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Old 21-05-2008, 06:01 PM
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Thumbs up Go Theodore!!

Theodore Butler's continued fight against manipulation:

For those who have asked me what to do next, hereís the letter I sent to the Inspector General. For those who wish to remain anonymous, go to the CFTC home page and click upper right on "Contact Us," scroll down to "Office of the Inspector General," click on "report fraud waste" or "abuse e-mail" link, type and send.

Please feel free to reference this letter and interview and you have my permission to use any prior articles of mine in contacting the Inspector General.

May 19, 2008

A. Roy Lavik

Inspector General

US Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st St, NW

Washington, DC 20581

Alavik@cftc.gov

Dear Inspector General Lavik;

I am writing to ask you to investigate what I believe is a serious case of misconduct within your agency. Specifically, members of the Commission and staff are currently and intentionally derelict in fulfilling their obligations to prevent manipulation in markets over which they have jurisdiction.

On May 14, 2008, the Commissionís Division of Market Oversight (DMO) issued a report that re-examined long-term and recent allegations of manipulation in the silver futures market. The report was generated as a result of public articles written by me and found here - http://www.butlerresearch.com/archive_free.html At the heart of my allegations is the issue of a concentration on the short side of the market that is documented in the Commissionís weekly Commitment of Traders Report. The DMOís report concluded no such manipulation existed in spite of the concentrated short position.

My complaint to you about misconduct by the Commission does not solely concern the findings of the report, but the process of the investigation itself. It is clear to me that no fair investigation was intended, nor undertaken because only interviews were taken of short side participants. Neither the Commission, nor the DMO sought input and feedback from those making the allegations, because the conclusion of the report was likely formed before the investigation began.

Even though the investigation took six to ten months to complete, and involved numerous high-level meetings and significant man-hours and expense, because it was conducted unfairly, the issue of taxpayer waste is also an issue.

I respectfully request that you investigate the process of analysis in the report to determine if it was fair and free of misconduct, fraud and abuse, and whether taxpayer resources were, in fact, wasted. If I can offer any assistance, including private commentary between the Commission and myself, please donít hesitate to contact me.

In the interest of full disclosure, I intend to make this letter public and ask those who are interested to contact you as well.

Sincerely,

Theodore Butler
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  #2  
Old 21-05-2008, 08:23 PM
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amadan amadan is offline
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Between Butler and Hommel, I think they've got the shorts running scared. Either that or all of this is going to result in one big whackdown for silver. And current rise could be a bull trap. Lets see.
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Old 21-05-2008, 08:53 PM
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A more through analysis of the Butler/CTFC debate. I'm just going to copy and paste here because it sounded damned intelligent. Althhough I didn't really know what the heck he's talking about in some areas. Posted by 100orbust at the Kitco forum.


The concentrated shorts could be buying for themselves or buying on behalf of another entity. If it were known that the Federal Reserve or US gov't were involved in shorting sales of Silver which they no longer own, to such an extent which resulted in depressing the price of Silver in what is to be a "free market environment", there would be some hell to pay when made public. Otherwise, why have an openly traded forum to reflect prices if certain governments short paper contracts for devious purposes. There could be a dummy account established for this purpose.

Don't try to over analyze CFTC report or TB's rebuttal. The fact of the matter is simple, Silver has the largest concentrated short position in any market at anytime in history. The shorts are naked (no physical silver to protect these sales) and at some point they have to cover. For every $1 rise, it will cost the shorts $400 Million in margin, a move back to $21, another 1.5 billion dollars. The shorts have been losing control and failed to think through the risks involved with such a concentrated position while underestimating the growing strength in PM's.

One other point which Butler has not mentioned, whomever these shorts are, they have likely never experienced a commodity bull market, as it has been well over 20 years since this sector had heated up. I am not dismissing the fact these entities are schooled and well-greased, but by the same token they have had a winning record for 20 yrs and not accustomed to what it is like to be on the wrong side, at the wrong time. They could not have picked a worse market to try and control. The concentrated short position will have the inverse effect on price as the Hunt bros who tried to corner on the long side. The Hunts leveraged too highly and could not meet margin and Silver sold sharply as they had to liquidate their positions, this event helped send Silver spiraling down. The concentrated shorts will have to cover, buy back all those 80,000 contracts. Already we are seeing commercials taking more deliveries as I believe they are coming to the conclusion the end game is near.

At some point, all the shorting of paper will have no effect because there is no physical to back it up and each paper sale at some point has to be bought back. The worst environment possible is having to cover when the market is already in a bull advance. The only escape out of this burning inferno they have created for themselves is through the roof, and that is where POS is headed as well.

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Old 22-05-2008, 01:40 AM
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aurictaurus aurictaurus is offline
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There is another scenario possible: If the naked shorts are really naked, if they cannot cover their positions, then they can default.

Something similar happened in the nickel market two years ago - don't assume that silver will go straight to the moon just because COMEX runs out of the stuff.

There are lots of things that can be done to maintain an artificially low sticker spot price - physical silver in SG is already priced at spot + c40%. COMEX long futures margin limits can be changed to paradoxically force margin calls on players who are actually 'in the money', COMEX short-seller delivery terms can be tweaked to ease the squeeze on them.

In the silver end game, things will get very messy. Keep your eye on the ball: How much silver is available? How many people want it? How much do you have?
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Old 22-05-2008, 03:24 AM
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Agree that in the moment they close down the COMEX, REAL silver will just double in price overnight.

Silver is one of the smallest market on the planet. The real players in this market does not write about it on weekly basis. They do NOT want to move the market with their words.

Just look at the crude price, it's the largest market among all commodities and yet it takes only one research report plus one billionaire speaking to turn it on a dime.

Yes, silver will outperform gold in the next 5 years. Butler and Hommel are catalysts, but the real price movers will never be known.
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Old 25-06-2008, 04:54 AM
xavine xavine is offline
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can someone ban the nopq865?... i hate such spammers
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Old 25-06-2008, 06:33 AM
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Quote:
Originally Posted by xavine View Post
can someone ban the nopq865?... i hate such spammers
I agree. It is the same person sprouting WOW Gold and crap. Like who cares?! This sick person just simply registers as different nicks such as weiwei, nopq865, etc. So every time post is reported our admin deletes, the spammer simply re-registers. This spammer needs to get a life!?
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