I am very disappointed by, but not surprised at, the latest transfer of wealth to the bankers from everyone else. The most recent gold bear raid has vastly enriched the bullion bankers, once again, at the expense of everyone trying to protect their wealth from global central bank money printing.
The central plank of Bernanke‘s magic recovery plan has been to get everybody back borrowing, spending, and “investing” in stocks, bonds, and other financial assets. But not equally so, as he has been instrumental in distorting the landscape towards risk assets and away from safe harbors.
That’s why a 2-year loan to the U.S. government will only net you 0.22%, a rate that is far below even the official rate of inflation. In other words, loan the U.S. government $10,000,000 and you will receive just $22,000 per year for your efforts and lose wealth in the process because inflation reduced the value of your $10,000,000 by $130,000 per year. After the two years is up, you are up $44,000 but out $260,000, for net loss of $216,000.
That wealth, or purchasing power, did not just vanish: It was taken by the process of inflation and transferred to someone else. But to whom did it go? There’s no easy answer for that, but the basic answer is that it went to those closest to the printing press. It went to the government itself, which spent your $10,000,000 loan the instant you made it, and it went to the financiers who play the leveraged game of money who happen to be closest to the Fed’s printing press.
This almost completely explains why the gap between the rich and everyone else is widening so rapidly, and why financiers now populate the top of every Forbes 400 list. There is no mystery, just a process of wealth transfer of magnificent and historic proportions; one that has been repeated dozens of times throughout history.
This Gold Slam Was By and For the Bullion Banks
A while back, I noted to Adam that the gold slams that were first detected back in January were among the weakest I’d ever seen. Back then I was seeing the usual pattern of late-night, thin-market futures dumping, which I had seen before in 2008 and 2011, two other periods when precious metals were slammed hard………………………
full article at source: http://www.marketoracle.co.uk/Article39982.html
By Thomas Clarke
Your article on the manipulation of gold is excellent and is of course spot on as I am totally convinced that the markets are been manipulated by the large finance houses with their massive pre market and after hours trades conducted by the super computers that can trade in millionths of a second.
To combat this I have been trading just one stock and I am always hedged. I would not be in the markets without this hedging tool and to-day was an excellent example of how this particular stock was battered down, no doubt by the very moneymen who own this company in the first place. It is a case of shake the tree and see what apples fall off before picking off the low lying fruit on the cheap !I am always surprised by the constant flow of stupid money, new money coming in to this same trap! Today if you are looking for guidance in earnings you will be disappointed as there is no truth to be found on any Bank balance sheet, you should try reading something from Hans Christian Andersen or the story of the wizard of OZ at least it’s more entertaining.
Don’t thrust anything the main media tells you in fact I have been doing quite well doing the exact opposite but as I cannot time the market I give myself enough time to become right and of course I’m always hedged so all I really need then is to have enough time and If I run out of time ? why I just roll the position with the profit I make on the winning side so some time in the future the position goes into reverse and I collect on the other side!