Friday, March 27, 2015

Dead Horse Bounce

As Another and FOA had occasionally remarked (as far back as the late 90's), the efforts of Chris Powell and GATA in "proving" that "the price of gold is manipulated" were already quite relentless to the extreme. I myself am often amazed at their dogged perseverance to this day.

If anyone in their right mind actually believes that the price of gold in this millennium was ever characterized by a "free market", or that gold price manipulation was a "baseless conspiracy theory", we would have to conclude that their interpretation of reality was so egregiously misinformed as to prevent ANY type of logical discussion on the matter. In essence, their stubbornness in that direction would clearly match GATA's in the opposite.

And if repetition truly is the key to understanding, GATA has made great strides in the direction of hammering this idea that gold price suppression is indeed a fact - though they may fall short of explaining in depth just how that process is managed.

More importantly, in their tireless efforts to kick this dead horse and continually overstate the obvious, they do dig up a factoid or two that prefaces a central thesis of these annals. Namely that, by the same process, the price of ALL THINGS is manipulated, as revealed by A and FOA contemporary William White, former head of the BIS monetary and economic department, in excerpts from his speech below:
The intermediate objectives of central bank cooperation ... [include] ...
First, better joint decisions, in the relatively rare circumstances where such coordinated action is called for. Second, a clear understanding of the policy issues as they affect central banks ... Third, the development of robust and effective networks of contacts. Fourth, the efficient international dissemination of both ideas and information that can improve national policy making.
And last, the provision of international credits and joint efforts to influence ASSET PRICES in circumstances where this might be thought useful.
As is to be expected, GATA injected the parenthetical "especially gold and foreign exchange" into the final sentence, and that is appropriate considering that gold and fiat currencies are the linchpins to broad asset price manipulation.

But is is only in the deeper exploration of how CB's collude (or is it "cooperate"?) to manage equity valuations, treasury and bond valuations and yield curves, other commodity values and interest rates, (in addition to gold and fiat currencies) that we are able to understand the wider implications of that manipulation upon the global economy, in terms of systemic wealth redistribution by socio-economic class.

This is the real "conspiracy" if you will, such that the few who understand this system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class ... but those who neither profit nor receive favor - should they be awakened to the predatory nature of their own insurmountable disadvantages - would rise up as an uncontrollable, unmanageable mob.

You see, "the haves" will always have, and the "have nots" will always have not. And what they will have not is the opportunity to achieve wealth and power so effortlessly as do the haves - and this is by design - despite all the Face Book aspirations and dreams and happy unicorns of liberty and freedom we feed them through debt. It is all a lie, an illusion conjured up to sedate the herd.

And governments, who partner in this system of corporatism, fear any awakening to this reality - for it is their responsibility, being both interested in said profits and dependent on said favors, to quell any such uprising - with propaganda, diversion and pacification - in collusion with corporate interests, and their control of mainstream global media. And if that is not enough, measures are taken to implement mass surveillance, and police states with armed militias are formed to control the mobs.

The rich do get richer, and the poor do get poorer, and GATA never seems to stop and wonder why, or if they do, they never quite seem to articulate how. Perhaps they kick this dead horse because they understand the above, and hope that the means (awareness) justifies the end (fairness). And in a way they are correct.

For indeed a free market in gold, if it ever can be had (like the Republic we once had, but could never keep) would set the working classes free to walk in the footsteps of Giants, with their cheaply bought gold - 3rd world nobodies with new found wealth. And the Giants themselves would have such a tremendous pay-day from the revaluation of their own massive gold reserves, that they welcome this with open arms.

They simply wait for the inevitable, for history to rhyme - according to their own design.

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