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[the good ole
‘American way’ – through proxies]
A couple of weeks ago, I pitched an idea to some associates of mine
who are involved in SERIOUS [tonnage] PRECIOUS METALS procurement – physical
metal only – let’s just say HUGE money. I asked them if they would be
interested in purchasing an “option” – cash up front - for
the exclusive rights [first right of refusal on off-take] of a gold producer
[miner] for a set number of ounces for 3 – 5 years “at the
market” – using LBMA pricing [a.m. / p.m. fixes] in the
future. The answer I got back
from my associates was “show us a terms sheet, we definitely have
interest”.
So, I spoke to a friend who is very close to an intermediate producer
who is in the mode of raising money right now. I had them ask the producer if they
would have interest – the producer said, “YES, we are interested
- but just to let you know – J.P. Morgan has been asking us if we would
sell them the same option”.
So, while gold producers have shuttered their “gold hedge
books” – the Bullion Banks are ‘synthetically’ trying
to keep physical output captive – I would suggest FOR THE EXPRESSED
REASON THAT THEY SELL EVERY PHYSICAL OUNCE AT LEAST 100 TIMES OVER.
Gold is going to get EXTREMELY scarce in the future folks. Big money interests are now cutting
off [or bidding for / gaining exclusive access to] the traditional bullion
supply chain “at the pit”.
The shorts of ‘paper gold’ at J.P. Morgan [the Fed in
drag] are selling the daylights out of the paper market and simultaneously
buying exclusive rights to producers’ future production so they can try
to fudge their way through an unmitigated fraud and settle a big enough chunk
of their bad bets to keep this ‘systemically ruinous’ precious
metals ponzi-scheme alive.
Price of Gold and Interest Rates Are Joined at the
Hip
The academic research that outlines the inter-relatedness of gold and
interest rates is succinctly laid out in a 2001 treatise, Gibson's Paradox Revisited, by Reg Howe.
From this one can deduct that ANY rigging of the gold price must go
hand-in-hand with simultaneous rigging of interest rates.
Folks would do well to realize how neatly emerging details of Fed
surrogate Morgan’s
‘stealth’ activity in the bullion market dovetails with
their obscene, obsequious activity elsewhere in their derivatives book
– particularly their JUMBO TRILLIONS sized interest rate swap
positions.
 
Stealth activity on the part of the Fed – utilizing proxy
institutions to generate limitless artificial demand for any and all U.S.
Government Debt – effectively gives the Fed control of the long end of
the interest rate curve [the bond market].
From a timing perspective, it is also noteworthy that gold price
rigging – long maintained by GATA – is alleged to have begun in
earnest during the Clinton Administration with the appointment of Robert
Rubin as U.S. Treasury Secretary [along with understudy Lawrence Summers] in
Jan. 1995. Coincidentally [or
perhaps not?] we can trace the genesis of the “explosion” in the
use of derivatives [mostly interest rate] to that exact same time frame. In fact, if we follow the time line in
‘reverse’ – the growth in the use of derivatives appears
like a trail of bread crumbs – right back to the time when Professor
Lawrence Summers, under the tutelage of Sir Robert of Rubin, brought his
academic alchemy to Washington:
Does anyone with a pulse really believe that ANY Bank Holding Company
in the U.S. would be permitted to have a derivatives position in excess of 75
TRILLION [five times the size of U.S. GDP] if they were not ‘in
bed’ with the FED????
If you except the premise that, “J.P. Morgan “is”
the Fed”, then, “IT’S REALLY THE FED WHO IS BUYING
GOLD” and they [unfortunately, this means “America”] likely
have NONE LEFT to sell.
NOTHING could be more bullish for the price of gold going forward.
Everyone needs to get it through their heads; these criminals are NOT
IN IT for profits. The survival
of our “BROKEN FIAT MONEY SYSTEM” “IS” their only goal.
Conclusions:
Officialdom will never admit it and it will NEVER be reported in the
mainstream financial news but our financial system has NEVER been in a more
precarious state. A banking crisis of unparalleled proportions is coming
– probably soon – the exact timing is still sketchy.
Got physical precious metal yet?
Rob Kirby
KirbyAnalytics.com
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