Monday, February 3, 2014

ECONOMIC COLLAPSE 2014 -- Fiat Currency Printing, Inflation, Deflation, Gold Manipulation





The markets were surprised when the Federal Reserve did not announce a tapering of the quantitative easing bond buying program at its September meeting. Indeed, its signal to the market that it was keeping interest rates low was welcome, but there may be a hidden agenda.

The deregulation of the financial system during the Clinton and George W. Bush regimes had the predictable result: financial concentration and reckless behavior. A handful of banks grew so large that financial authorities declared them "too big to fail." Removed from market discipline, the banks became wards of the government requiring massive creation of new money by the Federal Reserve in order to support through the policy of Quantitative Easing the prices of financial instruments on the banks' balance sheets and in order to finance at low interest rates trillion dollar federal budget deficits associated with the long recession caused by the financial crisis.

The Fed's policy of monetizing one trillion dollars of bonds annually put pressure on the US dollar, the value of which declined in terms of gold. When gold hit $1,900 per ounce in 2011, the Federal Reserve realized that $2,000 per ounce could have a psychological impact that would spread into the dollar's exchange rate with other currencies, resulting in a run on the dollar as both foreign and domestic holders sold dollars to avoid the fall in value. Once this realization hit, the manipulation of the gold price moved beyond central bank leasing of gold to bullion dealers in order to create an artificial market supply to absorb demand that otherwise would have pushed gold prices higher. The manipulation consists of the Fed using bullion banks as its agents to sell naked gold shorts in the New York Comex futures market. Short selling drives down the gold price, triggers stop-loss orders and margin calls, and scares participants out of the gold trusts. The bullion banks purchase the deserted shares and present them to the trusts for redemption in bullion. The bullion can then be sold in the London physical gold market, where the sales both ratify the lower price that short-selling achieved on the Comex floor and provide a supply of bullion to meet Asian demands for physical gold as opposed to paper claims on gold.
The evidence of gold price manipulation is clear. In this article we present evidence and describe the process. We conclude that ability to manipulate the gold price is disappearing as physical gold moves from New York and London to Asia, leaving the West with paper claims to gold that greatly exceed the available supply.

The subject video covers an undercovered story on the missing German gold. Back in the 1950′s Germany, along with several other nations sent their gold to the U.S. Federal Reserve. Several months ago, Germany asked that some of their gold be returned. The Fed refused. Germany then asked to inspect the gold. Again the Fed refused.

So what would you think? I would think they don't have it. I would suspect they stole it. Of course those in Germany and other nations aren't stupid. If there are any shenanigans going on, some in positions of power in those nations have to be in on it. Now, with at least 20 years of manipulation in the gold and silver markets, the chickens are coming home to roost. You can't do this forever and you can't keep it a secret forever.

There have been many stories on major banks selling gold and silver they don't have. That's what keeps the market depressed. Sooner or later ( and I think it's sooner ), even the conspiring nations will expose this to deflect blame from themselves. This is, still another, nail in the "dollar coffin". It is the hubris of those multinational bankers that will do them in. In the meantime, I'd be buying gold and silver.

If you are anxiously awaiting the arrival of the "economic collapse", just open up your eyes and look at what is happening in Europe. The entire continent is a giant economic mess right now

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