The Most Important Question about Gold and Silver Price Suppression, Answered!
A Change of Plans
I was going to write on a different topic today, but I had someone ask me a question, prompted by an exchange he’d read from a certain guru, Mr. Martin Armstrong. The exchange was about whether or not gold and silver were being actively suppressed by banks and governments.
Armstrong continues to come against the argument of long-term suppression, but this shield brother’s question is so crucial, that once I read it, I knew I had to write on this topic immediately. It is becoming more and more important every day, for everyone possible to understand why the manipulation is prosecuted and ongoing, even more than who is doing it or how.
The question basically goes like this, and I’m sure you’ve heard it too by this point:
“Why would the governments(and large banks who run them) care about suppressing gold and silver for the long haul? There’s not alot of cash to be made in rigging these things ‘perpetually’, so why would the banking cartel choose to suppress silver and gold?”
This question keeps coming up over and over, and the answer is so important that it bears repeating, especially since some newcomers to precious metals are just now getting involved in this fight.
The number of voices out there still hilariously clamoring to defend the gold and silver markets as “freely and fairly-traded” and “totally legitimate” are are shrinking faster than the real U.S. job market. It has now become apparent to all but the most willfully blind, that there are serious, serious problems of price suppression within the precious metals’ futures trading space.
So let’s address a few of Mr. Armstrong’s actual words, but not before we clear something up first.
It Is Historical Fact
First of all, anyone who’d deny that governments and banks couldn’t or wouldn’t suppress precious metals’ prices for very long periods of time, isn’t very savvy in the history department. After all, it’s barely half a century since Charles de Gaulle helped destroy the gold market riggers in the 1960’s by taking delivery of vast tonnage of gold, on behalf of France, from the London Gold Pool. The London Gold Pool was constructed by the Anglo-American banking powers, to hold gold’s exchange rate down at a price of $35 per ounce.
Eventually they had to abandon this price fixing scheme, due to the tremendous loss of gold, but salient point remains: it is historical fact that banks and governments have felt that it is within their own best interests, to suppress the price of gold. They’ve repeatedly demonstrated that doing so for long periods(literally decades at a time), isn’t really that difficult, when you own most of the world’s investment-grade gold.
This is elementary stuff, but another point I wanted to bring up, that nearly no one else mentions, is that the classical gold standard (and most gold standards in general) by definition, is purely a long-term price suppression scheme.
That’s actually all a gold standard is!
It is a group of governments and bankers, who own gargantuan stockpiles of gold, all agreeing on a price which they think is fairly sustainable, in which to either print currencies as a derivative of that stockpile of gold(in a worst case scenario), or in which to put a piece of gold in your hand(in the best case scenario).
It doesn’t matter what the gold standard’s rate of exchange is: whether $20, or $35, or $35,000 an ounce, if they all “agree” on the exchange rate to peg gold at…..then it’s not a freely and fairly-traded rate, and the people living under it will simply be eventual victims of another generational, monetary scam, repeating the terrible cycle all over again.
That is why this Watchman opposes the gold standard! A gold standard, in our modern contexts, is nothing but price rigging, and price suppression. It took me many years to get here, but several commentators, such as Mike Maloney have made me realize that a gold standard is just a gigantic scam that allows those at the top of the money pyramid to grant their crushing pyramids of debt, a longer lease on life.
It affords all the power to those who deserve it least!
I’m not for a gold standard, but for simply gold and silver in the hands of the people, trading freely against any other currencies(whether government or private) in any form.
With that said, let’s take a look at part of a response that Mr. Armstrong wrote to a reader, when asked if the day would come where he’d acknowledge gold and silver price suppression:
Sorry – that day will never arrive. It is pure BS used to sell the metals. Look at it this way. WHY buy something that can never rise if these stories are true? It makes no sense whatsoever. I remain bullish long-term BECAUSE there is no such suppression. If there was, it cannot be a free market so write it off.
The decline in the metals is in line with the global economy. Come on – look at oil !!!. The metals will rise. They are NOT perpetually suppressed. The time is just not right. What would the banks, who care only about the next quarter’s trading profit, keep the metals suppressed without profits to pay regular bonuses? EVERY manipulation they have EVER done with the metals is to make fake rallies because they KNOW the gold promoters will talk everyone into buying. To many – reason flies out the window. This has become a religion to perpetually hold rather than trade. The manipulators get to sell those rallies and make a fortune….
There is NO money for them to perpetually suppress the metals. If there is no profit, they are not there. Sorry. A manipulation stands out because it is abnormal. The metals are in perfect sync with the global sectors of markets. Even the Platinum manipulation bribing Russian officials to recall all platinum sent prices up. They need people to buy in order to sell the highs. You make 10x more in a short-sale at the high is less time than a buy and hold for decades be it stocks or metals. That is HOW they make a fortune. Not by trickle down bear markets. They know the gold believers will hold until they lose everything. They want the big bang for the buck and that comes with creating fake rallies.
Now, the more hardened vets among our shield brother camp, were probably going through those lines, laughing and punching holes in each one. The number of mistakes and half-truths could rival the stars in the firmament, so I’ll just restrict my rebuttal to a few of his more important statements, Let’s take a look at this one first:
“I remain bullish long-term(on gold and silver) BECAUSE there is no such suppression. If there was, it cannot be a free market so write it off.”
That is pure hogwash! Just because a market can be rigged for long periods of time, does not mean it will always be rigged. The London Gold Pool(and the current Washington D.C./Wall Street/City of London gold pool), lost their multi-decade struggle because enough folks caught onto their scam of putting too many claims upon each ounce in the vault.
This is exactly what is happening again right now.
You are watching history rhyme against its earlier stanzas. Washington and London are losing their fight to sustain a suppressed, dollar price of gold, because the world(and an Eastern Bloc of countries) has learned of their tricks,and is now rejecting fiat debt notes, called U.S. dollars, and buying up too much gold(and silver) for the scam to continue.
The real reason to be bullish on silver and gold is the precise opposite of what Armstrong says! It is because the gold and silver markets are in the last throes of a generational suppression scheme, that such an enormous opportunity in gold and silver exists. All price suppression schemes end, and all scammers get outed in the end.
Let’s see another point of Armstrong’s:
The metals will rise. They are NOT perpetually suppressed. The time is just not right. What would the banks, who care only about the next quarter’s trading profit, keep the metals suppressed without profits to pay regular bonuses?…..There is NO money for them to perpetually suppress the metals. If there is no profit, they are not there.
Ok, this point of Armstrong’s is so sophomoric, so simplistic, and so colossally ridiculous, that I have a great deal of trouble believing that he actually believes what he’s telling others.
Armstrong is too smart to say something this stupid.
If you remember nothing else I say in this article remember this: the banking powers do not suppress gold and silver to make fiat dollars directly…..
Rather, they suppress gold and silver to make fiat dollars possible!
The banks don’t suppress silver and gold to pocket a few of these:
But to prevent this:
It is precisely because the entire system is a Ponzi scheme, based upon the fraudulent notion that debt is money, and that debt is wealth, that the real “money” and power have always been in having a lease from the entire world, to create the world reserve currency, and possessing the credit rating that goes with it.
The real power has never been in pocketing dollars from miniscule trades(that’s how a guppie thinks), but in being able to issue unlimited quantities of them.
The banking, military, and political power that comes from having a system, owned entirely by central and bullion banks, is so vast, that it’s mind-boggling.
In fact, the power and wealth that flow from it is so great, that human beings don’t yet know where its limits are!
Case in point: the LIBOR scandal was a malevolent scheme that involved hundreds of trillions, hundreds of TRILLIONS of dollars, and ended up transferring so much wealth to those at the top, that we still haven’t completely gotten to the bottom of it!
If these financial institutions can rig something that was larger than even global GDP, by orders of magnitude….then the pertinent questions remain:
What can’t they rig?
What can’t they steer?
What can’t they suppress for their own sole benefit?
The answer is: nothing.
There is no market, no currency pool, and by extension….no group of people on earth, they can’t exert a measure of control over.
All this fraud is possible, due to the collusion of the money powers that have taken control of the world’s currency systems, all of which are based upon the cracked and fraudulent foundation of the U.S. fiat dollar standard.
This is one thing that Bix Weir is right about: without a game plan to rig and suppress the fiat dollars’ main competitors (gold and silver), the currency cannot survive. Any central planner worth his salt, knows that you must first have a game plan to hold the prices of precious metals in check, denominated in your currency(whatever that fiat currency is)…..or the prices of both metals will escape you, and then confidence in your currency itself will be destroyed.
This is why someone like Ted Butler (a brilliant man, whom I highly respect) has been so perplexed lately about why JP Morgan and Scotia Bank continue to “let the tech funds off easy” in the gold and silver futures trading arena. He doesn’t understand why the banks wouldn’t just simply refuse to sell their longs that they amassed when PM prices get too low. He has often wondered aloud why the banks don’t simply hang onto those longs and really, really make some big cash on the upswing.
Ted isn’t thinking big enough.
The reason why they don’t do that, is because it’s not chiefly about “making cash”…but rather “making cash possible”.
If silver did spike to say, $100 or $200 in a short space….yes, I suppose the big bank suppressors would pocket several billion dollars….but then there would be a worldwide run on silver and gold(that isn’t there), followed by a financial panic. The metals would fly to the stars, and the US dollar, and the entire financial system built upon it…..would cease to be.
Anyone who doesn’t see this one point, is not rightly seeing or understanding what silver and gold are. They are not commodities. They are not “investments”. They are money, they are currency.
Think about it, if you alone have the power to create dollars and extend credit based upon them, then you can finance whatever you want, to the tune of whatever amount you want!
Ya want war? Well, just ask Miss Yellen at the Federal Reserve to print up some more goodies, and issue a little more debt to anyone who wishes to buy it (locking in that debt at the lowest interest rates in history) and voila!
Perpetual trillions for your phony “war on terror”!
Ya want 50 million people on food stamps? Just print up some fresh Bennie bucks, and dole it out to the masses, as you pass the bill for it(with interest) onto the backs of the tax slaves under your debt pyramid!
Ya wanna rig key markets…..like LIBOR, like housing, like forex markets, like equities, like commodities, like bonds? Simply congregate enough large financial institutions together, build the best HFT trading platforms, make a few phone calls, send a few emails….and the world is your oyster!
For the banks to let the precious metals fly just to make some pocket change on the longs they hold, would be tantamount to killing the goose that lays the golden eggs!
This scam has always been about protecting the illusion of the system as a whole, the full “faith” in the U.S. dollar. Fiat currencies are a religion, a false one. It is mere belief that suspends them. They’ve always been, and will always be, confidence games, with emphasis on the “Con”.
This is a ridiculously truncated version of what I wanted to write, but you get the idea:
The contemporary, fiat currency system, which central and international banks constructed, is a model that’s built upon the bedrock of systemic fraud in multiple markets. The only way the system can continue is by constant expansion of currency and debt. The system has become so full of rot, that it can’t survive without fraud and constant rigging, especially of its perennial competitors: silver and gold.
The untold wealth and power these banks have amassed, comes from being able to steer world markets, whether currencies, or OTC derivatives, or bonds, or commodities, or real estate, and none of that steering is possible without the fiat, debt-based currency system it rests upon.
The monetary system itself is where “the money is”, and that is why the Powers that Be are willing to spend several trillion dollars a year suppressing silver alone! Even at a price tag that high, it is still well worth continuing.
A Ponzi scheme, which is built upon the erroneous notion that debt is money(which it isn’t), and that debt can be a wholesome, moral currency(which it can’t), isn’t a system that’s “long for this world.”
No edifice can long stand without a solid foundation of integrity, and no ponzi scheme ever invented has possessed integrity.
As a castle built upon the sand, so is this monetary system, which is built upon the shifting sands of central planning, debt-pyramiding, and chronic market-rigging.
The Tide is coming in, and will, thankfully, wash away every ill-conceived, wicked, and two-faced scheme of mice and of men…
Your silver(and gold) purchases are a large part of that tide, which is eroding the fragile foundations of worldwide fraud!
Your actions are making their actions a most untenable proposition! Keep them up!
When enough of humanity chooses honesty over fraud, freedom over central planning, and sound money over debt slavery, then and only then, will what is spoken in secret be shouted from the rooftops!
Only then will a better world be possible. We’re on the cusp of this real break-through, of this real change in the consciousness of mankind.
It is such an exciting time to be alive, brothers! Yes, while perhaps a little unnerving at times, but what journey, what roller-coaster, what great adventure would be complete without a few unnerving moments?
Don’t give a second thought to their scheme’s viability.
It will perish with gusto!
The world monetary system, like a sand castle near the water’s edge, was built by wealthy oligarchs, foolishly believing themselves to be gods. It isn’t the first time that oligarchs have played god, and it won’t be the last, either.
Their precious scam they’ve constructed, in the fullness of time, will wash away, and collapse under its own weight.
For its fate was sealed by its designers’ own folly and arrogance, before it was ever built…
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