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Guest Post: The Rockefellers | In Gold We Trust

Guest Post: The Rockefellers | In Gold We Trust.

Written by 24 carat

The Rockefellers, The Rothschilds and many other giant Dynasties…

These financial industry giants lived through all the wealth cycles of the past 100 years and more. What used to be long term wealth investments evolved to the day-trading, making money activities, with a top in the year 2000. Then the financial industry morphed rapidly into the absurd High Frequency Trading. All wealth is now a spooky derivative of what it once was. Debt rules!

John D. Rockefeller Sr and Jr

John D. Rockefeller Sr and Jr

The US was the biggest gold reserve holder in the entire world, with 28,000 metric tons of gold in its vaults (60% of the world’s total gold reserves). Most, if not all, of that gold disappeared from the UST, whilst the financial industry  and the debt driven economy, expanded.  First there was the London Gold Pool selling central bank gold reserves, then in 1974 Louise Auchincloss Boyer discovered that N. Rockefeller was selling UST Fort Knox gold. Three days later she fell out of her window (July 3, 1974). Immediately afterwards a Fort Knox propaganda tour was organized. All gold fever stopped in 1980. Stock markets started their rise to the moon. Fifteen years later, the European System of Central Banks started their gold sales. Stock markets reached for the stars and suddenly The Queen made a propaganda tour through the London gold vaults (Dec, 2012). Now, China, Russia and other pro gold states (BRICS Development Bank) are accumulating the scare residues of available physical gold. The debt driven Western economy is in stagnation and the global debt crisis remains unsolved.

Where has all the physical bullion gold gone. Where is it concentrated after 45 years of distribution and very low paper gold prices. Hard to say, but the main flow of physical gold went certainly from West to East. Simply because the Western financial (pseudo) wealth industry was rising since 1980 and that made physical gold obsolete, in particular for the average Western man on the street.

The MSCI emerging market index is declining and never reached the Dow/Nasdaq/S&P heights. Physical gold has flown to these Eastern emerging (mostly surplus producing) markets whilst Western deficits are still rising. An upside down world,…or not. European banks have a $ 3.4 trillion exposure to the weak emerging markets who are suffering from brutal $ withdrawals.  China’s shadow banking is enormous and dangerous. The entire world has multiple fundamental reasons to embrace physical gold as a wealth asset, but only an extremely small minority keeps accumulating physical gold. The bulk of physical gold is now in the very strong hands of Western and Eastern giant dynasties and a relative very small group of gold wealth connected individuals. They all continue to accumulate, whatever the paper price of gold may discourage. They all anticipate the same looming catastrophe: pseudo-wealth destruction!

The Far & Middle East stores its wealth in physical gold and the West keeps going for financial industry pseudo-wealth and paper gold for making more (debt)money. This gold imbalance will increase strongly the more the gold price declines! Declining gold prices must encourage the further accumulation of risk assets.  The Western giants don’t care that Joe sixpack has no gold. They must feed their financial industry pseudo-wealth (buy stocks and debt paper). The Western giants, with trainloads of physical gold, don’t care that the scarce left-overs of available physical gold flows cheaply to the East. When the pseudo-wealth comes to an end and the East will say physical gold is the real store of wealth, the Western giants with gold in their vaults, remain wealthy. Then the whole (political) economic story restarts from scratch.

The giant dynasties *are* the financial industry. They produce and control the bulk of the debt-driven pseudo-wealth. The FED is even providing liquidity for Mario’s ECB (swaps). That’s why their balance sheet is diverging. Euro-land is in fact still $-land.

China’s present gold policies are building a base to take over the paper gold pricing from the dollar’s financial regime. The valuation of physical gold must be totally delinked from currency and risk assets. China wants an orderly and open Renminbi gold market with satisfactory gold market laws as to protect all wealth assets.  A gold market where all underground speculative activities are strictly forbidden. They invite all foreigners to gradually participate in this gold market with emphasis on the free floating valuation of physical gold. This is in 100% contrast with the de facto dollar’s gold pricing and gold policies. The dollar system doesn’t want your wealth assets to be protected with gold. One day, the masses will embrace China’s gold policies and leave the international $-reserve for what it never was (hard currency). The Western giants, indeed anticipated this all along with stealth accumulation of physical gold in their private vaults. They know the day of reckoning comes nearby.

Is a Major Gold Scandal Going Mainstream? Washington’s Blog

Is a Major Gold Scandal Going Mainstream? Washington’s Blog.

Allegation that Central Banks Have Rehypothecated, Leased or Outright Sold the Gold They Claim to Have Is Gaining Momentum

We noted in 2012 that there are serious questions as to whether the Fed and other central banks really have the gold holdings which they claim.

This story is starting to go mainstream.

The Financial Times writes today (h/t Zero Hedge):

A year ago the Bundesbank announced that it intended to repatriate 700 tons of Germany’s gold from Paris and New York. Although a couple of jumbo jets could have managed the transatlantic removal, it made security sense to ship the load in smaller consignments. Just how small, and over how long, has only just become apparent.

Last month Jens Weidmann, Bundesbank president, admitted that just 37 tons had arrived in Frankfurt. The original timescale, to complete the transfer by 2020, was leisurely enough, but at this rate it would take 20 years for a simple operation. Well, perhaps not so simple. While he awaits delivery, Herr Weidmann is welcome to come and look through the bars in the Federal Reserve’s vaults, but the question is: whose bars are they?

In the “armchair farmer” fraud you are told: “Look, this is your pig, in the sty.” It works until everyone wants physical delivery of their pig, which is why Buba’s move last year caused such a stir. After all nobody knows whether there are really 260m ounces of gold in Fort Knox, because the US government won’t let auditors inside.

The delivery problem for the Fed is a different breed of pig. The gold market is far more than exchanging paper money for precious metal. Indeed the metal seems something of a sideshow. In June last year the average volume of gold cleared in London hit 29m ounces per day. The world’s mines are producing 90m ounces per year. The traded volume was many times the cleared volume.

The paper gold in the London Bullion Market takes the familiar forms that bankers have turned into profit machines: futures, options, leveraged trades, collateralised obligations, ETFs . . . a storm of exotic instruments, each of which is carefully logged, cross-checked and audited.

Or perhaps not. High-flying traders find such backroom work tedious, and prefer to let some drone do it, just as they did with those money-market instruments that fuelled the banking crisis. The drones will have full control of the paper trail, won’t they? There’s surely no chance that the Fed’s little delivery difficulty has anything to do with the cat’s-cradle of pledges based on the gold in its vaults?

John Hathaway suspects there is. He worries about all the paper (and pixels) linked to gold. He runs the Tocqueville gold fund (the clue is in the name) and doesn’t share the near-universal gloom of London’s gold analysts, who a year ago forecast an average $1700 for 2013. It is currently $1,260.

As has been remarked here before, forecasting the price is for mugs and bugs. But one day the ties that bind this pixelated gold may break, with potentially catastrophic results. So if you fancy gold at today’s depressed price, learn from Buba and demand delivery.

And last week, Glenn Beck – hate him or love him, he’s got the 594th most popular website in the world and many viewers on Dish network and various cable providers – did an entire 20-minute episode on the issue:

This story hasn’t yet made it to the New York Times, the Washington Post or network television … but it is gaining momentum.

Indian Temples Fight Back Against Government Gold Grabbing Plot | A Lightning War for Liberty

Indian Temples Fight Back Against Government Gold Grabbing Plot | A Lightning War for Liberty.

The following article from Reuters is a follow up to a topic I have explored on various occasions in the past. Namely, how an inept Indian government is attempting to use the age old tactic of scapegoating in order to deflect attention away from its widespread policy failures. In the case of India, the target is gold. It’s a logical target for any crony Indian bureaucrat or Central Banker to go after. Wealth confiscation is a tried and true method historically used by corrupt elites to stay in power, and there is plenty of gold floating around the subcontinent. Easy pickings…or so they thought.

It appears some of the temples are now drawing a line in the sand, and are in fact refusing to provide details about their holdings. Other temples are a bit more compliant. From Reuters:

The central bank, which has already taken steps that have slowed to a trickle the incoming supplies that have exacerbated India’s current account deficit, has sent letters to some of the country’s richest temples asking for details of their gold…

 

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