As we documented in previous articles, the gold price is driven down in the paper futures market by naked short selling by the Fed’s dependent bullion banks. Some people have a hard time accepting this fact even though it is known that the big banks have manipulated the LIBOR (London Interbank Overnight Rate – London’s equivalent of the Fed Funds rate) interest rate and the twice-daily
Almost every week it is possible to illustrate the appearance of a large number of contracts shorting gold at times of day when trading is thin. The short-selling triggers stop-loss orders and margin calls and hammers down the gold price.
The Fed has resorted to this practice in order to protect the value of the US dollar from Quantitative Easing.
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This sounds like a bubble that will eventually burst, and at that time 2 things will happen:
ReplyDelete1) Gold price will skyrocket
2) The dollar will lose much of its perceived value, and inflation will skyrocket out of control.
The corrupt Fed will lose when their dirty little games can no longer artificially keep the price of gold down and the dollar value up. The BRIC nations are buying up gold and selling US treasury notes as furiously and quick as than can. Meanwhile we and our bankrupt Europeans buds are accumulating unprecedented debt as fast as we can. The Fed is like the little Dutch boy with his finger in the hole in the dam when while millions of gallons of water are growing and pushing the whole dam like a bubble towards the little dummy. After that at LEAST two things will happen:
ReplyDelete1. Gold price will skyrocket
2. The dollar will be worth a percentage of its former value which means conversely, gold will be worth lots more of them.