Written by: Avery B. Goodman
Recently, almost all prognosticators were predicting that Donald Trump would lose the 2016 election and that Hillary Clinton would be our new President. A lot of people were, and still are astonished, at the fact that I was certain that Mr. Trump was going to be our new President, a week before the election, at a time that all the polls said he was sure to lose. Indeed, if by some miracle Trump happened to win, almost everyone said the price of gold would soar. When Mr. Trump defied all their expectations and did win, it did soar, but only for a few hours. After that, it was downhill all the way. Many people continue to be perplexed. The confusion comes from the fact that, even though most people now realize the price of gold is rigged, they don’t fully grasp what that means.
It really is amazing what you can learn about the world around you, simply by carefully watching the machinations of market manipulators. Those of us who look closely at gold price manipulation knew that Donald Trump would be the 45th President of the United States. We already told our friends about it, and they’d all already had their full of laughing at us. We said it didn’t matter what the polls were reporting. We knew the public polls were lying. We had much more reliable pollsters working for us. The best thing about it was that banksters were the ones who paid for those pollsters. We didn’t pay one red cent!
I am going to use this article as a nice way to avoid having to repeat the same story to a hundred different people. I am going to tell you how I knew. To benefit from what I am about to share with you, cleanse your mind of all the preconceptions you came in with. Forget about the money supply, market sentiment, exchange rates, inflation, and inflationary expectations. Forget about the quaint notion that supply and demand (in the short to medium run) has anything to do with the price of gold. Most importantly, forget about technical analysis. Fibonacci is as worthless as an Elliott wave when the manipulators paint the tape. It’s all rubbish.
The pricing factors I’ve just rattled off, in the preceding paragraph, do affect gold prices at specific points of time. But, in determining the near-term price of gold, they pale to insignificance compared to market manipulation. A lack of supply, for example, will eventually cause the price of gold to rise over the very long term. This will happen mainly because western central planners have a limited supply of gold and want to conserve it. Accordingly, they may obey a political decision to slow down the hemorrhage of yellow metal from their vaults. That causes prices to rise. It’s probably the reason gold prices rose dramatically from 2001 to 2011.
Here is the bottom line: the pricing factors that pundits like to talk about eventually matter. They just don’t matter now. They will matter when the official gold reserves of the United States are exhausted or closed off to access by market manipulators for political reasons. Their closure, as a matter of fact, is about to happen next year, so you won’t have to wait very long. But, in the meantime, until Mr. Barack Obama actually leaves the White House, what matters most is what the market manipulators do. It’s that plain and simple.
Gold is under-supplied and over-demanded, and this has been true for a very long time. Since the Crash of 2008, this problem has grown exponentially. The gap between supply and demand is now enormous. As I pointed out, way back, at the end of the summer of 2015, the deficiency of supply meant that a minimum of 606 tons had to be pumped in to meet demand in 2015. By 2016, if they had not allowed prices to rise, someone would have had to supply something like 1,345 tons, in 2016, to keep prices below $1,200 per ounce.
Soon after I wrote the article, Goldman Sachs began buying physical gold like it was going out of style, even as they were telling everyone else to sell. About 6 months after they stocked up, prices began to soar. Asset prices often tend to move on that approximate timetable when Goldman is involved. But, the key thing to remember is that physical gold (unlike electronic futures contracts) cannot be conjured out of thin air. The hard yellow metal must come from somewhere. The most likely origin for the massive tonnage of gold that has backstopped market manipulation, for the last 5 years, is the United States Gold Reserve.
The Obama administration appears to have agreed to guaranty the banksters’ downside gold manipulations with “location swaps”. In a “location swap”, a lien is placed on bars of gold stored in an inconvenient location in exchange for bars of gold stored in a convenient location. The liens are assigned to a bank that has possession of easily deliverable bars of gold. It is highly likely that the Federal Reserve and Bank of England, which hold great quantities of gold on behalf of foreign governments, were assigned liens against US Treasury gold held at Fort Knox. Once in possession of the liens, the Fed and BofE delivered the gold bars from their vaults into the market via J.P. Morgan and other banks.
Can I prove this scenario with the required level of certainty in a court of law. No. It would be impossible. No private attorney could ever succeed in proving it. To prove it to a formal legal standard, you need the power to send agents to seize documents and things before the banks could destroy them. Only a determined US prosecuting attorney, or the Attorney General of the United States has that kind of power and because the issue is so sensitive that is unlikely to happen even under the Trump administration. Yet, the conclusions are so logical and so deeply supported by the circumstantial evidence and common sense, that they are almost certain to be true.
The CEOs of all of the major international banking houses that deal in gold paid a visit to the White House, at 11:00 am, the day before the biggest price attack in history was launched against gold in April, 2013. They didn’t go there to play checkers. Nor were they there to commiserate with Obama about the banking industry as the media reported at the time. The latter claim is just a cover story. The CEOs went there to talk about gold, and to urge Obama to release enough of it to silence the “canary in the coal mine” (gold price increases) because it was loudly chirping that his policies, which they supported, were failing.
In short, American government has been supplying physical gold to back up gold price manipulation. I am not talking about merely supplying what is required to back up .4% of the futures contract buyers at COMEX who demand physical delivery. I am talking about backing up the gap amounting to hundreds and even well over a thousand tons of the stuff every year. This is metal that must be delivered by the banks all over the globe — to China, India, South America, Europe and the Middle East.
For example, when gold was selling for less than $1,200 per ounce, some entity (whom I nicknamed the “gold supplier of last resort) supplied a minimum of 606 tons of gold (probably a lot more) in 2015. By 2016, that same entity would have had to deliver 1,345 tons more to keep prices at 2015 levels. If the supply gap had not been filled prices would have returned quickly to a minimum of $1,500 – $1,600 range where supply and demand converged back in 2012.
Let’s fast forward to late 2016. The price of gold had already dramatically risen since I’d written those articles about the shortfalls. As the prices rose, of course, physical demand fell. However, physical demand has never fallen low enough to completely relieve the pressure on US gold reserves. Higher prices simply reduced the pressure, but did not eliminate it. Had Clinton won the Presidential election, things would have continued the way the manipulators planned. They were slowly allowing prices to normalize toward an equalization of supply & demand, making a few million in profits along the way.
But, as the beginning of November began to unfold, the banksters got shocked by a surprise. The person “annointed” by them, to be the next President, was going to lose the election. They’d used their campaign contributions to control the Presidency for decades! But, in 2016, for the first time perhaps in history, hundreds of millions of dollars have been wasted. In spite of all the money they poured into the Hillary Clinton campaign, Donald J. Trump was going to win.
The public pollsters who work for the likes of the NY Times, CNN, NBC, et. al. weren’t about to let the American public know that, of course. But, the banksters knew better. They have their own private pollsters. Unlike the public polling companies that work for the mainstream media, the results delivered by these private pollsters are not contaminated by political distortion. The bankster’s private polling agencies are entirely impartial and accurate. They have to be. Billions of dollars in depositor cash were riding on it, all at risk inside the derivatives casino the banksters have created.
The key manipulators knew the truth… and it showed… several days before the election. Because they knew the truth, those of us who follow their antics also knew. All you had to do was watch what they were doing to the price of gold, toward the end of the week that preceded election day. Their actions clearly broadcast that Donald J. Trump would win the Presidency on November 8th.
Our new President-elect has often expressed an affinity for the yellow metal and even the gold standard. He is almost certain to reverse the executive orders, signed by Obama, that secretly gave the banksters unfettered access to pissing away America’s treasure. That’s why when they found out he was almost certain to win, they had to change their strategy dramatically. A Trump win meant that their use of US government’s gold was about to end, and they need that gold in order to carry out profitable price manipulations in the futures markets.
Just like they did prior to the British Brexit vote, the banksters acted ahead of time. They began attacking gold prices toward the end of the week before the election. Yet, no one can be 100% sure their pollsters are correct. Not even independent polls without bias can provide 100% certainty. Therefore, the manipulations of the week prior to the election seem relatively small-scale. I believe that they were primarily geared toward assisting individual banksters address private portfolios with an expectation about what they would do with public money afterward. The main part of the upcoming manipulation would be saved until after the election result was certain.
As news of Trump’s win became known to the general public, non-connected traders, who innocently believed that real market factors drive gold prices, believed that prices would rise if Trump became President. They began to pour assets into the gold futures market. That sent gold prices soaring. It was also music to the ears of the manipulators. It allowed them to take a lot of transient short positions at the highest possible prices. Having done that, they proceeded to attack the long buyers by bombarding the COMEX (where world gold prices are set) with a huge tonnage of paper gold futures contracts. Prices began to tumble in response to this wave of transient short selling.
Remember, to create gold futures contracts, you don’t need to possess any real gold. All you need are U.S. dollars to put down as so-called “performance bonds”. The well financed banksters have access to a virtually unlimited amount of dollars simply by tapping the Federal Reserve’s so-called “loan windows”. They stepped down hard, putting the pedal to the metal. They used their cash to back up performance bonds on thousands of tons of theoretical (nonexistent except on paper) gold bullion, targeting pre-existing stop-loss orders placed by the over-leveraged non-connected futures long buying crowd.
As always, they succeeded in triggering involuntary liquidation, which in turn triggered lower prices, triggering more stop loss orders, more involuntary liquidation and eventually triggering margin calls. The over-leveraged non-connected hedge fund managers did what they always do. They began panicking. The connected banksters continued to attack, eliciting more and more pain and panic, and it continued, as it always does, until the computerized algorithms determined that the process was no longer effective.
Then, in the midst of the shell-shocked “market” the banksters again did what they always do. They carefully and quietly coordinated with each other to cover both the transient short positions that induced the panic, and the longer term short positions they had been aiming to get rid of. The process of market manipulation, using futures markets, is not that difficult to understand, but a full description does require more space than this article allows. For a better understanding of how banksters induce artificial long and short “squeezes”, for fun and profit, read the novel “The Synod”.
Donald J. Trump is now President-elect. When he takes office on January 20th, the banksters will lose access to the US gold reserve. Without those thousands of tons of gold to offset ongoing supply shortages, the price of gold will rise dramatically. The banksters now need to escape from as many short positions as they can before that happens. To do it, they must induce involuntary liquidation and panic selling. That is what they have been doing.
Manipulators also want to escape from long positions in the US dollar. The non-connected hedge fund managers, innocent though they may be, were on to something. Under the Trump administration, the price of gold will rise sharply, and the US dollar will eventually fall. It just won’t happen for the reasons they believed or on the timetable that they assumed. The banksters are only slightly less concerned about escaping long positions in the US dollar as short positions in gold. So, they’ve induced the same type of involuntary liquidation and panic covering by short dollar speculators as with long gold speculators. In gold, they engineered a “long squeeze”. In the dollar, it’s a short squeeze… the exact opposite.
Since a rise in the dollar puts some pressure on gold prices, the two squeezes have a great deal of synergy. Each assists the other in accomplishing the ultimate goal, which is to assist the banksters and the connected hedge funds they control to shift their portfolio positioning, maximizing future profits while minimizing losses. It is even easier to panic dollar short position holders than gold long buyers. All you really have to do is hold up the specter of a Federal Reserve interest rate hike. Best of all, you don’t even have to worry about meeting delivery demand even for paper, let alone hard real metal. The dollar is now nothing more than 95% electronic digital notations on a banking ledger.
Like the long gold buyers, dollar short sellers are dramatically over-leveraged and under-capitalized, and cannot hold out against the slightest rise in exchange value of the dollar. Price movement in the US dollar is even easier when you can warn that the incoming Trump administration will induce the repatriation of hundreds of billions of US dollars by American corporations overseas. The incoming President has promised a tax holiday to companies that bring money back to America from overseas. Uninformed hedge fund managers assume that the repatriation of dollars from abroad must result in a rise in the exchange value of the dollar. They would be right if the dollars were now being stored in the form of Euros or Pounds Sterling. But, they are not.
A vast majority of the funds that will be repatriated to the United States are already in the form of dollar deposits. The dollars are inside foreign banks but don’t need to be converted. For example, euro-dollar deposits can be easily transferred from Barclays branches in the U.K. and J.P. Morgan branches in Germany to those in the United States. All it takes is an electronic notation that says the money is now assigned to a branch in America rather than abroad. No currency conversion required. The dollars will even remain available for foreigners to borrow! In short, the net effect, other than the propaganda value in convincing non-connected hedge fund managers that the move is meaningful to markets, is meaningless.
The history of dollar repatriation further supports the fact that dollar repatriation has almost no significant impact on exchange rates. The last amnesty occurred during the Bush administration during the period 2004-05. At that time, multinational corporations transferred about $345 billion to the USA. The 2017 transfer will probably be bigger but it still won’t matter much because a vast majority of the funds are already dollar denominated. In 2004-05, the US dollar’s exchange value went up only very slightly for a very short time. Mostly, like now, it happened before the law became effective. Then, as will happen again, the dollar declined.
Historical facts don’t matter, however, because gamblers are not historians and generally pay no attention to history. They make decisions on the basis of technical analysis and their gut emotions. That’s what the manipulators count on. The process of moving asset prices up and down for fun and profit is all about inducing irrationality, panic and, on occasion, euphoria. It is certainly not about explaining real facts. The over-leveraged non-connected hedge fund managers do not understand the facts. But, you may… so here they are — our new President-elect has promised to bring manufacturing jobs back to a hollowed out US economy. It will be very difficult to do that with a soaring US dollar. Trump’s new Treasury Secretary will not allow the dollar to soar, regardless of what the market gamblers now believe. A lot of non-connected hedge fund managers are about to lose a lot of money for their investors.
Watching the gold market carefully is particularly helpful in providing accurate predictions on both when a manipulation is likely to begin and when it will end. Typically, the gold “market” is subjected to heavy manipulation late in every month prior to major futures contract maturity dates. Since December is always the biggest gold delivery month of the year, it makes perfect sense that a lot of manipulation would take place leading up to it, especially given the election factor described above. Market manipulations will usually continue into the first part of the delivery month itself ending somewhere in the early to middle part.
Let’s use December as our illustration of the process. December futures options expire late in November. Huge sums of money are at stake if options expire “in the money”. Therefore, like at any other casino, the banksters change the odds inside the slot machines. The big derivatives writing banks appear to manipulate underlying futures prices to insure that the price, on expiration, results in a minimum payout. If the balance of the options purchases show that too many people will get paid at a certain price, they won’t allow the price to hit that level on the day of expiration. If minimizing payouts and maximizing profits requires upward manipulation, the price will go up. If it requires downward action, the price will go down. By the time they are finished, almost every time, the manipulators will have insured that their sponsoring banks pay the least amount possible to the gamblers who own the options.
Controlling the gold market, however, as previously noted, is more difficult than controlling a purely paper or electronic notation-based market, like that for a fiat currency. Control is limited by the willingness of the government to guaranty the delivery of physical gold necessary to back up the manipulations. The extent to which President Obama and his Treasury Secretary have allowed or restricted utilization of the U.S. Treasury-owned gold has determined its price for at least five years. That’s how we know that, once access to the reserves is cut off, the price of gold must go up.
Typically, downward (or upward on rare occasions) gold manipulation does not end with the options expiration date. Banks also need to make large deliveries of real gold during big futures maturity months. They want to pay as little as possible for that gold. They are buying a lot of it, indirectly, from the US gold reserve, but that doesn’t matter. Wherever it comes from, they always seem to have an eye on manipulating the prices to wherever they need to be in order to maximize profits. The December gold delivery month is usually the largest of the year, so the incentive to manipulate before and into December is always very strong, even without an incoming new President.
By now, you may be wondering how and when, if ever, the price manipulation will end? When will gold prices do what they are supposed to do? When will they be allowed to rise? The answer is simple and I will repeat it, once more. President Donald J. Trump will take office on January 20th. After that, the banksters will be cut off from the US gold reserve. Gold prices may rise somewhat earlier than that, but they will certainly shoot up starting in January 2017. It is likely that the price appreciation in 2017 will be significant.
Gold prices must rise to at least $1,500 – $1,600 per ounce, because that was the point at which, during 2012, supply approximately equaled demand, without injections from the US gold reserve. We might already be there, but for the US Presidential elections. We will now have to wait a bit longer but the payoff will probably be greater. Because the demand for gold is higher than in 2012, and the supply is lower, however, the two may no longer balance at $1,600. The price may have to shoot considerably further than that. It is a good idea to take advantage of the the current market manipulation to buy gold or related metals at a favorable price.
The dollar is a bit trickier. Its future course is no longer as easy to predict as the price of gold. So long as the Federal Reserve keeps its loan windows open, it will continue to be easily manipulated by banksters, regardless of who holds the White House. Also, it has been and will probably continue to be underpinned (somewhat) by weakness in competing fiat currencies such as the Euro. Nevertheless, the hedge fund managers who are buying it now, in the belief that it will rise dramatically above the current level, are going to lose a lot of money. The incoming President will not allow the dollar to soar, because it would destroy American exports.
Nothing I’ve discussed in this article addresses the thorniest issue of all. The Obama administration, working in conjunction with other western leaders and the major central banks, have created what is probably the biggest financial bubble the world has ever known. Specifically, I am talking about the bond bubble. When it implodes, it will be painful. Even if the new President’s policies are as successful as they can possibly be, it is hard to imagine how he can prevent the implosion of this unstable situation. If the bubble implodes, then all bets are off as to how high gold prices can soar.
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