posted on Apr, 17 2013 @ 11:30 AM
The big news early this week was the huge drop in gold prices that threatened golds privileged position as a strong protection against inflation and a
good alternative to fiat currencies. Some may have had their faith in precious metals shaken but, was the price drop real or was it engineered by the
Fed to prop up their worthless greenbacks?
The New American
After Gold Crash, Experts Point to Central Bank Manipulation
Some experts, whistleblowers, traders, and former officials say the Fed dumped as much as 400 or even 500 tons of “paper gold” on the market —
metals that it might not even have — as part of a naked short sale aimed at driving down the prices. Other analysts, especially among the
establishment, pointed to the ECB chief’s recent suggestion that struggling European authorities in countries such as Cyprus would have to sell
their precious metals to keep receiving bailouts.
Gold prices plummeted from above $1,550 an ounce on April 11 to below $1,400 by Tuesday, with April 15, seeing the biggest single-day drop in some
three decades. Prices for silver witnessed similarly massive declines, dropping to below $24 from around $28 less than a week ago. Analysts referred
to the plunges as a “blood bath” that triggered even more sell orders.
Economist Dr. Paul Craig Roberts, assistant treasury secretary during the Reagan administration and former editor of the Wall Street Journal, is one
of many experts who argue that the recent collapse in gold and silver prices was carefully orchestrated by the Fed and a coalition of allied
mega-banks. In a widely cited analysis of the recent plunge in precious metals entitled “Assault On Gold Update,” he said the U.S. central bank
was “rigging all markets” — bond prices, interest rates, and of course, the bullion market.
The purpose, Roberts argued, is to protect the value of the dollar while the Fed continues adding to the supply of fiat U.S. currency faster than
demand increases. If the dollar’s exchange rate were to fall, prices would rise, the Fed would lose control over interest rates, the bond market
would collapse, and turmoil would reign in the financial system, Roberts noted. So, the U.S. central bank had to act. According to Roberts and other
experts, it did so by selling “paper” gold that may not even really exist — naked short selling, in other words.
The article cites lots of other economists who all came to the same conclusion; the Fed is propping up its worthless currency in order to hang on just
a little longer. Many think this may be a risky move as the Fed may not even have the physical gold to back up all that paper it dumped onto the
It looks to me like its a good time to buy while the prices are artificially low (just wish I had some actual money to invest myself
). One thing
you can be sure of; the gold prices will bounce back because all the big central banks are continuing on their road or printing more and more of their
worthless paper to flood the markets in their attempts to get the economy chugging along again.
Nothing like doubling down on a failed policy certain to cause even bigger problems down the road. Their desperation is showing how bad things are
really getting. Scary times ahead...