Jan 29 2007
Gold Prices and Manipluation
Give me control of a nation’s money and I care not who makes her laws.
Mayer Amschel Rothschild
Gold has been the timeless currency that always outlasts every nation’s ill conceived experiments with fiat and paper currency. As FDR (Franklin Delano Roosevelt) clarified when he made illegal the private ownership of gold, the barbarous relic is a threat to paper currencies that can be minted out of thin air at the whim of fiat collusion by government and central banks. Gold, as an alternative store of wealth,threatens that power to inflate precisely because it cannot be minted out of thin air and has been valued since time immortal.
Since the Fed was gifted the new power to legally print money out of nothing, and to do so by lending it into circulation with citizens on the hook, the dollar has lost 98% of its purchasing power. During the prior 125 years, when gold restrained those who would wantonly print dollars from nothing, $100 retained or gained purchasing power with the exception of wartime and during several banking fiascoes related to failed attempts to institute formal government central banks. Of course, the definition of a dollar was that they were redeemable, $20 to an ounce of gold. Runs on private banks dollars then the only option — were confined to the offending institutions that fraudulently issued dollar notes in excess of the gold they had in their vaults to back them. Runs on the bank forced honest banking, while placing the burden of prudent diligence on their clients. Bank collapses were far and few between, but when the occurred,the pain was confined to those involved, sparing the greater economy
But the allure of central banking is an aphrodisiac to those who would enjoy the benefits of having a banking monopoly. It is quite a privilege to be granted by the state the legal right to earn wealth without sacrifice or savings. Rather, it is earned by printing dollars — claims to wealth — out of thin air, and then lending it at interest to others, this is the nature of banking at all levels. Wealth these new dollars claim comes at the expense of those storing wealth in prior dollars.
Governments and politicians have always been quick to enfranchise such alchemy. After all, spending wealth confiscated through inflation is dramatically easier than arguing for higher taxation and the associated citizen sacrifice. That’s the dirty secret of inflation: it surreptitiously removes the purchasing power from all currency holders and immediately transfers that wealth to whomever the policy elite deem worthy. How the masses came to be convinced that inflation is a natural economic phenomenon — or in the case of mainstream economists, a necessary one… — we’ll never know.
All that background aside, we look at gold and how it presents a threat to the money empowered shuffling class and to politicians. Should gold provide a safe harbor for an inflation rate that, even at the far understated “official CP”I rate has confiscated well over 17% of your purchasing power since the end of 1999, the illusion of the dollar might be shattered. The reality that it is backed by nothing other than the overtaxed and overly indebted taxpayer and U.S. government might become all too clear. Hence, while it may seem at first blush to be a reach towards conspiracy theory, the impetus for maligning gold is plain for to see for all those who bother to look.
With that in mind, we’ve come across two pieces that we thought our readers would find interesting regarding the manipulation of gold prices by central banks and the major private-banking-cartel elite that largely feed at the Central Bank trough. The first piece gives a bit of a background for everyone, from the gold market novice to the knee-jerk conspiracy denier. The second notes a rumbling about changes that could be made related to such manipulation.
While there is evidence, nobody can say for sure; but you can’t connect the dots if you don’t have the necessary bits of information. So give both a read and use your head to understand for yourself!
