The Comming Collapse - Part 1

This may get a little long, but I have a lot of information to go through as I take you my trip into why we are most likely on the verge of a complete financial collapse. And this has nothing to do with politics, as this has been in the making for a very long time. Our first stop will be a quick look at the oddities in the world Gold market.

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold.....The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
Alan Greenspan, "Gold and Economic Freedom" (1966).

There have long been rumors of the gold markets being manipulated. Even our own supply is in question, as the Fort Knox gold reserves have not been audited since the 1950's. Another issue is that government actively deflate the price of gold for their own purposes. Here is an excellent article about the shenanigans governments and central banks do with gold to keep their currencies afloat.

Here is another snippet from the article:

In late March, 2009, the gold price had been steadily rising. A number of big gold dealers on the COMEX had large short positions. To make matters worse, during the past few months, more and more people had  actually been taking delivery of gold contracts purchased through the COMEX. When a buyer takes delivery, the  seller must deliver. If the gold price has risen since the seller went short, then the short seller will suffer a loss. At the end of March, it appears that Deutsche Bank was short a significant quantity of gold which had to be delivered by March 31.
Interestingly, on March 31, the European Central Bank (ECB) announced that it had sold 35.5 tonnes, or about 1,141,351 ounces of gold. On that same day, the Deutsche Bank miraculously delivered a total of 850,000 ounces of gold to COMEX gold buyers. This amounted to 8,500 contracts' worth of gold. The ECB did not reveal the buyer of its gold, nor did the Deutsche Bank reveal where it had gotten enough gold to make its  gold delivery.  However, it is certainly an interesting "coincidence" that the Deutsche Bank was able to find a way to deliver about 26 tonnes of gold on the same day that the ECB announced that it had sold a huge amount of gold. It is also interesting that the gold price has dropped since the ECB sale.
http://richterreport.com/content.php?id=238&menu_id=15

There is also a motive for gold price suppression from the world's so-called "bullion banks", being large global investment banks carrying a surplus of bullion (Goldman Sachs, JP Morgan, Morgan Stanley, Deutsche Bank for example). By using gold they can access a huge source of capital for spectacular gain, provided the gold price does not rise.

Gold swaps is something I think that needs closer inspection, but right now lets look at this;

Gold derivatives include various complex instruments, but the simplest derivative is the gold futures contract. The turnover of gold futures each day equates to several multiples of the amount of traded gold. Gold futures can be cash settled, so while massive futures selling may imply the sale of a large amount of gold, expired contracts need not require delivery of actual gold.
I think the important thing here is this: expired contracts need not require delivery of actual gold.

The theory goes that the world's bullion banks are "in" on gold price manipulation schemes. JP Morgan is banker to the ESF. Bullion banks were on the wrong side of LTCM's short position default in 1998. If bullion banks "sell" gold via futures contracts, thus suppressing the price, any losses incurred at expiry through a gold price rise can be offset by freshly printed dollars provided by the banks' ultimate guarantor - the Fed.

For more of this excellent article please go here:

http://www.taxfreegold.co.uk/goldpricemanipulationnews.html

The point I am trying to make here is that the gold markets are being manipulated. And the same ounce of gold is being sold over and over again to unlimited numbers of people and governments. Now hoe could this happen you might ask me? Easy, gold certificates.

When you buy gold, usually you don't actually receive the gold to hold in your hand and watch it sparkle with awe. You receive a gold certificate that says you own some gold in a vault somewhere. Surprisingly, very few people actually take delivery on their purchase. In a perfect world this would not be a big deal.

But in a perfect world, the main players is n this scam would not be Goldman Sach's, and JP Morgon either. Two of the dirtiest hands in last years financial meltdown, of which they both surprising not only survived, but profited greatly at the demise of the country.

Now what happened when suddenly everyone that bought that ounce of gold actually wants it to put in their hand? A major problem for these banks. If you read the first article, they sold gold they didn't have, and had to cut some deals to come up with it.

They had the same problem at the London Comex this year, when the greedy little people wanted to actually take delivery of the gold they had purchased.


On Tuesday morning, gold derivatives dealers, who had sold short in the face of a fast rising gold price, faced a serious predicament. Some 27,000 + contracts, representing about 15% of the April COMEX gold futures contracts remained open. Technically, short sellers are required to give “notice” of delivery to long buyers. However, in reality, buyers are the ones who control the amount of gold to be delivered. They “demand” delivery of physical gold by holding futures contracts past the expiration date. This time, long buyers were demanding in droves.

http://www.marketskeptics.com/2009/04/did-ecb-save-comex-from-gold-default.html

You would think this was illegal, and it is. But they seem to own the overseers.

This is a fun read, and I get the impression they don't like good old JP.

http://www.marketoracle.co.uk/Article6826.html

So what does all this mean? Well, what would happen if everyone who thought they owed gold suddenly discovered that all they own is a worthless piece of fancy looking paper? 500 folks they never heard of own the same chunk of gold as they do. What would that do to what is left of personal wealth? How many banks would go down the drain in a mess like that? How many governments would discover they don't have the gold reserves they thought they had.

What would happen to the global economy? Complete and total disaster. If this was the only thing going on it would be horrible enough on it's own.
Wall Street would collapse again, that is for sure. So would all the non central banks. Lucky for us that JP and Goldman have worked their way into the government and the Federal Reserve, so they will survive. Well, probably not only survive, but once again profit at the expense of everyone else.

As gold goes up, the dollar goes down. And against all logic, gold has been holding around the $100 mark. It really should be around the $2,000 mark right now. But it isn't. Because it's being kept down artificially to keep everyone's currencies on life support.

I believe there is ample evidence that the gold market is shaky at best right now. Soon the dirty little secret will come out from the dark. That out of all the gold certificates and derivatives people around the world own, that is all they own, and the banks have been selling worthless paper over and over again, without the gold reserves to back it.