I extend a hearty welcome and thank you to the “Tylers” at www.Zerohedge.com !!! They posted a piece today exposing the “smoking gun” of Gold manipulation (The Fed On Gold Price Manipulation) in a letter written from Secretary Arthur Burns to President Ford back in 1975. When I say a “hearty welcome” I am saying “welcome to the club finally” because even though they have written on Gold, they have always (until recently) sounded skeptical of the suppression schemes. I think a few months back I wrote a complimentary piece because Zerohedge looked like they were finally coming around to the knowledge that yes, Gold prices in fact are and have been manipulated for years on end. This letter from Arthur Burns really is a big deal and is a huge smoking gun. This is not “new news” by any stretch, it definitely IS BIG information and really great that Zerohedge has caught up and decided to disseminate this (again as they first posted nearly 2 years ago) because their readership base is so huge. So, thank you Zerohedge for passing this critical information along (again) and welcome to the club of human lunatics that know the price of Gold is manipulated.
What I don’t understand is why their reluctance to hammer away at this very “core of the core” issue. If your valuation of “money” (currencies) is false, then what does that say about how you value anything from a bag of popcorn to a multi national corporation? How can investors make any evaluation of equity values, interest rate levels, inflation rates etc. if the “currency” being used is not valued correctly? THIS is how mal investment occurs and how investors get “duped” into all lining up on the same side of the ship, only to “shift” all at once and we know what happens when this occurs!
Gold is THE yardstick by which EVERYTHING is measured! It is obvious that all central banks and all governments have the desire and vested interest in shaping or stretching this yardstick to fit their “story”. Why is it that the phrase (fact) that “governments manipulate the price of Gold” is THE phrase that raises the most eyebrows, receives the most vehement rebuffs and places the originator amongst the “fringe lunatic conspiracy theorist” camp? I mean think about it, WHY wouldn’t Gold and Silver be manipulated? Their price manipulation has more “effect” (affect) than anything else that can be done. Could the LIBOR rates have been artificially pushed down if Gold was trading at a true level at multiples higher than it has? Of course not. Could the Treasury have conned the world into buying their bonds (up until a couple of years ago when the Fed had to step in because the buyers stepped back) if Gold was trading at $10,000 per ounce and going higher based on fear of the U.S. not being able to pay their bills?
What about the housing market? Could that have ever gone into a bubble if interest rates were much higher than they were because bond buyers were watching the Gold price go up and either didn’t buy or began to sell their Treasuries? How about the stock market? Could that have done what it did leading up to the 2007 peak with high interest rates? Could PE ratios have reached as high as they did in 1999-2000 if Gold wasn’t trading at $270 per ounce? Of course not. My point is this, there is every reason in the world for government TO MANIPULATE the prices of Gold and Silver, Since government is run by politicians (dishonest to the core), are there any reasons NOT to manipulate Gold and Silver? EVERYTHING else gets pushed around, massaged, falsified or whatever for the “public good” (consumption), so why is it so hard to believe? Politicians lie about everything, steal anything that is not nailed down, yet we are supposed to believe that all of the Gold is in Ft. Knox without audit for over 50 years and that Gold is the ONLY thing on the planet not manipulated? Huh? What kind of logic is this? Doug Casey want to take a crack at this?
As far back as the early 90′s I used to converse with the late Harry Bingham of Van Eck regarding Gold and the strange reactions it would have to certain events. We couldn’t explain “why” Gold started acting “differently” but we knew something was wrong because the action defied logic and fundamentals. It wasn’t until the year 2000 that I came across the GATA website and finally “it” began to click. I knew something wasn’t right but Harry just couldn’t initially “go there” (come to the realization that Gold was not being freely traded) as saying this would sound like sour grapes since he was a Gold money manager. In any case, we were really “on to something” and GATA (Bill Murphy and Chris Powell could not have come along at a better time for me personally). I had done the logic and come to the conclusion that the ONLY explanation could be price manipulation, reading GATA’s missives helped me from a “mental standpoint” as more and more evidence was revealed (I then had proof that I did not belong in a mental institution!). In any case, GATA was on to this and went public before ANYONE. If Zerohedge really wanted to stir a commotion while performing a public service and disseminating the truth, all they would need to do is publish a full “data dump” of the evidence that GATA has compiled during the years!
P.S. Thinking back, I believe that the very first large scale “futures manipulation” of Gold was on Oct. 20th 1987. Yes, the day after the crash when “mysteriously”, Value Line futures were bought which stemmed the tide of the crash while Gold futures were SOLD and sold and sold. I can still remember my Merrill Lynch branch manager running out on to the floor yelling…”they are selling Gold and buying Treasuries! Yields are finally dropping! Do you know what this means? Investors have more faith in the U.S. Govt. than they do in Gold!” I was very young and green then, it took me a little while to figure out the “con”.