It's Ponzimonium in the Gold Market

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We’ve had a
string of amazing revelations recently regarding the world’s precious
metals market. This is important stuff for anyone (like me) who
holds gold as a means to avoid currency turmoil and counterparty
risk.

(My
earlier post on shenanigans at the Comex gold market.
)

This news has
been actively suppressed in the mainstream media.

The Commodity
Futures Trading Commission, a U.S. government regulatory agency,
held hearings in Washington D.C. in late March regarding position
limits in the futures market.

People involved
in the markets have known/suspected for years that they have been
manipulated by certain large entities, notably JP Morgan and Goldman
Sachs.

Analysts like
silver maven, Ted
Butler
, hedge fund giant, Eric Sprott, and the Gold Anti-Trust
Action Committee (GATA) have
been collecting evidence of this manipulation for years.

These hearings
were supposed to be a non-event. However, despite the media lock-down,
the word is getting out.

The CFTC, like
the SEC, is a conflicted agency. Some people, notably Chairman Gary
Gensler and Commissioner Bart Chilton, seem to want to clean up
the sleaze, fraud and corruption.

The CFTC even
invited GATA’s Bill Murphy and Adrian Douglas to make statements.
Would you be surprised to learn that the cameras had a "technical
malfunction" during Bill Murphy’s statement, which magically
righted itself immediately after he finished?

After the hearing,
according to Douglas, Murphy was contacted by several major media
outlets for more interviews. Within 24 hours, all the interviews
were canceled. All of them.

You can follow
the links above to see the research that Butler, Sprott and GATA
have done over the years. That was only one part of the emerging
story.

The second
part is the appearance of London metals trader and now whistleblower
Andrew Maguire, who understands JP Morgan’s manipulation scheme
inside and out.

Maguire understands
the process so well that he was able to describe it to the CFTC’s
Bart Chilton on the phone in real time. As in: "in a few minutes,
they are going to do this, and then they will do that."

Listen to an
extended interview with Maguire and GATA’s Adrian Douglas on King
World News here.

Maguire has
taken some personal risks to tell all this in public. In fact, almost
immediately after his initial statements, he was run over by a car
while walking down the street. The driver sped away, nearly running
over some other pedestrians in his haste to escape. Fortunately,
Maguire survived the hit-and-run "accident"
with minor injuries. What a coincidence.

The third item
was during the question-and-answer session at the CFTC hearings.
GATA’s Adrian Douglas.

For many years,
people assumed that the London Bullion Market Association (LBMA),
the world’s largest gold market, was a simple bullion market. Cash
for gold. However, just in the past few months, more people are
realizing that there is actually very
little gold within the LBMA system
.

Even long-time
gold specialists like Maguire have been amazed to learn that there
is no gold corresponding to the vast "gold deposits" at
the major LBMA banks.

During the
CFTC hearings, Jeffrey Christian of CPM Group apparently informed
us that the LBMA banks actually have about a hundred times more
gold deposits than actual gold bullion.

(GATA
on CFTC hearing revelations, including video clips
.
ZeroHedge
on the LBMA "paper gold ponzi"
)

This means
that there are thousands of clients – Asian and Middle Eastern
governments and sovereign wealth funds among them – who think they
own hundreds of billions and perhaps trillions of dollars of gold
bullion, and are being charged storage fees on that fantasy bullion,
but they really own unsecured gold loans to the banks at a negative
interest rate.

Read
the rest of the article

April
6, 2010

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