A Modest Proposal

[webmaster]

Subject:A Modest Proposal
By: Theodore Butler

Overview: If there has been one issue which I have focused more on than any single issue over the years, it has to be short selling in silver related investment vehicles, primarily the concentrated short selling in COMEX futures, and more recently, the naked short selling of the shares of the silver (and gold) ETF’s. Naturally, I was very interested in the just announced emergency order by the Securities and Exchange Commission (SEC), temporarily restricting naked short selling in selected financial stocks.

Link: http://news.silverseek.com/TedButler/1216656959.php

[cassowary]

It could be a new record!

First of all, hurricane doing what it was supposed to be doing. Fourth-named storm, second hurricane, increasingly troubling weather pattern over Africa. Virtually EVERY hurricane forecaster of note believes this may be a horrendous hurricane season. If the Oil shorts are going to camouflage that fact with game-playing day-by-day, that's fine. But no one is believing a word they say.

Second, there seems to be a total news blackout on this Amaranth-like options fund failure. But when it is sorted out truthfully, like Amaranth, you can bet that said fund first got into trouble going too SHORT commodities, not too long.

Third, as in the period that exactly mimics this one, late Feb-early March 2007. Brent already two or more dollars above US crude, as opposed to the historical three dollars below. In that March 2007 period, record was set under similar circumstances, with Brent at one brief point four dollars above US crude, a silliness gap of seven dollars from historical means. And as now, hedgie failing under clouded circumstances and so-called "professionals" 99 percent SHORT Oil, not the opposite, and making use of horrid double-short derivatives across the energy complex.

This behavior, nothing else, really caused the Ninnies to lose control of commodities across the board. THEIR fault, not anybody else's, certainly NOT the Long Side's fault!

Now to geopolitics:

Chavez in Russia, Russia cheerfully giving him new arms deal.

Iran says significant new Oil find today.

Another terror attack in Israel right before Obama's arrival, not even mentioned on Bubblevision. Which is extraordinary.

Morales's helicopter crashes. Not hurt, but let us pray they don't suspect sabotage.

Lebanon-Syria meeting.

Renewed fears about terror in China.

And Merkel rebuffing Ukraine joining Nato, commenting out loud that Russia still holds the purse strings, as it were, on the EuroZone's energy supply.

I'm getting sick of this perpetual game-playing with commodities, as I'm sure you all are.

But many, many glimmers of hope.

[cassowary]

It is high time ALL commodity longs worldwide - which includes, of course, a whole lot of COUNTRIES - took up the cry that currency trading and commodity trading should be separated at the hip once and for all by trading all commodities, including gold and silver, against fair, neutral baskets of currencies.

The US dollar is no longer the world's reserve currency and no longer the world's trading currency.

It is one among many.

Let currencies trade against each other.

But let commodities trade against fair, neutral currency baskets.

For all we know, this may help darling dollah - or not.

But it's the REAL way out of this financial mess, because it would separate out the purely geopolitical considerations skewing both currency and commodity trading.

Somebody besides me has to start discussing this concept.

And I think they will!

[DaveG]

Bravo, Ted. Your argument for banning short sales of stock is impeccable. Particularly the corporate governance angle where both purchaser of a shorted stock and lender can vote as shareholders.

I'm distressed that no one else on this thread has even addressed the issue though. It is a big a deal and drills down to the very heart of the system we participate in - at its core, fraudulent.

One alternative solution to an outright ban on short sales - all non-registered shareowners can opt out with their broker to not allow shares in their accounts to be lent. Can we demand it? It is worth a try.

[DaveG]

FYI: TD Ameritrade and TD Waterhouse do allow clients to opt out of any share lending that facilitates short sales. Not sure if other brokers offer that.

If you feel this issue is a big deal, contact your broker and make it so!!

[skijake]

Originally Posted by DaveG

Bravo, Ted. Your argument for banning short sales of stock is impeccable. Particularly the corporate governance angle where both purchaser of a shorted stock and lender can vote as shareholders.

I'm distressed that no one else on this thread has even addressed the issue though. It is a big a deal and drills down to the very heart of the system we participate in - at its core, fraudulent.

One alternative solution to an outright ban on short sales - all non-registered shareowners can opt out with their broker to not allow shares in their accounts to be lent. Can we demand it? It is worth a try.

I don't think you have to be a X-Filer to believe that there are some pretty strong forces that are stacked against any such proposal unless it benefits them. The manipulation will crumble from its own unbalanced weight but as usual there will be many casualities. Speaking of manipulations it strikes me as odd that the Big Boys haven't wrapped all their finacial garbage into some sort of stock offering that once in place they could get a law passed that would make it illegal to go down in price, only up. Then force all business owners and employees of any non govermental agency to buy the stock as part of their retirement savings. Weeeeee!!!!!

[nuslvrkwen]

The COOL thing about naked short selling: All of it has to take place on corporate trading equipment. Run by central bank. The SEC warning on the oil shorts told them (through the press) that trading companies, meaning banks' trading patterns would be investigated! Just like what the IRS is supposed to be doing with checking up on people who spend large amounts of money to buy PMs.

This is almost like the LIBOR investigation that wasn't. But the thought the place you work for could get hit with fines and jail terms for the traders had a positive effect of bringing down the price of oil. The same government agency has for years DENIED naked short trading was happening; let alone happening in metals.

How much are you willing to wager PM investigation of naked short selling gets diverted to something else? Corporate banks don't want to admit they use short selling to get funding.