The Gold and Silver Manipulation Scandal is Here
The most important financial scandal, far greater than LIBOR, is now being prepared to be brought to the forefront, and it shall not be long before it will start to reveal the grand theft that has seen all the gold leave the vaults in the west and end up in the east. The West has been looted and the only “asset” it has been left with is DEBT. The powers that be may have finally decided that it was time to bring about the scandal of all scandals, the one we warned about multiple times in the past:
http://orthodoxaustralia.org/2013/07/05/you-wont-see-this-in-the-western-media-until/
http://orthodoxaustralia.org/2013/07/20/what-is-happening-in-the-gold-markets/
In a recent Bloomberg interview it has been revealed that there is virtually no gold left in the western vaults. Here is what the Bloomberg guest had to say:
“… you could walk into a vault in London and they were packed to the rafter with gold, and the gold would trade from me to you to somebody else. You could walk into these vaults today and they are virtually empty. All that gold has been transferred out of London, 26 million ounces …. the Chinese don’t want US dollars anymore, they want gold”
The story has picked up steam lately when it was revealed that JP Morgan surprisingly announced it would sell the precious metal commodity trading business:
http://orthodoxaustralia.org/2014/01/10/world-news-10-jan-2014/
The move clearly indicated that they were getting ready for the moment we are now at – the news of a widespread conspiracy to manipulate gold, silver and various currencies has broken in the mainstream media:
http://www.reuters.com/article/2014/01/17/gold-fix-idUSL5N0KR2U620140117
Barely a day after the news broke, Deutsche Bank, one of the players being investigated, has already announced it is withdrawing from Gold fixing as well:
Deutsche Bank AG (DBK) will withdraw from participating in setting gold and silver benchmarks in London after Europe’s top investment bank joined JPMorgan Chase & Co. and Morgan Stanley in cutting back on commodities. The German bank will sell its gold and silver fixing membership and stop submitting gold forward offered rates, according to a person familiar with the decision, who asked not to be identified because the information isn’t public. The move comes a month after the Frankfurt-based lender said it will cut about 200 jobs in raw materials.
THIS IS BIG!
This will be the final nail in the coffin of the western financial system because it will lead to loosing control of the interest rates in the US by the Federal Reserve. It is well documented that the mechanism by which they have been able to control the interest rates was by suppressing the price of gold and thus still maintain a perception that the US dollar was still the desired reserve currency of the world, despite the massive issues in the American economy – but this suppression scheme, the fire sale of precious metals that accelerated significantly in the last year, came with a heavy cost – it lead to all of gold to be effectively emptied from the west.
We know of this mechanism from non other than Larry Summers, a key designer of the current financial system. See: You won’t see this in the Western media … until …
In 1988, a young economist out Harvard, Larry Summers wrote a verbose paper entitled “Gibson’s Paradox and the Gold Standard.” In the paper, Summers explains that when the real interest rate is positive, the gold price will not increase and even decrease as parties will prefer fiat currency that increases in purchasing power. However, when the real interest rate is negative, the price of gold will increase as parties will seek to preserve their purchasing power. Gold serves as “the canary in the coal mine” for all fiat currencies. When the price of gold rises, this is the prime signal that the currency is being debased.
The hour is very late.
