Maguire: Smashdown was aimed to avert gold and silver breakout and BIS arranged it

Submitted by cpowell on 01:16PM ET Friday, February 22, 2013. Section: Daily Dispatches 1:12p PT Friday, February 22, 2013
Dear Friend of GATA and Gold:
In the second installment of King World News' interview with him today, London metal trader and silver market whistleblower Andrew Maguire describes a vast scheme of naked shorting of gold in the futures markets, asserts that the recent smashing of monetary metals prices was done to avert their upward breakout, and charges the Bank for International Settlements with coordinating the scheme. An excerpt from the interview is posted at the King World News blog here:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/22_Wh...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

source:
http://gata.org/node/12266
GO GATA GO!

Strongman Out

CFTC goes after CME Group’s New York Mercantile Exchange and Two Former Employees with Disclosing Material Nonpublic Information about Customers

CFTC Charges CME Group’s New York Mercantile Exchange and Two Former Employees with Disclosing Material Nonpublic Information about Customer Trades

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today filed an enforcement action charging the New York Mercantile Exchange, Inc. (CME NYMEX), which is owned and operated by the CME Group, and two former CME NYMEX employees, William Byrnes and Christopher Curtin, with violating the Commodity Exchange Act and CFTC Regulations through the repeated disclosures of material nonpublic customer information over of period of two and one-half years to an outside commodity broker who was not authorized to receive the information.

The CFTC’s Complaint, filed on February 21, 2013, in the U.S. District Court for the Southern District of New York, alleges that Byrnes and Curtin worked on the CME ClearPort Facilitation Desk and were responsible for facilitating customer transactions reported for clearing through the CME ClearPort electronic system. The Complaint alleges that at least from in or about February 2008 to September 2010, Byrnes knowingly and willfully disclosed material nonpublic information about CME NYMEX trading and customers, including about trades cleared through CME ClearPort, to a commodity broker on at least 60 occasions. The Complaint further alleges that between May 2008 and March 2009, Curtin knowingly and willfully disclosed the same type of information to the same commodity broker on at least 16 additional occasions. The nonpublic customer information unlawfully disclosed by Byrnes and Curtin in conversations — often captured on tape — included details of recently executed trades, the identities of the parties to specific trades, the brokers involved in trades, the number of contracts traded, the prices paid, the structure of particular transactions, and the trading strategies of market participants, according to the Complaint.

The Complaint alleges that the CME NYMEX and the two former employees violated the Commodity Exchange Act and CFTC Regulations, which specifically prohibit the disclosures of this type of customer information.

The CFTC’s Complaint also alleges that in July 2009, a market participant complained to CME NYMEX that the participant believed nonpublic information about trades cleared through CME ClearPort had been disclosed by a CME NYMEX employee named “Billy.” Although a CME NYMEX Managing Director who investigated the market participant’s complaint identified “Billy” to be William Byrnes, CME NYMEX did not then question Byrnes, and Byrnes’s illegal disclosures continued for over a year, until at least September 2010. Ultimately, CME NYMEX terminated Byrnes’s employment in December 2010 after yet another market participant complained to CME NYMEX about disclosures of nonpublic customer information. Curtin had previously left CME NYMEX voluntarily.

In its continuing litigation, the CFTC seeks civil monetary penalties, trading and registration bans, and a permanent injunction prohibiting further violations of the federal commodities laws, as charged.

CFTC Division of Enforcement staff responsible for this case include Patrick Daly, James Wheaton, David W. MacGregor, Lenel Hickson, Stephen J. Obie, and Vincent A. McGonagle.

Media Contacts
Dennis Holden
202-418-5088

http://www.cftc.gov/PressRoom/PressReleases/pr6519-13

Eric Sprott: Price of Gold and Silver are Being Suppressed & No Gold in the Treasury

Eric Sprott vid here guys.
Enjoy
Money manager Eric Sprott contends, "Physical demand for gold is out of line with supply. How can all these new people come into this market when there has been no increase in supply . . . for the last 12 years?" Sprott's analysis shows central banks are selling to make up for the shortfall and opines, "I would hate to think what happens when we all find out there is no gold in the Treasury." Join Greg Hunter as he goes One-on-One with Eric Sprott of Sprott Asset Management

http://youtu.be/DFraGGUHfv0

PRECIOUS-Gold dives to lowest since July on Fed, hedge fund talk

Guys:
Reuters saying that a big hedge fund was forced to liquidate holdings bringing down the commodities complex.
the FEd talking : "hey we are not going to print more money . maybe not. we will talk about that in March" > scaring dollar shorts all around the globe.
Get ready to load the truck soon, because the time will come.
I want to see the 1500 support working again.

the article now:

* Talk of hedge fund liquidation hits markets
    * Silver, platinum group metals decline sharply
    * Fed may need to halt QE3 before jobs recovery-minutes
    * Coming up: U.S. weekly initial jobless claims Thursday

 (New throughout, updates prices and market activity, adds
graphic link)
    By Frank Tang
    NEW YORK, Feb 20 (Reuters) - Gold tumbled 2.5 percent on
Wednesday to its lowest price since July after minutes of the
Federal Reserve's meeting last month showed the U.S. central
bank may have to slow or stop buying assets before a pick-up in
the job market.
    Silver and platinum group metals also dropped sharply.
    (Graphic: link.reuters.com/jej26t)
    Before the Fed released its minutes, bullion was already
down sharply as rumors swirled that a large commodity hedge fund
had been forced to liquidate its holdings, which triggered a
broad sell-off in industrial commodities led by crude oil. 
    Selling accelerated after bullion slipped below two key
resistances at $1,600 and $1,575 an ounce. It completed a
bearish technical formation known as a "death cross", when its
50-day moving average broke below its 200-day moving average.
 
    "It's clear the funds are not coming in to support the
market, and I don't see any physical interest either. There has
been a clear rotation out of gold and other commodities into
equities," said Bill O'Neill, partner of commodities investment
firm LOGIC Advisors.
    Spot gold was down 2.5 percent to $1,564.05 an ounce
by 4:17 p.m. EST (2117 GMT), having hit $1,558.24, its lowest
since July 12.
    U.S. gold futures for April delivery settled down
$26.20 at $1,578 an ounce, with trading volume about 50 percent
above its 250-day average, preliminary Reuters data showed.
    The Federal Open Market Committee minutes said current U.S. 
economic conditions might lead the policy-setting committee "to
taper or end its purchases before it judged that a substantial
improvement in the outlook for the labor market had occurred" . 

more:

http://www.reuters.com/article/2013/02/20/markets-precious-idUSL4N0BK36D20130220

Get Ready for Some Major Disinformation about America's Gold

interesting read:

Strongman.

An audit of the gold held at the New York Federal Reserve has been completed and the disinformation campaign has started. Notice how LaTi reports the story:

The U.S. government’s gold in New York is safe in a vault underneath Manhattan, and some of the precious metal there is purer than previously thought.

The problem with this is that the gold held at the New York Federal Reserve is not "The U.S. government’s gold." It is gold held, for the most part, by the Federal Reserve for foreign countries.

LaTi goes on:

That’s according to a first-ever audit conducted last year by the Treasury Department of U.S. gold on deposit at Federal Reserve banks in New York and elsewhere.

This is curious because it is the government conducting the audit.  That's like having Bernie Madoff's brother auditing Bernie's customer accounts. Why wasn't an independent auditing firm brought in? And since the gold is held for countries like Germany, why didn't Germany and others who have gold on account get to pick the auditor?

Here's more LaTi disinformation, which misdirects from the above important questions:

As part of the audit, the Treasury tested a sample of the government’s 34,021 gold bars in the New York Fed’s vault five stories below Manhattan’s financial district, according to the inspector general’s office. Auditors drilled tiny holes into the bars to remove samples that were tested for fineness in a process called assaying. 

In three of the 367 tests, the gold was more pure than Treasury records indicated, according to  the Treasury's inspector general. As a result, the government notched up the value of its gold holdings by approximately 27 fine troy ounces – or about $43,500, based on gold’s market value Monday.

Then LaTi tells us this:

The audit of the Fed gold came after 2012 presidential contender and former U.S. Rep. Ron Paul (R-Texas) questioned the central bank's gold holdings. While he was in Congress, Paul questioned whether the New York Fed had loaned or otherwise encumbered U.S. gold in financial arrangements, and he advanced a bill that would have required a full assay and audit of the country’s gold reserves.

But Dr. Paul was most concerned about "the country’s gold reserves," which is different from what is held at the Fed. The country's gold reserves are held mostly at Fort Knox, which no one is allowed to see, much less audit.

Then we have two more paragraphs of disinformation:

The New York Fed holds 99.98% of the U.S.-owned gold bars and coins in the custody of the Federal Reserve. The rest of the gold is on display at Fed banks in cities such as Richmond, Kansas City and San Francisco. 

As of Sept. 30, when the market price of gold was $1,776 an ounce, the Fed banks held $23.9 billion in U.S. gold. (Gold has since declined in value, and on Monday the precious metal was hovering around $1,610 an ounce.)

Unlike Fort Knox, the NY Fed gives tours of its vaults, so Americans can see the gold of other countries, but not US gold.

Bottom line: This audit was designed to confuse. Expect more stories about how the Treasury conducted and audit of US gold. Not true. Fort Knox gold, where America's gold supposedly sits, is off limits to all and has never been audited.

Again, the gold held at the New York Fed is mostly gold held for foreign countries. It does not belong to the Federal Reserve or the United States government. LaTi after misdirecting throughout the full story, ends with the limited truth:

The vast majority of the country’s gold reserves is held elsewhere, in Fort Knox, West Point and Denver.

Of course, the full truth is this gold has never been audited and unlike the NY Fed, which provides tours, there are no tours of the Fort Knox gold.

Touring the New York Fed

Every year tens of thousands of visitors from around the world visit the gold vault as part of a free, public tour of the New York Fed. This tour is designed to educate visitors about the Federal Reserve Bank of New York and Federal Reserve System. You can register for a tour here.

Bottom Line: The audit of the NY Fed gold will be used to deceive and give the impression that the gold supposedly held for American's has been audited.

source:
http://www.economicpolicyjournal.com/2013/02/get-ready-for-some-major-disinformation.html?spref=tw

SILVERTARDS: CURRENCY WARS are here

hold your silver tight.
First let´s talk about Argentina. Simon says:


February 12, 2013
Buenos Aires, Argentina

Selling snake oil and issuing unbacked paper currency are not so different. They're both wildly successful ploys for the guys pulling the strings. And they're both complete scams that depend solely on the confidence of a willing, ignorant public.

But once the confidence begins to erode, the fraud unravels very, very quickly, and the perpetrators resort to desperate measures in order to keep the party going.

In the case of fiat currency, governments in terminal decline resort to a very limited, highly predictable playbook in which they try to control... everything... imposing capital controls, exchange controls, wage controls, price controls, trade controls, border controls, and sometimes even people controls.

These tactics have been used since the ancient Sumerians. This time is not different.

Today, Argentina presents the most clear-cut example. Here the 'mafiocracy' unites organized crime, big business, and politicians to plunder wealth from Argentine citizens. Just since 2010, President Cristina Fernandez has--

* Nationalized private pensions, plundering the retirement savings of her people.

* Increased tax rates across the board-- income, VAT, import duties, etc. as well as imposed a new wealth tax.

* Inflated Argentina's money supply, printing currency with wanton abandon; M2 money supply has increased 215% in the past three years.

* Driven the value and purchasing power of the currency down by 50%. Street-level inflation is now 30%+ per year.

* Made a mockery of official statistics, comically understating the level of Argentine inflation and unemployment. She even began punishing economists for publishing private estimates of inflation that didn't jive with the government figures.

* Taken over control of one industry after another, most notably the nationalization of Spanish oil firm YPF's Argentine assets.

* Imposed export controls of agriculture products from beef to grains, forcing growers to sell at artificially lower domestic prices.

* Imposed capital controls, reducing her citizens' capability to dump their poorly performing currency and hold gold, dollars, euros, or anything else.

* Imposed a two month 'price freeze' on items in the supermarket, and encouraged retail consumers to rat out any grocer that doesn't abide by the government order.

* Imposed controls over the media, most recently ordered an advertising ban in Argentine newspapers (weakening their financial position).

Cristina's policies here are leading to shortages in everything from food to fuel to electricity. Hardly a month goes by without major strikes and disruptions to public services. The purchasing power of their currency is diminishing rapidly. And most people are completely trapped.

Of course, there were a handful of people who saw the writing on the wall. They learned the important lesson never to trust their government. They moved their savings to stable foreign banks. They purchased property abroad. They bought gold and silver, and stored it overseas. They were prepared when the plundering began.

The developed West is rapidly heading down this path. Europe is beginning to impose capital controls, and the IMF has sanctioned them. The US is rapidly printing its currency into oblivion, and confidence is eroding quickly. Russia just purchased an historic amount of gold, choosing real assets over more US dollar reserves.

It would be foolish to think the same things can't happen in the West. And even if it never happens, would you be any worse off for taking some of these basic steps?

Until tomorrow,

Simon Black
Senior Editor, SovereignMan.com  


-------------
now let´s move to Japan. They are in full retard money printing. Say goodbye to "deflation" times
 
 they want  to blow up Nikkei up to 17% in 30 days. Oh yeah, japanese go hardcore( latin) style inteventionism!



MA – Economic and fiscal policy minister Akira Amari said Saturday the government will step up economic recovery efforts so that the benchmark Nikkei index jumps an additional 17 percent to 13,000 points by the end of March.
“It will be important to show our mettle and see the Nikkei reach the 13,000 mark by the end of the fiscal year (March 31),” Amari said in a speech.
The Nikkei 225 stock average, which last week climbed to its highest level since September 2008, finished at 11,153.16 on Friday.
“We want to continue taking (new) steps to help stock prices rise” further, Amari stressed, referring to the core policies of the Liberal Democratic Party administration — the promotion of bold monetary easing, fiscal spending and greater private sector investment.
Amari said the Nikkei’s recent surge translates into combined share appraisal gains of some ¥38 trillion among domestic corporations, including financial institutions.
The key index started rallying from around 8,600 points in mid-November when then-Prime Minister Yoshihiko Noda decided to hold a general election Dec. 16 that saw his ruling Democratic Party of Japan trounced by the LDP. Share prices have risen largely in response to the yen’s depreciation against other major currencies on expectations for aggressive monetary easing measures by the Bank of Japan since the LDP’s return to power.

source: http://www.japantimes.co.jp/news/2013/02/10/business/japans-economic-minister-wants-nikkei-to-surge-17-to-13000-by-march/#.URo9m2ckppH


-----------

Chavez has made his move:

Venezuela announces widely expected currency devaluation, cutting bolivar's value nearly half

Read more: http://www.foxnews.com/world/2013/02/08/venezuela-announces-widely-expected-currency-devaluation-cutting-bolivar-value/#ixzz2KgovVkhy

-------------

HOLLANDE , FRENCH PRESIDent  has hit the PANIC BUTTON:

Strasbourg, France (dpa) - French President Francois Hollande on Tuesday called for the creation of a eurozone exchange rate policy, saying the current strong euro was further penalizing struggling European economies.

Europe was "leaving the euro vulnerable to irrational movements," he told the European Parliament in Strasbourg.

"We cannot allow it to fluctuate as markets see fit," he said, warning that countries that had taken steps to become more competitive risked having the gains wiped out by a strong euro.

A monetary zone "must have an exchange rate policy," Hollande added. dpa cfb ncs

READ IT? "MUST"? they are totally scared.
http://en.europeonline-magazine.eu/extra-hollande-eurozone-must-defend-euro-against-weak-currencies_262599.html

YEAH ! governments are getting ready.  so keep stacking. I guess money will flow back to the US, stocks and real things like gold and silver.

keep watching the markets. and keep stacking.

Strongman out