http://www.financialsense.com/contributors/clif-droke/how-will-gold-respond-global-deflation

Cory I can’t recall if you’ve had Roberts on your show or not…..you are going to want to read this:

The Paul Craig Roberts Dilemma: World War Or The End Of The Dollar

http://www.zerohedge.com/news/2014-04-10/paul-craig-roberts-dilemma-world-war-or-end-dollar

As Roberts says it’s a fight to the death between gold and the dollar.

Two things. Leaps on both gold and DIL Ed near current in the money strikes are 5-6 times more expensive in gold than silver. Given 64-1 gold to silver price ratio avg it would seem likely that silver contracts would be in larger numbers than gold. Finally. With Silver at most Oversold level in history there may be a valid reason for speculation

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/10_Shocking_Charts_Show_Silver_Set_For_A_Staggering_$70_Surge.html

HAS anyone read this article?

I read the article.

It pretty much scares the hell out of me.

That’s about all I can say.

The US Government Has Rigged Precious Metals Markets For 80 Years!

By Patrick A Heller on April 10, 2014
Commentary on Precious Metals Prepared for CoinWeek.com ……..

By now, I suspect that many of you have heard about the 60 Minutes program two Sundays ago. It exposed the impact of high frequency trading at 1) increasing the profits of brokerage firms, and 2) resulting in individual investors selling their holdings for a lower price and paying higher prices to purchase their investments.

The main thing that surprised me about this story is why it took so long to be covered by the major media. I exposed this activity at least five years ago, and other commentators and analysts who never seem to get the time of day from the popular media have been talking about such shenanigans for up to 20 years.

What didn’t really surprise me is that the 60 Minutes coverage only included the tip of the iceberg about how US stock, bond, currency, and commodity markets are manipulated. The US government has been involved in manipulating these markets since the mid-1930s! Further, high frequency trading is just one small tactic used to rig markets.

To augment the 60 Minutes story, let me share with you part of “the rest of the story.”

The US government’s Exchange Stabilization Fund within the Treasury Department was established way back in 1934. It began operations 80 years ago this month. It was initially financed by $2 billion of the profits the US government realized when it raised the official price of gold from $20.67 to $35 per ounce. The ESF was explicitly authorized to deal in gold and foreign exchange markets and was not subject to legislative oversight.

In 1970, the law was modified so that the Secretary of the Treasury, with the approval of the President, can use the ESF assets to “deal in gold, foreign exchange, and other instruments of credit and securities.”

539w The US Government Has Rigged Precious Metals Markets For 80 Years!Next, after the stock market crash in October 1987, President Reagan signed Executive Order 12631 creating the Working Group on Financial Markets. The four members of this group, commonly called the Plunge Protection Team, are the Secretary of the Treasury and the chairs of the Federal Reserve Bank, the Securities and Exchange Commission, and the Commodity Futures Trading Commission. This team is charged with “enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation’s financial markets and maintaining investor confidence.” To achieve this market manipulation to prevent major declines in the stock market or the US dollar, the Plunge Protection Team is authorized to use direct government action as well as coordinate its tactics with exchanges, clearinghouses, self-regulatory bodies, central banks, private banks, and brokerages.

Later, in January 1999, with the endorsement of then Federal Reserve Chair Alan Greenspan, Treasury Secretary Robert Rubin, and Securities and Exchange chair Arthur Levitt Junior, 12 major international commercial and investment banks established the Counterparty Risk Management Policy Group.

The initial banks in this Group were Goldman Sachs, JP Morgan, Bear Stearns, Barclays Capital, Deutsche Bank, Credit Suisse, UBS, Merrill Lynch, Morgan Stanley, Lehman Brothers, Citicorp, and Chase Manhattan. Working groups of this organization also included the participation of people representing AIG, Tiger Management, Societe Generale, General Motors, Bank of Tokyo Mitsubishi, and George Soros. Bank of America later became part of this group.

logos The US Government Has Rigged Precious Metals Markets For 80 Years!Turning flowery language into plain English, the purpose of this group was to reduce the risk of falling profits at these companies. In order to achieve this goal, six measures were identified. The first was to arrange for the confidential sharing of trade secrets among members of this group. This included disclosure of important counterparty relationships and details about each company’s trading and investment strategies. If any other group engaged in such conspiracies, all sorts of US regulatory agencies would come down on it.

Many of these same companies are also approved primary trading partners of the US government. In this capacity, they earn fees in return for executing trades to manipulate markets as directed by the US government. Much of this activity takes place in thinly traded futures markets before daily trading begins or in the last few minutes before a market closes.

All of the declassified government documents thus far have confirmed that the US government, directly or through intermediaries, has manipulated gold prices from the 1930s into the late 1990s or at least made arrangements to be able to do so. In the official records, people such as Paul Volcker, Alan Greenspan, Henry Kissinger, and others made statements confirming, at a minimum, that the US government stood ready to manipulate gold prices. Why should the US government have changed this practice in subsequent years when the existing legal authority and financial arrangements were already in place?

dollar The US Government Has Rigged Precious Metals Markets For 80 Years!The value of the US dollar, despite long-term efforts by the US government and its allies to support it, has fallen about 78% against gold since December 31, 2001 (and down about 77% against silver over the same period).

In recent weeks, partly as fallout of events from the Ukraine and Crimea, there are significant efforts underway to displace the use of US dollars in major parts of international commerce. To the extent that such efforts are successful, they will weaken the dollar’s status as a global currency and lead to potentially trillions of dollars of US currency and Treasury Debt being repatriated. As this occurs, the value of the US dollar is at a high risk of falling significantly in value.

It seems to me that much of the market rigging activity by the US government and its partners and allies over the past few weeks has focused on propping up the value of a shaky US dollar. One of the major tactics pursued to support the dollar is to suppress gold and silver prices. I suspect that the recent dip in precious metals prices was pretty much all an artificial manipulation rather than a result of free market trading activities.

Until we know for sure, what would you rather trust: A politician’s promise or an ounce of physical gold or silver that you have in your direct possession?

Art CASHIN……at KWN………..has a great article concerning the FED comments.
…….”.the lending institutions” have……………….
1000 times to much money on their books…………$2.7 TRILLION……. where normally , they would have ………..$2 BILLION….
IF, the banks have 1000 TIMES. more money……….what does that tell us………

I like this article as it supports what Ive been saying around here. (not quite 80 years tho)
I wonder if Bob would have an opinion ?
The feds powerfull with lots of practice, I don’t think they lose control so easy.
My guess is they take the price down yet again and “load up” before allowing a slow steady rise.
A few bumps of course, and the guessing becomes “how high do they take it?”
Its possible gold becomes a “never sell”.

TOTAL CORRUPTION AND ALL WE DON’T NOW YET !!!!!!!!!!! aaaa GOOD WEEKEND GUYS !!!!!!!

Art Cashins points out 2.5 trillion in cash. Banks getting monkey hammered lately….profits down….they get QE money and sit on it since lending it out pays nothing. Then when QE dries up they start lending the money (mortgage requirements go down, commerical lending up..you get the point) and the money supply flows. Then….INFLATION. 2.5 trillion worth of Inflation plus the multiplier effect…. A great case for gold and silver.

pce of a Paul Craig Roberts article today.

Is the U.S. or world coming to an end.

China has been uncertain about the trade-offs between its trade surpluses with the US and Washington’s growing encirclement of China with naval and air bases. China has come to the conclusion that China has the same enemy as Russia has–Washington.

One of two things is likely: Either the US dollar will be abandoned and collapse in value, thus ending Washington’s superpower status and Washington’s threat to world peace, or Washington will lead its puppets into military conflict with Russia and China. The outcome of such a war would be far more devastating than the collapse of the US dollar

I guess your putting your faith in the american military complex being sane. lol
I agree, I don’t think we are going to destroy ourselves with “nukes”, I see our challenge as environmental.
But, if we are not going to kill ourselves Mr Roberts gives us the other scenario,
the loss of the reserve status of the American dollar.
Ive been reading the Russians and Chinese are both considering backing with gold.
Other countries should follow.

No need for panic, 5-10% gold, no debt and enough supplies to ride out disruption.
It wont be the end of the world, just a reorganisation of rules.