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?

State deficits

To my friends who insist we are in an economic recovery, I submit this piece:

http://www.wnyc.org/news/articles/154198

Especially poignant, and illustrative of the madness of fractional reserve financial systems:

"States can’t go into bankruptcy. They are not included in the bankruptcy code," he says.

Today’s outlook is different from the city's fiscal crisis of the 1970s when the state couldn't find any lenders. Instead, he says, bankers are circling Albany with tempting offers.

"The financial community is ready to lend the state all kinds of money. They have 20-odd schemes they are suggesting about how the state can borrow money," Ravitch says.

But New York has to be careful; borrowing would dig the state even deeper into fiscal trouble. Ravitch says New York is not alone: all 50 states are facing a total of $350 billion in deficits and more than $2 trillion in unfunded pension liabilities.

So Lt. Governor Richard Ravitch believes banks offering "20-odd schemes" of lending the state more money is beneficial? Could these "schemes" include derivatives and interest rate swaps, which have managed to destroy cities, states, and whole sovereign countries (see Greece)? I also like the following editorial comment,

But New York has to be careful; borrowing would dig the state even deeper into fiscal trouble.

Really? That's brilliant insight right there. Welcome to the world of comedic tragedy.

Look, no one says the nation's GDP isn't recovering--it is. But we are bouncing off the bottom. And due to systemic rot in a financial system full of off-balance, unaccounted-for toxic assets, no amount of window dressing of economic data or financial "reform" will result in sustainable economic recovery.

Toxic derivatives torpedo municipalities

http://www.bloomberg.com/apps/news?pid=20601109&sid=a30KHZKX1WJo&pos=10

There's a reason why:

Billionaire investor Warren Buffett, chairman of Berkshire Hathaway Inc., in 2003 called derivatives “financial weapons of mass destruction.”

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