The tactics in the War on Gold are:
1)
Randomly and unpredictably attack the gold price in the futures
markets, producing large price whipsaws, investor losses, and a
generalized spirit of price uncertainty, danger and concern; over time,
make existing and prospective investors view the market as a corrupt
casino rigged against them, causing them to capitulate and leave the
field;
2)
Employ the most advanced, covert “Black Psychological Operations”
(PsyOps) methods, customized for the financial sector by the CIA’s
Division of Psychological Warfare, the Fed, the Treasury, the ECB and
the BIS, to destroy gold sentiment in the west. As part of this
campaign, use the Mainstream Financial Media (MFM) to conduct a
continual propaganda campaign denigrating gold in every respect,
destroying interest in it;
3) Fraudulently overstate official holdings to create the illusion of massive supply overhang;
4) Sterilize investment funds by steering them into non-auditable paper proxies (e.g., ETFs);
5)
Weaken, then destroy the dealer network by killing product demand,
spiking dealer costs (e.g., required hedging against relentless price
volatility), causing large unhedged losses, demonizing dealers as money
launderers and crooks, and wiping out profitability / business
viability;
6)
Financially weaken miners via crushed prices, making them
dependent upon bullion bank (DS) financing and debt, and forcing them to
comply with bullion bank orders;
7)
Paint phony price charts that enable the “financial services
industry” (stock brokers, investment advisers, bankers, etc.) to make
gold investing appear stupid, and talk people out of buying gold,
particularly in physical form; if this fails, sterilize investment funds
by steering them into phony, paper gold;
8) Create a marketing blackout throughout the west (which is the Achilles’ heel).
Tactics #1 and 8 are the subject of this article,
because they are inextricably linked. It would be impossible for the
Deep State to employ Tactic #1 if it were not for their simultaneous use
of Tactic #8.
As we know, Tactic #1 has been carried out by
years’ worth of massive, unpredictably-timed, electronic, naked-short
price attacks primarily conducted on the Comex, the Deep State’s
captured and non-regulated Command and Control Center. GATA has long
documented in exquisite and laudable detail the gold price-rigging
scandal, and Deutsche Bank’s admission in late 2016 that they and
numerous other major banks manipulated the gold market for years ended,
once and for all, any possible doubt about gold market corruption.
As is typical in Deep State-sponsored financial
crimes, none of the Deep State criminals ever goes to jail; instead,
they simply pay fines to the Deep State itself. Deep State criminality
is a closed system of plunder from which the profits never leave; they
merely circulate from one Deep State pocket to another.
Tactic #8, the complete lack of industry-sponsored
gold marketing throughout the west, is a crucial component of the War on
Gold. Without
Tactic #8, the Deep State would be incapable of employing Tactic #1, because the criminalized, fractional reserve gold exchanges, primarily the Comex, would no longer exist. They would no longer exist because they would be unable to source even the minimal amount of physical gold required to create the false illusion of legitimacy, which would fully expose them as being nothing but the paper metal frauds they already are for all intents and purposes.
Tactic #8, the Deep State would be incapable of employing Tactic #1, because the criminalized, fractional reserve gold exchanges, primarily the Comex, would no longer exist. They would no longer exist because they would be unable to source even the minimal amount of physical gold required to create the false illusion of legitimacy, which would fully expose them as being nothing but the paper metal frauds they already are for all intents and purposes.
According to the Mainstream Financial Media, gold
is a “commodity.” This deliberate mischaracterization of gold is
intended to deflect attention away from its unparalleled monetary
importance, and make it appear no different in nature from corn, natural
gas or pork bellies. Rarely has a greater monetary lie ever been
perpetuated.
Gold is not a commodity; it is the world’s only
natural and universal money, and therefore its pre-eminent consumer
product. From the time of its discovery over 6,000 years ago, human
beings have instinctively realized that gold is incomparable as pure,
honest, incorruptible, reliable, functional, lasting, valuable, and true
money and wealth. This is precisely why the Deep State swindlers
despise it. It is the antithesis of the immoral, baseless, corrupt,
predatory, fraudulent fiat currencies they endlessly and parasitically
counterfeit into oblivion at extraordinary profit to themselves and
crushing expense to their victims, the people.
Providers of consumer products and services know
that their offerings must be marketed. Not even the best of them sell
themselves; they must be sold.
In 2016 alone, corporate managements worldwide
spent over $1 trillion to advertise and promote their goods and
services. They paid this astronomical sum because they know that
marketing is indispensable to commercial success. Marketing is not an
expense; it is an investment in profit.
We all recognize the phrases marketers have created
to bring their products to life: “Just Do It,” “Don’t Leave Home
without It,” “The Ultimate Driving Machine,” “Everywhere You Want to
Be;” “Good to the Last Drop,” “Where’s the Beef?,” “Be All You Can Be,”
“I Love New York,” “We Bring Good Things to Life,” “Think Different,”
“Like a Good Neighbor, …;” “When it Absolutely, Positively Has to be
There Overnight,” “We Try Harder,” “Diamonds are Forever,” among so many
memorable others.
There is only one consumer product industry we can identify that does absolutely nothing
to develop its market: gold mining. For decades, the miners have
refused to lift a finger to promote gold. (Their appointment long ago of
the World Gold Council as a marketing agent has been a complete
disaster, and its dreary saga could be an article all its own.) This
refusal constitutes a colossal rejection by them of the most important
business function of all and a total abdication of their fiduciary
obligation to shareholders. As a result of the miners’ persistent and
indefensible refusal to market gold, western consumer demand for it is a
fraction of what it could and should be.
We cannot find one senior gold mining corporation
that includes in its top executive ranks a Chief Marketing Officer, or
any role even resembling it. While we do find senior executives in:
“Exploration,” “Operations,” “Investor Relations,” “Technology,”
“Corporate Development,” “Regulatory Affairs,” Legal (“General Counsel,”
“Compliance”), Finance (“Chief Financial Officer”), “Mergers and
Acquisitions,” “Tax,” “Sustainability,” “Human Resources,” and
“Strategy,” the marketing function is completely absent throughout
senior miner top management. This is unprecedented in consumer commerce.
The miners’ refusal to market their product is so
idiotic that it must be deliberate. It is impossible that such
self-destructive commercial stupidity could come naturally to even one
senior mining executive, let alone the entire set of executives in the
senior gold mining industry, particularly given its extremely negative
consequences.
This begs the questions: What is going on here? Why
do the gold miners deliberately refuse to market gold, even though it
is obvious that market demand and price for it have severely suffered as
a result? Why do they deliberately destroy enterprise and shareholder
value by ignoring the most important function in consumer commerce:
marketing? Why do they willfully and knowingly repudiate their fiduciary
obligations to shareholders, creating in the process potentially
serious legal liabilities for themselves and their corporations? And why
do all senior miners walk in such lunatic lock step when it comes to
their refusal to market?
Executives at the senior mining companies have a
long history of enriching themselves with lavish pay, benefits, pensions
and stock options while at the same time stabbing their shareholders in
the back. For example, their “forward hedging strategy,” conducted at
the behest of and in full collaboration with the bullion banks during
the brutal, 22 year gold bear market (1980 – 2001) savaged the prices of
gold and mining shares. All the while, rich, no-lose compensation
packages for mining executives were written around pre-arranged and
hedged gold prices. The shareholders got screwed as the executives got
rich. As we can see today, nothing has changed.
The miners’ excuse for their multi-decade failure
to develop the gold market is that it is “just a commodity,” and no one
markets those. Even if we agreed that gold is a commodity, which we
adamantly do not for the reasons explained above, the excuse is not
credible. In 1993, on a meager annual budget of only $23 million, one of
the most successful advertising campaigns of all times was launched for
a so-called commodity: “Got Milk?”
If creative advertising could make milk exciting,
which it did, imagine what it could do to increase interest in and
demand for gold. So what’s the problem here? Why is no one in the gold
mining industry willing to give marketing a try? What, possibly, have
they got to lose, other than the dismal gold price and multi-billions of
corporate losses their marketing incompetence has produced over the
past 37 years? More specifically, what is it about marketing gold’s
incomparable monetary virtues that paralyzes them? It is obvious that
the senior mining executives are not working for shareholders. So for
whom are they working?
The only logical answer we can provide is that the
senior miners are direct allies in the Deep State’s War on Gold. By
employing Tactic #8, the traitorous miners have damaged gold demand as
much as the criminals who use Tactic #1 have damaged its price.
The financial cost of the senior miners’ complicity
in the War on Gold is astronomical. From 1980 through 2016, excluding
China and Russia, approximately 79,000 metric tonnes, or 2.5 billion
ounces of gold were mined. During the 1980 – 2001 bear market, gold was
virtually given away by the miners for nothing, reaching dirt-cheap,
double-bottomed prices of only $250 per ounce in 1999 and 2001. In the
bear market that started in 2011 and continues to this day, gold has
plunged from an inflation adjusted 2011 high of $2,081 to today’s price
around $1,200, which is close to its average, all-in production cost. In
other words, 37+ years into the War on Gold, miners continue to give
away their shareholders’ gold for a pittance, when they could easily
increase its price simply by doing what every other consumer company
does: market it.
If we assume that the Deep State’s War on Gold has
only shaved $100 per ounce off its price, the undervaluation of the gold
mined from 1980 - 2016 is $250,000,000,000.00 ($250 billion). While
this is an astounding sum, we believe the actual cost is much higher.
According to our analysis, the underpricing of gold ranges between
$1,000 and $3,000 per ounce, depending on the comparative metric we use
(e.g., global money supply; global debt; global private savings; global
GDP; global equities; inflation; and the like). By other metrics, it is
even more, but we will be conservative.
Therefore, the total undervaluation of the gold
mined during the War on Gold ranges between $2,500,000,000,000.00 and
$7,500,000,000,000.00 ($2.5 to $7.5 TRILLION). This is tantamount to
theft from the owners of the mined gold, namely, shareholders.
On a global basis, physical gold owned by
individuals, businesses, religious organizations and sovereign
institutions is currently undervalued by between $5.8 and $17.4 trillion
dollars. This is the cost to the world, in gold undervaluation alone,
of the Deep State’s criminality, corruption and avarice. Being the home
and global headquarters of the Deep State, the United States is the only
nation in the world whose #1 export, in currency value, is financial
fraud.
The War on Gold is suffering from the effects of
the Law of Diminishing Returns: it requires more and more Deep State
price-rigging to move the gold price down less and less. This is because
available supplies of physical gold are rapidly disappearing from west
to east, where demand is unquenchable. Tactic #1 is in trouble.
In far greater trouble is Tactic #8. When Indian
Prime Minister Modi announced his demonetization scheme at 8 PM on
November 8, 2016, the social media network throughout India went
supernova within minutes. Citizens who acted immediately were able to
dump some or all of their “extinguished” rupee notes for food, medicine,
gold and whatever else they could get their hands on from shops still
open that evening. The next morning was too late, as the fangs of the
scheme deeply sank into the nation’s flesh.
Social media saved the day for those on the
vanguard. Similarly, when the people in large numbers sense that
something has become rotten in the state of their money and that their
savings and financial well-being are at extreme risk, they will take to
Social Media in droves to both seek and give advice on how to protect
themselves. When this happens, decades’ worth of Deep State fraud and
senior miner traitorousness will be washed away in a matter of hours. We
already see in Bitcoin how “electronic currency” can go viral even well
before a full-blown financial panic. The current Bitcoin phenomenon
demonstrates that the people sense something in the air, and are
mobilizing. When the wall of propaganda against gold starts to fall, the
people will mobilize into it, as well.
As pure money, gold simply has no true competitors.
Increasingly, this will become self-evident to tens of millions of
people in the west, who will create new demand for it. The physical gold
market cannot accommodate such incremental demand at anywhere near the
current price. At a certain point, the market will not be able to
satisfy physical demand at all, as people realize there is no substitute
for and hold on to it for dear life. Nothing on earth produces a price
frenzy like a no-offer market.
In our view, people will be richly compensated for
front running the coming monetary mass awakening, something we view as
being absolutely inevitable. Given the world’s exponentially compounding
risks and troubles, the fact that we continue to enjoy halcyon,
actionable days can only be regarded as an extraordinary gift from God,
to all of us.
http://www.zerohedge.com/news/2017-05-12/traitors-abetting-deep-states-dirty-dying-war-gold
