by Steve Hickel
In 1971, the US created a bifurcated currency market forcing the gold and silver market between countries underground. Nixon took the US (and the rest of the world) off the gold standard and set the US dollar as a money based solely on the good faith and credit of the US and other currencies.
When the US did this, it set the stage for the Grand Depression of 2008. When the US forced the gold and silver market underground, it created an immoral market place in which the husband (the US government) hid its gold and silver purchases and sales from its wife (the US people). No democracy can function when the financial system is built on obfuscation and lies.
In fact, this is exactly what happened. The oil countries have always wanted gold and not dollars. When gold and dollars were one and the same, then they were fine with dollars. When Nixon removed the link of gold and dollars, the US scared the Oil countries. The oil countries began to wonder if they should continue to accept dollars or if they should simply go out and bid on gold. I believe they attempted to bid on gold in the early 70’s but were persuaded (if not by diplomacy, then by force) that the US would secretly link the dollar and gold for each barrel of oil sold. That may be why we saw and continue to see a 1 to 10 ratio of gold to oil (1/10th of an ounce of gold will approximately buy one barrel of oil).
Instead of setting an official gold price as was the practice prior to 1972, the US and the UK had to rely on the secretive gold markets to accomplish this feat. This worked for many years until the US started to print money and create deficits in an attempt to make the dollar the currency of choice and become the predominant world power. This concerned the rest of the world, including the Europeans, who were concerned that at some point the dollar would not be able to remain viable.
During the 90’s the US had financially destroyed the Iron Countries, but it had to deal with the saber rattling of Iraq and its attempt to control Middle East oil supplies. A new phenomenon surfaced: to wit, speculators, mostly far eastern, entered the secretive gold market and started redirecting the gold meant for the Middle East towards Asia. This caused great noise in the dollar:gold:oil ratio and threatened to cause a break in the supply of cheap oil supply for the US.
At the same time, the Europeans began discussions (secretly at first) of creating the Euro as an alternative to the dollar, in case the Middle East attempted to bid directly for gold again. Such a bid would drive gold through the roof and disrupt the supply of oil to both Europe and the US. Thus, it appears that one purpose of the Euro was to be a possible replacement or alternative for the US dollar as the world’s reserve currency. In the meantime, the LBMA (London Bullion Market Association, a secretive gold market in London), was seeing huge trades in gold that amounted often-times to more gold than was mined in one year.
Since the US can not trade directly in the gold market, it must work through secret proxies. As you can see, the US would have wanted to control the price of gold in order to control the price of oil. And so it appears that they did. By using its influence and in conjunction with London, the practice of leasing official gold reserves was the primary tool to control the dollar:gold:oil ratio.
The leasing of gold involved the backing of LBMA gold trades with official reserves. Much of these trades were simply paper. Some of the “official reserves” likely did end up in the hands of the Middle East Oil Countries, but much of it was an attempt to control the price of gold and thus oil. As the Asians entered the mix, however, some of these official gold reserves risked being diverted away from oil price control. Most of the trades were settled in paper, but some were not.
Some pundits estimated that this official leasing of gold has put from 10,000 to 15,000 tones (one-half of the official gold reserves of the G-7) of official reserves at risk. So, about 10 years ago, the Europeans decided to limit the amount of reserves that would be sold per year. This caused the US some concern. How would they maintain the price of oil if the Europeans did not want to play ball?
Moving forward to today. As you can see, the entire control of the price of oil depended on two major principals: control the physical security of the Middle East oil supplies and control the price of gold. We all know how the US has secured the physical supply of oil, but what most don’t know is how the US has controlled the price of oil.
Some of this is pure conjecture, due to the lack of transparency in the gold market today. But, it seems that ever since the Europeans limited the supply of their gold to control the price of oil in secretive gold markets, the US has had to resort to even more questionable and secret gold and silver market shenanigans. It appears that the US FED and perhaps Treasury are working through two or three banks, including JP Morgan Chase, to control the price of gold on the US COMEX futures trading market.
Proven by other gold-related papers on the web, the COMEX appears to account for a 92% negative influence on the price of gold. Every time other gold markets attempt to drive the price of gold higher, it is knocked lower in the US COMEX market. This was mathematically proven recently on the gold-eagle.com website editorial section.
Assuming any of the above has any merit whatsoever, the conclusion is that JP Morgan and possibly two other banks control the entire world price of gold (as proven by other gold-related papers on the web). In perspective, up to three or more US-based banks on public commodity-based futures markets now control the price of silver and gold at the apparent behest of the US government.
I repeat, in secret, three US banks control the price of gold and silver to control the price of oil. As we all know, if three or so US banks were to control commodities, the bankers behind such a feat would be in jail. Yet, they are not.
The only conclusion is that the FED or Treasury is behind this gold and silver and oil market manipulation. They have warned off the SEC and CFTC (the two US regulatory bodies that would investigate such matters). As such, these banks (and the traders within) hold INSIDER information about the price of gold and silver and oil and appear to be taking advantage of the information. Instead of being in jail, the deception continues in greater force.
This insider information is also power — the power to control the price of gold, silver, and oil. If you want proof of this control, you might want to explain how the price of oil has dropped 50% in just a few months. You want further proof, look at how commodities of gold and silver lost 30% or more of their value in the same period of time in as many months. So, even if the above is a fairytale explanation of how pricing is determined on these markets, it appears to be the only viable explanation.
This control has not come without consequence. Europe and Asia and the Middle East are all talking about pricing oil in their own currencies. Some countries are banding together to create their own currencies. They all appear to be sick of the US stranglehold on world commodities and the US Policy that ensues from such control.
From the perspective of Joe Sixpack, what they should know is that the US banking system is responsible for controlling commodities in secret government deals. These deals gives these banks preferential treatment and makes them immune from prosecution. It gives the US special pricing on oil by allowing the banks to control the price of gold and silver on publicly traded markets – on which the non-banking traders (not in the know) think it is a non-rigged market. Such deception is no way to run a banking system or Country, for that matter. Such lies end badly.
Proof of ending badly can be seen today in the high demand for gold coins and bullion. The price of gold and silver on non-COMEX deals is rising above the COMEX deal prices – by up to 50%. COMEX is loosing credibility to price commodities. More back-room and off-COMEX deals in gold and silver are now taking place, because COMEX pricing is not to be believed.
If these banks lose control of the price of gold when they hold such large short positions, it could destroy them. This has created a no-win situation. This is why all the stops appear to have been removed for these banks to continue to control the price of gold. But, the cost of doing this will be that the US will have to start (if it has not done so already) giving these banks US gold from Fort Knox. How else can they come up with gold to stop the price of gold and silver (and ultimately oil) from rising?
If I were the incoming President-elect, I would not want to go down as the President who will be blamed for giving away the US gold supply. If I were he, I would call for an immediate inventory and accounting of gold and investigate the manipulation of the gold and silver markets by these US banks. Unfortunately, the husband (the US government) will most likely hide the truth of its affair with these immoral banksters until the wife (the US people) find out and call the husband to task for its illicit affairs. We all know what happens then…