SW Richmond

Are We More Like 1932 - or 1923?

Physical gold has no counterparty risk, and it cannot be used to create derivative products that are used against you. Precious metals investors should indulge in physical.

Did the ECB Save Comex from Gold Default? (Part 2)

Mr Goodman,

The government and the Federal Reserve now have a direct hand in every aspect of our economy. Though SA is an economics site, it must be obvious to all that any discussion of economic outlook or trends must start and end with politics and likely government actions. That is a horrible and unacceptable reality which we must correct.

The nationalization of the economy is nearly complete. Taxpayer calls to their "elected officials" are either completely ignored or rendered meaningless by illegal Fed circumvention. If Congress won't approve it, the Fed will merely create another lending facility and fund it with new money which ultimately becomes a liability to the taxpayers.

Regarding gold market manipulation: there are a few major possibilities I can see from where I sit. The one that makes the most sense to me is sovereign-backed manipulation for mutual benefit. Anyone who's been paying attention can now plainly see the Leviathan alignment / alliance of big money and big politics (Wall Street and Washington). Big players in the paper / derivative markets could easily push the tiny PM markets around as long as they knew they were backed by the central bank and its printing presses. Potential losses don't matter when TARP money isn't audited, or any other of the monstrous alphabet-facilities. If they win, great for them, and if not, there's always tomorrow and more taxpayer money. This would simply be another example of the same "privatization of profits, socialization of losses" that we have already seen elsewhere.

I think it is unwise to dismiss the manipulation as merely profit-motivated. So many authors and commentators are not well versed in the political motives of central banking and fiat currency. History is replete with examples waiting for the reader to find. Under "normal" circumstances, the most expensive thing any government does is prosecute a war; the second most expensive is placating the masses with bread and circuses (Social Security, Medicare, welfare, AFDC, SSI, NASA, etc etc). These endeavors can be paid for by taxes and/or by inflating the currency. Government borrowing merely means deferring the payment of taxes until "later". A central bank and an inflatable fiat currency play vital and irreplaceable roles in the maintenance of empire and the placation of the masses.

Under crisis conditions such as now central banking makes it possible to foist massive debt upon the backs of the taxpaying producer class against their will and without their consent.

The solution to the gold manipulation is to take delivery and empty the exchanges. This process will of course be met by increasingly difficult delivery terms; as gold supplies dwindle rule changes will be incrementally implemented to make it appear that the exchanges still function without delivering on all contracts held for delivery. Monthly delivery limits, market participant "standing" rules, and of course encumbrances on existing large known gold stocks will all be used to suppress the price. Anything is possible when you can make the rules as you go and you have effectively stifled dissent. This government, central bank and Wall Street have already clearly demonstrated their willingness to lie, cheat and steal, and out in the open for all to see. They know the system is totally co-opted and there's little to nothing we can do about it.

Except complain, and continue to demand delivery. This is at last being done by big private money finally starting to chase gold. It will be a long battle. As far as I am concerned this IS Jim Sinclair's "battle royale at $1,000.00".

I am sending faxes to your list of congresspeople.