Friday, November 29, 2013

Gold Manipulation - Kissinger: "Why is it against our interest to have gold in the system?" GLD, MUX, TNR.v, GDX


  We continue our research about the Gold price suppression: who is doing this manipulation and why. With Bitcoin crossing $1000 and other crypto-currencies going parabolic we can see the hunger for the FIAT alternatives. We think that despite all very positive developments introduced by Bitcoin it is in a Bubble stage now due to its unbelievable vertical rise. Its bust will bring attention back to Gold and Silver and next step will be the introduction of crypto-currency backed by Gold - it will be the real game changer.
  So far China is using all these games with Gold price suppression to accumulate Gold and this year we see the record buying. Announcement of its Gold reserves can bring the very sobering reality to the financial markets. China will not accept Bitcoin for its Treasury redemption and it is not going to increase its reserve holding any more. US Dollar is losing its Reserve Currency of choice status and all recent "flyover games" just confirm U.S. financial vulnerability in line with Sirya and Iran developments.

Bitcoin vs. Gold: The Future of Money - Peter Schiff Debates Stefan Molyneux GLD, MUX, TNR.v, GDX

We have a great conversation about Bitcoin between Peter Schiff and Stefan Molyneux. You can find a lot of additional information on Bitcoin from Stefan's video. Everybody decides for themselves where is the Intrinsic Value and where is the Bubble. We are siding with China here - who is buying record amounts of Gold this year with Thailand, Turkey and other Asian countries.

Peter Schiff: On Taper, China's Bombshell Announcements For Treasuries, Dollar And Gold GLD, MUX, TNR.v, GDX

"Peter Schiff talks about the bombshell of the year - China has announced the Mother Of All Tapering -  PBOC Says No Longer in China's Interest to Increase Reserves. China is ready to reduce its balance sheet and they do not have to sell any US Treasuries - during the operation Twist they have used the golden opportunity and rolled over the long term treasuries into the shorter maturities. China can just allow US to repay maturing US Treasuries. We do not think here that they will accept Bitcoin. They have made this announcement after the record buying of Gold and some people are estimating that official Gold reserves are much higher than officially recognised today.
  It means that if China leaves to its commitment - there will be no China's bid for US Treasuries of MBS - how FED can Taper now? They will have to increase the amount of QE just to keep the market from falling! US Dollar will go down with rising Interest Rates and additional strain on the economy and fiscal budget and Yuan will appreciate - and it was another bombshell: China will allow it to do so now.
  Market is still in over dose mood with Bubbles popping everywhere and All-Time-Highs and does not pay any attention to this news. But US Dollar continues to print very Bearish candles on Daily chart below and next few weeks will show the magnitude of this Chinese move for the global finance system. Gold will benefit the most from this shift once the Market will realise the magnitude of this situation and tectonic shift in the global financial system.
  US dream about the Stronger Yuan is happening now for real, but be careful what you wish for! US Dollar will go down relatively to Yuan and it will push Commodities and Gold prices higher in dollar terms. China will stimulate Internal Growth and will lose some Export. Inflation will pick up with rising Import prices in U.S. And if it is now FED's wish: to have more Inflation - this very delicate balance will be very hard to keep. Absence of China from Treasury market and lack of speculators without the Bernake's put from FED can make much higher Interest Rates reality very fast."


State Dept. minutes confirm that whoever has the most gold makes the rules

Friday, November 29, 2013
Dear Friend of GATA and Gold:
Gold researcher Koos Jansen tonight calls attention to the minutes of a U.S. State Department meeting in April 1974 summoned by Secretary of State Henry Kissinger to consider the danger that the price of gold might get beyond the U.S. government's control.
The objective of U.S. policy about gold during this time has not been secret; GATA has cited government records demonstrating it. For example:
But the minutes published by Jansen tonight are especially remarkable for making explicit the U.S. government's recognition of what some gold advocates call "the golden rule" -- that is, whoever has the most gold makes the rules.
The meeting is addressing what is perceived as the increasing desire among Western European countries to revalue their gold reserves upward, thereby increasing gold's role in the international financial system, while U.S. policy has been to demonetize gold so as to leave the U.S. dollar unchallenged as the world reserve currency.
Secretary Kissinger asks the meeting: "Why is it against our interest to have gold in the system?"
He is answered by his assistant undersecretary of state for economic and business affairs, Thomas O. Enders.
The minutes, found by Jansen in the State Department archives in Volume 31 of "Foreign Relations of the United States, 1973-76," record Kissinger's exchange with Enders this way:
* * *
Mr. Enders: It's against our interest to have gold in the system because for it to remain there it would result in it being evaluated periodically. Although we have still some substantial gold holdings -- about $11 billion -- a larger part of the official gold in the world is concentrated in Western Europe. This gives them the dominant position in world reserves and the dominant means of creating reserves. We've been trying to get away from that into a system in which we can control ...
Secretary Kissinger: But that's a balance-of-payments problem.
Mr. Enders: Yes, but it's a question of who has the most leverage internationally. If they have the reserve-creating instrument, by having the largest amount of gold and the ability to change its price periodically, they have a position relative to ours of considerable power. For a long time we had a position relative to theirs of considerable power because we could change gold almost at will. This is no longer possible -- no longer acceptable. Therefore, we have gone to Special Drawing Rights, which is also equitable and could take account of some of the less-developed-country interests and which spreads the power away from Europe. And it's more rational in ...
Secretary Kissinger: "More rational" being defined as being more in our interests or what?
Mr. Enders: More rational in the sense of more responsive to worldwide needs -- but also more in our interest. ...
* * *
So there you have it. Whoever has the most gold can control its valuation -- and implicitly the valuation of every currency -- and thereby create the most "reserves," the most money, money being power. The interest of the United States, at least as it was perceived at that meeting at the State Department in April 1974, was to dominate the world through the power of money creation.
Few observers would deny the success of that policy from 1974 and earlier right up to the present day. The current war over gold, a war raging nearly everywhere today except in the mainstream financial news media, which strive desperately to overlook it, is a war for world domination through the power of money creation. Whoever gets the most gold will control its valuation, control the valuation of other currencies, and make the rules for the international financial system.
The minutes of the April 1974 meeting at the State Department are posted at Jansen's Internet site, In Gold We Trust, here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc."

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