Allison Bricker

U.S. Government Complicit as Whistleblower’s Evidence on Silver Manipulation Ignored by CFTC

NEW YORK, NEW YORK – Precious Metal Commodity traders from J.P. Morgan’s [Chase] investment bank are using the bank’s massive market share to periodically and in an artificial manner, drive down the price of silver via shorts. This allows the House of Morgan to buttress their physical Silver reserves, as according to some current estimates silver is leveraged at a rate of 100 to 1, meaning that for every ounce of actual silver, there exist 100 paper claims, in a manner similar to the practice of fractional reserve banking1. Moreover, it allows the House of Morgan to reap additional massive profits off the backs of those caught outside of the short-loop in silver, but even this is not the endgame.
The Smoking Argus is currently awaiting a return call from Mr. Brian Marchiony who is the J.P. Morgan Media Relations contact as of this writing.
Consequently, the House of Morgan gained this massive position in silver as a result of the New York FEDERAL RESERVE rescinding the original offer to provide a collateralized loan to Bear Stearns in favor of a non-recourse loan based on Bear Stearns assets to J.P. Morgan, orchestrated by then New York FED bank President, Tim Geithner. This taxpayer-funded fire sale in March of 2008 resulted in the House of Morgan obtaining all the liquid assets of Bear Stearns and shielded J.P. Morgan’s assets from seizure should the toxic mortgage debt assumed by the taxpayer on behalf of the FEDERAL RESERVE default.2
Fellow readers, it should be easy to recall that during the height of the Bernie Madoff Ponzi scheme, people wondered just how one man was able to defraud his clients for a period of over 10-years without so much as a whimper from government regulators. However, upon a more thorough investigation, testimony surfaced that the Securities and Exchange Commission [SEC] was indeed aware of Mr. Madoff’s ruse as it was warned by former industry executive, Mr. Harry Markopolos a decade prior, but chose not to act upon the information provided.3
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“Those who cannot remember the past are condemned to repeat it.”
George Santayana
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Relying on this widely accepted fallacy that government regulation ensures a level playing field and that mistakes are only the result of the “wrong” party being in power, the House of Morgan now looks to escalate the fraud to an entirely new level via its manipulation of a market in the Trillions of dollars. As now comes the case of wealthy London Commodities trader turned whistleblower, Andrew Maguire. Mr. Maguire has uncovered and documented evidence of what will go on to become the largest fraud in human history utterly eclipsing Mr. Madoff, aided yet again by a deafening silence from government.
Beginning in November of 2009, Mr. Maguire notified the Commodity Futures Trading Commission [CFTC] that the House of Morgan was utilizing its taxpayer-funded position in the Silver market to cover and flush its ETC holdings via signaling its traders of the London Bullion Market Association to sell short en masse thereby causing a precipitous drop in price.
The CFTC for those not familiar with this particular alphabet soup agency is an agency of the U.S. government formed in 1975 tasked to investigate and prosecute fraud in the commodities market. Its current chairman, appointed by President Obama is Gary Gensler, who surprise, is yet another Goldman Sachs crony bequeathed a seat of power within our government.
Nevertheless, hoping to offer additional proof so as to solicit some sort of action regarding the Morgan scheme, Mr. Maguire again contacted CFTC Senior Investigator Eliud Ramirez on February 3rd, 2010 to outline the then forthcoming short sale of sliver to take place through to Friday, February 5th upon release of the January unemployment report. As that Friday’s price drop began just as predicted and growing impatient with the lack of a response, Mr. Maguire drafted additional emails in real-time urging the CFTC look into the short sell orders, yet all that he received in return was silence.4
Finally, after threatening to go public with the information given to the CFTC, Mr. Maguire received a response from Senior Investigator Ramirez, which stated:
“Thank you so very much for your observations.”
Eliud Ramirez, Senior Investigator
Commodity Futures Trading Commission
February 9th, 2010
Shortly thereafter he was removed from the witness list to testify before the CFTC and on March 23rd, Mr. Maguire contacted Adrian Douglass of the Gold Anti-Trust Commission [GATA] a private citizen’s action group to solicit their help in blowing the whistle on Morgan’s manipulation of the commodities market. Thus, as Mr. Bill Murphy Chairman of GATA prepared to testify before CFTC commissioners on the systemic problems in the futures commodity market, he revealed Mr. Maguire’s name and portions of his email communications with the CFTC into the record.
[See VIDEO]
When pressed by Commissioner Bart Chilton, who himself was included in the original email communication between Andrew Maguire and the CFTC to provide a specific example of fraud within the market, GATA Chairman Murphy opened the floodgates citing the warning provided to the CFTC by Mr. Maguire regarding the February 5th silver manipulation. Somewhat flustered, Commissioner Chilton then remarked:
“Alright, okay, well that’s more specific than I anticipated.”
Commissioner Bart Chilton
Commodity Futures Trading Commission
March 25th, 2010
The following day with his name now in the public as a whistleblower, Mr. Maguire and his wife were involved in what has been reported as a “bizarre” car accident. Whereby upon their return home from shopping, a car sped out of a side-alley and rammed their vehicle sending both Mr. and Mrs. Maguire to the hospital. Witnesses to the accident attempted to block the suspect, but had to dive out of the way themselves when in an attempt to make a speedy getaway, the suspect almost hit them along with several other parked vehicles on the road. Police in London, then took to the air and finally apprehended the suspect, but as of this writing are still refusing to release any names. Mr. and Mrs. Maguire were released from the hospital the following day and are expected to make a full recovery5.
Also as a result of Bill Murphy’s testimony before the CFTA and following the Maguire car accident, multiple old-media outles cancelled interviews with Mr. Murphy as the story was becoming far too hot to handle and perhaps its implications all too foreboding. However not all was lost, Kingworld Media, who broke the Madoff Ponzi scheme secured an interview with both Andrew Maguire and Adrian Douglass of GATA to assist in spreading the word to the public regarding the consequences of the House of Morgan’s material fraud.
Thus, just what is the endgame of such a massive level of fraud and manipulation? Quite simply the suppression of silver and the larger gold market serve to help retain a strong dollar and thus allow the FEDERAL RESERVE, of which J.P Morgan is a shareholder, to continue printing money whilst keeping a lid, at least in the short-term, on runaway inflation. Whether exposed by continued reporting by the New-Media, i.e the blogosphere or by a naked short squeeze, this house of cards shall too fall, just as the mortgage bubble. However, the consequences are of a far greater nature than any previous financial scheme foisted upon the American people.
It is most unfortunate indeed that we are witnessing the literal fleecing of our economy, with the gatekeepers in government put in place to protect markets and consumers against fraud, are merely the sycophants and beneficiaries of the private central bank. Further, it should be no surprise that the servants to the Central Bankers, i.e. Senator Dodd has insulated the FED even further by removing any semblance of a true audit from his “financial reform bill” which of course just renders even more power unto the corrupt 3rd Central Bank of the United States.
Fellow readers, we must continue to work towards excising this parasitic cancer entwined into our system by ending the FEDERAL RESERVE and returning our Republic to sound money in lieu of the useless paper fiat we now so rely. Until this occurs, it will matter not which puppet-in-chief inhabits the oval office as both major party candidates are routinely funded by the very banks that are leeching this Republic dry.
The cost of inaction is to pass on a nation to our children and the larger posterity, a dead carcass utterly resembling nothing of which we knew as children or what the Founding Generation sought to construct. Should we choose the path of least resistance and instead prefer the noxious repugnant odor of apathetic distraction, then and only then will we truly deserve the title of the lost generation. Thus, the question you have to reconcile; is whether peace and contented conformity is so sweet as to be purchased at the price of chains and economic servitude?
Source(s): 1Kingworld Interview Andrew Maguire and Adrian Douglass march 30, 2010 • 2Washington Post “Fed Takes Broad Action to Avert Financial Crisis”, By Neil Irwin and David Cho – Monday, March 17, 2008 • 3Digital Journal “Markopolos: SEC knew about Madoff operations 10 years ago By Chris V. Thangham. Feb 5, 2009 • 4 Email Correspondence between Andrew Maguire and CFTC, originally obtained by GATA • 5New york Post “JPMorgan ‘chase’ story in UK” By MICHAEL GRAY March 29, 2010 •