Is The Gold Manipulation Backfiring?
Monty Pelerin / EconomicNoise.com
The term “unintended consequences” is used to describe outcomes not foreseen by the central planner. It certainly describes most government programs.
For years, I have insisted that the term does not do justice to what actually happens. It is not strong enough to properly convey the results of major government actions. Hence, the “Pelerin Rule” was developed: Whatever the stated objective of a government program, the opposite will result.
There are innumerable examples of this law being fulfilled. The most recent is barely underway and the results are obvious. I speak of healthcare reform where the stated objectives were to cover more people, lower costs and improve the quality of medicine. As Obamacare rolls out just the opposite is occurring. People are losing their health coverage and health care costs are soaring. The deterioration in the quality of medicine will be apparent soon, especially once doctors begin leaving the profession.
Now the same phenomenon may be occurring in the gold market. In an effort to discredit gold, alleged government and bank interventions occurred that drove down the price. This action seems to have altered the gold markets in a way never intended. A move allegedly undertaken to tarnish gold’s luster purportedly in an attempt to protect fiat currencies and the manipulations of the paper gold markets by central and bullion banks appears to have brought physical gold, the last refuge from scoundrels, to center stage. That is the opinion of The Golden Truth as expressed in the following article:
The Global “Fractional” Paper Bullion Market Is Collapsing
I wrote last week that there was a scramble going on globally by entities seeking to take physical possession of the gold on which they have a legal claim, most of which is sitting either in alleged “allocated” big bank bullion vaults or in alleged “allocated” accounts in Comex custodial warehouse vaults.
I also demonstrated mathematically, using the reported numbers on the CME website for precious metals futures open interest and warehouse gold/silver stocks, that the amount of gold represented by Comex futures open interest far exceeds the amount of deliverable gold on the Comex (the analysis is even more extreme for silver). In fact, if less than just 10% of the buyers of June gold contracts demand delivery, the Comex won’t have enough gold to cover the legal claims. For silver (July silver) it’s even more extreme.
This is a global problem and not just endemic to the Comex. Globally, the legal claim of ownership on physical gold far exceeds the amount of gold represented by paper futures, LMBA forward contracts, leased gold and vault receipts. The latter – vault receipts – is where the big banks in London have the most severe problem, as gold this is supposed to be sitting in “allocated” accounts under the name of the legal owner who bought and paid for those bars has been largely leased out. I’ll get to that in a minute.
First, I received this comment from John Brimelow’s “Gold Jottings” report, which comes from Gerhard Schubert, head of Precious Metals at Emirates NBD, the largest banking group in the Middle East. Keep in mind that Middle Eastern buyers demand physical delivery of their gold. Here’s the quote from his latest weekly report:
I have not seen in my 35 years in precious metals such a determined and strong global physical demand for gold. The UAE physical markets have been cleared out by buyers from all walks of life. The premiums, which have been asked for and which have been paid have been the cornerstone of the gold price recovery. It is very rare that physical markets can have a serious impact on market prices, which are normally driven solely by derivatives and futures contracts…
I did speak during the week with several refineries in the world, of course including the UAE refineries, and the waiting period for 995 kilo bars is easily 2-3 weeks and goes into June in some cases. A large portion of the 995 kilo bars in the UAE goes normally into the Indian market, but a lot of the available 995 kilo bars are destined for Turkey, at this time. We heard that premiums paid in Turkey have reached anything between US $ 20 and US $ 35 per ounce.
The price hit of two weeks ago has triggered a serious scramble for physical gold and silver. Reports like the above comment have been flooding from Europe, the Comex has had about 30% of its gold bars literally drained from the customer accounts of the Comex bank custodian vaults and the U.S. mint is running way behind on demand for silver eagles and some weights of gold eagles. Ditto for the Canadian mint.
continue article at EconomicNoise.com:
http://www.economicnoise.com/2013/05/03/is-the-gold-manipulation-backfiring/
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Whistler Blowers, Insiders
You can call it unintended consequences, but i see it as anything but. As if people don’t have the ability to look down the road and see the results of what they put into play. All of it has been planned down to the milisecond and all you have to do to see it is factor out where all this will lead. Who benefits is a system that wishes to enslave you six ways from sunday and then some.
I am not an economist, but know a little about maths, there are 2 words they all use, inflation and deflation, let me give you my take on this.
Inflation comes about when there are too many bits of paper relative to the amount of assets
deflation comes about when there are too many assets relative to bits of paper.
simple little facts.
give a poor man a pound and he spends it
give a rich man a pound and he salts it away, mostly in a tax haven.
So with these facts how would inflation come about, just give a poor man lots of money and the rich man none.
How would deflation come about, give a rich man a lot of money and the poor man none.
So therefore if there was a large movement of money from the poor to the rich then deflation would be created.
Likewise a large movement of money from a rich man to the poor would create inflation.
Now this seems obvious to me but not to any one else.
So the deflation we have now is due to the masses having their wages decreased while the elite have increased theirs, to correct this then the masses must earn more and the elite less.
Now the central banks are pumping money into the system to stop deflation, but they are not giving it to the masses they are giving it to the elite who are just salting it away, so it will never fix deflation and only cause inflation in important things like food as more bits of paper still devalue all bits of paper even if they are salted away, it means that the central banks must just increase it and never stop to just stand still.
So it is a huge mistake outsourcing jobs to a lower paid workforce as it will only get worst, in fact any productivity increases will make it worst.
The last 10 years were run on debt, people still spent even though their wages were decreasing, they just borrowed more, now the banks must have known this was happening because they made it easy for people to borrow as their wages decreased, so they must have even had a date by which this would stop.
So this is all pointing to a pre prepared plan to crash the system.
So why crash the system, some say to install a NWO, some say ignorant greed, I think neither, I think it is to collect up gold, by making the bits of paper valueless they give things like gold value, but they came up with the idea of paper gold, many said was a good idea as it allowed gold to be stored in a central place while you just had paper and did not have to worry about storage fees or a secure place to keep it.
But they printed far more paper than they had gold, this was all done by the same people crashing the fait money, then they crash the system by dumping the paper gold all at once, this brings the price down and force people to grab physical gold, but most physical gold was in private hands any way, the gold in storage was tiny compared to the gold held in private hands.
So now there is no physical gold about or very little and it is nearly extinct and will only be used for barter.
So all the collectors of gold have to do now is crash the paper money and they can pick the gold up for food, as many have said you can’t eat gold, but if you have some and you are starving you will swap it for a can of beans. they wont be paying 5000 dollars an once, they intend to only pay 5 dollars max for an once.
Food shortages are coming, crops will fail, countries that grow GM crops have poisoned the soil so only GM crops will grow, just cut them off from GM seeds and they will starve, countries have like india have a lot of people and a lot of gold, they have also poisoned a lot of their soil.
Like I have said the NWO is a red herring, they only want gold, these gold collectors will give a new meaning to evil, they have stayed hidden away in Switzerland and have setup many others to take the fall, mainly the Bilderbergers and Zionist, they won’t come to the rescue with a NWO, they will just watch the world starve to death extracting out every last once of gold.
They may even release viruses to destroy food crops so they can barter 1 can of beans for 400 oz bars.
Maybe chem trails are part of that too, to poison the soil so it wont grow food.
When this happens maybe most of you will be begging for a NWO only to find out it was just a lie to get vain world leaders to follow the plan.
Reminds me of the line from the film independence day, “what do you want from us” – “to die”.
I could be wrong, well hope I am, but just a line of thought.