LOOKING INTO THE ABYSS

6 comments

Posted on 20th May 2014 by Administrator in Economy |Politics |Social Issues

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Guest Post by Jesse

 

“We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.

Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.”

Edward ‘Eddie’ George, Governor Bank of England 1993-2003

 

Yesterday I said,

“The capping in the metals is obvious.

There is no economic news or theory that is needed otherwise to explain it.

The question is how long it can last.”

Someone asked ‘why then is it happening?” I am sorry I had thought it was also obvious based on any number of recent posts.

The Anglo-American Gold Pool, and their coterie of client Banks, have made a policy decision to hold the price of gold and silver below 1300 and 20.

Why those particular levels?   Because any lower, and the miners would start going out of business, and the flow of physical bullion to the East might become unmanageable.   They are nice round numbers, with the obvious appeal to the bureaucratic mind.   Anything higher, or rather, with a more aggressive rate of ascent, and some of the natives might become restless, and the positions of some Banks might become untenable.

Their reasons are of course theirs, but I would imagine it is something along the lines of ZIRP, the TARP, selective justice, and the rigging of LIBOR and any other number of markets.

The preservation of the status quo becomes paramount to those caught in a credibility trap, and especially among those who have risen to great wealth and power through ‘extraordinary means.’

L’etat, c’est moi.

6 Comments
  1. Joseph E Fasciani says:

    Ah, too, too true!

    I expect a sideways agony over the next 18 months w/o a major war or other catastrophic event of long duration.

    20th May 2014 at 11:08 pm

  2. Welshman says:

    JEF,

    Have to agree, sideways for 18 months, hopefully no wars, more daily pin pricks of air leaking from the empire.

    21st May 2014 at 6:58 am

  3. Administrator says:

    As Russia Dumps A Record Amount Of US Treasurys, Here Is What It Is Buying

    Submitted by Tyler Durden on 05/21/2014 08:57 -0400

    Last week we commented that based on TIC data, while “Belgium’s” unprecedented Treasury buying spree continues, one country has been dumping US bonds at an unprecedented rate, and in March alone Russia sold a record $26 billion, or 20% of its holdings.

    So as Russia is selling record amount of US paper, what is it buying? For the answer we go to Goldcore which tells us that…

    Russia Buys 900,000 Ounces Of Gold Worth $1.17 Billion In April

    The Russian central bank has again increased its gold reserves by another 900,000 ounces worth $1.17 billion in April.

    Russia’s gold reserves rose to 34.4 million troy ounces in April, from 33.5 million troy ounces in March, the Russian central bank announced on its website yesterday. The value of its gold holdings rose to $44.30 billion as of May 1, compared with $43.36 billion a month earlier, it added.

    21st May 2014 at 10:06 am

  4. A. R. Wasem says:

    Guessing little or no gold left in Ft. Knox. Military may have taken possession of some directly. The rest is gone, gone, gone. BC-LR to all

    22nd May 2014 at 12:14 am

  5. Joseph E Fasciani says:

    Dear A R Wasem:

    But that was the point: to juggle & manipulate what was there into infinity, while the commodity was stolen and redeposited elsewhere.

    Note the disappearance of the gold at WTC on Sept 11th, from vaults that were supposedly atomic bomb proof…. Problem is that NOTHING is feral gubbmint proof.

    Nuff said: good night, and good luck!

    29th May 2014 at 4:55 am

  6. flash says:

    The Joos are onto something here .Force everyone into a cashless society and voila , nor need for PMs at all….Fiat will rock! I can’t wait to get my RFID chip ….self-checkout @ Wally orld will be a wave and out da’ door….whats not to like?

    Government Plan Would Transform Israel Into The World’s First Cashless Society

    The government on Tuesday authorized establishment of a committee that will examine ways to eliminate cash from the Israeli economy – the better to prevent citizens from cheating on their taxes. The committee will be chaired by Harel Locker, director of the Prime Minister’s Office.
    http://www.zerohedge.com/news/2014-05-27/government-plan-would-transform-israel-world%E2%80%99s-first-cashless-society

    29th May 2014 at 5:48 am

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