BIS Behind Precious Metals Collapse

We have long maintained that the US government and its criminal syndicates such as the Federal Reserve, International Monetary Fund, and the Bank of International Settlements have colluded through their money center banks to manipulate down the price of gold and silver  to protect their criminal franchises as represented by the US dollar. New evidence from Paul Craig Robert and Andrew McGuire confirm our thesis.

 

McGuire is a London gold trader with numerous inside contacts and a long history of successful gold trading which give him insights into the backroom players who manipulate the price of gold. In a recent interview with King World News, McGuire stated that the Bank of International Settlements has been desperately smashing the price of gold in order to preserve the value and status of the dollar.

 

The BIS is a central bank's central bank in some ways, founded in the 1930 as a supranational organization which is subject to no government. Its entre into gold price manipulation is a new but not surprising revelation. McGuire's accurate accusation against BIS represents a new turning point in the war on gold.

 

Previously the major players have been banks such as Goldman Sachs, JPMorgan Chase, Citibank, Morgan Stanley, Deutsche Bank, Barclays, HSBC and other criminal banks working under the tutelage of the US Fed, International Monetary Fund, World Bank, BIS, and others.

 

The most recent smash down in gold involved a drop of well over 30 dollars per troy ounce precipitated by a speculator under no legal obligation to back the short sale of gold. The BIS whipped up 80 tons of synthetic gold out of thin air which it sold into the London Bullion and Metals Association market within seconds. Although individuals may not engage in naked shorting as the BIS did, criminal organizations are exempt from these rules.

 

Technical analysts who rely on charts for divining the future price of gold and silver simply cannot do so reliably because technical analysis assumes a relatively free market - something which is preposterously impossible within a crime syndicate.

 

Economist Paul Craig Roberts further cemented the case with his recent observations in King World News with analysis similar to McGuire's. Roberts noted that the recent suspension of the sale of Silver Eagles by the US Mint is due to massive demand, yet the price of silver has been falling. Whoever heard of a falling price of a good in limited supply when demand is at record highs? The problem is that artificially low prices of silver have reduced the supply of economically available silver.

 

As we have reported previously, gold continues to leave the West in a torrent pace to the Asian nations, particularly China, India, and South Korea. Russia has also been a large buyer of gold at fire sale prices. In addition, the same banksters who have suppressed the price of gold have also been stealing it a prodigious rate.

 

The collapse of the dollar is closer than most people think, with the BIS now entering the fray in a very large way to stanch the losses and inevitable collapse of the USD.

Reference
Eric King, Paul Craig Roberts Shocking Interview on Criminality of US Fed, King World News, November 8, 2014, accessed 11/8/2014

Copyright 2014 Tony Bonn. All rights reserved.

The Case for Gold Has Never Been Stronger

Although 2013 marked a pause in the previous 12 year bull run of the price of gold, we believe that 2014 will reverse the losses and break new ground in dollar denominated pricing.

 

The economic situation of the United States is dire, but its vulnerability is compounded by the deplorable economic conditions abroad, especially in Europe.

 

None of the financial problems stemming from the engineered take down of Lehman Brothers has been solved, with the insolvency of the big US banks as acute as it was in 2008.

 

During the time since the onset of the Great Depression 2.0, Eastern powers have been sucking gold out of the West at a rate which hasn't been seen since the fall of Rome. The trade of industrial plant for cheaper prices has not been a good deal for Americans as they are no longer employed sufficiently to pay the cheap prices.

The latest government reports on the fastest growing job segments are all low pay hospitality and retail positions.

 

Barry Soetoro has produced the most profligate spending since Nero burned Rome. Not even a ship of drunken sailors could steal and spend money with so much abandon and criminality as the budgetless president.
 

David Stockman recently described the overvaluation of stocks due to accounting gimmicks which eliminate so-called non-recurring expenses from earnings reports and thus deflates P/E ratios, a quick test for evaluating the value of stocks. Rather than being 18 times earnings, the reality is that they are 23 times earnings, clearly in overbought territory. The key point is that these non-recurring charges are quite recurrent and will soon show up in stock prices.

 

Thus the stock market really has no place to go but down in 2014 since its values are artificially maintained by the criminal Federal Reserve Board and the President's Working Committee on Markets Stability. However, their abilities to manipulate markets is tapering as they lose control of the world's reserve currency, the price of oil, and the price of gold.

 

With total debt levels still at 330% of GDP, deficits soaring out of control, and the US having last year entered another dip in its ongoing depression since 2008, the economic prospects of the US will force settlement of past due accounts which have been kicked down the road for the past 5 years.

 

Germany requested a portion of its 3300 metric tons of gold last year, and so far has seen 37 tons delivered. The LBMA and COMEX have ceased or stalled delivery of gold. Andrew Maguire has reported that London gold vaults are empty due to a massive exit of gold East to make good on the sea of bad US debt held by the Chinese, and to help repatriate the gold it stole from China in exchange for granting the brutal regime Most Favored Nation status.

 

Taper Talk is a charade anyone can safely ignore - the Fed will not taper. Michael Pento told King World News today that the amount of debt on the Fed's balance sheet is closer to 10 trillion USD rather than the publicly reported 4 trillion. Thus not only does the Fed have no "tools" for fighting another recession - and it creates all recessions - but it is completely insolvent, a point we have made for several years.

 

With scarce gold and the Fed and US government on the verge of unleashing trillions more of debased currency into the teetering US economy, we are certain that gold's price will head distinctly higher.

Another factor contributing to the scarcity of gold, one which rarely gets any public play, is the multiple claims of ownership on each ounce of gold, currently running around 80 claims per ounce. This very fraudulent ownership chain on gold practically guarantees its higher price.

 

The trigger for the economic collapse will emanate somewhere near the vicinity of Deutsche Bank or JPMorgan Chase, whose London Whale Trade is still toxic as ever. It didn't sell Chase Center at bargain basement prices to the Chinese because it was feeling charitable.

 

Demographic and economic factors are working hard to destroy the US. The labor force participation rate is the lowest since 1978, unemployment is at all time highs even as the Bureau of Labor Statistics lies its back end off proclaiming otherwise. This means that tax revenue will not recover, making debt the only recourse for America's leaders to maintain the illusion of prosperity.

 

The Chinese have written down trillions of dollars of US debt - mostly treasuries, meaning that they will be out for blood over the coming years. This has given them the leverage to demand gold as settlement, with somewhere between 10-30,000 tons of gold having shipped East in the last 18-24 months. Bankster lives depended upon this settlement, some of whom will wind up in an oil drum next to Jimmy Hoffa.

 

With the collapse of the US Treasuries market and consequently higher interest rates, the plummeting price of stocks, and the vaporization of gold from the West, we are certain that gold prices will escape the manipulation of America's banksters to seek a price this year in the 2000s. But as a cautionary note, William Kaye, Vice Chairman of Pacific Alliance Group of Companies, warned Eric King of King World News of a drop in price to the 1050 - 1100 range before heading higher. While the price may continue to gyrate, we don't see the price going that low given the factors we have discussed. 

Copyright 2014 Tony Bonn. All rights reserved.

JP Morgan Whistleblowers Reveal Blatant Manipulation of Gold and Silver Markets

King World News reported Friday in a blockbuster interview with precious metals trader Andrew Maguire that 2 whistleblowers from JP Morgan approached him with evidence that their bank actively manipulated the price of gold in contrast to the protests and ridicule denying such allegations in the state and corporate owned media.

 

Maguire told Eric King that he, and subsequently the whistleblowers, supplied solid evidence to the Commodities Futures Trading Commission that JP Morgan actively suppressed the price of gold and silver when it was in their interests to do so - which is generally a 24 x 7 proposition.

 

Maguire supplied his evidence in 2010 while the 2 whistleblowers came forward in June 2012 under the protection of the Dodd-Frank Whistleblower Protection program to furnish the CFTC with evidence of criminal manipulation of the precious metals market.

 

Although the news is sensational, it simply confirms what we, and long before us the Gold Anti Trust Association, have reported for years. GATA has presented to the public and CFTC powerful prima facie evidence of market manipulation to which the criminal CFTC has turned a blind eye because it is owned by the banking cartel doing the bidding of the Fed and Treasury.

 

When trading freely, the price of gold is a sensitive indicator of the failure of the private banking cartel, often referred to as the Federal Reserve, whose policies are deemed inflationary or ruinous to the value of the currency. But Alan Blinder, former vice chairman of the Fed stated publicly that “it is the last duty of a central banker to tell the public the truth.” His policy statement has just been exposed for all to see the corruption of the government and the private banking cartel – not just under Ben Bernanke’s leadership, but also under all of his predecessors, especially Alan Greenspan.

 

The typical means of manipulating the gold market is through the use of naked shorts which are illegal for private citizens and institutions, but which the CFTC has legalized for bullion banks to which the Fed and Treasury grant the right to lease or sell the government’s owned gold, much of which was confiscated from private citizens by Franklin Roosevelt in 1933.

It is not just government owned gold which the banks lease. They have done so with sovereign gold, such as Germany's, which resulted last year in a demand for gold repatriation. The Fed, after telling Germans to take a hike on at least 7 occasions, finally relented by telling German officials that they could have some 300 tons of their gold within 7 years. The gold is simply not there and the Germans will NEVER see their gold.

 

In 2010, Maguire reported that Asian interests entered the gold market in a massive way after learning that the market was severely undervalued due to central and bullion bank manipulations. The recent revelations by Maguire on King World News are expected to fuel another frenzied bout of buying, evidence of which was seen in the afterhours market for gold on Friday which zoomed 20 dollars per ounce in heavy trading.

 

Although the news is astonishing enough, Maguire told King that the CFTC has refused to investigate any of the allegations even with overwhelming substantiation provided by the JP Morgan employees.

 

Maguire further revealed that 2 key banks, one of which was Goldman Sachs, were on the brink of collapse when the UK sold sovereign gold to bail out the bank.

 

The undesired side effect of this policy of suppressing gold is that it has whetted demand for physical gold which has been drained from the bullion banks as Zero Hedge has so ably reported, especially in the case of JP Morgan which has exited parts of the precious metals market.

The below market prices of gold and silver will result in the inevitable failure of COMEX and LBMA, which we predict will occur within 6 months. The only caveat to our prediction is that the private banking cartel provides insider information to the bullion banks as Maguire further revealed, which may enable them to ride the second derivative, so to speak, by which they may be able to very narrowly escape a complete collapse. But we have our doubts. They have certainly gone long in recent weeks.

 

We have long maintained that gold is in permanent and severe backwardation, the consequence of the Fed vigorously defending the dollar against its ruinous policies to benefit banksters and other criminal elements. The paper price of gold has been in an unprecedented state of backwardation while the physical price has been in this state for at least 2 years.

 

Jim Willie predicts that the price of gold will at some point go dark when the COMEX officially collapses, meaning that there will be no fixed universal price of gold because the 2 major cartels will have been broken and exposed for the corrupt organizations which they are.

 

The end game is that physical gold holders will be massively screwed because the bullion banks to whom they have entrusted their physical gold will cash them out. Although this is illegal for allocated accounts, unallocated accounts such as those found in  GLD and other ETFs are fully within their contract rights to cash out account holders, meaning that the dupes who thought they owned gold will get a big surprise such as when ABN Amro stole the gold of their customers by closing the gold window. It's cousin is the bank bail-in - a topic for another post.

 

Willie has reported about extensive lawsuits in Switzerland where massive gold thefts by the bank owned government have caused outrage among their "customers." These so-called customers will NEVER see their gold again.

 

The end game is the dollar, and ultimately it is a doomed currency. In the meantime, the Fed, Treasury, and CFTC are in wholesale collusion to pretend otherwise.

Reference

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2013/9/14_Andrew_Maguire.html

Copyright 2013 Tony Bonn. All rights reserved.

The Disintegration of the Old Economic Order

The house of cards created at Bretton Woods by the plutocratic elite is starting  to disintegrate. Many astute observers are noticing that more than an errant dog will cause the collapse of the rickety structure.

Although we don’t normally delve into economic matters directly, we believe that the urgency of these crises warrant an exception to policy, particularly when the background reporter is Jim Willie. His latest public newsletter presents a series of acute troubles facing the financial world.

We find further justification in our excurses since it underlines one of our major theses – namely that world events are not governed through the sham institutions over which Americans wax patriotic, but rather that sinister selfish people manipulating those institutions are the real movers and shakers of political events.

In particular, it was the plutocratic elite, led by the Bush Crime Syndicate, which murdered a president in Dealy Plaza, forced an elected president to resign in 1974, and attempted the murder of another sitting president in March 1981.

This same cabal of economic hyenas is facing a significant crisis – or engineering one – which is attacking all major pillars of Western economic life.

For those who have been oblivious to the financial storm, several issues are coming to a head.  We briefly enumerate them here.

LIBOR Scandal

The revelations of the enormous fraud perpetrated by major banks such as Barclays, Deutsche Bank, Lloyds and others have forced resignations of senior executives of these and other firms. However, that is nothing compared to the extent of their criminalities. These banks, plus major American banks, the US Federal Reserve Board, the Bank of England, and a cast of many thousands have engaged over the course of years – if not decades – in manipulation of this key rate.

Interest rates, like any other traded good, are two sided. When their prices are subverted through manipulation, someone loses, particularly those depending upon interest income or financial derivatives adversely affected by a certain direction in rates.

Over 350 trillion dollars in financial transactions depend upon this rate, meaning that the plunder is measured in hundreds of billions of dollars, if not more, even with the small basis point clipping of rates.

Although pure animal greed was at the core of this crime, one of the major movers behind it were governments who were hopelessly in debt and running annual deficits of 1.5 trillion USD.

Money Laundering

If you thought that BCCI and its money laundering schemes were things of the past, we would nominate you for fool. Where there is large money and power, there is large corruption. All of the leading financial institutions in the US have a large dependency on money laundering, particularly of the narcotic variety. Willie has mentioned Wachovia’s major involvement in narcotic money laundering prior to its demise. He also notes that money center banks’ survivals depend upon it.

JPMorgan and Interest Rate Swaps

We have previously reported on JPM’s exposure to Interest Rate Swaps as the real background story to its London Whale trades gone bad, but it is worth reminding our readers that the only way that interest rates can remain at 0% in the face of chronic deficits of the current magnitude is through these financial instruments which artificially create demand for bonds. As Willie notes, there is no rush to safety toward US Treasury debt – rather it is a gusher of Fed purchasing of debt through the banks of the Federal Reserve, in this case, Morgan Stanley. After the gold story, this is the story to watch.

FASB Accounting Scandal

In 2009, in the pell-mell of the Lehman crash and stock market sell-off, Congress compelled FASB – the Financial Accounting and Standards Board which specifies accounting rules and standards for public and corporate accounting – to suspend the mark to market standard which required that companies book assets at the lower of acquisition or market price. This suspension of centuries of accounting practice permitted companies to valuate assets at their whims - always through complex inscruitable models - , covering up massive losses in so doing.

If banks were required to adhere to mark to market,  they would have to recognize their bankruptcies and be forced into receivership. Nearly all of the major banks, including the Federal Reserve, are thusly insolvent. The Federal Reserve’s purchases of massively bad debt render it bankrupt. These insolvencies are the real reasons why banks are not lending, plus the fact that the Fed is paying banks to park 1.6 trillions dollars in funds by paying .25% interest.

Stolen Gold

Perhaps the biggest story yet to be widely reported is the massive theft of gold by the major banks as part of their gold shorting schemes to suppress the price of gold. Central banksters fear the price of gold because it, above all assets, signals bankster malfeasance and currency debasement. Hence, they are allowed to sell gold with naked shorts, something which would land an ordinary person in prison.

Having plundered their account holders’ gold, and in conjunction with massive flows of gold to the East, the gold cartel banks are finding themselves in a huge bind. At least 60,000 tons of gold have been stolen by the banks through lease programs in a bid to suppress its price. When the true owners discover the theft, an enormous upward thrust in gold will materialize.

Now that the price is rising, the pressure on these criminals to replace the gold will be volcanic. We believe that this is the main reason Ben Bernanke, once dubbed as the Chair Satan of the Federal Reserve Board, is refusing to engage in raw Quantitative Easing, a fancy term for currency debasement. Doing so would put enormous upward pressure on the price of gold which would in turn demolish the short positions of the gold cartel. Such a result would force them into bankruptcy just as they would face enormous civil litigation. Fortunately for the banksters, they are not subject to criminal prosecution because they own the government lock, stock, barrel and could always invoke national security as a covering pretense.

As a side note, Fort Knox is depleted of all gold. The only thing in its storage bays besides gold plated tungsten bars is nerve gas to be used on US citizens "for their own safety."

We again thank Jim Willie for providing the background summary for our interpretation of these events, and hope that readers can see the abject corruption of its esteemed leaders. Banksters and politicians have a very tight symbiotic relationship which could not flourish without each other.

We are at a loss to explain what the repressive regime which follows will look like, but Nazi Germany is a good place to start. The destruction of the economic order, to paraphrase North American Mossad Director Rahm Emmanuel, is not a crisis to be wasted.

Reference

US Treasury Bonds False Safe Haven, GOLD is the True Sanctuary , Jim Willie, July 26, 2012

Copyright 2010-12 Tony Bonn. All rights reserved.

Is the Price of Gold Manipulated?

Many of our more naïve readers may be shocked to learn that gold is so important that it is the most heavily manipulated currency in the world. But why and how is such manipulation done?

We felt vindicated when Zero Hedge reported a couple of years ago that CIA documents revealed focused and wide spread manipulation of gold. The revelations came as a dividend of the ground breaking work which the Gold Anti Trust Association has done, since its inception in 1998, to demand the government to free the gold and silver markets from deliberate manipulation by government proxy banks.

The documents revealed that not only did the Federal Reserve actively monitor and intervene in gold markets, but it did so in consultation with the CIA. We weren’t too surprised by this disclosure which gave us comfort to know that the agency was not 100% devoted to murdering people.

Ever since John Keynes ridiculed gold as that “barbaric relic,” Americans have paid scant attention to its value in either commerce or their portfolios. Following the economic pied pipers, most investors think that gold is a useless commodity interchangeable with a boat anchor. The savvy investors have loved these bimbos as their absences from the markets have created better buying opportunities for them.

However, the uninterrupted upward price action of the past 10-12 years has caused some to give gold strange new respect. Why would this be so? The primary cause is the loss of value and respect of the fiat money system weighed down with trashy debt and imminent default.

Regardless of the public opinion of gold, it has always played a singularly important role in supporting the mountain range of debt accumulated under the fraudulent fiat money systems which have run amok since the establishment of the Federal Reserve in 1913. The links are not direct but are tangible nonetheless.

In a classic Brer Rabbit scheme, one of the biggest liars in America, Federal Reserve chairman Ben Bernanke, has taken a one man tour of America’s schools to demean gold while defending the indispensability of central banking. Unfortunately for the chairsatan, the facts of history show nothing but a debased currency and more volatile economy since the dawn of central banking in America – and only more so since the men running the financial world are ever more corrupt.

Now all of this talk of conspiracy has been derided with utmost contempt by the Bernankes of this world, but as Elvis Presley said, you can hide the sun for a while but you can’t make it go away, a citation Paul Mylchreest made in a seminal discussion on the manipulation of gold prices in Thunder Road Report of March 28, 2012.

Mylchreest documents the patterns and algorithms the banksters use to control the price of gold using daily and intraday gold price charts to illustrate the inteventions. He shows that finger print type trading actions occur like clockwork at specific times of the days and days of the week. Although the gold cartel cannot ultimately control the long term trend, it can fight a very effective rear guard action to obstruct free price discovery and keep potential buyers on the side lines.

It is thus an open secret among insiders that the physical price of gold is at least 25% higher than the paper price of gold. For those new to the topic, derivative products such as electronically traded funds do not keep a physical supply of gold matching their obligations for gold. In fact their prospectuses state that they do not have to maintain any purity or reserves of gold. Any redeemer of shares can be easily turned away with cash.

But why do the highest levels of government fret over the gold price so much? The main reason is that the price of gold signals the distrust and vulnerability of the fiat regime. Gold rises in price when the market supply of dollars grows, signaling that the central bank is debasing the currency. Since 1913, the Federal Reserve has destroyed 99% of the value of the dollar, leaving it with a constant dollar value of less than 1 cent.

The American government has one other fear of competition from gold - the loss of the exorbitant privileges it enjoys as the issuer of the world's reserve currency, a privilege it has used to menace the world with war and inflation.

It is a well hidden fact that most of the largest banks are functionally insolvent, many having negative common tangible equity – Regions Bank being one such example. If that weren’t bad enough, the Federal Reserve is itself insolvent, with many of the crapulent securities it has bought since 2008 having less market value than book value. However, with the politically motivated FASB, financial institutions no longer need maintain mark to market on securities, thus enabling them to deceive the government, investors, and the public about the true financial states of their organizations.

Some say that all is well with the gold situation, because the government could utilize its vast hoard of gold to moderate its price. It could, but the problem is that the USA pissed away its stolen gold (FDR 1934) through the London Gold Pool during the 1960s and beyond. Even then, the fiat currencies were under stress due in large measure to the massive expansion of US government debt during the 1960s in its imperial war of aggression against Viet Nam.

Ironically enough, the government did use its gold stocks to keep a lid on the price of gold – something essential with inflation indexed bonds and entitlement programs. When the gold reserves were exhausted, ETFs were established to take the role of allowing the gold cartel to sell naked, thus applying immense downward pressure on the price of gold.

If any doubt exists that gold is a barbaric relic, let us recount the story of current Commodities Futures Trading Commission chairman Gary Gensler who, though a bankster’s puppet, was pushed violently against a corrider wall at a Washington hearing by a New York bankster executive who warned him that any continued investigation into commodities price manipulation would result in serious consequences which we interpreted as a death threat. Gensler, according to our source, attempted to report the incident to Congress, but Congressional leadership showed no interest in getting involved.

The above story illustrates that the only barbarity associated with the relic is the behavior of its opponents seeking desperately to uphold the debt based fiat system under which we are enslaved. The best way to fight your overlords is to take physical possession of gold. However, have it assayed since USA banking and government sources are major purveyors of gold plated tungsten.

The major reason for fiat currencies is that they can expand without constraint, thus making wars and colonial conquest nearly risk free for the aggressors. Now you know the other reason the barbarians consider gold a barbaric relic.

Reference
Thunder Road Report, Paul Mylchreest
Copyright 2010-12 Tony Bonn. All rights reserved.