By Stewart Dougherty
According
to the mainstream financial media (MFM), the biggest financial frauds
in history are the Bernie Madoff Ponzi scheme, with roughly $20 billion
in net investor losses, and the Bank State rigging of LIBOR, which
resulted in 16 guilty banks paying $35 billion in fines, which
supposedly equated to their theft.
The
MFM have conveniently ignored a far larger financial crime that has
been perpetrated for 37 years and counting, and that has netted its
orchestrators more than $1,000,000,000,000.00 ($1 trillion) in stolen
profits. This crime is so powerful that it can produce fraudulent
proceeds of $1+ billion on demand and in minutes, making it unique in
the annals of theft. It is a crime that has been committed literally
thousands of times since 1980, and that is now being committed in the
most blatant and brazen manner ever. This crime is already 285 times
bigger than the LIBOR scandal, and 500 times bigger than Madoff’s
swindle. It is, in fact, the largest, most destructive financial crime
in history.
The
crime is the Deep State’s manipulation of the gold and silver markets.
It has been and continues to be the perfect crime, because given the
Deep State’s capture and control of regulators, prosecutors and
legislators, it is never investigated or prosecuted and its plunder
therefore comes risk free.
It
is impossible that the corrupt, complicit, Deep State-owned and
-operated MFM do not know these facts. The reality is that they
deliberately fail to break the story, in order to cover up the crime
being perpetrated by their masters, the Deep State looters.
As
this immensely profitable fraud has been perpetrated, the MFM have
bombarded the populace with a propaganda campaign that smears and
mischaracterizes gold. Rising precious metals prices are always
presented as being ominous, negative and inimical to the people, while
declining prices are consistently placed in a favorable light. This
propaganda has been carefully crafted and timed so that when massive,
coordinated price attacks occur, market observers actually view them as
positive market developments and move on, in the belief that all is well
and there is nothing to see.
Whenever
true prices start to exert themselves, the MFM go into overdrive to
demonize and discredit gold. Truly disgracing themselves, which is
increasingly difficult for them to do given the depths to which their
fake financial journalism has plunged, they have actually published
articles calling gold a “Pet Rock,” and in another instance, a “Ponzi
scheme.” By the latter’s idiotic logic, all natural elements and
tangible goods are Ponzi schemes, too. If you listen to them, milk and
eggs are criminal conspiracies. They know it’s absurd, but they throw
the spaghetti against the wall anyhow, to flog the agenda and please
their Deep State owners.
Last
week, Bloomberg Magazine ran a cover story about a two-bit nobody
smuggling meaningless quantities of gold as if this were the gravest
threat to humanity in the 21st Century. It was yet another
effort to make the gold market look seedy, shady and dirty. The lengths
to which they go in order to slam precious metals prove that this is a
very important Deep State agenda. And it is, because its purpose is to
deflect attention away from the Deep State’s unprecedented financial
criminality.
In
the late 1970s, oil barons Bunker and Lamar Hunt became interested in
the favorable fundamentals of silver. They steadily bought the metal,
ramping up its price. The Bank State went short against the Hunts, in
size. But buying demand persisted, and by January, 1980, silver had
reached a record $49.45 per ounce ($147.68 in today’s dollars) and the
Bank State was choking on massive paper losses.
The
Bank State did what it always does when the chips are down: it lied,
cheated and stole. First, it ordered the MFM to character assassinate
the Hunts by labeling them greedy profiteers who were attempting to
corner the silver market at what would be an exorbitant cost to society.
Which was a deliberate lie. Later evidence proved that the Hunts bought
silver based upon extensive quantitative analysis that showed it to be
significantly undervalued, just as others throughout history have been
attracted to undervalued assets. There was no evidence at all that the
Hunts were trying to corner the silver market. But the media onslaught
overwhelmed the truth, and set the stage for Act 2.
In
Act 2, the Bank State ordered its’ captured, bribed CFTC regulators to
change silver futures rules so as to force the Hunts to liquidate their
positions. Predictably, silver’s price plunged from $49.45 to $10.80
between January and March, 1980, as a result of the out-of-the-blue,
“liquidation only” CFTC mandate. This wiped out the Hunts and bailed out
the Bank State of its massive losses, which, of course, was the corrupt
point of the exercise.
In
the process, the Bank State saw first-hand the enormous profit
potential inherent in precious metals price manipulation. And it raced
to invent a new form of alchemy that would enable it to make those
potential profits go exponential: the transmutation of printed paper and
costless, ethereal computer digits into what they would say were the
equivalent of physical gold and silver. Honest precious metals price
discovery died when the Hunts were cheated and fake gold and silver were
invented. The precious metals futures market has been an organized
crime scene ever since.
Prior
to the Deep State’s successful overthrow and corruption of the metals
market, gold and silver reached 1980 highs of $850 and $49.45,
respectively. We regard those as legitimate prices that actually would
have been exceeded if the free market had prevailed. Fundamental forces
were enormously bullish for metals at that time, and have been so ever
since.
Using
the U.S. government’s inflation statistics, which are deliberately
understated and therefore conservative, today’s prices would be
$2,510.55 for gold and $147.68 for silver. Therefore, current fake gold
and silver prices are roughly $1,300.00 and $130.00 per troy ounce
beneath their 1980 inflation adjusted highs, respectively. This is
extraordinary given the radical deterioration of monetary, financial,
fiscal, economic and geopolitical conditions since 1980. Prices should
now be far above the 1980 inflation-adjusted highs, not far below them.
With
5.8 billion ounces of owned physical gold in the world, the $1,300 per
ounce price oppression results in an aggregate gold market
undervaluation of $7.54 trillion. And with 20.5 billion ounces of owned
physical silver in the forms of jewelry, silverware, coins, bars and
rounds, the $130 per ounce price oppression amounts to an additional
market undervaluation of $2.67 trillion. Combined, this totals $10.21
trillion that has been stolen from the owners of gold and silver
worldwide as a result of the Deep State’s price manipulation fraud. This
$10.21 trillion amount is an absolute minimum, because for dozens of
objective, quantifiable reasons, gold and silver prices should exceed
their 1980 inflation adjusted highs by at least two and up to four
times. Therefore, the true cost to the global owners of gold and silver
is actually in the range of $20 to $40 trillion. The people have paid a
staggering price for the Deep State’s precious metals crime spree, as
there is no fraud in history whose financial impact even comes close to
this. Yet the corrupt MFM doesn’t say a word.
From
2009 through 2013, former Goldman Sachs partner Gary Gensler, protégé
of (among others) Robert Rubin (former U.S. Treasury Secretary and now
Chairman of the Council on Foreign Relations, the embodiment and epitome
of the Deep State) and Larry Summers (also a former U.S. Treasury
Secretary (put there by his mentor, Robert Rubin), Group of 30 member
and a leading Deep State cash elimination mouthpiece), was the Chairman
of the Commodities Futures Trading Commission (CFTC). During virtually
his entire tenure, the CFTC conducted a so-called investigation into
silver market price manipulation. In 2013, the CFTC closed the
investigation, saying it had not found any improprieties whatsoever, not
even one. According to them, the silver market was squeaky clean.
In
2016, completely without any CFTC involvement, Deutsche Bank admitted
that it and numerous other major, international, SIFI (Significantly
Important Financial Institution, aka, Too Big to Fail) banks had
massively manipulated the silver market for years, including during the
entire duration of the CFTC’s fake investigation. A few days later,
Deutsche Bank admitted that it and numerous other SIFI banks had also
rigged the gold market.
Gensler
left the CFTC in early 2014, and went to work for Hillary Clinton’s
presidential campaign. In 2015, he was named Chief Financial Officer of
her campaign. A Clinton victory was fully expected, and it was
understood that Clinton would name Gensler Secretary of the Treasury.
(Now do you see how this works?) In that role, he would have been far
more helpful to the Deep State than he was in his CFTC role of
protecting their $1 trillion precious metals fraud from being exposed or
interfered with. In the Treasury Secretary position, the top marching
order from his Deep State masters would have been simple and clear: get
cash eliminated once and for all, and we will make you richer than you
can ever imagine. He would have been all over it.
Cash
elimination is the Deep State’s upcoming, Main Event. They will steal
far more by eliminating cash than they have stolen to date by all their
other frauds, combined. While
the rigging of the precious metals markets is currently the largest
financial crime in history, it will be left in the dust when they come
to steal the dollars, Euros and other fiat currencies that they are
working to corral in their monetary prisons. They lurch from one record
to another, on the bent and hurting backs of the people.
Trump’s
victory threatens to slow down the implementation of their cash
elimination agenda, and this is why they are incensed, and will do
literally anything to get rid of him. Trump is brave, and in extreme
danger the 86,400 seconds of every day. There have never in history been
richer, greedier, or more power-hungry character assassins than the
Deep State elite. The silver lining is that their evil is now so
cancerous and metastasized that it has driven them completely insane,
and the insane have a way of destroying themselves before they can
destroy the rest of us.
Implications:
We know for an absolute fact that precious metals prices are
manipulated. (The evidence is absolutely overwhelming, and we would like
to offer special thanks to GATA (and now Deutsche Bank) for proving it
without a shadow of doubt over many years’ worth of tireless work.)
Current prices of gold and silver are therefore fake, and in our view,
far below what they would be in an honest market. When the Deep State
Crime Syndicate loses control over prices, which could result from any
one of a large number of likely developments, true prices will be
re-established, a process that was occurring in 1980 and again in 2011
before being sabotaged both times. As fake prices are crushed and honest
ones return, a global “herd” buying phenomenon could develop, as has
happened in the past. This would lead to significant shortages of
available physical metals and a meaningful increase in premiums. History
has been clear that when it comes to precious metals, it is always best
to buy in halcyon times, particularly if one can do so at a good price. We
are not registered investment advisors, and are not providing financial
advice. We are simply sharing with you our thoughts, which are born of
extensive, independent research. Thank you for taking the time to read
this article, good luck and all the best to you.
Stewart Dougherty
March 14, 2017
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