The Hows and Whys of Gold Manipulation

The deregulation of the financial system during the Clinton and George W. Bush regimes had the predictable result: financial concentration and reckless behavior. A handful of banks grew so large that financial authorities declared them “too big to fail.” Removed from market discipline, the banks became wards of the government requiring massive creation of new money by the Federal Reserve in order to support through the policy of Quantitative Easing the prices of financial instruments on the banks’ balance sheets and in order to finance at low interest rates trillion dollar federal budget deficits associated with the long recession caused by the financial crisis.

The Fed’s policy of monetizing one trillion dollars of bonds annually put pressure on the US dollar, the value of which declined in terms of gold. When gold hit $1,900 per ounce in 2011, the Federal Reserve realized that $2,000 per ounce could have a psychological impact that would spread into the dollar’s exchange rate with other currencies, resulting in a run on the dollar as both foreign and domestic holders sold dollars to avoid the fall in value. Once this realization hit, the manipulation of the gold price moved beyond central bank leasing of gold to bullion dealers in order to create an artificial market supply to absorb demand that otherwise would have pushed gold prices higher. The manipulation consists of the Fed using bullion banks as its agents to sell naked gold shorts in the New York Comex futures market. Short selling drives down the gold price, triggers stop-loss orders and margin calls, and scares participants out of the gold trusts. The bullion banks purchase the deserted shares and present them to the trusts for redemption in bullion. The bullion can then be sold in the London physical gold market, where the sales both ratify the lower price that short-selling achieved on the Comex floor and provide a supply of bullion to meet Asian demands for physical gold as opposed to paper claims on gold.

The evidence of gold price manipulation is clear. In this article we present evidence and describe the process. We conclude that ability to manipulate the gold price is disappearing as physical gold moves from New York and London to Asia, leaving the West with paper claims to gold that greatly exceed the available supply. …

http://www.prisonplanet.com/the-hows-and-whys-of-gold-price-manipulation.html

Quick summary for the impatient: for decades the central banking cartel has been systematically looting the gold vaults of their respective governments by “leasing” the gold (typically at below 1% rates) largely to their own wealthy shareholders (goldman sachs, jpmorgan etc) to sell on the open market in order to suppress the price.   That gold is gone.  In order to pay back the gold loans the gold must be purchased from the open market, which is getting steadily tighter as those in the know (which now includes china and russia) have been buying it up at firesale prices.   This is why it’s widely believed that there is no gold left in fort knox.  And it’s why those “loans” will never be paid back.   When TSHTF, the limited liability corporations which took out the gold loans will simply go bankrupt attempting to buy it back at a far higher price, while the gold itself has already been squirreled away in the  vaults of china, russia and (most especially) the owners of the central banks.  Mission accomplished.

The monetary gold standard is no longer an option even for a workable economy, much less a fair one.    Democratically controlled, government issued fiat money (not “federal” reserve notes) is the only workable solution for domestic trade.  (see http://www.monetary.org )    Unfortunately it remains to be seen how such an approach might work for international trade, which the satanists have arranged to be absolutely indispensable for americans.

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