Gold Market Manipulation

Gold Market Manipulation

For the past year or two I’ve had an ongoing conversation with my friend P.I.G. (the Prepper Investment Guru) on the mechanisms of market manipulation.  You may recognize P.I.G. as he’s a frequent contributor of ideas and quotes to Prepography.  Unfortunatly, P.I.G. can’t write directly for us as he has sacrificed much of his First Amendment freedom upon the alter of compliance because he holds a license to sell securities.  I pass along some of what P.I.G. shares with me but frankly much of what he shares makes sense when he explains it but not when I try to recreate the essence of the lesson or message.  Over time, I’ve come to realize that mechanisms of our financial enslavement are purposely so complicated that even a financially savvy amateur such as yours truly is lost without an expert guide.

P.I.G.’s explanations of market manipulation have led me to pay more attention and the manipulation in the silver market (my personal favorite) has been evident even to this amateur observer.  From time to time P.I.G. sends me an article that he feels captures an aspect of what’s going on in the financial markets…and these I can share with you.

As I previously mentioned, I’ve become interested in the mechanisms of market manipulation and my favorite market to watch is the silver market.  The more I’ve watched the silver market the more I’ve found myself interested in who’s behind the Bank of Nova Scotia and their strange pattern of trading which appears designed to reduce silver prices.  After reading The Hows and Whys of Gold Price Manipulation by Dr. Paul Craig Roberts and Dave Kranzler I now know who the Bank of Nova Scotia’s biggest patron is.

This article also has some of the best analysis of why the Federal Reserve has refused to immediately repatriate the gold reserves it holds for foreign governments when requested.  It does miss the point that what little gold the Fed returned to Germany was not the same gold that was put on deposit as it should have been.

Read  The Hows and Whys of Gold Price Manipulation and see why I’m going to be very nervous the day gold hits $2,000 per ounce.  Here’s a preview:

… request was provoked by rumors circulating [in] the market that gold was being leased and hypothecated in increasing quantities.  About a year later, Germany made a similar request.  The Fed refused to honor Germany’s request and, instead, negotiated a seven year timeline in which it would ship back 300 of Germany’s 1500 tonnes. This made it apparent that the Fed did not have the gold it was supposed to be holding for Germany.

Why does the Fed need seven years in which to return 20 percent of Germany’s gold?  The answer is that the Fed does not have the gold in its vault to deliver.  In 2011 it took four months to return Venezuela’s 160 tonnes of gold. Obviously, the gold was not readily at hand and had to be borrowed, perhaps from unsuspecting private owners who mistakenly believe that their gold is held in trust…

What we are witnessing is our central bank pulling out all stops on integrity and lawfulness in order to serve a small handful of banks that financial deregulation allowed to become “too big to fail” at the expense of our economy and our currency.  When the Fed runs out of gold to borrow, to rehypothecate, and to loot from ETFs, the Fed will have to abandon QE or the US dollar will collapse…

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