Tuesday, December 9, 2008

Gold and Silver manipulation: Connecting The Dots

December 9, 2008 by bcsbusters

Money_01, originally uploaded by Kytographer.

Trilateral Plan to Corner World Gold Market?

By Patrick Wood, Editor - The August Review
December 9, 2008

[Editor's note: members of the Trilateral Commission and companies with Commission representation appear in bold type.]

Since 1973, this writer has made inquiry as to the location and ownership of the vast stores of monetary gold (400 oz., .999 pure bars) in the world. There has not been a formal audit on Fort Knox, for instance, since the Eisenhower administration. Official statistics on gold holdings are often contradictory. Getting plain answers from any Central Bank in the world, including the Fed, is virtually impossible.

This paper points out a pattern of manipulation that has been clearly observed by many people. However, patterns do not exist in a vacuum, but rather they are evidence of the existence of a stable and consistent methodology. Clearly, more study needs to be done in identifying the finer parts of the methodology and its designers, but this is a good start!

When Richard Nixon canceled the Bretton Woods system in 1971, exchangeability of paper dollars for gold was terminated. In 1970 alone, available gold vs. dollars outstanding had shrunk from 55 to 22 percent, thus exerting pressure for investors to switch to gold to avoid further dilution of dollar assets.

Although the economic and financial experts swore that gold was an outmoded, ineffective and useless financial asset, cooler heads knew better. In recent years, these same experts have reversed field and are now proclaiming that gold is still, and always has been, a consistent monetary asset. Why the flip-flop?

The economic chaos in the world today is a direct result of policies set in motion to foster a New International Economic Order (NIEO). The NIEO was the explicit creation of the Trilateral Commission, founded by David Rockefeller and Zbigniew Brzezinski in 1973, and their early papers and task force reports clearly asserted their NIEO plans.

Members of the Trilateral Commission were instrumental in creating the European Union as well. The EU is the prototype of global governance that will soon exert its influence to reshuffle world relationships.

Since 1973, Trilateralists have dominated the Executive Branch of the U.S. government with politicians like Jimmy Carter, George H. W. Bush, Bill Clinton, Al Gore and Dick Cheney. This has led to domination of the world trade mechanisms like the World Bank and negotiation of free trade agreements.

Six out of eight presidents of the World Bank have been members of the Commission. Eight out of ten of the U.S. Trade Representatives (USTR) have been Commissioners.

Indeed, the Trilateral Commission has had undue influence and control over the development of globalization, and it was self-interested at best.

With today’s total meltdown in economic and global financial markets, one must ask, “Are these people just plain stupid?”

The answer has to be “No”, considering their great success at consistently dominating political and economic processes over a span of thirty-five years.

So what else is going on?

There is mounting evidence that there has been a larger plan underway to corner the global supply of gold, thus laying the groundwork for a global currency exclusively controlled by Trilaterals and their friends. By extension, economic and political mechanisms would be controlled to the same extent.

From a Trilateral perspective, the Bretton Woods system had two flaws:

* Gold was rapidly being decentralized into non-Trilateral hands
* It limited the arbitrary creation of paper money to finance projects launched by Trilateral-related global companies. (Read Trilaterals Over Washington (Sutton & Wood) for detailed documentation on this process)

The breakup of Bretton Woods and the resulting opportunities may have been the principal rationale for the creation of the Trilateral Commission in the first place.

Since 1973, there has been an overarching plan to quietly centralize gold into private hands, using incrementally created wealth made possible by rapidly inflating paper currencies.

This theory must be explored and tested, because if true, it represents not just the hijacking of America (already thoroughly demonstrated elsewhere in this writer’s papers), but the hijacking of an entire planet!

In 1976, Antony Sutton wrote,

“The assault on gold today is an integral part of a planned move into a new economic order under the dominance of a single country. It was Nazi Germany in the 1940’s; it is the United States in the 1970’s. In brief, the war on gold that we observe today, and discuss below, is dollar imperialism, designed to maintain the U.S. dollar as the only world currency without competitors. The purpose is the formation of a world totalitarian state under Wall Street dominance.” (The War on Gold, Antony C. Sutton, 1976, p. 63)

Sutton’s view was limited because he had not yet discovered the Trilateral framework just created three years earlier in 1973. We can see now that the totalitarian state is still clearly in view, but the self-proposed rulers of this new arrangement will be members of the Trilateral Commission, and their monetary “enforcer” will be gold.

2008 Gold Hegemony

Bill Murphy is the chairman of the Gold Anti-Trust Action Committee (GATA), which has asserted for almost 10 years that a concentrated gold cartel has been manipulating the price of gold. Murphy and GATA are highly regarded around the world on their work to expose this cartel.

On September 10, 2008, Murphy made an opening statement at the 2008 Las Vegas Hard Assets Investment Conference, reprinted in full below. Murphy’s perspective and argument does not include the Trilateral Commission, but the players in his narrative are largely members or former members of the Commission.

This leads this writer to connect some dots between 1973-1976 and 1998-2008.

In Murphy’s comments, note that the famous bullion banks of 2008 include Goldman Sachs, JP Morgan Chase, Citigroup and Deutsche Bank, all of which have at least one director or senior official sitting on the Trilateral Commission. In addition, the players Murphy names are members of the Commission.

As Sutton did in 1976, to imply a “war on gold” necessitates an eventual victory, a victor and a loser. It is already painfully obvious that the citizens of America are the losers: The middle class is being wiped out and we all hold a debased paper currency that is headed toward destruction.

The question is, who will the winner be? And what is the victor’s intent over the conquered?

Bill Murphy’s Opening Statements

The Gold Anti-Trust Action Committee’s basic assertion for the past 9 ½ years is that there is a Gold Cartel out there suppressing the price of gold. It consists of the US Government, including the Fed and Treasury, various other central banks, and bullion banks like Goldman Sachs and JP Morgan Chase.

The motives of “the cabal” are to give support to the dollar, keep US interest rates lower than they should be, and to tone down the widely watched US barometer of US financial market health, that being the gold price. After all, whenever the price of gold soars, it congers up talk of too much inflation, a sinking dollar, or a crisis of some sort … all negative for Wall Street and the incumbent administration.

Therefore, “Shoot the Messenger” is The Gold Cartel’s key mission.

The suppression of the price of gold was the essence of Robert Rubin’s Strong Dollar Policy. What else did the US do to effect that policy? Talk? Jawbone?

It seems to have all started with Robert Rubin…

Before he was CEO of Goldman Sachs and then US Treasury Secretary, Robert Rubin worked in London for Goldman Sachs. One of his duties was to oversee their gold trading operations. We know this because the CEO of Kirkland Lake Gold, Brian Hinchcliffe, a staunch GATA supporter, worked in London back then for Goldman Sachs and reported directly to Robert Rubin.

This was many years ago and interest rates in the US were very high, say from 6 to 12%. Rubin had Goldman Sachs borrow gold from the central banks to fund their basic operations. They could do so at about a 1 % interest rate. This was like FREE money, as long as the price of gold did not rise to any sustained degree for any length of time.

Soon other major financial institutions realized what GS was doing and copied them. Rubin continued these operations as the Goldman Sachs CEO and then took it to a new level as US Secretary Treasurer. That is how the gold price suppression became the lynchpin of his widely acclaimed “Strong Dollar Policy.” GATA’s Reg Howe caught on to this notion in a paper titled, “Gibson’s Paradox and The Gold Standard,” co-authored by Lawrence Summers in 1988. Summers, a professor at Harvard at the time, succeeded Rubin as US Treasury Secretary. The bottom line of Summer’s analysis is that “gold prices in a free market should move inversely to real interest rates.” Control gold and it will help to control interest rates.

Bullion banks such as Goldman and Morgan became The Gold Cartel’s hit men, trading the gold market from the short side and bombing the market in coordinated anti-trust fashion at the beck and call of our government, making a great deal of money in the process … as you have all witnessed the past couple of months.

In a brilliant piece a few weeks ago Ted Butler reported 3 U.S. banks held a short position of 7,787 contracts (778,700 ounces) of gold in July, and, astonishingly the same 3 U.S. banks held a short position of 86,398 contracts (8,639,800 ounces) in August, an eleven-fold increase. Gold then declined more than $150 per ounce once Secretary Paulson (note: Paulson is ex-CEO of Goldman Sachs) gave the order, just as he did in May 2006 when a similar order was given, according to a US Senator from the state of Washington. Both times, various bullion banks made vast amounts of money quickly as the US government facilitated their short positions by feeding considerable clandestine central bank gold into the physical market.

It was the concerted, concentrated action of certain BULLION BANKS, which tipped off GATA what was going on nearly a decade ago now.

It was this clandestine feeding of central bank gold into the marketplace which clued GATA into the gold price suppression scheme. Three GATA consultants, Reg Howe, Frank Veneroso and James Turk, using independent, sophisticated methodologies, came to the same conclusion years ago … that the central banks have far less gold than the 30,000 tonnes of gold they say they have. The GATA camp research shows they have less than half that amount in their vaults, the difference being the amount that has been fed into the physical market to suppress the price. Since demand for physical gold exceeds mine and scrap supply by well over than 1,000 tonnes per year, this central bank gold is vital to prevent the price from exploding.

GATA is not alone in recognizing the central banks are not accounting for their gold properly. GATA revealed an IMF paper which corroborates GATA’s claims that much of the central bank gold has been double counted and that the central banks are not properly accounting for the gold no longer in their possession.

ISSUES PAPER (RESTEG) # 11

TREATMENT OF GOLD SWAPS AND GOLD DEPOSITS (LOANS)

“14. Regarding the statistical treatment of gold swaps, its treatment should be consistent with that of other reverse transactions, as presented in paragraph 7 above. Thus, swapped gold should be excluded from both reserve assets and IIP (demonetization). This is a logical consequence, and overstating of reserve assets can be avoided. On the other hand, this results in a decrease in the financial assets of the monetary authorities.”

Gold swaps and gold leasing are at the heart of the gold price suppression scheme. For example, the US cannot sell its 8,133.5 tonnes of gold without an Act of Congress, but they could lease or swap it. In 2006 the President of the Bundesbank made an astonishing statement for a central banker: “We have been asked to negotiate with other central banks’ about potential swap deals involving gold.”

Is this stuff hush hush? I guess so. in January 1995, the Federal Reserve’s general counsel, J. Virgil Mattingly, told the Federal Open Market Committee, according to the committee’s minutes, that the U.S. Treasury Department’s Exchange Stabilization Fund had undertaken “gold swaps.” When the GATA camp had Kentucky Senator Jim Bunning inquire Alan Greenspan what that was all about, Mattingly came back and said the Fed testimony was GARBLED … Right…

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