By Bob Chapman
TheInternationalForecaster.com
Friday, September 30th, 2011
The takedown of gold and silver markets over the past two weeks signified a new milestone in corruption, brazenness, arrogance and it reveals the level of evil control behind our government. This past week, in just one week, saw gold fall almost $200 and silver about $10.00. We have been involved in gold and silver for 53 years and the only event that comes close to this was October 19, 1987, when we witnessed the Bank of England sell down gold $100.00 under the orders of the Fed and the US Treasury, which borrowed the gold from the IMF. That was illegal, but that means little to the Illuminists who do as they please. Today thanks to Ronald Reagan we have the “President’s Working Group on Financial Markets,” which has legitimatized corruption to conform to the Keynesian model of corporatist fascism. After the close on Friday we were informed, that the CME, which controls the Comex, had raised margin requirements on gold by 21%, silver 16% and in copper by 18%. In retrospect it is obvious that many banking insiders and traders knew early in the week that this momentous psychological warfare was going to be unleashed on these markets. Your government definitely rigged these markets. Today in America and many other places as well, crime pays. What has been done to investors over this past week is not only a crime, but also a disgrace to all Americans.
Let us now look at the flipside. All is not lost, because there is a limit to the damage that can be done. The paper attack on gold was concentrated and accomplished by using futures, options and derivatives. Thus far there is no evidence of any major sales of gold or silver. This in the past has generated very short terms of suppression. The fundamentals have not changed one bit and if anything they are stronger than ever. The world is in the midst of financial collapse. It could take a few months to fall or several years. We do not have a presence behind the scenes, but we do know history and we know what these criminals are up too and what the end game is and that is world government. We have to back into time sequence. That has thus far been enough to help us to make excellent calls. The call this time is we are approaching another bottom. A bottom that probably won’t be seen again. Major buyers of gold and silver have to be waiting with open arms for such a great opportunity to purchase both metals at bargain basement prices. There are sovereigns who are loaded with US dollars, who have been waiting for just such an opportunity to sell them into a strong dollar market to purchase inexpensive gold and silver. Today’s market is totally different than the gold and silver markets of just two years ago. Big players are big buyers. Prior to that the opposite was true as sovereigns were sellers year after year, and both were transferred from weak to stronger hands. The monetary and fiscal situations in Europe, the UK and US are in a shambles. The privately owned Federal Reserve, the Bank of England and the European central bank have all lost credibility. Just look at the reception “Operation Twist” received – bonds rose and the stock market was hit by a typhoon. The Fed has lost its credibility in the investment arena worldwide, because of forced compromise to existing problems. The fed simply didn’t have the guts to implement a QE 3. If the Fed is not quickly forthcoming with a new plan the Dow could fall thousands of points. The damage to gold and silver is already in the history books and the turn back up is already taking place. No matter what the powers that be do they cannot for any period of time control gold and silver prices. There are too many buyers who want to dump fiat currencies. Under the circumstances the Twist was the wrong choice at the wrong time. Financial professionals worldwide believe it is a joke. They see the lack of proper action, the activation for events for more damaging then those of 2008 and if something doesn’t happen this week markets and economies are doomed. The elitists knew this and that is why they attacked gold, silver and commodities. This was so investors would think it was a general overall retreat not a reflection of Fed incompetence. Their fall had nothing to do with reality and everything to do with smoke and mirrors. This should not surprise anyone. It has been used over and over again by the gold and silver suppression cartel.
In reaction to Mr. Bernanke’s folly stock markets worldwide fell about 5% in just two days, which was a considerable feat, piling on to previous losses. Friday would have been a loser as well, but for the PPT being assisted by short covering. This poor choice of assistance has slammed the market and it has set the stage for a monster rally in gold and silver and commodities as well. The idea of pegging interest rates on Treasury debt is foolhardy in the current environment. Subsidizing rates leads to imbalance and losses. This and zero interest rate loans to banks, and massive monetization are going to eventually raise havoc with the economy, not to mention climbing inflation. It should also be noted that all these actions encourage more leveraged speculation. The elitist should learn that all their machinations won’t work especially these attacking gold silver and commodities. We might add that attacking every world currency won’t work either. The elitists in brokerage and banking are making a killing in this slaughter, but on the other hand it gives us cheap prices to buy into.
This latest fiasco gives us two major problems. The other naturally being Europe and Greece. Duress isn’t the word for it. Global systemic risk lurks around every corner. In Europe the ESRB has called upon governments to prepare capital injections for banks, which were close to failure, or failed stress tests. The taxpayer is to be the lender of last resort. At this juncture those who do not recognize all of these machinations as a Ponzi scheme just do not get it. As we saw in QE 1 all the effort was put into saving the financial sector, and in Europe presently we are seeing the same thing happen. At the moment at least, and we do not expect any quick recoveries, Europe is weaker and in more serious trouble than the UK and US. The problems of Europe, the US and UK have now as well spread contagiously into Asia, its financial system and into their economies as exports fall. Europe is one step away from losing control. The question is how long will it take? We do not know, but we will have a better idea after September 29th. Then we will have to reassess Europe’s public and banking debt and bad debt problems. If you remember we predicted this crisis occurring a year ago. Well, here it is. What Brits and Americans fail to understand is that the worst is ahead for them as well.
Make no mistake Europe is facing another liquidity crisis worse than the Lehman crisis. This crisis is being exacerbated by massive markets manipulation by major US and UK banks and brokerage houses. They will do just about anything to gain an edge. You saw this last week in European, UK and US markets including commodities, gold and silver. These criminal opportunists are going to play this game to the bitter end, because they will not accept a purge of the system.
In the past spring we could see problems arising at banks and in the corporate world. Now we see those conditions manifesting themselves. These were the institutions that paid no heed to prudent lending and now are paying for it dearly. US money market funds and other institutions have pulled 2/3′s of their short-term investments out of EU banks, particularly in France. In addition European corporations are withdrawing funds from French banks and lodging the deposits at the ECB. It is not surprising to us that the Rothschilds had to come to the aid of Soc Gen three weeks ago.
The US has its share of shaky banks. We all should be aware of the condition of BofA and the Bank of NY. They are not the only US banks in trouble in the too-big-to fail category. There are a score of them that the media conveniently fails to report on. Many of these banks are finally being sued for fraud. Most of their officers should have been charged criminally long ago. The mortgage securitizations they were involved in were in some of the worst financial scams in history. Even worse yet, were the rating companies that courts have let totally off the hook. The complicity and criminality jumps right out into your face. As you can see in American society some are more equal than others.
Even German banks have not escaped the lack of capital, obviously having lots of bad assets on their books. They could need an infusion of some $200 billion. This is fairly widespread. They all made similar errors. We have always thought there was more to Germany’s bank problems than met the eye. We still believe there was a secret deal between these banks and the Fed. Why else would it have taken on 60% of American banks’ toxic waste? It is of interest as well that the IMF says European banks could be short capital of $270 billion.
Full article HERE
No comments:
Post a Comment