JP Morgan Covering Silver Short Position

From: The National Inflation Association

There were reports out today that JP Morgan has now admitted to having their massive naked short position in silver and is taking steps to reduce it. According to the Financial Times in London, “JPMorgan has quietly reduced a large position in the US silver futures market which had been at the center of a controversy about its impact on global prices for the precious metal.” According to a person familiar with the matter, “The decision by JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver.” JP Morgan said in a statement, “It is absolutely incorrect to say or imply that the Nymex, CFTC or any other exchange or regulator has instructed or asked us to reduce our position.”

NIA, along with the Gold Anti-Trust Action Committee (GATA), has been at the forefront of helping expose JP Morgan’s silver price suppression scheme. Over a year ago on December 11th, 2009, NIA declared silver the best investment for the next decade at $17.40 per ounce. NIA said in its December 11th article, “It’s not a coincidence that the day silver reached its multi-decade high of over $21 per ounce in March of 2008, was the same day Bear Stearns failed. Bear Stearns was a holder of a massive short position in silver.”

NIA went on to say, “The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position.” NIA then said, “JP Morgan still holds the silver short position they inherited from Bear Stearns” and “JP Morgan will have to cover this short position or it could jeopardize their existence.”

On February 5th, 2010, JP Morgan was successful at manipulating the price of silver down to below $15 per ounce. On February 7th, NIA wrote an article entitled, “NIA Bets Big on Silver Price Recovery” in which it said, “NIA is betting big that this past week’s short-term decline in the paper price of silver was just a temporary wash out, before a huge surge in silver prices later in 2010. One of NIA’s co-founders purchased on Friday, 1,300 January 2011 $20 SLV call options at a price of $0.89.” These call options that NIA suggested went on to rise as much as 1,024% to a high this month of $10.

On March 25th, 2010, the CFTC held a hearing on position limits in precious metals. Bill Murphy of GATA (see NIA’s video page for an interview we conducted with Mr. Murphy on Thursday) was allowed to speak (within a five-minute time constraint). Right at the beginning of Murphy’s speech, there was a technical failure of the live television broadcast, which was mysteriously fixed as soon as he was done speaking. This did not stop Murphy, who was brave enough to present the evidence of Andrew Maguire, a former Goldman Sachs precious metals trader who on February 3rd became a whistle blower when he wrote to Eliud Ramirez, a senior investigator for the CFTC’s Enforcement Division, giving him the “heads up” for a “manipulative event” signaled for February 5th. Maguire described to the CFTC in February 3rd emails, exactly what would happen on February 5th (which did occur exactly like predicted), yet the CFTC refused to take any action against JP Morgan or the other conspirators.

Murphy was scheduled for several mainstream media television interviews after the CFTC hearings, but they were all abruptly canceled at once. In the weeks that followed, Murphy’s car was stolen, his web site was hacked, and he was punched with brass knuckles and knocked out cold less than two blocks from his house. As for Maguire, a couple of days after the CFTC hearings, he and his wife were involved in a bizarre hit-and-run car accident in London where a second car coming out of a side street struck their vehicle. The hit-and-run suspect then hit two more vehicles when he desperately attempted to flee, which resulted in a police chase with helicopters. The suspect was nabbed, yet surprisingly, his name was never released and it was never made known if charges were filed.

On April 3rd, 2010, with silver at $17.89 per ounce, NIA wrote an article entitled, “Silver Short Squeeze Could Be Imminent”. In this article, NIA said, “With the spotlight now on JP Morgan, NIA believes they will be less likely to naked short silver at these levels and manipulate the price down like in February. With the mainstream media blackout, it is important for NIA members to work harder than ever to spread the word and help expose what could be the largest fraud in the history of the world.”

On May 13th, 2010, NIA released its critically acclaimed documentary ‘Meltup’, which featured our in-depth research on JP Morgan’s silver price suppression scheme. Thanks to the help of tens of thousands of NIA members who worked tirelessly to spread the word about ‘Meltup’, nearly 1 million people saw the documentary and became educated to the truth about JP Morgan’s silver manipulation. Without the hard work of NIA members, JP Morgan would have went on naked shorting silver for years and the topic would have never become mainstream.

In ‘Meltup’, NIA’s President Gerard Adams stated, “The current gold/silver ratio of 64 wouldn’t be possible unless silver prices were being held artificially low through manipulation. I don’t believe it is possible for the silver that JP Morgan is short to be backed by physical silver. Most likely, JP Morgan has been naked shorting silver, by selling paper silver that doesn’t physically exist.” Since the release of ‘Meltup’, the gold/silver ratio has fallen by a shocking 27% down to 47. Within the next few years, NIA expects the gold/silver ratio to at least fall to 16, which will mean another three times increase in the purchasing power of those who own silver. In fact, because silver prices have been held artificially low for so long by JP Morgan’s manipulation, there is a chance the gold/silver ratio will over swing to the downside and decline to 10 or lower this decade.

Throughout world history, there have been 46 billion ounces of silver produced compared to 5 billion ounces of gold. Although gold gets all of the headlines in the mainstream media, silver shares all of the same monetary qualities as gold. Based on historical production ratios, a gold/silver ratio of 10 down the road could certainly be realistic. In fact, considering that most of the silver ever produced has been consumed by manufacturing, a gold/silver ratio of much less than 10 is possible. Worldwide inventories of silver have declined 90% since 1940 from 10 billion ounces down to approximately 1 billion ounces today. NIA believes that a major shortage of physical silver is in the process of developing.

On September 9th, 2010, NIA released an article entitled, “Is JP Morgan’s Silver Manipulation Over?”. In this article, we discussed how JP Morgan was winding down their proprietary trading desks, which we felt were responsible for the silver manipulation. We stated that we were “hopeful but skeptical that the manipulation is coming to an end” and “cautiously optimistic at this time”. Since September 9th, the price of silver has gained over 50% and is holding strong near $30 per ounce. There have been no noticeable manipulative takedown attempts by JP Morgan.

NIA estimates that over the past 30 days, JP Morgan has covered approximately 4,000 silver contracts, which has corresponded with about a $4 per ounce upward move in the price of silver. We estimate JP Morgan to still be short approximately 26,000 silver contracts or 130 million ounces of silver, which equals about 18% of worldwide annual silver production from mining of 709.6 million ounces. If JP Morgan covers their entire silver short position and the price of silver was to continue rising by $1 for every 1,000 silver contracts that JP Morgan covers, silver would rise to $56 per ounce.

JP Morgan appears to be covering its shorts in a very managed and orderly way. We are not yet seeing anything that resembles a short squeeze, although one could occur at any time. If we see a major silver shortage and a real short squeeze, silver could literally rise to hundreds of dollars per ounce overnight. Silver’s all time high of $49.45 per ounce adjusted to the CPI equals $139 per ounce in today’s dollars. As all NIA members know, the CPI understates inflation through geometric weighting and hedonics. The real inflation adjusted all time high for silver is over $400 per ounce.

With almost everybody who has ever purchased silver being up on silver in terms of dollars, it is possible we could see silver prices take a breather in the short-term. NIA is hoping for a short-term pullback, but with so many investors waiting to buy on dips, there is a chance that a large short-term pullback will never occur. NIA is very pleased that for the first time in many years, silver prices appear to be trading based on free market forces and not the manipulation of JP Morgan.

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us.


Celebrating International Human Rights Day -Update – Thursday, December 16, 2010

By: Ashraf Ramelah
Voice of the Copts

Capitol Visitor Center

Human Rights in the Middle East: What the West Needs to Know Capitol Visitor Center First Street N.E & East Capitol Street N.E Washington, DC 20515 Room SVC 209-08.

Every person on the planet is entitled to human rights. The concept of human rights was developed after World War II in response to the Holocaust. In 1948, the United Nations General Assembly adopted the Universal Declaration of Human Rights. The concept of rights is not new and existed in pre-modern cultures in ancient Greek and Roman times where we find various indicators of rights, although not as a universal issue.

In Europe, during the Renaissance, we find the Twelve Articles which are considered the first record concerning human rights. In the 18th century, fundamental civil rights and civil freedoms were included in the Virginia Declaration of Rights.

Today the world still struggles with human rights. While the majority of Westerners acknowledges human rights and fights to defend them, the majority of the Middle East (except the State of Israel) denies these rights. Western governments and NGOs have great concern over human rights abuses in the Middle East resulting in politically correct reports and soft condemnation.

In preparing this conference we bring together scholars, authors, activists, organizers and journalists concentrating in the area of human rights and we hope to offer a perspective which demands a much firmer approach by the U.S. and other Western governments to the issues.

At this point we have not taken the real actions necessary to effectively defend human rights around the world. It is unacceptable that we continue to overlook human rights violations.

This is the time to act!
Thursday, December 16, 2010

Conference Program Moderator – Sara N. Stern
Founder and President, EMET
Iran The right to stone women

Kenneth Timmerman
A journalist, political writer, executive director of the Foundation for Democracy in Iran
Will There Be Christmas in Iraq?

12:00 p.m.
Ashraf Ramelah

Voice of the Copts Founder and President
Opening Remarks

12:10 p.m.
Pamela Geller

Editor and Publisher of Atlas Shrugs
Executive Director FDI SIOA
Encroaching Shariah in America

12:30 p.m.
Tawfik Hamid

Author of Inside Jihad: Understanding and Confronting Radical Islam
Do We Need Democracy in the Middle East?

12:50 p.m.
Faith McDonnell

Director of the Religious Liberty Program at the Institute on Religion and Democracy in Washington, DC
Human Rights in the Middle East: Lessons from 14 years of Advocacy

1:10 p.m.
Jordan Sekulow

Director of Policy and International Operation
Defending the Persecuted: The ACLJ’s Legal Defense of Christian Minoritie

1:30 p.m. – 1:50 p.m.

1:50 p.m
Robert Spencer

Director of Jihad Watch
Author of The Truth About Muhammad

2:10 p.m.
Ali Ayami

Director of Center for Democracy and Human Rights in Saudi Arabia
Human Rights Under the Saudi-Wahhabi Rule

2:30 p.m.
Nazir Bhatti

President Pakistan Chistian Congress
Statement Concerning Asia Bibi

2:45 p.m.
Ahmar Mustikhan

American Friends of Balochistan
Human Rights Scene in Balochistan

3:00 p.m.
Ashraf Ramelah

Closing: Call to Action

3:10 p.m.
Audience Q & A

4:00 p.m.
Thank You for Participating


Financial News Update – 12/14/10


Schlafly: USA Should Halt All Funding For UN ‘Global Warming’ Scam

Santelli: Clarity from Fed? No. Inflation? Yes

Armed Motorcycle Bandit Nabs $1.5 Million in Casino Heist


New spending bill totals $1.1 TRILLION!

$575 million PER PAGE

6,488 earmarks

McConnell fumes: ‘No one has seen it’

Reid threatens to keep Congress into next year

Detroit Is Halting Garbage Pickup, Police Patrols In 20% Of City: Expect Bankruptcy In 2011

NASA sets new course

Meet The Most Unemployed Person In America

CHART OF THE DAY: The One Inflation Number That Terrifies Chinese Officials

Hussman: Warning, This Is An Awful Time To Invest

The Most Important Part Of Obamacare Was Just Declared Unconstitutional

RIDICULOUS MILITARY SPENDING: 12 Facts That Show America Can’t Afford To Police The World Anymore

Cancun in a nutshell: nothing achieved but it’s a Big PR Success (RE: The Global Money Scam) (Hat Tip: Jean Stoner)

Obama trying to transfer 1.5% of US GDP to UN for climate change. (Hat Tip: Jean Stoner)

Grounds for hope for the climate change agenda (George Soros says…UN Needs the Money) (Hat Tip: Jean Stoner)

Environmentalists Gone Wild? 8 Observations From The Cancun Climate Conference (Hat Tip: Jean Stoner)

Gold Surges, Bonds Rally, And Bulls Totally Blow It: Here’s What You Need To Know

11 Huge Geopolitical Threats That You’re Probably Ignoring

Wikileaks Shows How The IRA Used The Celtic Banking Bubble Buy Up Foreign Properties

Bears Draw More Blood From Crashing Netflix

The Senate Just Got Its 60 Votes To Pass The Tax Deal

JP Morgan Cuts Back on US Silver Futures (Hat Tip: Bix Weir)

JP Morgan Admits, Reduces Massive Silver Short Position, Proves Conspiracy Theorists Correct (Hat Tip: Jean Stoner)

Moody’s May Cut US Rating on Tax Package (Hat Tip: Jean Stoner)

IBM pitches ‘smart’ cities as planet savers (Hat Tip: Brian B.)

Interesting take on taking money from the rich

Scarcity Memes Rev Up?

Neil Armstrong ‘Speaks’

Audit the Fed in 2011

Reid attaches S510 Food Bill to Military Construction and Veterans Affairs Act H.R. 3082 (Hat Tip: Jean Stoner)

Obama’s Health-Care Law Ruled Unconstitutional Over Insurance Requirement

Green Jobs Not Growing As Expected

Easter Egg Out Of The BIS: US Banks Are On The Hook To The PIIGS By Over $350 Billion (Hat Tip: Jean Stoner)

Lame-Duck Bailouts for Ethanol and Wind? (Here’s what’s being sneaked into the tax deal) (Hat Tip: Jean Stoner)

About The Healthcare Ruling – Ken Cuccinelli (Hat Tip: Jean Stoner)

Detroit to offer incentives for residents to relocate (Hat Tip: Jean Stoner)

24 Signs That All Of America Is Becoming Just Like Detroit (Hat Tip: Jean Stoner)

GM Foundation Donates $2 Million to Community Centers (Detroit) (Hat Tip: Jean Stoner)

The Bill for Protecting Detroit’s Mayor: $1.35 Million (Hat Tip: Jean Stoner)

UK: Gangs and hardcore activists behind violence (Hat Tip: Nancy Jacques)

Suit: Chase Bank ransacked home of man on his death bed (Hat Tip: Brian B.)

Will Obama’s Re-Election Be the First Billion Dollar Campaign? (Hat Tip: Brian B.)

Bond bubble about to burst (Hat Tip: Jean Stoner)

China Tries to Shore Up India Ties

Moody’s says Spain banking outlook “negative” (Hat Tip: Jean Stoner)

Huge Senate majority votes to advance $858B tax package (5 R’s Vote NO) (Hat Tip: Jean Stoner)

Britain’s Left Are Panicking (Hat Tip: Jean Stoner)

Afghan gold mining project approved (Hat Tip: Jean Stoner)

Morning Bell: Another Victory on the Road to Repeal

States Should Not Be Forced to Unionize

Breaking Health Care Research: A New Way Forward in Medicare Reform

Guess Who Got Eric Holder’s Briefs in a Bundle? (Hat Tip: Jean Stoner)

This Awesome Brookings Presentation Explains Why The Monster Deleveraging Wave Still Has Way More To Go

Jim Rogers May Own The Euro, But He’s Really Betting On The Renminbi

US sues school over denial of Muslim pilgrimage (Hat Tip: Jean Stoner/Nancy Jacques/Brian B.)

Medicaid cuts: teeth pulled, transplant called off (Hat Tip: Nancy Jacques)

Why DeMint thinks it stinks.

Best Buy Plunges Most in 8 Years After Cutting Profit Forecast

Airline Profits to Drop 40% on Taxes, Oil, Group Says

U.S. Foreclosure Prevention Falls Short, Watchdog Panel Finds

Canadians With More Debt Than U.S. Spark Policy Makers’ Warning

Berlusconi Survives Confidence Vote as Students Riot in Rome

Obamacare, Spending Bill Face Rocky Road

AG Predicts High Court ‘Fight’ Over Health

Health Care Law Battle Turns to Florida

Retail Sales Beat Expectations in November


Issa uncomfortable

Space ‘Superfund’ needed to clean up orbiting debris

World’s 5 biggest airlines now from Asia, Latin America

Foreigners flock to Florida real estate bargains

MCDONALD’S chief attacks children’s meal ‘food police’

SCROOGE: YAHOO preparing to lay off 700 workers

Virginia AG Cuccinelli: Today’s Ruling Eliminates Funding Mechanism for Obamacare (Video)

Stunner. Robert Gibbs Dismisses Today’s Suit Finding Obamacare Unconstitutional (Video)

Operation Buck Up: Stop the DREAM Act illegal alien student bailout

10 Signs That Confidence In U.S. Treasuries Is Dying And That Financial Armageddon May Be Approaching

He Sent ‘Guerrillas’: ‘Puppet Master’ George Soros — Influence & Funding of USA Financial Reform ‘Revolution’

A Soros Story: Recounts, Coincidences, and Connections

Food, Clothing Lead Rising British Inflation


In Praise of Junk Silver

Derivatives: The Quadrillion Dollar Financial Casino Completely Dominated By The Big International Banks

China Overbuilding to ‘Hit a Wall’: Chanos

The Human Toll of America’s New Ghost Towns. With its incredibly high foreclosure rate, Las Vegas has become the Poster Child of the housing bust.

New Madoff lawsuits seek $40 Billion …from banks and hedge funds.

Recession Lasting Until 2018 Is Worth Exploring: William Pesek

Stocks End Mixed Ahead Of Senate Vote On Tax Deal

Oil Prices Settle Higher After OPEC Meeting

Treasury Prices Get A Lift After Fed Buys Bonds (“Gee, if I pay my VISA bill with my Mastercard, then my financial problems will be solved!”)

Ambrose Evans-Pritchard: Eurozone In Bad Need Of An Undertaker

Roger Weigand: Phase Two Of This Greater Depression Begins Now

“If the Democrats believe Clinton’s tax increases led to a boom economy and Bush’s tax cuts destroyed the economy, why do they want to extend the Bush tax rates?” – Rush Limbaugh