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| Price kept at the right amount, to control currencies and to keep wealth out of the middle class and poor's hands. That's why. |
It is critically important to the Deep State financial elite that the price of gold not “go Bitcoin.” If it does, it would create a buying stampede that would feed on itself, sucking funds out of individual bank deposit accounts. Banks make money by controlling depositors’ money, and precisely nothing from a box of Gold Eagles buried in someone’s back yard. More important to the banks is that individual deposits will be required for future bank bail-ins and capital controls, and cannot be allowed to leave the banks, soon to be monetary prisons, in which they currently reside. As has often been said by those who have experienced them in the past, “there is no fever like gold fever.” This fact is well known to the financial elite, and they are doing everything in their power to prevent gold fever from breaking out.
The way to keep a gold buying stampede from happening is to sharply depress gold’s price, making gold look like a terrible place to put money. Human beings are momentum chasers by nature, which is broadly evident in the current Bitcoin and stock market phenomena. In 2011, gold was in the process of going vertical, just as Bitcoin subsequently has gone, and this represented an emergency for the ruling financial elite. Since then, they have pounded down the price from $1,900 to $1,250 today, during a dreary, relentless campaign now well into its seventh year. In the process, the ruling financial elite has made an unprecedented $1 trillion profit from the manipulation of the gold market, but the full story is more nuanced and complex than the elite’s looting and corruption.
The control of the gold price is a technical and complex process. Some people wonder why, if the manipulators could crush the price from $1,900 to $1,250, they haven’t they kept pushing it down in order to profit even more? Why haven’t they taken it down to, say, $1,000 or $750?
The answer is that the supply does not exist to handle the increased demand that lower prices would create, particularly from sovereign buyers such as Russia and China. These buyers have certain amounts to invest on a regular basis. In September, 2017, for example, Russia purchased 1.1 million troy ounces, or 34.2 metric tons of gold. The average price of gold that month was $1315.39. This means that Russia spent approximately $1.447 billion on gold that month. If gold had been pushed down to, say, $1,000 per ounce, Russia would have been able to purchase 1.447 million ounces of gold for the same amount of money, or 347,000 ounces (31.6%) more gold. China, a huge gold accumulator that is far less transparent about the scale and timing of its sovereign purchases, and whose citizens are buying gold on a massive scale, would also have been able to buy 31.6% more ounces with whatever amount it invested in gold in September, 2017. And so would every other gold buyer that month, including sovereign, industrial and retail purchasers worldwide.
But with supply and demand already in a tenuous balance, where would the extra gold have come from?
The gold price manipulators are therefore required to cap the price not just on the upside, but also on the downside. If the paper price were to go lower than the supply / demand equilibrium price, this would trigger delivery failures that would spread like wildfire as everyone raced to buy disappearing, increasingly non-available gold. Buying stampedes are created by the non-availability of merchandise desired by consumers, because it is human nature that when people are told they cannot have something, their desire for that thing goes exponential.
When the gold price moves too low, the manipulators must go long (buy) paper gold in order to support and stabilize the price. The manipulators are therefore in the predicament of needing to vacillate between going long and going short, as circumstances demand, to keep the price in the allowable range. They must maintain dual long and short positions all, or at least most of the time. And all of the contracts they buy must ultimately settle, one way or another.
The manipulation of the gold price is strategically engineered at the highest levels of the deep state financial elite, and is managed for the elite by the Bank for International Settlements (BIS). Instructions from the BIS are then communicated to the western central banks (WCBs), who in turn inform the bullion banks of the specific price ranges they must keep gold within. These price targets change according to financial and economic conditions, and Deep State market manipulation profit (theft) objectives.
The Commitment of Traders (COT) gold report, which is issued by the CFTC based on data provided to them by the Comex, categorizes positions held by “commercials” (the bullion banks), “non-commercials” (generally assumed to be big dollar hedge funds), and “non-reportables” (smaller investors such as gold fabricators, jewelers and coin dealers, who must hedge their positions so as not to be financially hurt by price swings).
People assume that these market participant categorizations are honest and accurate, but we do not. The gold market has been corrupt for decades, and this includes in its reporting. We believe there are many bullion banks (commercials) that also manage shadow “non-commercial” (e.g., hedge fund-like) accounts. Therefore, at any given time, the bullion banks can be both long and short the gold market, via both known commercial accounts, and also unknown, shadow, non-commercial accounts.
If the COT report were honest, there would be a fourth category of market participants: Official Price Manipulators (OPMs), and all official price manipulation activities, long and short, would be reported. We will call such positions OPM Contracts. Of course, official price manipulation cannot be admitted or detailed, because it would expose the gold price for the rigged fraud that it is. Therefore, OPM Contracts currently hide within the shadows of the commercial and non-commercial investor categories.
The role of the bullion banks is to control the price of gold per the instructions of the BIS and WCBs. The bullion banks make enormous profits as a side benefit of being officially authorized gold price controllers, as they have been granted a Bondian License to Steal. But their primary duty is to ensure that the price remains within the ranges set by deep state financial elite and central bank agents. With respect to price manipulation, per se, it is not the intent of the bullion banks to take delivery of gold when their long contracts expire, or to deliver gold when their shorts expire. For them, gold price manipulation is a cash settlement operation.
There are numerous times when the price manipulators must act in a non-profit manner to keep the gold price in line. This occurs when the price comes close to breaching either the minimum or maximum price set by the BIS. It is at these times that the bullion banks must act in behalf of the BIS, not themselves. In other words, when the price is intra-range, the bullion banks can manipulate it for their own profit; but when the price threatens to break out of the range, then their job is to control it, no matter what the cost.
In performing their BIS and WCB gold price control duties, the bullion banks receive a guarantee that any losses they might incur will be fully subsidized. Because their actions come with great exogenous risk. News of such things as war, a major terrorist attack, a bank failure and even election outcomes can result in immediate, substantial moves in the price of gold. For instance, on election night, 2016 and the following day, the price soared and then plunged, as the controllers worked overtime to keep it within the set boundaries, producing massive paper gains and losses during the process. The deal between the BIS and WCBs, and their price manipulation agents, the bullion banks, is that Job One is to keep the price of gold within the set range at any given time.
Imagine a situation where the gold price is going too low, and the manipulators must step in to support it by going long. Imagine, too, that there are no market participants willing to go short at that necessary market intervention moment. Therefore, there is an order imbalance. To fix this problem, the bullion bank manipulators simultaneously go both long and short, to set the price where it needs to be. Keep in mind, these are price manipulation, not money trades. There is no intention on the part of the manipulators to settle them either via cash or physical delivery; these trades are solely made to maintain a particular and phony gold price. Therefore, as these contracts expire, the manipulators need to vaporize them, and make them disappear.
This is what the EFPs do. EFPs are where the OPM Contracts go to die and be buried. The EFP longs offset the corresponding Comex short OPM Contracts (which are also phantom), keeping the Comex accounts in balance.
We acknowledge that in times of delivery stress, the Comex might need to convince legitimate gold longs (in other words, non-Official Price Manipulators) to accept EFPs by offering them a cash bonus for doing so. But this would be in a minority of cases, given that the non-commercial hedge funds are typically momentum trade, cash settlement players, not investors in physical gold. They want cash profits to fund their salaries and bonuses, not gold. Therefore, it is uncommon for them to stand for delivery.
The Comex is owned by the CME, a publicly traded corporation subject to regulation, audits and taxation. If the CME were to actually pay cash bonuses to legitimate longs persuaded to accept EFPs, they would need to report them as a business expense. While they would try to bury these expenses deep in the footnotes of their financial reports, in the event of a lawsuit and legal discovery, the payments would be revealed. This is a legal risk the CME cannot take, because bribing customers to accept EFPs would indicate a de facto delivery failure on their part. If an EFP were no different from a Comex contract, why would the CME need to bribe a customer to accept it? Non-admitted and elaborately disguised delivery failure would be tantamount to fraud, and the payment of bribes to cover up such a delivery failure, in other words, to cover up the fraud would be a prosecutable criminal act.
Therefore, any EFP payments / bribes must be transferred to the LBMA, the over the counter gold market in London, which is opaque and loosely regulated, if regulated at all. Keep in mind, the vast majority of EFPs simply vanish, as they are the concocted method of making OPM Contracts disappear.
As has been pointed out by several gold market experts, it is inconceivable that the LBMA has the ability to deliver the quantity of physical gold represented by the massive number of EFPs created in recent months. But we believe this misses the point. It was never the bullion banks’ intention to demand delivery of the OPM contracts, which are nothing but shadow, price control mechanisms.
This is why, despite the fact that the enormous gold futures trading volume in New York and London would by now almost certainly have produced delivery failures, if they were all legitimate and real, there have not been any reported delivery failures. The only explanation for this is that a large number of these contracts are shadow OPM Contracts whose sole purpose is to control the price of gold, and which are then vaporized after they have served their price manipulation purpose.
Please keep in mind that the control of the gold price by the deep state financial elite is not some parlor game that they play for their enjoyment; it is an absolutely critical requirement in keeping the fraudulent fiat currency counterfeiting scheme from collapsing. There are literally trillions of dollars at stake, and the entire counterfeiting scam could and almost certainly would implode if gold “went Bitcoin.” If that were to happen, gold would tell the world the sobering monetary, financial and economic wisdom it has gleaned from 5,000 years of study, experience and reflection. The simple fact is that the financial system cannot handle the truth that gold knows, and that it would tell, if it were allowed to.
Harvey Organ is the leading expert when it comes to EFPs.
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A new report prepared for Prime Minister Putin by the Federal Security Service (FSB) says that former International Monetary Fund (IMF) Chief Dominique Strauss-Kahn was charged and jailed in the US for sex crimes on May 14th after his discovery that all of the gold held in the United States Bullion Depository located at Fort Knox was ‘missing and/or unaccounted’ for.
According to this FSB secret report, Strauss-Kahn had become “increasingly concerned” earlier this month after the United States began “stalling” its pledged delivery to the IMF of 191.3 tons of gold agreed to under the Second Amendment of the Articles of Agreement signed by the Executive Board in April 1978 that were to be sold to fund what are called Special Drawing Rights (SDRs) as an alternative to what are called reserve currencies.
This FSB report further states that upon Strauss-Kahn raising his concerns with American government officials close to President Obama he was ‘contacted’ by ‘rogue elements’ within the Central Intelligence Agency (CIA) who provided him ‘firm evidence’ that all of the gold reported to be held by the US ‘was gone’.
Upon Strauss-Kahn receiving the CIA evidence, this report continues, he made immediate arrangements to leave the US for Paris, but when contacted by agents working for France’s General Directorate for External Security (DGSE) that American authorities were seeking his capture he fled to New York City’s JFK airport following these agents directive not to take his cell-phone because US police could track his exact location.
Once Strauss-Kahn was safely boarded on an Air France flight to Paris, however, this FSB report says he made a ‘fatal mistake’ by calling the hotel from a phone on the plane and asking them to forwarded the cell-phone he had been told to leave behind to his French residence, after which US agents were able to track and apprehend him.
Within the past fortnight, this report continues, Strauss-Kahn reached out to his close friend and top Egyptian banker Mahmoud Abdel Salam Omar to retrieve from the US the evidence given to him by the CIA. Omar, however, and exactly like Strauss-Kahn before him, was charged yesterday by the US with a sex crime against a luxury hotel maid, a charge the FSB labels as ‘beyond belief’ due to Omar being 74-years-old and a devout Muslim.
In an astounding move puzzling many in Moscow, Putin after reading this secret FSB report today ordered posted to the Kremlin’s official website a defense of Strauss-Khan becoming the first world leader to state that the former IMF chief was a victim of a US conspiracy. Putin further stated, “It’s hard for me to evaluate the hidden political motives but I cannot believe that it looks the way it was initially introduced. It doesn’t sit right in my head.”
Interesting to note about all of these events is that one of the United States top Congressman, and 2012 Presidential candidate, Ron Paul [photo bottom left] has long stated his belief that the US government has lied about its gold reserves held at Fort Knox. So concerned had Congressman Paul become about the US government and the Federal Reserve hiding the truth about American gold reserves he put forward a bill in late 2010 to force an audit of them, but which was subsequently defeated by Obama regime forces.
When directly asked by reporters if he believed there was no gold in Fort Knox or the Federal Reserve, Congressman Paul gave the incredible reply, “I think it is a possibility.”
Also interesting to note is that barely 3 days after the arrest of Strauss-Kahn, Congressman Paul made a new call for the US to sell its gold reserves by stating, “Given the high price it is now, and the tremendous debt problem we now have, by all means, sell at the peak.”
Bizarre reports emanating from the US for years, however, suggest there is no gold to sell, and as we can read as posted in 2009 on the ViewZone.Com news site:
“In October of 2009 the Chinese received a shipment of gold bars. Gold is regularly exchanges between countries to pay debts and to settle the so-called balance of trade. Most gold is exchanged and stored in vaults under the supervision of a special organization based in London, the London Bullion Market Association (or LBMA). When the shipment was received, the Chinese government asked that special tests be performed to guarantee the purity and weight of the gold bars. In this test, four small holed are drilled into the gold bars and the metal is then analyzed.
Officials were shocked to learn that the bars were fake. They contained cores of tungsten with only a outer coating of real gold. What’s more, these gold bars, containing serial numbers for tracking, originated in the US and had been stored in Fort Knox for years. There were reportedly between 5,600 to 5,700 bars, weighing 400 oz. each, in the shipment!”
To the final fate of Strauss-Kahn it is not in our knowing, but new reports coming from the United States show his determination not to go down without a fight as he has hired what is described as a ‘crack team’ of former CIA spies, private investigators and media advisers to defend him.
To the practical effects on the global economy should it be proved that the US, indeed, has been lying about its gold reserves, Russia’s Central Bank yesterday ordered the interest rate raised from 0.25 to 3.5 percent and Putin ordered the export ban on wheat and grain crops lifted by July 1st in a move designed to fill the Motherlands coffers with money that normally would have flowed to the US.
The American peoples ability to know the truth of these things, and as always, has been shouted out by their propaganda media organs leaving them in danger of not being prepared for the horrific economic collapse of their nation now believed will much sooner than later.
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