Gold & Silver Manipulation: The Biggest Financial Crime In History

Investment Research Dynamics is pleased to present another truth-seeking missile launched by Stewart Dougherty:

This crime is already 285 times bigger than the LIBOR scandal, and 500 times bigger than Madoff’s swindle. It is, in fact, the largest, most destructive financial crime in history.

According to the mainstream financial media (MFM), the biggest financial frauds in history are the Bernie Madoff Ponzi scheme, with roughly $20 billion in net investor losses, and the Bank State rigging of LIBOR, which resulted in 16 guilty banks paying $35 billion in fines, which supposedly equated to their theft.

The MFM have conveniently ignored a far larger financial crime that has been perpetrated for 37 years and counting, and that has netted its orchestrators more than $1,000,000,000,000.00 ($1 trillion) in stolen profits. This crime is so powerful that it can produce fraudulent proceeds of $1+ billion on demand and in minutes, making it unique in the annals of theft. It is a crime that has been committed literally thousands of times since 1980, and is now being committed in the most blatant and brazen manner ever. This crime is already 285 times bigger than the LIBOR scandal, and 500 times bigger than Madoff’s swindle. It is, in fact, the largest, most destructive financial crime in history.

(Cont’d)

As this immensely profitable fraud has been perpetrated, the MFM have bombarded the populace with a propaganda campaign that smears and mis-characterizes gold. Rising precious metals prices are always presented as being ominous, negative and inimical to the people, while declining prices are consistently placed in a favorable light. This propaganda has been carefully crafted and timed so that when massive, coordinated price attacks occur, market observers actually view them as positive market developments and move on, in the belief that all is well and there is nothing to see.

Whenever true prices start to exert themselves, the MFM go into overdrive to demonize and discredit gold. Truly disgracing themselves, which is increasingly difficult for them to do given the depths to which their fake financial journalism has plunged, they have actually published articles calling gold a “Pet Rock,” and in another instance, a “Ponzi scheme.” By the latter’s idiotic logic, all natural elements and tangible goods are Ponzi schemes, too. If you listen to them, milk and eggs are criminal conspiracies also. They know it’s absurd, but they throw the spaghetti against the wall anyhow, to flog the agenda and please their Deep State owners.

Last week, Bloomberg Magazine ran a cover story about a two-bit nobody smuggling meaningless quantities of gold as if this were the gravest threat to humanity in the 21st Century. It was yet another effort to make the gold market look seedy, shady and dirty. The lengths to which they go in order to slam precious metals prove that this is a very important Deep State agenda. And it is, because its purpose is to deflect attention away from the Deep State’s unprecedented financial criminality.

In the late 1970s, oil barons Bunker and Lamar Hunt became interested in the favorable fundamentals of silver. They steadily bought the metal, ramping up its price. The Bank State went short against the Hunts, in size. But buying demand persisted, and by January, 1980, silver had reached a record $49.45 per ounce ($147.68 in today’s dollars) and the Bank State was choking on massive paper losses.

The Bank State did what it always does when the chips are down: it lied, cheated and stole. First, it ordered the MFM to character assassinate the Hunts by labeling them greedy profiteers who were attempting to corner the silver market at what would be an exorbitant cost to society. Which was a deliberate lie. Later evidence proved that the Hunts bought silver based upon extensive quantitative analysis that showed it to be significantly undervalued, just as others throughout history have been attracted to undervalued assets. There was no evidence at all that the Hunts were trying to corner the silver market. But the media onslaught overwhelmed the truth, and set the stage for Act 2.

In Act 2, the Bank State ordered its’ captured, bribed CFTC regulators to change silver futures rules so as to force the Hunts to liquidate their positions. Predictably, silver’s price plunged from $49.45 to $10.80 between January and March, 1980, as a result of the out-of-the-blue, “liquidation only” CFTC mandate. This wiped out the Hunts and bailed out the Bank State of its massive losses, which, of course, was the corrupt point of the exercise.

In the process, the Bank State saw first-hand the enormous profit potential inherent in precious metals price manipulation. And it raced to invent a new form of alchemy that would enable it to make those potential profits go exponential: the transmutation of printed paper and costless, ethereal computer digits into what they would say were the equivalent of physical gold and silver. Honest precious metals price discovery died when the Hunts were cheated and fake gold and silver were invented. The precious metals futures market has been an organized crime scene ever since.

Prior to the Deep State’s successful overthrow and corruption of the metals market, gold and silver reached 1980 highs of $850 and $49.45, respectively. We regard those as legitimate prices that actually would have been exceeded if the free market had prevailed. Fundamental forces were enormously bullish for metals at that time, and have been so ever since.

Using the U.S. government’s inflation statistics, which are deliberately understated and therefore conservative, today’s prices would be $2,510.55 for gold and $147.68 for silver. Therefore, current fake gold and silver prices are roughly $1,300.00 and $130.00 per troy ounce beneath their 1980 inflation adjusted highs, respectively. This is extraordinary given the radical deterioration of monetary, financial, fiscal, economic and geopolitical conditions since 1980. Prices should now be far above the 1980 inflation-adjusted highs, not far below them.

With 5.8 billion ounces of owned physical gold in the world, the $1,300 per ounce price oppression results in an aggregate gold market undervaluation of $7.54 trillion. And with 20.5 billion ounces of owned physical silver in the forms of jewelry, silverware, coins, bars and rounds, the $130 per ounce price oppression amounts to an additional market undervaluation of $2.67 trillion. Combined, this totals $10.21 trillion that has been stolen from the owners of gold and silver worldwide as a result of the Deep State’s price manipulation fraud. This $10.21 trillion amount is an absolute minimum, because for dozens of objective, quantifiable reasons, gold and silver prices should exceed their 1980 inflation adjusted highs by at least two and up to four times. Therefore, the true cost to the global owners of gold and silver is actually in the range of $20 to $40 trillion. The people have paid a staggering price for the Deep State’s precious metals crime spree, as there is no fraud in history whose financial impact even come close to this. Yet the corrupt MFM doesn’t say a word.

From 2009 through 2013, former Goldman Sachs partner Gary Gensler, protégé of (among others) Robert Rubin (former U.S. Treasury Secretary and now Chairman of the Council on Foreign Relations, the embodiment and epitome of the Deep State) and Larry Summers (also a former U.S. Treasury Secretary (put there by his mentor, Robert Rubin), Group of 30 member and a leading Deep State cash elimination mouthpiece), was the Chairman of the Commodities Futures Trading Commission (CFTC). During virtually his entire tenure, the CFTC conducted a so-called investigation into silver market price manipulation. In 2013, the CFTC closed the investigation, saying it had not found any improprieties whatsoever, not even one. According to them, the silver market was squeaky clean.

In 2016, completely without any CFTC involvement, Deutsche Bank admitted that it and numerous other major, international, SIFI (Significantly Important Financial Institution, aka, Too Big to Fail) banks had massively manipulated the silver market for years, including during the entire duration of the CFTC’s fake investigation. A few days later, Deutsche Bank admitted that it and numerous other SIFI banks had also rigged the gold market.

Gensler left the CFTC in early 2014, and went to work for Hillary Clinton’s presidential campaign. In 2015, he was named Chief Financial Officer of her campaign. A Clinton victory was fully expected, and it was understood that Clinton would name Gensler Secretary of the Treasury. (Now do you see how this works?) In that role, he would have been far more helpful to the Deep State than he was in his CFTC role of protecting their $1 trillion precious metals fraud from being exposed or interfered with. In the Treasury Secretary position, the top marching order from his Deep State masters would have been simple and clear: get cash eliminated once and for all, and we will make you richer than you can ever imagine. He would have been all over it.

Cash elimination is the Deep State’s upcoming, Main Event. They will steal far more by eliminating cash than they have stolen to date by all their other frauds, combined. While the rigging of the precious metals markets is currently the largest financial crime in history, it will be left in the dust when they come to steal the dollars, Euros and other fiat currencies that they are working to corral in their monetary prisons. They lurch from one record to another, on the bent and hurting backs of the people.

Trump’s victory threatens to slow down the implementation of their cash elimination agenda, and this is why they are incensed, and will do literally anything to get rid of him. Trump is brave, and in extreme danger the 86,400 seconds of every day. There have never in history been richer, greedier, or more power-hungry character assassins than the Deep State elite. The silver lining is that their evil is now so cancerous and metastasized that it has driven them completely insane, and the insane have a way of destroying themselves before they can destroy the rest of us.

Implications: We know for an absolute fact that precious metals prices are manipulated. (The evidence is absolutely overwhelming, and we would like to offer special thanks to GATA (and now Deutsche Bank) for proving it without a shadow of doubt over many years’ worth of tireless work.) Current prices of gold and silver are therefore fake, and in our view, far below what they would be in an honest market. When the Deep State Crime Syndicate loses control over prices, which could result from any one of a large number of likely developments, true prices will be re-established, a process that was occurring in 1980 and again in 2011 before being sabotaged both times. As fake prices are crushed and honest ones return, a global “herd” buying phenomenon could develop, as has happened in the past. This would lead to significant shortages of available physical metals and a meaningful increase in premiums. History has been clear that when it comes to precious metals, it is always best to buy in halcyon times, particularly if one can do so at a good price. We are not registered investment advisors, and are not providing financial advice. We are simply sharing with you our thoughts, which are born of extensive, independent research. Thank you for taking the time to read this article, good luck and all the best to you.

Stewart Dougherty
March 14, 2017

6 thoughts on “Gold & Silver Manipulation: The Biggest Financial Crime In History

  1. Hi Steward,

    Thank you for this piece you have written. I see things a bit different. To be clear, I write this from a ”system operators point of view” and not from my personal point of view.

    The current monetary system is old, very old. It all started with the Portugese in the year 1450 when they gotten the first real reserve currency status. That one failed,
    just as its successors, the Spanish, French, Dutch, the English and here we are, 567 years later with the Americans having it. The question is, why did they all blow up? All
    were based on a gold and/or to a lesser degree, silver standard after all and not at a fiat regime right? Well, turns out that our concept of money is not in touch anymore
    with ”modernity”. In the 1960 era this was formally acknowledged by the now well known concept of the Triffin paradox. Since then a massive undertaking has started to take place.
    Please stick with me during this explanation I will have to do to make my point.

    Two definitions are important in this discussion. These are from Webster’s Dictionary:

    Currency (1699) 1 a: circulation as a medium of exchange b: general use, acceptance, or prevalence 2 a: something (as coins, government notes, and bank notes) that is in
    circulation as a medium of exchange b: paper money in circulation c: a common article for bartering d: a medium of verbal or intellectual expression

    Money (13c) 1 : something generally accepted as a medium of exchange, a measure of value, or a means of payment

    Understanding all of this money evolution, in its correct context, is vital to grasping gold’s eventual place in the world. A place where it once proudly stood long ago.

    All of this transition is killing off our Gold Bug dream of official governments declaring gold to be money again and reinstitution some arbitrary gold price. Most of the
    death, on that hand, is in the form of leveraged bets on gold’s price as the evolution of gold from official money to a wealth holding bleeds away any credible currency
    pricing of gold’s value in the short run.

    To understand gold we must understand money in its purest form; apart from its manmade convoluted function of being something you save. Money in its purest form is a mental association of values in trade; a concept in memory, not a real item. In proper vernacular; a 1930’s style US gold coin was stamped in the act of applying the money concept to a real piece of tradable wealth. Not the best way to use gold, considering our human nature.

    By accepting and using dollars today that have no inherent value, we are reverting to simple barter by value association. Assigning value to dollar units that can only have
    worth in what we can complete a trade for. In effect, refining modern man’s sophisticated money thoughts back into the plain money concept as it first began; a value stored in your head!

    So you think we have come a long way from the ancient barter system? Where uneducated peoples simply traded different items of value for what they thought they were worth Crude, slow and demanding, these forms of commerce would never work today because we are just too busy, right? Think again!

    Lean back and think of all the items you can remember the dollar price for. Quite a few, yes? Now, run through your mind every item in your house; wall pictures, clothes,
    pots and pans, furniture, TVs, etc… Mechanics can think about all the things in the garage, tools, oil, mowers. If one thinks hard enough they can remember quite well
    what they paid for each of these. Even think of things you used at work. Now try harder; think of every item you can remember and try to guess the dollar value of it
    within, say, 30%. Wow, that is a bunch to remember, but we all do it!

    Still think we have come a long way from trading a gallon of milk for two loves of bread? In function, yes; in thought no! Aside from the saving/investing aspects of money, our process of buying and selling daily use items hasn’t changed all that much. You use the currency as a unit to value associate the worth of everything. Not far from rating everything between a value of one to ten; only our currency numbers are infinite! Now, those numbers between one and ten have no value, do they? That’s right, the value is in your association abilities. This is the money concept.

    Unlike the efficient market theory that was jammed down our throats in school, we all still use value associations to grasp what things are worth to us. Yes, the market may
    dictate a different price, but we use our own associations to judge whether something is trading too high or too low for our terms. We then choose to buy or sell at market
    anyway, if we want to.

    In this, we have moved little from basic barter. In this, we are understanding that an unbacked fiat works because we are returning to mostly bartering with one another.
    A fiat trading unit works today because we make it take on the associated value of what we trade it for; it becomes the very money concept that always resided in our brains from the beginnings of time.

    In this, a controlled fiat unit works as a trading medium; even as it fails miserably as the retainer of wealth the bankers and lenders so want it to be.

    When considering the many references to gold being money in ancient texts, several things stood out. We began to suspect that those translations were somewhat slanted.

    I saw many areas in old texts where gold was actually referenced more in a context of; “his money was in account of gold”, or; “the money account was gold”, or; “traded his
    money in gold”. The more one searches the more one finds that in ancient times gold was simply one item that could account for your money values. To expand the reality of this thought; everything we trade is in account of associated money values; nothing we trade is money!

    I hope you now get that gold was not money, even back then! Let us continue a bit toward our current ”gold market illusion”

    Our modern gold market price illusion is little more than a product of the fiat dollar system; a design that denominates gold credits in a contract form. Is it a free market?
    Why yes, very free. But… TOO free, in the sense that contract supply is totally unlimited. Investors bought into this market even though they fully well knew 90% of the volume was represented by only cash equity on the other side. Knowing that, they somehow expected that those contracts were limited in creation by the fixed amount of gold in the world. Their mistake, not the market’s.

    Clearly, anyone schooled in classic hard money Thought should have known that this was just another gold inflation; a transitory era between money systems. This was a time to gather gold over the years, not invest in the leveraged aspects of gold’s new fiat versions. Nor, to buy into the gold industry that owed its life and cash profits to the maintenance of such a system; transitory as it was. The expanding fiat universe was best used to gather real wealth each time the transactional fiat currency cycled through your domain.

    Anyone that understood this knew that this is how you handle an evolving process. For myself and others, knowing that gold’s inherent value could not change much and was historically undervalued in its comparative value to all things, we bought gold in quantity. We tossed aside Western concerns about shifting currency prices of gold.

    This entire paper-gold trading realm represents the conclusion of a convoluted, decades long attempt by mankind to tie his fiat money concepts to physical gold. These centuries of gold/money tie-ins will end in a colossal breakup of the entire fiat money-plus-gold concept; leaving gold and fiat to trade independently of each other.

    Unfortunately, it’s on the dollar’s watch this will all end as this gold failure is running in parallel to the dollar ending its position as a world reserve currency.

    So there we were in the 1960 era. The knowledge that the system would fail and basically if it did, it would bring another dark age period that would last for centuries again most likely. Or at best, use gold and to a way lesser extend silver hampering human progress we had and still have big time. So it was decided to start the long process to redesign the global currency system. Sadly the Americans were not on board and this was made clear when it was stated ”The Dollar is our currency but your problem” (mr. Connally).

    That is why mr Duisenberg stated when the Euro was created, ”[The Euro] is the first currency that has not only severed its link to gold, but also its link to the nation-state.
    It is not backed by the durability of the metal or by the authority of the state.”. The east fully joined this concept hence the big time buying of gold over there.

    I could go on but this is already an essay on its own (smile)

    This post borrowed (smile) a lot if not most of the text from FOA. You can read it all here http://www.usagold.com/goldtrail/archives/goldtrailone.html

    other great gold reads are here http://www.usagold.com/goldtrail/archives/another1.html and here http://fofoa.blogspot.com

    I warn you, it takes 100ths of hours to digest it all but well worth it!

    Regards, Hugo

    1. What a useless ramble – almost gibberish at the end.
      Nearly ALL World Reserve Banks are buying Gold – NOT selling.
      This means they will at some stage allow Gold to increase in Value.

      Stewarts article is Spot On ! Your ramble contributed SFA.

  2. Hello Hugo: Thank you for your amazing message, which is brilliant, as usual. I have read it three times and will read it a dozen times more, because every time I do so, I learn something new and important.

    A while back, I used to love reading FOA and then FOFOA, and I always wondered who “Another” was. The mysteriousness of Another captivated me. It was as if I was learning directly from an Oracle. So I will pursue the links you have sent … and am sure the information is fascinating.

    I need to think deeply about the thoughtful and important message you wrote. There is so much in it that is hard to know where to start. But let me take a first step.

    In my previous corporate life, I was used as a “Catalyst.” I was sent into situations that had become bureaucratic, bloated, non-creative and lifeless, and my job was to blow them up, to bring the employees out of their comas, to help them create once again, to re-start their engines. It was not a brutal process; it was actually a gentle, humanitarian one. I just happened to have the right instincts about how to do it, and was therefore asked to step in. And I loved doing it, because it was very rewarding to help people who had become complacent rediscover their fire.

    Now, I look at the world, and see so much financial suffering, so much of which seems completely needless to me. And I ask myself, “What has gone so terribly wrong? Why is there so much poverty in our world? Why do so many people work so hard and yet get nowhere? Is there something that could help bring them up from the difficult, in many cases seemingly hopeless places where they are?”

    And I think to myself, it is the corrupt currency system that enslaves them. And that if they would simply take back their money from the profiteers that have stolen its value from them, they would have a true foundation upon which they could rebuild their lives.

    To me, the most important single thing they could do is to take back their money. Which they could achieve by doing an incredibly simple thing: “Just Buy One.” Just one ounce of silver, or one ounce of gold, and of course more if they could. If they simply traded out of dishonest fiat currency, and into timeless, honest money. And in so doing, they harnessed the power of money for themselves, as opposed to surrendering the power of their work, time, energy and life forces to the fiat currency profiteers who steal it from them and give nothing back. And if they did this en masse, the tradeable value of that honest money would have to rise by multiples, helping to lift them up and open up their opportunities.

    To me, when people experience the real value of money, as opposed to the corrupt non-value of paper designed to cheat them, they become more financially astute and alive. They actually think differently about their opportunities. I have seen this first hand, and it is a wonderful thing.

    This is why I write. Because while it might sound naive and simplistic, I believe in my heart and soul that the best opportunity the people have to improve themselves financially is to take back their money from the profiteers who have stolen it from them.

    Your messages are rich and beautiful They make me think, and for that, you have my profound gratitude. Perhaps with this message, I help you understand my ideals and dream. I might be 100% wrong. Perhaps there is no way for the mass of humanity to ever escape their financial slavery. My dream is that they can. I look at the Chinese government’s 2004 campaign, “Storing gold with the people,” in which the government took to the airwaves and repeatedly advertised to the people their recommendation that they buy gold. China wanted to unleash the Power of the People to buy gold with whatever currency they might have, so the people would be enriched when the fiat currency system is reset.

    What a humanitarian government initiative, to deliberately seek to financially help and protect your people. Of course, the Chinese people listened, believed and bought gold by the millions of ounces. In the meantime, the governments of the west have deliberately educated their people in financial ignorance and stupidity. When times get bad, these people are going to be in a very difficult place.

    To me, it would be wonderful if not just the Chinese people, but the citizens of the world were shown how to financially protect themselves, and then rise up by their talents and aspirations, with the full support of an honest money that would be by their side to help them, as opposed to fraudulent, dishonest currency that does nothing but drag them down.

    These are just some initial thoughts. I will think much, much more about your extraordinary message.

    Thank you again for writing, Hugo, you are an inspiration to me.

    Best regards, Stewart

  3. They only make money by manipulation not by production , stealing , stealing nothing else. It looks from outside like sleeping volcano , but the pressure is increasing.
    People maybe only looking now , but they getting very angry and one day we will see supernova explosion.

  4. As long as the largest oil export nations continue to maintain an insignificant amount of gold reserve, the dollar is safe for now. Saudi only has around 330 tons and it’s probably kept in either London or New York. Venezuela decided to repatriate its gold back to the motherland only to lose it a year later plus some 30 tons.

    http://www.tradingeconomics.com/venezuela/gold-reserves

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