Tag Archives: Greenspan

“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.

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.”

Shadow Of Truth: Our Deteriorating Economy

Both retail sales and new orders for durable goods showed slowing or contracting fourth-quarter 2014 growth, with indications of outright first-quarter 2015 contractions already in play, irrespective of the series being, or not being, adjusted for inflation. Those patterns should become increasingly obvious in headline reporting of the next month or so… The effects of the weakening underlying data, on both forthcoming and soon-to-be-revised historical GDP growth patterns, should be distressing to the consensus outlook of a fully-recovered and expanding U.S. economy.   – John Williams, Shadowstats.com

On Friday, after the big downside revision to the Q4 GDP, the Chicago PMI report literally crashed to 45.8 from January’s 59.4 reading –  a 23% plunge.  58.7 had been expected by Wall Street’s brain trust.  This was the biggest drop since the Financial Collapse of 2008 and the second biggest drop in 1980.   The new order sub-index had the biggest month to month drop on record.

My colleague Rory Hall of The Daily Coin and I discuss the rapidly deteriorating economy in our latest episode of “Shadow of Truth.”  I also relate some information about Alan Greenspan that most of you probably have never heard before:

The economy is in the early stages of a major recession.  We’re seeing this in all of the latest economic reports and in the fact that the Fed/Govt can’t stimulate homes sales even with near-record low interest rates and a substantial easing of credit standards.

The housing market is going to get crushed and you can take advantage of this by reading my homebuilder reports – two of the plays have already produced over 20% returns for anyone of acted on the information.   Both of those companies will hit the wall before this over.   The other three companies are now set up for huge drops in the next 3-6 months:  Homebuilder Research Reports.

Another great play is shorting Amazon.com.  This will require “legging” into a full position over time – and it will require some patience.  I have section in the report which discusses using options for speculation and to help manage risk:   AMAZON.CON

Here’s the latest reader testimonial:   “I bought your Amazon report and it was outstanding!  Thanks for sharing your work in this way!!   Best regards,  Jim”