this is ted butler's interpretation of bart chilton's recent statement. he thinks chilton and gensler are actually going to do something about manipulation, but i keep conjuring up the image of inspector clouseau lecturing a street peddler while the bank is being robbed behind him:

I’d like to analyze the significance of Commissioner Chilton’s statement. When I first started reading it, I raced through it, looking for the words I have read in so many communications from the CFTC over the past two decades. Those words, of course, were always “and we can find no credible evidence of a manipulation in the silver market.” Well guess what? For the first time ever, those words were missing. Instead, words to the effect, “of investing an incredible amount of energy and resources, of leaving no stone unturned in our year-long aggressive investigation, and if we find anything illegal, we will prosecute, etc.” That’s a far cry from what has been said in the past.

No one spends an incredible amount of energy and resources investigating any matter that is not credible. That’s the key point. At the very least, Chilton’s statement indicates that the Commission takes my allegations seriously. That’s because the allegations are well-founded. I’ve always used their own public data, so they can’t claim it is bogus. I’ve always argued in accordance with their own principles and historical findings on concentration, manipulation and position limits. I’ve always relied on common sense and the intent of commodity law. How could they possibly argue with that?

Besides, I never even asked them to investigate silver for a third time in five years; that was their choice. All I asked was a very simple question, namely, how could one or two US banks be short 25% of the world production of silver (or any commodity) and that not constitute manipulation? In one full year, neither the CFTC nor anyone else has been able to come close to legitimately answer that question. That’s because there is no legitimate answer. Faced with having to answer a question to which there is no legitimate answer, do the next best thing – investigate.

I’m going to resist attacking the CFTC on this matter. I want to take the high road. I know this is a major market problem with a solution that involves serious complications and repercussions. That’s why I’ve persisted for 25 years. Certainly the Commission must tread carefully. But it still must confront this silver manipulation. I’m sincere when I say I am more interested in seeing this manipulation terminated than I am in extracting my pound of flesh for two decades of regulatory failure. What’s most important now is for the Commission to recognize that this is very much a crime in progress. A little old lady is still being mugged on the street and the police have no higher priority than stopping the crime first and investigating later.

I think the intent of Commissioner Chilton’s statement may be different than first assumed. I don’t think it was solely intended to provide an update to those who had been inquiring about the investigation. I think it was intended as a warning to the shorts. Intention aside, the message to the big shorts is that the Commission is taking allegations of a silver manipulation seriously. That’s because the evidence is compelling. Taken together with the no-nonsense approach and pragmatism of the new chairman, Gary Gensler, the message is clear. Be short silver at your own risk.

http://news.silverseek.com/SilverSeek/1253632847.php