Is This What The World Has Come To?
Eric King:
Chris, today we are going to take a
trip down the rabbit hole of Western governments moves toward a
frightening control of everything on the planet, including all
financial markets.
Let's start with this note from the
Bill King Report commenting on the Wall Street Journal article
"U.S. Investigates at Least 10 Major Banks for Possible Rigging
of Precious-Metals Markets.
Chris Powell:
A similar investigation of the
manipulation of the gold market by European banks was quietly
squashed.
It's reasonable to surmise that
investigators quickly discovered that the biggest banks were
often doing the bidding for central banks to keep excess
liquidity flowing into financial assets instead of gold.
Surging precious metal prices, like
in 2011, could induce investors to eschew financial assets for
metals. This is what occurred in the late 1970s, and it could
usurp central banks' and sovereigns' plans to inflate away
unserviceable debt.
Trip Down The Rabbit Hole
Eric King:
Let's take that trip down the rabbit
hole now, Chris.
Chris Powell:
These investigations will never get
anywhere and have never gotten anywhere because all these
investigators are going to find out very quickly that the
investment banks that are manipulating the monetary metals
markets and other major markets are doing it as the agents of
Western central banks.
They are the intermediaries for
Western central banks…
Market-Rigging And Manipulation Legal
In The U.S.
This market-rigging is fully authorized by law here in the
United States.
The
Gold Reserve Act of 1934, as
amended in the 1970s, specifically authorizes the U.S. Treasury
Department - through the Exchange Stabilization Fund (ESF)
- to intervene secretly in and rig not only the gold market,
which was the original authorization, but as amended in the
1970s the ESF is authorized to rig any market - any and all
financial instruments.
No Fingerprints
The government guys figured this out a long time ago. They got
themselves authorized by law to secretly intervene in any market
and to rig any market.
That is why these investigations
never get anywhere because the positions in the futures markets
that are so manipulative are central bank positions being
implemented through intermediaries to keep central bank
fingerprints off the rigging.
Blythe Masters
JPMorgan’s global head of commodities
"This Is The Government's Activity,
Not Ours"
The investment banks can just tell the investigators,
'This is not our own account.
This is a client's account and the client is the government
and the government is fully authorized to rig all markets in
secret.'
Other Western Countries In On The Fix
Other nations have similar devices. In the United Kingdom they
have what is called
The Exchange Equalization Account,
which is a fund run by the Bank of England.
Also, a year ago the Director of
Market Operations of the Banque de France, Alexandre Gautier,
made a presentation to the London Bullion Market Association
(LBMA)
meeting in Rome and said that the Banque de France is trading
gold for its own account and for the accounts of other central
banks nearly on a daily basis.
Western Governments Ruthlessly
Controlling Everything In The World
Now, either they are trading gold on nearly a daily basis for
fun, or they are doing it for policy purposes.
I don't think the policy purposes
are terribly hard to imagine. What it means is we do not have a
market economy in the West anymore. We have a fascist-style
economy with governments secretly setting prices.
This is the mechanism by which
central banks (in the West) are controlling the value of all
capital, labor, goods and services in the world.
Special Government Discounts To
Secretly Rig Markets
Some more documentation of this came out a few months ago when
Eric Scott Hunsader discovered on the internet site of
the U.S. Commodity Futures Trading Commission (CFTC)
the documents of the CME Group's Central Bank Incentive Program.
Well,
CME Group
runs all the major futures exchanges in the United
States, and according to the documents filed by the CME Group,
CME Group has been offering volume trading discounts to central
banks for secretly trading all the futures markets in the United
States - not just the financial instrument markets, but the
agricultural commodity markets and the monetary metals markets
as well.
This Is The BS Excuse?
So there is secret trading in futures markets going on in the
United States.
The central banks are getting
discounts for this (manipulative trading). The CME Group
justified these secret futures trading accounts for central
banks as a matter of adding liquidity to the futures markets.
Nobody Can Trade Against A Central
Bank
I thought this (justification) was utterly ridiculous because
it's liquidity in the sense of the Atlantic and Pacific Oceans.
Nobody can trade against a central bank.
Central banks create infinite
money. If central banks are in a market, it is no longer a
market anymore. That is why these investigations will never go
anywhere.
They will never reach any conclusion
or indictment against an investment bank that is the
intermediary for a central bank because this market-rigging is
fully authorized by law.
Mainstream Media In On The Cover-up
All we can do as advocates of free markets is to expose this so
that people don't play the game anymore.
Mainstream media in this country and in
the West are so lacking.
This is the great virtue of
alternative organizations such as King World News. This is the
only place where this issue can be raised.
Reginald Howe vs. All The Power And
Money In The World
Another place where this is public record was in U.S. District
Court in Boston, back in 2001.
Reginald (Reg) Howe was suing the
Bank for International Settlements (BIS),
the U.S. Treasury Department (DoT)
and the Federal Reserve (FED),
for gold market rigging, and suing the major investment banks as
well.
There was one public proceeding in that case before it was
dismissed on technical jurisdictional grounds.
I attended that hearing. Reg Howe
was on one side of the courtroom and on the other side there
were 15 or more lawyers for the BIS, U.S. Treasury, the
Federal Reserve, Goldman Sachs, JP Morgan and the other
bullion banks.
"Your Honor, The Market-Rigging Is
Legal"
An assistant U.S. attorney got up to argue in favor of the
government's motion for summary judgment, which is a motion for
dismissal on the grounds that even if everything complained of
in the lawsuit is true, there is no remedy at law and the
lawsuit has to be dismissed.
The assistant U.S. attorney got up in support of the summary
judgment motion and said that while the U.S. government did not
admit doing anything that the plaintiff complained of, the U.S.
government claimed the power to do everything that the plaintiff
complained of as authorized by the
Gold Reserve Act of 1934, as
amended in the 1970s.
U.S. Claims The Power To Secretly Rig
All Markets
So in this one hearing in Reginald Howe's lawsuit,
Howe vs. Bank for International
Settlements, et al, and I call it "Howe vs. All the
Money and Power in the World" - in this one hearing a U.S.
attorney got up and said that the U.S. government claims the
power to secretly rig the gold market (and for that matter all
financial markets).
That's public record, but, of
course, nobody will ask the U.S. government about this. How's
that for a trip down the rabbit hole, Eric?
