November 7, 2017
“There are crooks everywhere you look now. The situation is desperate.” Final blog entry by Daphne Caruana Galizia, 53, renowned Maltese investigative reporter who specialized in exposing state corruption; posted on 16 October 2017, one day before she and her vehicle were blown to bits by a car bomb in Bidnija, Malta
In 2011, gold pulled a “Bitcoin” before anyone even knew what Bitcoin was: its price went vertical to $1,900 per ounce. Inflation-adjusted, the price was still far below its 1980 all-time high, and from all indications, it was going to keep heading north toward its free market print.
In surging, gold blurted out the Deep State Central Planners’ strategy for dealing with the Great Financial Crisis: the hyperinflation of bond, equities and real estate prices via the hyperinflation of both official and totally clandestine, off-the-books money supply, in order to create the hyperinflation of tax revenues desperately required by the government to forestall its fiscal collapse. Gold’s exposure of the Deep State Central Planners’ secret strategy was absolutely unacceptable to them, and had to be stopped.
Worse, gold’s price breakout interfered with the continuation of the largest and most profitable financial crime in history: gold price manipulation. As we have outlined in previous articles, including “Gold and Silver Price Manipulation: The Biggest Financial Crime in History,” from its commencement in 1980, this crime has netted its perpetrators more than $1 trillion in criminal, Mafia-style profits. The epic scale of this crime is exactly why it continues unabated to this day. (While the gold price rigging crime is virtually identical to the manipulation of silver prices, in the interests of brevity, we will solely focus on gold in this article.)
The weapon used in the gold price manipulation crime is paper, or, better stated, electronic gold in five distinct forms: gold futures; gold options on futures; bullion-bank controlled, deliberately audit-proof gold ETFs; gold EFPs (Exchanges for Physical); and the equities of bullion bank-controlled major mining companies. (The major miners serve the bullion banks, not their shareholders, and have actively participated in gold’s price destruction for years, starting with the “hedging” campaign that handed guaranteed profits to the banks and pitiful share prices to the stakeholders.)
These electronic (in other words, non-physical and unreal) gold products are used by Deep State financial insiders to misdirect funds intended by investors to flow into gold, away from gold. Those who “invest” in electronic gold are, in fact, aiding and abetting the exact financial criminals who are stealing from them. The Deep State financial elite is laughing itself sick that suckers still fall for the electronic gold scam nearly four decades after they first hatched it and after already having stolen $1 trillion from their marks. Proof that many people in our world never learn.
Simplified, the gold price rigging scam works by the orchestrators allowing natural market forces to increase the price in roughly $50 – 100 increments, whereupon they unleash massive, synchronized, simultaneous, shock-and-awe-style naked short sales, unbacked by any physical gold they actually own, that take the price right back down by $50 to $100 in a matter of minutes to a few days. This forces the price-attacked longs to dump their losing positions, enabling the shorts to cover at an illegal profit. Each such large-scale price raid produces hundreds of millions of dollars in profits for the criminal orchestrators, not just from the futures market, but from the companion options, swaps and equities markets, all of which act in unison, and in a price-predictable up or down manner. This identical wash, rinse, repeat cycle has occurred literally hundreds of times over the past 38 years, with no serious investigations or prosecutions whatsoever in that this is official, state-sponsored, for-profit corruption.
For any one of hundreds of reasons, gold should be in a raging bull market at this time. Given that its price remains lackluster and greatly disappointing, rich gallows humor has emerged as a form of therapy for those attempting to deal with the irrationality of it all.
One gallows joke that made the rounds was that if nuclear war were declared, gold’s price would go down and the DJIA would go up. While this was a funny take on the absurdity of the situation, it seemed a bit far-fetched.
In an October 20, 2017 podcast interview, Mr. James Rickards, a leading public commentator on gold, stated that he had spent the previous day in an extremely exclusive national intelligence planning session overseen by CIA Director Mike Pompeo and National Security Advisor H.R. McMaster. Rickards reported that Pompeo told him, categorically, that military action will be taken against North Korea within 5 months, or by March 20, 2018. Rickards also reported that the group was informed that the assassination of Kim Jong Un is one U.S. military option officially on the table.
In the trading days after Mr. Rickards made that public announcement, the price of gold declined and the DJIA hit record highs.
In the practice of Inferential Analytics, the forecasting method we developed and use, we pay rapt attention when gallows humor becomes gallows fact, because it invariably signals that something is seriously wrong.
As practitioners and students of professional, CIA-style human manipulation, mind control and propaganda campaigns know, they are driven by misdirection, reverse psychology, twisted narratives, head fakes, false flags, imposters, blind alleys, Judas goats, projections, and the invention and dissemination of elaborate lies, told by professional liars, that are the exact opposite of reality. Such techniques are now being used to keep the gold price manipulation and electronic gold frauds alive, well and gushing profits for the insider looters.
The challenge faced by those who conduct professional swindles and stings is that such schemes burn through victims. The defrauded either go bankrupt, or wake up and get out. Therefore, con artists must constantly trawl for new suckers to screw.
In the case of the gold price manipulation swindle, the insider con men must find ways to lure new, naïve, outsider money onto the insider-controlled Gold Looting Field, in order for there to be fresh market liquidity for the insiders to sell into and plunder. This is becoming increasingly difficult, given that the insider criminals have been systematically screwing investors for nearly 40 years, have destroyed the gold market’s reputation, and have ravaged the prospect base of patsies.
Therefore, the gold market price wreckers are now in the paradoxical situation of needing to make, via controlled spokespersons and/or by riding on the coattails of independent, non-aligned commentators, a high-profile, bullish case for gold.
The rigging of gold persists without regulatory or legal interference because it is based on a straightforward deal between the profiteering Deep State financial elite, and the western governments they control: the criminals are allowed to manipulate the gold market however brazenly they wish and keep whatever sums they steal, as long as they keep the gold price under control. Gold price control is critical to states’ official monetary, fiscal and economic narratives, all of which are false. If the gold price were to get out of control, as it started to do in earnest in 2011, this would fatally contradict the states’ false narratives. Freed at this juncture, gold could easily ascend to $10,000 per ounce, which would announce to the people that reality is not what they are being told.
Mr. Rickards has been an unrelenting gold bull for several years. His first book was published in 2011, not long after the gold price had taken on momentum, and he has been a highly-visible pundit ever since. He expresses his views on all of the major business networks, in hundreds of radio and podcast interviews, and in articles and newsletters distributed all over the world.
Mr. Rickards positions himself as an “Insider’s Insider,” repeatedly referencing his connections to and interactions with the intelligence community and financial elite. Additionally, he has publicly stated that he has coordinated and participated in simulated financial war games developed for high level government, intelligence community, academician and private commercial sector participants. The purpose of these financial war games is to simulate the means by which nations might attack one another financially, as opposed to militarily, as the so-called art of war evolves.
Mr. Rickards states his views clearly and with conviction, and he can be quite convincing. Despite his compelling forecasts between 2011 and now for a surging gold price (he has stated that $10,000 per ounce gold is likely), the price has, in fact, plunged from $1,900 to $1,280 today, while virtually every other asset class, including stocks, bonds, real estate and even ethereal cryptocurrencies has surged.
Some of Rickards’s recent and current predictions include these:
1) Kevin Warsh would be named Chairman of the Federal Reserve. Such a development would have been bullish for gold, because Warsh is said to oppose the exact kind of market manipulation that has been practiced by the Fed and that has criminalized the gold market for years. As we now know, this prediction was wrong, and subsequent to Powell’s nomination, the price of gold went down.
2) He categorically asserts that there will be no Federal Reserve rate hike in December, 2017. Obviously, this would be extremely bullish for gold, and anyone who believes the prediction should aggressively buy it at this time. The problem is that, barring some kind of extraordinary exogenous event, it is highly likely to be wrong. Interest rates will almost certainly be raised in December, regardless of economic conditions. If they are not, the Fed’s economic narrative will unravel and its credibility will be shredded, something that no central bank can allow to happen.
3) A new prediction is that there will be a government shut down this December, due to federal debt limit increase disputes among politicians. This would be bullish for gold and bearish for financial markets. In our view, this prediction is also destined to be wrong. With Republicans in control of the House, Senate and White House, they would totally “own” such a shutdown, which citizens detest, and this could only hurt them in the November, 2018 elections. We doubt they will allow this to happen.
4) The prediction that war with North Korea and/or the possible assassination of Kim Jong Un will occur by March 20, 2018 remains on the table. It is hard to imagine a story line more bullish for gold, given that such a war will almost certainly be nuclear and could swiftly morph into World War III. The global “rush to safety” in such a situation would be historic.
Over the past several years, Rickards has made literally dozens of similar, gold-bullish predictions, and yet the gold price has gone down to nowhere during the same period. As we can see, even excellent rationales for a rising price of gold, along with basic common sense, do nothing to create that outcome. The reason for this is simple: the gold market has been completely corrupted.
By publicly revealing specific content from the Pompeo / McMaster planning session, Rickards indicated that he is an official spokesperson for the Central Intelligence Agency and the national security complex. Because if the meeting Mr. Rickards reported upon actually occurred and if he actually attended it (and Mr. Rickards is a credible figure whose veracity we have no reason whatsoever to doubt), we simply cannot believe that he could have publicly revealed what transpired at it without the direct, formal authorization of Messrs. Pompeo and McMaster, its hosts. Further, we would think that Pompeo and McMaster would have required President Trump’s authorization to facilitate the public release, via Rickards or anyone else, of the timeline for war with North Korea and the nation’s active assassination options. If correct, this would mean that Rickards is a direct spokesperson for the CIA, the National Security Advisor, and by extension, President Trump.
Therefore, we are faced with an extremely curious situation where a direct consultant to and spokesperson for the Director of the Central Intelligence Agency, the National Security Advisor and the President of the United States is also one of the most high profile cheerleaders in the world for gold.
This is an extraordinary paradox, because we know that the Federal Reserve, U.S. Treasury, banks, brokerage houses, insurance companies, mutual fund corporations, pension fund managers and virtually every other participant in the United States financial services juggernaut have absolutely no interest in or anything whatsoever to gain from the people finally waking up to and acting upon the astoundingly bullish case for gold.
So we ask ourselves: Why would the government wish to align with someone who popularizes a point of view (“buy gold because it is going to $10,000 per ounce”) that is a direct threat to it and to the Deep State financial elite it serves? This would be like the Fed hiring Ron Paul, who wrote a book entitled “End the Fed,” to become one of its official champions and spokespersons. Can anyone imagine that happening? As we can see, this is a very complex and confusing situation.
While the bullish case for gold is directly contrary to the interests of the financial establishment generally, it is of extreme interest and benefit to the subset of the establishment that has made more than $1,000,000,000,000.00 in illegal profits over the past forty years by rigging the gold market, and that wishes to steal as much additional money as they can get away with.
No matter who writes them, gold-bullish commentaries are extremely helpful to the gold price rigging cartel, which needs constant capital injections into the electronic gold market in order to keep its looting spree going. By making his particularly cogent and compelling bullish arguments for gold, and given his stature, credibility and connections, Rickards is a God send to the price riggers. Over the years his work must certainly have heightened investor interest in gold and resulted in sizable fresh flows of investment capital pouring onto the electronic gold Looting Field.
It is likely that people at the highest levels of the Deep State financial elite fully realize that a large migration of the people’s money into precious metals is virtually inevitable, given the government’s urgent need to hyper-inflate money supply and massively stimulate the economy in order to hyper-inflate tax receipts, the only way it can avoid collapse. Ultimately, this is guaranteed to create severe, generalized consumer price inflation. Historically, hyperinflation has always resulted in a significantly higher gold price.
With massive and increasing structural deficits; exploding debt in all sectors; hostile demographics; social and political fracturing and disintegration; grotesque wealth inequality; extraordinary global trade competition; a complete collapse of respect for vital government organizations such as the Justice Department and FBI, which the people now realize have gone rogue; an extremely complex and corrosive global geopolitical environment; the real prospect of war, potentially nuclear and worldwide; not to mention numerous additional factors, we can only point to few other times in history more dangerous to the people’s financial welfare, and therefore more overall bullish for gold, one of the only financial sanctuaries proven to work in times of dislocation.
If a large move into precious metals is going to happen whether the Deep State financial elite likes it or not, they realize they must at least do everything possible to control where those funds go, while they still can. This means they must ensure that as much money as possible flows into electronic gold products controlled by them, and not into physical gold privately owned and controlled by citizens.
In our consumer research, we have found that the average U.S. citizen is literally clueless when it comes to gold. They are almost completely unaware of the gold products available to them, the prices of those products, or even where to buy them. After two generations of being deliberately educated in total ignorance about gold, none of this should come as a surprise. Knowing next to nothing about physical gold or the mechanics of buying it, they feel intimidated by the subject. Therefore, the simple fact is that if they do decide to buy gold, the path of least resistance leads them to electronic gold.
Financial services industry employees are trained to talk customers out of buying gold. They do this by pointing out its price volatility and riskiness. (The public has no idea that the gold price is manipulated, and fake.) If the customer still wants to buy it, then the broker steers them into electronic gold, such as bullion bank-controlled ETFs and major mining company equities.
This sterilizes the investor’s funds, and prevents them from being used to buy physical precious metals, which would interfere with the price rigging crime by increasing physical demand for and the price of gold, given its consistently tight supplies. It would also lessen capital flows onto the Gold Looting Field, the exact opposite of the Deep State manipulators’ agenda.
Over the past several years, there have been many, highly sensationalized mainstream media reports about counterfeit gold, such as the report last year about a few ten ounce PAMP gold bars with tungsten cores. To listen to the MSM, one would think that all of the physical investment gold in the world is fake. The fact is that the overwhelming majority of physical investment gold is genuine. Counterfeit gold hysteria is yet another spoke of the anti-physical gold propaganda wheel whose function is to scare people away from real physical gold personally owned and controlled by them, and into fake electronic gold controlled by the Deep State financial elite.
The Deep State financial elite fully understands that it cannot prevent all investment funds from reaching physical gold. But they do not need to in order to maintain their price rigging scheme, or to continue making significant profits from the electronic gold products they distribute and manage.
In fact, just as they benefit from the bullish case for gold that results in funds continuing to flow onto the Gold Looting Field, they also benefit when commentators speak about the virtues of personally owned physical gold. They fully realize that any commentator who recommends gold but also says that people should not personally own any of it would lose credibility. So it is completely fine with them when a gold booster such as Mr. Rickards makes positive comments about, for example, gold Maple Leafs, which he has done. They realize that as a practical matter, the average person is going to find the purchase of physical investment gold too difficult and intimidating to pursue, and will gravitate to electronic gold, even though some of them might buy some Maple Leafs. Apple does not need 100% smart phone market share to be enormously profitable, and neither does the Deep State financial elite need 100% gold market share to make massive gold profits, which they do.
The larger purpose behind the Deep State’s electronic gold products, beyond current profits, is to concentrate investment gold in a select number of locations that will be easy to control and raid when the time comes. When the gold price is reset, most likely by China and an outcome we view as inevitable, western governments will move fast to prohibit its private ownership. The Deep State elite, which for decades has exhibited an endless lust for other people’s money and greed that is beyond biblical, is simply not going to allow every day citizens to benefit from gold holdings that have surged in value. Therefore, when the Deep State elite realize that they have lost control and the price is about to be reset, they will pre-emptively cash-settle their electronic gold products in fiat currencies that will subsequently plunge in value, and abscond with the physical gold that backs such products. For investors, electronic gold is nothing but modern day Fools’ gold. For the Deep State, it is a free ride, on investors’ backs, to the most massive physical gold theft of all times.
Taken together, we believe these factors present a compelling argument why investors should exit all of the electronic gold products specified at the beginning of this article, and convert the proceeds into physical gold and/or non-Deep State-controlled equities of companies in which they have full confidence that managements are working for them, not the bullion banks. The fact is that the Deep State manipulation of the gold price is never going to end until people stop buying electronic gold and providing the liquidity the Deep State needs to continue perpetrating the gold price rigging crime.
More than 100 years ago, Dostoyevsky wrote: “Money is coined liberty, and so it is ten times dearer to the man who is deprived of freedom. If money is jingling in his pocket, he is half consoled, even if he cannot spend it. But money can always and everywhere be spent, and, moreover, forbidden fruit is sweetest of all.” When honest money is attacked, so is human freedom. Because it is impossible for human beings to be free if their currency is a fraud and they are at the same time prohibited from owning honest money. The gold price is, in fact, a barometer of human liberty. When it is fake, there is slavery; when it is honest, there is freedom.
Thanks to the Deep State financial elitists, for whom fraud and plunder are a way of life, the gold market has been a cesspool of corruption for nearly forty years. And as we can see, corruption has metastasized throughout the world. “There are crooks everywhere you look now. The situation is desperate,” said Daphne Caruana Galizia, prior to being assassinated for her work and courage. May she rest in peace. In the coming hurricane, the rest of us are going to need to exhibit her same bravery to fight the crooks who have corrupted our world and our futures with their nauseating arrogance, greed, and immorality.
[We would like to remind readers that we are not investment advisors and that none of the content of this article is intended to be investment advice. Please do your own research, reach you own conclusions, and take action as you personally see fit. We are not connected with the gold industry in any way, and we write our Inferential Analytics articles solely in an effort to share with people what our research indicates. We do not make one penny from this article, and it is yours to decide what to do, if anything, if anything, with the information we have conveyed.]