Wednesday, April 10, 2013

Fed's Assault On Gold Futile...Dollar Collapse Inevitable...

...It's Only A Matter Of Time.

The Assault On Gold — Paul Craig Roberts

April 4, 2013

For Americans, financial and economic Armageddon might be close at hand. The evidence for this conclusion is the concerted effort by the Federal Reserve and its dependent financial institutions to scare people away from gold and silver by driving down their prices.
When gold prices hit $1,917.50 an ounce on August 23, 2011, a gain of more than $500 an ounce in less than 8 months, capping a rise over a decade from $272 at the end of December 2000, the Federal Reserve panicked. With the US dollar losing value so rapidly compared to the world standard for money, the Federal Reserve’s policy of printing $1 trillion annually in order to support the impaired balance sheets of banks and to finance the federal deficit was placed in danger. Who could believe the dollar’s exchange rate in relation to other currencies when the dollar was collapsing in value in relation to gold and silver.
The Federal Reserve realized that its massive purchase of bonds in order to keep their
prices high (and thus interest rates low) was threatened by the dollar’s rapid loss of value in terms of gold and silver. The Federal Reserve was concerned that large holders of US dollars, such as the central banks of China and Japan and the OPEC sovereign investment funds, might join the flight of individual investors away from the US dollar, thus ending in the fall of the dollar’s foreign exchange value and thus decline in US bond and stock prices.
Intelligent people could see that the US government could not afford the long and numerous wars that the neoconservatives were engineering or the loss of tax base and consumer income from offshoring millions of US middle class jobs for the sake of executive bonuses and shareholder capital gains. They could see what was in the cards, and began exiting the dollar for gold and silver.
Central banks are slower to act. Saudi Arabia and the oil emirates are dependent on US protection and do not want to anger their protector. Japan is a puppet state that is careful in its relationship with its master. China wanted to hold on to the American consumer market for as long as that market existed. It was individuals who began the exit from the US dollar.
When gold topped $1,900, Washington put out the story that gold was a bubble. The presstitute media fell in line with Washington’s propaganda. “Gold looking a bit bubbly” declared CNN Money on August 23, 2011.
The Federal Reserve used its dependent “banks too big to fail” to short the precious metals markets. By selling naked shorts in the paper bullion market against the rising demand for physical possession, the Federal Reserve was able to drive the price of gold down to $1,750 and keep it more or less capped there until recently, when a concerted effort on April 2-3, 2013, drove gold down to $1,557 and silver, which had approached $50 per ounce in 2011, down to $27.
The Federal Reserve began its April Fool’s assault on gold by sending the word to brokerage houses, which quickly went out to clients, that hedge funds and other large investors were going to unload their gold positions and that clients should get out of the precious metal market prior to these sales. As this inside information was the government’s own strategy, individuals cannot be prosecuted for acting on it. By this operation, the Federal Reserve, a totally corrupt entity, was able to combine individual flight with institutional flight. Bullion prices took a big hit, and bullishness departed from the gold and silver markets. The flow of dollars into bullion, which threatened to become a torrent, was stopped.

If Bullion Were Not a Threat Government Would Not Attack It- Paul Craig Roberts

By Greg Hunter’s 
You want to know why gold and silver prices are down?  Listen to former Assistant Treasury Secretary Paul Craig Roberts.  He says, “When gold hit $1,900, the Federal Reserve panicked because they realized with the dollar deteriorating so rapidly, compared to bullion prices, that soon it would also deteriorate its exchange value with other currencies.”  So, Dr. Roberts contends, “The Fed had to cap the price of gold and stop the rise. . . . If bullion (gold and silver) were not a threat, the government would not be attacking it.”  Not only is the Fed debasing the dollar, but the Fed and IMF encourage other countries to do the same thing.  So, gold will continue to be acquired, and Dr. Roberts, who holds a PhD in economics, goes on to say, “They can’t forever suppress the gold price because if you look at actual demand for physical possession of the metal, it continues to rise. . . . They are desperately concerned about the dollar.”  Join Greg Hunter as he goes One-on-One with Dr. Paul Craig Roberts.


Jim Sinclair - The Coordinated Attack On The Gold Market

Today Jim Sinclair spoke with King World News about the massive and coordinated attack on the gold market.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this interview.

Sinclair: “Today was a coordinated attack on gold.  We had the Goldman Sachs recommendation to short gold.  We also had the Federal Reserve Open Market Committee notes quite unusually released before the opening.  Then we had the mainstream media focus on the sale of Cyprus gold, and Mrs. Lagarde on the wire telling people everything was fine with the economy. 

The market in gold has significantly changed.... 

“It’s no longer the investment banks vs a community of investors who feel that gold is undervalued, but rather it has shifted, as you can see in trade figures, to major accumulation by sovereign central banks such as Russia and China.

It is also important to note that in Europe gold has been marked-to-market as far as their reserves are concerned.  So the focus of today’s totally transparent attempt to discredit gold is that, yes, it will have an effect on the paper market, but it will have no effect whatsoever on the physical market where in fact the sovereigns trade. 

Sovereigns don’t trade on the COMEX, they never would.  Rather sovereigns trade in the physical market in London and elsewhere, and they take delivery of the gold they have purchased.

The intention of central planners is to remove concern from the general public.  Yesterday we had to listen to almost embarrassing backpedaling on the definition of the bail-in, which has now been converted to the need for banks to hold additional reserves from their earnings in order to be able to have the funds to meet emergencies. 


Incredibly Important Developments In Gold & Silver Markets

Today King World News is reporting on incredibly important developments taking place in the gold and silver markets.  Acclaimed commodity trader Dan Norcini told KWN that “What we are seeing is a battle of titans taking place in the gold, silver, and commodity markets.”  Norcini also warned that this is a similar type of setup in which the silver market moved a staggering 525% higher, and gold advanced 183%.

Norcini has been stunningly accurate in his predictions of the movement in the gold and silver markets.  Now the acclaimed trader discusses these incredibly important developments in both of these markets:  “What Japan is doing right now is unprecedented.  The Japanese are engaged in massive QE.  Their current version of QE actually exceeds the size of what the Fed has done when you compare the scale of both economies.

The world continues to witness tremendous turmoil in the currency realm, and Japanese institutions hold a staggering $6.34 trillion of government bonds, in the face of a plunging yen and virtually no yield on their bonds.  What this is creating is a massive flight of money out of Japan.   

This is impacting key markets around the world.  Yesterday, as an example, we saw a tremendous rally in silver, solid strength in gold, and a big rally in the mining shares.  But this move is very different than what we have seen in the past.  This strength in gold, silver, and key commodities, is taking place as money is fleeing Japan....

“So we have Japanese institutional money flowing into gold, silver, and other key commodities at a time when the hedge fund short positions are the largest they have been in many years.


Goldman's gold short call mocked by GGR's Arensberg

11:28p ET Wednesday, April 10, 2013
Dear Friend of GATA and Gold:
Gene Arensberg of the Got Gold Report today mocks Goldman Sachs' claim to be taking a short position in gold.
Arensberg writes: "Much more likely is that Goldman is already nearly maxed out on their short position for the yellow metal and, following the news from the Bank of Japan of massive new money printing, and following gold fetching up above its important $1,525 technical support, and needing new 'blood' on the short side, the Goldman gang felt the need to call in some public negative reinforcement."
Arensberg's commentary is headlined "Gold Prices Hit by Goldman Forecast Cut, Fed" and it's posted at the Got Gold Report here:

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