Stacy Summary: Many complain of manipulation of precious metals markets, here is Martin Armstrong with his response. Personally, I think what manipulation there is has nothing to do with suppressing long term prices but everything to do with managing perception. The purpose of the psyops is to sow seeds of doubt that gold is a safe haven or a store of value. The perception managers are attempting to convince the population to continue placing value, instead, in US Treasuries and the US dollar. We know treasury officials across the world meet regularly to openly discuss managing relative values of currencies, it is not a big conspiracy that they wish to do so. Anyway, your thoughts in the comments section!
We discuss the season for CRASH as algos reading Twitter cause a hack crash in New York; ghost traders in the shadow banking system cause gold ‘slaughters’ in the precious metals markets and Joe Weisenthal seeks smoke signals from the Pope of Fraud, Ben Bernanke. In the second half of the show Max talks to Andrew Maguire about precious metals markets, manipulation and failures to deliver.
Hi Max: I am a regular watcher of your show (great stuff!!).
Did you notice what happened SIMULTANEOUSLY on the gold and silver spot NYC markets at 11:30 a.m. today (April 26, 2013). This is exactly as described by your guest Andrew Maguire. These manipulating bastards don’t even bother to hide their manipulations any more…it is “in your face.” I am buying as much physical silver as I can afford. Every time the market is manipulated down I buy more.
We follow the ounces not the prices in the precious metals market and discuss the psyops of the gold war where sales of 1100 tons (45% of annual new supply) is sold into the market at once in order to alter behavior. They observe crowds stampeding in the East for more physical gold while in the West, people are put on a restricted debt diet controlled by their governments based on needs not wants. Finally, they discuss the conflicts of interest at the heart of CISPA and Max starts his own hashtag – #AmericaFatigue. In the second half of the show, they talk to Wolf Richter of Testosteronepit.com about gold smashes, wealth grabs and government and Wall Street corruption.
We discuss Reinhart and Rogoff, Excel errors, correlation and causation and the gold selloff being a bonus for ‘activist central bankers’ who can now claim ‘hyperinflation no longer a threat.’ In the second half of the show, they talk to Dr. Paul Craig Roberts about the smack down in gold and the failure of ‘laissez-faire capitalism’.
In waking up too late that there was a problem after gold futures markets have been flirting with backwardation for a year or so, officialdom was forced to act. Act it did in a typically haphazard fashion. A few days ago, on April 12 and 15 the paper gold market was demoralized by a ferocious attack on the lofty gold price. This in and of itself is proof that Bernanke is fully aware that permanent gold backwardation is imminent, and that it will create and unmanageable situation. It’s got to be stopped in its track at all hazards.
Well, well, well. Gold is not the same as frozen pork bellies after all. The Hydra is not taking it lying down. The kid gloves have finally come off.
Bernanke is trying to stop gold backwardation by selling unlimited amount of gold futures contracts through his stooges, the bullion banks. He is underwriting losses they are certain to suffer in due course. We can take it for granted that they haven’t got the gold to make delivery on their contracts. In fact, delivery of gold will be suspended under the force majeure clause. Short positions will have to be settled in cash, to be made available by the Fed’s printing presses. Gold futures trading will be a thing of the past.
We discuss innuendo and paper causing a virtual theft of paper gold in America and a stampede into physical gold in India. They also discuss the five wise guys of Angela Merkel who plan on ‘bailing in’ some property owners in Spain should Spain require a sovereign bailout. In the second half of the show, they talk to Ed Harrison of CreditWritedowns.com about confiscation and German opinion on Europe.
I’m not a conspiracy buff, but everything suggests that the West, in ways not necessarily illegal, hopes to kneecap gold. It may work for a while, too but eventually gold will migrate into a reserve currency basket and its price will advance many times from its current level.
Economist Norbert Haering, discussing ”the veil of deception over money”, argues that closely limited and clearly specified interests distort deliberately the true nature of banking.
Related to Germany’s gold reserve abroad, Haering from “Das Handelsblatt” says:
“The specifics of the plan for partial repatriation of gold seem to be designed to quash the public discussion about gold storage abroad. For many years to come, the Bundesbank will be able to answer these calls by saying: we are already working on it. And that will work well as a communication strategy. But the truth of the matter is that there is no good reason to store your national gold treasure abroad. The issue and the way in which the Bundesbank got itself tangled up in conflicting statements and justifications during these discussions makes one suspicious that either there is a problem with the gold or that Germany might not be as sovereign a state as we like to think. I do not know which one is true.”
Anyone on the fence with regard to Bitcoin should consider coming to the side of supporting it after reading Paul Krugman’s ridiculous and riddled with errors hit-piece in the New York Times this weekend. The key tipoff as to where he is coming from in this absurd editorial is in the title itself in which he calls Bitcoin an “antisocial network.” Anti-social is one of the most favored collectivist/fascist terms and concepts of all time. A term meant to demonize those in a particular society that think for themselves rather than conform to whatever the oligarchs or dictators in charge of the state deem appropriate or “social.” Jews would have been seen as “antisocial” in Nazi Germany, just as anyone with glasses would have been deemed “antisocial” in Pol Pot’s Cambodia. This is a very dangerous term and one that is intended to guilt people into the acceptance of a stale, authoritarian and conformist society.
“I love the markets. I love the fact that gold is finally breaking down. That will offer an excellent buying opportunity. I would just like to make one comment. At the moment, a lot of people are knocking gold down. But if we look at the records, we are now down 21% from the September 2011 high. Apple is down 39% from last year’s high. At the same time, the S&P is at about not even up 1% from the peak in October 2007. Over the same period of time, even after today’s correction gold is up 100%. The S&P is up 2% over the March 2000 high. Gold is up 442%. So I am happy we have a sell-off that will lead to a major low. It could be at $1400, it could be today at $1300, but I think that the bull market in gold is not completed.”
Today we have commodities breaking down including gold. At the same time we have bonds rallying very strongly. If you stand aside and you look at these two events, it would suggest that they are strongly deflationary pressures in the system. If that was the case, I wouldn’t buy stocks or sovereign bonds because the stock market would be hit by disappointing profits if there was a deflationary environment.”