Market manipulation stories in the news - How widespread?

[WhiskeyGirl]

Andrew Maguire & Adrian Douglas: Discuss What Could Be the Largest Fraud in History - Andrew is an independent metals trader turned whistleblower at the center of a storm for exposing what could be the largest fraud in history involving countries, banks and government leaders. Adrian Douglas Board of Director from GATA, the man who Andrew reached out to joins in this interview where they discuss a fraud so extraordinary and so unimaginable that it is the kind of thing that only happens in hollywood thrillers. They also discuss the CFTC sponsored meeting on metals which was an unmitigated disaster because it additionally exposed the fraud on a grander scale.

 

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/3

[WhiskeyGirl]

But the idea of remaining inactive brings us in a roundabout way to emails we receive some weeks ago from several Money Morning readers. They were emails alerting us to the US Commodity Futures Trading Commission (CFTC) hearings into “Futures and Options Trading in the Metals Markets.”

The main concern expressed by the readers was the apparent manipulation of the gold and silver markets by traders at two major banks.

As you can imagine, that certainly pricked our ears.

The only problem was finding the time to carefully look through all the info rather than just flying off the handle without thinking… You’re not laughing are you?

Anyway, as I was saying, we were trying to find the time to go through as much of the information as possible. So, yesterday evening we settled down to start watching the five hours, thirty-four minutes and thirteen seconds of hearings held on 25th March.

And it was from the hearing that we gained the first quote we highlighted above: “It takes great courage in a time of crisis to do nothing.”

As we say, we like it. In fact, we liked the whole presentation made by Dr. Henry G. Jarecki of Gresham Investment Management. I’ll tell you why in a moment.

The main reason readers brought this hearing to our attention was because of the alleged market manipulation. Accusations have been made by a London based trader called Andrew Maguire who claims that two banks in particular – JPMorgan and HSBC have such large positions in the market they are able to manipulate the price of gold and silver to suit themselves.

What I quickly discovered is that if I tried to get even my large head – but small brain – around the full issue, we’d still be here in 2050. So, rather than give you the full lowdown I thought it best to give you a summary of our thoughts and then let you look at all the evidence for yourself.

So, for starters, you can check out the full video of the CFTC hearing by clicking here. And then click on ‘View Archived Webcast.’ Remember it’s over five hours, so it’s probably best to watch it during work hours so you’re not wasting any of your own valuable leisure time!

But Maguire went one step further. Several days prior to a predicted ‘takedown’ of the silver price that would follow the non-farm payroll numbers, Maguire sent an email to the regulators explaining exactly how it would all pan out. Not only that, but Maguire exposed the manipulation live as it was happening, pinpointing to the second as the big bank traders manipulated the market.

To be honest, we’ve no reason to disbelieve anything Maguire says. But check out the evidence for yourself. Do you know what, we think this story is much bigger than even the gold and silver bugs are making out.

You can tell by the fact this story has been almost ignored that the mainstream considers it to be another conspiracy theory nutjob story.

We pointed that out yesterday with our paper money example. Those that get hold of the money first have the advantage, but they need to use the advantage to their benefit before others get in there first.

But, the most we’ve taken out of this hearing so far is, wouldn’t it be great if one of these toothless regulators held the same kind of hearing into the fiat money system? Calling the central bank and the government to account for their manipulation of money.

Because the type of manipulation taking place in bullion markets and doubtless every other market is no different to the manipulation the central banks inflict on the value of your money.

I mean, what’s the difference between a big trader artificially pushing down the price of silver and a central bank artificially pushing down the price of money – interest rates?

To our way of thinking there’s absolutely no difference. So while the exposure of the fraud taking place in the bullion market is interesting, a far more interesting and important story would be if the likes of central bankers such as Greenspan, Bernanke, King and Stevens were put in the dock and called to account for their manipulation of the market.

They should be carted off to The Hague and charged with crimes against humanity such is the effect of their market manipulation.

more in article here - http://www.moneymorning.com.au/20100414/bullion-market-manipulation-tip-of-iceberg.html

March 25, 2010 - Public Meeting to Examine Futures and Options Trading in the Metals Markets http://www.cftc.gov/PressRoom/Events/oeaevent032510.html