MP3: Discussion between Jay Taylor and David Jensen
on Monday November 3, 2014.
Topics
1. Petrodollar - Russia, China, and other countries are forced to structure
a new monetary system due to the unsustainbility of the Western monetary system
and central bank policy.
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Russia's assets seem to be a target of interest (again) for Western banking
interests (again).
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False crisis created in Ukraine by US State Department neocon Victoria
Nuland and George Soros to vilify Russia.
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Central issue is failure of Western debt-based, centrally planned monetary
system
2. Shanghai Gold Exchange and Shanghai Metal Exchange physical metals
premia vs. LBMA pricing:
SGE Gold: +0.7 % premium vs LBMA
SGE Silver:+12.3% premium vs LBMA
SME Palladium +16.6% premium vs LBMA
SME Platinum +6.1% premium vs LBMA
3. What is happening with Palladium? 2014 shortage estimated by Standard
Bank at 2 million oz. (vs. 6.5 million oz. mine supply) yet the price has been
driven down.
Russia has delayed buying by state metals agency Gokhran http://www.reuters.com/article/2014/09/29/pal...N0RU1ID20140929 until
2015.
Russia has been acting very carefully in its overt actions not to disrupt
the financial markets.
Russia and the BRICS can see the West is being destroyed by its central bank
monetary system and policy and don't need to act to achieve its goals of separation
from Western coercion.
4. Gold and silver shortages as gold backwardation of 0.5% and silver
backwardation of 2% (measured by 'gold basis' = spot price bid - futures price
offer) target="_blank" www.zerohedge.com/news/2014-11-03/gold-and...nd-demand-2-nov
- Backwardation, argued to not be possible for gold with its enormous
stock-to-flow ratios and with 170,000 tonnes of gold above ground, are now
seen in the markets with spot gold trading for a premium to near futures
prices. Simply arbitrage away spot premium (sell gold in spot market, immediately
buy future position and pocket the difference in price).
Backwardation extinguishment only possible if confident in value of currency
and assured return of gold sold in futures market.
At the margins, indication of decline of trust in currency if not immediately
arbitraged away.
5. Dealing with gold manipulation - a matter for adults
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The very possibility of central bank, bullion bank, and government manipulation
of the gold market is repugnant to most.
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However, adults don't ignore information because they don't like it.
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There is also Normalcy Bi target="_blank"as: http://en.wikipedia.org/wiki/Normalcy_bias
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Characteristic of humans ignoring danger when facing a potential crisis.
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How do media and many individuals deal with gold and silver market manipulation
allegations? They deny it and mock the concept as 'conspiracy' theory -
a term introduced in the 1960s to discredit people who said that the Warren
Commission story on JFK's assassination did not add up. As a result, most
in the media have been trained to dispose of matters which question the
'mainstream' view by calling it 'conspriacy theory'. Most media personnel
have not responded with competent research and reportage on the topic of
gold manipulation - instead they have scoffed instead of probing deeply
with statistical data of price trading patte target="_blank"rns http://investmentresearchdynamics.com/p...ing-paper-gold/ on
the New York and London virtual gold markets nor have they analyzed market
structure data showing 100:1 paper to gold leverage in London on the LBMA
- and the implication of trading unlimited virtual gold.
- Dimitri Speck statistical work on gold manipul target="_blank"ation: http://goldsilverworlds.com/price/go...-dimitri-speck/
-
The concept of gold manipulation / theft of national gold is not new
- it arose in 1974 with an article in The National Tattler alleging that
US gold reserves had been stolen by a group of bankers and stored in
Holland.
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The informant for the story, Louise Auchincloss Boyer who was the 30-year
secretary to Nelson Rockefeller, fell out the window of her 10th floor
apartment to her death 3 days after the story was published. Nelson Rockefeller
became Vice President of the U.S. 6 months after Louise Boyer's death. target="_blank"p>
http://beforeitsnews.com/gold-and...-2-2471964.html target="_blank"a>
http://query.nytimes.com/gst/a...FB166838F669EDE
- The story and Louise Boyer's death triggered a national outcry in the US
and public demands for a gold audit. The result was what are viewed as sham
photo ops of small portions of the US gold reserves and no actual audit and
assay of the US gold stock held by Treasury which hasn't occurred since the
mid 1950s.
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We also know that the LBMA gold markets are levered 100:1 through unallocated
gold positions that are traded at approximately 180 million ounces
per day (total gross daily trading volume) at 10x the end of day 'netted'
trading volume which is 600x daily global gold production.
-
It is known that the Bank of England and Bank for International Settlement
(BIS) are at the center of the LBMA gold trade as physical gold market
makers.
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We know that the LBMA gold fix was operated by the Rothschild Bank in
London from 1919 until 2005. Introduced the trading of unallocated virtual
gold contracts which separated direct trading of physical gold from the
markets and substituted paper trading of 'virtual gold' spiking down gold
prices in the 1990s.
Essential to understand that the markets have been crippled by substituting
trading of real gold and substituted paper virtual gold which will leave
people in crisis when the paper market fails. The false price signal from
the paper gold markets drives Western investors from gold just as they need
positions to protect themselves:
"... Whenever destroyers appear among men, they start by destroying money,
for money is men's protection and the base of a moral existence. Destroyers
seize gold and leave to its owners a counterfeit pile of paper. ..."