Gold reserve mysteries

Why is it that every financial scandal, bubble bursting, allegations of fraud or manipulation, always have Lawrence Summers' name attached to it?  After all, he's supposed to be the genius PhD economist from Harvard.  Yet, here is curriculum vitae:

1) Summers was part of the triumvirate of Robert Robin and Alan Greenspan who convinced President Clinton to deregulate the financial services industry--against the advice of Brooksley Born who was concerned about the over-leveraging of global financial markets.  Clinton admitted it was one of the biggest mistakes of his Presidency--that, and the repeal of the Glass-Steagall Act under his Administration.  Lo and behold, global financial and credit markets did collapse in 2008 from banking over-leverage and plummeting collateral values.

2) Summers dismissed pleas from the Winklevoss twins in their case against Mark Zuckerberg's alleged theft of the Facebook  business model.  He arrogantly and admittedly viewed the matter as insignificant.

3) Harvard's endowment fund, the largest among universities, plummeted under his watch.

4) He has repeatedly confirmed the creditworthiness of the US Treasury, despite its credit ratings downgrades and unsustainable debts and deficits.

5) He has repeatedly defended the USDollar's store of value, despite its sinking value relative to other foreign exchange currencies, and especially relative to gold.

6) As US Treasury Secretary, and head of the Exchange Stabilization Fund, he oversaw the surreptitious sales, swaps, and leasing out of the Treasury's gold reserves at rock-bottom pricing.

In summary, he
1) missed the biggest financial bubble in 80 years,
2) missed the significance of Facebook in our every day lives,
3) had Harvard's endowment long on equities, when they should have been hedged,
4) he continues to deny the deterioration of US Treasury finances,
5) he continues to deny the USDollars' plummeting purchasing power,
6) he sold at clearance prices the US Treasury's gold reserves.

Aside from his arrogance, exactly how does Summers continue to hoodwink financial experts, the media, government bureaucrats, and academia into believing his genius?  He's about as wrong-headed as a dyslexic fortune-teller.

http://www.goldmoney.com/gold-research/alasdair-macleod/gold-reserve-mysteries.html?gmrefcode=gata

Lawrence Summers quote

“How long can the world’s biggest borrower remain the world’s biggest power?”

  - Lawrence Summers, former US Treasury Secretary

To fix the economy, fix the housing market

http://blogs.reuters.com/lawrencesummers/2011/10/24/to-fix-the-economy-fix-the-housing-market/

The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending.  

And people wonder why our economy is failing.  Lawrence Summers is acknowledged as an economics genius, serving as President Clinton's Treasury Secretary, head of President Obama's National Economic Council, and President of Harvard University.  Yet, this opening statement in this article clearly delineates why our global financial system is on the verge of collapse.  He aims to solve overconsumption and indebtedness with more consumption and piling on more debt.  Genius.

The Fed is selling paper gold and buying physical gold

And JPMorgan is the Fed's proxy bank.

http://www.financialsense.com/contributors/rob-kirby/the-federal-reserve-is-selling-paper-gold-and-buying-physical-gold

The academic research that outlines the inter-relatedness of gold and interest rates is succinctly laid out in a 2001 treatise, Gibson's Paradox Revisited, by Reg Howe. From this one can deduct that ANY rigging of the gold price must go hand-in-hand with simultaneous rigging of interest rates.

Folks would do well to realize how neatly emerging details of Fed surrogate Morgan’s ‘stealth’ activity in the bullion market dovetails with their obscene, obsequious activity elsewhere in their derivatives book – particularly their JUMBO TRILLIONS sized interest rate swap positions.

Stealth activity on the part of the Fed – utilizing proxy institutions to generate limitless artificial demand for any and all U.S. Government Debt – effectively gives the Fed control of the long end of the interest rate curve [the bond market].

From a timing perspective, it is also noteworthy that gold price rigging – long maintained by GATA – is alleged to have begun in earnest during the Clinton Administration with the appointment of Robert Rubin as U.S. Treasury Secretary [along with understudy Lawrence Summers] in Jan. 1995. Coincidentally [or perhaps not?] we can trace the genesis of the “explosion” in the use of derivatives [mostly interest rate] to that exact same time frame. In fact, if we follow the time line in ‘reverse’ – the growth in the use of derivatives appears like a trail of bread crumbs – right back to the time when Professor Lawrence Summers, under the tutelage of Sir Robert of Rubin, brought his academic alchemy to Washington:

Does anyone with a pulse really believe that ANY Bank Holding Company in the U.S. would be permitted to have a derivatives position in excess of 75 TRILLION [five times the size of U.S. GDP] if they were not ‘in bed’ with the FED????

If you except the premise that, “J.P. Morgan “is” the Fed”, then, “IT’S REALLY THE FED WHO IS BUYING GOLD” and they [unfortunately, this means “America”] likely have NONE LEFT to sell.

NOTHING could be more bullish for the price of gold going forward.

Everyone needs to get it through their heads; these criminals are NOT IN IT for profits. The survival of our “BROKEN FIAT MONEY SYSTEM” “IS” their only goal.
Conclusions:

Officialdom will never admit it and it will NEVER be reported in the mainstream financial news but our financial system has NEVER been in a more precarious state. A banking crisis of unparalleled proportions is coming – probably soon – the exact timing is still sketchy.

Got physical precious metal yet?

Lawrence Summers is out

Surprise, surprise...not. Hailed as a financial genius by the financial press, Summers--along with Robert Rubin, Alan Greenspan, and Ben Bernanke, will go down in history as causing the collapse of the United States, in my humble opinion.

http://www.washingtonpost.com/wp-dyn/content/article/2010/09/21/AR2010092104828.html

The Keynesian end point is approaching, and the collapse of the USDollar and global financial system as we know it will accompany it.

Clinton throws Rubin and Summers under the bus

Former President Clinton finally throws Rubin and Summers under the bus for leveraging up our financial systems with toxic derivatives.

http://blogs.abcnews.com/politicalpunch/2010/04/clinton-rubin-and-summers-gave-me-wrong-advice-on-derivatives-and-i-was-wrong-to-take-it.html

How Harvard blew up

Lawrence Summers, former Harvard President and now Obama's lead economic adviser, almost drove Harvard's enormous endowment fund into insolvency by placing wrong-way bets on interest rate swaps. Now he's doing it again with our government finances.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aHQ2Xh55jI.Q

CNBC exposes gold suppression by the Fed

I almost choked on my juice this morning when I saw this segment on CNBC, when Rick Santelli blurts out that Lawrence Summers, former Treasury Secretary and current National Economic Policy director, published a paper on the suppression of gold prices by central banks. Watch the whole 10 minute segment:

http://www.cnbc.com/id/15840232?video=1339705681&play=1

In fact, Summers' white paper was coined (pun intended) "Gibson's Paradox and the Gold Standard", and is available here:

http://www.gata.org/files/gibson.pdf

The willingness to hold the stock of gold depends on the rate of return available on alternative assets. We assume that the alternative assets are physical capital and bonds, both earning a real rate of return r.

The economic mechanism is clear. Increases in real interest rates raise the carrying cost of nonmonetary gold , reducing the demand for it. They also reduce the demand for monetary gold as long as money demand is interest elastic. The resulting reduction in the real price of gold is equivalent to an increase in the general price level.

Santelli basically validates to mainstream financial TV audiences what gold bug conspiracy theorists have been clamoring about for at least a decade--that it's in the central banks' best interests to keep a lid on the price of gold, in order to keep interest rates low. Low interest rates allow central banks to fund deficits at a lower cost.

The guest speakers in the segment speculate that gold, once unshackled by central bank suppression schemes, will eventually be re-priced to its natural price, somewhere north of $11,000, based on supply and demand fundamentals.

Now THAT sounds crazy, but given the USDollar's demise, it is no longer unthinkable.