Read the Tuesday Afternoon Wrap-Up for 5/21/2013 and the Wednesday Morning Commentary for 5/22/2013
I know, MARKET MANIPULATION cannot possibly exist; even though the Fed admits to supporting bonds…
QE4-Ever: Fed Announces 4th Round of Quantitative Easing
…while distinct GOVERNMENT AGENCIES are mandated to support stocks…
President’s Working Group on Financial Markets
…and manage currencies…
Exchange Stabilization Fund (“The ESF”)
…and what’s this, per the ESF’s mandate…
“The ESF was established at the Treasury Department by a provision in the Gold Reserve Act of January 31, 1934. The act authorized the ESF to use its capital to deal in goldand foreign exchange to stabilize the exchange value of the dollar. The ESF as originally designed was part of the executive branch not subject to legislative oversight.”
As the Fed overtly “stabilizes” markets via daily Open Market Operations, is it not possible the ESF (i.e. the “Cartel”) does the same in the gold market? I mean, what are the odds of anything other than government intervention explaining the EXACT SAME trading patterns, day after day?
You see, gold MANIPULATION is not exactly a new phenomenon. “Coin Clipping” dates back millennia; and frankly, all attempts to create fiat regimes can be considered the manipulation of REAL MONEY…
Historical Error #9: China’s Medieval Fiat Paper Money Had Centuries of Success.
In fact, the London Gold Pool was an overt organization charged with “maintaining” the Bretton Woods mandated gold price of $35/oz. via daily open market operations…
“The London Gold Pool was the pooling of gold reserves by a group of eight central banks in the United States and seven European countries that agreed on November 1st, 1961 to cooperate in maintaining the Bretton Woods System of fixed-rate convertible currencies by defending a gold price of US$35 per troy ounce through interventions in the London gold market.”
Of course, it FAILED in barely six years; when PHYSICAL demand swamped their “best suppression efforts”…
“The central banks coordinated concerted methods of gold sales to balance spikes in the market price of gold as determined by the London morning gold fixing while buying gold on price weaknesses. The United States provided 50% of the required gold supply for sale. The price controls were successful for six years, when the system became no longer workable because the pegged price of gold was too low. Subsequently, runs on gold, the British pound, and the US dollar occurred – and France decided to withdraw from the pool. The pool collapsed in March 1968.”
…and like today’s Cartel, they simply WOULDN’T GIVE UP their FLAWED SUPPRESSION SCHEME; until it imploded three years later…
“The London Gold Pool controls were followed with an effort to suppress the gold price with a two-tier system of official exchange and open market transactions, but this gold window collapsed in 1971 with the Nixon Shock, and resulted in the onset of the gold bull market which saw the price of gold appreciate rapidly to US$850 in 1980.”
Fast forward to 1995, when Treasury Secretary Robert Rubin (fresh from his post as Goldman Sachs CEO) first uttered the term “strong dollar policy” to mask the creation of a second gold Cartel; which we are still dealing with today…
Gold and the US Strong Dollar Policy
I’m not going to spend time discussing the various machinations of the current Cartel; as I do so essentially EVERY day. However, I think it’s fair to say that not only has my manipulation motto of the past decade held true – “every day worse than the last”; but in the past six months, such efforts have become so maniacal, it appears as if TPTB are actually attempting to mimic the London Gold Pool’s efforts.
We already know that 90% of PMs’ daily movements occur during COMEX PAPER trading in New York; and per Dmitri Speck’s brilliant work below, it should be no surprise that “KEY ATTACK TIME #1” is 10:00 AM EST – i.e., the “London PM Fix,” when PHYSICAL trading ends for the day. Additionally, we know that London PAPER trading commences at “THE 2:15 AM” EST open – whilst Chinese PHYSICAL trading ends at 3:00 AM EST; nearly ALWAYS resulting in immediate WATERFALL DECLINES. Thus, it’s safe to say the Cartel works in both London and New York to suppress PAPER prices…
However, given that the U.S. has the most to lose (the world’s reserve currency) and that England has essentially become its puppet; it’s also safe to say U.S. bankers and politicians run the show…
Is the United Kingdom a ‘PuppetState’ for the United States
In other words, I believe TPTB are attempting to covertly resurrect the London Gold Pool; only this time, it’s the “NEW YORK GOLD POOL.” Unfortunately for these power-hungry, misguided souls; the END RESULT will be the same – as it ALWAYS is…
Research Shows that ALL Paper Money Systems Failed
