Comment Text:
10-005
COMMENT
CL-00674
From:
Sent:
To:
Subject:
Geoff Petras
Tuesday, April 13, 2010 3:42 PM
Metals Hearing
PM Position Limits
Dear Sir;
Thank for the opportunity to comment on the issue of position limits for precious metals. Please establish a
speculative position limit in COMEX silver of no more than 1500 contracts. Please restrict any hedging
exemptions from those limits to legitimate hedgers. Please stop the levels of concentration in COMEX silver
futures that have been experienced over the past few years on the short side of the market.
Sincerely,
Geoffrey Petras,
P.S.
The public is growing in its awareness of the Federal Reserve System and the tentacles of the self interested
elite. The subject is the key to understanding how we have arrived at this unfortunate juncture. Below is an
excerpt from a typical recent article that is begining to infiltrate the mainstream but is more often found
on websites such as Kitco. The subject is beginning to be discussed by the common man at the dinner table after
years of ignorance. It is a subject that ultimately impacts the blessings of liberty:
After 1971 when gold was no longer anchored the currencies of the West, Western
central banks embarked on a campaign to defend their now fiat paper currencies against
any rise in the price of gold, oil and other commodities that would expose the declining
value of their paper currencies.
Thus began the West's war on gold, a war directed by the West's central banks. In an
article written in 2001, Peter Warburton expertly deconstructs and details what to most is
still opaque, the reason why the gold market is manipulated by Western ruling elites.
Warburton's article exposes why the US Commodity Futures Trading Commission last
month chose to ignore charges that gold and silver markets are manipulated. The central
banks (and the CFTC) are well aware of the manipulation; the reason being that central
banks are responsible for the manipulation and Warburton explains why:
What we see at present is a battle between the central banks and the
collapse of the financial system fought on two fronts. On one front, the10-005
COMMENT
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central banks preside over the creation of additional liquidity for the
financial system in order to hold back the tide of debt defaults that
would otherwise occur. On the other, they incite investment banks and
other willing parties to bet against a rise in the prices of gold, oil, base
metals, soft commodities or anything else that might be deemed an
indicator of inherent value. Their objective is to deprive the independent
observer of any reliable benchmark against which to measure the
eroding value, not only of the US dollar, but of all fiat currencies.
Equally, their actions seek to deny the investor the opportunity to hedge
against the fragility of the financial system by switching into a freely
traded market for non-financial assets.
It is important to recognize that the central banks have found the battle
on the second front much easier to fight than the first. Last November, I
estimated the size of the gross stock of global debt instruments at $90
trillion for mid-2000. How much capital would it take to control the
combined gold, oil and commodity markets? Probably, no more than
$200bn, using derivatives. Moreover, it is not necessary for the central
banks to fight the battle themselves, although central bank gold sales
and gold leasing have certainly contributed to the cause. Most of the
world's large investment banks have over-traded their capital so
flagrantly that if the central banks were to lose the fight on the first
front, then their stock would be worthless. Because their fate is
intertwined with that of the central banks, investment banks are willing
participants in the battle against rising gold, oil and commodity prices.
