Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Trade News Still Relevant? - 19th Nov 19
Comments on Catena Media Q3 Report 2019 - 19th Nov 19
Venezuela’s Hyperinflation Drags On For A Near Record—36 Months - 18th Nov 19
Intellectual Property as the New Guild System - 18th Nov 19
Gold Mining Stocks Q3’ 2019 Fundamentals - 18th Nov 19
The Best Way To Play The Coming Gold Boom - 18th Nov 19
What ECB’s Tiering Means for Gold - 17th Nov 19
DOJ Asked to Examine New Systemic Risk in Gold & Silver Markets - 17th Nov 19
Dow Jones Stock Market Cycle Update and are we there yet? - 17th Nov 19
When the Crude Oil Price Collapses Below $40 What Happens? PART III - 17th Nov 19
If History Repeats, Gold is Headed to $8,000 - 17th Nov 19
All You Need To Know About Cryptocurrency - 17th Nov 19
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19
Gold and Silver - The Two Horsemen - 11th Nov 19
Towards a Diverging BRIC Future - 11th Nov 19
Welcome to the Zombie-land Of Stock Market Investing - 11th Nov 19
Illiquidity & Gold And Silver In The End Game - 11th Nov 19
Key Things You Need to Know When Starting a Business - 11th Nov 19
Stock Market Cycles Peaking - 11th Nov 19
Avoid Emotional Investing in Cryptocurrency - 11th Nov 19
Australian Lithium Mines NOT Viable at Current Prices - 10th Nov 19
The 10 Highest Paying Jobs In Oil & Gas - 10th Nov 19
World's Major Gold Miners Target Copper Porphyries - 10th Nov 19
AMAZON NOVEMBER 2019 BARGAIN PRICES - WD My Book 8TB External Drive for £126 - 10th Nov 19
Gold & Silver to Head Dramatically Higher, Mirroring Palladium - 9th Nov 19
How Do YOU Know the Direction of a Market's Larger Trend? - 9th Nov 19
BEST Amazon SMART Scale To Aid Weight Loss for Christmas 2019 - 9th Nov 19
Why Every Investor Should Invest in Water - 8th Nov 19
Wait… Was That a Bullish Silver Reversal? - 8th Nov 19
Gold, Silver and Copper The 3 Metallic Amigos and the Macro Message - 8th Nov 19
Is China locking up Indonesian Nickel? - 8th Nov 19

Market Oracle FREE Newsletter

$4 Billion Golden Oppoerunity

Gold, Silver and the Crisis of the Fractional Banking System

Politics / Gold and Silver 2012 Mar 08, 2012 - 12:36 PM GMT

By: Bob_Chapman

Politics

Best Financial Markets Analysis ArticleThe Pan Asia Gold Exchange (PAGE) – was to represent real price discovery and that is yet to happen. The first move to smother the exchange was by an increase of holdings in the endeavor. This move was to stop them from constructing their own platform rather than buying an existing platform. Due to that move shareholders rose from 10% to 25%. That brought in additional directors whose job it obviously was to stop the fully allocated spot contract. One of these directors was a US banker who has worked for the Federal Trade Commission, the Sloan Foundation at MIT and whose wife is a member of the CFR, the Council on Foreign Relations. Thus, nothing is going to happen to this venture until next year for a variety of reasons. Fortunately a new exchange is on the way to replace PAGE, which we will fill you in on in a few months.


Once underway it will first trade silver. The Chinese regional exchange recently phased out of gold trading and is setting up to trade silver in the domestic currency – the RMB. Accounting will take place monthly and will be held in private facilities, not with bullion banks. That way they cannot illegally hypothecate the silver. No 350 to 1 leverage. Only trading for cash delivery. In the final analysis this new vehicle will be out of the hands of the Elitists – it will function far better and draw major international players.

If you are looking for a reason for the attack on silver this past week just look at the gold cartel’s net short position, that rose from 160,000 contracts on 12/31/11 to 229,000 just a week ago. The total net silver short rose from 14,000 to 39,000 an increase of 178% as silver rose 30%.

Silver was on its way to break $40.00 and gold $1,800.00, and something had to be done or the criminals were about to lose control and a lot of money.

We don’t write much about gold and silver even though they are our favorites as investments and have been for 53 years. As a result of the historic value gold and silver have been the only lasting objects of true value over the last 6,000 years. The elitist central bankers have over and over attempted to change that with little success. The power of bankers in modern times began with the 1600s after the collapse of the Hanseanic League – an event as devastating as the fall of Maritime Venice in 1348, which just happened to be the year of the plague in which half of the people in Europe died. Here we are back at square one again, as the bankers go for total control again. The fractional banking system is in the process of imploding as it has so many times before. The debtors either cannot pay what they owe on payable debt that has saturated the system. Thus, the bankers are about to be again financially destroyed. It is time for creditors to be destroyed.

The last leg of our current problems began on 8/15/71, when the dollar had been so undervalued that gold backing was removed and the dollar, the world’s reserve currency, was left to float as just another fiat currency. The dollar stability created by gold was gone and it was only a matter of time before it lost 98% of its value, which is what has happened over the past 41 years.

Unfortunately, other nations have been doing much the same thing and face the same end. Today’s euro is a good example, a currency that should never have been created. Once backed 15% by gold is now backed 7% due to the ECB’s joining into the game of gold and silver suppression. Mostly secret sales of gold to artificially suppress its price, so that investors would not want to own it as opposed to real estate, stocks and bonds. As a result we have two currencies that are failing simultaneously. We are often asked why does the dollar index hold up the way it does? That is because the USDX is really next to worthless. Seven major fiat currencies versus the dollar, how dumb can that be? Nothing versus nothing. The only way to access the value of any currency is versus gold and silver. That is why between 8/15/71 and 1/15/80 gold rose from $35 to $850. That was far, far better than the Dow. Is it any wonder the banker elitists have suppressed gold and silver prices for so many years? It is the only real money and they know that.

It has been legal since August 1988 to manipulate market prices due to the Executive order signed by then President Ronald Reagan called the “President’s Working Group on Financial Markets.” During the 1960s, 70s and 80s, the Fed and the Treasury manipulated the gold and silver markets illegally at will. We know we watched them do it. We wrote and complained about it and it went nowhere. During that timeframe at least 60% of all gold sales were by central banks. Since 2000 some 1/3 to ½ of sales were by central banks to suppress prices.

The events that shaped the bull market in gold and silver were the sale of gold by Great Britain at or near the bottom of the market in 1999 to bail out banks that were short and the topping out of the stock market dotcom rally in March and April of 2000. The real estate craze was still a few years away. In reference to the British sales, it was verified that the big buyer of half of the British gold that was sold was to save two major banks.

Over the past 12 years central banks sold physical gold, leased gold that is tantamount to selling and using derivatives to suppress prices. Central banks and the IMF say they have 33,000 tons of gold. No one knows what they have because they never tell the truth. Our guess is they have between 5,000 and 15,000 tons, all of the rest has been sold. Such market manipulation has given citizens in all countries an unparallel opportunity to purchase gold at prices far below its actual real worth. Based on these circumstances not only does gold offer safety in an inflationary world, but it also offers an opportunity for some to become fabulously wealth. Based on this evidence for the past several years many sovereign states have been gold buyers and we expect to continue in an increasing way. They certainly do not want to get caught up in the vortex that will consume all fiat currencies in the end. The death spiral is already in process and that is why all investors should be buying gold and silver coins, bullion and shares. No matter what the financial elites do they cannot hold back the tide of history.

Over the next several years the game that we have been entrapped in for many years will be over. We will return to a gold backed currency. Remember, he who has the gold makes the rules.

Theinternationalforcaster.com

Global Research Articles by Bob Chapman

© Copyright Bob Chapman , Global Research, 2012

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Pete Comley
19 May 12, 10:34
Update on China Silver Exchange

Does anyone have an update on whether the silver exchange in China is going to happen after the demise of PAGE?

I can't find any reference to it anywhere online?


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules