Free markets? This one comes under the heading, "Putting frosting on shit and calling it cake." Remember Edward Snowden?
The Commodity Futures and Trading Commission was designed to prevent market manipulation. Quite simply, that mission has become so corrupted over the years that the CFTC could be dismantled tomorrow and I doubt anyone would notice. Markets might actually improve. Secondly, we can have no true price discovery of commodities nor can we really even have an intelligent conversation about manipulated pricing because it's based on a manipulated, "garbage in- garbage out" data stream.
The Commodity Futures and Trading Commission oddly came about in 1974, three short years after President Nixon told France that they could no longer exchange American dollars for physical gold. In so doing, Nixon put the final nail in the coffin for the world's reserve currency. Nixon then cut a deal with Saudi Arabia and thus OPEC, to price oil in dollars- a move which guaranteed that the rest of the world would have to trade their currencies in for our dollars to buy oil. This was a brilliant move. Everyone would need dollars to buy oil. That move has greatly lengthened the lifespan of the dollar and ushered in the era of the petro dollar. That era continues to this day. Barely.
Thus the CFTC was created to regulate futures markets. Or was it? Personally, I think it was a paper tiger- a commission billed as being a regulatory body to make people feel safer- but in actuality the CFTC has become an interferent presence which allows banks and other trading desks to manipulate markets and thus profit from them. JP Morgan and Goldman Sachs have actually gone years without suffering a single day's trading losses. It is mathematically impossible to never suffer a loss while trading every day- the only way you can perform that miracle is if you have been given a license to steal.
Please consider the following statement that was issued after the 2008 banking collapse. Up until that point- nobody had ever heard of such a thing.
Since 1991 the CFTC has given secret exemptions from hedging regulations
to 19 major banks and market participants, allowing them to accumulate
essentially unlimited positions.
These exemptions came to light only after the 2008 financial crisis had
unfolded and Congress requested information on market participants. A
trader or bank granted an exemption as a bona-fide hedger can affect the
price of a commodity without being either its producer or consumer.[22
Is it just me or does that sound as though the CFTC in fact- has no regulatory mission at all? It is simply an illusory mechanism which presents itself as some highly regarded regulatory and oversight body (governed by 4 lawyers and 1 banker, who are all from the banking industry) when in fact- it does neither. It's real mission is to run interference while allowing big trading desks to steal with impunity.
While researching this piece over the weekend, I stumbled onto this...a well researched post regarding the criminal activity that the CFTC engages in while pretending to be regulators. http://news.firedoglake.com/2013/05/17/cftc-caves-to-wall-street-will-continue-to-allow-cartel-to-control-derivatives-market/
I spent all day trying to find the 19 major banks which have been given licenses to steal but in fact, they are not disclosed anywhere. I think it's a pretty safe bet that banks like Goldman Sachs, JP Morgan, and Bank of America are all part of the scam.
Yesterday, I read a piece on Zerohedge http://www.zerohedge.com/news/2014-08-04/another-settlement-%E2%80%93-jp-morgan-receives-slap-wrist-despite-years-fraudulent-cftc-dat about a fine that JP Morgan had to pay for giving out fraudulent commitment of traders or COT numbers every week. Today I noted a blog on Dave's site wherein he went into some detail about what a fraudulent scam the COT report is and the fact that all data from all banks is funneled to JPM. Apparently, JP Morgan manipulates that data at will and has been doing so since 2012 or about the time gold started to tank. Here's Dave's piece. http://investmentresearchdynamics.com/the-cftc-commitment-of-trader-data-is-rigged-after-all/#comments
It's one giant, fraudulent, mess and between the CFTC, a banana republic presidential administration which includes that buffoon Eric Holder- it's as though the rule of law has been suspended at least through 2016.
I don't expect anything to happen until this administration gets shown the door. I think the full scope of criminal intent will eventually be discovered sometime after Obama and his minions can no longer obstruct an investigation.
I can't even begin to imagine how many people must know about all of the criminal activity taking place and I'll be damned if anyone comes forward.
They must have heard about Edward Snowden.