Max Keiser tells the world to Crash JP Morgan, buy silver

reply to post by Dance4Life


sorry, your are wrong again. 30,000,000 is more than the average annual US production AAAND the big banks are exempted from position limits (according to your own links).


do all of your arguments rely on ad hominem attacks?

So anyway, let's list the facts.

# 1. You are incorrect with your original premise of no contract limits.

# 2. Other banks don't matter, this is all about JPM, am I not correct?

# 3. What does HSBC have to do with anything?

Here are the more interesting questions I have to ask.

# 1. What is to keep JPM from buying out of the money calls to hedge their positions?

# 2. If the biggest players in the game know this information (which they do) why wouldn't they just purchase $30,000,000 worth of Silver contracts themselves and start a real war? There are many large independent traders that could take on this margin with leverage.

# 3. In the futures market there is something called delivery and expiration. At the end of every contract YOU MUST DELIVER OR GO FLAT.

# 3. You are incorrect with your assumptions. In the futures market there must be a buyer for every seller. That is what makes commodities volatile. It isn't just play dollars like the Fed prints zeros in the bank. There must be someone on the opposite side of your trade. Explain to me how this whole thing is colluded. But please use facts.

I am not here for an argument, but truly looking for information in why I should put every spare dollar I have into this commodity. I would do this too if I thought there was any real merit to this whole charade.

reply to post by sp00n1


Where are those facts?

There's less physical silver in the world. That's a pretty good reason. Demand is up. China and India being the biggest consumers of silver. The gold silver ratio is down. When I started buying silver back in March it was 66 to 1. Today it's 52.5 to 1. My silver has increased in value by 40% in the last eight months. I have an article by The Mogambo Guru.

www.lewrockwell.com...

I take physical delivery.

reply to post by alonzo730


Silver may be undervalued. Let's put it this way.

The all time high for Silver is $49.45

Since that point Silver has not performed well to say the least. There is probably an opportunity, yes. But why am I reading so much misinformation about what is going on? That worries me.

This whole metals complex is heavily invested with retail money and that worries me as well. If Silver heads back down to 24, which I think it most likely will, I might try a small position. But not probably not physical, definitely the ETF.

What are you paying on the markup currently? I see SLV extends the losses to a greater percentage than the futures contracts, but I'm personally not a real fan of laying down $6,500 to leverage 5,000 ounces. I don't have that risk tolerance anymore, nor the hair on my head.

reply to post by sp00n1


You've got it right sp00n1. Currently there are no [CFTC enforced] hard position limits on Gold/Silver, which is why Dodd-Frank seeks to impose them. Strict, federally regulated position limits on precious metals were abandoned in 1991, when the responsibility for policing position size, and hedge exemption violations was transferred from the CFTC, to the Comex. In other words, the fox has been guarding the hen house.

Commodities Future Trading Commission

Beginning in 1991, the commission approved several exchange rules establishing position accountability provisions in lieu of position limits....

An EXCHANGE'S position accountability rules, as opposed to position limits that bar traders from acquiring contracts that quantitatively exceed a specific number of outstanding contracts, require persons holding a certain number of contracts to report the nature of their positions, trading strategy, and hedging needs to the EXCHANGE, upon the exchange's request - Page 12

The problem with respect to Gold/Silver is that the exchange has never issued a "request". Nobody knows what percentage of short OI represents [illegal] house proprietary spec positions..vs..legitimate client hedging activity. In any given month, what percentage of outstanding short interest represents large commercial specs (you know the names) masquerading as bona fide hedgers ?

Unless the CFTC compliments hard position limits under Dodd-Frank, with clear guidance, and strict regulation on hedging exemptions, the effort to achieve greater transparency and accountability in the futures exchange will be just another waste of time, and taxpayer money.

On a related note, the sheer volume of ounces represented in these out-sized, concentrated short positions tells anyone with 3rd grade math skills...they're naked.....a direct violation of the CFTC's 90% cover rule.

reply to post by OBE1


But wait.

The CFTC has no limits? But the CFTC is not an exchange. So that is irrelevant in relation to the position size that can be held by any individual or group.

So, yes, there is a position limit in Silver. It is 6,000 contracts. Which is probably way too much, but there is a limit.

Thanks for clearing everything up.

reply to post by OBE1


Since you seem to be interested in the metals complex I have another question.

# 1. The CME knows exactly at all times what JPM holds, wouldn't you agree?

# 2. How would this scheme be hatched? I find it hard to believe they could be doing all this volume in forward contract months. Let's say my math is at a 3rd grade level, please do the math for me. The volume should be easy to find if they are dealing in the illiquid fwd months. It cannot be all in the same month for delivery since every month is a delivery.

# 3. What is to keep them from laying off risk in options or in other arenas such as E-Mini Silver or selling size in the USDX?

I really, really find it hard to believe that anyone could sink JPM (Fed's right hand man) in Silver. There are countless ways to hedge exposure in this market. I also find it hard to believe that the CME would allow any violations no matter where they are coming from.

The CME makes money easily, they just need volume. If they let one thing slip their entire operation is over because no one trusts their electronic markets anymore. Why risk this?

In my opinion, if you were to believe the CME is letting JPM get away with violations, then you pave the way for the entire market to be a sham. I can't believe this because there is time and sales for all transactions. If this is truly the case, and this accusation indeed comes to fruition, the entire CME is shut down.

So either there is going to be one hell of a cover-up or the USA is going to literally be a fraction of what it once was a day before the verdict.

according to the commitment of traders reports, and the bank participation reports, both from the CFTC, indicate the largest single position is held by a bank on the short side. The position's size is about 30,000 contracts (or 150 million ounces. That amount is about 120 million ounces larger than the current accountability limit.

Presumably, they must have been granted an exemption to the position limits, but this seems wrong to me.

the current open interest in silver is about 114,000 contracts (or 570 million ounces), almost a year's mine production. collectively, the two largest positions account for over 25% of this open interest. The only two banks that could be responsible are JP Morgan and HSBC.

There is no way either of them could possibly deliver 150,000,000 ounces each month, yet that is how much they sell in futures. However, since these contracts are usually settled for the cash value no silver needs to change hands. This is EXACTLY why they suppress prices, to avoid paying out the difference in value.

No trader on the long side has been granted the same exemptions as the shorts. Which means any one entity is limited to 30 million ounces, while each of these two longs seemingly are able to sell as many contracts as they want.

and, the delivery month limited to 1,500 contracts (or 7.5 million ounces). so how would any one entity possibly expose the fraud? they cant because the game is rigged.

If it wasnt for these banks large short positions, the buyers would need to be willing to pay a much, much higher price in order to find sellers. Since these banks are always willing to sell contracts way below market price, the longs open bids are always met at very, very low prices. Why pay $50 to get a real ounce of silver when a bank is willing to pretend to sell it at $20?

this old 'two sides to each contract' argument is tired, and false. you need to stop letting john nadler's lame excuses cloud your critical thinking abilities.

reply to post by sp00n1


Right on. People need to be open to these ideas, in spite of the fact that they may seem counter-intuitive. Because it's essentially a massive fraud, going on in broad daylight, people are blind to it. Like the Federal Reverse Notes in our pockets, a massive fraud, and yet such a familiar one.

I mentioned it earlier, but people need to look up Ted Butler's extensive writing on this subject. He is a true expert on reading and understanding the COT reports, and by the way, he provides enough common-sense commentary so that no one should feel that they need to be a financial genius to understand his points.

YES, there is a massive fraud going on when it comes to the tiny silver market. The banks long ago identified this commodity as one of the very few that they could truly control, and so they do. For decades it has been a reliable cash cow, pumping billions virtually risk-free into their pockets.

I, along with Butler, Hommel, Friedman and others believe that this fraud can NOT go on forever, and when this jig is up, silver will explode like nothing else has. And if JP Morgan and accomplices should go down in the process, then that's just an added bonus!

JR

reply to post by sp00n1



Show me that information.

Show me where it says someone is holding more than the position limit for Silver and is in breach of rules held by the CME.

I personally like facts and not hearsay. I'm not saying there isn't something fishy going on, but I really do not think this is the case.

Also, lets use logic for a second.

If someone is short 30,000 contracts - which equates to 30,000 * 5000 troy oz. = 150,000,000 troy oz. which is equivalent to 20 some odd percent of the total mined volume in the world / year - when these contracts expire they MUST DELIVER.

How is this being done? If you give me the data I am guessing I can figure it out somehow with enough research. But judging by the quality of information on the internet lately I just do not personally trust anything. I can go in and look at open interest for all silver contract that are traded currently and try to come up with some formula. I am guessing this information is readily available.

reply to post by Dance4Life


commitment of traders
www.cftc.gov...

bank participation
www.cftc.gov...


and, when the contracts expire, they are most often settled in cash, sometime even at a 25% premium incentive for cash settlement. they do not, and cannot deliver the actual silver. when the contracts expire, they are settled.... they are settled in cash.

according to this CME representative, it is common knowledge that silver trades at multiple hundreds of times more than actual silver available. he seems to think thats ok




thats what this whole movement is about. we have identified a conspiracy, proven it with the government's own evidence, gotten confirmation from the CFTC regulators, and even gotten a high level insider to admit that they are selling silver that they dont have. This has been confirmed by 'officialdom'. we have identified that it is going on, and that the criminal justice system is impotent to stop it.

but this is what ATS is all about. we know that by exposing this criminal conspiracy, we can bring it to an end. there is NO WAY that "they" can possibly deliver the silver they are selling, which is why all it takes is for 33% of americans to buy one, JUST ONE, silver coin.

reply to post by sp00n1


OK

Let me look this over and I will do the math myself. Hopefully I am guessing there is some sort of oversight with whomever is coming up with these figures.

When I have some free time later I will post what I have come up with.

Originally posted by Dance4Life
reply to post by sp00n1

 

Hopefully I am guessing there is some sort of oversight with whomever is coming up with these figures.

that goes to the heart of the matter, lol.


these figures are directly from the CFTC, they are THEE guys supposedly providing oversight of the entire process.

also, they recently stopped breaking down the information on an individual basis, because 'we' were able to tell which banks had which positions just based on the information. even though they didnt say it was 'this' bank, the data made it impossible not to tell. so now the cftc tries to obscure the data because they are 'bound by law not to release individually identifiable information.'

reply to post by sp00n1


It is impossible to tell. But I have been able to identify a couple of things that stand out. I need to go over it more as work has kept me busy. There are a couple of things that don't exactly make sense to me so hopefully someone else can answer them or I will be sending an EMail to the CME and CFTC. If you want I can include other questions as well.

The Guardian is running a story from Max!

www.guardian.co.uk...

Silver is back over 29. Looking forward to hearing Max on AJ later today

Max Kaiser first tried to take Coca Cola to zero with a campaign to short the stock and boycott the product. He got embarrassed and probably financially hurt in 2008 when silver imploded (along with the equities market and all commodities)....our whiff of defacto deflation. He blames JP Morgan for being "naked" short silver (100:1 ratio, etc). As a financial advisor he should know that 98% of all futures contracts (a derivative) are Not settled with actual physical delivery. Most hedgers and virtually all speculators offset their contracts. On top of that if a trader makes 10 trades in silver in one day (day trader) it would imply that someone purchased 50,000 oz of silver when in fact he may have traded 5000 oz 10x. That aside. Max Kaiser (who lives in France btw) is wanting to implode JP Morgan for being naked short size. The CFTC should enforce position limits but I suspect that Morgan was doing the bidding of the us government in an attempt to control silver (poor people's gold) to control the forces of inflation and stave off the deterioration of the fiat money system. While I believe that such a demise is inevitable long term why hasten it? One should be aware of "unintended consequences" that may result. First, if JP Morgan goes down it would bring down the entire financial system and collapse the dollar. Does he really want that? Is he an agent for the NWO or just a "useful idiot" who is speeding up there plan to create chaos and then rescue us with a new world currency? Does he really want to walk around with a pocket full of gold and silver coins to make everyday purchases? Altho it is no fun to be shaken out of a futures position due to market manipulation of stops, etc and the free market should rule....those accumulating metals for the long term should thank JP Morgan for keeping prices lower to facilitate same. Do we really want to pay $50 -500 for silver....gold would be 10,000 if silver goes to 500 and it would cost 2500 for a simple gold wedding ring. Does he want us to short jewelry store stocks also? Second, silver (or precious metals) wont go up in a vacuum. Everything will go up....does he want a "self fulfilling prophecy" for super if not hyper-inflation also? He (we) should be content to let the price appreciate over the long term and use bear raids by the paper sellers to buy more and Not wish to blow up the financial system so we can try to run up the price and sell silver for a deflated currency that we hastened to destroy. I wonder who the real financial terrorist really is here.....

This is a great little video. Let's do it! Let's take JP Morgan down! Everybody can buy some silver coins Have a big garage sale and get rid of all the junk you've been storing up and put it all in silver. Sell stuff on Craigslist. Give Silver for Christmas gifts and birthday gifts! It's a lot better than giving some worthless Chinese junk that will be soon thrown away.

Put the word out through facebook and other websites!

reply to post by CosmicCitizen


Thanks for your analysis! Very interesting and some things I wonder about myself. Be cautious about what you wish for seems to be in order here. While I am always enthralled by a good David v. Goliath scenario, when silver rises I do get nervous. Is it playing into TPTB hands to accelerate the crash? They will pull the plug when the time is right for them. Might it be better for us if their plans aren't all nicely laid out when it crashes? Particularly if a byproduct is that more silver is in the hands of the people? I think Max is a very smart guy but, as you point out, he lives in France. Has his ego been so bruised, by not being a part of the inner sanctum (unless he is, lol) and failing in his last boycott takedown, that he is essentially throwing a tantrum even if it instigates a financial tsunami. These are all interesting questions to ponder and I have thought about them a good deal over the last weeks. Your information added a lot of detail.

GG, people need to think these things thru. I am disappointed in Bob Chapman (fri guest on AJ) endorsing this scheme also. Altho he doesnt live in France (Keiser and the group advocating taking all cash out of the banks on Dec 7 which could start a bank run world wide if everyone followed) he does live out of the country also (more for his security than Keiser who chooses same for his lifestyle a la Johnny Depp). The poor (collective) fools who go out and buy 1-10 oz of silver wont be protected if they break the banking system and we end up with a self-fulfilling prophecy where the cost of basic goods and energy skyrocket! These are supposed to be smart people....they should welcome the opportunity to enjoy relative prosperity without chaos and be able to continue to accumulate physical bullion at reasonable prices. Either these people (and I include Damon Vickers in that camp) are "useful idiots" or they are part of a conspiracy. Altho I am fond of Bob Chapman I am reluctant to fully trust those with intelligence and counter-intelligence backgrounds. One of the key tenets of Sun Tzu's art of war is "deception." Even the fabian socialists incorporate deception into their coat of arms....which is a wolf in sheep's clothing. Along those lines I wouldnt be surpised if this destroy JP Morgan campaign isnt some cooped grass roots (thanks NIA for doing your part to ignite dry tender) move to light the fire of inflation and ignite the huge money supply increase that is sitting dormant and not creating inflation due to the low money multiplier do to the weak economy. Silver gets it going then all commodities take off and then the dollar falls which exacerbates a vicious cycle which forces interest rates higher and treasury obligations lower....the end result being a financial collapse decades ahead of its time (without allowing deficit reduction measures to work or at least buy us valuable time) in sync with their time table to introduce their one world currency and financial system. I have heard that JPM is buying up mining interests at the source (probably gold mining stocks as well) and having spun of its financial machinations to a de facto hedge fund could sacrifice the hedge fund to go belly up while they reap the benefits of a huge explosion in gold and silver. Along those lines it might be important to note that government connected Golman Sachs raised a billion dollars earlier in the year after posting record earnings but no one knows why.....did they buy gold and silver with the proceeds?? Think people and dont allow these people to deceive us. Dont chase the markets higher to make them rich but take advantage of eventual lower prices (ie, 1050-1100 gold and 16-17 silver) to accumulate.