Olduvaiblog: Musings on the coming collapse

Home » 2014 » March » 06 (Page 2)

Daily Archives: March 6, 2014

Gold Price Manipulation: What's Next? | Zero Hedge

Gold Price Manipulation: What’s Next? | Zero Hedge.

gold fixing

Source picture: Bloomberg

It appears that the gold fanatics were right the whole time. For at least ten years, the price of gold has been manipulated. The banks are the bad guys once more, who would have thought?!

If you work at a bank and do your job the way you are supposed to, it might be smart regardless to not talk about your professional activities when you are at a party this week. Although there are ‘only’ 5 banks involved in the scandal this time, the image of the whole sector will suffer again.

The rumor that the gold price was being manipulated had been going around for quite some time and, surprise surprise, it was true! It would be impossible to draw a different conclusion after reading the demolishing report from New York University’s Stern School of Business Professor Rosa Abrantes-Metz and Moody’s Investors Service’s Managing Director Albert Metz. The words in the report were carefully chosen, leaving room for interpretation, although no one will be fooled.

If it looks like a duck, quacks like a duck, flies like a duck, well, it is a duck then, isn’t it.

 

Gold price: decades of fixing

The process of gold fixing, which is the setting of the gold price twice each business day, just screams for manipulation, conspiracy and corruption by the banks involved. And the empirical data that was used from 2001 to 2013, shows ‘inexplicable price movements’ from as far back as 2004 (!) during the midday fix. It probably won’t surprise you that those ‘inexplicable price movements’ most often were downward price movements. In 2010 for example, 92 percent (!) of the large price movements during gold fixing were negative.

Gold fixing is done twice each business day, at 10:30am and 3pm London time during a conference call. It used to be done face to face, but since 2004 it is just a conference call. The fixing in itself is still done, however, and is vulnerable to manipulation. These calls between the five banks that are involved usually last no longer than 10 minutes, but have lasted up to an hour or longer.

The similarities with the fixing of, for example, the Euribor and Libor interest rates are obvious. The damage done by those events is impossible to calculate, but you can take it from us that we are talking about billions of dollars. Regular citizens are often at the receiving end of all this manipulation, as governments and its tax payers are the ones who pick up the bill all too often.

 

Damage: unknown

It is still too early to make a sensible estimation of the damage that the manipulation of the gold price has caused. But the story will be the same: fines will be given without any further consequence. The current old-fashioned way of fixing the gold price has seen its days however, as confidence in the process has gone up in smoke. Another method will take its place, probably with greater control and supervision.

We are curious of course, how this whole ordeal will play out. The researchers of the report are calling for a deeper investigation of the matter. They obviously want to pass on this hot potato, which is understandable. Regardless of the above, further investigation is being done in Germany already.

We predict that there will be large fines, lots of accusations and a new method for gold fixing. That, or the investigators will not succeed at producing enough evidence: considering what is at stake here, it is impossible to exclude any scenario. It is hard to surprise us these days. Ultimately, true price discovery will take hold of the gold market. That is nature’s law, which can’t be fixed by a bunch of bankers.

Want to invest in gold? First read our GUIDE TO GOLD!

 

Sprout Money offers a fresh look at investing. We analyze long lasting cycles, coupled with a collection of strategic investments and concrete tips for different types of assets. The methods and strategies from Sprout Money are transformed into the Gold & Silver Report and the Technology Report.

Follow us on Twitter @SproutMoney

Gold Price Manipulation: What’s Next? | Zero Hedge

Gold Price Manipulation: What’s Next? | Zero Hedge.

gold fixing

Source picture: Bloomberg

It appears that the gold fanatics were right the whole time. For at least ten years, the price of gold has been manipulated. The banks are the bad guys once more, who would have thought?!

If you work at a bank and do your job the way you are supposed to, it might be smart regardless to not talk about your professional activities when you are at a party this week. Although there are ‘only’ 5 banks involved in the scandal this time, the image of the whole sector will suffer again.

The rumor that the gold price was being manipulated had been going around for quite some time and, surprise surprise, it was true! It would be impossible to draw a different conclusion after reading the demolishing report from New York University’s Stern School of Business Professor Rosa Abrantes-Metz and Moody’s Investors Service’s Managing Director Albert Metz. The words in the report were carefully chosen, leaving room for interpretation, although no one will be fooled.

If it looks like a duck, quacks like a duck, flies like a duck, well, it is a duck then, isn’t it.

 

Gold price: decades of fixing

The process of gold fixing, which is the setting of the gold price twice each business day, just screams for manipulation, conspiracy and corruption by the banks involved. And the empirical data that was used from 2001 to 2013, shows ‘inexplicable price movements’ from as far back as 2004 (!) during the midday fix. It probably won’t surprise you that those ‘inexplicable price movements’ most often were downward price movements. In 2010 for example, 92 percent (!) of the large price movements during gold fixing were negative.

Gold fixing is done twice each business day, at 10:30am and 3pm London time during a conference call. It used to be done face to face, but since 2004 it is just a conference call. The fixing in itself is still done, however, and is vulnerable to manipulation. These calls between the five banks that are involved usually last no longer than 10 minutes, but have lasted up to an hour or longer.

The similarities with the fixing of, for example, the Euribor and Libor interest rates are obvious. The damage done by those events is impossible to calculate, but you can take it from us that we are talking about billions of dollars. Regular citizens are often at the receiving end of all this manipulation, as governments and its tax payers are the ones who pick up the bill all too often.

 

Damage: unknown

It is still too early to make a sensible estimation of the damage that the manipulation of the gold price has caused. But the story will be the same: fines will be given without any further consequence. The current old-fashioned way of fixing the gold price has seen its days however, as confidence in the process has gone up in smoke. Another method will take its place, probably with greater control and supervision.

We are curious of course, how this whole ordeal will play out. The researchers of the report are calling for a deeper investigation of the matter. They obviously want to pass on this hot potato, which is understandable. Regardless of the above, further investigation is being done in Germany already.

We predict that there will be large fines, lots of accusations and a new method for gold fixing. That, or the investigators will not succeed at producing enough evidence: considering what is at stake here, it is impossible to exclude any scenario. It is hard to surprise us these days. Ultimately, true price discovery will take hold of the gold market. That is nature’s law, which can’t be fixed by a bunch of bankers.

Want to invest in gold? First read our GUIDE TO GOLD!

 

Sprout Money offers a fresh look at investing. We analyze long lasting cycles, coupled with a collection of strategic investments and concrete tips for different types of assets. The methods and strategies from Sprout Money are transformed into the Gold & Silver Report and the Technology Report.

Follow us on Twitter @SproutMoney

Tories Deliberately Disrupted Elections Watchdog's Testimony: NDP

Tories Deliberately Disrupted Elections Watchdog’s Testimony: NDP.

OTTAWA – The Harper government is being accused of trying to limit the chief electoral watchdog’s testimony on its proposed overhaul of election laws.

Marc Mayrand, who has been highly critical of the reforms, was supposed to have 90 minutes this morning — half an hour longer than usual — to testify on the reforms at the Commons procedure and House affairs committee.

The Conservatives agreed to the extra 30 minutes earlier this week as part of a deal to end a filibuster at the committee by New Democrat MP David Christopherson.

But the Conservatives have moved this morning to limit debate on two other bills, requiring votes in the House of Commons at the same time that Mayrand’s testimony was to begin.

Debate and votes on the time allocation motions have now left Mayrand cooling his heels for an hour, with no end in sight.

NDP MP Paul Dewar accuses the Conservatives of orchestrating the timing of the votes to disrupt Mayrand’s testimony.

Government House Leader Peter Van Loan calls that a baseless conspiracy theory, saying the committee is free to rearrange its business to give Mayrand as much time as it pleases.

And he says the NDP has some nerve to complain about the disruption, considering Christopherson’s filibuster delayed the chief electoral officer’s appearance at committee for more than a week.

The filibuster was aimed at forcing the government to agree to cross-country hearings on its controversial proposed changes to the Canada Elections Act, which the NDP believes are designed to stack the deck in the Conservative party’s favour.

Among other things, the reforms would impose stiffer voter identification requirements, eliminate the ability of people to vouch for voters who don’t have proper identification, and increase the amount of money political parties can spend during election campaigns.

As well, Mayrand has said he fears the changes would muzzle him, allowing him to communicate with Canadians only for the purpose of explaining how, where and when to vote.

Tories Deliberately Disrupted Elections Watchdog’s Testimony: NDP

Tories Deliberately Disrupted Elections Watchdog’s Testimony: NDP.

OTTAWA – The Harper government is being accused of trying to limit the chief electoral watchdog’s testimony on its proposed overhaul of election laws.

Marc Mayrand, who has been highly critical of the reforms, was supposed to have 90 minutes this morning — half an hour longer than usual — to testify on the reforms at the Commons procedure and House affairs committee.

The Conservatives agreed to the extra 30 minutes earlier this week as part of a deal to end a filibuster at the committee by New Democrat MP David Christopherson.

But the Conservatives have moved this morning to limit debate on two other bills, requiring votes in the House of Commons at the same time that Mayrand’s testimony was to begin.

Debate and votes on the time allocation motions have now left Mayrand cooling his heels for an hour, with no end in sight.

NDP MP Paul Dewar accuses the Conservatives of orchestrating the timing of the votes to disrupt Mayrand’s testimony.

Government House Leader Peter Van Loan calls that a baseless conspiracy theory, saying the committee is free to rearrange its business to give Mayrand as much time as it pleases.

And he says the NDP has some nerve to complain about the disruption, considering Christopherson’s filibuster delayed the chief electoral officer’s appearance at committee for more than a week.

The filibuster was aimed at forcing the government to agree to cross-country hearings on its controversial proposed changes to the Canada Elections Act, which the NDP believes are designed to stack the deck in the Conservative party’s favour.

Among other things, the reforms would impose stiffer voter identification requirements, eliminate the ability of people to vouch for voters who don’t have proper identification, and increase the amount of money political parties can spend during election campaigns.

As well, Mayrand has said he fears the changes would muzzle him, allowing him to communicate with Canadians only for the purpose of explaining how, where and when to vote.

Ukraine Acting President Loses It Over "Crime Against Nation" Crimea Referendum | Zero Hedge

Ukraine Acting President Loses It Over “Crime Against Nation” Crimea Referendum | Zero Hedge.

Ukraine’s Acting President Turchynov is not happy about what his ‘fellow countrymen’ in the east are doing:

  • *UKRAINE PARLIAMENT TO DISSOLVE CRIMEA LEGISLATURE: TURCHYNOV
  • *UKRAINE PRESIDENT SAYS ONLY NATIONAL CRIMEA VOTE IS LEGAL
  • *UKRAINE’S TURCHYNOV SAYS MARCH 16 REFERENDUM WOULD BE ‘FARCE’
  • *TURCHYNOV CALLS MARCH 16 REFERENDUM ‘CRIME AGAINST NATION’

So how will he enforce that decision? Perhaps this is the instigation that Putin has been waiting for? Bonds and precious metals are suddenly bid on this news.

It appears things are escalating once again…

  • *CRIMEA TATAR LEADER: MORE THAN 23,000 RUSSIAN TROOPS IN REGION
  • *CHUBAROV: ABOUT 10 UKRAINE ARMY GARRISONS SURROUNDED IN CRIMEA

This won’t end well as Turchynov adds, Ukraine’s territorial integrity is sovereign and unassailable

Ukraine Acting President Loses It Over “Crime Against Nation” Crimea Referendum | Zero Hedge

Ukraine Acting President Loses It Over “Crime Against Nation” Crimea Referendum | Zero Hedge.

Ukraine’s Acting President Turchynov is not happy about what his ‘fellow countrymen’ in the east are doing:

  • *UKRAINE PARLIAMENT TO DISSOLVE CRIMEA LEGISLATURE: TURCHYNOV
  • *UKRAINE PRESIDENT SAYS ONLY NATIONAL CRIMEA VOTE IS LEGAL
  • *UKRAINE’S TURCHYNOV SAYS MARCH 16 REFERENDUM WOULD BE ‘FARCE’
  • *TURCHYNOV CALLS MARCH 16 REFERENDUM ‘CRIME AGAINST NATION’

So how will he enforce that decision? Perhaps this is the instigation that Putin has been waiting for? Bonds and precious metals are suddenly bid on this news.

It appears things are escalating once again…

  • *CRIMEA TATAR LEADER: MORE THAN 23,000 RUSSIAN TROOPS IN REGION
  • *CHUBAROV: ABOUT 10 UKRAINE ARMY GARRISONS SURROUNDED IN CRIMEA

This won’t end well as Turchynov adds, Ukraine’s territorial integrity is sovereign and unassailable

Crimea May (Or May Not) Be Part Of Russia As Of This Moment | Zero Hedge

Crimea May (Or May Not) Be Part Of Russia As Of This Moment | Zero Hedge.

Moments ago, Reuters blasted the following headline:

DECREE MAKING CRIMEA PART OF RUSSIA HAS COME INTO FORCE FROM MOMENT OF ADOPTION; RUSSIAN ARMED FORCES ARE ONLY LEGITIMATE FORCES IN REGION -DEPUTY PRIME MINISTER OF CRIMEA

On the surface, this would mean that the Russian annexation of the Crimea if complete (and East Ukraine is coming). Especially when one considers that earlier Crimea also said it could adopt the Russian rouble as its currency and “nationalise” state property as part of plans to join the Russian Federation, a regional official was quoted as saying on Thursday.

The only problem as we reported earlier is that Kiev opened a criminal investigation against Crimean Prime Minister Sergei Askyonov, who was appointed by the region’s parliament last week. The Ukrainian government does not recognise his authority or that of the parliament. In other words, Kiev will not respect the Crimea’s popular choice, even if it is fully supported by Putin, which means that a showdown, one in which Russia proclaims it is defending the democracy of the Crimea against the Kiev government, is now almost inevitable.

Crimea May (Or May Not) Be Part Of Russia As Of This Moment | Zero Hedge

Crimea May (Or May Not) Be Part Of Russia As Of This Moment | Zero Hedge.

Moments ago, Reuters blasted the following headline:

DECREE MAKING CRIMEA PART OF RUSSIA HAS COME INTO FORCE FROM MOMENT OF ADOPTION; RUSSIAN ARMED FORCES ARE ONLY LEGITIMATE FORCES IN REGION -DEPUTY PRIME MINISTER OF CRIMEA

On the surface, this would mean that the Russian annexation of the Crimea if complete (and East Ukraine is coming). Especially when one considers that earlier Crimea also said it could adopt the Russian rouble as its currency and “nationalise” state property as part of plans to join the Russian Federation, a regional official was quoted as saying on Thursday.

The only problem as we reported earlier is that Kiev opened a criminal investigation against Crimean Prime Minister Sergei Askyonov, who was appointed by the region’s parliament last week. The Ukrainian government does not recognise his authority or that of the parliament. In other words, Kiev will not respect the Crimea’s popular choice, even if it is fully supported by Putin, which means that a showdown, one in which Russia proclaims it is defending the democracy of the Crimea against the Kiev government, is now almost inevitable.

Immunity For Telecoms Targeted In Campaign Against Bill C-13

Immunity For Telecoms Targeted In Campaign Against Bill C-13.

The Huffington Post Canada  |  By Posted: 03/05/2014 3:20 pm EST  |  Updated: 03/05/2014 3:59 pm EST

Share on Google+

Telecom companies would be granted immunity for handing over information on their customers without a warrant under a law meant to target cyberbullying, civil liberties groups say.

OpenMedia is leading a coalition of organizations that are lining up against Bill C-13, which the Harper government tabled last fall in response to a series of high-profile cyberbullying cases.

Digital law experts and civil liberties groups say the law goes far beyond targeting online bullying, and essentially revives many of the elements of a controversial earlier online spying bill.

The Tories pulled the plug on that proposed law in 2012 after then-Public Safety Minister Vic Toews caused controversy by asserting that opponents of the bill aresiding “with child pornographers.”

The new proposed law, Bill C-13 or the Protecting Canadians from Online Crime Act, “will allow authorities access to the private lives of millions of law-abiding Canadians, even if they’re not suspected of wrong-doing,” OpenMedia said in a statement released Wednesday.

“Bill C-13 would let those authorities create detailed profiles of Canadians based on who they talk to and what they say and do online. The legislation also provides immunity to telecom providers who hand over the private information of Canadians without a warrant,” the group said.

University of Ottawa digital law professor Michael Geist wrote last November that the proposed law would essentially allow authorities to request data on any telecom subscriber, regardless of whether the request is in connection to the investigation of a crime.

It simply opens the door to requests for voluntary assistance for any reason whatsoever,” Geist wrote.

Justice Minister Peter MacKay says the bill will not erode internet privacy rights, and telecom companies will only be granted immunity if their disclosure of subscriber data complies with the law.

But Geist and others have accused MacKay of misleading the public by suggesting these disclosures would always involve a warrant, which is not the case. Telecom companies already have the right under the law to disclose subscriber data to authorities without a warrant.

Critics have charged the government with creating a legislative “Trojan horse” by tacking on these new provisions to a bill ostensibly meant to protect against cyberbullying.

“They’re bringing through the back door what they couldn’t get through the front door,” OpenMedia executive director Steve Anderson told Huffington Post Canada.

Anderson said the Harper government has been “more successful with the branding” of this bill, thanks to its use of the cyberbullying issue as a way to frame the bill.

He said his organization is not opposed to the cyberbullying elements of the bill, and said he could support the NDP’s proposal to split off that part of the bill from the rest. That part of the bill would make it illegal to distribute “intimate images” without the consent of the person in the images.

But the parts of the bill dealing with access to subscriber information “need to be fixed,” Anderson said.

Anderson noted that law enforcement groups such as the Canadian Association of Chiefs of Police have been lobbying heavily for the bill.

The telecom immunity provisions are similar to those introduced in the U.S., where civil liberties groups attempted to sue telecom companies for eavesdropping on subscribers without a warrant in the years after 9/11.

The 2008 FISA Amendments Act provided immunity to telecoms from such lawsuits. The U.S. Supreme Court upheld the law in 2012.

Since then, a series of documents from the NSA, leaked by whistleblower Edward Snowden, have indicated that warrantless online surveillance by governments may be far more extensive than previously thought.

Leaked documents from Snowden illustrated that Canada has helped allied countries to carry out warrantless surveillance. The documents also indicated Canada’s electronic spying agency, CSEC, collected data from Canadians’ computers at an airport WiFi hotspot, though a federal watchdog later said Canadians were not tracked during that experiment.

Many anti-cyberbullying activists have hailed the legislation. Carol Todd, mother of cyberbullying victim Amanda Todd, wrote in a blog at HuffPost Canada last year that the bill would have saved her daughter’s life.

MacKay has said the government would like to see the bill pass into law this spring.

The end could be nearer than you think — Paul Craig Roberts – PaulCraigRoberts.org

The end could be nearer than you think — Paul Craig Roberts – PaulCraigRoberts.org.

March 3, 2014

The end could be nearer than you think

Readers:

We are having trouble today with the website. I do not know if it is problems caused by the typical incompetence of US business enterprises, including those who host websites and have offshored American jobs to foreign countries, or whether it is National Stasi Agency induced. Certainly, the propagandistic US government does not want any truth available to compete with Washington’s systematic lies. Washington is desperate to control the explanation of the situation in Ukraine that, as a result of Washington’s incompetence, has resulted in Ukraine falling under control of neo-nazi elements, whose rabid anti-semitic and Russophobic actions and rhetoric have caused Ukraine to split in half. If you were unable to access my column today, use this URL:http://www.paulcraigroberts.org/2014/03/03/washingtons-arrogance-hubris-evil-set-stage-war/

Eastern and southern Ukraine are Russian-speaking former Russian territories added to Ukraine in the 1950s by the Communist Party leadership of the Soviet Union. These provinces are agitating to be returned to Mother Russia where they certainly belong. They are determined not to be part of a neo-nazi regime that will be looted by Western bankers and corporations and be forced to host US missile bases that will make western Ukraine a target for nuclear annihilation, like Poland and Czech Republic.

The propagandistic rhetoric issuing from the mouths of the White House Fool and the excrement that the Fool placed in charge of the Department of State is designed to cover up the abject failure of the Obama regime’s plot to install its puppets as Ukraine’s new rulers. The Obama regime is too stupid to comprehend that its rhetoric is preparing the gullible and ignorant American population for war with Russia. The neoconservative ideologues, who have been lusting for war with Russia ever since the 1980s when I was a member of the Committee on the Present Danger, will take advantage of the war preparation, which the White House Fool and his State Department excrement are creating with their rhetoric, to start a war that will destroy life on earth.

The neoconservatives are insane. They believe that nuclear war can be won, and that the US has the advantage to destroy Russia in a first strike.

Americans are so ignorant and gullible that they do not realize that their very existence is on the line, and that the insane neoconservatives who control the weak Obama puppet are determined to cross the line.

If any are still so gullible as to believe that the illegal deposing of the elected government of Ukraine was a “sincere indigenous revolt against a corrupt government,” the delusional should watch this video of the neo-nazi intimidating the US stooge who is a member of what Washington pretends is the government of Ukraine. https://www.youtube.com/watch?v=BV5Wm3qXfy4

Here is a video of the same nazi thug intimidating another collection of US stooges that Washington pretends is a government: https://www.youtube.com/watch?v=1oVsgJMqHNY

God help the American people. Their ignorance and gullibility make them an enormous threat to life on earth.

Yes, I know. I have readers who have escaped The Matrix. But the majority of the American population is lost.

War will be the result of the ignorance, gullibility, and stupidity of the American population, its prostitute media, and the hegemonic ambitions of the evil neoconservatives. The corrupt rulers of Europe will sell out their peoples for American money until they are all vaporized in nuclear explosions.

The total corruption of truth, integrity, and morality that Washington has imposed on the Western world has aligned the West with the powers of Darkness and death. No greater evil exists than the government of the United States.

About Dr. Paul Craig RobertsPaul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book,The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available.
%d bloggers like this: