Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver End Slightly Higher on the Week
By: Chris Mullen, Gold-Seeker.com

Ira Epstein's Metals Video 6 23 2017
By: Ira Epstein

COT Gold, Silver and US Dollar Index Report - June 23, 2017
By: GoldSeek.com

Gold Summer Doldrums
By: Adam Hamilton, Zeal Intelligence

Jim Rickards Exclusive: Dollar May Become “Local Currency of the U.S.” Only
By: Mike Gleason

Proof That This Economic recovery narrative is false
By: Sol Palha

Blow off Top: Could It Happen?
By: David Chapman

EUR/JPY Exchange Rate and Gold
By: Arkadiusz Sieron

GoldSeek Radio Nugget: Bob Hoye and Chris Waltzek
By: radio.GoldSeek.com

All Roads Lead to the Bubble-City Danger Zone
By: Gary Christenson

 
Search

GoldSeek Web

 
Forget about Fake News... Let’s Talk about Fake Markets


 -- Published: Wednesday, 31 May 2017 | Print  | Disqus 

By Clint Siegner

The U.S. and other nations with “free market” economies got credit for defeating the communists in Russia. That is ironic, because it is now more clear than ever that western leadership actually shares the Soviet inclination for central planning, and they have been increasingly intervening in our markets since the collapse of the USSR.

Our officials make economic policy as if healthy markets must be planned and coerced, much like the politburo. Some of this policy is created and run in the open; the government bailouts, Quantitative Easing, and zero interest rate policy, for example.

Other programs are more secretive. Investors know the “Plunge Protection Team” exists to be the buyer in markets when all genuine buyers have left. But we can only guess as to what that crew actually does day to day.

What these self-appointed market masters do in complete darkness is likely even more controversial and intrusive. They remain violently opposed to audits and other attempts to impose accountability.

But, recently, some leaked documents have given a sense of what western officials do behind closed doors.

Manipulation

They have actually been micromanaging markets since the 1970s.

Ronan Manly with Bullionstar wrote a terrific piece outlining the coordination among western central bankers pertaining specifically to the gold market after Nixon shut the “gold window” and launched the era of purely fiat currencies.

Wikileaks published a secret memo sent from London to the U.S. Treasury Department regarding the purpose behind the formation of the futures markets for gold.

Officials wanted to create a paper market which dwarfed the physical market and encouraged volatility; all with the aim of discouraging investors from holding bullion. To wit:

TO THE DEALERS' EXPECTATIONS, WILL BE THE FORMATION OF A SIZABLE GOLD FUTURES MARKET. EACH OF THE DEALERS EXPRESSED THE BELIEF THAT THE FUTURES MARKET WOULD BE OF SIGNIFICANT PROPORTION AND PHYSICAL TRADING WOULD BE MINISCULE BY COMPARISON. ALSO EXPRESSED WAS THE EXPECTATION THAT LARGE VOLUME FUTURES DEALING WOULD CREATE A HIGHLY VOLATILE MARKET. IN TURN, THE VOLATILE PRICE MOVEMENTS WOULD DIMINISH THE INITIAL DEMAND FOR PHYSICAL HOLDING AND MOST LIKELY NEGATE LONG-TERM HOARDING BY U.S. CITIZENS.

The futures markets have served their nefarious purpose very well. Americans today view gold as volatile and risky, and almost no one owns any of the physical metal.

So it is with good reason that many investors look at today’s markets and sense the disconnect from reality. We now know what artificial forces produce record high stock prices relative to earnings.

We understand why precious metals investors have been driven to distraction wondering why prices never seem to reflect fundamentals. We can see why government regulators might intentionally turn a blind eye to clear evidence of bank traders rigging prices and cheating customers.

What are the consequences of all this central planning? It would be impossible to list the full effects. But is easy to identify some of the winners and losers that have been hand-picked by the bankers and bureaucrats who run this show.

Fake Markets

The banking and finance industry has more than doubled as a percent of GDP over the past 40 years. The government sector is also just about double the size it was in the 1950s in proportion to the economy. Meanwhile, the gold and silver markets spend years with prices held at, or below, the cost of production – a playground for crooked bullion bankers.

Western central planners aren’t going to be immune from the consequences of their actions.

People are waking up to just how fake today’s markets are. After all the public interventions never end, the leaked documents are generating new awareness, and many fundamental investors now sense the markets are little more than Potemkin villages – even if they don’t fully understand why.

These factors are eroding confidence, which means the ultimate consequence of all this central planning may not be so different from that which befell the USSR. The facade can be maintained no longer and therefore crumbles.

We may be one big shock in the financial markets away from a collapse of confidence. The jig will be up. And, we can hope, responsibility will be pinned where it belongs. The central planners here in the West should be remembered for being just as inept and destructive as those who once set Soviet quotas for the production of ball bearings.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

 


| Digg This Article
 -- Published: Wednesday, 31 May 2017 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.