Super Concentration

[webmaster]

Subject:Super Concentration
By: Theodore Butler

Overview: In spite of the recent reduction in the number of contracts held short in the commercial category, the true concentrated short position held by the largest traders in COMEX silver and gold, in percentage terms, has reached a dramatic new level.

Link: http://news.silverseek.com/TedButler/1208285314.php

[FedFixNix]

It should be obvious to all that these traders are crooks. Period.

Quote:

Look, I understand that these concentration calculations of mine cause most people’s eyes to glaze over, no matter how simply I try to present them. But they shouldn’t cause the regulators’ eyes to glaze over, even if I am the only one raising the issue. This goes to the very heart of manipulation and market integrity. There can be no issues more important.

Concentration is at the heart of every manipulation. There can’t be a manipulation without a concentrated position. The root cause of every manipulation throughout history has been a concentrated position. Therefore, clear evidence of concentration should raise regulatory awareness and attention to the highest levels possible. What evidence could be clearer than source data from the regulator itself?

The threat to market integrity is equally clear. Integrity is all about being truthful, open and fair. A large, uneconomic and concentrated market position distorts the price and the market itself, especially when concentrated position holders are allowed to hide their identity. It is the antithesis of the qualities of a free market.

Ask yourself this - how could 8 or less traders holding 80% of an entire major market not be manipulation, in and of itself? And considering the collusive and dirty tricks these big traders regularly pull off, how could their motive be economically legitimate? Further, if it turns out (and the CFTC has certain current knowledge of this) that the big 8 shorts in COMEX silver are largely, or identically, the same as the 8 largest shorts in gold, then it should be obvious to all that these traders are crooks. Period.

[silverbuggy]

the big short positions are bad but i have read other articles in which it was suggested that the COMEX may just write those short positions off without the necessity for the short holders to cover.

[prahudka]

Originally Posted by silverbuggy

the big short positions are bad but i have read other articles in which it was suggested that the COMEX may just write those short positions off without the necessity for the short holders to cover.

This is, however, a small enough market that maybe the little guys can get some leeway. Folks like us and industry would be scooping up all available metal to stockpile while the price is too cheap. This is how a crisis happens.

Look at what is not happening: we are not selling. If the smelters want metal, they better offer something above $30.00 an ounce. And even then I probably wouldnt.

Similarly, there was speculation by either Butler or Morgan that some big money was starting to come in on the other end of these short trades. That would change things if they got screwed.

Not sure Comex can provide a backstop forever.

Frankly, much of this article I don't understand.

Is he suggesting that part of the dishonesty is the same shorts coming in on the other side as the long to create an illusion of trade that never happens?

Seems if you are an industry that needs silver, you are hoarding now, big time and there is very little anyone can do to pry the silver loose. If you are a miner, I would guess you might do the same thing and say "screw Comex, make me sell you my silver."

At some point supply should disappear because of dishonesty, creating a bigger crisis.

[mikeck]

As usual Mr. Butler has made some great points, but I think he overlooked an important issue.

I had silver stored at a company that I trusted and now the silver is gone...I still trust the company, Liberty Dollar, because it was not they who stole my silver.

My silver was taken over five months ago, by criminals, and still has not returned. Yes, the criminals were our government servants. They still have not filed any criminal charges...the obvious reason being that there were no crimes, but that did not stop them...nothing, in view, is safe when they are on the prowl.

My reason for this post is to point out that just because an ETF has serial numbers of the bars does not mean your silver is safe...yes, your silver may well be there, but it is not safe from our criminal government. The ETFs just make it more convenient for them to steal your property whenever they decide they want or need it...they won't have to visit everyone and search their houses and dig up their back yards.

In Liberty,
Mike

[FedFixNix]

My silver was taken over five months ago, by criminals, and still has not returned. Yes, the criminals were our government servants. They still have not filed any criminal charges...the obvious reason being that there were no crimes, but that did not stop them...nothing, in view, is safe when they are on the prowl.

I hope you and everyone else here realize that our government is a representative one, and only as good as those we elect to represent us. It is the Fed and the international central bankers and financiers who have spent a century or two corrupting our government.

We could elect better, more reform-minded reps, but we don't because we are potty-trained not to do so. The Fed must go, and people must take back the control of both our money and our government.
"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance." President James Madison

"The Federal Reserve Bank of New York is eager to enter into close relationship with the Bank for International Settlements....The conclusion is impossible to escape that the State and Treasury Departments are willing to pool the banking system of Europe and America, setting up a world financial power independent of and above the Government of the United States....The United States under present conditions will be transformed from the most active of manufacturing nations into a consuming and importing nation with a balance of trade against it" - Rep. Louis McFadden, (Chairman of the House Committee on Banking and Currency) quoted in the NY Times (1930); there were at least two attempts on his life... he died of suspected poisoning after attending a banquet

[FedFixNix]

Originally Posted by silverbuggy

the big short positions are bad but i have read other articles in which it was suggested that the COMEX may just write those short positions off without the necessity for the short holders to cover.

Which, of course would only be far worse, as it would mean collusion in the market manipulation at even higher levels.

How can they possibly just "write off" contracts without covering? The longs have to be paid or delivered.

[Kelly]

We could elect better, more reform-minded reps, but we don't because we are potty-trained not to do so.

Now wait a minute, FedFixNix. As I recall the American public did NOT vote the present diabolical despot into office for a second term. G. Dubya did not win the majority of the public's vote. What put him into office was the Electoral College vote, which is, in my opinion, a hopelessly outdated institution that needs to be done away with. Oh, and lets not forget some very crooked election counts going on in Florida! Were the "potty-trained" people responsible for that, or did the guilty party just happen to be the preseident's brother?

Furthermore, of the present list of today's presidential candidates there is not one single person on that list that I think possesses the qualities of someone capable of leading this country out of the trouble we are in. Every last one of them is a puppet for the Council on Foreign Relations, which is primarily a body of "movers and shakers" who have quite apparently sold their souls to the Fed.

Today, it is not the people who are qualified to lead that enter the big political races. What apparently qualifies them is their ability to buy air time on the boob tube and their ability to fund a campaign. I would like to see people running based upon their intelligence, their empathy with the common man and woman, their compassion for others and their ability to lead and think on their feet rather than how much money they can raise from the fat cats.

We are never going to have good people running for office until this country makes some drastic changes to the WAY people get elected in the USA. The press manipulates public opinion in elections, that much is clear, so not only do we have candidates running that are controlled by the CFR, we also have a press controlled by the CFR.

It's not the people who have been "potty-trained," it's actually the candidates and press who best meet that description.

[Kelly]

My silver was taken over five months ago, by criminals, and still has not returned. Yes, the criminals were our government servants. They still have not filed any criminal charges...the obvious reason being that there were no crimes, but that did not stop them...nothing, in view, is safe when they are on the prowl.

What exactly happened, Mikeck? Please tell us all, so that other's can avoid the same thing happening to them.

Whatever it was, I am sure sorry it happened to you. I'd be feeling pretty bitter and angry about it had the same thing happened to me...

And welcome to the forum, too.

[b3nnyboy]

Hi, I was very interested to read Ted's article but it brought up again some of my recurring questions.

Firstly who are these 4 to 8 largest position holders (Ag, AU, long and short)? And how can one find out this information?

I have briefly looked at the COT reports before but only saw a summary of the total contracts in the various categories. Maybe I am not looking exactly where the detailed information is. How can one find out how many contracts are held by any one organisation? Is this reported at all?

Thanks, Ben.