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The Robber Baron and the Black Knight

Sam Mathid
Sep 10, 2008

The British member of the Rothschild banking family, Nathan Rothschild, is famous for his early 19th Century quote: "Buy when there is blood in the streets". He is reputed to have made a fortune in the Battle of Waterloo stock market panic. The full quote is believed to be "Buy when there is blood in the streets, even if the blood is your own."

The Rothschilds' intelligence gathering and speed of communications were second to none. During the Battle of Waterloo, Rothschild agents were in both camps. They listened, they watched, they asked questions and doubtless they paid good money for good information. When the to and fro of the battle was decisive in one direction, the agents filed their reports at a central command post. There the information was speedily culled down to the salient points.

Carriages raced from the battlefields. London's Rothschild messenger leapt out of his carriage at the English Channel and, on the 18th June, 1815, whilst the battle was still in progress, departed immediately on a private boat to England. There was no news in England so important as the outcome of the Battle of Waterloo. If Napoleon won, he ruled Europe. If he lost, then England held the balance of power in Europe.

Nathan Rothschild received the messenger personally at the English coastal town of Folkestone the next morning. He took the report and headed straight back to London on a carriage. As the carriage raced through the streets bound for the London Stock Market, he poured through the report. Upon arrival at the Stock Market he took up his position at the famous Rothschild Pillar, his habitual vantage point, and, with an expressionless face, gave a pre-determined and subtle signal.

His agents immediately began selling English consuls (the equivalent of government bonds). Hundreds of thousands of pounds of consuls were dumped onto the market before other traders realized the enormity of what was happening. Word spread rapidly that the Rothschild knew that the English with their allies had been defeated. Everyone knew of their wonderful intelligence. A selling frenzy ensued as the price of consuls started dropping. Then, finally, they totally collapsed. Everyone rushed to get whatever they could for their soon to be worthless paper. All was lost for England.

When consuls were selling at pennies on the pound Nathan Rothschild, still poker faced, gave another discreet order. His myriad agents again approached the trading desks and this time bought every single consul. They bought all of them at absolute rock bottom price.

Within 12 hours it became official. England has won the Battle of Waterloo and its fortunes in Europe had never looked brighter. Within minutes the price of English consuls soared upwards. They passed their original value and continued soaring for days. It is estimated that Rothschild increased his total wealth twenty times over in three days trading.

Fascinating little piece of history isn't it? Bankers have always lived in a slightly different moral world than normal, decent people. They always will whilst governments control currencies.

What makes this particularly pertinent is that the manipulation of the market by Nathan Rothschild in 1815 has happened many times since. It is happening right now in 2008. Again there is blood in the streets. This time it is the blood of bullion holders who have panicked and sold. Agents of unknown powers sell paper bullion, and they sell and they sell. Others manipulate the US$ upwards. To some it appears that the US$ is triumphant and that gold has met its Waterloo.

But what will be the real situation when the true result is announced? Did gold really lose the war? Or is it that the paper elites are engineering one last downward thrust in gold, whilst artificially stimulating the US$ price, so that they can load up at the best possible price? I have watched bullion for many years now, always looking for that one final massive pummel down in the price that would indicate that the elites had given up on the dollar and were bailing out in favour of gold. I believe that my eight year wait is over.

Dark and powerful forces manipulate the markets. They always have and they always will. Does it matter if it is governments, corporations or private individuals? Does it matter if is some descendent of the Robber Baron Nathan Rothschild? Not really, who cares? To deny manipulation is to deny history. It is to deny that the Nathan Rothschilds of the world exist. That is a dangerous naivety that has no place in successful investing.

Like Nathan Rothschild you need intelligence and the ability to interpret that intelligence. Just as importantly though, you need the ability to see what it is that is right in front of your face. If you cannot see manipulation of all our markets, not just the bullion markets, then you cannot understand the price movements happening right now.

Rothschild had a massive advantage over his fellow traders in that he had the only intelligence at hand. All else was guesswork. But the task of the investor today is much easier than the task of Rothschild's fellow investors. We have the internet, ergo we have communication on all the fundamental factors that relate to this particular battle.

What is important right now is that the price of bullion is way below its true market value. That is bad news if investors do not understand the manipulative forces at play as it can cause 'sell at the bottom' panic. For those that can understand the intelligence, and can see what it is that is right in front of their faces, the current bullion price is wonderful news.

What matters who is selling bullion at these ridiculous prices? Just buy it. What matter if 'they' manage to push it down to $700-... buy some more? The simple fact of the matter is that any intelligent appraisal of this battle informs that it is well and truly over.

The elites imploring us to believe that all is well and good, and recovery is in sight, is reminiscent of the famous scene from Monty Python where the Black Knight, with his severed limbs lying all around him, and with blood spurting in all directions, hops on his remaining leg whilst insisting that he is fine and that "it's just a scratch".

Gold has won the battle decisively and the US$ has lost, just as a lot of people openly predicted would happen many years ago. Hank Paulson standing languidly by the Paulson Pillar trying to look casual should fool no one. What matter if fools and manipulators buy the dollar and sell bullion? Carpe Diem... seize the opportunity and buy. This truly is a once in a lifetime opportunity to make a lot of money in the one item that will flourish as all else fails.

I have been around a good few decades and can NEVER recall a buying opportunity of the like. True there have been better prices. I first started buying gold in June of 2000 at around US$260, but I knew that I was at least a few years away from even doubling my money. Now you can pick up bullion with the certainty of at least doubling your money within a year, probably months.

Why is bullion so hard to get hold of at these prices? Because the price is wrong. Why is the price wrong? Because it has been artificially beaten down by the paper elite.

There is no such thing as a shortage. I read a wonderful piece by someone about a week ago (apologies, I would credit if I could remember who it was) who opined the same thing, and made the point wonderfully by saying, and I paraphrase, "There aren't many Rembrandts, but you never hear about a shortage of Rembrandts". That is of course because there is a free market in Rembrandts.

If there were a free market in bullion there would be no shortage, because the price would be sufficiently high to bring out sellers. There are very few private sellers at the moment as most bullion now is held by people who understand the current situation, and understand that it will not only pass, but reverse very quickly.

To return to Rothschild's full quote "Buy when there is blood in the streets, even if the blood is your own." If the blood is your own because you sold your bullion, then buy back in again quickly. You have been wrong once by selling at the wrong time. Don't be wrong twice by not realizing your error and buying at the right time. The fact that they are the same time is irrelevant. Do you want the Rothschilds of this world to win, whilst you lose?

The brilliant Antal Fekete, economist and mathematician, is conducting a seminar in Canberra, Australia from the 11th to the 14th November this year. It is the ONLY seminar anywhere in the world where all aspects of the gold and silver basis are discussed, together with a trading system guided by the basis. Meet and hear one of the giants of our age. Bookings for the seminar can be made through:

feketeaustralia@yahoo.com

We are having a real rush on tickets as the date draws ever nearer. Don't miss out on this once in a lifetime experience. I was privileged to attended Professor Fekete's seminar in Hungary in August of 2006 and to say that it was memorable is an understatement.

Sep 9, 2008
Sam Mathid
email: sammathid@yahoo.com

© Sam Mathid 2006-2008

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