Monday, April 22, 2013

LBMA Defaults on Gold Contracts

While Western monetary quacks have ridiculed gold until their credibility is no greater than what Bill Clinton said of Paula Jones’, the cocks have come home to roost. The LBMA and COMEX have defaulted on their gold contracts, with nary a sign of prosecution for their criminal actions.
 
Of course there will be no prosecutions because the London Bullion and Metals Association is backed by the same criminal governments which participated in the recent gold takedown. The same holds true of COMEX – the American precious metals exchange.
 
Most of our dear readers may not know what the COMEX and LBMA are all about, and may not understand the implications of these defaults. There are a number of reasons to be concerned but the two foremost in our mind is that the fiat and fractional currency scheme is under severe stress and the rule of law has been destroyed through the egregious breach of contract represented by the defaults.
 
Officially there was no default because contracts were settled in cash. But such a settlement is not in the spirit of the contracts and is a breach in material of the agreements.
 
There is a third reason for concern, namely that the United States has escalated its wars of imperial aggression in Africa, seizing Mali’s gold mines on the heels of seizing Libya’s supplies. We have reported on other military actions in other parts of Africa where the United States is stealing natural resources of once sovereign nations as the US recolonizes Africa.
 
The criminal bank ABN Amro fired the first salvo when it reneged on gold deliveries to customers who had entrusted their gold with the bank, an error in judgment of epic proportions. Days later, the COMEX dramatically increased margin requirements on silver and gold in a panicked response to the relentless drain on its gold supplies.
 
Andrew Maguire, a successful financial manager, told King World News on April 22, 2013 that when he advised his clients six years ago to retrieve their physical gold, COMEX reacted with great hostility to his demand for delivery. The reason is that it threatened their solvency and rehypothecation scheme.
 
JS Kim, writing at ZeroHedge on April 22, 2013, reported the following banksters in attendance at another gold slam hosted by Barry Soetoro, president of the United States, one day prior to the unprecedented assault on the price of gold the week of April 8, 2013.

Lloyd Blankfein, Chairman and CEO Goldman Sachs
Jacques Brand, CEO Deutsche Bank
Michael Corbat, Chief Executive Officer Citigroup
Jamie Dimon, Chairman, CEO and President J.P. Morgan Chase
Sergio Ermotti, CEO UBS
James Gorman, Chairman and CEO Morgan Stanley
Gerald Hassell, Chairman and CEO Bank of New York Mellon Corporation
Jay Hooley, Chairman, President and CEO State Street Corporation
Abby Johnson, President, Fidelity Financial Services, Fidelity Investments
Steve Kandarian, Chairman of the Board, President and CEO Metlife
Brian Moynihan, President and CEO Bank of America/Merrill Lynch
John Strangfeld, CEO, Prudential
John Stumpf, Chairman, President and CEO Wells Fargo
Jim Weddle, Managing Partner, Edward Jones
Bob Benmosche, President and CEO American International Group
 
There were two reasons for the destruction of value. The first and foremost was to avail themselves to more gold at huge discounts. Some of the gold went to payoff pesky clients, but much more went into their personal accounts which was the second reason for the slam down.
 
For those who wonder how the banksters crashed the price, we give you a simple answer. The government sponsored banksters have the privilege of selling gold without having any collateral. And so they sold 400 tons of it without having a single ounce – an operation known as shorting. Unfortunately for them, it did nothing to dampen demand.
 
Many analysts note that gold is a vote against the fraudulent fiat, debt based, fractional reserve monetary system in place throughout the world. Thus a suppression of the gold price would challenge anyone in that belief  – they hope – from acting on it in the acquisition of physical gold.
 
Previously, the government had resorted to destroying Peregrine Financial and MF Global to raid its customers’ gold. But that was not nearly enough to satisfy deficits in their gold accounts and their bankster sponsors.
 
He who owns the gold makes the rules. Gold is going to those who respect it. The United States is drained of its official gold holdings although its government continues to claim over 8000 tons. Fort Knox holds nothing but nerve gas.
 
We urge folks to own physical gold – the paper traded exchanges will leave you high and dry. They are not to be trusted. We also urge all Americans to retrieve gold from safety deposit boxes. It will be confiscated in the very near future.

Reference
Maguire - Elaborates On The LBMA Default & Ensuing Panic, King World News, April 22, 2013
Why the Western Banking Cartel’s Gold and Silver Price Slam Will Backfire - And How You Can Protect Yourself from the Blowback, JS Kim, Zero Hedge, April 22, 203

Copyright 2013 Tony Bonn. All rights reserved.

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