Monday, April 5, 2010

Manipulation of the Currency, Precious Metals, and Bond Markets

Manipulation of the Currency, Precious Metals, and Bond Markets
London Bullion Market Assoc. Fraud - Leveraged 100 to 1
Andrew Maguire & Adrian Douglas
Tuesday, March 30, 2010
(bold text emphasis added by MMr)

Andrew Maguire & Adrian Douglas: Discuss What Could Be the Largest Fraud in History - Andrew is an independent metals trader turned whistleblower at the center of a storm for exposing what could be the largest fraud in history involving countries, banks and government leaders. Adrian Douglas Board of Director from GATA, the man who Andrew reached out to joins in this interview where they discuss a fraud so extraordinary and so unimaginable that it is the kind of thing that only happens in hollywood thrillers. They also discuss the CFTC sponsored meeting on metals which was an unmitigated disaster because it additionally exposed the fraud on a grander scale.

Wednesday, March 31, 2010

In this interview with GATA we continue the saga after just having interviewed Andrew Maguire, the whistleblower out of London. This gives a short and long-term view down the rabbit hole through the eyes of 3 of the GATA board members. GATA was so heavily involved not only in breaking the news at the CFTC meeting about the the metals manipulation but also at the same time quite possibly uncovering the largest fraud in history. The Gold Anti-Trust Action Committee was organized in January 1999 to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities. The committee arose from essays by Bill Murphy, a financial commentator, and by Chris Powell, a newspaper editor in Connecticut, published at Murphy's Internet site, In this GATA Roundtable we will have Bill Murphy, Chris Powell and Adrian Douglas.

King World News Broadcasts home page

The Daily Bell
Exclusive Interview William Murphy article link
Sunday, April 04, 2010 - with Scott Smith

William Murphy Explains his Testimony at the Recent CFTC Hearing and the Future of Precious Metals Markets


... "The Gold Anti-Trust Action Committee (GATA) was formed in January 1999 to expose and oppose the manipulation and suppression of the price of gold. What we have learned over the past 11 years is of great importance in regard to this hearing on position limits in the precious metals futures markets. Our efforts to expose manipulation in the gold market parallel those of Harry Markopolos to expose the Madoff Ponzi scheme to the Securities and Exchange Commission.

"Initially we thought that the manipulation of the gold market was undertaken as a coordinated profit scheme by certain bullion banks, like JPMorgan, Chase Bank, and Goldman Sachs, and that it violated federal and state anti-trust laws. But we soon discerned that the bullion banks were working closely with the U.S. Treasury Department and Federal Reserve in a gold cartel, part of a broad scheme of manipulation of the currency, precious metals, and bond markets." ...

... The bullion banks work with the Fed/Treasury to keep gold and silver excitement to a minimum. Gold has been up 10 years in a row because The Gold Cartel has orchestrated a managed retreat. For example the cabal traders have their 2% Rule, which is the maximum they have allowed gold to up this year during a Comex trading session. This has occurred 7 times already since January 1.

On a day-to-day basis, The Gold Cartel uses physical gold supply, fed into physical market via surreptitious swap or lending operations, and then uses their concentrated power in the derivatives markets to cap the price and then to terrorize the longs and flush them out when they are ready to attack.

A perfect example is the recent April option expiry. The price of gold collapsed before the April option expiry from $1126 to $1085. Now that the expiry is over and the April call options expired worthless, the price is back to $1126 again. It was a two week round turn. ...

... Wall Street loathes gold because when the price is soaring, it is bad for business. Every time the gold price explodes, the press/analysts explain the rise due to inflation, crisis of sorts, terrible dollar action, rising interest rates, etc ... so it's not good for their stock and bond markets. If you look at their price forecasts the past decade, most of the Wall Street firms have been neutral to bearish all the way up, and still are.

However, the only firms that will face some heavy angst are those doing the manipulation like JPM and HSBC. Goldman Sachs used to be the ringleader of the gold price suppression scheme. However, they are nowhere to be found these days and are actually one of the few Wall Street firms which has a bullish price forecast for gold. Just a few years ago they were short as much as 50,000 contracts on the TOCOM (Tokyo futures market). ...

... There is a zero chance it will not be stopped because The Gold Cartel will run out of enough ammunition (available central bank gold) to meet the annual supply/demand deficit. For the last 15 years they have required an average of an extra 1,000 tons per year to keep the price under control. It is commonly said by the mainstream gold world that the central banks have 30,000 tons of gold. The work of GATA consultants Reg Howe, James Turk and Frank Veneroso suggest that central banks actually have fewer than 15,000 tons. This is why The Gold Cartel is running out of ammunition.

At GATA's May 2001 GATA African Gold Summit in Durban, South Africa Frank Veneroso said that the central banks would run out of enough central bank gold to dump on the market in 7 to 10 years. The European central banks were selling 400 to 500 tons per year for the last decade ... until a few months ago. The last few months they haven't sold an ounce. The tide is turning. ...

The Daily Bell home page


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