More Gold Manipulation, the Birth of PPT, Dollar Beatings, IMF Shenanigans, and the Great American Looting to Which You Were Not Invited
This was too good to keep to myself and sums up the shenanigans perfectly. How much longer can PPT keep gold low and sneak out what remains to China? And why would they want to do such a thing?
Yes, well, the answer to that question should be painfully obvious to you by now, dear reader. If it is not, you are welcome to e-mail me and I'd be happy to explain what the asshats have to gain by such behavior in as simple a way as I can. After all, this may seem complicated however it is incredibly, almost unbelievably simple I swear. So simple that you didn't even know they've been doing it all along. Oh now that is clever.
Via Midas Letter (the article in its entirety is an absolutely recommended read, by the way):
Such market manipulation, not just in gold but all financial markets, were officially endorsed in the U.S. when the "The President's Working Group on Capital Markets" (aka the PPT) was established in 1987 as a response to the stock market crash. However, the 'spirit' of these tactics turned to the 'dark side of the force' in 2001, essentially at the time of 9/11.
In other words, what was once a defensive, overt policy created to enable action in the face of near-term issues, at that point morphed into a 24/7 covert action targeting the long-term manipulation of public perception.
And it's no surprise that under this ruse a monstrous housing bubble was born, as well as the birth of the financial engineering (such as OTC derivatives) that has directly caused the economic calamity we are facing today. With the "gold alarm bell" turned off by its illegal suppression, the capping of interest rates, the support of stock markets (via the PPT), and unending bailouts of insolvent entities, the resulting financial imbalances have pushed the U.S. into an economic abyss that it will likely never re-emerge from.
1. Around that 2001 time frame, a number of forces converged to mark the peak of U.S. global hegemony, including: the top of the dollar index,
2. the accelerated loss of the U.S.'s manufacturing base, particularly to China
3. the top of the stock market
4. the bottom of the commodities market
5. the bottom in inflation, both "officially" (via the massaged CPI) and practically
6. the bottom of the gold price
7. the beginning of Bush's "war on terror", yielding the subsequent acceleration of worldwide anti-American sentiment
It was also around that time that the U.S. "Strong Dollar Policy" started to rear its ugly head from the obscurity which it came from.
Any of these quotes ring a bell?
January 2009: In his confirmation hearing with the Senate Finance Committee, Treasury Secretary Nominee Tim Geithner said that a "strong dollar is in America's National Interest."
January 2009: "A strong dollar is clearly in our nation's interest," U.S. Treasury Secretary Henry Paulson repeated last Thursday at a White House briefing on the economic stimulus package.
October 2007: U.S. Treasury Secretary Henry Paulson said on Friday that he believes a strong dollar is in our nation's interest".
January 2005: US Treasury Secretary John Snow said on Friday that the US government remains committed to the so- called "strong dollar" policy.
December 2004: President Bush said Wednesday "The policy of my government is a strong dollar policy."
February 2001: Treasury Secretary Paul H. O'Neill insisted today that the Bush administration is committed to maintaining a strong dollar policy.
September 1999 (for historical context): In his speech yesterday and in a separate interview, Treasury Secretary Summers repeated word for word former Treasury Secretary Rubin's mantra that a strong dollar is in the interests of the United States.
Notwithstanding, the U.S. dollar index has fallen by roughly 35% during this period due to the seven aforementioned factors, not to mention government monetary and fiscal policies that easily challenge the most inflationary of recorded history (which are becoming more maniacal with each passing day).
As GATA, or the Gold Anti-Trust Action Committee, has detailed for a decade now, the "Strong Dollar Policy" is nothing more than a ruse aimed at maintaining confidence in an "emperor with no clothes", in other words the dollar. The linchpin of this "policy", of course, is to artificially suppress the price of gold, principally with paper positions in the futures and OTC derivatives markets, based on Larry Summers' interpretation of "Gibson's Paradox" a 1930s Keynesian doctrine essentially stating that inflation expectations move inversely to the gold price.
Summers, the U.S. Treasury Secretary in 1999-2001 and currently Obama's chief economic advisor, is, together with ex-Treasury Secretary Robert Rubin, the father of the gold suppression scheme. This "policy" thrived under Federal Reserve Chairman Alan Greenspan, who overtly stated in 1998 that "central banks stand ready to lease gold in increasing quantities should the price rise". And of course, current Treasury Secretary Geithner was head of the New York Federal Reserve during this time, while current Fed Reserve Chaiman Bernanke (remember him?) was Greenspan's protégé.
Making sense yet, kids? Good, I'd hoped it would.
p.s. GATA is still trying to track down our gold. I wish them the best of luck as they have 12 castles and Bowser to defeat before they get to that particular princess.