Jeff Nielson: When the world’s largest commodity futures “regulator” releases the results of a five-year probe; one expects to see a detailed, thorough, and well-reasoned analysis. What we see instead is a pathetic exercise in pseudo-logic – which could have been written in its entirety in a single afternoon. “Shallow” cannot begin to describe the lack of depth in this probe.
Indeed, one would not even attempt such a vacuous non-response to the question/issue of silver manipulation unless they were absolutely certain that their findings would not be questioned in the slightest – as poking holes in this drivel is proverbial “child’s play.” Thus in releasing such a farcical probe, this directly implies a totally corrupt (Corporate) media – one which only parrots, never questions.
Fortunately the CFTC has been kind of enough to place all of its pseudo-reasoning in bullet-point form, saving readers precious minutes of their lives which they would have otherwise wasted in going through its drivel line-by-line in order to expose this Big Lie. This makes the task of analysis simple: list these bogus arguments, expose the gigantic, unstated assumption (and omitted facts) upon which these “reasons” are based – and then translate them back into the Real World.
1) Silver cash and futures prices have risen dramatically between 2005 and 2007, with silver outperforming the gold, platinum and palladium markets, suggesting that silver futures prices are not depressed relative to other metals prices.
2) NYMEX silver futures prices tend to track closely the price of physical silver.
3) Concentration levels for the top four short futures traders in the silver market are comparable to those observed in the gold and copper futures markets, and generally are lower than the levels seen in the platinum and palladium futures markets.
4) The composition of the traders comprising the top four short futures traders, in terms of net positions, change over time. These traders represent a diverse group, and their futures positions are driven by an even more diverse group of customers.
5) There is no observable relationship between short-futures-trader concentration levels and silver prices.
6) There is a slightly positive relationship between the total net position of the large short futures traders and silver prices; this suggests that larger short futures positions are associated with higher, not lower prices.
All of this report is totally and completely predicated upon one, single assumption, with the exception of arguments (2), (3) and (4), which (because of their specific nature) are also based upon separate, false assumptions and missing facts.
The huge assumption upon which the entire CFTC report rests is that the silver market was “normal” at the time it commenced its sham-analysis, a market with supply and demand in balance, and prices in equilibrium. We know that this is an assumption in all of the CFTC’s reasoning, because never once does it attempt to address how its analysis would differ if onedid not assume a market in perfect balance.(...)Click here to continue reading the original ETFDailyNews.com article: CFTC Silver Probe: See-no-Evil, Hear-no-Evil, Speak-no-EvilYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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