Gangsters Manipulating Gold and Silver Prices

May 14th, 2013

Peter Nolan

by
Paul Craig Roberts
PaulCraigRoberts.org

Recently
by Paul Craig Roberts: Iraq
After Ten Years

There are
many signs of gangster state America. One is the collusion between
federal authorities and banksters in a criminal conspiracy to rig
the markets for gold and silver.

My explanation
that the sudden appearance of an unprecedented 400 ton short sale
of gold on the COMEX in April was a manipulation designed to protect
the dollar from the Federal Reserves quantitative easing policy
has found acceptance among gold investors and hedge fund managers.

The sale was
a naked short. The seller had no gold to sell. COMEX reported having
gold only equal to about half of the short sale in its vaults, and
not all of that was available for delivery. No one but the Federal
Reserve could have placed such an order, and the order came from
one of the Feds bullion banks, one of the entities too
big to fail.

Bill Kaye of
the Greater Asian Hedge Fund in Hong Kong and Dave Kranzler of Golden
Returns Capital have filled in the details of how the manipulation
worked. Being sophisticated investors of many years of experience,
both Kaye and Kranzler understand that the financial press runs
with the authorized story planted to serve the agenda that has been
put into play.

Institutional
investors who have bullion in their portfolio do not want the expense
associated with storing it securely. Instead, they buy into Exchange
Traded Funds (ETF) and hold their bullion in the form of a paper
claim. The largest, the SPDR Gold Trust or GLD, trades on the New
York Stock Exchange. The trustee and custodian is a bankster, and
only other banksters are able to turn investments into delivery
of physical bullion. Only shares in the amount of 100,000 can be
redeemed in gold.

The price of
bullion is not set in the physical market where individuals take
delivery of bullion purchases. It is set in the paper futures market
where short selling can drive down the price even if the demand
for physical possession is rising. The paper gold market is also
the market in which people speculate and leverage their positions,
place stop-loss orders, and are subject to margin calls.

When the enormous
naked shorts hit the COMEX, stop-loss orders were triggered adding
to the sales, and margin calls forced more sales. Investors who
were not in on the manipulation lost a lot of money.

The sales of
GLD shares are accumulated by the banksters in 100,000 lots and
presented to GLD for redemption in gold acquired at the driven down
price.

The short sale
is leveraged by the stop-loss triggers and margin calls, and results
in a profit for the banksters who placed the short sell order. The
banksters then profit again as they sell the released gold into
the physical market, especially in Asia, where demand has been stimulated
by the sharp drop in bullion price and by the loss of confidence
in fiat currency. Asian prices are usually at a higher premium above
the spot prices in New York-London.

Some readers
have said dont bet against the Federal Reserve; the
manipulation can go on forever. But can it? As the ETFs such
as GLD are drained of gold, their ability to cover any of their
obligations to investors diminishes. In my opinion, these ETFs are
like a fractional reserve banking system. The claims on gold exceed
the amount of gold in the trusts. When the ETFs are looted of their
gold by the banksters, the gold price will explode, as the claims
on gold will greatly exceed the supply.

Kranzler reports
that the current June futures contracts are 12.5 times the amount
of deliverable gold. If more than 8 percent of these trades were
to demand delivery, COMEX would default. That such a situation is
possible indicates the total failure of federal financial regulation.

What the Federal
Reserve has done in order to maintain its short-run policy of protecting
the banks too big too fail is to make the inevitable
reckoning more costly for the US economy.

Another irony
is the benefactors of the banksters sale of the gold leeched from
the gold ETFs. Asia is the beneficiary, especially India and China.
The get out of gold line of the US financial press enables
China to unload its excess supply of dollars, accumulated from the
offshored US economy, into the gold market at a suppressed price
of gold.

Kranzler
points out that not only does the Feds manipulation permit
Asia to offload US dollars for gold at low prices, but the obvious
lack of confidence in the dollar that the manipulation demonstrates
has caused wealthy European families to demand delivery of their
gold holdings at bullion banks (the bullion banks are essentially
the banks too big to fail). Kranzler notes that since
January 1, more than 400 tons of gold have been drained from COMEX
and gold ETF holdings in order to satisfy world demand for physical
possession of bullion.

Again we see
that institutions of the US government are acting 100% against the
interests of US citizens. Just who does the US government represent?

May
14, 2013

Paul
Craig Roberts, a
former Assistant Secretary of the US Treasury and former associate
editor of the Wall Street Journal, has been reporting shocking cases
of prosecutorial abuse for two decades. A new edition of his book,

The
Tyranny of Good Intentions,
co-authored with Lawrence Stratton, a documented account of how
americans lost the protection of law, has been released by Random
House. Visit his website.