Ted Butler Interview

[webmaster]

Subject:Ted Butler Interview
By: Theodore Butler & James R. Cook

Overview: This is the second landmark report by the CFTC in four years, in direct response to my research and allegations of a silver manipulation. That should tell you that the issue is important. Both reports stated there was no problem in the silver market and questioned my motives. Both reports implied silver was fairly priced.

Link: http://news.silverseek.com/TedButler/1211293587.php

[Walter Hunt]

I really believe that these gentlemen at the CFTC and the OIG will just continue to blow you off until such time that they receive a letter from a legal firm that formally charges them (the CFTC) with not performing their oversight duty in a legally acceptable manner.

These guys at the CFTC are extremely bright, have extensive high level connections, and will vigorously defend the 8 parties that have concentrated short positions in silver that clearly violate CFTC rules and regulations.

There must be a legal firm out there that would take up this case, research it extensively, thoroughly understand the issues, and be able to clearly demonstrate the types of violations that have been occurring, and the extent to which the rules and regulations are being violated.

There has to be a persuasive legal threat to the on-going activities of the super-shorting entities, and the CFTC itself, before they will take any action to shut down the endless on-going hyper-shorting of the silver market.

The attorneys will have to demonstrate that the extreme shorting activities of the 8 entities has the intent of suppressing the price of silver, why they are doing this, how they profit from it, and why it unfairly interferes with a natural supply and demand driven market.

One area that has not been mentioned either by Ted Butler, or in the recent CFTC report, is precisely how the spot price of silver is actually determined from moment to moment. What formula is used to perform the price calculation, and who are the people that run the numbers? How exactly are futures prices factored into the spot price, and has anyone ever examined or questioned just exactly how the process works? Is there potential for manipulating the pricing mechanism?

My bottom line concern is that until there is the threat of legal action, the CFTC, and more than likely the OIG also, will continue to shuck and jive you with endless defensive posturing.

[mls56]

Originally Posted by Walter Hunt

I really believe that these gentlemen at the CFTC and the OIG will just continue to blow you off until such time that they receive a letter from a legal firm that formally charges them (the CFTC) with not performing their oversight duty in a legally acceptable manner.

These guys at the CFTC are extremely bright, have extensive high level connections, and will vigorously defend the 8 parties that have concentrated short positions in silver that clearly violate CFTC rules and regulations.

There must be a legal firm out there that would take up this case, research it extensively, thoroughly understand the issues, and be able to clearly demonstrate the types of violations that have been occurring, and the extent to which the rules and regulations are being violated.

There has to be a persuasive legal threat to the on-going activities of the super-shorting entities, and the CFTC itself, before they will take any action to shut down the endless on-going hyper-shorting of the silver market.

The attorneys will have to demonstrate that the extreme shorting activities of the 8 entities has the intent of suppressing the price of silver, why they are doing this, how they profit from it, and why it unfairly interferes with a natural supply and demand driven market.

One area that has not been mentioned either by Ted Butler, or in the recent CFTC report, is precisely how the spot price of silver is actually determined from moment to moment. What formula is used to perform the price calculation, and who are the people that run the numbers? How exactly are futures prices factored into the spot price, and has anyone ever examined or questioned just exactly how the process works? Is there potential for manipulating the pricing mechanism?

My bottom line concern is that until there is the threat of legal action, the CFTC, and more than likely the OIG also, will continue to shuck and jive you with endless defensive posturing.

You are right, but finding them is a question you have to ask yourself? Will they work Pro Bono, because they care about our free markets, or are do they care about small investors, or would they like to hang some big time Goverment by the yang yang? It would be great for a well respected, Law Firm, step up to the plate, but then, will be they get destroyed by G men tactics? I ask you, what group has played havic, on cities about the 10 Comandments, Xmas, race, you name it, they seem to find something to make Goverment inities feel pain, be it local, State or Federal! I have never like them, they are so far out in left field, way out, but they love to get in the Goverments Face! You know who it is, so put your 2 cents back in & lets move forward. I am doing as Ted said, my Reps have been warned, but there has been no action, they may be looking into price fixing in other commodities, oil & gas, but Silver & Gold, we may need to go to extremes, do as Ted said, then let it float about, & keep buying all you can afford, but don't get into debt buying.!!
Oh no, it's the ACLU, Godzilla!!!!

[mick silver]

why not if he ask , all the silver bug give a little cash from all of us to help him fight this , there are a lot of silver bug out there , this would help us all , this is not just his fight it all of ARE

[mick silver]

like i said with some help from ALL THE SILVER BUGS ARE DREAM MAY COME QUICKER.: THE QUICKENING MAY be already on, THANKS JESTERJAY FOR THAT ONE

[TechGnosis]

Originally Posted by webmaster

Subject:Ted Butler Interview
By: Theodore Butler & James R. Cook

Overview: This is the second landmark report by the CFTC in four years, in direct response to my research and allegations of a silver manipulation. That should tell you that the issue is important.

Link: http://news.silverseek.com/TedButler/1211293587.php

To the extent that it is desirable that the public know about this manipulation and understand it, to that extent it also seems important to keep up to date the Wikipedia entry on Silver as an Investment, where it says "The CFTC publishes a weekly Commitment of Traders Report which shows that the four or fewer largest traders are holding 90% of all short silver contracts. This level of concentration is unprecedented in any commodity and should arouse suspicion. Furthermore, these four or fewer traders are short a total of 245 million ounces (as of April 2007), which is equivalent to 140 days of production. ]"

It would be a simple matter to edit this entry to reflect the current situation, and indeed to use the Wikupedia article as a method of keeping the truth out in front.

[Gino]

The things I take out of Mr. Butler's interview are:

1) There are very few people betting on a slide in the price of Silver, despite all the big banks and investment houses screaming that the price is going to crash this year. I had missed this important point before when he had talked about the significance of the concentrated position previously.

Here's a quote from BNP Paribas Commodity Review from March 31 this year . . .

"Silver should average $15.45 in 2008, losing steam as the year advances and average $11.70 in 2009"

This surely is a Mogambo Moment (MM) and deserves an hysterical "HaHaHa."

The correction is over and all eyes are fixed on $20! These guys are toast if they can't cancel their contracts.

2) I really don't understand the nature of futures trading very well and must be one of the people who find it confusing as hell.

How do you legally sell something you don't own? Apparently it works because, as a contract buyer, you don't know the seller doesn't own the commodity. But that's why the regulator's are necessary, to ensure honesty in the trading process. While I understand a need for legitimate users of a commodity to secure future supply through contracts, none of it make's any sense to me in terms of a speculator's game. They must be aspiring Bankers!

3) Neither do I understand how trading in contracts for future supply effects the current spot price.

[silverbuggy]

there is nothing wrong going short (aka selling short)...is it wrong to go long (buy)?

[Skid]

Originally Posted by Gino

The things I take out of Mr. Butler's interview are:

1) There are very few people betting on a slide in the price of Silver, despite all the big banks and investment houses screaming that the price is going to crash this year. I had missed this important point before when he had talked about the significance of the concentrated position previously.

Here's a quote from BNP Paribas Commodity Review from March 31 this year . . .

"Silver should average $15.45 in 2008, losing steam as the year advances and average $11.70 in 2009"

This surely is a Mogambo Moment (MM) and deserves an hysterical "HaHaHa."

The correction is over and all eyes are fixed on $20! These guys are toast if they can't cancel their contracts.

2) I really don't understand the nature of futures trading very well and must be one of the people who find it confusing as hell.

How do you legally sell something you don't own? Apparently it works because, as a contract buyer, you don't know the seller doesn't own the commodity. But that's why the regulator's are necessary, to ensure honesty in the trading process. While I understand a need for legitimate users of a commodity to secure future supply through contracts, none of it make's any sense to me in terms of a speculator's game. They must be aspiring Bankers!

3) Neither do I understand how trading in contracts for future supply effects the current spot price.

Yea, the same thing happens in the stock market. A trader borrows someone elses shares, sells them and if all goes right buys them back later at a lower price. Seems like thievery to me.

A better question, is how can they short more silver than is even available for delivery? Too bad the longs don't take delivery instead of settling in cash.
That is the nature of the cheat though, trying to control something you don't own.

[7nomads]

From Article

Butler: Investors might be interested to know that on the day the 2004 report was released, May 14, the price of silver closed at $5.55. It never went lower than that, not even for a day, and subsequently climbed to around 4-fold that level earlier this year, greatly rewarding investors who saw through the Commission’s arguments

IMVHO

The New Denial Report May 14 2008. Price of silver around 16.60 (5/15), if we don't drop below that all this summer, then look for that 300% increase and then we'll wait for the NEXT REPORT.

I figure went they get it right it will be time to sell or trade.