CFTC: the Common Fraud Training Committee

(The Silver Investor's Best Friend! Oh yes! )

Silver Stock Report

by Jason Hommel, January 18th, 2010

If you ever write to someone, like me, to say that you disagree with them, you should at least be able to say why. I do, and I will. Here's an example: I think futures contracts are a form of fraud because there are more paper contracts than real silver, and I think "regulating" fraud is simply fraud on top of fraud.

So far, nobody has demonstrated any capacity to explain how new position limits on metals, even applied to short sellers, would end the endless short selling. Nobody has explained how the Commodity Futures Trading Commission (CFTC) would be able to detect, and/or catch, and/or prevent an entity like JP Morgan from setting up many dummy shell corporations to short all the silver contracts that they wanted to avoid and get around any new regulation.

Therefore, my view is that new position limits contemplated by the CFTC would be irrelevant. CFTC regulation of short positions is impossible and a waste of time. What the CFTC has been capable of doing so far is to criminalize and outlaw "excessive" long positions, as if it's somehow criminal to spend your money on what you want.

Furthermore, if I acted or believed as if I could help convince the CFTC to do a "better job" of regulating silver futures contracts, doing so would merely help the deception. Therefore, I have no interest in trying to "be nice" to the CFTC in the hopes that my tone would have a meaningful impact on the silver market.

What are the sayings that come to mind? You can put lipstick on a pig, but it's still a pig.

"Regulating" futures contracts is a doubly fraudulent concept to begin with. The so-called regulation makes futures appear more honorable than they are, but it is all a deception. The CFTC is the lipstick on the pig of futures contracts. I have no interest in helping to apply the lipstick. My ministry is one of pointing out that the pig is still a pig, despite the appearances of lipstick!

The CFTC's real job is to help make the prostitute look more tempting. People will falsely reason to themselves, "Futures contracts must be safe, after all, they are regulated by the CFTC who oversees the markets and prevents manipulation from taking place." But it's all just lies upon lies.

How can anyone deliver between 600 to 800 million ounces of silver in futures contracts, when there are only about 50 million ounces in the warehouses? Easy! Most futures contract holders, only putting down a small fraction of the value of the silver, never can afford, nor do they intend, to take delivery, so the scam of "endless" paper silver contracts continues.

What's worse is that the BIS, the Bank of International Settlements, released a report showing that "over the counter", "other precious metals" (mostly all silver) derivatives, (which are not futures contracts, which are IN ADDITION TO FUTURES CONTRACTS), could expand by a notional value of over $107 billion in a mere 6 months! The BIS report fails to mention that the total global annual production of silver, at 600 million ounces, is worth less than $11 billion!

The unregulated "over the counter" silver bullion market is ten times larger than the futures contracts the CFTC is authorized to regulate, further making the CFTC completely irrelevant, and in fact, impotent as far as regulation goes, even if they could regulate futures, which they can't. They only help to prosecute the righteous, not the criminal.

Some people say that our CFTC Appreciation Medallion is offensive. But the CFTC is part of the group that allows cheap silver to exist. We should thank them and bless them for creating this wonderful investment opportunity that exists only for the little guys, and is completely closed to all billionaires. Billionaires can't buy silver because they will be prosecuted for having an "illegal" long position exceeding 1500 contracts!

For those who understand the nature and limits of the fraud, and why it can't last forever, there is the realization of silver as the best investment opportunity in the history of humanity.


Adrian Douglas released a report explaining how and why banks hold more gold than exists for their customers who never take delivery in his latest article:

Adrian Douglas: The 'tiny' gold market is actually the world's biggest

By "biggest" he means that the daily volume turnover of "gold held on account" by bullion banks and brokers is about 3 times larger than oil. But the daily gold turnover is about as much as annual gold production, indicating that it's mostly all fraud.


Here are two more examples of good men prosecuted to the fullest extent of creative law:

Walter Burien had his 5 year old son kidnapped by police in 2005, and to this day has not seen his son. He is asking, no, challenging, any righteous FBI agent or US Attorney to come to his aid in his case.

Walter writes: I just launched my new video "The Only Game in Town - The Way Our Government Can Be" as a $3 click per view for a 24-hour pass

It hits the nail on the head and shows the comprehension on how all taxation can be phased out. Not reduced but eliminated and have a thriving economy to boot!


Martin Armstrong was put in prison and now writes one of the best financial newsletters exposing corruption in the business--still writing from prison.

His latest letter, Behind the Curtain - The Full Monty

starts off explaining the corruption of the CFTC.


It's all so utterly typical. The government always does the opposite of the intended, or proposed effect.

Government healthcare will destroy healthcare.

Government welfare creates generations of people addicted to welfare.

Government bail outs for big banks encourages bankrupt behavior of leaders of big banks.

Making war on people all over the world makes the US less safe as it increases retaliation called blowback.

Someone should come up with a "strengthen the dollar" bill in congress that mandates the US government pay for everything only in silver or gold coin. Why? Obviously, it would reveal the fraud of the dollar, and destroy it!

So, the CFTC is supposed to regulate markets to make sure they are fair? No. The CFTC guarantees the markets remain unfair, that the government granted monopoly of printing paper money is protected.

Again, if you write to say you disagree with me, please have the courtesy to say WHY. And by WHY, I don't mean to suggest that you simply state that you believe I'm a pompous fool. No, please suggest to me how the CFTC would actually be able to detect, catch, and prosecute dummy corporations set up by JP Morgan, in the event that position limits are ever applied to the short sellers. Simply saying that you think I'm a pompous fool, does not count as a reason why you disagree with me.


Jason Hommel