Geschrieben von: spica | 06. Juni 2009
Posted in English articles

Why is gold being manipulated?

Ask Ferdinand Lips in his speech from 24.06.2004 St.Gallen/CH

Gold is indeed being manipulated each day by a clique of reckless financial wrongdoers. The following chart shows the gold price movements and manipulation over a one-day period. You can clearly see what is happening here.

Normally, the price of gold rises in Europe, but as soon as the COMEX opens in New York it is driven downward – more on some days, less on others. And this takes place without regard to the harm, and by that I mean the economic damage, that it causes throughout the world. Why are these financial wrongdoers interested in manipulating gold? In each and every discussion about the future of gold and its price, one thing needs to be clearly understood: GOLD IS A POLITICAL METAL. And this is so for the simple reason that given its historical role as money, gold just isn’t compatible with the modern financial system. Up to 15 August 1971, there was never a period in history during which no currency was linked to gold.

The new USD started 15.08.1971

The world’s history of currencies is full of examples of devaluations, coin clipping and bankruptcies. Yet it was always possible to switch to other currencies that were backed by gold. But if you disregard the Swiss franc, this has no longer been possible since 1971.

All of the economic, monetary and financial catastrophes of the past 30 years can be traced back to this event.

Today’s system of unbacked paper money is still very young. It relies solely on faith – faith that the debts upon which it is based will be repaid someday.

A single, one-off event that could shake this faith, and thus the foundation of the financial system, is a robust upsurge in the dollar price of gold.

That is the entire reason why gold is manipulated each day.

But we know from the history of the Gold Pool in the 1960s that gold cannot be manipulated endlessly. At the time, the central banks tried to fix the price of gold at 35 dollars an ounce. The Gold Pool fell apart on 17 March 1968, and the entire pitiful experiment became the object of ridicule.

Gold is very cheap today because the governments of the world tamper with its price on a daily basis.

Where do we stand today? In a world at war and in crisis

1. We are in the midst of a global currency and devaluation war.
   
2. The world’s reserve currency, the dollar, is weak because of the USA’s alarming financial situation – more than 34 trillion dollars of debt, 200 trillion dollars of derivatives and some 10 trillion dollars of obligations outside of the official government accounting. (And just think, in 1997 there were fears that the global financial structure would collapse due to a single hedge fund, Long Term Capital Management, with total assets of 3 billion dollars.)
   
3. The money supply is increasing dramatically in the USA and worldwide.
   
4. The stock markets currently resemble casinos; they are overvalued and dangerous. The Dow Jones Index is manipulated each day by the Working Group on Financial Markets (established in 1987 by President Ronald Reagan). There are no free markets anymore. The insiders are getting out.
   
5. We face negative interest rates (i.e. inflation exceeds interest income), which are bad for investment and the economy.
   
6. There is a deficit between gold production and demand – central banks have loaned out 1/3 to 1/2 of their gold. The gold is gone. Panic could ensue if people realize that gold is the only safeguard of monetary value and that a large portion of the central banks’ gold has been sold.
   
7. The mountainous debt has reached historically high levels worldwide. This will place an onerous interest burden on the young generation and may be impossible to finance. It could result in panic or might be dealt with through inflation.
   
8. The current erosion of money is catastrophic for wage earners and retirees. The Middle Class is being squeezed. A billion people around the world live in poverty stricken areas. Soon, one out of every three city dwellers will live in slums. Such conditions will promote the spread of radicalism. Hate is growing.
   
9. The global economy will be in a Kondratieff winter over the next 10 years. Humanity has managed to overcome every crisis up to now, but given the current means of monetary degradation, it will not get through this crisis without serious consequences.
   
10. Political confusion is on the rise. The geopolitical situation has never been so bad. A coup in the Kingdom of Saudi Arabia could, by itself, have a disastrous impact on the flow of oil and the global economy.