Written by Jeff Nielson Thursday, 25 July 2013 13:51
The Great Paper Liquidation continues. While the stampede out of the banksters’ fraudulent paper-called-gold products has eased from its frantic pace of a couple of months earlier, the bleeding continues.
The largest of these banker-scams, the SPDR Gold Trust (GLD) has seen its holdings plummet below 1,000 “tonnes”, the lowest level of holdings since 2009, representing a greater-than-25% collapse. Many of the (larger) holders have been redeeming/converting their paper for real bullion – as demonstrated by the even greater collapse in Comex gold inventories.
However simply redeeming bullion is a price-neutral event. With the near 25% collapse in the price of paper gold; obviously most of the action by the unit-holders of these fraud-funds has simply been selling.
This brings us to the interesting/incongruous news that the bullion banks themselves are currently “net long” paper-called-gold. Many readers (and even some commentators) have interpreted this as inferring that the banksters are positioning themselves long in anticipation of the next rally. My own interpretation of this propaganda is quite opposite.
First of all, there has been no reported change in the banksters’ net-short status in the silver market, where there has been no massive flight out of paper-called-silver. This tells us two things.
The gold and silver markets are now totally correlated, thanks to the ultra-manipulative trading algorithms of the banksters themselves. Where one metal goes, the other must follow. As a result it makes absolutely no sense strategically for the banksters to be net-long in gold and net-short in silver – the two bets cancel each other out.
This brings us to the other “truth” revealed by the fact that the bullion banks are still net-short in silver. With the propaganda machine having frightened any/all new buyers out of the gold market; there were no buyers for all of the units of paper-called-gold being dumped onto the market by panicked sellers…except the bullion banks themselves.
Why are the banksters “net long” in the gold market, while still decidedly short in the silver market? Because in the silver market they weren’t (effectively) forced to soak-up millions of units of their own paper-fraud products. As the Chumps bailed-out of GLD, meet the new Chumps: the bullion banks themselves.
At this point let me pause for an important caveat. Not all gold and silver funds are frauds. While investors need to do their own due diligence here on a fund-by-fund basis; accepted “exceptions” to the bankers’ fraudulent world of paper-called-gold and paper-called-silver are the funds/trusts operated by the Central Funds group and Sprott Asset Management.
Anecdotally, it’s interesting to note that my failure to include this qualification in several recent commentaries about the fraud of paper-called-gold has not drawn any disgruntled comments/mail from the holders of these funds (as has occurred in the past). Presumably the holders of these funds are fully aware of the superior pedigree of their holdings, and secure enough not to feel threatened by my generalizations about paper bullion products.
Returning back to the bankers’ surreal world of paper-called-gold, one of the regular themes of recent commentaries has been the frantic-but-feeble effort to find Chumps in Asia for these fraud products (and in India, in particular). It was the utter failure of these efforts over the first six months of this blitz which led to several draconian measures by India’s government to constrict gold imports into the country.
How has this fraud campaign being going more recently? We see more proof of utter failure here in listening to the propaganda machine brag about its ‘success’:
…In sharp contrast to Western markets, where investors made a beeline to exit gold fund investments, a net $33.5 million was pumped into Asian gold and precious metals miners funds in the three months to June, according to data from fund tracker Lipper and Reuters calculations.
Ooh! Thirty-three million dollars spread over three months. That’s going to create a lot of shock-and-awe in bullion markets. But note that the laughable number presented by Reuters isn’t even all investment into (fraudulent) paper-called-gold, but also (net) investment in “precious metals miners funds”.
Written by Jeff Nielson Sunday, 21 July 2013 13:07
In 1980, in an infamous episode of “American Justice”; the Hunt Brothers were charged (and convicted) with attempting to “corner the silver market” – i.e. an attempt to monopolize it. At the time prosecution commenced, the Hunt Brothers had only managed to acquire less than 20% of total global inventories.
Nonetheless, given the strict provisions of our anti-trust laws this was a violation. In this one (relatively tiny) market; even a 20% concentration by a single entity is considered unacceptable. But that was when our governments were less-corrupt, and still enforced these laws on at least a semi-regular basis.
In detail, nearly 4/10 of the control over the economic value of [all transnational corporations] in the world is held, via a complicated web of ownership relations, by a group of 147 [transnational corporations] in the core, which has almost full control over itself. The top holders within the core can thus be thought of as an economic “super-entity” in the global network of corporations. A relevant additional fact at this point is that ¾ of the core are financial intermediaries. [emphasis mine]
In 1980, it was intolerable for one entity to have even a 20% share of one, small market. In 2013, the same cabal of (Western) governments has allowed a “super-entity” to acquire double that share – not of a single (small) market, or a whole sector, or even an entire economy. Rather, this is a single “super-entity” with 40% control of everything.
Of course when these researchers coined their term “super-entity”, they had no need of inventing new terminology. The word they were searching for was “monopoly”: a single monopoly with 40% control over the entire global economy.
Obviously what is being implied here is not minority control in every single market/sector/economy. Clearly this One Monopoly has a stranglehold over 40% of all markets/sectors/economies – with this obscene level of control spreading rapidly, like a particularly virulent economic cancer.
When the researchers speak of the ¾ of the “core” which are “financial intermediaries”; what this euphemistic language means is that ¾ of this giant monopoly are banks and bank holding-companies. The One Monopoly is one, big bank.
Despite its fraud-bloated size; the entire Western financial sector (all of these rapacious, utterly criminal Big Banks) would form only a small component of this One Bank. Thus while it is not necessarily true that the One Bank has effective control of all these fraud-factories; it is undoubtedly true that it controls the vast majority of them.
A “banking monopoly” with 40% control of all sectors of the global economy will obviously have a much, much higher concentration of control in the Heart of the Beast. The Big Banks of the West are literally “partners in crime” in the truest sense of that expression.
What is the crime being perpetrated by the One Bank? Anyone who reads even the diluted accounts of the Corporate Media will already know that the One Bank is involved in a cornucopia of crime, with the Attorney General of the United States, himself, publicly pledging to cover up all this (literal) organized crime. The One Bank is a crime syndicate.
However, among this litany of financial/economic atrocities, one grandiose scheme stands out above all others: nothing less than the economic enslavement of all humanity. While the “web” of corporate fronts which hides this obscene/illegal monolith may be intentionally convoluted; its strategy couldn’t be simpler.
Persuade/coerce all the Puppet Governments under its influence to intentionally become over-indebted, literally to the brink of bankruptcy…and then blood-suck. Steal a (large) portion of all the labours of all productive members of our society as so-called “interest payments” – forever.
The One Bank is above all else a gigantic parasite, claiming a large piece of all human production while earning none of it.
Understand that in one way or another, all of the massive/unrepayable bond debts of these Deadbeat Debtors are thoroughly tainted with fraud. How did (nearly) all of the West’s governments bury themselves in debt, far past the point of insolvency? They had a lot of help.