Sunday, August 05, 2012


Inflation adjusted gold price 1720 - 2012. Website for this image

According to Thomas Pascoe, in his Daily Telegraph blog on 11 July 2012, the price of gold has been manipulated.

1. With the dollar looking weak, the gold price should be rising high.

The fact that the gold price has not been shooting up, suggests manipulation.

2. If there is an expansion in the economy, it is OK for a government to print more money.

But, governments have been printing lots of money to finance wars, to bale out corrupt banks, and to make welfare payments to a huge number of people who have become unemployed.

3. However, gold could peak in 2013 after its 12-year bull run: Reuters

The annual rise in the price of gold over the past 60 years has been 6.6 per cent.

The annual rise in the price of stocks and shares (equities) over the past 6o years has been 6.7 per cent.

Remember the 1997 Asian crisis?

Malaysia introduced capital controls.

Singapore organised huge market interventions.

Korea had a 'virtual shutdown of international banking'.

In all three countries, GDP was higher three years later than it had been before the crash.

4. Ned Naylor-Leyland, investment director at Cheviot, a British investment firm, had the following to say on CNBC:


... said...

As you know, one of my previous positions was as administrator at a very low key Hedge Fund. Our profits were always greatly affected by the price of gold as we did own a lot of the physical stuff and once a year my mad boss would travel to Switzerland to 'visit it' - seriously!!


Anonymous said...

Below is off-topic, but I do have some on-topic feedback later. In the meantime, you should look up the Washington Agreement on "managing" (i.e. manipulating) gold prices.

Anyway, the off-topic first...

Good article on Lew Rockwell about the murderers driving those Predators.

Portrait of a Drone Killer: I have a Duty and I Execute my Duty.

Quoting from one of these psycho killers:

"It's like a videogame. It can get a little bloodthirsty. But it's fucking cool."

Hmm, videogame, fucking cool.

Once upon a time, treated the incidental deaths of innocents, children, families, as collateral damage.
A bit inconvenient from a PR perspective. These days apparently it's fucking cool.

And at no personal risk. Magic: action without consequence. Or so they believe.

Still he is right about one thing: life is just like a videogame. Death too. Except the pain's more realistic.

So I wonder how much seering pain it will take for this airforce gamer to learn it's not fucking cool.
Not even slightly cool, in fact.

At best, he can tell himself he's just obeying orders. The president says to do it.

And the president can claim he's just obeying orders from the sociopathic New York moneygrubbers,
a seductive evil who consider moral wrong and Mosaic law to be quaint anachronisms, regarded only by backward country bumpkins.
You know, those people who believe in love, truth, justice, compassion and other such archaisms.

In the end, we'll see who's backward.

Funny thing is:

In time, the technical advisors of the moneygrubbers will tell them the selfsame things that I am.
They won't want to believe it. Frightened, they will redouble their efforts to hide from the truth.

But they can't live forever.

You can burn the evidence of your crimes. But what happens when that evidence is you?

"You're talking about murder."
"Yeah, so? Oh, I'm sorry. It's one of the commandments, right?"

Anonymous said...

Thanks Aang,

I like the chap who says that gold being manipulated is a pretty strong claim. And that's probably true if you have your head up your arse. Me, I've read so many deconstructions of the impossibility of gold's behaviour (v-shaped bounces, sales in the face of staggering losses, etc) that I take it as read.

Not forgetting of course, and as the talking heads themselves say, gold underpins everything (ie. 'whether money will retain its purchasing power'), and so the question would have to be - how could they not manipulate it? Of course they do. They have to, they have no choice.

I think it would be safe to say that gold is the single most manipulated commodity that exists.

Not forgetting tungsten substitution... were that to get the media airing it deserves then... holy shit, it'd be the end of everything wouldn't it? With the destruction of such a keystone element of trust (underpinning everything) there'd be nothing to hold up the house of cards that we otherwise refer to as 'the economy'.

But, you know, 'though the heavens may fall...'

Anonymous said...

As promised, more on gold market manipulation...

GATA Presentation from 2011

GATA, the Gold Anti-trust Action Committee, was formed to take legal action against the banks responsible for manipulating gold markets. Mostly price suppression is done under the Washington Agreement and co-ordinated among the central banks, and obliquely investment banks, via the regular meetings that take place at the Bank for International Settlements in Basel.

There are two reasons for manipulation of gold markets.

Reason one: Vulgar greed.

There has in recent history been massive insider trading, such as frontrunning, on large gold trades in certain banks whose identities you can probably guess. The instances I know of could only have been done with the complicity of highest management. [NB. Not widely known but very definitely public information.]

Reason two: Geo-economics.

The Manhattan cryptoplutocracy maintains the US position of exceptional global power partly through brute violence and meddling, partly through propaganda.

And, most crucially, through US dollar hegemony. Any alternative to the US dollar as reserve currency and "oil currency" must be neutralized. Gold is an especial threat. It has therefore been demonetized and sold off in large amounts from many central bank reserves. I expect the very people responsible for denigrating gold are chief among the buyers. This demonetization has been taking place for quite some time; even before that slithering Fabian Keynes described gold as a "barbarous relic".

The GATA presentation refers to declassified CIA documents essentially outlining the geo-economic reasons. Hidden in plain view.

Incidentally, the BIS obliged in this demonetization by giving gold much a higher risk rating than Treasuries under Basel II.

Yes, the US Peso, whose abundance is limited only by the speed of printing, is safer than gold, which is irreplicable, immutable, created only in the heart of a dying star and dug from the earth with real, unfakeable human effort.

Makes you wonder what the BIS economists were smoking. Maybe a little too much white truffle in the BIS Sports Club restaurant.

Actually, under Basel III, I believe gold is Tier 1 capital, as opposed to Tier 3 under Basel II. The reason for this change? Maybe because you can only lie so much before everyone just ignores you.

It amuses me to think the abundance of SIG-550s in the neighborhood is another reason.

It is also worth noting that underlying asset prices can be manipulated through the derivative markets based on them. At least until all trust in said markets has evaporated.

"Yes, and that's what daddy does. Daddy passes someone else's cake around and picks up all of the crumbs.
But you have to imagine a lot of crumbs and a great big golden cake and a lot of golden little crumbs.
And you have to imagine daddy running aroung picking up every little golden crumb he can get his hands on.
And that's what daddy does."

Anonymous said...

He is good, that anon, isn't he? Not the one preceding, he's rubbish - I mean that last chap. More please.

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