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Message:: [QUOTE="SilverSurfer, post: 851889, member: 21603"]From the CFTC meeting..... [FONT=Arial, Verdana, Helvetica, sans-serif]====[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]Lothian called us, GATA, and me, & long physical investors, who believe in conspiracy theories, and distrust the markets, "political parasites" and worse!?  I was a bit outraged, of course.[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]He said accountability should increase, perhaps hinting that we should be held accountable somehow.[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif](I personally had a chance to speak to him a bit at the break.  I asked him about the huge gap between physical and the amount of paper sold, and was it not dangerous?  He replied he thought "of course not".  Then I asked him at what level would it be of a concern?  Would it be ok to sell 100 times more silver on paper than the physical?  A 1000?  A million times as much?  Where do you draw the line.  At that point, he seemed confused and flustered, and it appeared time to get back to the event.)[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]I noted at one point that CFTC Commissioner Dunn noted that he was a long time personal friend of Lothian.[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]=====[/FONT] [FONT=Arial, Verdana, Helvetica, sans-serif]CFTC question:  "Can the shorts deliver?"[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]Jeff Christian attempts a 3 point answer:[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]1.  They have never defaulted in the past.[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]2.  There is a cash delivery settlement option.[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]3.  They hedge OTC longs.[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]=====[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]Harvey (GATA):  Says there is huge risk!  China and Russia can take and clean out COMEX!  TheY, COMEX, WILL have a failure![/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]Adrian Douglas (supporter to Harvey) piped in, and was almost shut down by Gensler, as he was not slated to testify, but in the public audience, but had a microphone.  Gensler said "No" a and then clarified with, "No, I don't know who you are."[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]Adrian:  $5.4 trillion in London Gold; that's NOT METAL; it's a fractional only system.  The LBMA admits this is "unallocated" and that it's "unsecured".  It's not physical, they can't hedge, it's paper hedging paper, nothing but a Ponzi scheme![/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif](Big truthful testimony after a day of lies, half truths, and willful obfuscation.)[/FONT][FONT=Arial, Verdana, Helvetica, sans-serif][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]Jeff Christian tried to retort, admitted that there is 100 times as much paper as physical, and seemed to get confused at one point.[/FONT] [FONT=Arial, Verdana, Helvetica, sans-serif](I'd note that every trader is a "bona fide hedger" since it's perfectly fine to hedge away your risk of holding dollars, by being a long holder of physical silver and gold, or even futures contracts.  But that's not what they mean by "bona fide hedger" which qualifies for the excemptions; they mean if you "have a long risk" that you can offset it with shorts in excess of the position limits.  But I'll also note that nobody is forcing these banks to buy long gold and silver, and if they don't want that risk, they simply don't have to take it!  But I also believe these banks are certainly NOT holding excessive amounts of gold and silver like they claim; they don't have enough to back all their client accounts; as can clearly be seen in the BIS reports where they have over $200 billion in "other precious metals" notional value of OTC derivatives, that's about 12 billion ounces of silver, or 24 years of mine supply that they owe, and cleary cannot have; that's their risk!)[/FONT] [FONT=Arial, Verdana, Helvetica, sans-serif]What's ironic about Jeff's comments is that the gold books of the bullion banks are NOT public information; and probably not even the CFTC commissioners can get a good look at them.  Furthermore, it's ludacrous to think that miners have hedged silver 24 years into the future, as an explanation for the $200 billion OTC market size in "other precious metals", as reported by the BIS, the Bank of International Settlements.  If Jeff has even seen a gold book, that shows who he is the apologist for; those doing the manipulation: namely, JP Morgan.[/FONT] [FONT=Arial, Verdana, Helvetica, sans-serif]Again, the BIS numbers say the "other precious metals" notional liability is $203 billion, which, in silver terms, is about 12 billion ounces.  This means they lose $12 billion for every dollar that silver prices rise.  This means they stand to lose $120 billion if silver prices rise $10.  They stand to lose $203 billion if silver prices merely double, and if no new buyers enter the market, and that could result merely from their own short covering.[/FONT] What proof more do you need????[/QUOTE]

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