Paul Volker: “Gold Is The Enemy”

JBGJ attended a meeting in NY last night at which Paul Volcker spoke. The fervor with which Volcker repeatedly asserted that gold was ‘the enemy’ during his term as Federal Reserve Chairman was striking.  – John Brimelow, “JB’s Gold Jottings”

That meeting referenced was last night, March 25, 2015.  Over the years Paul Volker has made it no secret that the Federal Reserve has assumed a policy in which it seeks to control the price of gold.  From his memoirs, excerpted by “The Nikkei Weekly” in reference to the dollar revaluation of the dollar by the U.S. Treasury on February 12, 1973 (Volker was the Treasury’s undersecretary for international monetary affairs at the time)  November 2004:

That day the United States announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.    source link

Gold is the mortal of fiat currency and therefore is the mortal enemy of modern Central Bankers.   Fiat currency is the mechanism by which those who are in control of the system suck wealth away from everyone else.

But at some point the natural laws of economics are going to reassert themselves and that’s when the Central Bankers will lose control of their ability to control the price of gold. The disconnect between real wealth and the amount of fraudulent paper wealth issued by the Fed has never been greater than it is now – click to enlarge:

FedBalanceSheetVsGold

Anyone who still believes that Central Banks and Governments do not manipulate the price of gold is probably still inclined to believe in the Easter Bunny or Santa Clause. For everyone who seeks to understand the truth, this admission by then Fed Chairman Alan Greenspan, in testimony to Congress in July 1998 underscores the facts:   “Central banks stand ready to lease gold in increasing quantities should the price rise.”

13 thoughts on “Paul Volker: “Gold Is The Enemy”

  1. The elite had to sell it. The dollar had to gain market traction in its floating context in order for bullion to be reintroduced as a floating currency later down the road. It was but a mere stage setting.

  2. You may want to correct this to read “mortal enemy of fiat currency”: “Gold is the mortal of fiat currency and therefore is the mortal enemy of modern Central Bankers.”

  3. Criminals at work. In collusion with the politicians who give a rat’s ass about the banksters crime. As their salary, pension …. is guaranteed by this central bank FIAT money creation. It’s a complete desaster. Lord…pls help us!!!

  4. Of course no CB initiated manipulation. Noooooo……

    We looked into the abyss if the gold price rose further, as a further rise would have taken down one or several trading houses, which might have taken down the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.
    -Eddie George, Bank of England Governor – 1999

  5. BTW, I notice in recent days, silver has been rebounding more quickly than gold from the 2 to 3 AM EST naked short smashes. Would that indicate the cartel has less control over physical silver than physical gold? Or that the cartel is losing control of silver faster than gold?

    1. Good question. There’s reason to beleive that there’s less silver available for delivery in relation to demand than gold. BUT, it could also just be a sign that the metals are in “bull” mode. For now anyway. Silver has a much higher beta than gold so it tends to move more in either direction. I believe the metals will move higher this year and it’s wny I predicted that silver will be the best performing asset in 2015.

      1. Dave, you might be right wih your silver call. The stock markets are fizzling very quickly now once they go up at the open. BTFD seems to wear out without the funny money coming straight from the FED. I was hoping for a stronger stock market till end of June so the FED would be mislead to raise interest rates which would lead in the end to the worst stock market conditions with a guaranteed crash. But I can live with slowly advancing gold and silver prices too. 😉

    2. The reality is that that there is more above ground gold than silver and even though the extraction volume of silver is 9X that of gold, silver is used up in industrial processes is such small amounts that it is essential lost forever in landfills whereas the vast majority of all gold ever mined still exists. It is fairly obvious, therefore, that the Gold/silver ratio of >70 is absurd. The average 5000 year historical ratio is between 10-15:1. Further, USGS estimates that the planet will run out of accessible silver within a decade, so what will be the price of silver when its strategically important industrial demand exceeds any available supply? At some point silver could become more valuable than gold.

  6. How do we fight the Banksters? Of course buying gold protect our purchase power. Did you know that we can start seceding from banks one individual or family at a time?
    Commercial banks with support of Central Banks suck our wealth through government bonds purchase and fractional reserve banking.
    We are actually part of the problem because when we go to the banks to deposit our savings or take on loans, they create money(fiat currency) out of thin air.
    The Infinite Banking Concept created by Nelson Nash teach us to create our personal banking system using a specially designed whole life insurance focus on money growth, not death benefit. This process offers to us a safer platform to manage our money and give us superior control on our finances and results.

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