The Golden Ostrich

Mon, Aug 19, 2013 - 7:57pm

In the world of precious metals investing there exists an interesting creature known as the Golden Ostrich, or Manipulus Denego. This creature is characterized by its fixed opinion that anyone claiming the price of gold and silver are manipulated is an overexcited nutcase, and must be largely unhinged from reality. Obstreperous in the extreme, the Golden Ostrich is utterly convinced that claims of manipulation in the metals markets deserve to be ridiculed at every opportunity. Its most distinctive behavior is its propensity to bury its head in the sand when presented with evidence contrary to its belief that precious metals prices are determined solely through voluntary exchange within a free market.

There are two primary camps in the world of precious metals investing: those who believe that precious metals markets are routinely manipulated (and who are astounded that anyone would think otherwise) and those who hold that precious metals markets are more or less freely traded and act like any other commodities markets (and who laugh-off claims of routine manipulation or price suppression as overheated nonsense). This topic is the PM world’s version of the famous feud between the Hatfields and the McCoys. Those in the “freely-traded” camp often deride those in the manipulation camp. They will cast aside claims of price suppression as merely sour grapes from amateur traders who were overly bullish and got smoked by routine market fluctuations. They will deride claims of suppression as the ravings of conspiracy theorists. Sometimes, those who argue against manipulation will craft a more sophisticated denial based on the nature of complex systems, as in this Zerohedge article by Jeff Thomas (link), wherein he essentially argues that so many different actors in different nations would have to be involved that such suppression would be impossible (never mind that we have a proven historical example of just this type of cooperation in the London Gold Pool affair, thus disproving his central thesis- we’ll get to that later). Needless to say, those in the suppression and manipulation camp are equally baffled that anyone could deny what seems to them to be quite evident and obvious.

The thesis of this article is simple: a reasonably open-minded person, when presented with a basic overview of evidence publicly known to date, would reach the common-sense conclusion that precious metals are routinely suppressed and manipulated. As a corollary, I believe that people denying this to be the case either are simply unfamiliar with the evidence and the historical record, and thus are ignorant of significant portions of the case, or have a specific reason or vested interest in not placing themselves in the “manipulation and suppression are real” camp. In short, given the totality of the evidence any open-minded individual honestly considering the question would necessarily conclude that manipulation is highly likely in the precious metals markets. Alternatively, any explanation attempting to deny manipulation in the face of this evidence would have to posit such a convoluted scenario as to be unlikely in the extreme.

Now let’s stipulate right up front that the people involved in this are not stupid; there is no one “smoking gun” document where Ben Bernanke signs an order to Jaime Dimon ordering him to crash the price of metals and providing leased Fed gold to sell into the market to cover deliveries. If there were, we would be seeing some very powerful people doing a Perp-walk for breaking multiple laws and market regulations (well, actually in this day and age, we wouldn’t- but that is another article entirely). But what we do have is a long and surprisingly clear trail of evidence that, in its totality, makes it stunningly unlikely that this is NOT taking place. Western governments and central banks have the Means (access to western nations gold hoard, bullion bank leasing), an exceptionally strong Motive (to support Dollar, Euro, etc. despite printing, yet keep bond prices low so cost of borrowing doesn’t bankrupt the system), a Prior Record (London gold pool), have made Public Statements Admitting both the Crime and the intent/recommendation to commit the crime in the future, and these actions are indicated in the present time by ample Market Evidence (clearly manipulative market movements).

1. Western Central Bank manipulation of the price of gold is an established fact

The London Gold Pool was a group of Western central banks who got together in 1961 for a single purpose- to hide the effects of their excessive monetary expansion through the deliberate manipulation of the price of gold. If the free market forces of supply and demand would have been allowed to function, the sharply rising price of gold would have sent a clear signal to markets and to savers that their governments were quietly confiscating their saved wealth through the devaluation of the currency denominating their investments and savings. The members of the London Gold Pool and their initial gold contributions in tons (and USD equivalents) to the gold pool and percentages were as follows, and from these percentages can be inferred the degree of control and involvement of the various countries:[1]

  • United States, 50%, 120t ($135 MM)
  • Germany, 11%, 27t ($30 MM)
  • United Kingdom, 9%, 22t ($25 MM)
  • France, 9%, 22t ($25 MM)
  • Italy, 9%, 22t ($25 MM)
  • Belgium, 4%, 9t ($10 MM)
  • Netherlands, 4%, 9t ($10 MM)
  • Switzerland, 4%, 9t ($10 MM)
  • The London Gold Pool operated for 7 years until 1968, and only fell apart when France decided the US was printing money too fast (in relation to France) and was gaining an unfair advantage, so they withdrew and only then did the episode slowly became public knowledge. Please note that in the aftermath of the failure of this conspiracy (and it was quite literally a conspiracy, as the actors were secretly conspiring together to suppress gold price), Nixon was forced to take the US off the gold standard. In the nine years following this action, gold rose from 35$ an ounce to a high in 1980 of 850$/ounce, a stunning 24 fold increase. In his book "Gold Wars", Swiss banker Ferdinand Lips wrote:

    "It was decided to keep the gold pool secret at the time. Keeping with traditional practices at the BIS meetings, not a scrap of paper was initialed or even exchanged; the word of each governor was as binding as any contract". (Lipps, Gold Wars, 2001: pg 53)

    So here are the clear takeaways from this episode: Western central banks are proven to have suppressed gold price. They are proven to have successfully conspired together for many years, despite the large number of actors and varying interests involved. The entire thing was kept so secret that not a single shred of documentary evidence was left, and this secrecy was a matter of policy as none of the actors involved wanted to run afoul of their countries market laws and regulations. Finally, when market forces were allowed to reassert themselves, gold increased by a factor of 24 from its “officially established” price- which both indicates what happens when such a scheme collapses, AND provided ample reason for future central bankers to fear allowing gold to reach its fair market value during times of intense monetary expansion.

    “Well”, quoth the Golden Ostriches, “That is ancient history, what I really meant to say was that Central Banks do not manipulate the price of gold in the present.” OK then, let’s examine the evidence for this by first establishing Motive.

    2. It is an established and well publicized policy of modern Keynsian Monetary Theory that gold price must be suppressed, particularly if central banks wish to rapidly expand the money supply.

    Former Secretary of the United States Treasury (and possible new Fed chief) Larry Summers wrote a well-known article on the subject of gold price and the motive centrals banks have to manipulate it. Back when he was a professor of Economics at Harvard, Summers and colleague Robert Barsky published “Gibson’s Paradox and the Gold Standard”. In it, they argued that gold is a powerful competitive currency that, if allowed to function in a free market, determines the value of other currencies and influences interest rates and the value of government bonds.[2]

    Please note an important implication of Summers article: that governments and central banks could achieve their “ideal atmosphere” of low interest rates and strong government bond prices by controlling the price of gold, but they could only do this by intervening in the “free market” as a deliberate matter of policy. Gold that achieves its “fair, free-market value” is a clear threat to the single greatest tool in the Keynsian toolbox- the ability to print.

    3. Western Central Bank personnel have publicly admitted that leasing gold into the market is standard practice, and that many western nation’s CB’s do this

    Senior management at the Bank of England have publicly admitted leasing gold into the market on a regular basis to meet benchmarks and support BoE policy, and note that many other central banks do so, as well. “But that’s just crazy talk!” you say? Well take it up with Mr. Graham Young, Senior Manager of the Foreign Exchange Division of the Bank of England.

    Like many other central banks, whether or not they have the reserves on their own balance sheet, our day-to-day management of the gold holdings in the reserves is aimed at achieving a return on them by lending a portion to the market. As is increasingly common amongst central banks, we have a strategic benchmark for this gold lending portfolio, in our case set by the Treasury. The Bank is able, subject to market and credit risk limits, to adjust the maturity distribution of the actual portfolio, relative to that of the benchmark, in search of additional returns. The return on the actual portfolio relative to the benchmark measures the value that the Bank has been able to add by this ‘active management.” [3]

    Well, certainly these are just routine “in-and-out of the market” operations to generate a little scratch for the always cash-poor central banks, right? Surely they keep above-board public records of such routine and harmless activities and welcome scrutiny, right? Errr, no. IMF documents show that when they attempted to get Central Banks to be above-board about their gold holdings and sales, the proposals were met with vociferous opposition and outright refusal by the central banks.[4]

    4. Outright admission by a Fed Chairman that the Fed was actively suppressing gold price as a matter of policy.

    Arthur Burns was Fed chairman from 1970 to 1978. On June 3, 1975, Burns wrote a letter to President Ford about surreptitious efforts by the Fed to suppress the gold price. This letter is available from various sources of declassified U.S. government records and is posted at GATA's Internet site. Burns told the president: "I have a secret understanding in writing with the Bundesbank, concurred in by Mr. Schmidt" -- that's Helmut Schmidt, West Germany's chancellor at the time -- "that Germany will not buy gold, either from the market or from another government, at a price above the official price of $42.22 per ounce." Burns added, "I am convinced that by far the best position for us to take at this time is to resist arrangements that provide wide latitude for central banks and governments to purchase gold at a market-related price." Please note: the chairman of the Fed in 1975, four years after the dollar was disconnected from any formal convertibility into gold, told the president that the U.S. government should discourage market pricing of gold.[5]

    5. Outright admission by a Fed Chairman that the Fed was actively suppressing gold price as a matter of policy, Part II:

    Former Fed chair Greenspan himself wrote in a formerly confidential report that "Monetary authorities in the United States ... have maintained the stability (and primacy) of the dollar in the international currency structure by standing ready to buy gold from, and sell it to, foreign monetary authorities who either need or acquire dollars for exchange purposes".[6]

    6. Outright admission by a Fed Chairman that the Fed was actively suppressing gold price as a matter of policy, Part III:

    Greenspan, while he was the sitting Chairman of the US Federal Reserve, also publicly admitted to the US congress in 1998 that “Central banks stand ready to lease gold in increasing quantities, should the price of gold rise.” In other words, if gold prices go up, the central bank will make sure they come back down. The Fed has publicly admitted as much.[7]

    7. Market movements today that are suspicious, or irrational, or in some cases totally unexplainable absent deliberate manipulation.

    Traders could write volumes about this: How major drops occur on “news” items that are, at worst, mildly bearish without corresponding rises when those “news” items prove to be unfounded. How large batches of shorts magically appear when gold or silver are about to cross above significant technical thresholds. How massive numbers of short contracts are dumped in thinly traded holiday markets at a time when best execution of these trades is impossible given the low volume flows, and when no ordinary profit-oriented entity interested in maximizing profit would do this absent deliberate intent to manipulate price. But one instance stands out above all others, in my mind- the “gold standard”, if you will, of deliberate manipulative price suppression.

    September 6, 2011.

    Gold had been on a stunning three year ride, moving from under $800 in September of 2008, to above $1900 in September of 2011. The unprecedented monetary expansion undertaken in the aftermath of the 2008 financial crisis had started an international game of competitive currency devaluation, and gold had performed its role as “barometer of the soundness of currencies” admirably. Indeed, in the western world only the Swiss Franc had stood with gold as a genuine “safe-haven” currency. Well, the Swiss came to believe that the ongoing strength in the Swissie was increasingly untenable, and they resolved to announce that they were pegging the Swiss Franc to the Euro and stood ready to buy as many Euros as it took to defend this level. In short, they were devaluing their currency, and this would have left gold in position as the sole safe-haven left in the world… and that just couldn’t be allowed.

    On the morning of September 6, 2011, traders all over the world watched their screens as gold climbed higher towards $1920 per ounce. It was known that the Swiss government was going to make an important announcement at what was 3:00am Eastern Standard Time, and the press had prepared the public with hints that the Swiss were going to devalue. Five minutes BEFORE the Swiss announcement – just five minutes prior to an enormously gold-bullish announcement that would have had traders everywhere frantically buying and likely would have fueled gold past the headline grabbing $2,000 per ounce level – tons of paper gold were dumped on the market and gold price was rocked for an 80$ loss in a matter of minutes.

    Everyone watching was shocked at the action (supposing that someone was front-running a Swiss announement that no, they weren’t going to devalue), and then were even more confused when the Swiss did in fact announce the Euro peg. But no matter: the massive pre-emptive strike confused gold traders and completely diffused what was assuredly going to be new all-time highs for gold.

    Don’t believe me? Here is the chart of the Swissie showing the precise moment at 3:00am when the announcement was made.

    Now here is the gold chart- note the massive dump five minutes BEFORE the announcement.

    This was not some insider front-running the news, because the actual announcement was wildly gold-bullish, not bearish. Nope, this was some insider deliberately drowning what was shaping up as a massive rally in gold at an important technical level BEFORE the news was released. I dare anyone to explain this market action absent manipulation.

    Hinde Capital CEO Ben Davies put it well in an interview afterward: "Why was it selling off just ahead of a really bullish announcement? You have to believe that there was some coordinated action. ... The central banks will all have been in on knowing ahead of time that the Swiss were going to announce this. So there was central bank selling because they really didn't want the price of gold to skyrocket on what is incredibly bullish news for gold."[8]

    . . .

    As professional money managers, traders, investors, and the gold-buying public becomes more aware of the information presented here, one would think the Golden Ostrich would eventually become an endangered species, yet still they persist. Ironically, the Golden Ostrich often likes to claim the mantle of the “rationalist” in the debate, pooh-poohing assertions of manipulation as far-fetched conspiracies fed to the gullible by hucksters of the PM world. And yet which side are the rationalists here? Think about what one has to believe, and to disbelieve, in order to claim that manipulation is a fallacy:

    1. One would have to believe that western central banks and governments have indeed conspired to suppress gold prices once (London Gold Pool), but would never, ever do such an underhanded thing again and certainly are not doing it now… despite the fact that this policy is central to mainstream (Keynsian) economic literature. Indeed, the need to “support the currency” becomes even more acute during times of stress (which these Central Banks have resolved to address through money creation and low interest rates). In other words, one would have to claim that central banks have an exceptionally strong motive to suppress PM’s, but aren’t doing so now, even in the wake of the financial crisis of 2008… a crisis many within their own circle have described as “existential” and deserving of extraordinary measures.
    2. One would have to believe that western central banks and governments have the means (each nations gold hoard) and that top bank officials have explained that it is routine to lease this gold into the market, BUT they never, ever do this to influence price.
    3. One would have to acknowledge that multiple former Fed Chairs have either stated that gold price should be suppressed to support CB or governent policy, or have outright stated publicly that the Fed would indeed control the price of gold if needed, YET one would have to insist that they aren’t doing it now.
    4. Finally, one would have to acknowledge multiple movements of price that would be stunningly unlikely and highly unprofitable for the perpetrators of these movements absent central bank intervention.

    How likely are these things? What does it say about those who continue to insist they are the rationalists in this debate?

    I believe it would be incredibly strange that any fair and open-minded individual, viewing the totality of the evidence dispassionately, would come to the conclusion that gold and silver are not manipulated and that the price is set by free market forces alone. What does this mean for you and me? It means we can still buy gold and silver today at artificially low prices. It also means that this condition will not last forever.

    Keep stacking. For God’s sake, keep stacking.

    About the Author


    El Gordo
    Aug 19, 2013 - 8:11pm

    Slow day?

    Must be.

    Aug 19, 2013 - 8:11pm


    and when they loose control of the game we at this site with stacks large and small will once again say..."first"

    Stack on

    Aug 19, 2013 - 8:12pm

    Evangelical piece


    Thanks for such a thorough job in documenting the history and current manipulative actions. I am book marking this page so that, at the right time, I can disseminate to a broader circle who will be receptive to such information. A fantastic tool to enlarge our community who have woken up from the matrix.

    Aug 19, 2013 - 8:25pm

    I read it and I'm still fourth?!

    Great post Pining!! Thanks!

    Aug 19, 2013 - 8:26pm


    Pretty freakin' awesome! Thanks!

    John Galt
    Aug 19, 2013 - 8:41pm

    Thanks Pining

    I thoroughly enjoyed reading that. What you wrote about the London Gold Pool was especially interesting, and it prompted me to look up more on it.

    I hadn't realized that even the Queen of England was involved in the declaration of a bank holiday on short notice.

    For a barbaric relic the thought of freely traded gold sure seems to give panic fits to TPTB.

    Aug 19, 2013 - 8:42pm

    Nice P4

    Great write-up! P4

    A call out to Boatman...I think I remember you posting about "green dentist"..and certain bacterial build up on the jaw bone.

    I hope you could forward a link or point me in a direction to find more info,



    Aug 19, 2013 - 8:48pm

    excellent article

    It is nice to see Ferinand Lips referenced. He was a giant in the gold industry.

    I will be forwarding this article to a few fence sitters I know


    Aug 19, 2013 - 9:02pm

    Spanish skyscraper missing elevators in monster goof:

    What goes up must walk down. In what will surely go down in history as one the greatest architectural blunders, the town of Benidorm in Alicante, Spain, had almost completed its 47-story skyscraper when it realized it excluded plans for elevator shafts. Despite its name, the InTempo skyscraper was, seemingly rushed through the blueprint process, and its attempted message of prosperity through the country's economic tumult has become one that is more fitting to the current state of things in Spain as a whole. As El País headlines, "InTempo, an incompetence of high stature," the construction of the massive building has been plagued with problems beyond the oversight of being inaccessible. The construction was initially funded by the bank Caixa Galicia, but as of December 2012, financing for the project was taken over by Sareb, which is "known as the bad bank" in Spain. The construction of the massive building has been plagued with problems beyond the elevator shaft oversight. The bizarre nature of the practices put in place in the construction of InTempo doesn't stop at bad banks and missing elevator shafts. The initial backer of the project, Caixa Galicia, stopped paying workers for four months around the time it realized — after about 23 floors had been completed — that a service elevator hadn't been installed for the 41 workers who had been hauling materials up 23 flights of stairs.
    Aug 19, 2013 - 9:09pm

    Great Post!

    Thank you.

    Aug 19, 2013 - 9:52pm


    Long time, no see...nice seeing you riding back into town.

    Green Lantern
    Aug 19, 2013 - 9:59pm

    Wow Pining!  That is a world

    Wow Pining! That is a world class, well researched article!!! You are the Shnizzit. That is as well written and researched as any I've seen on ZeroHedge, GATA or anyplace else on the subject. Let me know if you need a literary agent to help you negotiate all the offers that will be coming in.

    Be Prepared
    Aug 19, 2013 - 10:03pm

    DPH - Moseying on in...

    DPH... I have been riding the long trail moving them doggies as fast as I can.... and, finally, brought them all into Dodge City and I can, at last, kick up my spurs.

    Redwood... I'm glad to be able to come back after a whirlwind run at some work opportunities... the family is great and hope all is well on your end!

    Aug 19, 2013 - 10:04pm


    Where have you been??? Hope all is well with you and family. Good to see you.

    Great post Pining as always.

    I've posted this twice already, but just gives juice to your post.

    Be Prepared
    Aug 19, 2013 - 10:04pm


    Pining... love the compilation of the all the detail with your thoughts about the gold price suppression scheme by the central banking system. There are numerous factions that continue to say that it's merely conjecture or market forces driving price discovery because it helps fulfill their normalcy bias about the true state of the world economy. Few people want to see the facts stated by TPTB which clearly tell the whole world that they will do whatever is required to maintain their control and supremacy at all costs regardless if those actions bring inflation and increasing poverty.

    I keep waiting for those mechanisms to fail them, but I have come to learn that there are more games and attacks available to TPTB than I ever thought possible. I would love to see clarity and the markets unhindered by those controls, but I wonder if the day will truly every come. I know that it will eventually because the law of exponential numbers will reach a point of real criticality that should and will overwhelm those controls. The tipping point for unsustainability seems to be a moving target when the few want the game to continue to the detriment of the masses. Thanks for putting together a great post!

    Aug 19, 2013 - 10:08pm

    After rereading your article

    After rereading your article Pining, I just have to say it. This site is just filled with amazing minds.....extraordinary really on such a small screen, all for your viewing.

    Aug 19, 2013 - 10:12pm

    I hope P4 doesn't mind...

    ...a short news blast on here. I'm a bit overdue and additional reading material and surfing is never a bad thing.

    Take note of Buffet's unreal BOA profit in that one vid. Wow!

    It's been my opinion that when he exits that trade that the market is a couple or few months away from getting creamed. I'm not sure if he's completely out of BOA right now.


    Gold Is Money, Get Over It - Cullen Roche, Pragmatic Capitalism

    A Gold Bear Makes the Bull Case on Gold Prices - Jeff Reeves, MarketWatch
    Why It's Hard To Be Emphatic About Price of Gold - Bill Fleckenstein, MSN
    The "Reach for Yield" Is Now Reversing Itself - Megan McArdle, Bloomberg
    Bet Against Bill Ackman, Make Lots of Money? - Jim Cramer, TheStreet
    Apple's iTunes Radio: Dangerous Monkey Wrench - Victor Luckerson, TIME
    Liquor Stores Going Way of Bookstores? - Maria LaMagna, MarketWatch
    Hey Jeff Bezos! Sorry, But You Didn't Build That - James Pethokoukis, AEI
    To Solve Retirement Crisis, Look To Australia - Richard Eisenberg, Forbes
    The New German Question - Timothy Garton Ash, NY Review of Books
    Decision Time for the Global Economy - Michael Spence, Project Syndicate
    Stamford, CT Boat People vs. Ray Dalio's Hedge Fund - John Carney, CNBC

    A Sobering (Scary?) Gut Check for the Market - Shawn Tully, Fortune
    Sell the Rallies, Stay Bullish on the Longer Term - Jeff Saut, Minyanville

    What's Behind Treasury Market Weakness? - Acting Man
    Are Stocks Cheap Or Pricey? Have A Crystal Ball? - The Big Picture
    10 Best Stocks To Buy In Buffet's Portfolio - Jon Ogg, 24/7 Wall Street

    Fannie & Freddie's Profits: An Economic Disaster - Matthew Yglesias, Slate
    Low Rates Haven't Helped Housing - Robert Samuelson, Washington Post
    Tech Industry Is In a Surprising Slump - Chris O'Brien, Los Angeles Times
    Sorry Allan Sloan, Gov't Didn't Create the Internet - John Tamny, Forbes
    He Made Apple, Apple: iChat With Steve Wozniak - Jada Yuan, New York
    How to Get Hired In China: The JP Morgan Case - Evan Osnos, New Yorker
    Who's the Better Investor? Buffett or Icahn? - Terry Keenan, New York Post
    Overdone Optimism of Earnings Forecasts - Jeff Sommer, New York Times
    Why the Weak Dow Jones? Slowing Earnings - Thomas Kee, MarketWatch
    Our Infatuation With Stocks Wasn't a Forever Thing - Kopin Tan, Barron's


    A Too-Humble America - John O'Sullivan, Globe and Mail
    The Egyptian Debacle - Roger Cohen, New York Times
    Islamic Insurgency Looms for Egypt - Eric Trager, The New Republic
    We've Just Seen Britain's Sinister Side - Nick Cohen, The Spectator
    The Resource Crisis Spurring Egypt's Chaos - Nafeez Ahmed, The Atlantic
    Dictatorship Returns to the Nile - Der Spiegel
    Europe's New Anti-Semitism - Riccardo Dugulin, Ynet News
    Reopening the Mideast Pandora's Box - Andrew Gawthorpe, TNI
    How Will Putin Respond to Obama's Diss? - Alexander Golts, Moscow Times
    Germans See No Reason to Change - Michael Hessel, New Statesman
    Al-Qaeda's Strongest Weapon in Yemen: Drones - Joseph Cox, Vice
    Welcome to Greece's Guantanamo - Alain Salles, Le Monde/Worldcrunch

    Egypt: The Storm Before the Storm - The Economist
    Egypt's Generals Can't Ignore the West Forever - Daily Telegraph
    Egypt: Take the Long View - Christian Science Monitor
    David Cameron Is Gambling on Germany - The Guardian

    Hold Our Noses and Back Egypt's Military - Leslie Gelb, The Daily Beast
    Obama on Egypt: The Clueless Presidency - Jonathan Tobin, Commentary
    Egypt No Longer Matters - Bobby Ghosh, Time
    A Failed Attempt at Intimidation - Glenn Greenwald, The Guardian
    Putin Driving Russia into Economic Oblivion - Kim Zigfeld, PJ Media
    An End to Russia-Japan Dispute? - J. Berkshire Miller, The Diplomat
    Angela Merkel, Queen of Europe - Daniel Johnson, Daily Telegraph
    Egypt's Dilemma - Amir Taheri, New York Post
    Cairo Massacre Isn't Egypt's Tiananmen - Matt Schiavenza, The Atlantic
    How Obama Got it Wrong on Egypt - Patrick Smith, The Fiscal Times
    Egypt United Only in Contempt for U.S. - Mark Steyn, National Review
    A Pessimistic Survey of Iraq Protests - Aymenn al-Tamimi, The National
    China's Newest Political Prisoner - Hua Ze, New York Times
    Africa's Monitors Must Call Out Zimbabwe - Jeff Flake, Washington Post
    The Internet Won't Survive Unless We Defend It - John Negroponte, CSM

    Aug 19, 2013 - 10:15pm

    This is why I come here!

    Great write up sir!!

    ( thought I was reading a piece penned by the TF himself!)

    I been thinking about the idea of the affect we as an individual have on the ones who are around us. The idea that we affect persons 3 places removed from ourselves... you teach your friend something, they share this with a friend of theirs (that you may not even know), and then again, one step further, that person will often teach the idea to yet another person... that you have never met.

    What traits, skills, or knowledge would you think of benefit to share with your family, friends, and neighbors?

    What benefits might sharing such skills as, say, Gardening have for folks in your area?

    Or ideas and lessons learned about saving/ investing?

    Nay say'ers can gripe all they want. Topics such as these are illuminating and insightful. We may not have these concepts perfected, but in the face of constant dis-information and self gratification advocated by the media and others, Stand up, share what you have learned. Knowledge is worth very little if not shared with others.

    In the time of true need, sowing such wisdom and patience into our communities may indeed be one of the greatest investments any of us could ever make!

    Aug 19, 2013 - 10:16pm
    Aug 19, 2013 - 10:27pm

    Harvey's Up!

    • Gold Core: Gold was up 4.60% and silver surged 13.3% for the week. Silver is up eight sessions in a row and is headed for the longest daily rally since March 2008 [DS: They made sure it closed slightly in the red today].
    • GoldCore on GOFO: Negative 1, 2 and 3 month GOFO rates mean that bullion banks lent their customers, including other bullion banks, gold to obtain a positive return, thereby increasing the "paper" gold supply. Some may now may be struggling to get their gold back which may explain the significant decline in Comex gold holdings of certain bullion banks. This is creating significant supply demand issues in the physical gold market which should lead to higher gold prices.
    • GoldCore on Comex: In the futures market, hedge-fund managers and other large speculators increased their net-long position in New York gold and silver futures in the week ended August 13, according to the U.S. Commodity Futures Trading Commission data. The potential for a short squeeze remains high. Dollar, euro and pound cost averaging into metals positions remains prudent. This is especially the case as we are soon to enter the seasonally favourable autumn months.
    • Peter Hambro: There’s a real risk that the people who’ve sold 'paper gold’ won’t be able to deliver and there will be some official ruling that will settle all the bargains at today’s price. Something like that will happen.
    • David Korowicz : David Korowicz explores the implications of a major financial crisis for the supply-chains that feed us, keep production running and maintain our critical infrastructure. He uses a scenario involving the collapse of the Eurozone to show that increasing socio-economic complexity could rapidly spread irretrievable supply-chain failure across the world.
    • Bill Haynes (via King World News): (We are seeing) continued solid buying, and premiums remain strong. 90% (junk silver) is still in short supply. The basic silver bullion products, 100 ounce bars, 10 ounce silver bars, and silver eagles, those are the silver buyers’ favorites. Silver is hot, no doubt about it.
    • Dan Norcini: Right now the market is firing on all cylinders. The same thing is true for silver. You (also) had (large) short covering on the part of the hedge funds in silver.
    • Bill Holter: I have a question for you to ponder, if a government "mark up" of the price of Gold had been decided on already...would JP Morgan be... A. short, B. long, C. really long, or D. really REALLY long and have the Gold market cornered? A no brainer right?
    • CNBC: China may be exaggerating the size of its economy to the tune of $1 trillion by releasing "willfully fraudulent" inflation and GDP [gross domestic product] data, according to a study out this week.

    All this and more on...

    The Harvey Report!


    wooden nickel
    Aug 19, 2013 - 10:28pm

    bids for pining's first book starting...

    outstanding pining! anyone who wants the documentation of manipulation as a matter of government policy, visit it's all laid out there.

    Aug 19, 2013 - 10:30pm

    This seems pretty significant...and quiet so far

    Encrypted computer files seized from David Miranda 'were from US whistleblower’

    Police who detained the partner of a journalist under anti-terrorism laws seized encrypted computer files from the American whistleblower Edward Snowden, it was claimed tonight.

    Go to linked story >>> Here <<<

    Aug 19, 2013 - 11:07pm

    Awesome work P4

    I will definitely be passing this article on. Well written well documented and appreciated. Hope this makes it way around the interwebs. Well done!

    Aug 19, 2013 - 11:27pm

    P4 - You have done a

    P4 - You have done a remarkable job. Very impressive.

    There are only 2 ways for them to replenish their stacks - either buy it (resulting in tremendous price rises) or confiscate it.

    The third option is that they are intending to allow the stack to go to zero with the intent of having rid the system of any gold related influence by the time they run out. From that perspective - their interventions are simply designed to buy time.

    So there are 3 potential outcomes to all of this:

    1. Central Banks rebuild their stacks by aggressively buying gold.

    2. Central Banks confiscate gold to recapitalize

    3. Central Banks are all in with the idea that they can successfully remove gold entirely from the system.

    Aug 19, 2013 - 11:27pm

    A fantastic..

    documentation of banker conspiracy. You have proven with overwhelming evidence that they had the means, motive and opportunity.

    + 10

    John Galt
    Aug 19, 2013 - 11:30pm

    In the News Today - Canadian Parliament Prorogued

    Canadian Prime Minister Stephen Harper announced today that Canada's parliament will be prorogued until the middle of October.

    What this means is that instead of returning from summer holidays on September 16 the federal government will keep themselves off the job until at least after the Canadian Thanksgiving.

    Given all the turmoil that's happening politically and economically in the world right now, one has to wonder why, and why now?

    Aug 19, 2013 - 11:34pm


    1. Central Banks rebuild their stacks by aggressively buying gold. (they can just markup what they have left)

    2. Central Banks confiscate gold to recapitalize (from who?)

    3. Central Banks are all in with the idea that they can successfully remove gold entirely from the system. (they would like to try, to many really rich people own Gold)

    The problem for the Western banks is that the Eastern nations will bring Gold back into the system, making their fiat completely worthless.

    Urban Roman DeaconBenjamin
    Aug 19, 2013 - 11:51pm

    Forty Seven Flights of Stairs

    Maybe they can just keep those construction cranes on top, and lift people up to their floor in a basket.

    Do the windows open?

    Response to: Spanish skyscraper missing elevators in monster goof:

    Nigel Black
    Aug 19, 2013 - 11:53pm

    @John Galt

    Yes, one has to wonder why Canadian Prime Minister Stephen Harper prorogued parliament until October 2013. Given all that is going on (and about to happen), his timing is quite suspect.

    BTW, my wife cornered our MP (conservative) about the "bail in" provision in the recent Canadian budget. She was told that our financial system is sound and that she has absolutely nothing to worry about. "Bail ins", according to our MP, does not mean confiscation of depositor funds (yeah right) and that our bank deposits are fully protected.

    When she asked about having the legislation rewritten to reflect what he just told her, he said he would get back to her on it. That was 2 months ago. We are still waiting to hear back from him.

    Needless to say, we are not holding our breath...

    John Galt
    Aug 20, 2013 - 12:03am

    @ Nigel

    Yeah, the financial system is sound and we have nothing to worry about.

    Why, then, is there need to write "bail-ins" into law?


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