I am calling you out as a LIAR!!!. Prove me wrong, Bill, and have Neil Cavuto have Ted Butler and Bill Murphy some air time, to explain bullion manipulation, and make good on your promise to WARN THE FOLKS. Its the least you can do. You promised, yet you have failed, and one can only presumed, you too have a blind eye, like the CFTC re gold and silver bullion, to warn the folks. The folks are buying bullion to protect themselves from the ravages of the socialistic elitist spending and paper printing in DC, but they dont realize how the government and the bullion banks are manipulating bullion prices. So, why dont you expose the manipulation and FRAUD. Or at least give some air time. YOU PROMISED the folks, remember? Do the right thing, Bill. Fall on your sword, and have Neil Cavuto make the interviews on FOXNES. Curious, is the Russian press becoming more free than the US press? Do Tell. Lets see.

Derrick Michael Reid

Laguna Beach CA

(PS:, LOVE YOUR SHOW BILL, it is the best, hands down!!!)

=======================

March 6, 2009

GATA BOMBSHELL

GATA Board Member Adrian Douglas…

Marina asked to interview me on camera about the surge in gold demand, my predictions of a bond market collapse, and my thoughts on the Obama stimulus package. This seemed like a mega opportunity for GATA so I re-organized my schedule so that I could go to their New York studio for an interview.

The interview was filmed March 5. We had planned 45 minutes together but the cameras were rolling for almost 90 minutes! Marina was enthralled and shocked by the biggest Ponzi scheme in human history. I had sent her several pages of background information before the interview and would not have been surprised if I was classified as "too hot to handle" and that the interview was cancelled. It was not. When I met Marina Portnaya I quickly understood that despite being young she is a journalist of the old school. She is passionate about reporting facts and reporting truthfully. She is a true patriot deeply concerned about the way the US has been brought to its knees by the misdemeanors of the powerful elite.

We got into all the background information about how the manipulation of the gold market is at the center of the destruction of the financial system. How switching off the fire alarm allowed interest rates to be artificially low and the dollar M3 money supply to be promiscuously increased without most people noticing there was anything wrong before it was too late. It allowed the US to live beyond its means for so long and to abuse its responsibility of managing the world’s reserve currency.

I don’t know how much will be left on the cutting room floor but taking any ten minutes out of the 90 minutes of film will be a major coup for GATA and a huge exposure of the scam that the gold cartel has perpetrated on the world.

The interview will air next week. Marina was very pleased with the interview and said that her producer will love it. I hope so.

I will notify you when I get confirmation of when it will be aired. I have also been promised a DVD of the interview.

Isn’t it ironic that the spirit of free press is not with US networks but with those of Russia! How the world has changed!
Cheers
Adrian

A bit about Russia Today...

At RT we are set to step beyond the boundaries of bare facts and bring you the human side to every story. Broadcasting in English 24/7 in over 100 countries spread over five continents, RT is here to show you how any story can be another story altogether.

Our correspondents in New York and Washington, London and Paris, Delhi and Tel Aviv focus on international headlines whilst giving an innovative angle set to challenge viewers worldwide. RT was the first television station in the world to set up a bureau in Tskhinval, the capital of South Ossetia after the August 2008 conflict.

The channel

Apart from regular news updates, RT offers a unique insight into many aspects of Russian history, culture and opinions. Our special projects are specifically tailored to accustom the international audience with the Russian perspective.

RT anytime, anywhere

We are available around the world on cable, satellite and online. In Europe, South Africa and North America, RT has an audience of around 200 million paying viewers among the pay-TV subscribers. RT was the first Russian news channel to harness intercontinental potential and have its live broadcast show on America’s "most important screens" – NASDAQ and Reuters.

Likewise, in August 2007, RT was the first channel in television history to report live from the North Pole.

Embracing technological advances, RT was the first Russian TV channel to hit the web with its own page on YouTube alongside its continuous online broadcast and blogs on services such as Facebook, MySpace and Blogger.

During the South Ossetian conflict alone, our YouTube viewership of South Ossetian reports alone rose to 1,330,803. The total RT viewership peaked at around 10-15 million. The number of our online viewers on the Livestation platform during this period surpassed that of such international broadcasting companies as BBC World News, Euronews and France 24, being second only to that of Al Jazeera English.

RT awards

Our dedicated team of news professionals unites young talent and household names in the world of broadcast journalism. RT’s dedication towards high-quality output and an insightful approach to every subject matter has been acknowledged by a number of international awards, including:

JANUARY 2009
Silver World Medal for Best News Documentary "A city of desolate mothers" from the New York Festivals

NOVEMBER 2008
Special Jury Award in the Best Creative Feature category for «Russian Glamour» feature story at Media Excellence Awards in London.

SEPTEMBER 2008
Russia's most prestigious broadcasting award TEFI in Best News Anchor category.

====================

OBAMA, and the press

Find herewith back up where I gave notice of the market rigging and derivatives, and was ignored, the country went into the tank, and then we get the OREILLY apology. OK, accepted. But are you all going to make the same mistake again. I will make it simple for you, please use your investigative capabilities to answer a couple of questions.

1. How much physical gold does the country have at Ft Knox/NY?

(hint, less than half through loans, swaps, sales, and leases)

2. What is the percentage of net naked short positions by the top 8 and top 4 holders of NET short positions on the COMEX of all short positions, and if that is deemed prima facie manipulative, why not has the CFTC remedied it?

(hint, part of gov strong dollar policy, deceiving the people, and rigging markets.)

There's the clue, and you all do what?

Derrick Michael Reid

Laguna Beach CA

==========================

OBAMA, and

To all you the major news outlets. I hereby provide you all WITH NOTICE of the gold rigging, manipulation, and theft. I do not want to hear OReilly come out again, and say,

IM SORRY I DID NOT WARN THE FOLKS, we will do better next year.

Well Mr Bill Oreilly, ITS NEXT YEAR. Are you all just going to blow this off, as you did 1000T$ in derivatives and bullion manipulation, and MESS our banking system and economy are consequently in? YOU ALL ARE NOW ON NOTICE. (and I archive all my emails, memos, and writings.) CATCH-YA!!!

Have a nice day.

Derrick Michael Reid

Laguna Beach CA

============================

January 18 - Gold $839.10 - Silver $11.20

"Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof." … John Kenneth Galbraith

"An error does not become truth by reason of multiplied propagation, nor does truth become error because nobody sees it." … Mahatma Gandhi

This week marks GATA’s tenth anniversary of our efforts to expose the manipulation of the gold market. In another few weeks we will mark the tenth anniversary of my appearance on CNBC (interviewed by Ron Insana) … the first and last GATA appearance on the US TV media to date … for once they heard what GATA had to say, we have been blackballed ever since. It also marks a shameful period for the US financial market press, which is now clamoring for answers as to how we ever got in the financial market/banking mess we are presently facing. For that answer they ought to first look at themselves and their dismal way of kowtowing to the rich and powerful, and banning those who are willing to challenge the Orwellian grip on what Americans are allowed to hear and know.

America is facing quite a dichotomy at the moment. We are on the Inaugural Eve of our first black President, with all the hopes and dreams he is envisioning for our country. At the same time we are enduring the most horrific financial crisis since the Great Depression.

President-elect Obama, a superb orator, is calling for Americans to pull together to effect the CHANGE he called for in his campaign, and for all of us to contribute individually to make that change happen. He has wisely warned of the tough times ahead while going all-out to ready policies ASAP which he believes are the correct way to remedy the growing economic problems of the day.

He has also assembled an economic team of advisors which are acclaimed and generally very highly regarded … including Robert Rubin, Lawrence Summers, Timothy Geithner and Paul Volker. Unfortunately for the GATA camp, they are the ALL-PROS of the gold price suppression scheme. It is almost like our worst nightmare. On paper it represents anything but change as far as US gold policy is concerned, and has the potential to make our investment lives miserable for years to come. After all…

*Robert Rubin coined the phrase "US Strong Dollar Policy," and flaunted the phrase. Rigging the price of gold was that policy’s lynchpin. What else was there? Steve Forbes was on Fox News Saturday talking about how important he believes it is for America to MAKE the dollar strong again. He talked sheepishly about gold in vague terms and referred to Rubin.

Like outgoing Treasury Secretary Hank Paulson, Tim Geithner is a graduate of Dartmouth College. Talk about knowledge of the gold price suppression scheme!

*And then there is the venerable Paul Volcker, who so effectively brought down runaway inflation in the US, starting in 1980. His one regret:

"Joint intervention in gold sales to prevent a steep rise in the price of gold (in the 1970s), however, was not undertaken. That was a mistake." … Former Federal Reserve Chairman Paul Volcker (writing in his memoirs).

All-Pros? All-World is more like it when it comes to devotees of suppressing the price of gold. Outside of Volcker, the other three are those most responsible for making it happen in the first place.

So what’s the point? To get us all depressed over what lies ahead? NO, just the opposite.

On December 18^th, on GATA’s behalf, I met with Bart Chilton, a CFTC commissioner who showed interest in hearing what we had to say. There were three others from the CFTC in attendance, including Elizabeth L. Ritter, Deputy General Counsel of that organization.

From my MIDAS commentary later in that afternoon…

Bart listened intently and took notes, as did one of the others, and asked numerous questions. Basically, I laid out our GATA presentation as I explained in the Sunday Midas. I am not going to get into all the details of what they said, as we will see what takes place in the months to come … except to say that I chuckled when saying to them if they really wanted to comprehend what the real gold price suppression scheme is all about, all they have to do is go to their new proposed Chairman … at the right time. No one knows what is going on better than he does.

(Insert- Gary Gensler was nominated that day to be the new chairman of the CFTC. Gensler was Undersecretary of the Treasury (1999-2001) and Assistant Secretary of the Treasury (1997-1999).

Gensler spent 18 years at Goldman Sachs, one of the ringleaders of The Gold Cartel, making partner when he was 30, becoming head of the company’s fixed income and currency operations in Tokyo by the mid-90’s.

As the Treasury Department's undersecretary for domestic finance in the last two years of the Clinton administration, Gensler found himself in the position of overseeing policies in the areas of U.S. financial markets, debt management, financial services, and community development. Gensler advocated the passage of the Commodity Futures Modernization Act of 2000, which exempted credit default swaps and other derivatives from regulation.

Could The Gold Cartel have recruited a better ALL-PRO/ALL-WORLD man for their team? It is also important to keep in mind that chairman of the CFTC is one of the four members of the President’s Working Group on Financial Markets. Now why does a bureaucrat need to participate with the President and US Treasury Secretary on the markets? I thought the CFTC was supposed to regulate them, not be a part of policy.)

I did not hold back and said the main culprit of The Gold Cartel was our own government (their own boss), who has been in league with bullion banks like JP Morgan Chase, and others, to suit their own hidden agenda….

I was very impressed with Bart Chilton (very sharp guy) and he mentioned that my trip to D.C. would not be in vain.

***

What I stressed most at the meeting was that the gold price suppression scheme would not survive another four years, over the length of Obama’s elected term … and presented lengthy documentation to prove my point … meaning The Gold Cartel would run out of enough available central bank gold to meet a growing annual supply/demand deficit over the next four years. The bottom line was that Obama could stop the gold price manipulation scheme now and allow the price of gold to trade freely, thereby letting the Bush Administration be the fall guy; or he could let his economic team persuade him to carry on the status quo, in which case the price of gold will blow sky high in the years ahead, and he would have to take the blame for the resulting ramifications … especially when the gold scandal becomes a huge public ordeal.

What better way for Obama himself to understand the true gold situation than to ask his top economic advisors what the real deal is. If GATA is correct, and we have been on target for years, the U.S. has a BIG problem when it comes to its gold reserves (how much of it has been encumbered and is therefore GONE?) That is an essay unto itself, with many variables to be discussed, and for another time. All Obama has to do is get the five above-mentioned gentlemen in a room and get right to the nitty-gritty. They can start with the extensive package I handed to Bart Chilton, who is a member of the Obama transition team, and someone who once worked for Tom Daschle, formerly the Democratic leader in the Senate for ten years, and is now Obama’s Secretary of Health and Human Services nominee.

What Bart Chilton does with what I gave to him is his business, but since he told me my visit would not be in vain, I assume GATA’s extensive presentation did not go into the dumpster.

Meanwhile, in GATA’s tenth anniversary year, we are making our own call for CHANGE, and are pressing on. Obama has stated over and over again he wants THE PEOPLE to be represented and asked us to give him input. Who has more pertinent input go get to him than our camp? Therefore, we are asking everyone interested in a free gold market to make a renewed effort to further disseminate our decade’s worth of evidence of gold market manipulation into the public domain by contacting the financial market media and to others in the Obama transition team (if you have any contacts).

I know how frustrating it has been to get the jaded financial market media to listen to, and then acknowledge, what we have to say, but that was yesterday and perhaps times have changed due to the growing financial market crisis, and yearning to understand how we got here. After all President-elect Obama is urging for "government accountability" and "transparency."

This call to arms has been instigated by the dramatic and sudden discovery of an important document buried in the Federal Reserve’s archives by writer and researcher Elaine Supkis. This document is posted on her blog at:

The document, which is marked "Confidential," is from the papers of William McChesney Martin, Jr., and this collection is held by the Missouri Historical Society. A scanned image of the original document is posted by the Federal Reserve Bank of St. Louis at the following link:

The title of this confidential report is:

U.S. Foreign Exchange Operations: Needs and Methods

James Turk notes:

In short, it lays out what the Treasury and Federal Reserve needed to do in order to begin intervening in the foreign exchange markets, but there is even more. This document plainly shows what happens when government operates behind closed doors. It also makes clear the motivations of the operators of dollar policy long described by the Gold Anti-Trust Action Committee and its supporters -- namely, that the government would pursue intervention rather than a policy of free markets unfettered by government activity. The run to redeem dollars for gold had put the government at a crossroads, forcing it to make a decision about the future course of dollar policy. This paper describes what the government would need to do by choosing the interventionist alternative.

This document provides primary, original source supporting evidence that GATA has been right all along.

I have long hoped that a "confidential" document like this one would eventually emerge. There are no doubt countless more like it, as evidenced by the Federal Reserve's and the Treasury's refusal to provide all the documents requested by GATA under its recent Freedom of Information Act request. Maybe those documents will eventually see the light of day too.

***

James makes a key point regarding one of the assertions of this report…

"The basic purpose of such operations would be to maintain confidence in the dollar."

James T notes…

"This statement confirms one of the basic planks of much of the work by me and others that has been published by GATA over the years. The efforts to cap the gold price have one aim. It is to make the dollar look worthy of being the world's reserve currency when in fact it is not."

***

This significant report was written some 48 years ago, yet could have been written at any time in the past 10 years during which GATA has discovered blatant manipulation of the prices of gold and silver … as well as noted ludicrous counterintuitive dollar market action, which has been most noticeable in recent days, as our hysterical financial crisis in the US intensifies.

James Turk’s title says it all: it is a blueprint for the gold price and financial market manipulation so prevalent now. Ironically, there is a common misconception out there that the US is in the financial market mess it is in today because of too much deregulation. To some extent that is very true, as the likes of Secretary Paulson and Gary Gensler urged Congress to allow the US investment banks to increase the allowable debt/credit on their books from 12:1 to 40:1.

Yet, just as big a problem was the secretive interference in the US financial markets which allowed credit and risk issues to go completely out of control in America … meaning too much secretive market manipulation … and in a hidden way, too much regulation. Had the gold market not been artificially suppressed and allowed to trade freely, the price would have soared these past years, interest rates would have risen dramatically, and there would have not been the reckless investment bank shenanigans that have put our financial system in such peril. Simplistically, it is generally acknowledged that if gold had been allowed to keep up with inflation for the past 28 years, the price would be over $2,000+ per ounce. The GATA camp knows why it is not there RIGHT NOW!

Had the Plunge Protection Team (Working Group on Financial Markets) not stepped up their constant Hail Mary play activity after 9/11 to drive the DOW mysteriously higher in the last hour of trading on the New York Stock Exchange, the market probably would have broken down much earlier than it did and given the investing public more of a clue that something was wrong, instead of the misleading Stepford Wives drill that "Everything is fine."

What is profoundly disturbing about the discovery of this confidential document is it fits in with much grander conspiracy theories than where GATA is coming from. Since this document, based on what has happened, really is a blueprint for market manipulation since 1961, it feeds into the worst fears of those who are constantly on the case about the Bilderbergers, Council on Foreign Relations, Trilateral Commission, and so on. This document to William McChesney Martin, Jr. is EXACTLY what I have been seeing and reporting over the past decade … not that much different than those who pointed out the Madoff Ponzi scheme during the same period of time. To learn that this market deception and manipulation was conceived when I was a freshman in high school is almost beyond comprehension, especially since the Wall Street crowd hasn’t permitted a serious discussion about it ALL THIS TIME! Nor has our government allowed a true independent audit of US gold reserves since the Eisenhower Administration in 1955.

It also feeds right into the scary notion revealed in a famed President Clinton comment that goes something like … "I didn’t realize I wouldn’t be in control here when I became President." … meaning there were far more powerful background forces pulling the strings and on how he must operate.

GATA doesn’t want to go there, but based on this new discovery, it certainly opens up further comments for fair game, even for some of GATA’s Board of Directors. Adrian Douglas (an oil industry consultant who is presently off to Angola) sent the following email to James Turk:

James,
Congratulations. This was an excellent analysis. What a stunning document! Real dynamite.

It got me thinking as to whether the heist they have pulled is bigger than we think. The BIS as we know, and as mentioned in this memo, is the organization that allows for cooperation behind the scenes of the Central banks. We know they went private to prevent any need for public disclosure seeding the opportunity for Reg Howe’s lawsuit. We have plenty of evidence that Central Bank gold holdings have been depleted. We keep saying that the gold is "gone". But what do we mean by "the gold is gone"? Gold is not like crude oil, expensive wine, even silver… it does not get consumed. It has not "gone"; it has changed ownership. The Central Banks leased out gold to the bullion banks. Now who did the the bullion banks sell the gold to? We know that the bullion banks can’t get the gold back. If the central banks ask for the gold back the bullion banks can declare bankruptcy or settle in cash. How convenient! The Central bank gold has gone into someone else’s hands that are unknown and the loss will eventually be written off. We know that Central Banks are owned or controlled by some of the richest families and/or entities in the world. Is it possible that these "bankers" can benefit from a fiat Ponzi scheme while it can be maintained AND still end up with the gold in which case they can benefit from a return to a gold standard and when the gold standard eventually gets abused and abandoned in the future they will play the whole fiat game over again? It would certainly require cooperation between central banks to pull off such a heist.

It would be great to have the whole world sitting in a room and ask those who own more than 10 million ozs of gold to raise their hands!

The crime may be more than manipulating the price of gold to "defend the US dollar" and concealing the evidence from the public. The Cartel may well have aided and abetted embezzlement of the citizens’ gold of the Western world. And who ever has it, they bought it perfectly legally from the bullion banks with fiat currency.

This seems to make sense because Central bankers and the "elitists" (Rockefellers, Rothchilds, Morgans, Mellons, Carnegies, Vanderbilts etc etc) are not stupid. They must know gold is real money. They can study monetary history too. The fiat money game in this context is a decoy for the theft of sovereign gold.

It is not without precedent, the great inflationist, John Law, was arrested escaping with a coach loaded with gold and silver!

Is this a bridge too far in conspiracy theory?
Cheers
Adrian

Adrian:
My hypothesis since 2001 is that the NWO is shifting assets out of sovereign governments and shifting liabilities back in. The goal is to reengineer global governance into the hands of private banks and corporations in a manner that dramatically centralizes control. This is why the creation of a genetically controlled seed and food supply, etc.

To achieve such centralization requires the centralization of the gold and silver stores. Whoever has the gold has the most powerful financial asset. So if you want a new centralized currency, you need a monopoly on gold and silver. I think part of the end game is to shift back to something involving some kind of gold standard.

If you use fiat currency to acquire ownership and control of all the real assets on the planet, then you need a gold standard to make sure you keep them.

So, it would not surprise me to see G8 and GATA start to move into alignment, strange as it may sound.
Catherine

Neither opinions are official GATA viewpoints, but they are intriguing, eye-opening and worth pondering.

When I met with Bart Chilton I said GATA’s high command is just a bunch of proud Americans who have stumbled across a profoundly disturbing situation. I showed the four CFTC individuals in attendance GATA’s full-page color ad in the Wall Street Journal on January 31, 2008. It was titled, "Anybody Seen Our Gold?" …

Some of you are very familiar with this copy in the ad…

"The objective of this manipulation is to conceal the mismanagement of the US dollar so that it might retain its function as the world’s reserve currency. But to suppress the price of gold is to disable the barometer of the international financial system so that all markets may be more easily manipulated. This manipulation has been a primary cause of the catastrophic excesses in the markets that now threaten the whole world."

… and then…

"Surreptitious market manipulation by government is leading the world to disaster."

The DOW was a little below 13,000 at the time. I mean how right could we have been? Yet the US financial market press completely ignored this very visible ad. There was not even a query of what we were talking about and why we would spend $264,400 to make such a warning.

So now we are fast forwarding virtually a year later and the US financial markets and economy ARE in chaos. If soon to be President Obama really wants CHANGE and TRUTH, we will give him critical input on one way he can effect what he says he is looking to do.

To increase the likelihood that what GATA has discovered actually reaches him, GATA is asking all who read this, and agree with GATA, to make some small effort to get this commentary to the financial market media in the world, especially the US financial market press.

That means contacting writers and media outlets such as the Wall Street Journal, Washington Post, Washington Times, New York Times, Forbes, Fortune, CNBC, CNN, Reuters, Bloomberg, the AP, Fox News, Newsweek, Time, etc. In addition, sending this Tenth Anniversary GATA commentary to widely-followed internet bloggers would also be helpful; perhaps stirring up so many out there who are searching for the reasons behind what has happened financially and economically in the US and why.

In such troubling times, Obama’s coming Presidency has given optimism and hope to many. For that to occur there must be true change, the desires for which have swept him into office. President-elect had some army. And GATA has its army.

Please take a little time and make just a small effort to help Obama help himself, even if our issue is the last one he is thinking about at the moment. Funnily enough, it ought to be one of the first, as it is one of the most prominent ones which got us into the financial market/economic nightmare we are in today. After all, it is many of the same bullion banks/investment houses our government is bailing out that were so instrumental in the gold price suppression scheme. Our mission is to let him know, via all sources possible, what the heck has happened and continues to go on.

Bill Murphy
Chairman
Gold Anti-Trust Action Committee
========================

Mr. OReilly,

Is foxnews also going to keep its head in the sand?

The folks want to know, WHY YOU HAVE NOT EXPLAINED the global meltdown to them.

What, YOU GOT NOT CLUE????

Come on, fess up

(what? you need a little hint, hhhmm, ok, love your show, so here go, start with counterparty-risk unregulated 1000T$ OTC derivatives and gold/silver bullion manipulation, oh, and please pass this hint along to FOXNEWS' milt-toast puppy dow dog.

Enjoy the attachments.

Derrick Micahel Reid

Laguna Beach CA

Here’s a way that every Café member interested in doing their part to get GATA’s message out there can help. Veteran Café members know that the last time I was on CNBC was in early February 1999. Since then shunned silence from them and, for the most part, the rest of the US financial market media.

Perhaps we can turn that around. Certainly we can all try. This email came my way yesterday:

Hi Bill,
Don't know if you heard it, but on the closing bell Dillon Radigan (and Maria Bartiromo) called for explanations and/or investigations into the actions of Greenspan, Bernanke, and Paulson (both as Treasury Secretary and while at Goldman) as well as others to explain how we got into this mess. As you know, that is unheard of at CNBC. There is no doubt in my opinion that the house of cards is falling, as the Illuminati expected and probably planned. A drastically weakened USA is mandatory for their planned world government.

Good luck with Bart Chilton, as you know, you are walking into the den of vipers, however their plan probably calls for "an investigation" and even reporting of gold and silver manipulation. It explains the CFTC's recent actions regarding gold and silver manipulation "investigations". Remember the March 14 closed door session of Congress and the leaks calling for financial collapse by Feb 09, as well as martial law, etc. All the best. Chuck A.

This is what I sent last evening to The Closing Bell:

Hi,
This is Bill Murphy, Chairman of The Gold Anti-Trust Action Committee, founded in January 1999 to expose the manipulation in the gold market. I have a meeting with CFTC Commissioner Bart Chilton this Thursday in Washington to discuss the matter.

This came to me this a while ago….

On the closing bell Dillon Radigan (and Maria Bartiromo) called for explanations and/or investigations into the actions of Greenspan, Bernanke, and Paulson (both as Treasury Secretary and while at Goldman) as well as others to explain how we got into this mess.

***

I can explain how we got into this mess. My organization, GATA, warned, as result of the manipulation of the gold price, of the coming "catastrophe" and "disaster" in this full page ad in the Wall Street Journal on January 31 of this year. It cost us $264,400 and NO ONE LISTENED. Here it is:

You want a scoop, I would love to talk to you about it.
all the best
Bill Murphy

==========================

SEPTEMBER 25, 2008 CFTC Relents and Probes Silver Market
Persistent Complaints of Foul Play Draw the Still Skeptical Agency to Investigate


With silver prices falling this past summer, silver bugs world-wide set out to prove that their metal was in short supply and market manipulation was at work. They bombarded federal regulators with hundreds of emails crying foul play and demanded answers.

Though such pleas proved futile in the past, this time the rousing chorus grabbed regulators' attention. On Wednesday, the Commodity Futures Trading Commission confirmed that there's an investigation into the silver market.

The CFTC isn't yet convinced there's systemic wrongdoing and in May published a report saying as much. But the agency decided to take a fresh look, in part to show critics that it checks out complaints, and also to make sure there isn't something new to uncover.

"We take the threat of manipulation in the futures and options markets very seriously and employ a number of measures to prevent, identify and prosecute it," said Stephen Obie, acting director of the agency's division of enforcement.

Silver investors have argued that a handful of U.S. banks have been controlling a large portion of silver's short positions - or bets that prices will decline - on Comex division of the New York Mercantile Exchange. Official data from the CFTC showed that two U.S. banks had increased short positions in the silver futures market between July and August by 450% and controlled 25% of the total open interest.

"The proof that this selloff was criminal lies in public data," wrote Theodore Butler of Cape Elizabeth, Maine, in August in a silver newsletter. "The concentrated sale of such quantities in such a short time" caused silver's fall, wrote Mr. Butler, who for many years has been vocal about purported silver-market manipulation. In September he reiterated to readers that they should email the CFTC.

The CFTC had argued in May that the large banks that people assailed for manipulating the market were instead acting appropriately as market makers, who take on futures positions to offset their exposure in over-the-counter markets. Therefore, these traders aren't "naked shorts" and won't benefit from long-term depressed silver prices. Many analysts agree with the agency's conclusion.

Silver stalwarts weren't persuaded. Jason Hommel, a newsletter writer based in Penn Valley, Calif., directed readers to visit their local coin shops at 2 p.m. on Sept. 2 to size up for themselves whether there was a silver shortage. From Michigan to North Carolina and beyond, he says, investors trekked to coin shops. Many reported no silver for sale.

Bart Chilton, one of the CFTC commissioners, said he has received about 700 emails from silver investors since August, far more than the estimated 100 he received from May to July. Mr. Chilton, a Democrat who has criticized the CFTC as doing a poor job communicating with consumers, says he has spent nights and weekends personally answering emails.

Historically, silver has been a volatile market. This year it saw a near-50% drop and remains down 9.5% on the year. Gold is up 6.5%. The agency has long heard from frustrated silver investors. In 2004, it published an open letter by Michael Gorham, then the agency's director of market oversight, after receiving more than 500 letters and emails from silver investors.

That the enforcement rather than oversight division is taking on the issue marks a difference from the CFTC's previous efforts regarding the silver market. The oversight division performs overall market surveillance. The enforcement division looks at activities in a specific time period.
==================

Hey Bill OReilly,

Look like the FOLKS went over your head, and wrote directly to CTFC for nake silver bullion future paper shorts, (much thanks to Ted Butler, and NOT YOU!)

Derrick Michael Reid

Laguna Beach CA
==================

Bill OReilly,

I loved watching over the past few days, slamming the political leaders (COX) and banksters (Bernakie and Pauslson) and congress (Dodd Franks) for not telling the news and folks about the situation. Well Bill, do tell me, would it have done any good. You are just as bad as the politicians, look the other way until a train his runs you over. I tried last year to give you a heads up, about the Fed intervention into the bullion markets, to suppress gold to make the dollar look good. In the mean time, share prices of the miners have been in the toilet, government manipulation and SEC turning a blind eye, as destroyed the miners. We gold bugs have been preaching OTC quadrillion derivative problems for years and the manipulation in the markets, yet you DID NOTHING to WARN the folks. Bill, as one of the folks, you get F grade for your duplicity, dis ingenuousness, and blind eyed reporting.

Now do the honorable thing, fall on your sword, and admit YOU FAILED the folks, on the FACTOR!! Do the right thing, and come clean. SEC, FED, TRES are finally doing it, your turn.

Derrick Michael Reid

Laguna Beach CA

--- On Fri, 11/2/07, Derrick Michael Reid <w2_5hs_3c_xfers@yahoo.com> wrote:

From: Derrick Michael Reid <w2_5hs_3c_xfers@yahoo.com>

Subject: Fwd: Cavuto the Milk-Toast Puppy v Kudlow the Fed's Raw Raw Man

To: "Bill OReilly" <oreilly@foxnews.com>, "Neil Cavuto" <cavuto@foxnews.com>

Cc: "Bull Bears" <bullsandbears@foxnews.com>, "Forbes Fox" <forbes@foxnews.com>, "Fox Friends" <Friends@foxnews.com>

Date: Friday, November 2, 2007, 12:33 PM

Mr. O,

well, how about it?

Derrick

==================

So Ms Dhue,

you waiting for that chump boyfriend of your for a gold bobble?

Well, open your eyes, Gold breached 800 enroute to 2750, and you do nothing to train that milk-toast-puppy, nor curb the junk-yard-dog.

Hey, take some canine training lesson, and get the dogs on the hunt.

Kisses

Derrick

Laguna Beach CA

see my other emails on "milk-toast puppy".

Mr. O

You know Kudlow at CNBC is a Raw-Raw Man for the Fed and the rate cuts, and economy pumping, and removing the business cycle, under the quise of promoting free and fair markets. At Foxnews, on the other hand, Neil Cavuto, is a milk toast puppy and wont touch a controversial topic. What a puppy!.

It is a farse, the gov is controlling interest rates, gold price, while fudging the CPI numbers.

That is not really new, what is new, is that FOXNEWS wont call them on it, at all. I thought you were THE MAN!!! at fox news?????

If you dont get Neil on the hunt, I will send Laurie Dhue after you, to spank youre butt.

You better shape up quick, and get your lap puppy on the story..

The gov is controlling the markets, of course they are, weather you call it sound management or manipulation, IS NOT THE POINT, the point is that no-one at planet wall street, want to call them on it, for exactly what it is.

Get out the cattle prod, and give Neil a goose, would you?

Derrick Michael Reid

Laguna Beach CA

=====

John Browne, a former member of the British Government, has been a constant guest recently on Larry Kudlow’s CNBC program. Yesterday, late afternoon:

Gold price suppression briefly breaks into Kudlow show on CNBC

1:07a ET Tuesday, September 25, 2007

Dear Friend of GATA and Gold:

Larry Kudlow's program of market commentary on CNBC briefly got out of control Monday afternoon when one of the panelists, John Browne, editor of MoneyNews.com, uttered a few words about a forbidden subject.

Kudlow had just observed that the gold price has failed to register inflation for about 10 years, whereupon Browne interjected that gold is "heavily distorted on the down side by government intervention." A free-market price for gold, Browne added with some agitation, would be between $1,000 and $2,000 per ounce.

Kudlow pointedly declined to pursue Browne's point, and just as GATA Chairman Bill Murphy was never invited back on CNBC after complaining of gold market manipulation there in 1999, Browne now may be lucky if his next television appearance is on some local cable-access channel in Topeka.

At this hour CNBC has not yet thought to remove this section of Kudlow's Monday program from its Internet archive, and you still may be able to find it here:

http://www.cnbc.com/id/15840232?video=529347622&play=1#

The program segment at that link is 10 minutes long and Browne's interjection begins at the 7-minute mark and last about 25 seconds. Enjoy it while you can.

GATA thanks and congratulates Browne for cracking a national audience in the United States on gold's behalf. We'll miss him.

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

The following was sent last night to Larry Kudlow and his producers at CNBC, along with my bio and the www.GoldRush21.com address…Hello Mr. Kudlow,

I am watching your Goldilocks versus Recession debate of sorts. Yesterday John Browne said the gold market has been manipulated and if it were not, the price would be between $1,000 and $2,000 per ounce.

I am Chairman of the Gold Anti-Trust Action Committee. We have alleged gold price manipulation since February of 1999 when I was on CNBC (Ron Insana).

How about a debate with Mr. Browne and I on one side and two who disagree with us on the other?

Would be a fun one and get a HUGE audience.

All the best,

BILL MURPHY

CHAIRMAN

GOLD ANTI-TRUST ACTION COMMITTEE

Note: forwarded message attached.

===========

Mr. O

If fox news is supposed to be so fair and balanced, why does not Neil give 10 minutes air time to these highly highly respected bullion bugs regarding REAL money in these days of the liquidity crunch. I just dont get it. Is fox news, fair and balance, or this that just merely a matter of spin. WSY? Credibility on the line here my friend.

Derrick Michael Reid

Laguna Beach CA

Just love your show man, you are the best!!!!

===============

From:

"Derrick Michael Reid" <w2_5hs_3c_xfers@yahoo.com>

To:

dhuepoint@foxnews.com

Message contains attachments

Cavuto the Milk-Toast Puppy v Kudlow the Fed's Raw Raw Man.eml (63KB)

So Ms Dhue,

you waiting for that chump boyfriend of your for a gold bobble?

Well, open your eyes, Gold breached 800 enroute to 2750, and you do nothing to train that milk-toast-puppy, nor curb the junk-yard-dog.

Hey, take some canine training lesson, and get the dogs on the hunt.

Kisses

Derrick

Laguna Beach CA

see my other emails on "milk-toast puppy".

====================

Mr. O

If fox news is supposed to be so fair and balanced, why does not Neil give 10 minutes air time to these highly highly respected bullion bugs regarding REAL money in these days of the liquidity crunch. I just dont get it. Is fox news, fair and balance, or this that just merely a matter of spin. WSY? Credibility on the line here my friend.

Derrick Michael Reid

Laguna Beach CA

Hey, Neil,

Dude, what up?

You know, each day, you are a repeat repeat, Pavlov's dog. Cant you do anything other than regurgitation the ending numbers on the Dow or the Fed Fund. Why don't you try some real reporting, and here is one for you, Precious Metal Market Manipulation. Dare ya to change that whinny-butt whimper into a bark, you milk-toast puppy. Invite Mr. Bill Murphy on Gold Manipulation and Ted Butler on Silver Manipulation, and give your viewers, like me, other points of views, .......... you milk-toast puppy.

Derrick Michael Reid.

Laguna Beach CA

Mr. Bill Murphy c/o LePatron Lemetropolecafe <midasnh@aol.com>,

Mr. Ted Butler c/o contact@investmentrarities.com

The Manipulation Of The Gold Market

Submitted by Bill Murphy on Wed, 2005-11-16 08:00. Section: Essays

The key to understanding the manipulation of the gold market, this enormous scandal and fraud, is that it can be compared to a murder trial. In the United States a murderer can be put to death if he is found guilty beyond a reasonable doubt. Many times murder defendants are convicted based solely on "circumstantial" evidence because a reasonable person could reach no conclusion other than guilty.

For seven years GATA has discovered one piece of evidence after another supporting our long-held contention that the gold market is managed by certain central banks and their agents, the bullion banks. It is a price-fixing case involving some very powerful people and institutions … in fact it is a Gold Cartel. The U.S. attorney handling the Samsung conspiracy conviction said in an interview this fall that the United States had experienced an "epidemic" of price-fixing cases in the late 1990s. All GATA has done is uncovered one of them, the grandest of all.

For one to appreciate how this can go on and on and not be brought to the attention of the public, one need only to reflect on Enron and Refco. Before its initial public offering of stock, Refco was audited by the most highly regarded firms on Wall Street and nothing wrong was discovered. Yet look at what was really transpiring behind the scenes. Now the company is bankrupt and under criminal investigation.

That said, GATA does have its "smoking gun." It has to do with derivatives and central bank gold. The mainstream gold world says the central banks have nearly 32,000 tonnes of gold in their vaults (minus a small amount that has been sold in recent years or is on loan to gold producers for their hedging operations). GATA says the central banks have less than half of that -- the difference being what was clandestinely fed into the market to suppress the gold price over the last 10 years. The work of three respected GATA consultants -- Reg Howe, Frank Veneroso, and James Turk -- each using different methodologies, supports GATA's contention of vastly diminished central bank gold supply.

Veneroso made a presentation at GATA's African Gold Summit in Durban, South Africa, on May 10, 2001, laying out why the central bank gold loans are far higher than generally believed. This presentation, "Facts, Evidence and Logical Inference ... A Presentation On Gold Supply/Demand, Gold Derivatives and Gold Loans," may be reviewed at:

http://www.lemetropolecafe.com/pfv.cfm?pfvID=1525

Howe and Turk have done the same at their Internet sites:

http://www.goldensextant.com/ and http://www.goldmoney.com/.

Meanwhile the International Monetary Fund has instructed central banks to lie about their gold reserves -- to count gold loans and swaps as gold in their vaults. So as not to be so audacious without backup to validate our more than dramatic claim, let me explain. Canadian GATA supporter Andrew Hepburn posed the following question to the IMF in October 2001:

Why does the IMF insist that members record swapped gold as an asset when a legal change in ownership has occurred?

See http://groups.yahoo.com/group/gata/message/903

The IMF responded:

"This is not correct: the IMF in fact recommends that swapped gold be excluded from reserve assets. (See Data Template on International Reserves and Foreign Currency Liquidity, Operational Guidelines, para. 72, http://www.dsbb.imf.org/guide.htm"

(For more on this, see http://groups.yahoo.com/group/gata/message/904. The IMF link mentioned above is no longer operating. It was in 2001 as noted in the GATA dispatch.)

Yet a footnote on the Internet site of the central bank of the Philippines contradicts the IMF's claim and reveals it to be bogus:

"Beginning January 2000, in compliance with the requirements of the IMF's reserves and foreign currency liquidity template under the Special Data Dissemination Standard (SDDS), gold swaps undertaken by the BSP with non-central banks shall be treated as collateralized loans. Thus, gold under the swap arrangement remains to be part of reserves and a liability is deemed incurred corresponding to the proceeds of the swap."

(See http://www.bsp.gov.ph/statistics/sefi/fx-int.htm.)

The European Central Bank and other central banks corroborated exactly what the central bank of the Philippines declares about counting gold loans the same as gold in the vault.

The "smoking gun" part of this has to do with the gold derivatives on the books of the Bank for International Settlements in Switzerland. The gold establishment says the gold derivatives on those books have been associated with gold producer hedges. Yet in the last four years gold producers have reduced their hedges by more than 2,000 tonnes of gold, or more than 50 percent of their hedging at its peak. Consider this excerpt from a Reuters report from November 8, 2005:

"LONDON -- .... The Hedge Book report produced by Haliburton Mineral Services and industry consultants Virtual Metals said the so-called hedge impact of the global book fell by 1.0 million ounces to 52.8 million ounces. ... The global hedge impact in the July-September quarter was just more than half its level in the same quarter of 2001 when it peaked at 102.8 million ounces."

Meanwhile, gold derivatives have gone up during that period of time, not down. While these are complicated and technical, Howe updated GATA's evaluation of the BIS gold derivatives in a report he posted at GoldenSextant.com in June, "Gold Derivatives: Skewing the World":

"On May 20, 2005, the Bank for International Settlements released its regular semi-annual report on the over-the-counter derivatives of major banks and dealers in the G-10 countries for the period ending December 31, 2004. The total notional value of all gold derivatives rose from $318 billion at mid-year 2004 to $369 billion at year-end. As subsequently detailed in table 22A of the June issue of the BIS Quarterly Review, released June 13, 2005, forwards and swaps increased slightly from $129 to $132 billion while options rose dramatically from $189 to $237 billion."

Howe's report can be found here:

http://www.goldensextant.com/commentary29.html#anchor3776

The only explanation for the dichotomy between the reduced hedges and the increased gold derivatives on the books of the BIS is undisclosed lending of gold and writing of central bank call options associated with the price suppression scheme.

There is one other anecdotal point to make proving how right GATA has been all along and what it means for gold investors in the years to come. For years GATA has claimed that the key to the eventual surge in the price of gold was the rising physical demand for gold amid the diminishing supply of central bank gold used to suppress the price. The gold establishment has associated the rise in the price of gold over the years with the weakening of the U.S. dollar. GATA has claimed otherwise.

We said the Gold Cartel was using the action of the dollar for price-rigging purposes. GATA has said over and over that the price of gold could rise hundreds of dollars per ounce and the dollar do nothing relative to other currencies. We said it would happen when the gold cartel began to lose control of its price manipulation scheme.

Well. ...

The euro came into existence on January 1, 1999, at $1.17. The price of gold that day was $284. As this is written in mid November 2005, the euro approached $1.17 again while gold has rocketed $194 per ounce since the beginning of 1999.

Here's more that helps to prove GATA's case about the gold market. At the beginning of 2005 gold was $420 and the euro was $1.30. In mid November the euro was trading at $1.17. But the price of gold was $478. The argument that gold is tied to the dollar has gone the way of the Dodo bird. Of course, should the dollar crash, which it should, this can only help the gold price.

The price of gold is headed to well beyond $2,000 per ounce. GATA knows why.

Now you do too.

-----------

Bill Murphy is chairman of the Gold Anti-Trust Action Committee and proprietor of www.LeMetropoleCafe.com, an Internet site devoted to financial commentary with emphasis on the precious metals. He can be reached at

LePatron@LeMetropoleCafe.com

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

TED BUTLER COMMENTARY

August 21, 2007

Fighting Back

Make no mistake, the intent of the recent silver sell-off, was to liquidate as many leveraged traders as possible. It not only applied to silver, but many other commodities and currencies. A quick review of the Commitment of Traders (COT) market structure in the markets involved shows that whatever side the large non-commercial speculators (hedge funds and other traders) were most heavily weighted, the markets moved sharply the other way. Thus, the price moves in a great number of seemingly unrelated markets, from metals to soybeans to oil, moved against the large speculators. It was a perfectly executed campaign against the speculators.

Without question, the campaign was as much a resounding success for the commercial traders as it was a crushing defeat for the speculators. This can be seen in the record trading volumes and price violence. We must wait for the next COT reports in these commodities to see just how large a clean out occurred, but I am sure it was significant, especially in silver.

Silver experienced the most extreme and violent sell off of all. On a percentage basis, silver’s price fell the most of any market. Silver was more oversold than at any point in its history, according Relative Strength Indicators (RSI) and the amount by which silver fell below its moving averages.

The silver manipulators were ready and able to take unfair advantage of the weakness in other markets to collusively pull their bids in silver in order to let the price plummet and force leveraged traders to cough up long positions.

Absolutely nothing in the world of supply and demand was responsible for the big silver price sell-off. There was no big production increases, or fall-off in demand. Inventories didn’t change. This was all about paper contract shuffling.

At the heart of the manipulation is the glaring fact that separates silver from any other market - the concentrated short position in COMEX silver futures. It is this concentrated short position in COMEX silver that defines the manipulation and enables it to continue. Eliminate this concentrated short position, and the silver manipulation will end.

TIME TO ACT

Today, I’m going to report on the private undertaking I have referenced in recent articles and, in turn, ask your assistance in attacking the concentrated silver short position and terminating the silver manipulation. Many of you have written to me to suggest this and for me to lend some guidance.

I believe the concentrated short position, and silver manipulation, has been allowed to continue to exist due to a quirk in commodity law. That quirk, or catch, was that commodity law prohibits the regulators from publicly releasing the identity of the largest traders in any commodity. That’s why the CFTC only identifies the largest traders in every commodity as the "4 or less" and "8 or less" largest traders. This regulation was enacted many decades ago for the well-intended purpose of protecting the identity of large traders to prevent them being put in a compromised trading position.

While the original intent of this identity protection may have been valid, that same law was never intended to protect and shield the identity of those engaged in manipulation, I believe that’s what this regulation has morphed into. After all, the primary intent of commodity law is to prevent manipulation, which is exactly as it should be. Over time, there has been a movement towards more transparency as a desired objective of modern markets. Protecting the identity of large traders in commodity futures markets is at odds with the transparency we encourage in all other financial markets.

I believe the CFTC and the COMEX have used this archaic identity-protecting regulation to protect the silver manipulators, just as they have protected the manipulators by their failure in not acknowledging the concentrated short position. In my opinion, the regulators want to avoid disclosure and debate precisely because they can’t legitimately defend the concentration.

The purpose of my recent private undertaking was to circumvent the CFTC and the COMEX and go directly to whom I thought might be holding a significant short position in COMEX silver futures. This was not a brand new strategy. I did it a few years ago with AIG, the large insurance company. I wrote publicly and privately to Eliot Spitzer, the then-Attorney General of New York. The gist of my approach was, "what the heck is an insurance company doing speculating in the silver market?" Since that campaign, the price of silver is significantly higher and AIG has disappeared from any outward involvement in the silver market.

I decided to focus currently on Mocatta, for a number of reasons. Mocatta has a historical record of holding a large short position in COMEX silver futures, including holding a major short position against the Hunt Brothers’ long position in the fabled silver manipulation in 1980. Public reports at the time indicated that Mocatta was under extreme financial pressure in the spike in silver prices and was instrumental in getting the rules changed at the COMEX. This has been cited as attributing to the subsequent collapse. In my opinion, Mocatta has been a large silver short, on and off, ever since.

There’s no doubt that Mocatta is a leader, if not the largest dealer in silver in the world. They are the head of the London Silver Fix of LBMA, as well as a leading clearing member of the COMEX. Mocatta was sold in late 1997, to the Bank of Nova Scotia (Scotiabank) by Standard Chartered Bank of London, and now goes by the name ScotiaMocatta. I want to be very clear that Scotiabank is a highly respected financial institution, with an impressive 175-year old history and an excellent high reputation to match.

On June 25, I wrote (via e-mail) to the CEO of Scotiabank, Mr. Richard Waugh, to warn him that the silver market was manipulated by an unprecedented concentrated short position and that my research had indicated that his bank’s precious metals subsidiary, ScotiaMocatta, was probably involved. My intent was to put him on notice and do what I could do to undermine the silver manipulation. I wrote that my communication was private and it was not my intent to harm the good reputation of Scotiabank.

I was (somewhat) surprised to receive an acknowledgement from Scotiabank, the next day, June 26, from Mr. Waugh’s office, stating that they would review my comments with the department involved. That same day, I e-mailed the article that was published that day, ‘Blood From A Stone," to Mr. Waugh as it mentioned ScotiaMocatta and I thought it would be appropriate and helpful.

On July 16, I received a reply from Scotiabank, indicating that. they had reviewed my allegations and found no evidence of wrongdoing. The reply also indicated that they disagreed with my "reading" of the COT.

Inasmuch as I had not offered any interpretation of the COT, other than to state that the report indicated that there was a concentrated net short position of over 250 million ounces held by 4 or less traders, I wrote back the next day, July 17, to Mr. Waugh saying that I offered no interpretation but I was stating an incontrovertible fact. I then told him that the only issue was whether Mocatta held a significant short position in COMEX silver futures, either for its own account or as a clearing broker for a customer. If he declared that Mocatta was not short, I would take him at his word and drop the matter. But if he could not, or would not, state that Mocatta was not short, I would have to assume that they were short, as would any reasonable person. I also warned him, once again, of the great risk to the bank’s finances and reputation should it turn out that Mocatta was short silver, even if they claimed it was "hedged" with other derivatives.

On July 24, I sent Mr. Waugh the article of mine that was published that day, "Still The Same". In this article, I explained the silver manipulation in detail and described how the senior management of the large financial companies involved in the manipulation was probably unaware of their firms’ involvement. In truth, I wrote that article specifically with Scotiabank in mind, although it certainly applied to all the firms involved. The next day, Scotiabank responded, saying they were reviewing my additional comments and would respond to me.

On August 9, not having heard from Scotiabank, I wrote to Mr. Waugh, expressing my puzzlement over what was delaying his response, since manipulation was the most serious market crime possible and how this particular silver manipulation was a crime in progress. Once again, I wrote that this was a simple matter of determining whether Mocatta was short COMEX silver or not.

I also reiterated that even if Mocatta held offsetting hedges, that might not excuse manipulation, and how it was possible that the counter parties might disavow any counterbalancing offsets if manipulation was proven. Lastly, I pointed out that Scotiabank’s public earnings statements indicated a Value at Risk (VaR) of only $1.5 million a day for their entire commodity exposure, whereas if Mocatta did hold a significant short silver position on the COMEX, the true VaR could be a hundred times that amount, or more.

Scotiabank responded on August 15, that an additional and independent investigation found no wrongdoing on their part and they considered the matter now closed. I responded, the next day, that they did not provide any explanation to substantiate their finding, nor did they deny that they were short COMEX silver futures in a significant amount. I wrote that I planned to write of this matter in the near future and offered to send them advance copies of any article I wrote about them, if they requested I do so. They made no such request.

I’d like to fully explain my intent here. My intent is to help terminate the silver manipulation in any above board and legitimate manner I can think of. My intent is not to harm Scotiabank. It was precisely because I suspected Mocatta as a big silver short that I wrote to Scotiabank in the first place, looking to resolve the issue. After this exchange of correspondence over the past several weeks, my suspicions are even stronger.

I am convinced that silver is manipulated and I think I have explained the manipulation, in terms of commodity law. Now it is time to do more than explain. Because neither the CFTC nor the COMEX will do their job, and because they have shielded the big shorts, a new approach must be taken. That’s why I wrote to Scotiabank.

Now, someone might ask, "why should Scotiabank answer to Butler when he asks if they are short or not? I would answer that because the issue, possible manipulation, is important enough. If they were not short it would be foolish for them not to declare that fact. It’s not who is asking the question, it’s the nature of the question. They thought the issue was important enough to run two separate inquiries, including one that was independent.

The problem for Scotiabank, as well as for the CFTC and the COMEX, and the concentrated shorts is that they can’t allow a legitimate and open discussion of this issue. With the exception of gold, there is no other market that raises the troubling issues that silver does. When pressed, the CFTC came up with a long-winded and non-responsive reply that was hardly germane. They never answer simple questions with simple answers. The supposed self-regulator, the NYMEX/COMEX, does not even bother to answer, even when asked directly and publicly. That is shameful. Now that they are a public company, they must be forced to respond to this concentration matter.

I don’t think I am wrong, but anything is possible. However, the issue is important and specific enough that it deserves to be addressed. This is a matter that can be quickly resolved. So let’s try to resolve it. Because the entities involved don’t want to address this issue openly, everything possible must be done to bring this matter into the open. I am only one man and it is relatively easy for the entities protecting the silver shorts to ignore me. But there is great strength in numbers, and if many press them, it will be harder for them to pretend the matter is not important.

It is time for all interested parties to participate. It is time to contact the CFTC, the COMEX and Scotiabank and demand simple answers to simple questions. Please don’t include a laundry list of perceived wrongdoings in the world. This is about the concentrated silver short position and manipulation. The key is specificity. You must ask very specific questions. I’ll provide suggestions and e-mail addresses below. Of course, you can reference this article and send it along with your questions.

I don’t necessarily expect the concentrated shorts to cave-in and fold immediately, but I promise you that if the regulators can be forced to publicly discuss this matter, I am sure I can legitimately counter any defense or excuse they come up with. All I am asking is a opportunity to have this issue fully-aired, once and for all.

My e-mail exchange with Scotiabank was extremely polite and courteous, on their part and mine. It is important to maintain that. Even though this is about the silver concentrated short position, I appeal to gold investors to participate. There are many more gold investors and the more who write, the more effective it will be. Next to silver, gold comes closest to replicating silver on the concentration issue. If the concentrated short position in silver is resolved and the manipulation is broken, then it stands to reason that gold could benefit immensely, as many of the big traders short silver are also short gold. But I ask gold investors who write to refrain from introducing gold manipulation issues, as that widens the scope and gives the regulators more wiggle room.

In contact with Scotiabank, I would ask these questions;

Does ScotiaMocatta hold a significant short position in COMEX silver futures for itself or for customers?

Is it proper for Scotiabank to be speculating in silver?

Is Scotiabank properly reporting its risk profile in silver?

Please send to the attention of Mr. Richard Waugh, CEO

mail.president@scotiabank.com,

In any contact to the CFTC and the NYMEX/COMEX, I would ask these questions;

If a net concentrated silver short position, held by 4 or less traders, of the equivalent of over 260 million ounces is not manipulative to price, what amount would be manipulative?

Should a trader’s identity be shielded if allegations of manipulation are made?

Please list those markets where the net concentrated short position, held by 4 or less traders, is greater than 150 days of global production, as is the case in silver.