How JP Morgan Manipulates the Silver MarketSubmitted by TommyPaine on Fri, 03/29/2013 - 11:30
Back in 2008, Bear Stearns was an investment banker making big financial bets. Their bets went bad and the company was insolvent. Instead of going through the normal bankruptcy process, Bear Stearns' assets were sold for pennies on the dollar to JP Morgan, which included a MASSIVE short position in the silver futures market.
JPM was given a guarantee by the federal government (US taxpayer) of $29 billion against losses. And since 2008, JPM has been manipulating both the silver and gold markets.
The regulators (CFTC) know what is going on. They have EVIDENCE. But they do nothing. This is government bureaucrats protecting the criminals.
In 2010, a futures trader in London named Andrew Maguire became friends with some of the JPM silver traders in London. Andrew found out what they were doing (it was not a secret among that group) and became a whistleblower. He sent emails to the CFTC telling them what was happening, even predicting before hand WHAT DAY it would happen.
The CFTC has refused to do anything about it. They did have a hearing, and the day after Andrew Maguire was publicly announced as the person who was the whistleblower, an attempt was made on Maguire's life.
The feds know what is going on. The Federal Reserve knows (of course). They want silver and gold prices to stay artificially low so that the US dollar does not look so weak. They are using JP Morgan, as well as HSBC, to do it.
And the US taxpayers are backstopping JPM in their silver manipulation.
So, when you see people and especially politicians "alarmed" that a big firm like JP Morgan had a couple billion in trading losses (out of its London office, no less), just ask why they are not talking about the $29 billion guarantee against losses the US taxpayers are paying for.
And then there is MF Global. They were a commodities broker. People who wanted to trade the futures market could open a brokerage account with MF Global to trade. MF Global was run by John Corzine, former US senator and former governor of New Jersey. In other words, he is politically connected.
MF Global also traded for its own account. They got heavy into Italian and Greek bonds (sound familiar?). When those trades went bad, MF Global, just like Bear Sterns, was insolvent. But instead of going through the normal bankruptcy process, they STOLE their customers' money by wiring $200 million to the bank that had lent them the money. And that $200 million loan was made by none other than ... JP Morgan. So, JP Morgan has the $200 million. They admit this. But they refuse to turn the money back to the investors who had it stolen from them to cover a margin call.
The regulators will do nothing. The US Department of "Justice" will not prosecute John Corzine and put him in prison.
Now, of course, we have something similar in Cyprus. Once again, the people running the two biggest banks made bad bets (Greek bonds) and made the banks insolvent. And now, the depositors are having their money stolen to pay off those debts; meanwhile, the Cypriot president's friends were notified a few days before and they wired over 4 billion euros out before the banks were shut down. Is anybody going to jail?
We have manipulation of the metals market to prop up the US dollar. We have the US government give special favors to a private company that will do the dirty work. We have government regulators refusing to put a stop to it, much less prosecuting the criminal conduct. And we are seeing politicians taking advantage of a "crisis" to further their own goals.
It is all the same problem: a few people in the financial community who have NO CLUE what the f**k they are doing are using other peoples' money to get rich, and other peoples' money to get bailed out -- AND their political connections to get away with it without punishment.
Yes, they are corrupt. But without corrupt politicians and bureaucrats, they could not get away with it.
Here are the emails from Andrew Maguire to the CFTC explaining, predicting and proving the manipulation of JP Morgan in the silver market:
Here's something from Wiki on it:
Here is an interview with metals expert explaining it in more detail: