Tuesday, April 6, 2010

"Going out of business" Gold Sale

Many "too big to fail" banks have acted to suppress gold and silver prices, creating what is, in effect, a limited-time gold and silver sale. Now may be the time to "back up the truck" and load up with gold and silver bars and coins at "fire sale" prices. This is one of those "good guys win in the end" stories.

We all know what a "limited-time sale" is -- one where you can get fantastic bargains only for a limited time. How much time? Not much, since your "sugar daddies" making dirt cheap gold and silver available to you may vaporize at virtually any time before our eyes. This is why we call it the "going out of business" sale of a life-time.

Who is your sugar daddy?
Our bestowers of great opportunity are none other than JP Morgan Chase, HSBC, Goldman Sachs and other "banksters", which have been described as a "criminal cartel" robbing wealth from the little guy and in terms even much worse than that. Ironically, these "too big to fail" banks and trading houses have backed themselves into a corner and as a result, for once the little guy and many good big guys, too, can out-smart them big-time, winning substantial profits.

Here is how it works. For many years, according to reliable evidence (e.g., here and in many articles in "Further Reading"), these banks have been huge players in gold and silver price manipulation -- namely, to suppress the price. This is also known as "price-fixing", with the banksters in obvious cooperation with governments and historically, many mining companies.

Why would anybody want to suppress the price of gold or silver? Let's say there was a conspiracy or even a public plan to keep the cost of gasoline very low. Probably the public would be very happy, getting artificially cheap gasoline. Well, that is the essence of this article -- right now, but for a very limited time only, everyone can get artificially cheap gold and silver.

Again, why suppress precious metal price? Simply to support confidence in paper money, which has no value without confidence by the public. If the price of gold and silver goes up, this is like saying the value of the paper money used for pricing has gone down. Even near idiots understand that, which is why governments will do almost anything to prevent rising gold/silver prices, as much as possible. Why? Paper money is an important, if not the central, tool used by the bankster elite to transfer your wealth to them.

How is this scam to create the illusion that paper money is an adequate store of wealth done? I think you already can guess. Everybody has experienced markets, and if not the stock, bond or gold markets, it has been the local auction, flea market or vegetable markets where buyers and sellers meet.

What if I wanted to suppress the price of tomatoes? Simple. I'd bring a big truck load of tomatoes and flood the market. With so many tomatoes offered for sale, buyers will realize that the price might decrease a lot, and definitely would not rise. So I can easily suppress the price, but I have a cost -- namely, I have to supply the tomatoes and may take a loss in selling them at low prices. Since I have this cost, I must have some other objective than making a profit. Get it? Governments helped by banksters have to pay the cost of suppression of gold/silver prices, in order to maintain confidence in paper money, which they insist on devaluing over time.

Now the story gets a little nasty as we get closer to the ongoing "war of the titans".

1. To pay this cost, governments with their big bank agents may reduce or deplete their gold reserves. This is pretty bad because, regardless of propaganda to the contrary, gold and silver are the only universal currencies, mostly and simply because governments cannot "print them" with only ink on paper. Bad because in emergencies, that proverbial "rainy day", a country might need to buy something important, like, say, food, from other countries, and only the true universal currency -- gold/silver, might be acceptable as payment. By this standard, paper money (known as "fiat currency") is a joke.

2. When this corrupt machine gets low in its own gold or silver, they probably have sold, and will continue to sell, yours, if you left it with them for "safe keeping". Lesson: if you buy -- that is, do a currency exchange of paper money for real money, take physical possession of your gold or silver. Do not leave it with these amoral banksters -- lest you come for it and they say, "Oops, we don't have it"; so where are you then -- probably just an unsecured creditor who probably will get nothing. In short, holding a paper receipt that you are owner of such-and-such gold/silver is nothing but a piece of paper which definitely has the "counter-party" risk that you might never get anything from the "holder" or "custodian" of your real money.

3. Worse, if that is possible, banking entities might sell gold or silver that they do not have. This is known as "naked short selling", and most people view this as unethical and probably frankly illegal. You are I would be arrested for fraud for selling things we don't have.

Please note also, that this "price-fixing" leads to scarcity of gold and silver; that is, real money is hard to come by, so get some while you still can. www.en.wikipedia.org states:
A total of 161,000 tonnes of gold have been mined in human history, as of 2009. This is roughly equivalent to 5.175 billion troy ounces or, in terms of volume, about 8,333 cubic metres, and could be valued at just under six trillion United States dollars at early March 2010 prices.
Most of this real money is not available to buyers, because most holders of this real money are not so foolish as to "let go" of their real money by selling it at artificially suppressed prices. Just how far the prices have been suppressed may be seen in the six trillion figure above. That's pocket change for all the gold ever mined compared to the size of the world economy or the nominal value in paper currency of the total assets in the world.

What this means is that you can acquire real money with paper money today at deep discount, for "pennies on the dollar", so to speak. In sum, while governments print paper money until they all simply implode, ironically, the price suppression is in fact equivalent to "giving away free gold" for buyers -- for a limited-time only.

JP Morgan Chase and HSBC, named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, are thought to be acting as agents for governments and their privately-owned central banks, and are up to their ears as naked short sellers. In essence, they can theoretically sell unlimited amounts to suppress the price, since the corresponding central banks for the respective governments can create paper money "out of thin air" in any desired amount and provide it to these "bullion banks" to back up (or "post margin" for) their naked short positions. But that is in theory only.

It's war out there
Indeed, if governments using paper money (that is, all of them) fail to suppress the gold/silver price, we talking about the imminent fall of those governments. So this is perhaps the highest stakes poker game in the world today. This ongoing war is about to boil over into the streets, so to speak, because it is a fight to the death, it is "all-in" Texas hold 'em poker, an economic epic of proportions never seen in human history.

On one side, we have governments wanting to debase paper currencies by endless creation of so-called "money" which is nothing more than an IOU based on confidence. That is, horrors, the governments are bluffing and worst horror, now everyone knows it. In short, they are guaranteed to loose.

On the other side, confidence in fiat money is falling, close to being in "free fall", and powerful interests -- including many a little guy, too, are bidding up the paper money price of real money, in an accelerating scramble to get gold and silver while physical supplies are still available at highly discounted prices.

In this last decade, gold price has quadrupled showing the trend that governments and the "financial system" are loosing the war. This leads to paper losses for their bankster cartel holding "short" positions. Eventually, they might well be put out of business completely with increasing losses. Quite simply, the naked short sellers will have to purchase physical gold in the open market to deliver the gold they have agreed to provide, or their defrauding of buyers will be exposed. Either way, the losses and ripple effects will likely put most of these crime syndicates known as "too big to fail" banks out of business.

There you have it! This spectacle is a grand "going out of business" sale of gold and silver. Corruption and evil on an almost unimaginable scale has strangely provided a gift to the little guy. It is like free gold and silver is raining from the heavens. It is like buy one gold/silver coin and get one, two, or ten more for free. This story gives that tingling feeling like witnessing a miracle.

Confidence is a fragile thing. It can disappear over night. So get your free gold and silver now. Please keep in mind that as this war to the death unfolds, increasingly, holders of real money will not want to sell it -- that is, do a currency exchange of real money for paper money which is rapidly becoming worth less toward its final fate of being worthless.

Thus, those who have some real money will be very practical and only exchange it for paper money only to the extent they need to pay their bills, buy food, etc, say a 3 to 6 month supply of paper money, keeping all the rest in the real money currencies of gold and silver. Those who have paper money and do not exchange almost all of it for real money, will rapidly find that they may have little or nothing at all.

Keep in mind that any government can devalue a currency over night at any time, and with all the debt that can never be repaid, the blood is in the water; government officials are already in a panic state; strong hands (anybody with a positive net worth) are relentlessly accumulating real money; available physical supply is therefore diminishing; the smell of financial death is in the air; opposing forces are converging toward the final economic "gunfight at the OK corral", a complete collapse of the fraudulent international so-called "financial system".

Note to Baha'is
All of this applies to you and Baha'i institutions, too. All assets denominated in fiat currencies, including deposit accounts, money market accounts, government and corporate bonds, and other interest bearing instruments might well be exchanged for real money "before the music stops". Baha'i funds, endowments, savings, etc, can be protected by Baha'i institutions by holding this wealth in real money. Now we know, at least in part, how some of those underground rooms at the Baha'i World Center might be useful.

Addendum: Since this post was written, I found this summary, It's Ponzimonium In The Gold Market, which provides more detail.

Note: The author is not an investment advisor; so this commentary should be contemplated and researched for your own decision.
© 2010 James J Keene

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