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Fed and Treasury are now so desperate they don't care about getting caught

By: Chris Powell, Secretary/Treasurer, GATA

-- Posted Sunday, 13 October 2013 | | Disqus

Dear Friend of GATA and Gold:

Disappointing as the price action in gold is, it also represents progress for our side insofar as the Western central banks and the U.S. government in particular -- the Federal Reserve and Treasury Department -- are now so desperate to support the U.S. dollar and hold the parasitic banking system together that they don't care anymore about getting caught in their gold market interventions and, really, their interventions to rig all major markets.

From CNBC Friday:

* * *

Gold's Plunge Blamed on One Massive Sell Order

By Alex Rosenberg
Friday, October 11, 2013

Gold lost $25 in two minutes on Friday morning as the gold market experienced a massive surge in volume that triggered a halt in the middle of the plunge. The move took gold down to a three-month low and was felt across the commodity markets. And incredibly, a single sell order could be the culprit.

"It appears to have been an order to sell 5,000 gold futures contracts at market," Eric Hunsader of Nanex told when asked to explain the swift move at 8:42 a.m. EDT. "About 2,700 went off and tripped the stop logic, halting gold futures for 10 seconds while liquidity replenished. When enough liquidity returned (after 10 seconds), the balance of about 2,300 completed. ...

"Five thousand lots is huge," commented Rich Ilczsyzn, the founder of iiTrader and a CNBC contributor. "We don't know if it's a mistake or not."

* * *

Mistake? Ha! What a dunce.

Nobody understands it better than London metals trader Andrew Maguire, who talked to King World News about it.

"The Fed does not operate directly in the market," Maguire tells KWN. "They operate through two primary 'agent' banks. The bullion banks in turn time naked short gold sales in the futures market to coordinate what the Fed is doing in the more opaque foreign exchange markets.

"This is where the bullion banks become visible, because the bullion banks are provided with visibility into the market book. So they have an insider knowledge, and they can easily discern where it's best to surgically add large synthetic supply. This is not anything to do with the physical market.

"This is synthetic supply, to force the paper market participants to capitulate longs. And the trading profits go straight into the bullion banks' hands. It also draws in other participants to go short."

Maguire's King World News interview is excerpted here:

Turd Ferguson of the TF Metals Report sees JPMorganChase's hand in gold's decline, as the bank is having to deliver metal this month. When Morgan has to deliver, Ferguson shows, the price falls, and when Morgan is taking delivery, it rises:

At the Got Gold Report, Gene Arensberg sees bullion banks spouting the usual disinformation so that they might trade to the contrary:

"I think people are focused on the very short term while the gold market itself is focused much longer term and is beginning to discount a new bull leg for commodities in general and gold in particular. I would wager that the Goldman, Credit Suisse, and Morgan Stanley analysts have only gone public at the very tail end of their bearish trades in order to cover them. They are likely buying into this decline, in other words, or soon will be."

Arensberg's commentary is here:

Neither is Swiss gold fund manager Egon von Greyerz fooled. Von Greyerz tells King World News: "Physical demand is incredibly strong, but, in spite of that, gold is not going up. So there is clearly major intervention in paper gold, a market which is 100 times bigger than the physical markets. Can they push gold lower to test the lows again? In my view this is very unlikely."

Von Greyerz's commentary is excerpted at KWN here:

In another King World News interview, even Art Cashin of UBS, a CNBC commentator, remarks at length on how he's getting suspicious of the gold market.

Cashin tells KWN: "While I am far from being a conspiracy theorist, I could see where some of the people involved in that asset class would be concerned because we've had several incidents of very large sales. And they all seem to come at approximately the same time in the relatively early morning in New York, usually before the stock market has opened. ... Why would you suddenly dump a large amount of gold? Why wouldn't you try to piecemeal it out over the day? ... Is somebody trying to send a message? Is somebody trying to influence the market?"

Uh-duh, Art!

His interview is posted at King World News here:

Meanwhile India acts as if it never gained its independence in 1947. The country remains the slavish tool of its central bank and thus of the colonizing West. Meeting his masters this week at the offices of the International Monetary Fund in Washington, the new governor of the Reserve Bank of India, Raghuram Rajan, obediently raised the possibility that the Indian government could sell its gold to pay its foreign debts, as if gold isn't always part of a nation's foreign exchange assets available for trade or as if, say, India couldn't also turn another national asset, the Taj Mahal, into a brothel for visiting central bankers.

"We bought over $60 billion in gold last year," Rajan said at an IMF forum. "Sixty billion dollars accounts for three-fourths of our current account deficit. If push comes to shove, we can pay the world in gold."

The world might like that a lot better than depreciating rupees -- or, for that matter, euros and dollars. Indeed, the Indian people themselves might like a chance to trade their rupees for their government's gold, now that the government has prevented them from buying gold from abroad and thereby prevented them from having their say in the currency markets.

Rajan's comments are reported from Washington by the Press Trust of India here:

So more and more people are understanding what GATA has been saying for years -- that, to preserve their unaccountable power over humanity, central banks surreptitiously rig the gold market and thereby are destroying all markets. But the people understanding this -- or understanding this and acknowledging it -- do not yet include those in the mainstream financial news media and executives of monetary metals mining companies.

Central banks can create money to infinity, and that is an enormous asset, but that is not their greatest asset. Their greatest assets are the cravenness of the mainstream financial news media and the mining industry's willingness to die quietly.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Join GATA here:

Louis Boulanger Now Seminar
Visitors Center, Holy Trinity Parnell
Auckland, New Zeland
Sunday, October 13, 2013

Gold Investment Symposium 2013
Luna Park Conference Center, Sydney, Australia
Wednesday-Thursday, October 16-17, 2013

The Silver Summit
Davenport Hotel, Spokane, Washington
Thursday-Friday, October 24-25, 2013

Mines and Money Australia
Melbourne Conference and Exhibition Centre
Tuesday, October 29-Friday, November 1, 2013

New Orleans Investment Conference
Sunday-Wednesday, November 10-13, 2013
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:

-- Posted Sunday, 13 October 2013 | Digg This Article | Source:

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