Tag Archives: BIS

SoT Ep 26 – Chris Powell: “Gold Is The Deadly Threat To All Governments”

We open this podcast with Charlie Chaplin’s speech from “The Dictator.“ It is one of the most powerful speeches ever given. It ranks with the likes of Dr. King’s “I have a Dream” and a handful of other truly great speeches that were designed to uplift the spirit, free the mind and announce to the world we are all sovereign human beings created to do great things with our lives.

For over 15 years, Chris Powell – the co-founder of GATA – has been in the trenches exposing the corruption deeply embedded in our financial and political system. Chris has been a staunch promoter of free markets and reduced Government power. The cornerstone of democracy and true freedom begins with honest money. Gold stands alone a honest because it does not rely and counterparty risk and it can not be printed and devalued.

Because of this inherent nature in the use of gold as currency, gold stands as threat to a Government’s ability to dictate.

Gold is the deadly threat to all governments, including the Chinese government. Gold is a free market independent currency and puts all government currency at risk. Is China really working in the gold market for free markets and democracy and individual liberty around the world? No, I don’t think so. China, I think, is mainly working to hedge it’s stupid U.S. dollar exposure. – Chris Powell, Shadow of Truth

The gold community, in general, is very excited about the prospects of China and the new gold fix that will be launched sometime in 2015. Most of the speculation is around the September timeframe, but most assuredly before years end. After speaking with Chris about China and this seemingly important change in the global pricing mechanism, our optimism is waning. Let’s just say there has been a dose of reality served up.

I don’t kid myself that China is working for the benefit of us goldbugs here in the West. I think China is working for power for the Chinese government. Now, does the Chinese government want a higher gold price or a lower gold price or does the Chinese government just want to control the gold price as much as Western governments want to control it for different reasons? In 1974 Kissinger and his Deputy Secretary Thomas Enders discussed how the United States must persuade the European countries to keep moving gold out of the world financial system because whoever has the most gold controls it’s valuation and whoever controls golds valuation controls the valuation of government currencies. – Chris Powell, Shadow of Truth

This is an incredible interview with Chris Powell. Dare we say that he was “on fire.”

I’d say almost all the major ones (mainstream media) in the United States and Europe. Every major financial news organization in the West has all this documentation (regarding gold market manipulation) It just can not be acknowledged as an issue. Any journalist that picked up the gold price suppression issue would be fired.

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I don’t think the power of Central Banks to create infinite money is their greatest advantage right now. I think their greatest advantage right now is either their control of the mainstream financial news media or the timidity of the mainstream financial news media. This story is just the Emperors New Clothes.
There is very likely an arrangement, an understanding, among the world’s major Central Banks that is redistributing the worlds gold, right now, the debtor nations to the creditor nations to allow the creditor nations to hedge themselves against an evadible devaluation of the dollar.

He (Jim Rickards) has said, over the last year, a number of times. That from his meetings with government officials, Central Bank officials, elected officials, officials of the International Monetary Fund that there is, some, more or less formal arrangement, understanding between the United States and China. Whereby, China agrees not to dump it’s Treasuries while the United States agrees facilitate the flow of gold into China at a discounted price.

Rickards has been on record, on several occasions, stating that gold would be revalued to approximately $9,000 per ounce. According to Millars report, there is already in place, a plan to revalue gold by 7 to 10 times. Gold is currently, approximately, $1,200 per ounce, multiply that by 7 and you get $8,400 per ounce. A multiple of 10 and you have $12,000 per ounce.

“We’ve Got To Start Rigging The Gold Market”

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold [FDR1934]If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.  – Alan Greenspan, “Gold and Economic Freedom” 1966

GATA has sourced a speech given in 1981 by the President of the BIS, Jelle Ziljstra, at the IMF headquarters in 1981 in Washington, DC in which he advocated Central Bank intervention in the gold market in order to control the price and prevent gold from competing with a global system which was based on paper fiat currency:

“I feel it is necessary for us, within the Group of Ten and Switzerland,consider
ways to regulate the price of gold…”  – Jelle Zijlstra

The “Group of Ten” are the Central Banks of France, Germany, Belgium, Italy, Japan, the Netherlands, Sweden, the United Kingdom, the United States and Canada plus Switzerland.  As everyone knows, the BIS is the Central Banks of global Central Banks and therefore controls – de facto – global monetary policy.  Here’s a link  to the speech – there can be no questions that Central Banks – through their agent “bullion” banks (primarily JP Morgan, HSBC, Scotia, Deutsche Bank, Goldman Sachs, Citibank, Barclays and UBS) – make a concerted effort to limit the upward price movement of gold.

That day the U.S. 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. – Paul Volcker, “Nikkei Weekly” Nov. 15, 2004 (original incident on February 12, 1973)

Below are couple graphs from the St. Louis Fed website, with my commentary, to put Zijlstra’s speech context.

ControlGold

The Fed discontinued reporting M3 in March 2006.  The excuse was that M3 was too expensive to compile and report.  This is in the context of the Fed spending millions to fight all attempts by Congress to authorize a full audit of the Fed.  The U.S. is the ONLY industrialized country which does not report M3.  Make no mistake, M3 is the most accurate – though not completely accurate – measure of the money supply.   Any honest economist will admit that.

Note the difference in the level of M3 vs M2 when M3 was discontinued.  M3 shows that the money supply was nearly $4 trillion higher using M3 at the time M3 was discontinued.  Nothing happens by accident and it’s no coincidence that M3 reporting was discontinued a little more than 2 years before the Great Financial Crisis and the advent of Bernanke’s “QE.”  Many of us saw the financial collapse coming in the early 2000’s – certainly the price of gold “saw” it.  If we did, I can guarantee that the BIS and the Fed saw the collapse coming and the need to flood the system with dollars to keep it from collapsing and destroy the elitists’ ability to confiscate wealth and control the western world.

IF the Fed were to report M3 now, how high would the U.S. money supply truly be?

ControlGold1

This second chart above shows the parabolic, hyperinflating growth of U.S. Government debt.  Note that the growth in Treasury debt did not start taking off until after Nixon closed the gold window.  It started to rise a little more quickly after 1981, when Volker began to ease up on monetary policy.  The rest is history, but note that issuance of Treasury debt goes parabolic after Bernanke began to flood the banking system with money.

It was shortly after the Bernanke Money Floodgate opened that gold almost broke through $2,000 per ounce before the BIS/Fed was able to get control of the price and push it lower using Comex and LBMA paper gold, which can be printed in unlimited quantities as long as counterparties  do not demand delivery of the underlying gold.

In other words, the U.S. dollar-based global monetary system is one massive paper fraud and gold is the arch-enemy of a system based on fiat paper currency.  The only way it has been perpetuated this long is through the outright intervention in the gold market by the BIS and western Central Banks.

Like ALL Government interventions in history, this too shall come to an end – an end that will be painful for all of us.