Previously by James West: Gold Promises and Currency Lies
That the United States government, the U.S Federal Reserve, and a plethora of financial institutions, are in breach of numerous U.S. laws in regards to fraud and fiduciary duty to the American people, is held to be self-evident, by a growing minority of individuals around the world. That this breach of law and duty has resulted in the deterioration of the global marketplace, diminished opportunities for workers, and effected an acute decay in living standards for millions around the world, is without doubt.
Since the founding of the houses of Rothschild and Morgan in the 18th and 19th centuries respectively, banks and bankers have progressively adopted the role of financiers to governments, who find themselves placed in a position of obligation to their financiers. Laws and regulations are thus influenced more by the interests of bankers than by the public interest. This is the essential conflict that undermines the possibility of real democracy in our world. Its not a case of who can get the most votes — it's a case of who's got the most money.
These banking dynasties (and the people with the most money who control them) have spawned an entire sub-race of human beings who are characterized by a conviction of their superior intellect, and entitlement to act outside of the laws of society, reinforced by the governments who are obliged to aid and abet them as debtors. This has resulted in a situation whereby the entire global economic engine is in the control of these very rich and powerful dynasties, who now collude daily to manipulate markets to their own benefit, and at the expense of the rest of the world's citizenry.
The operational platform of this global criminal enterprise is the futures, derivatives, and debt markets. Far from market efficiency mechanisms, they are the means by which the entrenched financial dynasties hobble government and siphon off the earnings of everyone around the world in regularly engineered financial expansions and contractions. It is the means by which astronomic virtual profits are generated, and the reason why banks no longer invest in businesses. Why invest in a business when you can invest in your own fabricated market, where you control supply, demand and price?
Without taking delivery of anything, without paying for anything, and without doing anything more than publishing thousands of contracts to purchase and/or sell vast quantities of commodities far in excess of what can realistically be produced, delivered or utilized, the inclinations and trading impulses of the vast majority of traders are dragged into losses as markets gyrate between up and down, as the puppeteers operating on behalf of the banking dynasties go long and then short. It's a fine tuned fraud on an international scale. And it can't be identified or detected, because the mechanisms for recognition and enforcement of regulations are under the control of the banking dynasties. After all, who is it that these governments are in debt to?
The closest that media has ever come to exposing this criminal organization is in the film Inside Job, by Charles Ferguson. The film does an utterly fantastic job of baring the collusive relationships among government, bankers, and economists. But it fails to identify the very root cause, which are these financial dynasties acting in concert, populating governments with hand-picked puppets who do their bidding, often naively. Charles Ferguson does an utterly sublime job of tricking economists into revealing the conflicts inherent in their various roles. The buffoons are disrobed and stand naked and ridiculous for the viewer. This film should be required viewing for all economics students entering university.
But that's as far as real journalism has been able to penetrate. After the front-line economists, the wily politician handlers, more finely attuned to perception, stand behind their offices to avoid public comment. There's only so far up the food chain an investigator like Mr. Ferguson can go.
World Domination: Not Just a Cartoon Ambition
Consequently, we have a globalized machine that efficiently causes all valuable resources to be extricated prematurely from the earth's crust to satisfy the insatiable greed of this parasitic top layer of human society. Through the issuance of thousands of long contracts, the appearance of robust and perpetual future demand is distributed, and bankers and miners dutifully get in line to finance and explore for deposits, many of which will never see production in our lifetimes. The problem for these otherwise intelligent people is, the closer you get to the top of the food chain, the farther up the food chain you are driven to go. Its equal parts greed and addiction. (Greed is really just the addiction to money and the sense of invincibility having lots and lots of it gives).
From a macro-time perspective, we could be perceived to be on the brink of the sixth mass extinction of species in the last 500 million years. Heretofore predicated by asteroids and natural climatic shifts, this next one will be initiated by ourselves, global warming naysayers notwithstanding. But that's an unpopular reality, and so, we continue in the default human mode, and pretend it isn't happening. We've got Hummers and Webers and iPhones and Wii's to buy, goddammit. Summer's here — lets get drunk!
We are presently needlessly exhuming every element of any use from the earth's crust and shaping them into items of ultimate distraction — computers, phones, cars and video games — to the point where the business of information management is the most omnipresent and important component of any business — even those unassociated with the information business. Our countries are now referred to as "markets" and the destruction of our natural environment as "our transformation of the earth". Both are spun as desirable. But demand is absent and deteriorating.
The massive outpouring of products stemming from this wholesale pillaging the earth's crust is only needed to support the fallacious premise of modern economic theory that promotes perpetual growth. The obvious outcome of such a mentality is apparently lost on all the bankers and politicians employed by the global banking dynasties, and of course, upon their minutiae-obsessed technicians, the economists. We still don't need more cars, yet the stimulus and quantitative easing that is in fact the theft of a future generation's equity has re-invigorated, albeit superficially, demand for cars. We still don't need more new houses, and while hundreds of thousands of families around the world are evicted from the homes they thought they owned but now understand they only rented for an exorbitant sum, the same monetary deluge has resuscitated, albeit temporarily, construction and sale of more homes.
People are at a loss on how to defend themselves from the predation of this banking system, and the bankers' media machine is so thoroughly efficient, that the vast majority of citizens question the validity of the idea that they are being raped repeatedly by their financial institutions while their arms are pinned by the governments they elect. Amid such culturally pervasive ignorance, a change in direction is rendered impossible.
Non-mainstream market commentators bleat advice continuously into the wind to buy gold and silver with increasingly useless U.S. dollars, with limited effect. Those who began accumulating in the early part of the last decade smirk at the fools on CNBC who suggest the gold bubble has popped.
But the banking dynasties, having been inexistence since the late 1800's, have fine tuned the relationships among its various apparatus, and now function so very well as to be nearly invisible. It has among its tool kit the derivatives market to make the advocates for monetary metals appear misguided and idiotic. Thus the savage attack on gold and silver markets last month, with the results that the Wall Street Journal, New York Times, and CNN are all furiously publishing stories who feature the human examples of fortunes lost in gold and silver, albeit temporarily, as their main topics. This amounts to so much noise, for the well informed, and is thus ignored. Veterans of the gold and silver trade understand that the more prices rise, the greater must follow the volatility in these markets because the perpetrators of the criminal enterprise they expose grow more motivated to try and derail the rise while capitalizing on the opportunities they create to cover shorts and fleece the sheep.
For example, on May 5th, CNN published a story with the headline, "Oil leads commodities price plunge". According to the story;
"Small investors, who had piled into the precious metal for months, scrambled to sell their holdings, fearing heavy losses. Silver fell 12.9 per cent on Thursday to below $35, bringing its losses in the past week to 31 per cent."
The story implies that losses were incurred by small investors who bought at the high and sold at the low. The effect of publishing such a biased statement (did the author quote or even speak to any "small investors"? Of course not.) is to sow fear into the hearts of small investors to induce them to sell. Curiously, that story has since been moved from CNN's web site. Note there has never been a story by CNN that features the 300% gains investors who bought precious metals in the first part of the last decade might have won.
The chanted mantra of "globalization" is specifically designed and distributed through the mainstream media to establish the expectation by the residents of main street for a single global government. The bankrupting of governments in conjunction with the destruction of the U.S. dollar are key milestones in the progress to that ultimate objective. Its going to
The success of contrarians in accumulating and preserving wealth through gold and silver is not lost on the banking dynasties. They are acutely aware of this persistent hole in their one world road map. And that's why precious metals have been the focus of so much attention by both investors, and the perpetrators of derivatives market fraud in an effort to dissuade investors from investing. This month's concerted assault on precious metals through the futures market is a case in point, and a classic pattern in the ten year bull market in precious metals.
Silver was singled out for special assault by the banking dynasties, or "cartel" as the Gold Anti-trust Action Committee and its adherents refer to them, as its recent outperformance of gold has put it firmly in the crosshairs of the cartel, as its new popularity drains even more savings targeted by the cartel away from that strategy's currency, the U.S. dollar, and into silver, where the value is safe. Watch how quickly silver bounces back, as more and more investors in physical silver and gold use the pattern evident in the cartel's bumbling strategy to snap up cheap silver.
Gold too, but the veteran audience grows immune to its gyrations, as they are now de rigeur for those who follow the market. Silver is especially worrisome to the cartelset as the diminished inventory of the London Metals Exchange, now below 33 million ounces, down from 90 million ounces, threatens deliverability of silver should real futures traders recognize the opportunity and demand delivery.
Gold and silver, despite being tiny markets in comparison to the derivatives scam they support, are the focus of the cartel apparatus and management for the simple reason that within the performance of the unencumbered gold and silver spot price market, the smoke emanates from the gun in use during the crime. And as everybody knows, where there is smoke, there is, or soon will be, fire.
For now, however, the poor dumb bastards who bought gold and silver, and in a panic, have sold at a loss are now back in the hands of the pro-dollar-anti-gold majority that is the mentally enslaved canon fodder for the cartel. They will see gold and silver rise strongly in the inevitable next leg up of the gold and silver bull market, but they will willfully ignore the evidence of the broader trend, and warn anyone sufficiently naïve to listen of the feckless injustice and stupidity of buying gold and silver, and use the example of his own stupidity to prove the veracity of his advice.
Such is the world we live in. Governed by misanthropes and sociopaths, the world economy is on the ropes, and the banking dynasties are in fine form. On August 9, 2010, Goldman Sachs reported to the Financial Crisis Inquiry Commission that 25 to 35 percent of its revenue was from derivatives. Something to keep in mind the next time you see the mainstream financial press publish a story in which Goldman Sachs says "sell" or "buy" commodities.
James West is an independent capital markets entrepreneur and investor. He is publisher of the Midas Letter.