Barclay’s Gold Manipulation & Dr. Evil
QUESTION: Mr. Armstrong; I am a converted and repentant Goldbug. I have listened to the same hype all the way up and all the way down. They always blamed mysterious manipulators for their mistakes. What I understand from your explanation is that there is no grand plan of manipulation, it is always just trading for immediate profits against clients. I gather this is in all markets. Correct? Is this changing?
Yours ever so thankful
JSK
ANSWER: Yes. People attribute systemic manipulation with some sort of dark sinister goal that runs for decades. Global-Elitists who want to dominate the world as if this is some James Bond movie or Doctor Evil from the Austin Powers series. The people behind these conspiracy plots get so angry at me saying they are wrong. Not that there is no manipulation, just that it is NOT systemic with long-term goals.
The Barclay’s manipulation of gold was against one client to beat him out of almost $4 million. It was NOT some long-term plot for decades. Those who take this incident and then wrap it around the gold market to claim it is manipulated every day are biased. If that is the case, then stay away from gold and why recommend buying something you know will be manipulated lower? It makes no sense. Their excuses are illogical. If you know there are sharks in a swimming pool, do you jump in anyway? How can you on the one hand say sell everything and buy gold it will go to $50,000, and then when you are wrong claim there is a giant conspiracy so powerful it manipulates the market lower perpetually? It is illogical. Are they being paid by bankers to always talk-up the market so they have someone to sell to?
Now allegations are emerging that Goldman Sachs and J.P.Morgan have been manipulating zinc keeping it higher than it should be. I gathered all the evidence on these very types of manipulations. I was constantly solicited to join them. They thought if Princeton Economics would join them they could manipulate with no risk of anyone exposing them. We were the largest advisory service in the world with over $3 trillion under contract when that was 50% of the US National Debt. This same strategy was exposed after the Dot.COM Bubble. They own these pretend forecasters who put out fake analysis behind the curtain. These pretend analysts put out nonsense so they can trade against clients SHORT-TERM – not with 25 year expectations. This is their game plan – it is always here and now. The SEC brought charges against firms for putting out fake analysis in the DOT.COM Bubble.
All the evidence I had gathered that included documentation and phone recordings with brokers who also were monitoring these manipulations were seized by the now Chief of Global Compliance at Goldman Sachs and Tancred Schiavoni. The court put Cohen in charge of Princeton Economics. All that evidence vanished or I would be putting on the Web those audio tapes for the world to hear. Below is a transcript of the court proceeding where I objected about the seizure of this evidence I knew would miraculously vanish.
These conspiracy-buffs can say I am wrong and there really are these dark sinister groups who want to dominate the world. They have NOTHING but speculation to support their claims. I was there. I have had a front row seat and fought against this trend all along. There is ABSOLUTELY NO such dark sinister force with long-term goals. This has ALWAYS been show me the money – NOW! NOT 25 years from now.
Why these conspiracy-buffs insist I am wrong with ZERO experience is beyond me. The bankers moved from one manipulation to the next. They could care less what the instrument even was at that time. It was all about being profitable every year. That’s it – not 50 years down the road. I remain skeptical of those who say I am wrong and point to undefined groups with grand designs. This has allowed the bankers to operate in plain view for I believe they were the very source of those conspiracy theories.
Whenever there was a strange coincidence, there was reason to look deeper. The Justice Department refused to investigate Cohen and Schiavoni. But that is nothing knew. Elliot Spitzer removed Hank Greenberg from AIG, who rejected insuring Goldman Sachs’ mortgage backed securities. That is FACT. Once Greenberg was removed, AIG began insuring Goldman’s paper. As soon as Spitzer thought he was king of the mountain and could control Wall Street, suddenly he was forced to resign over the hooker. This is way-too coincidental. I believe that Spitzer was fed information by Goldman Sachs to get rid of Hank Greeberg and then someone used the hooker when Spitzer looked to see who was next.
Then there was the fake charges against Strauss-Kahn who was the head of the IMF between 2007 and 2011. Inside sources confirmed he was against and shocked at the internal corruption at the IMF. A deal was cut to replace him with another French candidate – guess who – Christine Lagarde. Strauss-Kahn was French. The candidate had to be French to get Nicolas Sarkozy’s support for the switch. The maid lied about the rape by Strauss-Kahn but that did not matter – he had to go. It was a set-up from the start. Politicians protect politicians in such matters. Strauss-Kahn was immediately abandonedBEFORE the fake charges would be exposed. Where was this scheme carried out? No other place than the real cesspool of political corruption – New York, New York. Obama’s personal friend was installed on his recommendation BEFORE there was even a vote. Christine Lagarde (born 1956) took office 5th of July 2011 and immediately put out studies to justify 80% taxation and Obama’s agenda.
Scandals, both fake and real, are routinely used to get rid of people that do not cooperate. That applies to the bankers (Spitzer) as well as the socialists in government (Strauss-Kahn). This is how the real conspiracies function. It is immediate – not 50 years down the road.
There was a deliberate takeover of government by the bankers to protect their methods of trading against clients. The bankers could do as they like free of prosecution and ensured they would always be bailed out. They still own the SEC and CFTC for people take jobs there to favor the big firms in hope of landing a million dollar job. They call this the revolving door in US regulators. Goldman stuffed Robert Rubin and Hank Paulson into the US Treasury to get rid of Glass Steagall and more.
The bankers seized control of the Treasury and then used that position to lobby creating the ability to sell their toxic debt derivatives to European banks. The memo is floating around the Web dated November 24, 1997. I can confirm this was the strategy since at the time I even owned a brokerage house I was asked to bailout originally owned by the French bank. I am fully aware of that change back in 1995 that was maneuvered through the WTO at the time. This memo was merely allowing derivatives to be sold around the world exported from NYC. That was phase II after getting rid of Glass Steagall. This is how things were really done. There are no grand schemes. It is all about the money here and now – to hell with the future.
Eastern Ukraine Moving Toward Civil War
Pro-Russian Tourists killed in battles
The number of clashes between the pro-Russian tourists and Ukrainian troops has been escalating. More than 20 have been killed in more gun battles. With the elections in the East tomorrow, Sunday’s presidential election remains uncertain whether voters will brave the threats of armed pro-Russian militants who have been setting up bases to intimidate voters. The polls give Petro Poroschenko, the billionaire “chocolate king,” an unassailable lead in the field of 21 candidates. The issue is whether voters in eastern Ukraine, with 15 per cent of the country’s 46 million population, will cast their ballots in the face of threats. Everyone is aware that an armed attack is a possibility and you have to be blind to think otherwise. Putin says he will respect the election choice. Tomorrow will be interesting for as Ukraine goes, the rest of the world may follow in the years ahead when the economy turns down, we may see violence between socialists and democratic groups emerge.
Ukraine Eastern Protesters Take to Cars to Support a United Ukraine
The threats of violent by the pro-Russian tourists roaming the streets in Eastern Ukraine have succeeded in stopping protests of people on foot after they are being beaten and killed. The pro-Ukrainians have taken to their cars and blowing their horns in support of Ukraine in the East.
There are pro-Russian Eastern Ukrainians who seem to think that joining Russia will bring back communism where the state just takes care of them. Many look upon the Soviet times with fondness. In all honesty, are people in the West capable of living today without relying upon government for something? This is the attitude of some in Eastern Ukraine who are poor and do not enjoy such freedom – they just want to be taken care of. This is the same as the welfare class in the West.
Gold in Basket of Currencies
QUESTION: Mr. Armstrong; you mentioned something in passing that gold has declined because it has been declining in a basket of currencies. You are the only analyst that I know of who looks at everything in different currencies. How important is this view?
Thank you for all you do
Best Regards;
HK
ANSWER: Having offices around the world quickly taught me that forecasting had to be tailored to the currency base of the investor. If you buy a fully hedged ETF on a basket of stocks in another currency, you are betting that the stocks will rise more than the movement in the currency. Yet stocks can rise in both capital inflows (bull market) as well as outflows that are related to the government and currency fears as in hyperinflation where assets rise with declining currency.
I have stated many times that the definition of a REAL Bull Market is something that rises in ALL currencies – never just one. The 1987 Crash took place as the US Share Market was making a double top in a basket of currencies.
Gold did not make new highs in 1987 other than dollars. If you want the real trends, it takes a lot more than opinion.
Mark Twain on Politians
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