Rigged Rates, Rigged Markets

http://www.nytimes.com/2012/07/03/opinion/rigged-rates-rigged-markets.html?_r=1

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?

Gold market is not fixed, it's rigged

http://news.goldseek.com/GATA/1281888000.php

The change in price between the AM Fix and the PM Fix are cumulatively making a trend which is increasingly losing money in a very strong bull market! Clearly the fixes are not being set to “clear the market” but are being manipulated to suppress the gold price.

What this shows is that the more gold rises over night in essentially Asian markets the more it is sold down into the PM fix. This was exactly the modus operandum of the London Gold Pool but now it is being done covertly.

Jim Rickards on rigged markets

Jim Rickards can rant much better than I can, plus his resume is much more impressive than mine. Having said that, our brief correspondence confirms he and I share the same views on the economy and the rot in our financial systems.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/4/26_Jim_Rickards%2C_Trust_in_Free_Markets_is_Dead_.html

Silver manipulation in progress

A whistleblower gave advance warning to the CFTC, the regulatory body which watchdogs the futures markets, about an illegal manipulation scheme about to take place in the silver market at the COMEX exchange. The price action behaved exactly as scripted on the target date, February 5, 2010, when non-farm payroll numbers were released at 8:30 AM ET. Within a few minutes, the price of silver then experienced a waterfall decline.

When allegedly free markets are that predictable with that much precision, then they are no longer free--rather they are rigged.

Read the series of emails chronicling the correspondence between whistleblower Andrew Maguire and the shiftless CFTC regulator.

http://www.gata.org/node/8466

If the government can manipulate markets up...

they can certainly manipulate markets down with intervention in the derivatives markets, whether the underlying asset classes are equities or commodities (precious metals and energy).

http://ftalphaville.ft.com/blog/2010/01/06/120796/trimtabs-on-that-%E2%80%98us-government-rigged-stock-market/

Rigged markets force investors to become speculators--trying to front run big players, especially if the 800-pound elephant is Uncle Sam himself. Deciphering financial statements is no longer enough. There is no such thing as a free market anymore, and participants should understand that before venturing down into the deep end of the pool.