know have occurred and most likely are still occurring. For me the light of day is not smearing the messenger and making their life dangerously miserable, but that is what too often passes for journalism in the US today, as is seen in the case of other whistleblowers, most famously in the Plame affair.

Naked short selling in size is a cancer in the financial markets. And the way in which the Banks are obstinately fighting against any and all reforms that attempt to limit naked short selling shows the objective observer that they are firmly committed to a status quo that is designed to distort the markets and the real economy for their short term advantage.

Let's be clear about this: naked short selling in size is not a trading strategy, it is a means to a fraud.

This may be the Madoff ponzi scheme writ large, the heart of the darkness in the financial fraud that is the US financial system. The crowning achievement of the financial engineers at the Fed, who have built a Ponzi economy and an empire of fraud.

    NY Post
    Metal$ are in the pits
    By MICHAEL GRAY
    4:33 AM, April 11, 2010

    Trader blows whistle on gold & silver price manipulation

    There is no silver lining to the activities of JPMorgan Chase and HSBC in the precious-metals market here and in London, says a 40-year veteran of the metal pits.

    The banks, which do the Federal Reserve's bidding in the metals markets, have long been the government's lead actors in keeping down the prices of gold and silver, according to a former Goldman Sachs trader working at the London Bullion Market Association.

    Maguire was scheduled to testify last week before the Commodities Futures Trade Commission, which is looking into the activities of large banks in the metals market, but was knocked off the list at the last moment. So, he went public.

    Maguire -- in an exclusive interview with The Post -- explained JPMorgan's role in the metals pits in both London and here, and how they can generate a profit either way the market moves.

    "JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer," Maguire said.

    In the gold pits, Maguire sees HSBC betting against the precious metal's price without having any skin in the game in the form of a naked short.

    "HSBC conducts an ongoing manipulative concentrated naked short position in gold. Silver is much easier to manipulate due to its much smaller [market] size," Maguire added.

    "No one at JPMorgan is familiar with Andrew Maguire," said Brian Marchiony, a company spokesman. HSBC declined to comment. (Maguire seems to be creeping into the corporate consciousness. Earlier, JPM tried to deny that he even existed. Now they admit he exists but no one there knows him, despite his have traded alongside them for 40 years, and traded at a sister firm, Goldman. HSBC has at least enough conscience to simply sulk. - Jesse)

    Also during the CFTC hearing, Jeff Christian, founder of the commodities firm CPM Group, said that the LBMA, the physical delivery market for gold and silver in the UK, has been using leverage, which is another way to depress the price of gold and silver.

    Christian said that the LBMA -- the same market Maguire trades in -- has leverage of about 100-1 on the gold bars settled on the exchange. In layman's terms, that means if 100 clients requested their bullion bars be delivered, the exchange could only give one client the precious metal. (Note: the LBMA is not a 'futures' market like the COMEX where naked short selling is an accepted, if not entirely explicit, practice. The CFTC hearing was essentially about safeguards against and limits on naked short selling on the COMEX, despite the noise and distractions surrounding it. - Jesse)

    The remaining requests would have to be settled for cash equivalent. "That is tantamount to a default on the trade," says Bill Murphy, chairman of the Gold Antitrust Action committee...

    Read the rest here.
http://www.nypost.com/p/news/business/m ... z0knioYd8m

Posted by Jesse at 10:12 AM

http://jessescrossroadscafe.blogspot.com/

[LordLindsey]

http://www.nypost.com/p/news/business/i ... bCMbFFzotL

Mr. Michael Gray is the same journalist who exposed the ATTEMPTED destruction of the world economy on 09-11-08!  This guy deserves all of our respect and I will do what I can to promote him and his work.  Can someone please post the whole story on this Topic?

LINDSEY

[LordLindsey]

I discussed this with Rick Adams tonight for quite a while tonight, as promised when I said that I would do what I can to promote this most important information.  I implore those of you who can call-in to radio shows to PUSH THE EXCELLENT WORK that Mr. Michael Gray is doing for humanity in showing WHAT is happening financially; remember, folks, the New York Post is a multi-million-circluation paper in the MAINSTREAM MEDIA that is covering issues that you would find from Daryl and Ognir.  It is imperative that we give Mr. Gray all of the support that we can so that he knows that his efforts are NOT in-vain.

LINDSEY

[LordLindsey]

Folks, we need to have a Topic devoted to Mr. Michael Gray of the New York Post and his work showing the mainstream what "WE" know about the financial destruction that was ORCHESTRATED and is now taking-place.  I don't have the time to go through and find all of his best work, but if someone could do this and make a compilation in this or another Topic, it would be greatly appreciated as this guy is doing more to get the word-out via the mainstream media than anyone else I have seen regarding the financial-side of this.

I know that there are folks like Celente on, but Mr. Gray is a JOURNALIST for one of the biggest papers in the world, as well as an assistant editor for that newspaper; we need to give him as much support as we can to ENCOURAGE him to do more excellent work, as well as ENCOURAGE THE REST OF THOSE WHO KNOW THE SCORE TO DO THEIR JOBS as Mr. Michael Gray is doing his.

LINDSEY

NB:  For those who may wonder why I stressed the word "encourage" I have a very simple explanation:  To encourage means to strengthen the heart and will to do something; in this case it is to show that there are those with the COURAGE to do the RIGHT THING and there are those who are COWARDS and/or OBFUSCATORS who do NOT have the balls to do their jobs...Mr. Gray is a fine example of what a COURAGEOUS JOURNALIST is, and that should make us all proud.