Harvey Organ wrote this to Commissioner O'Malia yesterday:
harveyorgan.blogspot.com
Dear Commissioner O'Malia:
It is of great concern tonight, that I learned that you wished to delay the implementation of position limits so that you can obtain more trading data from the hedge funds and swap dealers.
I know that you are requesting a delay on all commodities. However the situation in the precious metals arena needs your attention urgently.
The investigation into the silver probe began in Sept 2008 and as of yet, the complaintants, including myself, have not received any answer to our question as how one or two banks can accumulate such a massive shortage of unbacked silver comex contracts and how this action is not deemed manipulative!.
Mr Chilton stated that he was going to address this problem unilaterally, if the commission dilly-dallied any longer.
Commissioner O'Malia, in the CFTC hearings on March 25.2010, you asked me if I thought that there could be a default at the comex. I responded to you in the affirmative stating that I could forsee huge demand for silver and gold developing from countries like Russia, China, and South Korea and their demand could, and probably would, drain all of the comex inventory as their demand for these metals is unsatiable!!
South Korea announced this week that they were going to diversify their official reserves from usa dollar holdings into gold.
Russia has been accumulating metal monthly. Today we heard that the enemy of the USA, Iran, has now achieved record levels of gold as official reserves.
Here is the official announcement on both of these stories:
Russia’s Central bank has reported adding 700,000 ozs (21.77 tonnes) to its FX Reserves in September. In a development certain to boost gold’s popularity in influential circles, the Iranian Central Bank Governor has boasted the country’s gold holdings are "unprecedented". See
kuwaitsamachar.com.
It seems that the manipulative huge short position implemented by JPMorgan and HSBC has kept the price of gold and silver too low. The resultant action is the accumulation of physical precious metals by sovereign accounts and these countries then load the boat with the metal and move it onto their shores.
A default would be catastrophic but it looks to me like that is where it is heading. You cannot say we did not warn you.
There is another subject that is deeply disturbing.
It seems that Judge Painter who is retiring from the CFTC handed over all of his cases and not one of these cases was the silver manipulation case.
Judge Painter is alleging that Judge Levine told him that there was not going to be any findings for a complaintant at any CFTC hearing. It seems that Judge Levine is handling the Silver probe case, and I guess that explains why we have not seen any findings on the matter.
I urge you to clean this matter up immediately.
With the scandal at the MBS arena starting to pick up speed, I feel it is imperative that you set an example such that we have fair and non manipulative markets. By delaying the implementation of position limits, and the implementation of the elimination of phony exemptions to JPmorgan and HSBC. you send a clear message to all of world that you encourage manipulation to continue on USA soil. We need free and fair and fair markets. It seems that we are getting just the opposite.
I encourage you to vote forposition limits on silver and gold and the elimination of all of those phony exemptions to the big banks with their massive unbacked paper shorts.
Sincerely
Harvey Organ
Harvey did great jobs by placing pressures on CFTC. |
