The Global Banking conspiracy to Suppress Gold and Keep the US Dollar afloat now reaching an end. Gl
In the article below titled Are Big Banks Using Derivatives To Suppress Bullion Prices?, former US Assistant Treasury Secretary under the Reagan Administration, Dr. Paul Craig Roberts, exposes the manipulation of gold prices by the global banking cartel and how they are using it to delay the inevitable: US Dollar collpase and a global financial crisis. To learn more about about Paul Craig Roberts read here.
But first to understand why the timing of Craig's article is important and critical, we list below 6 reasons below:
Physical Gold supply at COMEX is now at critical level. Savvy investors (including a number of billionaires) and powerful nations that see the hand writing on the wall (led by Russia and China) are aware of what's going on and have been using the time to accumulate physical gold before the systems implodes, the US Dollar collapses and the true market value of precious metals are unleashed. A climax is about to unfold that could result in the greatest financial scandal in history. The actual amount of physical gold available in the world's largest gold exchange, The COMEX, has dwindled down to a mere few weeks worth of supply as smart physical gold buyers scramble to use the same derivatives to buy and withdraw anything they can from the warehouses before they become empty. As of this writing, there are now 293 ounces of paper (derivatives) claims for each one ounce of physical gold or a ratio of 293:1. From hundreds of tons of supply available a year ago to a mere 5 tons as of this writing. One more major withdrawal and the COMEX could default on all undelivered claims assuming the COMEX and its member bullion banks have been reporting their gold supply accurately. If this were to happen financial expert Bill Holter anticipates China (some reports suggest China already has accumulated between 7,000-10,000 tons of gold at the expense of Western vaults) could revaluate the physical gold price to $100,000 per ounce from the current paper price of $1,100 per ounce to solve it's own multi-trillion dollar debt problem. Is it any wonder that megabillionaires such as George Soros and Carl Icahn have been quietly taking massive positions in gold?
Geo-Political tensions have reached critical levels as the United States prepares for the prospect of war with Russia in the Balkans where deployments are ramping up quickly, in Syria, and with China in the South China Sea. Take note that whenever, a global financial crisis is about to break out, war is often used as a cover to hide the truth.
China (and also Russia) has been responding to the unmitigated Quantitative Easing (ie. money printing) by dumping US Treasuries at an accelerating rate now reaching $250 billion in the past 10 months ($100 billion alone within two weeks last August) at a time when a new report has emerged that the US actual debt is actually 3 times larger than the official estimate as more Quantitative Easing is expected to continue a competitive currency devaluation "race to the bottom". Experts agree that the Fed is now caught in a bind. Printing more will lead to a currency crisis and a US Dollar failure. And not doing it will lead to a market melt down as the economy enters recession. In contrast to the US Dollar's prospective decline, China's accumulation of gold reserves do not hide its ambition to elevate its currency, the Yuan, to global currency reserve status. As billionaire money manager Eric Sprott pointed out recently, the U.S. is broke and it's GDP cannot sustain debt interest payments any further, and much less, embark on more quantitative easing.
The Petro-Dollar regime is on the brink of collapse as Saudi Arabia's present regime battles to survive amid coup fears.
The $700 Trillion derivatives market is a ticking time bomb that can be ignited by a potential 'black swan" events such as war, another Greece default, a terror event, etc. each of which can cause a chain-reaction and threaten to take down the entire financial system. To understand how and why read here and here. Billionaire investor Warren Buffet himself calls derivatives "weapons of mass destruction" and warns they are likely to cause trouble.
The New World Order's plan of "Ordo Ab Chao" (Order out of chaos) to give rise to a global government as a solution to a worldwide crisis is on track with an occultic time line planned hundreds of years ago culminating in 2016. The bible prophecy predicts in Revelation 6:5-6 of a coming global hyperinflationary crisis which the Antichrist will take advantage of to rise to power. Could this be a scenario engineered precisely for that purpose?
"And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand. And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine." Revelation 6:5-6
Are Big Banks Using Derivatives To Suppress Bullion Prices?
Submitted By Paul Craig Roberts and Dave Kranzler via www.paulcraigroberts.org
We have explained on a number of occasions how the Federal Reserve’s agents, the bullion banks (principally JPMorganChase, HSBC, and Scotia) sell uncovered shorts (“naked shorts”) on the Comex (gold futures market) in order to drive down an otherwise rising price of gold. By dumping so many uncovered short contracts into the futures market, an artificial increase in “paper gold” is created, and this increase in supply drives down the price.
This manipulation works because the hedge funds, the main purchasers of the short contracts, do not intend to take delivery of the gold represented by the contracts, settling instead in cash. This means that the banks who sold the uncovered contracts are never at risk from their inability to cover contracts in gold. At any given time, the amount of gold represented by the paper gold contracts (“open interest’) can exceed the actual amount of physical gold available for delivery, a situation that does not occur in other futures markets.
In other words, the gold and silver futures markets are not a place where people buy and sell gold and silver. These markets are places where people speculate on price direction and where hedge funds use gold futures to hedge other bets according to the various mathematical formulas that they use. The fact that bullion prices are determined in this paper, speculative market, and not in real physical markets where people sell and acquire physical bullion, is the reason the bullion banks can drive down the price of gold and silver even though the demand for the physical metal is rising.
For example last Tuesday the US Mint announced that it was sold out of the American Eagle one ounce silver coin. It is a contradiction of the law of supply and demand that demand is high, supply is low, and the price is falling. Such an economic anomaly can only be explained by manipulation of prices in a market where supply can be created by printing paper contracts.
Obviously fraud and price manipulation are at work, but no heads roll. The Federal Reserve and US Treasury support this fraud and manipulation, because the suppression of precious metal prices protects the value and status of the US dollar as the world’s reserve currency and prevents gold and silver from fulfilling their role as the transmission mechanism that warns of developing financial and economic troubles. The suppression of the rising gold price suppresses the warning signal and permits the continuation of financial market bubbles and Washington’s ability to impose sanctions on other world powers that are disadvantaged by not being a reserve currency.
It has come to our attention that over-the-counter (OTC) derivatives also play a role in price suppression and simultaneously serve to provide long positions for the bullion banks that disguise their manipulation of prices in the futures market.
OTC derivatives are privately structured contracts created by the secretive large banks. They are a paper, or derivative, form of an underlying financial instrument or commodity. Little is known about them. Brooksley Born, the head of the Commodity Futures Trading Corporation (CFTC) during the Clinton regime said, correctly, that the derivatives needed to be regulated. However, Federal Reserve Chairman Alan Greenspan, Treasury Secretary and Deputy Secretary Robert Rubin and Lawrence Summers, and Securities and Exchange Commission (SEC) chairman Arthur Levitt, all de facto agents of the big banks, convinced Congress to prevent the CFTC from regulating OTC derivatives.
The absence of regulation means that information is not available that would indicate the purposes for which the banks use these derivatives. When JPMorgan was investigated for its short silver position on Comex, the bank convinced the CFTC that its short position on Comex was a hedge against a long position via OTC derivatives. In other words, JPMorgan used its OTC derivatives to shield its attack on the silver price in the futures market.
During 2015 the attack on bullion prices has intensified, driving the prices lower than they have been for years. During the first quarter of this year there was a huge upward spike in the quantity of precious metal derivatives.
If these were long positions hedging the banks’ Comex shorts, why did the price of gold and silver decline?
More evidence of manipulation comes from the continuing fall in the prices of gold and silver as set in paper future markets, although demand for the physical metals continues to rise even to the point that the US Mint has run out of silver coins to sell. Uncertainties arising from the Greek No vote increase systemic uncertainty. The normal response would be rising, not falling, bullion prices.
The circumstantial evidence is that the unregulated OTC derivatives in gold and silver are not really hedges to short positions in Comex but are themselves structured as an additional attack on precious metal prices.
If this supposition is correct, it indicates that seven years of bailing out the big banks that control the Federal Reserve and US Treasury at the expense of the US economy has threatened the US dollar to the extent that the dollar must be protected at all cost, including US regulatory tolerance of illegal activity to suppress gold and silver prices.
To learn more about how one can can protect oneself from a global currency crisis, holding physical allocated gold through private vaults such as Gold Money's Bitgold service can provide safe and secure access at minimal investment levels. It's critical to keep your gold out of the banking system.
To learn more about the coming US Dollar Collapse, check out Jim Rickard's presentation "The End of the Dollar". Jim Rickards is a financial expert who has advised the Pentagon on financial matters affecting US National Security.
To Learn more about this topic, check out ETW's Strategic Trends Page under Finance & Money
