CONCEPTUAL ORDNANCE AND SYMBOLIC MUNITIONS FOR THE PARADIGM WARRIOR.

Goldscam

Here’s an amazing post found at Market Skeptics that pulls together a lot of information about the ‘goldscam’ and suggests what the implications of this might be:

Gold prices soar after CFTC Hearings confirm manipulation

Gold manipulation was been officially confirmed at the CFTC hearings held on March 25. Since then, gold prices have skyrocketed.

If you haven’t read my entry, *******Gold Manipulation OFFICIALLY CONFIRMED*******, please do so. Basically, the lack of physical holdings by all who claim to have gold in storage is pervasive throughout the gold world.

Amazing set of revelations

1) For the first time ever, a whistleblower, Andrew Maguire, has stepped forward citing specifics of a gold market rigging as it was occurring in real time.

2) There is no gold corresponding to the vast “gold deposits” at the major LBMA banks. During the CFTC hearings, Jeffrey Christian of CPM Group (one of the most respected precious metals consultancies) stated that “precious metals…trade in the multiples of a hundred times the underlying physical…”

3) Almost all of the trading activities on the London exchange were merely settled by paper for paper, not for physical metals as the exchange supposedly requires.

4) There are thousands of clients (Asian and Middle Eastern governments, sovereign wealth funds, GLD, etc) who think they own hundreds of billions and perhaps trillions of dollars of gold bullion, and are being charged storage fees on that fantasy bullion, but what they really own unsecured gold loans to the banks at a negative interest rate.

5) It is impossible for the London exchange to ever deliver all the gold and silver owed to the owners of contracts.


Unbelievable “coincidences” surrounding CFTC hearings

1) The live television broadcast of the CFTC hearing suffered a technical failure right as Murphy was set to begin his testimony. This was corrected right after Murphy was finished.

2) At least one live voice broadcast (radio) failed during Murphy’s presentation.

3) After the hearing, Murphy was contacted by several major media outlets for more interviews. Within 24 hours, all the interviews were canceled. All of them.

4) The day after Maguire gave his radio interview, he was the victim of a hit and runcollision. Somebody sped out of a side alley at top speed, smashed into Maguire’s car, and then tried to escape. A high-speed chase ensued, and the perpetrator was caught by police. Although the British press has reported that this might have been an assassination attempt or a threat, there has been no word from the police.

5) Shortly before somebody crashed into Maguire’s car, the CFTC caught on fire. This fire happened to be located in the one small basement room where gold and silver trading data and other pertinent documents were kept.

6) A few days after the CFTC caught on fire, there was an DOS (denial of service) attack on the King World website which contains the radio interview of Maguire and his emails to the CFTC.

Virtual blackout by the mainstream news media

1) Only the blogs, and almost no one in the mainstream media, are covering the relevations of the CFTC hearings.

2) At the Wall Street Journal, a search on “Gensler” (CFTC Chairman Gary Gensler would surely be included in any report) produces only one item from before the hearing. Readers of the Wall Street Journal will never hear what happened at the hearing and whether the CFTC paid any attention to them.

3) The few mainstream stories that do cover the CFTC hearings are unnaturally one sided, failing to mention anything other than opposition to any idea of position limits in metal markets

4) A Google News search on “Gensler” confirms the virtual blackout by the mainstream news media.

5) The media’s strategy seems to be to stonewall and hope scandal goes away.

Implications

1) This is a scandal of monumentous proportions. As the articles above put it:

“Sub-prime crisis was peanuts before this scam.”

“This is a potential multi-trillion dollar fraud that could bring down the world’s financial system.”

‘FRAUD’, that is the one word which comes to any investor’s mind when s/he reads about the Commodity Futures Trading Commission (CFTC) hearing on manipulations in bullion market by gold cartels

“It is a bombshell. This has to be dealt with, one way or the other. Bring it out into the light of day, and let the facts be known. This is either the equivalent of the fictionalized testimony on the order of the Salem Witch trials, or one of the most damning accusations of malfeasance in office against quasi-governmental agencies, and probably US officials, since Teapot Dome. ”

2) As the significance of the CFTC hearings’ revelations sink in, it will create a gold rush and dollar panic, resulting in the biggest short squeeze in the history of all commodities. (See *****Preview of 2010’s Gold Rush And Dollar Panic*****)

3) The upward explosion in gold prices, it will result in a complete loss of confidence in the U.S. dollar.

Conclusion: Last October, I wrote about the Gold Market Reaching The Breaking Point. Well now we are there.

The scandal in the gold market continues to grow.

Canada’s Only Bullion Bank Gold Vault Nearly Empty

Zerohedge reports about The Latest Gold Fraud Bombshell.

The Latest Gold Fraud Bombshell: Canada’s Only Bullion Bank Gold Vault Is Practically Empty
Submitted by Tyler Durden on 04/07/2010 10:30 -0500

Continuing on the trail of exposing what is rapidly becoming one of the largest frauds in commodity markets history is the most recent interview by Eric King with GATA’s Adrian Douglas, Harvey Orgen (who recently testified before the CFTC hearing) and his son, Lenny, in which the two discuss their visit to the only bullion bank vault in Canada, that ofScotiaMocatta, located at 40 King Street West in Toronto, and find the vault is practically empty. This is a relevant segue to a class action lawsuit filed against Morgan Stanley, which was settled out of court, in which it was alleged that Morgan Stanley told clients it was selling them precious metals that they would own in full and that the company would store, yet even despite charging storage fees was not in actual possession of the bullion. It appears that this kind of lack of physical holdings by all who claim to have gold in storage, is pervasive as the actual gold globally is held primarily in paper or electronic form. Lenny Organ who was the person to enter the vault of ScotiaMocatta, says“What shocked me was how little gold and silver they actually had.”Lenny describes exactly how much (or little as the case may be) silver was available – roughly 60,000 ounces. As for gold – 210 400 oz bars, 4,000 maples, 500 eagles, 10 kilo bars, 10 one kilogram pieces of gold nugget form, which Adrian Douglas calculates as being $100 million worth, which is just one tenth of what the Royal Mint of Canada sold in 2008, or over $1 billion worth of gold. As Orgen concludes: “The game ends when the people who own all these paper obligations say enough and take physical delivery, and that’s when the mess will occur.”

Also note the interesting detour into what Stephan Spicer of the Central Fund Of Canada, said regarding his friend at a major bank, who wanted access to his 15,000 oz of silver, and had to wait 6-8 weeks for its to be flown in from Hong Kong.

It is funny that central bankers thought they could take the ponzi mentality of infinite dilution of all assets coupled with infinite debt issuance, as they have done to fiat money, and apply it to gold, in essence piling leverage upon leverage. They underestimated gold holders’ willingness to be diluted into perpetuity – when the realization that gold owned is just 1% of what is physically deliverable, you will see the biggest bank run in history.

According to Lenny Organ, ScotiaMocatta (Canada’s only bullion bank vault) only has 89,000 ounces of physical gold (worth about $100,000,000).

ScotiaMocatta gold holdings ounces
210 400 oz bars 84,000
4,000 maples 4,000
500 eagles 500
10 kilo bars 353
10 one kilogram pieces of gold nugget 353
Total 89,206

For comparison, go to NYMEX Daily Reports and download Gold Stocks data. There you will find information about iShares COMEX Gold Trust’s “physical” gold holding:

iShares COMEX Gold Trust
Gold Gross Troy
Sub Custodians Deposited Ounces
Brink’s, Inc. 100 oz. 0.000
Kilo 0.000
Total* 0.000
Scotia Mocatta 100 oz. 457,172.596
Kilo 0.000
Total* 457,172.596
London 400 oz. 485,088.675
New York 400 oz. 125,847.919
Toronto 400 oz. 1,408,112.833
Grand Totals 2,476,222.023

iShares COMEX Gold Trust claims to have 1,408,112 ounces of gold stored in Toronto, yet ScotiaMocatta (Canada’s only bullion bank vault, located in Toronto) reportedly only has 89,000 ounces of gold. Needless to say, iShares COMEX Gold Trust is NOT a safe way to own gold.

——————————–

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s