PRESIDENT TRUMP, “MAKING AMERICA GREAT AGAIN”, THE GOLD STANDARD AND A 230% INCREASE IN PHYSICAL GOLD BAR DELIVERIES – ALL CONNECTED?

February was an extraordinary month…

President Trump was busy issuing executive orders and reversing those issued by his predecessor. Gold prices have been steadily climbing. The secret Obama executive order, which must have opened the US gold reserve to the banksters, does not appear to have been reversed quite yet. When it does happen, it should spark some mild price fireworks, as the manipulators dump remaining short positions. In the meantime, in all likelihood, the manipulators are loading up on as many physical gold bars as they can, at the lowest possible prices. It is, I believe, an indirect courtesy of the US government, thanks to the actions of the previous President.

It would appear that America’s treasure continues to be drained away at a fantastic rate, although as we will discuss later, there is a hesitancy to commit to future orders growing fast in London. In spite of the delay in reversing Obama’s executive order, gold’s price and timing continue to follow the pattern I described in an article in November. Probably, that’s because although it isn’t closed yet, the US Gold Reserve could be closed at any moment.

The price attacks will continue but are temporary and opportunistic. They will be geared more toward the collection of a few quick bucks and/or the collection of some discounted physical gold bars than trying to make a long-term impact on gold prices. Most likely, that’s because the recent updraft in gold prices is driven by physical demand. Physical buyers are thrifty people who stop buying when prices go up too fast. Their resistance doesn’t last forever, but they do need to get used to significant price hikes.

We know that physical buyers were ready to pay much more for gold just a few years ago. Based on the gold market of 2012, the point at which physical supply and demand balances in the longer term, was somewhere within the $1,500 – $1,600 range. Since nominal earnings are universally higher now than they were 4 years ago, it shouldn’t take too long for people to get used to the higher prices. The willingness to pay a much higher price has already been demonstrated. Downward biased manipulation can only be partially effective without government subsidies and support.

The recent price attacks can safely be viewed as the transient events that they are. It appears that the banksters are simply attacking highly leveraged get-rich-quick schemes for the short-term benefit of doing so. Such speculators are fools, who face bankruptcy from small price movements, and must run at the slightest negative price pressure. If they think gold will go down, they quickly take the opposite side from their usual bullish view and try to get rich quick that way. The problem for them is that they are being tricked. The manipulators want to buy physical gold bars at rock-bottom prices and transient price attacks in paper-based futures markets helps them do it.

The manipulators are being careful not to push gold prices below the hard physical buying orders. Manipulators piled on last Thursday, for example, with staggeringly large waves of short selling designed to torpedo prices. Gold and silver tend to follow the similar patterns of manipulative activity, and the exact numbers have actually been already documented in the silver market. Approximately 151 million troy ounces of paper silver were “sold” in a space of 45 minutes from 11:25 am to 12:10 pm, almost four times the amount of silver produced by the top mining company in an entire year! The net effect was a steep price decline and a great deal of cash to fill the pockets of manipulators. We can presume that the same thing happened with gold. Then, on Friday, the very next day, prices went right back up.

In spite of the effort being put in, Thursday’s manipulation event has no legs. By April, the folks who did it will have slowly bought back all the short positions they took on to do it. In contrast with the way they torpedoed prices, they will buy back the shorts in a slow and orderly manner that affects prices as little as possible. They will then likely stand for delivery of gold they purchased at rock-bottom prices from a shell-shocked market filled with hapless non-connected hedge fund managers. The hedge fund managers and their clearing brokers will scramble around searching for physical gold to meet delivery obligations. Overall, the process will help keep prices moving steadily upward over time.

If the manipulators play their game right, even as hard physical buyers raise their bids, the artificial price of gold will be kept just a little bit above the physical bids. The risk they face is only from miscalculation. For example, some unanticipated event could happen that creates a sudden and unexpected willingness, by physical buyers, to raise their bids. Thus, there is always an element of uncertainty.

Recent dramatic events at COMEX futures exchange, however, increase my level of confidence in my current forecast. As I reported last month, we saw a 729% increase in the demand for delivery of physical gold at COMEX during off-month of January 2017, year over year. This month (February) was a major delivery month, and there was another 230% increase in the delivery of physical gold bars. The huge increase in gross demand for actual physical gold bars is impressive. However, it is not the amount that was purchased but, rather, who was doing the buying that is the most important factor.

The biggest banks in the western world continued to be the biggest physical gold bar buyers during February. In many cases, their own customers are being called upon to deliver the bars to them. In total, about 18.66 metric tons worth of physical gold bars were delivered on COMEX in February. That compares to 7.99 tons delivered in February 2016. The net increase totals out to be 233% year over year, which is enormous.

HSBC, in particular, was the biggest single buyer this month. HSBC bought just over 10.62 tons worth of physical gold bars. Neither it nor its customers delivered much gold to speak of. As was the case when it made massive purchases in 2015 and 2016, these gold bars are now an asset of the bank.

J.P. Morgan was also one of the huge buyers this month. It didn’t buy quite as many gold bars as it did, last month, but it purchased about 2.4 additional tons. In contrast, J.P. Morgan’s customers were called upon to deliver about 10.95 tons, perhaps part of which went into the bank’s own asset base. As the customers scrounged around to find gold to deliver to the banks, they probably propelled gold prices upward in February.

As was the case last month, Scotia Bank was also a big net buyer. It bought about 1 ton of physical gold. Last month, it purchased 3.82 tons.

Oddly, CME, Inc. was also a significant buyer. It has consistently been a significant gold bar purchaser throughout 2016. Like Goldman Sachs, HSBC, J.P. Morgan, Scotia and others, it has been stocking up. The exchange operator didn’t buy as many gold bars as a “too-big-to-fail” megabank, but its purchases were enormous, and way out of line from a historical perspective. Remember, the futures exchange operator is not a bank, a hedge fund or an independent investor. It has no obvious reason to buy physical gold bars — except one which we will discuss in a moment.

CME, Inc. bought about 1/3rd of a metric ton in 2016. This past month, it purchased another 62 kilograms. In comparison, it bought only 5 gold bars in all of 2015. The exchange is contractually liable on any default in delivery by clearing members. There hasn’t been any default yet. However, the fact that the company is now buying so many gold bars implies that it is preparing for that to happen. It seems to be planning on weathering a major supply disruption.

If some of the COMEX clearing members end up defaulting on delivery, the exchange is on the hook to supply either gold or the cash value of that gold at the time of default. It is perfectly legal for the exchange to pay customers cash, instead of the gold they contracted for, BUT if the company does that, COMEX will be discredited as a forum for price discovery. Its usefulness for market manipulation purposes will end forever. All of which brings us to the celebrated London-based metals market whistleblower Andrew McGuire…

Mr. McGuire has a history of accuracy in his description of what is going on behind the scenes at the London precious metals market. In a recent public interview, he stated that a huge crisis is in the offing. London gold dealers don’t have enough gold to meet demand. Most of the “gold” controlled by LBMA banks is actually not theirs. It is all “stored” under “non-allocated” storage contracts. These contracts give banks the right to use the gold in any way they want, including selling or leasing it.

Apparently, they’ve been selling and leasing the gold they don’t own for many years. All of it is spoken for, and there isn’t any left. With no stockpiles of their own, and facing the prospect of being cut off from the US Gold Reserve, they seem ready to default on metal delivery obligations. McGuire says that the banks are on the verge of declaring a cash settlement of all gold obligations. Because of the clever lawyers who wrote the contracts, however, this will not equal a legal default.

All the non-allocated storage contracts have a clause that allows for the “substitution” of cash in settlement of gold obligations. If McGuire is right about an oncoming crisis in London, and a cash-based “reset” is about to happen, what CME, Inc. is doing makes perfect sense. Most smaller COMEX dealers refuse to tie up cash on vaulted gold and simply wait until the last minute to buy gold to make deliveries. But, after the de facto default in London, physical gold will be unavailable at any price. These firms will be unable fulfill COMEX delivery obligations.

An educated guess would be that CME, Inc.’s motive, in buying so much physical gold, is to prevent collateral damage to the COMEX exchange’s reputation. Meanwhile, the big banks’ motivation may also revolve around an expected London default. Most of the same players operate in both NYC and London, but COMEX is the more critical market for price manipulators because it is there that world prices are set. The same people who now manipulate gold prices downward will probably turn to upside biased manipulation once the government’s subsidy ends. To profit from price manipulation, they must be able to control prices.

Continuing the credibility of the COMEX futures market, in spite of a massive London default, will enhance its dominance in price discovery. COMEX has always been the key to controlling the price of gold, in spite of the fact that the London gold market is five times larger. The London price and the world price of gold are primarily set by banks and hedge funds fighting with one another at the futures exchange. If the futures exchange allows a large scale default, it will end up as discredited as the LBMA in London.

Here is the bottom line. When the appropriate time comes, LBMA obligations can be cashed out, and the organization can be closed down. But, if COMEX is discredited, the primary profit-making vehicle will be lost forever. In contrast, by preserving COMEX in spite of the collapse of the London market, attention can be quickly shifted toward upwardly biased manipulation activities, and profit can be preserved. Meanwhile, in the shorter run, there is the prospect of selling gold bars to the hedge funds and smaller COMEX clearing members around the time of the London default. Thus, buying gold bars now, for later sale, is going to be an extraordinarily profitable gambit.

In the face of the oncoming massive upward “reset” in the price of gold, I am reminded of a recent article in Forbes magazine. The author urged President Trump to bring back the gold standard in order “to make America great again.” According to the article, there are only three choices open to President Trump.

First, muddle along under the current “dollar standard,” a position supported by resigned foreigners and some nostalgic Americans—among them Bryan Riley and William Wilson at the Heritage Foundation, and James Pethokoukis at the American Enterprise Institute.

Second, turn the International Monetary Fund into a world central bank issuing paper (e.g., special drawing rights) reserves—as proposed in 1943 by Keynes, since the 1960s by Robert A. Mundell, and in 2009 by Zhou Xiaochuan, governor of the People’s Bank of China. Drawbacks: This kind of standard is highly political and the allocation of special drawing rights essentially arbitrary, since the IMF produces no goods.

Third, adopt a modernized international gold standard, as proposed in the 1960s by Rueff and in 1984 by his protégé Lewis E. Lehrman …and then-Rep. Jack Kemp.

Of course, to bring back the gold standard, the price of gold versus the US dollar must be reset much higher. If Mr. McGuire is right, however, the implosion of the London gold market will do just that. It will also bring the role of gold as money back into the world’s consciousness. A massive one-off price reset will happen, dramatically devaluing cash currencies including the US dollar. Going back to the gold standard might end up being enough to offset the enormous debts built up under decades of incompetent economic management.

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COMEX PHYSICAL GOLD DELIVERIES RISE 729% YEAR OVER YEAR!

Written by:  Avery B. Goodman  (01/29/2017)

The price of gold has been generally following the predictions I made on December 9, 2016.  So far, so good…

A lot of non-connected hedge funds and other speculators are now heavily short gold. That includes many people who are writing negative comments about the metal, and paying others to write negatively.  They have been drawn in by entities who know better, and who are heavily connected to the US Treasury, Federal Reserve, Bank of England, ECB, etc. The latter have likely closed most of their unhedged short positions even as the speculators have increased theirs.

The well-connected have known the gold jig is up for a very long time. They have engaged in what appears to be an attempt at a very organized and deliberate position change. A number of big banks, such as J.P. Morgan, HSBC, Goldman Sachs and others, for example, made huge purchases of gold bullion banker’s bars. They still have big problems from their past activities, but not so much on futures and forwards markets. The remaining problem comes in the form of a huge uncovered “short” position via massive tonnages of  gold inside London-based “unallocated storage” schemes.  It is possible that the unveiling of the new so-called COMEX “spot” silver and gold contract, as well as the huge physical gold purchases by big banks has been designed to shift this remaining risk.

The temporary downturn in gold prices, last week, is meaningless. It seems quite clearly to have been orchestrated by a few big options sellers. These smarmy folks always use automated trading software, around options expiration week, to trigger stop-loss orders and margin calls. It is done to temporarily push down paper gold prices, for the purpose of avoiding payouts on call options. Generally speaking, gold speculators buy many more gold calls than puts, so paying out on a rise in gold prices usually costs a great deal more than paying out after a fall in gold prices. The incentive to manipulate prices to prevent options from ending “in the money” is huge.

COMEX February options expiration day was the 26th of January, and it was the day of reckoning when buyer and seller determined how much, if anything, was owed on the matured options contracts. It is also my understanding that many of the privately negotiated “calls” at the various London’s LBMA member banks expired on the 27th. If the options dealers had not launched a coordinated attack on gold prices last week, a huge number of their “call” options would have expired heavily “in the money”. That would have meant billions paid out. Naturally, since casinos always make sure that the house never loses, the payouts won’t happen, thanks to the manipulations.

The most important thing to realize is that price manipulations, around options expiration, are always pure paper plays, and have no legs. However, they won’t end simply because access to the US gold reserve is cut off.  Such activities will continue until gold options are made illegal, or the people responsible are criminally prosecuted. A change in Presidential administrations may bring a lot of macro-level reform, including replacement of the people at the very top of the totem pole. However, regulatory staff members remain the same, as do the attorneys who work for the Department of Justice. So long as men and women continue to enter and exit federal agencies through a revolving employment and “consulting” door, into banks and brokerage houses, no serious prosecution is ever going to happen.

Far more important than the temporary manipulation of options dealers, however, is the physical market for real gold. January is an off-month for deliveries at COMEX. However, the number of gold futures contracts that stood for delivery this month resembles an active delivery month. That is interesting because COMEX has always been primarily a paper based exchange. Physical delivery is the exception rather than the rule. Delivery has always been theoretically possible, but it has been rarely done. In January 2016, for example, the holders of only 172 COMEX futures contracts demanded physical gold. In comparison, by January 27, 2017, the holders of 1,254 COMEX futures contracts held them to maturity and demanded their gold! That is a whopping 729% increase yoy!

We’ll see what happens in February. There are already an unusually large number of February contracts remaining open on Friday, a day before the first notice day. Monday is the first notice day for the February delivery month, which has always been a major one. This month is shaping up to be mildly historic in size. The overall delivery size looks like it will be at least as big as December, 2016, even though December is normally the largest delivery month by far. One thing is clear. As of Monday morning, holders of matured futures contracts are going to have to put up or shut up. They must either deposit sufficient cash to pay for the gold in full, or face involuntary liquidation.

No matter how massive the physical delivery demand may be, there is always the possibility that dealers will try to attack prices early in the month. They often do this. I believe that the reason revolves around the desire to buy physical gold bullion, from mining companies and others, at a rock-bottom price. They will do everything they can to create a fake price so long as it doesn’t cost them too much. The trouble for them is that, this month, it may cost them more to do it than they save from the results.

There always seem to be a number of “stragglers” among the contracts that are open on the first day of delivery. These speculators cannot afford to pay for their gold, but seem to foolishly hold onto their contracts anyway. They end up involuntarily liquidated and that process will always facilitate downward price manipulation. Because of the prospective size of February’s physical delivery (which is probably mirrored at the LBMA in London), however, gold prices should be resilient to this type of manipulative activity.

I think the rise in gold prices will begin, in earnest, somewhat earlier than usual this month. It should occur, at the latest, by the middle of the month, or even a lot earlier, as opposed to the typical late-in-the-month price rise that often occurs during big delivery months. The massive and very unusual physical demand in January is likely to have exhausted many of most easily accessed supplies, which will make it particiularly difficult for banksters to maintain such shenanigans.

Looking further out, as I have said before, other precious metals prices in 2017 will also be driven upward, by being cross traded with gold, as a result of the closure of the US gold reserve. A vast majority of the people surrounding President Donald Trump are not inclined to allow continued drainage of America’s golden treasure. Incoming Treasury Secretary Mnuchin has given lip service to the “strong” dollar policy, but both he and President Trump have stated that the US dollar is now overvalued. The impact of lower exports and higher imports on GDP has already showed up in dismal GDP performance numbers.

Political cooperation with bankster driven gold price manipulation has always been primarily driven by a desire to stabilize and/or prop up the exchange value of the US dollar. Since America’s leaders now want the dollar down, not up, giving access to the US gold reserve makes no sense. It will be cut off as soon as Obama’s gold-related executive orders come to Mr. Trump’s attention. That should happen a few days after the new Treasury Secretary is confirmed.  I have no doubt that the dealers are acutely aware of the fact that Obama’s not-so-secret orders, opening up the gold reserve to gold location swaps and other access, are now history. Downward price manipulation, at the current low pricing point, will become difficult or impossible. In the absence of the US Gold Reserve, prices must rise substantially before highly profitable manipulative activity can begin again.

The reversal of Obama’s executive orders are likely to be as much of a secret as the executive orders themselves were. I don’t expect any formal announcement as such. When it does finally happen, however, there should be a sudden price surge. That doesn’t mean gold is suddenly going to rise to $5,000+ per ounce. That will eventually happen. However, normal markets do not rise like rocketships. Prices may rise by $75 to $100 over a week or two. That is healthier than a massive $300 overnight skyrocket. Massive quick increases in any asset price, in the absence of some unusual major outside event, is the result of upside oriented market manipulation.

We will eventually see a lot of upside manipulation in gold prices (followed by repeated short price collapses) as manipulators turn their attention to profiting, in a different manner, from price volatility. The key point is that when gold prices finally move above the equilibrium point between supply and demand, they can be pushed upward, and then allowed to fall, without any need for physical gold. Until that change in orientation, however, we will see prices driven upward solely by the continuing excess of physical buyers over sellers.

Note that physical precious metals buyers, unlike futures market speculators, are thrifty people who don’t like overpaying. This won’t stop the early stages of a fast price rise, but it will begin to put downward price pressure, in the short run, if prices go too far too fast. Physical buyers stop buying when prices rise very fast. They will resist purchasing until they get used to new prices. The process requires time. That’s why gold price destabilization, rather than price suppression, is the primary goal of gold market manipulators. I expect the price of gold to rise slowly but steadily back to its prior supply/demand equilibrium point (somewhere between $1,500 and $1,600 or a bit higher).

If major upside manipulation events begin or a major outside event occurs, like a major default on corporate and government bonds, widespread insolvency of pension plans and/or the demise of the Euro currency, the sky will be the limit. Evidence of fiat currency instability will be so high, once the Eurozone collapses, that a much higher floor will be put underneath precious metal pricing.

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STRONG GOLD STANDARD ADVOCATE STILL CONSIDERED FOR TOP CABINET POSITION

NEWS FLASH!!

Written by: Avery B. Goodman

On November 29, 2016, I wrote that John Allison, retired CEO of BB&T Bank and the libertarian think tank, CATO Institute, was being considered for appointment as the new U.S. Treasury Secretary. That was music to the ears of many people including me. The man is a real banker, as opposed to a bankster, and his bank concentrated on real lending, the way a bank ought to, rather than opportunistic gambling and manipulation. He spent his life running an institution that supported American business. That, of course, supported good jobs that sustain communities.

In fact, BB&T Bank was one of the handful of major American financial institutions that remained very well capitalized during the 2008 financial crisis. It didn’t need any help from the U.S. government, although it was forced to take the “help” anyway. Allison opposed “TARP” and was sharply critical of the bailouts. His bank was pressured into accepting the money because it was thought that if banks like BB&T didn’t, the truth about the insolvency of a majority of American banks would be forced out of the closet.

Mr. Allison believes, as do I and most clear thinking people, that the world would be better off returning to a strict gold standard. He also believes that the Federal Reserve makes the swings in the business cycle more severe, and that the central bank ought to be closed down. It was very disappointing when I found out that former hedge fund manager, Steve Mnuchin, was awarded the US Treasury Secretary position, instead.

It seemed like Allison was going back to Winston-Salem, NC, empty handed. That was a sad shame considering how well-qualified he is. More recently, however, I learned that it isn’t over, and I wanted to share that with you. Mnuchin may be getting the coveted Treasury Secretary position, but Allison is still being seriously considered for “other administration positions”. In an interview in his hometown newspaper, for example, he disclosed that the 90-minute discussion with President Trump was only partly about the possibility of becoming U.S. Treasury Secretary.

Allison was actually being vetted for a number of other top positions. At the moment, he refuses to say which ones. But, he did mention that the idea that he join the Trump administration came from Vice President-elect Mike Pence. Mr. Pence had read his book about the 2008 financial crisis, and asked him to testify about it while he was still a Congressman. According to Allison:

“He thought my book was one of the best explanation of the crisis. As such, he was kind enough to inform the president-elect of my qualifications to serve in his administration. It was flattering to have been asked to meet with (Trump), and if I had been asked to serve in an administrative position, it would have required some significant thought and consideration.”

Oddly, although he says he wants to close it down, Allison is particularly interested in serving as Chairman of the Federal Reserve when Janet Yellen’s position expires. He says that he is willing to do that even though his real goal is to end the Fed. That’s because, in his opinion (and he is probably right) it is going to be politically impossible to close it down abruptly. His compromise is to, at least, end the central bank’s interest rate discretion. He wants to force the Fed to strictly comply with the “Taylor Rule”, which is a formula that determines what the interest rate should be, based on other economic factors.

Clearly, adherence to the Taylor Rule would rein in the Fed, because the basis for determination of the prevailing interest rate would be openly disclosed.  Since everyone would have equal knowledge and automatically know what the interest rate would be, members of the FOMC could no longer tip off their friends and colleagues at the banks they once worked at. It would eliminate the insider’s advantage, and destroy the incentive to place Trojan horses on the Fed’s interest rate setting committee to the benefit of certain trading firms.

As to going back to gold, the best alternative is not necessarily to “end the Fed”. Rather, it is better to simply return gold to “legal tender” status. The Federal Reserve should be allowed to continue printing its notes. Paper and electronic dollars would continue to be used, alongside gold, to the extent that people wanted to use them. Both dollars and gold would be legal tender for payment of all debts, public and private. In order to stabilize the value of gold (and of the dollar), leveraged trading would become illegal.

By monetizing gold, we would have the best of both worlds. There would be an automatic one-off increase in the money supply without resorting to confidence-destroying measures like money-printing. The increase probably wouldn’t be used for speculation in the stock market. That’s because the primary dealers would not be able to  borrow it at the Federal Reserve’s daily loan windows. As “better money”, most of it would disappear from circulation, based on Gresham’s Law. That, however, is a very good thing. As people’s savings, rather than a medium of exchange, gold could serve as the buffer that stabilizes against the big booms and busts induced by the fiat dollar economy.

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–  Josh Pullman –

The Synod is a conspiracy of 8 large international banks who seek to control gold, stock, bond and commodity markets all over the world. Jack Severs runs for his life when he learns too much, as the most sophisticated surveillance system ever built is deployed to track him down. As the ever-tightening noose closes, he struggles to uncover evidence to save himself and his world from collapsing! An exciting, fictional, fun and educational thriller about the banking cartel. Learn about the methods used to manage the price of gold and every other market on the planet, and how this affects business, politics and daily life in both the fictional and real worlds.

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WILL INDIA REALLY HAVE MUCH IMPACT ON GOLD PRICES IN 2017?

Written by: Avery B. Goodman

There seems to be some new, seemingly crazy, action by the PM Modi administration in India every day. Last month, for example, they capriciously demonetized the primary forms of cash used commercial transactions in India. It was a stupid thing to do. At the least, it was carried out in a very incompetent manner. It led to chaos, as banks and citizens ran out of cash. Some truckers were even unable to find sufficient cash to pay for fuel and had to abandon deliveries. It was a bit crazy… and economists now expect the demonetization of 86% of India’s money supply to cost several GDP percentage points. Not the smartest way to a run a country. Certainly not a wise method of developing one.

Once someone gets a bad reputation, like that, it is easy for people to believe the worst about him. Whether he deserves it or not, Indian PM Modi has gained the reputation of a madman, or a fool in some western business circles. Naturally, therefore, that has made it easier to plant stories in the business news media hyping up some additional alleged madness. The Indian Finance Ministry, in a show of determination, stated on December 1st that new rules would require that gold be purchased out of income disclosed on prior tax returns, or using exempt income that isn’t taxable (like agricultural income), or using reasonable household savings, or must be “legally inherited from explained sources.”

Contrary to the hype, the supposedly “new” rules actually change nothing. No doubt, the Indian government will become more aggressive in enforcing the law. However, the “new” rules are merely a restatement of old rules that already existed. It has never been legal to defraud the Indian government of taxes. It has never been legal to buy assets, be it gold or anything else, with the proceeds of tax fraud. The newly announced rules are essentially a “press release”, a public relations notice, designed to appeal to less wealthy Indians, who have long been irritated by the ostentatious displays of wealthier neighbors.

In truth, the Indian government has added protection that didn’t exist before. For example, each married woman is protected from being required to show how she managed to get up to 1/2 kilo of gold, worth about $18,000. That’s a huge amount of money in India. Each unmarried woman has the right to not be questioned about up to 1/4 kilo or $9,000 worth of gold, also a huge amount for the country. Each man has the right to keep up to 1/10th kilo or about $3,600 worth. No questions will be asked about such amounts, even if the stuff really was bought with black money. On top of that, an unlimited amount of inherited gold can be kept, free and clear, and tax policemen now have the discretion to “look the other way” at even higher amounts.

Obviously, the Modi government cannot hope to win reelection if it terrorizes the whole Indian population. Even if it wanted to do that, India’s constitutional protection against illegal search and seizure, while not as strong as in the USA, is still substantial. The government does not have an unfettered right to invade people’s homes, businesses and safe deposit boxes simply because it wants to. It faces the same problem as tax authorities in the USA and elsewhere. It must justify such a search and obtain a warrant in all but the most unusual situations.

Indian law can be summarized as follows:

“Legislative intrusion [into the right of privacy in India – AG] must be tested on the touchstone of reasonableness as guaranteed by the Constitution and for that purpose the Court can go into proportionality of the intrusion vis-à-vis the purpose sought to be achieved. (2) So far as administrative or executive action is concerned it has to be reasonable having regard to the facts and circumstances of the case. (3) As to judicial warrants, the Court must have sufficient reason to believe that the search or seizure is warranted and it must keep in mind the extent of search or seizure necessary for protection of the particular State interest. In addition, as stated earlier, common law did recognise rare exceptions for conduct of warrantless searches could be conducted but these had to be in good faith, intended to preserve evidence or intended to prevent sudden anger to person or property.”

Under Indian law, like that of the United States, people are deemed innocent until proven guilty.  The state must prove that black money was used to buy gold before it can be permanently seized. Don’t get me wrong. I have little doubt that Indian tax police will target and be unfair toward certain people, especially ostentacious rich ones who support the opposition. It will also target businesses that are washing demonetized notes, especially those exchanging them for gold. But although the flamboyantly rich, and black market traders, buy what seems like ridiculously large quantities of gold, the vast majority of gold demand comes from tens of millions of average middle class people. The government won’t be bothering them. It also won’t be bothering rural farmers who purchase about a third of the gold imported into India each year. I might add that the income of the farmers is agricultural income and exempt from tax.

Indian tax authorities have always sought warrants to search and seize gold from targeted people. It has been doing that for decades. For example, all the way back in 1996, under the now-opposition Congress Party, it seized 28 kg. worth of gold, allegedly purchased with black money acquired through bribery. The gold bars were in possession of the ostentatious widow of the late Tamil Nadu chief minister J Jayalalithaa at the time of seizure. The case is still pending in the very slow Indian court system.

The idea that the Indian government will terrorize a lot of middle class Indian families, looking for illicit gold, is ridiculous. The announcement is being intentionally used for its shock value and has been deliberately misconstrued. Remember, misinformation is one of the most powerful tools used during major market manipulation events. Misinformation can and is used to panic people, especially over-leveraged gamblers. If they swallow the nonsense, and it appears gamblers in NYC and London are swallowing it right now, the open interest in gold derivatives can be reduced at a minimal cost. That lowers the exposure of casino banksters to higher gold prices.

Once you look at the what is really going on, you see a very different picture from the one that is hyped by naive western speculators who spread the stories, and the manipulators who invent them. In truth, India recently scrapped disruptive requirements that required 20% of all imported gold to be re-exported. According to a highly placed Reuters’ source, they will scrap other gold import limitations next week. It will soon be considerably easier to import gold into India. If not for the demonetization that reduced the money to buy with, demand would immediately rise. As it is, demand will still rise, though it may fall marginally in the short term. Let’s face it, after the recent actions of the Indian government, few law abiding (or non-law-abiding) people are going to be saving rupees.

It is important to take the trouble to carefully calculate the true Chinese gold demand, because once you do that, everything becomes crystal clear. You need to correct for the intentional or unintentional, but nevertheless massive, multiple under-count errors made by GFMS. Once you do the numbers, you’ll find that the end result is a huge gap between worldwide gold demand and supply. It is so large, in fact, that not even the complete elimination of the 800 tons of gold that India might normally be expected to buy this year, would fill it.

In other words, even if India somehow didn’t buy one more ounce of the yellow metal, there would still be an unfilled gap of nearly 1,000 tons at prices below $1,200 per troy ounce. Notably, this demand calculation does not include the possibility of increased demand for gold in Turkey. Its citizens have just been instructed by their President Erdogan to “buy gold and lira”, not foreign currencies. The numbers also exclude next year’s probable increase in Islamic gold demand now that the “Shariah gold standard” has finally been set. No consideration is also given to the probability that instability in Europe, especially due to the upcoming election in France, could massively increase demand in that nation.

Gold prices will begin to climb sharply once the current manipulation event runs its course. An objective look at the real numbers makes it clear that some entity has filled a huge and growing supply gap for at least 4 years running. That not-so-mysterious entity, in all probability, is the US Treasury, which is accomplishing it mostly through arrangements with the Bank of England. There is little question that very large swap liens, taken against gold reserves held at Fort Knox, have been deployed to fill the gap.

Things are changing. First of all, even if the willingness to piss away America’s gold were still there, at the current burn rate, the entire gold reserve will be gone within a maximum of 2-3 years. However, the new Trump government includes several highly placed gold standard supporters, most notably the man who is shaping up to be the single most powerful influence on President-elect Donald J. Trump, Vice President-elect Mike Pence. The speed by which casino bankers lose unfettered access to America’s gold will be based primarily on how fast Trump can reverse the Obama era executive orders.

The quasi-secret order, allowing access to America’s gold reserves, was probably signed on April 11, 2013. As soon as they get to it, it will be reversed. The Obama era, during which our golden treasure was foolishly pissed away in profit-making schemes, concocted by NYC and London banksters, is now over. That is the fact that will dominate pricing in 2017 and beyond, not whether India changes its gold imports by a few 100 tons of gold, more or less. It is impossible to know the exact bottom in a market manipulation. However, now or soon is the time to buy, not sell. For a more detailed explanation of what is happening with respect to the Trump administration and our gold reserves, click here.

Buy Synod“It moves fast, kind of like Robert Ludlum’s “Jason Bourne” trilogy…”

–  Josh Pullman –

The Synod is a conspiracy of 8 large international banks who seek to control gold, stock, bond and commodity markets all over the world. Jack Severs runs for his life when he learns too much, as the most sophisticated surveillance system ever built is deployed to track him down. As the ever-tightening noose closes, he struggles to uncover evidence to save himself and his world from collapsing! An exciting, fictional, fun and educational thriller about the banking cartel. Learn about the methods used to manage the price of gold and every other market on the planet, and how this affects business, politics and daily life in both the fictional and real worlds.

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THE MOST INFLUENTIAL PEOPLE IN THE TRUMP ADMINISTRATION TURN OUT TO BE GOLD STANDARD FANS

Vice President-elect Michael Pence is currently the most powerful single political influence on President-elect Trump. Among other things, he is in charge of the transition team. He will also be in charge, after the inauguration, with dealing with Congress. For leftists, hostile to gold, that is a problem. However, for those of us who believe that the only way to solve our long-term economic problems is by a return to honest money, it is a godsend.

The editor of the New York Sun realized this quite a while ago. He wrote, back in July, about the wise choice of then-Governor Mike Pence as a running mate:

“Donald Trump’s choice of Mike Pence for vice president would — if it is confirmed tomorrow — be a promising pick for those of us who see a restoration of sound money as the essential precondition for returning America’s economy to a trajectory of jobs and growth…

Why did the paper write this? Left-wing economists and politicians have a long standing case of aurophobia. They hate gold because it inhibits both corporatist and government control over the economy. Don’t bother telling them that the dishonest system of “debt money” enslaves the very people they claim to protect. Don’t bother pointing out that debt based money favors the accumulation of capital by a narrow portion of society who receive the money first. I am, of course, talking about the bankers on Wall Street. Don’t bother warning them that the constant inflation, inherent in debt money, will eventually destroy the hopes, dreams and savings of the middle class. They don’t want to listen.

In contrast, Vice President Elect Mike Pence views gold from the standpoint of a person who does not want the large corporations and government to have complete and detailed control over the economy. His view, therefore, is diametrically opposite. He believes that gold is important to the system because it provides a base against which other things can be measured. In a speech at the Detroit Economic Club in November 2010, he said, and I quote:

“…My dear friend, the late Jack Kemp, probably would have urged me to adopt the gold standard, right here and now in Detroit. Robert Zoellick, the president of the World Bank, encouraged that we rethink the international currency system including the role of gold, and I agree. I think the time has come to have a debate over gold, and the proper role it should play in our nations monetary affairs. A pro-growth agenda begins with sound monetary policy…”

President-Elect Trump, himself, can be said to be a bit of a gold bug. He bought the yellow metal in the 1970s at about $185 per ounce, and sold it at $780. After that experience, the taste for gold never left him. During the campaign, he stated:

“Bringing back the gold standard would be very hard to do, but boy would it be wonderful, because we’d have a standard on which to base our money.”

In contrast, starting with a not-so-secret executive order, signed on April 11, 2013, President Obama seems to have authorized a raid on American gold reserves to bolster his administration’s claims of economic success. The banksters’ scheme was designed to control the chirping “canary in the coal mine” (rising gold prices) because it was singing too loudly of failed economic policies. It was also designed to put a lot of private profits into banker’s pockets. Thankfully, things are going to be different.

The new administration is looking very gold-friendly. Neither Pence nor Trump have outright stated that they intend to restore the gold standard, although Pence did hint at it. Does that mean it’s going to happen? Probably not. The stupidity of the Obama  administration, in giving license to the banksters to drain away America’s gold reserves, has made it nearly impossible. The only way would be to institute an secret program to buy back the gold. Issuing new dollars in exchange for gold would increase the money supply, a form of economic stimulus, so it might fit into the new President’s plans.

It’s not only the President and Vice President who like the gold standard. Dr. Judy Shelton was one of the two economists named to Donald Trump’s economic advisory team in August. She is now a member of the President-Elect’s transition team, and is a very strong gold standard supporter. Shelton first rose to prominence among economists when she predicted the economic collapse of the Soviet Union in 1989, two years before it happened. She says that many of the same issues are now appearing in the American banking system.  Her answer: reestablish the gold standard!

In an article in Fortune magazine, Dr. Shelton stated, and I quote:

In terms of gold being involved, some people may think of that as a throwback, but I see it as a sophisticated, forward-looking approach because gold is neutral and it’s universal.

The pre-election statements of President and Vice President, as well as the opinions of their most loyal advisors, answer the question many worry about. Some worry that “too many” people associated with Goldman Sachs are being appointed to positions in the Trump administration. Perhaps. However, that does not mean that banksters will be given free reign to continue doing what banksters have done in the past. In this case, banksters will not be allowed to continue pissing away America’s precious gold reserves. Top Trump administration people will surely see the schemes for what they are — personal enrichment programs for the banksters that support them.

The “Gold Reserve Act”, passed by Congress in 1934, requires the consent of the President before the Secretary of the Treasury can authorize tapping into America’s gold reserve. That’s what the meeting with President Obama and the CEOs of the biggest gold dealing banks, on April 11, 2013, was all about. It took place one day before the biggest attack on gold prices ever undertaken. The fact that the meeting took place at all, however, indicates that even left-wing Barack Obama was questioning the wisdom of raiding America’s gold.

Donald Trump appreciated the money that Steven Mnuchin, his only well-connected Wall Street fund raiser, brought in during the Presidential campaign. It is natural to reward someone after something like that, and that is why Mnuchin is now going to be US Treasury Secretary. But, even if he wanted to, which is not at all clear, it is very unlikely that Mnuchin would be able to convince President Trump to leave Obama’s gold reserve blasting executive order intact. Remember, Mr. Trump took issue with the idea of spending $4 billion worth of easily printable paper dollars on several new “Air Force One” 747s. Do you think he’s going to be convinced by anyone to piss away gold reserves, which are very difficult to replace?

The decline in gold prices, during November and December has been designed to allow manipulators with large, long-standing short gold positions, to shell-shock markets, facilitating an orderly escape with minimal damage. The hyping of India’s tax law changes was part of that, and is part of the strategy used to demoralize long speculators. The truth, however, is that even if India stopped importing gold, entirely, given the current excess of demand over supply, demand would still far exceed mining and scrap refining supplies. With that gap unfilled, the price must rise substantially. For more information about the true supply/demand situation for gold, see this article.

Going forward, the unplugged gap between supply and demand will be closed by the real market, not from further donations from the American treasury. Prices will rise once the banksters see the prospective cutoff from access to America’s gold reserves come too close for comfort. At that point, which will probably come in late December to early January, they will spin off whatever small short position they still have left, at any price they must pay to do it, and the upward movement will begin in earnest.

Buy Synod

“It moves fast, kind of like Robert Ludlum’s “Jason Bourne” trilogy…”

–  Josh Pullman –

The Synod is a conspiracy of 8 large international banks who seek to control gold, stock, bond and commodity markets all over the world. Jack Severs runs for his life when he learns too much, as the most sophisticated surveillance system ever built is deployed to track him down. As the ever-tightening noose closes, he struggles to uncover evidence to save himself and his world from collapsing! An exciting, fictional, fun and educational thriller about the banking cartel. Learn about the methods used to manage the price of gold and every other market on the planet, and how this affects business, politics and daily life in both the fictional and real worlds.

A perfect gift for the holidays!

WHAT HAPPENED TO GOLD & THE U.S. DOLLAR AFTER ITALY’S “NO” VOTE?

Map-Europe emphasis Italy

Written by Avery B. Goodman

If natural market forces were permitted to run free, naive folks would win the game. Insiders would lose a fortune, and independent gambling speculators would make a killing at the expense of well-connected casino operators (a/k/a derivative-issuing bankers). What possesses otherwise intelligent people to believe that this would ever be allowed? Was anyone naive enough to expect anything other than a major intervention by central planners to support the Euro?

There are always ridiculous excuses given. From technical analysis, to astrology to Elliott waves, it is all nonsense. What we saw was pure market manipulation and nothing but that. When you see the Euro rise when it should fall, you can bet that two institutions are involved. I am talking about the European Central Bank (ECB) and the Bank of International Settlements (BIS). I didn’t mention the U.S. Treasury or the Federal Reserve. No doubt, they had some peripheral involvement as they always do, but mostly, they were probably observers.

European institutions have the kind of open, obvious and blatant disregard for honest markets that no equally corrupt American institution could ever get away with. In fact, the BIS has gone as far as touting its gold and currency manipulation prowess! For example, back in 2008, it issued a brochure for consumption by central bank policy-makers, and on page 17, it advertised that “our products” include “Gold & Forex Services — Interventions”!  In other words, they blatantly offered to rig gold and currencies upon request! This document came to light only by virtue of the hardworking and ever-watchful sleuths at GATA.

That was a long time ago. Let’s fast forward to now. The Euro’s exchange value has moved upward in direct opposition to the real market forces that should be weighing it down. The “no” vote in Italy has serious ramifications on the continued existence of the Euro currency, and its exchange value should have dropped like a stone. Instead, it went up. In contrast, the exchange value of the US dollar and gold, to the amazement of some (but not my readers) went down.

The reason is simple, and it has nothing to do with a sudden increase in confidence or desire to hold Euros. Just the opposite. However, a group of bureaucrats want the public to think otherwise. They want to bury the Euro on a schedule they create, not on the one that is determined by market forces. In order to do that, they hired some banksters, probably through BIS, paid them a lot of money, and watched as market “magic” was done. The exchange value of important non-Euro currencies, like the dollar and gold, suddenly came under attack. The now-zombie Euro, in contrast, rose against all odds.

This situation is a little more complicated than the usual manipulation. The same bankers are (were) engaged in inducing a dollar short squeeze not too long ago. The upward dollar manipulation has probably not quite run its course. It doesn’t matter. The juicy profits stemming from a day to a few days of government subsidies combined with an opportunity to front-run a sure-thing more than makes up for any delay. There is nothing like big covert private profits to go along with a fat payment for services rendered.

None of it should worry gold investors in the medium to longer term. Brussels does not wield the kind of market power that Washington D.C. does. It is a host of different nations, often jealous of one another. Each has its own, often conflicting economic view, and each has separate control over separate gold reserves. The European globalists don’t need to be as powerful or ambitious as their American counterparts. They don’t need to control the gold or dollar currency markets for very long.

Brussels’ bureaucrats simply want to keep their zombie currency going even in death, just a little longer. If they can just keep things moving long enough, the transition into what is coming will be smoother, and can occur at a time when well-connected players are ready for it. The banksters are those well-connected players, and a day or two respite from their dollar short squeeze activities doesn’t harm them. In fact, it gives short position holders a respite to make the mistakes that will soften them up for more attacks.

In a month or two, the dollar really will fall against the Euro. You may think that’s an amazing statement, given that I just called the Euro a zombie currency. But, none of it really matters until the very end. A zombie can still attack a living human and eat his brain. It doesn’t matter that the zombie is dead. These interventions are significant because they will convince folks that the Euro isn’t going away (even though it is). The Euro will disappear from the world in 2 – 4 years, but that doesn’t mean it can’t rise against the dollar beforehand. We’ll discuss that another day. For now, let’s just say there will be a lot of rising and falling before the zombie is buried.

What matters most now is market rigging. I don’t have space to describe how it’s done. If you are interested, read “The Synod” and find out.  Recommend it to friends and family. Lend your copy to others. Express your enthusiasm by leaving a review on the book’s Amazon.com and other book retailer sales pages, as well as by writing on blogs, Facebook, Twitter, etc. Word of mouth and the power of the pen all help to popularize ideas. A lot more people read fast-moving thrillers than intense financial articles like this one. Yet, everyone will be critical when it comes time to broaden the discussion of honest money and markets.

In any event, the recent “no” vote in Italy should have pounded the last nail into the Euro coffin. That hasn’t happened.  The ECB will now distribute sufficient new cash to keep most Italian banks from failing. However, it doesn’t have the resources to mount attacks on the yellow metal for long periods of time. Unlike in the USA, the constituent central banks of Europe are separate. Many are acutely aware that gold reserves will be critical to insure public confidence. European governments will not willingly sell their reserves. Financial Eurocrats, thinking about supporting the Euro by pissing away national gold reserves, should remember that Europe is the birthplace of the guillotine.

At any rate, the market manipulation of the euro’s exchange rate has been a success. The intervention was designed to prevent a sudden and complete collapse. It was not designed to make a long term impact on the propensity of investors to choose gold or even the U.S. dollar. The main factor in gold pricing, going forward, is going to be the closure of the US gold reserve as I discussed in my prior article. Gold prices should begin to rise by late December, 2016 or before, as the cutoff of US government gold draws near.

Going forward, remember that it is easier to manipulate the paper gold market upward than downward. That is because of the physical delivery that comes into play when you manipulate it below the equilibrium between supply and demand. Therefore, watch carefully as government-subsidized downward manipulation is replaced with privately financed upward manipulation. For example, if bullion banks know that supply/demand meets at $1,600 (a guesstimate), they may push prices to a $1,700 floor (where no deficit will exist) and then on to $2,100. Then, they can take short positions, letting prices plummet back to $1,700. Rinse and repeat, over and over, upping the floor and the top, depending on what their algorithms suggest, as the willingness to buy at higher prices deepens with time.

What should a person who is concerned about saving for the future of himself and his family do? We live in an uncertain world, and unless you are tightly connected to the powers that make big financial decisions, you should not engage in leveraged speculation in anything. Yet, amid the confusion, one certainty stands out. In the very long run, fiat currencies always devalue. Thus, a certain percentage of your savings should be in gold, silver and platinum, rather than in Euros or dollars. These assets should be bought after big price declines, not big price increases. Now is a good time to pick them up on the cheap.

________________________________________________________________

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The Synod is a conspiracy of 8 large international banks who seek to control gold, stock, bond and commodity markets all over the world. Jack Severs runs for his life when he learns too much, as the most sophisticated surveillance system ever built is deployed to track him down. As the ever-tightening noose closes, he struggles to uncover evidence to save himself and his world from collapsing! An exciting, fictional, fun and educational thriller about the banking cartel. Learn about the methods used to manage the price of gold and every other market on the planet, and how this affects business, politics and daily life in both the fictional and real worlds.

A perfect gift for the holidays!

The Price Movement In Gold Told Us Trump Would Win A Week Ahead Of Time – Now It Reveals The Future Again!

federal-reserve-gold-vault-with-bar-pallets-showing

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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