Comment Text:
10-005
COIMMENT
CL-00661
From:
Sent:
To:
Subject:
Smitty
Tuesday, April 13, 2010 6:13 PM
Metals Hearing
Fraud in precious metals manipulation
/I am concerned and deeply upset by the ongoing fraud perpetrated by the
CFTC and the banking interests in the precious metals market. All in
strict violation of your own rules and regulations.
It is time you do your job and enforce these regulations.
Sincerely,
Marion Smith
/
/
Step 1: Fully Describe Your Concern/
/1. What are the names of companies, individuals, or organizations that
are involved?/
The CFTC, the Commodity Futures Trading Commission, is withholding the
names, with the excuse given that they cannot reveal the names, because
of statute. But, a statute, which may violate other laws, is no excuse
for obstruction of justice, dereliction of duty, misprison of fraud, or
conspiracy to defraud the United States.
The COMEX, owned by the CME Group, also has the data on who is
primarily involved, as the antitrust violaters trade on their exchange.
http://finance.yahoo.com/q?s=cme
*JPMorgan Chase & Co. *has been named by thousands of writers in the
private sector, all over the internet, based on the reports of the BIS,
the Bank of International Settlements and the OCC, the Office of the
Comptroller of the Currency at the US Treasury, that they manipulate the
precious metals markets by fraudulently selling metal that does not
exist. This Bank report indicates that *JPMorgan Chase & Co. *is
heavily involved, far more than any other, in derivatives, exceeding $72
trillion.
*JPMorgan Chase & Co.
*270 Park Avenue
New York, NY 10017
http://www, occ.treas, gov/ftp/release/2009-161 a.pdf
/2. How do you believe they have violated the federal antitrust laws?
(For details on federal antitrust laws, see Antitrust Laws and You.)
//http ://www.justice. gov/atr/laws.htm/
/RE:
Sherman Antitrust Act
This Act expresses our _national commitment to a free market economy_ in10-005
COIMMENT
CL-00661
~vhich competition free from private and governmental restraints leads to
the best results for consumers. This Act outla~vs all contracts,
combinations, and conspiracies that unreasonably restrain interstate and
foreign trade. This includes agreements among competitors to _fix
prices, rig bids, and allocate customers_, ~vhich are punishable as
criminal felonies. /
*JPMorgan Chase & Co. *holds a large, concentrated, short position in
silver futures contracts at the COMEX that allo~vs them to unreasonably
fix prices for silver louver than they should be, ~vhich resulted in
~videspread shortages of retail bullion, and 1000 oz. silver bars, over
several months in 2008, at ~vhich time, I became a bullion dealer to help
relieve the shortages caused by this price manipulation. I had to ~vait
up to 5 ~veeks for delivery of 1000 oz. bars from one of the ~vorld's
largest ~vholesale suppliers at the time.
It has been estimated that *JPMorgan Chase & Co. *has held up to, and
over, 90% of the commercial short interest in silver futures contracts,
essentially dumping silver on the market, silver that does not exist, in
an attempt to contain, th~vart, suppress, and manipulate the price of
silver louver than it should be, and other~vise ~vould be.
/RE: The Sherman Act also makes it a crime to monopolize any part of
interstate commerce. An unla~vful monopoly exists ~vhen only one firm
controls the market for a product or service, and it has obtained that
market po~ver, _not because its product or service is superior to others,
but by suppressing competition ~vith anticompetitive conduct_./
World silver prices are monopolized by this price manipulation that
takes place at the COMEX, and also in the London market, ~vhich is even
more heavily leveraged due to excessive selling of silver on paper that
does not exist in the real ~vorld. Their primary product, "silver on
paper" is clearly inferior to real silver, in that the key difference is
that real silver does not depend upon the financial solvency of
*JPMorgan Chase & Co. *for its value; and paper silver ~vill lose all
value if *JPMorgan Chase & Co. *goes bankrupt. Competition for real
silver as an asset is suppressed by their choice to sell paper silver at
a discount to the costs of delivering real physical silver, ~vhich must
include shipping, manufacturing, and mining costs. Other popular forms
of silver for investment, such as 100 oz. bars, and 10 oz. bars, and 1
oz. rounds also include manufacturing costs, ~vhich are also not included
in their "paper silver" investment products, such as the ETF, SLV,
futures contracts at COMEX, options on futures contracts at COMEX, and
the standard LBMA "unsecured bullion accounts".
/RE: The Clayton Act
This Act is a civil statute (carrying no criminal penalties) that
prohibits _mergers or acquisitions that are likely to lessen
competition_. Under this Act, the government challenges those mergers
that careful economic analysis sho~vs are likely to _increase prices to
consumers_. All persons considering a merger or acquisition above a
certain size must notify both the Antitrust Division and the Federal
Trade Commission. The Act also prohibits other business practices that
may _harm competition_ under certain circumstances. /
The Clayton Act ~vas likely violated ~vhen *JPMorgan Chase & Co. *acquired
Bear Stearns, and inherited their short position in silver, giving10-005
COIMMENT
CL-00661
*JPMorgan Chase & Co. *even more control over silver market prices, due
to their even larger and more concentrated short position. "Higher
prices for consumers" is a result if the consumers are silver investors,
and if they lose the value of their silver, and thus, have to pay
relatively higher prices for everything else in the economy as a result.
/RE:
The Department of Justice also often uses other laws to fight illegal
activities, including la~vs that_ prohibit false statements to federal
agencies, perjury, obstruction of justice, conspiracies to defraud the
United States and mail and ~vire fraud ./
The BIS, the Bank of International Settlements indicates that the
notional value of "other precious metals" (silver) in the "over the
counter" category increased to $203 billion by June of 2009.
http ://~wwv. bis. org/statistics/otcder/dt21 c22 a. pdf
Yet, the entire ~vorld's annual production of silver, at about 600
million oz., at $17/oz., is barely $10 billion, ~vhich is a mere 1/20th
of the amount o~ved in these bullion accounts, ~vhich are dominated by JP
Morgan. But the $203 billion of mostly silver, is 12 billion ounces of
silver, ~vhich is 24 times ~vorld annual production, and perhaps 100 to
160 times the actual supply of physical silver held in London for
delivery against such accounts, ~vhich may be as little as 75 million
ounces or less.
*JPMorgan Chase & Co. *is also the custodian of the ETF, SLV, ~vhich is
supposed to have up to 300 million ounces held by JP Morgan, ~vhich is
also likely not there.
*JPMorgan Chase & Co. *is thus likely engaged in a Ponzi scheme of
selling silver to clients, ~vithout actually purchasing the real physical
silver in the marketplace, ~vhich is a totally fraudulent and illegal
activity.
*JPMorgan Chase & Co. *is likely engaged in sending false brokerage
statements to account holders of unsecured bullion accounts, and thus,
is _likely engaged in both mail fraud and ~vire fraud. _
*JPMorgan Chase & Co. *is likely engaged in _defrauding the United
States Government_ by manipulating silver prices lo~v, by selling
excessive amounts of "paper silver", ~vhich creates the false illusion of
abundance of silver, ~vhich creates the illusion of a false sense of
availability of silver, ~vhich is likely needed by the Department of
Defense for the national security of the United States, as silver is
vital and necessary element for the defense industry.
3. Can you give examples of the conduct that you believe violates the
antitrust la~vs? If so, please provide as much detail as possible.
Yes. Andre~v Maguire, a silver trader, ~vho kno~vs the silver traders ~vho
,
~vork for *JPMorgan Chase & Co. , testified to GATA, and to the CFTC in
the recent hearing on March 25th, 2010.10-005
COIMMENT
CL-00661
See
A London trader ~valks the CFTC through a silver manipulation in advance
By: Bill Murphy, Gold Anti-Trust Action Committee
http ://ne~vs. silverseek.com/SilverSeek/1269625544.php
Andrew provides detailed, blow by blow acts of price manipulation,
giving specifics, in real time, through emails to the CFTC about the
manipulation in progress. His report is highly detailed.
4. What is the product or service affected by this conduct? Where is
the product manufactured or sold, or where is the service provided?
Good question. The product is silver. Real silver is sold through
approximately 4000 coin shops nationwide in the USA. A low, manipulated
price, hurts and suppresses the business volumes of those businesses.
Even more directly, a low silver price hurts the worldwide industry
of silver mining. Most silver, about 75% is produced as a by-product of
copper, lead, and zinc mining. And many primary silver mines produce
gold, copper, lead, and zinc as by-products. Thus, a low silver price
that suppresses silver mining also restricts the supplies of gold,
copper, lead, and zinc, which leads to higher prices for all of those
other commodities than would otherwise be the case. The world could
have more abundant, and thus cheaper, gold, copper, lead, and zinc,
which are desperately needed for the continued industrialization of the
entire world, if it were not for the silver price suppression
manipulation scheme in progress.
Silver is primarily produced in North and South America, so this is a
direct assault on a large section of the world's economy, which is, of
course, a much smaller industry as a result.
5. Who are the major competitors that sell the product or provide the
service?
The largest refiner of silver in the world is likely Penoles of Mexico,
who may refine about 70 million ounces of silver per year, over 10% of
the world's supply. The second largest source is likely the Cannington
silver mine owned by BHP Billiton, which produces about 30-40 million
ounces of silver per year. The largest silver refiner in the USA is
Johnson-Matthey, who also might have been engaged in illegal allocation
of 100 oz. silver bars back in 2008, as their primary retailer had a
wait list of over 2 months for delivery in 2008 as a result of their
complicit actions in the price fixing scheme. They refused to allocate
silver to the highest bidder at the time. At that time, I helped
pioneer the development of a silver auction website, with the owner of
silverseek.com, who created seekbullion.com, which sold over 10,000 oz.
of silver per day to the highest bidder for a few days during a time of
a national and worldwide silver shortage that resulted from the illegal
price fixing.10-005
COIMMENT
CL-00661
6. What is your role in the situation in question?
Another very good question. I invested in silver, starting in 1998. I
have been advocating silver as an investment since then, as can be seen
at silverstockreport.com, ~vhich also has an email ne~vsletter that
reaches out to 80,000 readers. The price manipulation has negatively
impacted the success of my o~vn investment choice, and the investments of
hundreds of thousands of other people around the ~vorld. I have been
~vorking to expose this manipulation since 2002, as I ~vrote, and spent
over $500,000 to publicize, articles such as:
_The Moral Failures of the Paper Longs_
Paper_Longs.html>*
Jan 22, 2003
* CFTC Response to Silver Problem_
<~ttp://~wwv.silverstockreport.com/essays/CFTC Response to Silver_Problem.html>*
Jan 14, 2003
*_People Talking About $32,567/oz_
*
Jan 10, 2003
* Letter To Authorities of Silver Markets
<~ttp://~wwv.silverstockreport.com/essay~Open_Letter To the Authorities of the Silver_Markets.html>*
Jan 6, 2003
*_Why no talk of $32,567/oz ?_
-.html>*
Jan 2, 2003
*_Refuting Myths about Gold_
Oct 28, 2002
_Controlling Gold ~vith Paper_
June 10, 2002
_Impending Gold Futures Default_
May 29, 2002
7. Who is harmed by the alleged violations? Ho~v are they harmed?
As I have said, silver investors ~vho need to sell their silver for their
retirement are primarily the ones harmed. But also, _silver mining is
suppressed_, ~vhich hurts companies ~vorking to develop technology to
explore for silver. It hurts engineers and builder ~vho develop mines.
It hurts and restricts the production of silver byproducts, ~vhich raises
the prices for gold, copper, zinc, and lead, ~vhich _restricts industrial
development ~vorld~vide_.
But primarily, _it ~vill catastrophically hurt holders of American
dollars in the future_, as they are currently being lulled into a false
sense of security about the false and fraudulent value of US Dollars, or
more accurately, Federal Reserve Notes, ~vhich stand to lose value
rapidly as the fraud of selling silver that does not exist gets exposed.
Thus, the silver fraud is a small part of the Ponzi Scheme on ~vhich
rests the much larger Ponzi scheme of the US Dollar itself, a $14-16
Trillion fraud, and also, the much larger US Bond market, ~vhich may
exceed $30-40 trillion. Further, the $70 Trillion "interest rate
derivative" fraud is also supported by silver price manipulation.10-005
COIMMENT
CL-00661
Inflation-indexed bonds are also sold as a competing investment to
silver, and so, by hurting the silver price, or by making the silver
price seem dangerously volatile by ~vay of direct price manipulation,
*JPMorgan Chase & Co. *supports its entire mountain of paper investment
products, which it clearly dominates in world trade.
*The silver price suppression scheme, and the resulting failure of paper
money, and the resulting collapse of commerce and world trade risks
sending the entire world into a severe depression that risks famine on a
world scale unlike what has ever been seen before in world history, and
could _therefore cause the direct deaths of anywhere up to a third of
all humans on earth, or even more. *
Please pause now, and reflect on that for a moment. You may wish to
consider and ask yourself if you want that on your conscience, or if you
want to be blamed for that, by God himself, in the eternal reckoning
that must come due for all men, if you decide to do nothing to stop the
fraud on progress, that could potentially cause so much devastation.
