Bullion Bulls Canada
Adrian Douglas of GATA Audio Interview
[note: we have split the interview into four parts, but there is also a link (below) to view or download the whole interview]
In our desire to bring our audience as much quality “content” as possible, Bullion Bulls Canada plans to start providing our members and guests with interviews of people who we feel can provide a valuable perspective – either on precious metals directly, or the markets which impact them.
We were pleased to be able to recently publish a written interview with respected silver analyst Ted Butler. Today, we are equally pleased to release our first audio interview – with none other than Adrian Douglas of GATA. He has recently become a “household name” to precious metals investors through helping to first publicize the revelations of metals-trader, “whistle-blower” Andrew Maguire, and then appearing with Mr. Maguire in the legendary “King World News” interview.
We don't repeat any of that material in this interview. Instead, we look at some of the repercussions of recent revelations, including those from Jeffrey Christian of the CPM Group, at the recent CFTC hearings. We also give Mr. Douglas the chance to provide viewers with many of his other interesting perspectives on the precious metals sector – taken from some of his recent and older work.
We hope that our audience finds this interview as enjoyable and informative as it was for us in getting a chance to talk with Adrian Douglas. And we hope that we can find a guest for our next interview who is as interesting and educational for our members and guests.
The ‘New Normal’: Sedating The Sheep
In our Orwellian world of the 21st century Corporate Media; euphemisms abound. Some are merely inane. Some are slippery and deceptive. And some are plainly malicious. The abominable euphemism “the New Normal” satisfies all of those descriptions.
This time it’s different. Utter that expression in a sarcastic tone in any corporate boardroom, and one will likely elicit a chorus of sympathetic laughter. State it seriously, and one will be the subject of scorn and derision themselves.
What is the inevitable response of seasoned executives when some boardroom Novice attempts to peddle the line “this time it’s different”? The more things change, the more they remain the same. Context changes; Principles are immutable.
Yet what is the literal translation of The New Normal? This time it’s different. The euphemism constructed by the Corporate Media, and parroted by every politician, banker, and media talking-head as the Ultimate Wisdom of the 21st century is, in fact, a tired-and-pathetic cliché which had already been discarded by the same Corporate world decades ago. It can’t get any more inane than that.
Obviously, when the Corporate Media takes an old and ridiculed cliché, re-packages it, and peddles it as Ultimate Wisdom it is being slippery and deceptive. The question then becomes: what is the Agenda here?
Fortunately the Corporate Media is nothing if not transparent. We can determine the agenda behind this media lie simply by examining the various contexts in which it is used.
Massive, permanent unemployment? It’s the New Normal. Endless crime and corruption perpetrated by our largest financial institutions? It’s the New Normal. Gigantic-and-growing government debts? It’s the New Normal.
In the 1980’s when Canada’s debt-to-GDP ratio soared above 70%, it was deemed to be having a “debt crisis.” Today, with Canada’s debt-to-GDP ratio over 80% it’s the poster-child for “fiscal prudence” in the West. How can this be? It’s the New Normal, silly!
The New Normal is a mantra of failure. Our governments first created massive unemployment (implementing the Oligarchs’ treasured “globalization”), and then have done nothing about it since. But it’s not their fault.
Our (weakling) governments first allowed our Crime Syndicate banks to perpetrate the largest white-collar crime-wave in history, and now tell us there is “nothing they can do” to punish the criminals; but it’s not their fault.
Our governments are rapidly bankrupting all of our nations with the worst revenue crisis in history. Yet with more than 90% of all wealth in the hands of 5% of the population; that 5% is being taxed at the lowest rates in history. But don’t blame the Traitor Politicians – it’s not their fault. It’s the New Normal.
What a wonderful age it is to be a politician! On the rare occasions when something goes right (I’m sure it does happen) the politicians soak-up all the credit. But any time and every time something goes wrong, it’s not their fault – it’s just the New Normal.
What a wonderful age it is to be a banker! Collude with your buddies to rig the $500+ trillion LIBOR debt-market – and get caught. Launder $trillions in drug money day after day, week after week, year after year – and get caught. But nobody goes to jail.
The Silver Market: An ‘Operation’, Not A Liquidation
Recent, previous commentaries have focused on the massive liquidation in the paper-gold market; as large investors (in large numbers) have fled that paper in favor of real metal. It has now been established that this flight out of the paper-gold market was in response to the Cyprus Steal – and at least to some extent has been a choreographed event.
Naturally this had led to a question from readers: what about the silver market? Indeed, while the silver market has also seen the price for paper-silver plunge; there has been no corresponding liquidation of paper-silver. So what is going on here?
Regular readers have already supplied their own answer to this question, in their mail and in their comments on our Forum: yet another “manipulation operation” in the silver market. When any market exhibits some violent move in prices for no reason; we are justified in suspecting manipulation. When any market exhibits violent price-moves for no reason on a regular basis; we are justified in concluding that manipulation is taking place.
Such has been the case in the silver market not simply for years but for decades. The primary whistle-blower in the precious metals sector has been GATA; the Gold Anti-Trust Action Committee. However, despite its original focus on the gold market it has spent increasing time/energy focusing on the silver market – drawn by the especially blatant/egregious evidence present there.
[chart courtesy of Nick Laird, sharelynx.com]
What the chart above illustrates is not a recent phenomenon, or a temporary aberration. It is a permanent, heavy-handed club; being used by the same handful of bullion-banks to perpetually beat-down the silver market.
In both its size and its concentration; it represents a significantly more extreme position in the market than that of the Hunt Brothers – when they were convicted (in 1980) of manipulating the silver market. By itself, it is conclusive evidence of silver manipulation.
Those readers interested in a more detailed, long-term examination of silver-manipulation can refer to an older commentary: Fifty Years Of Suppressing Silver. And for those readers interested in even more historical insights into the silver market there is The Silver Stealers; a detailed chronology of the silver market by Charles Savoie.
Returning to the present, we have a silver market which was already severely depressed, where inventories had already suffered long-term decimation, and where demand remains robust; suddenly plunging lower for absolutely no reason. Defenders of market-manipulation will suggest this was a “sympathetic reaction” to the gold market…except it wasn’t.
Definition of insanity: performing the same act again and again, but expecting a different result.
Obviously this is a colloquial “definition” of insanity. However, at the very least it is an unequivocal demonstration of abject stupidity. Choosing to repeat failure is utterly indefensible behavior.
What do we see with our politicians, bankers, economists, and media talking-heads? Bludgeon your way through all of the obfuscation; and we see that most of our economic problems are derived directly from two, failed policies: excessive money-printing and excessive debt.
Yet what are the only two “solutions” for these problems being proposed by Western governments (and their apologists in the Corporate Media) today? Even more-extreme money-printing, and even more-extreme debt-creation. Putting out the fire with gasoline. Insanity.
Has anyone actually paid attention to any of the so-called sovereign “bail-outs” which have occurred over the past five years? In every instance it has involved lending vast sums of money to hopelessly insolvent governments.
Supposed I owe $10,000, but require a “bail-out” because I can’t service this debt; and my Rescuer lends me another $5,000. Please explain to me how I’ve been “bailed out” when I now owe $15,000? Obviously if I couldn’t make payments on my debt when I owed $10,000; it’s mathematically impossible to do so when I now owe $15,000.
I haven’t been “bailed-out.” Instead, my bankruptcy has been temporarily delayed, but at the cost of a much larger bankruptcy down the road. This is precisely the opposite manner in which this is handled in the private sector.
In the private sector (unless you’re a Too Big To Fail bank); insolvency is resolved as quickly as possible – with either a genuine “restructuring” (i.e. less debt rather than more) or a formal bankruptcy proceeding. It is universally understood that this is always the process which minimizes economic losses (and the misallocation of resources).
But this is only the foundation for our insanity. On top of this initial layer of insanity; we have multiplied this quest for self-destruction with (arguably) even greater insanities.
What is the only, possible valid reason for repeating a strategy which has already failed repeatedly? We conclude that “the Plan” itself was valid, but the execution of that plan was faulty. In which case, the only sane course of action is to get different people (hopefully better) to attempt to execute the Plan.
What do we see instead? Employing the same Cast of Clowns (Criminals?) who have already failed repeatedly to remain in charge of executing the Plan – expecting that this time the Clowns will perform admirably. Employing the same Cast of Clowns to repeat a failed strategy which is universally understood to be the precise opposite of what they should be doing.
Alternate definition of insanity: expecting the same people who screwed things up originally to “fix” their mistakes…by continuing to make the same mistakes.
The World Paper Council
Once upon a time, an entity called the “World Gold Council” was created. It was supposed to be an industry trade-group, which (like all industry trade-groups) promotes the health and growth of their industry. But that’s not how it turned out.
To understand the World Gold Council, one need do little more than examine its history. It was created in 1987. Was this the beginning of some new, Golden Age for the gold mining industry? Hardly. In fact, it marked the early stages of the most successful era of gold price-suppression in history, and the complete destruction of the global gold-mining industry – with more than 90% of the world’s gold mines being bankrupted.
If the World Gold Council is really an “industry trade-group”, then it was/is the most incompetent/inefficient such entity ever created. But, of course, the World Gold Council doesn’t serve “gold” or even gold-mining. It serves paper – banker-paper, to be precise.
Like all (supposed) industry trade-groups, the WGC is officially comprised of a collection of the world’s largest gold-miners; who themselves are nothing but a herd of banker-sycophants. Lest anyone suffer from the delusion that the world’s gold miners (and the WGC) were merely “innocent bystanders” in the destruction of the global gold-mining industry, more facts are in order.
At around the time the WGC was formed; these same large, gold-miners were in the process of enslaving themselves to the bankers by forward-selling 100’s of tons of gold which hadn’t even been dug out of the ground yet – in order to further depress prices in the sector by creating a glut of supply.
This policy of self-destruction became institutionalized. As quickly as the sycophant-miners identified new reserves in the ground, they would forward-sell that ore to the bankers, permanently discounting their own commodity. Those readers who don’t fully comprehend this intentional suicide-spiral need to be reminded of another industry trade-group, with which we are all familiar: OPEC.
When OPEC was created, did it immediately result in a long-term depression in the price of oil? Did it result in 90% of the world’s oil companies being bankrupted? Did OPEC members forward-sell their oil in massive quantities? No. Precisely the opposite, in every respect.
OPEC didn’t forward-sell their oil to depress the price; they restricted supply to maximize total revenues for their industry. Their industry did not go into a long-term depression where more than 90% of all companies were bankrupted. Instead, this industry trade-group is directly responsible for the robust/health profits of the world’s oil companies.
But don’t take my word for it. Feel free to check with Rex Tillerson, CEO of Exxon. The $400 billion market-cap for Exxon is larger than the combined market-caps for the entire, global gold-mining industry. Indeed, Mr. Tillerson’s personal, annual compensation is larger than the individual market-caps of most of the world’s gold-mining companies.
Clearly the World Gold Council is nothing but a slave-collective, in bondage to the bankers; and which serves not the interests of gold (or gold-mining) but rather the promotion of the bankers’ paper monetary system. Need more convincing? Simply look around their website.
Try finding information about gold (i.e. supply/demand data). What one will discover is that such data goes back no more than two years. This is despite the fact that gold mining is one of humanity's oldest industries, where we have been mining/refining gold for nearly 5,000 years. Conversely there are a plethora of essays going back more than 15 years; letting us know about all the ways in which the bankers want to use our gold to make their paper system “better.”
The World Paper Council is, in reality nothing but a banking industry sub trade-group; composed of some of the bankers most-loyal servants, paying homage to their Masters. More proof that the WGC serves paper rather than gold came out today, with its utterly astonishing reporting on Q1 for the gold market.
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