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Gold Manipulation & War Are All About the Petrodollar Empire

I talk frequently in this letter and on my radio show about gold market manipulation. David Jensen has provided some of the best insights into how powerful interests who own the Federal Reserve Bank are able to use dollars created out of thin air to bomb both the futures and spot gold paper market to deny price discovery to the yellow metal. It is no secret why this manipulation of the gold market is carried out. Both Alan Greenspan and Lawrence Summers have clearly provided the incentive for doing so. Greenspan succinctly pointed it out in his article published in Ayn Rand’s “Objectivist” newsletter in 1966 and Lawrence Summers in a paper he coauthored on Gibson’s paradox. Both men knew that in order for governments to rule tyrannically over the populace, you had to force the masses to use government decreed money and not choose for themselves what they use as a medium of exchange. If any of you doubt that the price of gold is manipulated in a downward direction, then you need to listen to my interviews with David Jensen at http://jaytaylormedia.com/audio/ and explore the massive evidence of gold market manipulation at www.Gata.org.

The Paper Gold & Silver Fraud
(What you see is not what you get!)

I am indebted to my friend David Jensen for the table shown above. It was constructed from research he carried out and, more specifically, from information provided by the LGMA, before speaking on several podcasts in which David explained HOW gold bullion price discovery is denied the markets by the economic fascists/Military Industrial Complex who own the Fed and rule over the Anglo-American Empire. 

Notice that the daily trading volume (second column from the left) is 10 times larger than the net clearing volume. In other words, 90% of the trades conducted during the day are closed out before the end of the day. Only 10% of the trades are netted out at the end of the day (first column on the left). On average, then, 207 million ounces of paper gold is traded during a given day, compared to only 20.7 million ounces netted out during the day. In other words, sell orders can be executed in one minute and then taken off, based on computer trading models, thus creating a price that has little or nothing to do with the actual sale or purchase of gold. Also, note the size of gold trading in a given day (207 million ounces) compared to the total amount of gold produced in a given year (90 million oz.). Of course, as the next-to-last column shows, there is allegedly 1.2 billion ounces of gold sitting in the vaults of central banks. No one knows for sure how much of this gold is actually in the vaults of central banks, or to the extent it is, no one knows who really owns it or thinks they do own it. It has been alleged that much of the same gold sitting in central banks may have been leased out multiple times. Do you see why it would be a good idea to audit the Fed?

The main thing the Powers That Be (PTB) are concerned about is maintaining the con job to keep people believing they own gold without actually taking delivery of it, much the same as they want you to believe your paper money is really in the bank for you, when the bank in fact has nowhere nearly enough money to meet all demands of depositors if they all wanted their money at the same time. So, gold and silver markets are not unique in that regard. They are unique in that gold and silver are real money with real value, while the dollar has zero intrinsic value.

The problem the PTB are guarding against—and the reason they need to maintain a lid on the price of gold—is that if confidence in the existing dollar monetary system is lost, the massive amount of demands to buy gold (noted above as “Open Interest,” which ranges from an estimated average of 414 million ounces to 621 million ounces) could quickly threaten gold stockpiles and drive prices dramatically higher if all those people chose to take delivery of gold rather than be satisfied with settling out in intrinsically worthless paper dollars.

If you are thinking that such an eventuality is out of the question, then think again. In fact, yours truly witnessed a run from the dollar into gold beginning to unfold in 1980 when gold began to rise exponentially in price as people were very quickly losing faith in the dollar. Gold rose from $35 in just a few years to a blow-off $850. A panic out of the dollar was very rapidly developing by January 1980. It was only double-digit interest rates paid by the U.S. Treasury to savers, orchestrated by the Volcker Fed, that saved the dollar in 1980.

Since then, or at least following the stock market crash of 1987, the President’s Plunge Protection Team has been increasingly involved in the manipulation of all financial markets, including gold. But none is more important than gold, because if there is a flight out of paper into gold, not only does the dollar head toward its intrinsic value of zero, but the entire empire comes tumbling down too! 

On Silver

Because gold is the driver in the precious metals markets, I did not mention silver. But note from the numbers in the chart above, silver has a much more serious physical shortage than does gold. The daily trading volume for silver is 1.72 billion ounces, compared to only 0.9 billion ounces from official central bank stockpiles and a mere 0.8 billion ounces produced annually.

Jay Taylor



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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