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Jim Cook



Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

Best of Silver
February 18, 2009
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Gold investors called to arms – who is Ted Butler?

By Rob Mackinlay

A torrent of complaints by investors is the likely reason why US futures market regulator, the CFTC, started its investigation into the silver market last year.

Now the analyst whose research prompted the mass email campaign that targeted CFTC staff and commissioners hopes to rally the much larger gold investment community to do the same.

In his latest commentary claiming manipulation of gold and silver markets Ted Butler, a US-based silver analyst, claims that February data on short positions in the gold futures market is the starkest evidence yet of manipulation.

Butler said: "The latest data from the CFTC confirm a manipulation in gold. Gold people should not tolerate it. Since there must be at least a hundred times more people interested in gold than are interested in silver, their collective voice could be forceful."

Butler calls on GATA (Gold Anti Trust Action committee) to "take the evidence and do everything in their power to ram it down the manipulators’ throats and end the gold and silver manipulation."

GATA has passed on Butler’s call to arms to its readers: Send Ted Butler's latest to Congress and CFTC

Who is Ted Butler?

Last year Butler’s reports on the silver futures market prompted a huge response from readers which may have resulted in the CFTC starting a new investigation.

This wasn’t the first time that the CFTC had to respond to Butler's claims. Back in 2004 the regulator felt it was necessary to write an open letter to reassure silver investors. Its then oversight director, Michael Gorham, was reported saying : "Normally we would not spend so much taxpayer time and money (on such complaints)... Our job is not to argue with analysts, but we took this step where the analyst has a huge following, and is telling people that the NYMEX and CFTC are not properly policing (the markets)."

Butler’s influence within the silver community is clearly substantial. However, despite the concern that Butler's allegations have caused, the CFTC has not interviewed him.

Investegate asked Butler if there was a possibility that the CFTC might be investigating him. He pointed out that his complaints about the silver market predate some other scrapes he has had with the regulator.

He said: "I doubt very much that the CFTC is investigating me, as much as they would like to tarnish me. They have little reason to, as I am not involved in the futures side of it. I am not an investment adviser, nor do I ever recommend that people deal in futures.

"In the interest of full disclosure (which I have publicly disclosed previously), I have been involved with the CFTC over the matter of manipulation. It involved the Orange Juice market in 1984. The CFTC brought attempted manipulation charges against one of my clients when I worked at Drexel Burnham.

"The attempted manipulation charge was summarily dismissed by their own Administrative Law Judge, but some record keeping charges were levelled against me. I thought they were unfair and I didn't pay a $30,000 fine and left the business instead (I had been a broker of success and good reputation for 15 years).

"I can tell you that there have been many occasions in the recent past that the CFTC has asked the Department of Justice to harass me over the past fine when I complain about silver. Currently, I am dealing with the DOJ as a result of recent complaints of mine about silver.

"I did not learn about manipulation from anything I read in a textbook - I've been on the wrong end of manipulation charges. Say what you will, but one tends to learn more from front line experience, more than in a classroom.

He said: "That aside, there should be no question that the CFTC has initiated their current silver investigation as a result of my article (and subsequent articles) of Aug 22 "The Smoking Gun".

"The resultant public reaction was what caused the CFTC to begin their investigation. They leaked and announced the investigation to the WSJ, to delay and stall in having to answer the simple question - "How can one or two US banks holding a short position covering 25 per cent of the world annual production of silver (or any commodity), not be manipulative (in and of itself)."

"Because they can't answer that (no one can), they started an investigation instead. You are absolutely correct that they didn't issue a press release, like they did in cotton and oil.

"I'm sure they have investigated me and have tried to come up with something that might discredit me, to deflect attention from the concentrated short position in silver, but they have been unsuccessful, mainly because the facts are against them.

"Look, as I have written before, no one asked them to investigate silver. I asked a simple question about the concentrated short position as revealed in their own reports. All that should have been forthcoming was an explanation, not an investigation."