Gold: Who's Selling Who's Buying Who's Lying
Darryl Robert Schoon
Although the Pharisees of paper money successfully forced down the price of gold, like those who lobbied Pontius Pilate to crucify Jesus, the consequences of their actions will backfire beyond their wildest imagination.
The decision of the paper money cabal to force down the price of gold is akin to Japan's decision to attack Pearl Harbor. Although the attack was successful, the eventual consequences were not what Japan had envisioned.
Recently, an article, The Gold Correction: What's the Big Deal?, at Seeking Alpha posted the following chart. However, measured from its September 2011 high of $1901.35, gold's fall is 28 %, a drop remarkable similar to its 2008 correction of 27.7 %.
THE 2008 CORRECTION AND/OR MANIPULATION
The 2008 correction of gold occurred during a period of extreme financial and systemic distress. Global markets were in disarray, Wall Street banks were collapsing and trillions of dollars of Fed money was necessary to protect the bonuses of investment bankers whose bad bets had caused the collapse-just the environment when gold would be expected to rise.
Instead, gold fell. In 2008, as today, the same hands were on the scale forcing the price of gold lower. In the fall of 2007, gold had rise from $680 to $1,033, An astounding 51.9 % increase. This is exactly what the paper money cabal feared most, a concomitant rise in the price of gold during a period of extreme financial stress.
If gold quickly rose during a period of heightened investor fear, it would signal to fearful investors that although paper assets were at risk, gold offered not only a safe haven but outsized gains as well; and the investors' subsequent fear-fueled greed would easily dismiss any resistance the paper money cabal might offer.
To counter the allure of gold in such heightened circumstances, in my article, Gold Buying Opportunity of a Lifetime posted March 18, 2009, I wrote:
In 2009, the paper money cabal had also pushed gold lease rates into negative territory to prevent gold from rising above $1,000. On March 17, 2009, in his article, Gold Price Manipulation More Blatant, Patrick Heller wrote:
Mr. Heller need look no further than Alan Greenspan for confirmation that central banks-in collusion with bullion banks-were, in fact, manipulating gold with lease rates. Eleven years before, on July 24, 1998, before the House Committee on Banking and Financial Services, Fed Chairman Alan Greenspan had testified:
Although Greenspan was to fail as an economist he excelled as a politician, and as disingenuous as Alan Greenspan's tenure was, Greenspan's testimony as to the readiness of central banks to lease gold in increasing quantities should the price rise is an admission sufficient to quiet those who would still believe otherwise.
Regarding the central bank leasing of gold, in The Gold Market: Seen Through A Glass Darkly, I wrote:
THE REAL QUESTION IS NOT WHETHER THE FED IS MANIPULATING GOLD BUT WHERE THE GOLD IS COMING FROM
There has been conjecture that gold stolen by Japan from China prior and during WWII is the source of the supply of gold coming onto the market. In 2012, GATA's Chris Powell discounted that possibility in his post, If U.S. had 'Yamashita's Gold', they'd put it in Cracker Jack boxes.
While I concur with Powell that if the US had access to such gold in 1968, they would have employed it to prevent the collapse of the London Gold Pool. It is my belief, however, that such gold did exist but, in 1968, "Yamashita's gold", i.e. China's stolen gold, was still a tightly held secret of the US government privy to only the top echelons of the CIA and a few others.
More importantly, however, in the 1960s China's stolen gold, i.e. 'Yamashita's gold', had not yet been laundered into the international banking system. The laundering of the illicit horde of gold was not to happen until the 1980s, the decade when, not coincidentally, American Barrick, a junior oil and gas producer, was to become Barrick Gold.
No less than the esteemed Professor Antal E. Fekete recognized the possibility of gold laundering by Barrick when he questioned Barrick's inexplicable and self-defeating strategy of unhedged forward selling of gold at prices far below the market.
In his August 2006 article, To Barrick Or To Be Barricked, That Is The Question, Professor Fekete suggested Barricks strategy could, in fact, be an operation to cover up the laundering of gold. The professor wrote:
In my book, Light In A Dark Place, I quote from EP Heidner's Collateral Damage which confirms what Professor Fekete had surmised-but Barrick wasn't laundering gold to complete a gold acquisition program as believed by Professor Fekete - Barrick was, in fact, laundering China's stolen gold to bring it into the international banking system.
CONJECTURE, CONJURING AND CONFIDENCE GAMES
The drop in the price of gold has ignited a frenzy of gold-buying around the world. It is my belief that the gold being sold is not China's stolen gold, but gold purloined from the central banks of countries still vulnerable to the considerable pressure of Western central banks.
In 2012, India's central bank, the Royal Bank of India, received a High Court notice to explain gold deposits currently with the Bank of England and the Bank of International Settlements in Basel, Switzerland. India's central bank is required by law to keep 85% of its gold reserves in India yet 47% of India's gold is deposited with the Bank of England and the Bank of International Settlements, read here.
It is likely that India's gold has been leased by the Bank of England in order to suppress the price of gold. India is a former crown colony and its imperial shackles have not yet been completely removed.
The international monetary system based on credit and debt is, in truth, a confidence game in which gold was once a critical component. But when ties between paper money and gold were severed in 1971, confidence in the bankers' paper money began to falter; and, today we are witness to what happens when confidence in a global confidence game begins to evaporate.
In my current youtube video, The Economic Crisis: Then and Now, I discuss the on-going economic collapse. It isn't over yet. When it is, then and only then, will we be free of the bankers' dream of eternal debt.
Buy gold, buy silver, have faith.
About Darryl Robert Schoon
In college, I majored in political science with a focus on East Asia (B.A. University of California at Davis, 1966). My in-depth study of economics did not occur until much later.
In the 1990s, I became curious about the Great Depression and in the course of my study, I realized that most of my preconceptions about money and the economy were just that - preconceptions. I, like most others, did not really understand the nature of money and the economy. Now, I have some insights and answers about these critical matters.
In October 2005, Marshall Thurber, a close friend from law school convened The Positive Deviant Network (the PDN), a group of individuals whom Marshall believed to be "out-of-the-box" thinkers and I was asked to join. The PDN became a major catalyst in my writings on economic issues.
When I discovered others in the PDN shared my concerns about the US economy, I began writing down my thoughts. In March 2007 I presented my findings to the Positive Deviant Network in the form of an in-depth 148-page analysis, "How to Survive the Crisis and Prosper In The Process."
The reception to my presentation, though controversial, generated a significant amount of interest; and in May 2007, "How To Survive The Crisis And Prosper In The Process" was made available at www.survivethecrisis.com and I began writing articles on economic issues.
The interest in the book and my writings has been gratifying. During its first two months, www.survivethecrisis.com was accessed by over 10,000 viewers from 93 countries. Clearly, we had struck a chord and www.drschoon.com, has been created to address this interest.