CFTC Ends Five Year Investigation of Alleged Silver Market Manipulation

Please read the CFTC’s release carefully!!!  Too many articles on the web are incorrectly stating what was found or not found by the CFTC during its investigations.  But the release doesn’t report any findings other than stating “Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets.”  While it does not say that it found evidence of manipulation, it also does not say that it did not find any evidence.  It only states that they investigated the situation, by numerous means and with over 7,000 staff hours.

This is important and very revealing.  If there were laws in place that allowed certain entities to manipulate the market, the CFTC would not be able to bring legal charges against those entities even if it found the allegations of manipulation to be true.  And, as Chris Powell of GATA has demonstrated, this is exactly the situation: The authority [of the government to interfere in any market] was given in the Gold Reserve Act of 1934, which established the Exchange Stabilization Fund in the Treasury Department.

If you’re going to invest in precious metals, you need to be consciously aware that you are betting against the solvency of the United States.  The US government will indeed do all it can to defend its currency.  But they are cornered.  The western social-welfare/political-warfare state makes it necessary to debase the currency to keep everyone fat, dumb and happy.  Currency debasement techniques have been tried repeatedly throughout history, yet have always failed.  However, if the government can cast an illusion of prosperity, they’ll stay in power long enough to squeeze every last drop of real wealth from citizens.  That illusion remains in place today as all markets are either propped up or capped in order to keep everyone thinking everything’s fine.

The ongoing saga of precious metals market rigging is documented here.

Jim Rickards on All the Taper Hype: Look at the Data!

Here’s some level-headed thinking from Jim Rickards, who was proven to be correct on his call that the Fed would not taper.  While the Fed would certainly like to taper, they’ve always stated that they would do so on the condition that the economic data continues to be strong.  But the economic reporting has been terrible, so the Fed didn’t taper and won’t until those reports show viable strength.  Jim also discusses what differences, if any, the upcoming Fed-chair change may make (none), gold’s future price expectations (higher) and his new book, The Death of Money (due out in April, 2014).

What Happens WHEN the Big Banks Fail?

Most of us have our hard-earned money deposited in a bank.  So, what would happen if these banks, with their over-leveraged derivatives investments suddenly became insolvent?  Well, the law has already been written and it only needs to be enforced when (not if) these institutions finally fail.  When the crisis hits, the FDIC will be unable to cover all deposits – that insurance is woefully inadequate, capable of covering only 0.25% of all deposits.  As “unsecured creditors,” depositors will end up as stock holders of the failed institution in lieu of their cash deposits.  After watching the following video from, which explains in simple, yet specific legal terms, exactly what rights depositors have, consider yourself pre-warned.