Silver market analyst and manipulation exposer Ted Butler today addresses
the possibility that the U.S. government is the real party in interest in
JPMorganChase's seeming dominance of the silver market.
Butler writes that he still believes that JPM is rigging the silver market
for its own benefit, acquiring a huge position in real metal in anticipation
of much higher prices. He writes:
"It is unrealistic, in my opinion, to believe that the U.S.
government would single out silver as the one commodity it should be
stockpiling without any apparent reason or evidence it was doing so. That's
the problem with conspiracy theories -- once you go down that path, it never
ends and you have to suspend rational thinking to explain everything.
"As I said, I understand the need to rationalize the rotten price
behavior of silver over the past seven years. Further, I have gone on record
stating that the U.S. government did make a secret agreement with JPM on the
occasion of its takeover of Bear Stearns, but if the U.S. government has been
calling the shots in silver over the past seven years, then I'll go out and
buy a hat and eat it."
And yet Butler himself has acknowledged that, as the U.S. government formally
removed silver from U.S. coinage in 1965, President Lyndon B. Johnson warned
potential investors in the monetary metal that the U.S. government would
dishoard silver from its strategic stockpile as necessary to control the
metal's price:
http://www.gata.org/node/11601
Johnson said the objective of such dishoarding would be to keep U.S.
silver coinage in circulation and thus prevent it from being hoarded or
melted and sold as bullion. That is, the objective of this dishoarding was to
prevent devaluation of non-silver coinage and currency.
Maintaining the value of its currency always has been and always will
remain a powerful interest of any government.
But there are other possible explanations for U.S. government intervention
in the silver market -- like acquisition of metal for other countries, like
China, that hold huge amounts of U.S. government debt instruments and, as the
price of continuing to hold those debt instruments, might demand a hedge
against their devaluation.
In any case, whenever a market is plainly manipulated and the regulatory
agencies show no interest, the most plausible explanation is that, while it
may be operating through intermediaries, the actual manipulator is the U.S.
government, since, under the Gold Reserve Act of 1934, as amended in the
1970s, the U.S. government is fully authorized to rig surreptitiously any
market in the world:
https://www.treasury.gov/resource-center/inte...ages/esf-ind...
Such an explanation becomes still more plausible with the determined
refusal of mainstream financial news organizations to question governments
and central banks critically about their market interventions.
Butler's analysis is headlined "JPMorgan's Motivation" and it's
posted at GoldSeek's companion site, SilverSeek, here --
http://silverseek.com/commentary/jpmorgan%...otivation-17141
-- and at 24hGold here:
target="_blank"
http://www.24hgold.com/english/news-gol...otivation.as...
