Home > Articles by PoliticalMetals > Secret Exemptions Allowed Speculators to Distort Futures Markets

Secret Exemptions Allowed Speculators to Distort Futures Markets

Much has been written about how a handful of large commercial banks are suppressing the price of gold and silver though their massive short positions in the futures market. Both here and elsewhere in blogsphere, you read of frustrations being vented over the failure or refusal of the Commodities and Futures Trading Commission (CFTC) to act on these market manipulators.

Despite thousands of public comments calling for imposition of position limits following the public hearings in March 2010, nothing has been implemented to-date. It’s all quiet now, after the initial noise generated over the Dodd-Frank act. As an agency tasked with providing oversight, the CFTC appears to be closing both eyes and acting like a toothless tiger.

All these discussions, complaints and rants on the banksters and the CFTC featured here are highly focused on the gold & silver market. Readers may have the impression that it is an issue unique to this market, and some may even smell a conspiracy theory here.

I came across a recent interview by Paul Jay of the Real News Network discussing the same issues mentioned above with Michael Greenberger, professor of law at the University of Maryland - but from a different perspective. They talked about how big banks have been artificially inflating the price of food & fuel through the same manipulative mechanism in the futures market. Some key points include:

  • The CFTC assisting selected big banks and people who just want to bet, who don’t touch the underlying commodities but want to bet on price direction.
  • Stealth exemptions on position limits given to Goldman Sachs et al so that they can profitably run their “betting parlours”.
  • Futures market for food & fuel comprises 20% real hedgers (for whom the futures market was originally designed) and 80% commercial speculators who have nothing to do with the physical commodities.

Sounds familiar? This video should help cast away any doubt that allegations of gold & silver price manipulation by the banksters, assisted by the CFTC, are for real. We’re not the only ones affected. The whole commodities market is similarly tainted - by the same culprits.

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