Not many can identify and explain the gold and silver market manipulation better than Adrian.

Regards - VHF

-

GATA Credited for esposing gold, silver market manipulation

By Adrian Douglas

Wednesday, February 9, 2011

In a report published yesterday and dispatched by GATA (>http://www.gata.org/node/8466) but the CFTC had taken no action, so Maguire turned to GATA.

The public is under the false impression that all that is required to expose fraud and corruption is for a whistleblower to come forward. But in fact whistleblowers are typically ignored and marginalized until it is too late.

The world did not hear what Sherron Watkins had to say about Enron until the company had already collapsed. The world never knew of Harry Markopoulos until after Bernard Madoff's Ponzi scheme crashed and burned. The public did not hear of Cynthia Cooper until World.com collapsed, and Colleen Rowley's warnings to her bosses at the FBI about terrorist activities were not known until after September 11, 2001.

On the other hand GATA has made history. For the first time the world was made aware of a financial market whistleblower before the fraud blew up and before the authorities took action against it. Now law firms are suing for damages even with the crime still in progress.

After he gave his evidence to the CFTC, Maguire expected to be invited to the commission's March 25, 2010, hearing on precious metals markets. At the last minute Maguire was refused an invitation. He was extremely frustrated and so he contacted me, a member of GATA's Board of Directors, and revealed the evidence he had given to the CFTC with respect to who is manipulating the gold and silver markets and how it is done.

It was evident that the CFTC was trying to ignore what was going on.

Consequently in his own testimony to the CFTC's hearing last March 25 GATA Chairman Bill Murphy revealed Maguire's warning to the commission and produced copies of the e-mail correspondence between Maguire and the CFTC's Enforcement Department, which had been met with total inaction. Murphy identified the ringleaders as JPMorgan Chase and HSBC.

Stunningly the financial journalists who attended the CFTC hearing did not want to talk to Murphy and me after these revelations. Interviews that had been arranged with GATA were mysteriously canceled. But the media blackouts failed to put the genie back in the bottle.

Major law firms clamored to talk to Maguire. Investors who had collectively lost billions of dollars because of precious metals market manipulation sought justice and compensation. Just days after CFTC Commissioner Bart Chilton publicly stated that in his opinion certain entities had sought fraudulently to control and manipulate the price of silver, the litigation floodgates opened.

Like the Keystone Cops, the CFTC is still purportedly pursuing a silver market manipulation investigation that began in September 2008, while private law firms have already investigated and filed suit.

With Enron and World.com the public found out too late to sell its shares or, even better, to sell short the stocks involved in the frauds. But the case of the precious metals is an extraordinary opportunity that has never arisen before. Maguire's whistleblowing and the evidence of silver and gold price suppression were put on record by GATA in the office of the market regulator and beamed around the world by Webcast. Many law firms subsequently filed class-action lawsuits against JPMorgan and HSBC. And a CFTC commissioner confirmed that fraud had taken place and has urged that it be prosecuted.

The price action in the precious metals since March 25 last year shows that many investors are seizing this historic opportunity, investors including the nations of Russia, China, and India. A few market analysts are taking the ostrich approach, preferring to believe that Maguire does not exist, that GATA is just a bunch of conspiracy theorists, that these private law firms suing major bullion banks at their own expense are half crazy, and that CFTC Commissioner Chilton must be mistaken.

We can lament how it would have been nice to have shorted Enron, World.com, Bear Stearns, or Lehman Brothers, but we never really had the opportunity because by the time we knew about the frauds it was too late. If investors don't jump on the best investment opportunity in history and buy all the physical gold and silver they can afford, at least it can never be claimed that they couldn't have known about it.

Anybody who doesn't profit from the coming precious metals bonanza has only himself to blame.