The Great Deceiver — The Federal Reserve                                                                                                       Paul Craig Roberts and Dave Kranzler

Is the Fed “tapering”? Did the Fed really cut its bond purchases during the three month period November 2013 through January 2014? Apparently not if foreign holders of Treasuries are unloading them.

From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds.

You can read the rest of the article here:  The Fed Is The Great Deceiver

Jame Kunstler wrote a worthwhile essay about the way in which George Orwell’s worst nightmare is unfolding in the United States.  You can read it here:  The State of the Deep State.

While most Americans sit by like lobotomized sheep waiting to get sheared by the complete corruption which has engulfed our system and way of life, it truly is frightening to see and understand what is happening.  Sometimes I wonder if it’s better just to live in ignorance and fall back on “I was just following orders…”

Everyone in the precious metals community is scratching their heads over the recent behavior of the price of silver.   At the end of the day, the severely depressed price level can only be attributed to the extreme degree of manipulation and price containment activities of the Federal Reserve and the U.S. Treasury’s Exchange Stabilization Fund team (which is officed in the same building as the NY Fed).

Besides containing the upward price movement of gold and silver in order to support its effort to prop up the dying U.S. dollar, the question is, why is silver being hammered like this with Comex futures?   Ultimately, I believe a severe shortage of unencumbered physical bars for delivery into India and Asia has developed.  More on this in the next few days.   In the meantime, you can see from the 20-yr graph of silver that silver is, by far, more oversold than at any time in the last 20 years:

(click on graph to enlarge)

Buyers of gold & silver stocks today may see strong gains from these extremely low levels against silver.  At the same time, silver may have strong gains against gold and the dollar. For the miners to reach the top against silver from 2003-2004, the HUI can go up about 450%.  Who knows how much higher it may soar if the dollar crashes? Regardless, the probability for massive gains in silver and the miners vs. the dollar are quite high.  In fact, this is the most remarkable opportunity and set up since 2001 (article link).

A colleague of mine has a friend who recently retired from one of the major financial news organizations.   He was a senior writer and had been there for a long time.  He told my colleague that he was quitting because he grew tired of having the content of his articles butchered and edited to the extent that sometimes the printed article represented only about 10% of the reporting that was behind what ended up being published.

I wanted to re-print a news dispatch from GATA that went around today which describes the extent to which the mainstream media has been shown the proof that the Government operates to try and prevent the price of gold from rising.

We already know that what is reported by the mainstream media all across the political spectrum – from MSNBC to Fox News – is largely highly scripted, distorted and controlled by the Government.   But the news coverage of the gold market manipulation is the most highly contained information next to defense and espionage.

The GATA piece below was in response to the New York Times’ “Dealbook” blog, which wrote an article yesterday smearing the recent lawsuits filed against the big banks for gold market manipulation.  It described the nature of the lawsuits as being seeded in conspiracy theory and it referenced GATA as a group of “offbeat activists.”

Here’s a re-print of today’s GATA dispatch from Chris Powell, Treasurer of GATA and one of the most intelligent, insightful and witty people to whom I’ve ever been exposed:

Dear Friend of GATA and Gold:

Whenever any mainstream news organization publishes or broadcasts something touching on the Western central bank gold price suppression scheme or GATA, your secretary/treasurer contacts the organization to provide the full documentation that would be necessary to an attempt at actual journalism. Today’s appeal to The New York Times is appended. At least it drew a prompt and cordial acknowledgment.

Please understand that the summaries and documentation cited below have been provided to many major news organizations and government regulatory agencies. They all know what is going on. But as you have heard many times from your secretary/treasurer, the true location and disposition of central bank gold reserves are, to governments, secrets far more sensitive than the location and disposition of nuclear weapons. For rigging the gold market is the most powerful weapon of all, as it is the prerequisite for rigging all markets.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Tuesday, May 6, 2014

Alan Feuer, Reporter
The New York Times
620 Eighth Ave.
New York, N.Y. 10018

Dear Alan (if I may):

Thanks for your reference to the Gold Anti-Trust Action Committee Inc. in your report today about the federal lawsuits being brought against the bullion banks participating in the daily London gold price fixings:

http://dealbook.nytimes.com/2014/05/05/banks-sued-on-claims-of-fixing-pr…

But GATA is a little more serious than the “offbeat activists” of your description. The committee includes people with long experience in the financial markets. While I don’t have that kind of experience, I have fair experience in journalism, having been a newspaper reporter and editor in Connecticut for almost 50 years and having given their first journalism jobs to the Times’ own reporters Dan Barry and Bryan Miller and photographer Sara Krulwich.

In fact, rather than the repository of “offbeat activists,” GATA is mainly an investigative and fact-finding organization, not a “conspiracy theory” organization producing the “online screeds” cited by your report. We have sued Western central banks for information, have extracted much incriminating material from official archives, and have published what has turned out to be the documentation of the longstanding Western central bank gold price suppression scheme, a scheme documented right down to the present through the admissions of the central banks themselves.

We have found that it is simply a matter of public record and as easy to document as it is to put specific questions to central banks about their involvement in the gold market. That is, it is easy to establish through ordinary journalism — which, unfortunately, mainstream financial news organizations, including the Times itself, have declined to undertake even though most of the research already has been compiled for them. Of course GATA is delighted to share it with anyone interested. I wish that the Times would even look at it.

The most recent version of my “stump speech” summarizing the most important documentation, including Internet links to each document, is here:

http://www.gata.org/node/13644

Some updating commentary with documentation is here:

http://www.gata.org/node/13829

GATA’s general documentation file is here:

http://www.gata.org/taxonomy/term/21

This story involves the surreptitious and undemocratic control of the valuation of all capital, labor, goods, and services in the world. It is a very serious story and should not be left to the offbeat.

Thanks for your consideration.

With good wishes.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.