Tuesday, May 10, 2011

Ted Butler Has Stockholm Syndrome Plus Great Remarks From John Williams

Ted Bulter's undying faith in the CFTC and Gary Gensler never ceases to amaze me.  His analytic work on the silver market and the COT reports is brilliant.  And yet, his ability to discern and detect the truth about what is going in our system with regard to regulation of the securities markets borders on complete ignorance.  I give him the benefit of doubt on that and prefer to believe that he is hopelessly full of hope and tragically naive.  On the the other hand, he may suffer from what is known as Stockholm Syndrome.  Here is a great description of the psychological phenomenon from wikipedia: 
In psychology, Stockholm syndrome is a term used to describe a paradoxical psychological phenomenon wherein hostages express empathy and have positive feelings towards their captors. These feelings are generally considered irrational in light of the danger or risk endured by the victims, who essentially mistake a lack of abuse from their captors as an act of kindness.[1][2] The FBI’s Hostage Barricade Database System shows that roughly 27% of victims show evidence of Stockholm syndrome LINK
Now read this excerpt from Butler's latest public posting:
As you know, I have put Gensler on a pedestal, repeatedly referring to him as the greatest chairman in CFTC history. Considering my past experiences with the agency, I still marvel at my transformation. I think he has done more than anyone ever to reform commodity regulation, including working diligently, although very quietly, to end the silver manipulation  LINK
Now, given everything about the extreme illegal manipulation of the silver market that goes on pretty much daily, and given that the CFTC has continually, and with full knowledge of all the data supporting the manipulation claims, looked the other way, I would say that Ted Butler has become a metaphorical prisoner of his own desire for reform and thus suffers from a form of Stockholm Syndrome.

I couldn't care less about this other than the fact that Butler's work is read by many globally, and now many pay to read his proprietary wisdom. I sincerely hope that those multitudes have the understanding and awareness of the facts to overlook this aspect of Butler's otherwise brilliant body of work.
~ ~ ~ ~ ~
In his latest Commentary on the jobs report, unemployment, money supply, inflation, etc. John Williams lays the truth in some insightful comments that I wanted to share.  This guy's newsletter does a brilliant pulling away the "curtain" that the Government/Fed uses to hide the facts:

With regard to the latest monthly employment report:  Given the increasing level of concurrent seasonal-factor adjustment distortions, and the sharp upside adjustment to April's birth-death model bias-factor, the reported payroll gain was not meaningful.  Following the plunge in payrolls in the early part of the economic downturn, a protracted period of bottom-bouncing commenced.  Year-to-year change in the reported bottom-bouncing now has flattened out at about one-percent, and nonfarm payrolls still are below where they were ten years ago

With regard to QE3, after pointing out that the Fed has bought more than the entire amount of new Treasuries issued during the last 5 months:  Ostensibly, the Fed has done this in an effort to stimulate the economy and to debase the U.S. dollar (create inflation). While the Fed has little chance of turning the economy to sustainable economic growth, it has been successful in triggering an upturn in consumer inflation. That has been seen in recent months and likely will be reconfirmed in the week ahead.

With regard to the dollar/wealth preservation:   Despite whatever volatility there may be, the U.S. dollar remains on track for an eventual complete collapse in a hyperinflation, and the roots of that hyperinflation remain imbedded in the system.  The primary hedge against losing U.S. dollar purchasing power remains physical gold (and silver), with some funds outside the U.S. dollar

The way John Williams lays out the golden truth and backs it up with raw statistical analysis is unique.  His work can be accessed at http://www.shadowstats.com/


  1. I've been reading Ted Butler's work for eight years and have often been perplexed at his take on the silver/gold ETFs and Gensler.

    Any thoughts on the silver post at FOFOA's site?

  2. FOFOA's posts are way too long for me to read LOL.

  3. They have a plan..and people better wake up!

    The Global Economic Situation and Its Impact on the Transatlantic Relationship
    John Lipsky - First Deputy Managing Director, International Monetary Fund
    5th U.S. – France Bilateral Dialogue
    Washington, D.C., May 2, 2011

    United States

    Turning next to the United States, the world's largest economy faces challenges to its economic and financial leadership from two principal sources. First, it is very plausible -- and widely recognized to be so -- that this country will cease to be the world's largest economy (in real GDP terms) within a decade, or even sooner. At the same time -- and perhaps more to the point -- the spreading recognition that the United States faces a very large medium-term fiscal adjustment challenge is coupled with widespread skepticism that this challenge will be addressed successfully.


  4. Gensler was not entirely a crook tho. If you watch that CFTC hearing you'd notice he actually caught Jeff Christian lying about what caused the 2008 metal crash when he asked JC sth like "how do you hedge a short with sale?"

    It's probably that the problem is too big to fix so they just threw their arms in the air watching the train wreck heading toward its ugly end.

  5. The saying should be " I could NOT care less "
    " I could care less " is the opposite.

  6. Dave is correct. What he says is:

    I care so little about this that I could not possibly care less...

    abbreviated to

    I couldn't care less about this...

    Where is the problem?

  7. Rui, it's kabuki theater. They pretend to be concerned, just like those in Congress. Saying stuff and then doing the opposite doesn't qualify as "reform".

  8. Early on, Ted was justified in giving Gensler the benefit of the doubt. But once Gensler squashed the movement towards position limits a couple of months ago, true colors were shown. Commissioner Bart Chilton has proven himself to be ethical - a good guy sitting among towel boy colleagues of the banking oligarchy. Oh Gensler, please take this towel to room 4.

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