Life After Bear Stearns

[webmaster]

Subject:Life After Bear Stearns
By: Theodore Butler

Overview: As most longtime readers know, my prime objective has been to end the silver price manipulation. It still is. Secondarily, I have consistently advocated the ownership of physical silver on a long-term basis by individual investors, AKA, "the little guys." Today, I’d like to direct this silver message to large investors, both extremely wealthy individuals and institutional investors, since these were primarily the types of investors that Bear Sterns serviced and advised.

Link: http://news.silverseek.com/TedButler/1205864199.php

[waynetheking]

Fantastic insight. Thankyou for posting!! I learn more and more every time i vist this site!!

[Kelly]

Ted Butler is one of the brightest guys around.

I found his comments that he saw two probable clear signs of a physical silver shortage taking place very interesting. In contrast, Dave Morgan who is also another big silver investment writer says that he definately sees signs that the shortage has terminated and mining is finally keeping pace with the industrial demand, so that's two very different opinions.

I think it is Butler that may prove more likely to be correct. Last year I read an article that said that most silver mined today is mined as a by-product of zinc and lead mining. The article talked about how the vast majority of silver mines in America have closed down but not because the silver isn't there; they've closed down because the silver veins are so deep under ground and hard to get at, it will not be profitable to mine until silver hits at least $30 an ounce.

That figure really stuck in my head. Basically that means that when silver does take off like a rocket, those of us who are invested can be reasonably sure that if it drops again, it will never drop as low as it did after it peaked out in the 80's. Silver, like oil, is a finite needed product. Like oil, we've already reached peak silver. Once it flies this time, I doubt seriously if silver will ever drop below $30 again because it is absolutely necessary as a military-industrialist commodity.

[peri1224]

A friend of mine who runs a small refinery in South East Asia held 800 kilos of silver for several months. His usual buyers in the Hong Kong area wouldn't take it because the refineries there are too full with tons of silver pouring out of China. He finally had to ship to Europe and pay the freight.
As a long time holder of silver I would love Ted's scenarios to finally become reality, but stories like the above make you wonder what the real score is.

[Matt]

I think Teds intuition is pretty close to the mark. I have a reasonable quantity of silver in unallocated storage at the Perth mint. After reading Teds articles regarding the best way to hold silver I decided it was counterproductive to mine and every other silver investors interest to have a paper holding.
I commenced the process for physical delivery of this bullion and was surprised to find out through my dealer that the perth mint did not have any 1kg silver bars to process the delivery for better part of a week. Then when this time elapsed they still did not have it and I am still waiting. I strongly suspect that my money has not been used to purchase silver when i initially invested and/or there is a shortage of silver as a result of recent demand.

Furthermore when I initially enquired about physical delivery a couple of months back they tried to talk me out of taking physical delivery as I would be forced to pay a 6% handling charge if I wanted to sell it back to the mint.

On the face of it nothing terribly wrong with all this but it does have a bit of an odour about it. Reading Teds article made me realise how much is at stake with the big boyz and I am more tuned to the game now. More confident than ever in my investment. Good work Ted...I for one am very appreciative.

[pkrebaum]

The gold and silver markets have displayed non-classical behavior (i.e. a disconnect between price, supply, and demand) for decades. As Ted Butler (in silver) and GATA (in gold) rightly assert, market manipulation is the only
logical conclusion. As he has done many times in the past, Ted laments: " I don’t know how the regulators at the CFTC and NYMEX can live with themselves for allowing this obvious manipulation to continue."

But then he adds an extra thought provolking "Tedbit": "And it is shameful to think the government regulators swore an oath to uphold the law." Remember the old adage "if you're not part of the solution then you're part of the problem" ?

The only logical conclusion I can draw from the continued failure of the CTFC to resolve the problem is that they are part of it, i.e. in cahoots with the shorts.

Continuing with the working thesis that the CTFC is in cahoots with the shorts the following should be asked:
1) who at the CTFC, or friends thereof, might benefit from the huge short situation ?
2) how would they benefit (graft, stocks, political contributions, junkets to exotic places) ?
3) is there a money trail that can be followed ?

Ted, can you help us out with answers to any of the above questions ? Or is this thesis totally without merit ?

Sincerely,

pkrebaum

[silverlight]

Originally Posted by peri1224

As a long time holder of silver I would love Ted's scenarios to finally become reality, but stories like the above make you wonder what the real score is.

Do you mind discussing further some of the refineries in China? Have you discussed this with Ted through email? No offense but it would be a little easier to believe if we could confirm it ourselves. Unfortunately I don't have any 'connections' at Chinese refineries so I don't have a number of people to call that could confirm this.

[chux03]

This is the part I like and is the main reason I ALWAYS knew silver is...going UP!!
Great author with insights gained nowhere else...


"The main difference between the gold and silver is that silver is the better value on the true fundamentals. The world doesn’t have to end for silver to climb in price. Nor does the dollar have to collapse. Nor must there be inflation, deflation, turmoil in the financial system or a fight to quality. If, unfortunately, those circumstances occur, silver should do fine. But all that has to occur for silver to quadruple in price again, just like it has already quadrupled, is for time to pass and more people recognize its true fundamentals and for the manipulative short position to be resolved. This will happen regardless of changing conditions."

Looks like a good downward dip in today's spot price of $18.30.

ANYBODY BUYING SILVER TODAY??

[Kelly]

3) is there a money trail that can be followed ?

Yep. I supect you can follow the money trail directly to the Bankers in London and New York that own the Fed.

The shorts aren't coming out of the Hong Kong market, they are coming out of London and New York. It is ultimately the Fed who would have the most to lose if silver and gold went through the roof.

Think about it. The Fed has been trying to "demonitize" silver and gold since the Fed was established.

Please folks, never forget that the Fed is a privately owned bank and we are not even supposed to know who owns it. There is a lot of good research out there however, and to date, the list of who REALLY owns the Fed is as follows:

1. The Rothchilds
2. Lazard Freres (Eugene Mayer)
3. Israel Sieff
4. Kuhn Loeb Company
5. Warburg Company
6. Lehman Brothers
7. Goldman Sachs
8. The Rockefeller family and J.P. Morgan interests

My bet is it's these guys, and NOT the Chinese, who are working to keep the price of silver depressed. They don't have to worry about meeting their margin calls; they own the priniting presses.

[Kelly]

The above list is nearly exactly duplicated by yet another independent Fed researcher who claims it is the following banks who own the Fed...

1. Rothchild Banks of London and Berlin
2. Lazard Brothers Bank of Paris
3. Israel Moses Sieff Banks of Italy
4. Warburg Bank of Hamburg, Germany and Amsterdam
5. Kuhn Loeb Bank of New York
6. Lehman Brothers Bank of New York
7. Goldman Sachs Bank of New York
8. Chase Manhattan Bank of New York (Controlled By Rockefellers)



Doesn't anybody besides me find it curious that Ted Butler claims there are only eight big players manipulating the silver market? And any way you look at it, the Fed researchers are very aware that there are only eight major players that really own the Fed?

Funny thing about that.... Coincidence? Oddly enough the first four players on this list would be operating out of the London Market, and the last four players on this list would be operating out of New York, and London and New York just happens to be where all the Big Shorts are coming from.

I ceased believing in coincidences years ago.