All posts by Cleared eyed

BoE vaults were used to smash the gold price

Speaking on the Keiser Report gold analyst Alasdair Macleod has dropped a bombshell — between Feb 28 and June the Bank of England’s gold vault was emptied of a massive 1300 tonnes of gold — enough to explain why the gold price fell so dramatically over that timeframe. Jump forward to 12 min 58 sec:

The gold does not necessarily belong to the UK (which only owns 310 tonnes) — it is the sovereign gold of many nations who must have agreed on a coordinated plan to lease it out — or sell it. Those countries aren’t necessarily going to get the gold back now that demand is surging. It was a massive gamble, and it looks to have backfired in a stupendous way. China and India have ramped up their gold purchases to unprecedented levels. The gold has gone East and will not come back for many decades or even centuries.

The implication is that the intervention was a one-off and cannot be repeated. The gold price will recover and then some. Ben Bernanke said he didn’t pretend to understand the gold market, well now he and his dog shouldn’t pretend to NOT understand the gold market — the price is manipulated like no other and for very important reasons. But that manipulation cannot last and the price action to come as a result will be something to behold.

Australia paying for refugees from NATO’s dirty war

The Australian Government is boasting that it has now donated over A$100 million to help refugees from the war in Syria.

The Australian Government fears the refugee crisis in Syria will soon spill over into their region — tens of thousands of Syrians fleeing the violence could soon head to Australia.

As costly as the crisis is to them, they are unwilling to call out NATO and its Middle East partners for training and funding the Syrian rebels. It seems that as much as they fear the politically toxic refugee flows, NATO has their blessing in continuing its obscene sponsorship of the thugs, fruitloops and cannibals presently laying waste to Syria.

Reductio ad Krugman: Why you should support the #trilliondollarcoin

The proposed Trillion Dollar Coin, like any special-edition notionally-legal-tender coin, would have a face value in excess of its commodity value. It could be composed of, for argument’s sake, just one ounce of platinum. In theory the Treasury would deposit it at the Fed, which would then credit the Treasury’s account with $1 trillion and “solve” the debt ceiling crisis.

The Fed would as a consequence have negative equity as its liabilities would exceed the market value of its assets — if the Fed tried to sell the coin no-one is actually going to give them $1 trillion for it.

There is a precedent for the Fed buying assets at a par value vastly in excess of market value. Toxic Mortgage-Backed Securities purchased from QE1 onward are probably worth cents in the dollar.

But let us take this Trillion Dollar Coin to its logical conclusion — “Reductio ad Krugman”. What if the Treasury simply fabricated ten million $100,000 platinum coins instead – do you think the Fed would be able to offload those for $1 trillion in cash?

At some point, maybe overnight, ordinary people would realize how absurd it is that a coin can be ascribed so much value by fiat. They will intuit that the US dollar is a scam. US dollar bills are worth literally nothing. At least you can say that a coin, 1 ounce of platinum, actually has melt value. Only $1600 worth, but better than nothing.

But, and this is quite ironic, the Treasury could unintentionally fulfil its promise that, yes, a one ounce platinum coin could actually become accepted legal tender at its face value of $100,000! How? Well the US dollar would have devalued so much that platinum really would be priced at $100,000 per ounce… and gold at $100,000 per ounce, and silver… let’s just pick a number.

The Trillion Dollar Coin is a terrific idea. You can add your name to the petition here.

Australian media pull TrapWire story, republished here in full

Fairfax media sites have pulled a story on the possible use of TrapWire surveillance technology in Australia. The story arose from the Stratfor emails released by Wikileaks.

TrapWire is a facial recognition technology integrated into Closed Circuit TV surveillance of public places. It turns out that Cubic, a company associated with TrapWire, has won contracts to manage public transport ticketing in Australia. Access to ticketing information is an obvious way to augment such a surveillance system.

Blogger Barret Brown has identified a number of URLs for pages that no longer exist on various Fairfax media sites, including the Sydney Morning Herald and the Canberra Times.

A Google search for the Canberra Times story just now shows the URLs were previously valid.

Google search for Canberra Time article on TrapWire
But click on the link and you’ll find the page no longer exists.

Fortunately Fairfax media have failed to be entirely diligent in their self-censorship. Different versions of the story are available at a Sydney Morning Herald story archive, and at the Stock & Land, another Fairfax publication. An image of the story as it originally appeared at the SMH website has been cached here by a third party.

The Canberra Times story never made it into the print edition.

Author Asher Moses says the article was pulled because Abraxas had sold TrapWire prior to being bought by Cubic.

But a researcher has studied SEC documents and says Cubic is still associated with TrapWire.

There is an arrangement in Australia for the censoring of the press, generally known as “D-notices”. The Government simply demands censorship, and it happens. Compliance is supposedly voluntary.

Notably the Australian Government sought to revive the D-notice system in in late 2010, around the time of the US Wikileaks releases. Odds are Fairfax media has just been the subject of a D-notice.

The censored story may have been too close to the truth for the Government’s liking. How much of the ASIO budget has been paid to private companies to operate this surveillance system? What agencies, foreign and Australian, have access to this surveillance data?

Here are the stories in full:

Surveillance system linked to transport, defence contractor

Author: Dylan Welch and Asher Moses

Date: 14/08/2012

Words: 510

Source: SMH

Publication: Sydney Morning Herald

Section: News and Features

Page: 5

A CONTROVERSIAL surveillance system that synthesises high-tech security camera footage and online data to predict “suspicious activity” is owned by an international conglomerate awarded hundreds of millions of dollars in Australian government transport and defence contracts.

The TrapWire System, as the program is known, is owned by Cubic Corporation, which in 2010 signed a $370 million contract with the NSW government to provide Sydney’s public transport ticketing system, based on London’s Oyster card.

Cubic also runs a similar system in Brisbane and has a subsidiary of its defence business based in Queensland which has won about $32 million in contracts with the Australian Defence Force, mainly providing combat simulation and training systems.

But TrapWire has caused the company a storm of online criticism after its purported role was revealed last week.

And while there is no evidence to suggest it has yet been brought to Australia, the Australian Defence Department would issue only a cryptic statement on it yesterday.

“The Department of Defence is aware of the TrapWire System. However, it would be inappropriate to provide further comment on this system or its capabilities,” a Defence spokesman said, noting that defence does not comment on “intelligence or operational capabilities”.

TrapWire is given access to security camera networks and uses facial and body recognition combined with aggregated information provided by governments and social media to prevent terrorist attacks by recognising suspicious patterns of activity.

It forwards its reports to a wide array of US police departments, intelligence agencies and public departments. The detail about TrapWire was found in emails between executives at the private intelligence company Stratfor and released by WikiLeaks.

According to the emails, TrapWire is installed in some of the Western world’s most sensitive locations, including the White House, 10 Downing Street, New Scotland Yard and the London Stock Exchange, as well as 500 locations in the New York subway system.

It is also the brainchild of a group of American businessmen who spent decades working as intelligence officers in the Central Intelligence Agency. That detail on various company websites revealing their past was taken down recently.

In late 2010, Cubic purchased the company that created TrapWire, Abraxas, for $US124 million.

On its website, TrapWire said it was founded in 2004 to build and deploy counterterrorism technologies “in the wake of the September 11th terrorist attacks”. It seeks to prevent such attacks from occurring in the future and boasts on its website that its technology can “detect patterns of behaviour indicative of pre-operational planning”.

US authorities were criticised after the al-Qaeda attacks of 2001 for failings in information sharing, and part of TrapWire’s appeal appears to be that it is designed to make it easier to share information across a global surveillance network.

Despite the pervasiveness of its monitoring, it stated one of its advantages was that it does not share “sensitive or personally identifiable information”.

The internal TrapWire emails were obtained by hackers when they broke into Stratfor Global Intelligence, which had a partnership deal with TrapWire that meant Stratfor earned an 8 per cent finder’s fee for any clients that it referred to the Cubic company.

And the version from Stock & Land:

Revealed: TrapWire spy cams’ ticket to Australia

13 Aug, 2012 02:39 PM

A shadowy private security company with deep links to the CIA – and a parent company awarded hundreds of millions of dollars in Australian government transport contracts – is operating a pervasive global surveillance and facial recognition network on behalf of law enforcement.

Over the past few days the internet has been abuzz with revelations regarding TrapWire, an analytical system that integrates with surveillance cameras to capture photographs or video evidence of “suspicious activity”.

TrapWire is owned by the multinational conglomerate, Cubic Corporation, which in 2010 signed a $370 million contract with the NSW Government to provide Sydney’s electronic ticketing system for public transport, based on the London Oyster card system.

In April this year it was awarded a $65 million contract to provide services to CityRail and also runs the Brisbane “go card” system.

Fairfax is seeking comment from the government about whether there has been any consideration of bringing the TrapWire system here.

The TrapWire story began late last week, when emails from a private intelligence company, Stratfor – originally released as part of WikiLeaks’s Global Intelligence Files in February – appeared online.

The emails and other documentation revealed TrapWire is installed in some of the western world’s most sensitive locations – including the White House, 10 Downing Street, New Scotland Yard, the London Stock Exchange and five hundred locations in the New York subway system. Trapwire is also installed in many Las Vegas casinos.

An Australian single mother who online is an anti-surveillance state activist known as Asher Wolf is leading a campaign to expose the clandestine operation, which was created in the wake of the September 11 terrorist attacks and has been operating without public scrutiny for years.

Australia is leading the way in development of facial recognition technology and Australian government agencies have reacted enthusiastically to it.

The founder of TrapWire is 30-year Central Intelligence Agency veteran Richard Hollis Helms. Several of TrapWire’s top managers are also former CIA officers. It is part of security company Abraxas Corporation, which reportedly holds sensitive and lucrative contracts involving activities such as creating fake identities for CIA officers.

In December 2010 Cubic Corporation bought Abraxas for $US124 million.

The aim of TrapWire is to prevent terrorist attacks by recognising suspicious patterns in activity. It forwards its reports to police departments across the US and law enforcement organisations such as FBI and US Department of Homeland Security.

Helms said in a 2005 interview that TrapWire “can collect information about people and vehicles that is more accurate than facial recognition, draw patterns, and do threat assessments of areas that may be under observation from terrorists.”

In 2007 the company said that it analyses each aspect of a security incident and “compares it to all previously-collected reporting across the entire TrapWire network. Any patterns detected – links among individuals, vehicles, or activities – will be reported back to each affected facility.”

In addition to analysing surveillance footage TrapWire also operates “see something say something” citizen reporting campaigns in Las Vegas, New York, Washington DC and Los Angeles and all reports received are collated in the TrapWire database, analysed by the company and forwarded to law enforcement.

While it appears that TrapWire does not operate in Australia, its parent company Cubic holds several large Commonwealth, NSW and Queensland government contracts. It operates in Australia as Cubic Transportation with offices in Sydney, Brisbane and Perth. In 2008 it also opened a defence subsidiary based in Queensland, Cubic Defence Australia, run by Mark Horn.

Cubic Defence Australia has won about $32 million in contracts with the Australian defence force, mainly providing combat simulation and training systems.

Comment is being sought from Cubic about the links between their work in Australia and TrapWire.

Ms Wolf, 32, whose father survived a Siberian gulag during World War II and grandmother at 15 had her thumb cut off by Soviet Union secret police, said she had personal motivations behind her campaigning for civil liberties.

“All Australians should be concerned about the outsourcing of Australian government (or military operations) to foreign-owned, private contractors with links to spy agencies,” she said.

She said there were inherent conflicts of interest with profit-driven private contractors working in national security. Ms Wolf is also concerned about Australian law enforcement demands for telco data retention and a lack of adequate time for public consultations during the inquiry into national security legislation reforms.

“They’re drowning in data and I don’t believe it’s helping national security, I believe it’s making us more insecure because we don’t know where to look at real threats,” she said.

Ms Wolf, who has a three-year-old son, said “it was definitely more interesting to be scrolling through tweets on info-warfare than watching 3am infomercials while breastfeeding”.

The online hacking collective Anonymous has also bought into the issue. They are trying to organise an event called “smash a cam Saturday”, where they provide the internet addresses of US security cameras attached to the TrapWire network, and then provide instructions to supporters about how to hack them.

According to Cubic’s 2011 annual report, its revenues in Australia have ballooned to $115 million in 2011, up from $39.9 million in 2009.

“The primary reasons for the increase in gross margins from services in 2011 were the improvement in margin and increase in service revenue related to our transportation business in the U.K and Australia as well as the gross margin from 2011 Abraxas sales since the acquisition in December 2010,” the annual report reads.

A search on Cubic’s websites reveals no information about Abraxas or TrapWire. The page on TrapWire’s website outlining its executives and their links to the CIA has recently been removed.

On its website TrapWire says it was founded in 2004 to build and deploy counter-terrorism technologies “in the wake of the September 11th terrorist attacks”. It seeks to prevent such attacks from occurring in the future and boasts on its website that its technology can “detect patterns of behavior indicative of pre-operational planning”.

US authorities were criticised after the al Qaeda attacks of 2001 over failings in information sharing, and part of TrapWire’s appeals appears to be that it is designed to make it easier to share information across a global surveillance network. Despite the pervasiveness of its monitoring, it states one of its advantages is that it does not share “sensitive of personally identifiable information”.

The internal TrapWire emails were obtained by hackers when they broke into Stratfor Global Intelligence, which had a partnership deal with TrapWire which saw Stratfor earning an eight per cent finder’s fee for any clients it referred to the Cubic company.

Separately, a Microsoft-powered police surveillance system is being installed in New York City that connects thousands of New York Police Department and private security cameras in the city, recording and archiving up to 30 days worth of footage at a time. Police can backtrack through the footage when investigating crimes. Microsoft plans to offer it up to other cities around the world.

Why Hitler couldn’t wait to start WWII — and today’s striking parallel

One thing that had never been clear to me is why Hitler started World War II in such haste. Nazi Germany just wasn’t ready to fight a war on two fronts.

The explanation came via a documentary. Chronicle of the Third Reich is, I am pleased to say, not just another “Weekly Hitler Show” rehash.

The answer lies in finance. The Third Reich actually made government debt a state secret. Given that, no-one with any sense was going to lend Hitler and his cronies a cent. The Reichsbank did what central banks always do in these situations, and printed money to make up the gap in revenue.

But no-one outside the Third Reich was obliged to accept Reichsmarks. For foreign transactions, such as importing food, which the Reich was short of, gold was the only reliable payment option.

And of course, Germany’s gold was running out. The financial situation was desperate. So what to do?

Well, taking over neighbouring countries and their central bank gold hoards was actually the best option available.

Austria welcomed annexation into the Third Reich, and their gold stash was quietly absorbed. But that wasn’t enough.

Hitler set his sights on Czechoslovakia. Unfortunately for Hitler, the rest of Europe didn’t want another war and acceded to his demands for the Sudetenland to be given over. This deprived Hitler of the excuse he needed to invade Czechoslovakia proper and take its gold.

The Reich’s finances were a week-to-week proposition. Hitler had to get his war started — how else would he explain increased rationing to the Germans? And expansion into the Lebensraum would help solve the food shortage.

At risk of having Godwin’s Law invoked against me at this point, I am going to continue this train of thought: There is in fact a direct parallel between today’s financial crisis, and Hitler’s.

That is, that the Western world has spent far beyond its means to ever repay. The financial situation is arguably far worse than that faced by Germany back then. Hitler at least had no capacity to raise debt. Every ounce of gold he spent had to come from somewhere. Whereas today, the West has been able to stave off the day of reckoning far longer than Hitler could have dreamed. Financial markets have swallowed whole the notion that irredeemable paper currency and its corresponding government bills, notes and bonds are perfectly sound savings vehicles.

But you say, isn’t gold a relic of a bygone era? What do today’s central banks care for gold?

Well, a very great deal as it turns out. For in order to prolong the reign of irredeemable currency, Western central banks have engaged in covert interventions to prevent an all-out stampede into gold. They have been staging a managed retreat for more than a decade as the price has risen year by year.

And in order to stage this retreat, a great deal of golden ammunition has been spent. It is estimated by some, such as GATA, that as much as half the reported gold “assets” of Western central banks have in fact been disposed of or otherwise encumbered.

At some point, the bottom of the barrel is reached. And then gold must be found from elsewhere.

We can only speculate on the possibility that Germany’s gold, deposited for “safe keeping” in New York, is being held hostage to ensure Germany forecloses on Greece’s gold. One of history’s ironies.

The central bank vaults of Iraq, Libya, Greece and who knows where else can only assist in prolonging the saga of irredeemable currency. But for how long and what comes next?

The Third Reich’s quest for gold led directly to the outbreak of total war.

In our era, the finances are far worse and the stakes are far higher.

GATA: The Russians And Chinese Know What We Know And It Is SO Bullish!

GATA chairman Bill Murphy explains that China and Russia know what GATA knows about gold:

February 28, 2012

GATA: The Russians And Chinese Know What We Know And It Is SO Bullish!

There has been a great deal of commotion of late, and over these past few months, about China and their growing influence in the gold market. It is coverage well deserved and very important. It got me thinking it would be a good time to go a bit retro re the GATA story as it revolves around gold, the Chinese, and the Russians … and why it is so important for gold investors to know what they know … as well as what GATA knows.

It is very simple. The Gold Anti-Trust Action Committee was formed in January of 1999 to expose the manipulation of the gold market. At the time we thought it centered around various bullion banks, such as JP Morgan, Chase Bank, Goldman Sachs, etc. It wasn’t too long after that we realized the manipulation was far more vast … that it included our Fed, US Treasury, Exchange Stabilization Fund, and other central banks such as The Bank of England.

After GATA was formed, the price of gold spent a couple of years below $300 an ounce. Oh how people forget the real deal as time goes by. Back then GATA railed against the hedging practices of the likes of AngloGold, Barrick, etc. At the advice of The Gold Cartel bullion banks, or in cooperation with them, they sold their forward gold production years in advance. GATA POUNDED the table about the absurdity of it all … that it was not only sinister, but a fool’s game. We were attacked/mocked by the gold establishment for vilifying the hedging producers and the bullion banks for their role in the gold price suppression scheme.

Long story short…

*AngloGold and Barrick eventually closed out their hedge books, taking something like $8 to $10 billion in LOSSES apiece.

*GATA is still around and thriving, Goldman “Hannibal Lecter” Sachs let its hedging guru, Don McConvey, go as JP Morgan did to its guru, Kevin Crisp. While The Gold Cartel’s initial ringleader, Goldman Sachs, disappeared from the gold rigging scam a few years ago.

*The price of gold rose to $1900+ per ounce, corrected, and is now on its way to $3,000 to $5,000 per ounce … which is the price I jumped up and down about at our Gold Rush 21 Yukon Conference in August of 2005 … a price (in my opinion at the time) that would eventually be needed to clear the market. The price of gold back then was $436 per ounce!

How could GATA get it so right and the bullion banker big shots get it so wrong? Simple again … GATA knew that the supply/demand situation was far more bullish than acknowledged by EVERYONE in the mainstream gold world. We KNEW that a 1500 tonne demand deficit at the time was being met by surreptitious central bank/Gold Cartel selling. We also knew The Gold Cartel could not maintain that sort of central bank gold drain. This was not acknowledged by the gold world establishment, as it would have revealed the gold price suppression scheme.

I could go on and on, so let’s get to the nitty gritty of what ought to be of investment interest to you right now. While the US will not give GATA the time of day (CNBC’s Ron Insana interviewed me in February of 1999. Once CNBC heard what GATA had to say, we have been banned from CNBC US ever since.), the Russians and Chinese have been all over what GATA has overtly laid out, and quietly positioned themselves accordingly as to their accumulation of gold reserves.

This is no braggadocio on GATA’s part. They found out some time ago that the gold price was artificially suppressed. This is what GATA knew so long ago and explained/documented. The Gold Cartel was secretly using up their available central bank gold supply in order to suppress the price. This was UNSUSTAINABLE and was obvious to GATA. We KNEW that The Gold Cartel could not continue to suppress the price, only MANAGE its price on the upside … which is why the price has now risen 12 years in a row. My term, for umpteen years now, has been to call it a “managed retreat.” The Gold Cartel can only play their pitiful games to win battles, on their way to losing The Gold War … as the price goes UP, and UP, and UP, year after year.

The bottom line is the Russians and Chinese know this Gold Cartel is artificially suppressing the price of gold to suit their own agenda. On a bigger picture basis, the gold price is ALWAYS too cheap, year in and year out. For example, it is commonly stated that if the price of gold kept up with the acknowledged US inflation numbers, the price would already be $2500 per ounce. AND, that is without taking into account all the money printing going on in the US and Europe at the moment.

The Chinese and Russians have known for YEARS that gold has been way too cheap and why, which is a main factor in their buying. GATA was first clued in the Russians, who are major gold producers, were paying attention to GATA in 2004…

10:13p ET Sunday, October 3, 2004
Dear Friend of GATA and Gold:

Movements in the price of gold are sometimes “so enigmatic” and central banks and bullion banks are so involved with it that the gold market may be less than free, the deputy chairman of the Bank of Russia says.

The deputy chairman, Oleg V. Mozhaiskov, made the remarks in a speech at a meeting of the London Bullion Market Association in Moscow in June, but the LBMA and other participants in the meeting suppressed it, refusing repeated requests to release a copy.

After months of negotiation, the Bank of Russia last week supplied the Gold Anti-Trust Action Committee with an English translation, which is appended.

In his speech to the LBMA Mozhaiskov cited GATA’s work at length, and while not formally endorsing it, he showed that the Bank of Russia has been following it closely and knows that much more has been going on in the gold market than is widely acknowledged. Likening the central bank to a giraffe, Mozhaiskov quoted a poem well-known in Russia: “The giraffe is tall, and he sees all.”

The central banker acknowledged that the great increase in the use of derivatives and central bank leasing of gold have depressed its price in recent years.

Mozhaiskov also denounced “the blatant lack of discipline” of United States fiscal policy and “the social and economic injustice of a world order that allows the richest country in the world to live in debt, undermining the vital interests of other countries and peoples.”

Despite its use as jewelry, gold is mainly a financial asset, not merely a precious metal, Mozhaiskov said, and international financial circumstances are making gold particularly and hard assets generally ever more desirable for investment.

GATA is grateful to Mozhaiskov and the Bank of Russia for their willingness to address gold market issues openly, and we will encourage study and discussion of this speech.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Less than a year later GATA was contacted by a key economic advisor to Russia’s President Putin, Andrey Bykov, who said he would like to attend our Gold Rush 21 conference in the Yukon. The moribund price of gold exploded out of nowhere two days following that conference.

Months later:

Not for nothing, Andrey then came to our Gold Rush 2011 conference at The Savoy Hotel this past early August in London. How GATA further intertwines with the Russians is inferred in the following MIDAS commentary of nearly two years ago…

March 31, 2010 – Gold $1113.30 up $8.80 – Silver $17.52 up 21 cents.

For the first time in 11 years I have not watched one second of CNBC while home in Dallas. Had no time. The first part of the day was spent dealing with GATA matters which I cannot get into at this point in time (don’t bother even asking me). Then, from 10:30 to 2:30 I spent a delightful time with Emilya Khatskevisch, a Russian TV journalist from San Francisco, and Alexander Sasha Burkative, another Russian and an Event Videography guy who was the cameraman (also from San Francisco). Both came to Dallas for Channel 1 TV in Russia, formerly (love this one), The Television Channel for The Soviet Union. It has been in business since the 1950’s and is the equivalent to NBC or CBS here in the States.

The interview is about a documentary Channel 1 is doing on gold and the dollar. It was a very long interview and Emilya asked about 30 questions, which were quite good. She said this was her best interview. I don’t mind mentioning this after being forced to super speed my 5 minute delivery before the CFTC. She also said that “GATA is famous in Russia.” Again, how bizarre … the mainstream financial market press in the US won’t even mention that we exist.

Emilya was very impressed when I showed her a four page story in one of the most respected Russian monthly magazines which featured GATA, with my picture and our GATA painting front and center. It was in 2002. It’s only been 8 years since that big spread and the US financial market press still won’t mention our name. What a joke!

Just so you know that what I am relaying to you is not GATA hype, my good friends Jim Smith and Bill Laggner (both highly successful money managers here in Dallas) were here for the entire interview. We all went out to lunch at Villa O afterwards. It was most enjoyable. I asked Emilya if she would have the producers contact GATA when the show goes live, and, if possible, to sent us a recording of the program.


As far as GATA and the Chinese go, it is laid out in this running MIDAS commentary over the past many years. As you will read, GATA was on the Chinese, as they were on to us, many years ago…

September 4, 2011 – Gold $1884 – Silver $43.25

MIDAS SPECIAL – WikiLeaks/US Embassy In Beijing Price Suppression Cable/China/GATA On The Move In Hong Kong And London

This goes in the You Can’t Make This Up category. First, from my Friday MIDAS commentary:

*There is increasing talk of a gold standard. But so far none of the discussion has focused on whether the central banks still have anywhere near the gold they say they have. GATA has long stated they have less than half the gold the World Gold Council claims they do.

What a fiasco when the investment world learns what GATA believes is surely the case. There is no telling what the price of gold will do as this scenario unfolds. How ironic that the Chinese and Russians have been following GATA, and continue to encourage gold ownership, while the US financial market press ignores us, not even allowing our views to be presented to the American public.

*The bit about the Russians and Chinese is not poppycock. The number two Russian central banker spoke about GATA at an LBMA conference in Russia in 2004…

10:13p ET Sunday, October 3, 2004


And then key economic consultant to Russia’s President Putin, Andrey Bykov, attended our Gold Rush 21 conference in The Yukon in 2005 and our London Gold Rush 2011 in August. Several of us in the GATA camp were part of THREE conference calls years ago with the Chinese Investment Corporation, one of the Chinese sovereign wealth funds.

Never get tired of watching the 2 minute+ trailer of Gold Rush 21 which gives some insight into what Andrey Bykov took back to President Putin and The Russian Central Bank:



Twenty-four hours later GATA’s Chris Powell sends out the following missive:

FLASH: China knows about gold price suppression, and U.S. knows China knows

Submitted by cpowell on 03:33PM ET Saturday, September 3, 2011. Section:

Daily Dispatches

6:47p ET Saturday, September 3, 2011
Dear Friend of GATA and Gold:

China knows that the U.S. government and its allies in Western Europe strive to suppress the price of gold, and the U.S. government knows that China knows, according to a 2009 cable from the U.S. Embassy in Beijing to the State Department in Washington.

The cable, published in the latest batch of U.S. State Department cables obtained by Wikileaks, summarizes several commentaries in Chinese news media on April 28, 2009. One of those commentaries is attributed to the Chinese newspaper Shijie Xinwenbao (World News Journal), published by the Chinese government’s foreign radio service, China Radio International. The cable’s summary reads:

“According to China’s National Foreign Exchanges Administration, China’s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the United States and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the renminbi.”

It’s hard to believe that, two years later, China is still leaving so much of its gold with the Federal Reserve Bank of New York and the Bank of England when even little Venezuela has publicly figured out the gold price suppression component of the Western fractional reserve banking system and is attempting to repatriate its gold from the Bank of England and various Western bullion banks:

It is already a matter of record that China dissembled about its gold reserves for the six years prior to the public recalculation of its gold reserves in April 2009 that prompted the commentary in Shijie Xinwenbao. At that time China announced that its gold reserves were not the 600 tonnes it had been reporting each year for the previous six years but rather 76 percent more, 1,054 tonnes:

ZeroHedge, which seems to have broken the story of the Beijing embassy cable this evening, comments:

“Wondering why gold at $1,850 is cheap, or why gold at double that price will also be cheap, or, frankly, at any price? Because, as the following leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar’s reserve status. Putting that into dollar terms is, therefore, impractical at best and illogical at worst. We have a suspicion that the following cable from the U.S. embassy in China is about to go not viral but very much global, and prompt all those mutual fund managers who are on the golden sidelines to dip a toe in the 24-karat pool.”

The ZeroHedge commentary can be found here:…

In addition to fund managers throughout the world, this cable may be of special interest to the gold bears CPM Group Managing Director Jeff Christian, who says he consults with most central banks and that they hardly ever think about gold, and Kitco senior analyst Jon Nadler, who insists that central banks have no interest whatsoever in manipulating the gold price.

In fact, of course, gold remains the secret knowledge of the financial universe, and its price is actually the determinant of every other price and value in the world.

The Beijing embassy cable can be found here:

And, just in case, at GATA’s Internet site here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

So much that can be covered here, but first and foremost, GATA’s credibility and proof of our understanding of the real gold market (one not reported on by the mainstream gold world, Planet Wall Street, and the financial media) just took another giant leap forward. We have been all over the Chinese buying gold story for MANY years, having reported them buying secretly via intermediaries from our STALKER source.

It is quite intriguing and represents GATA’s track record of how we have nailed what was really going on in the gold market all these years, while being disparaged by the mainstream gold world and our critics. See for yourself:

April 24, 2009 – Gold $913 up $7 – Silver $12.92 up 12 cents

GATA’s Credibility Soars On China Gold Buying News

GATA’s credibility took another leap forward this morning when China announced it has increased its gold reserves to 1,054 tonnes from 600 tonnes. For years and years and years GATA has claimed that the gold world establishment has failed to account for surreptitious gold lending operations by The Gold Cartel to suppress the price. For there to be greater gold supply hitting the market, there had to be greater demand to satisfy this undisclosed supply. As a result of Frank Veneroso’s brilliant supply/demand work in years past, we mentioned that one of the demand areas, that the likes of a GFMS was not accounting for, was China, and that someday their stealth buying would be reported. Voila…

China gold reserves apparently doubled

HONG KONG (MarketWatch) — China has added to its gold reserves and now holds 1,054 metric tons of the yellow metal, according to a Friday report by the Xinhua News Agency, which cited comment by Hu Xiaolian, head of the State Administration of Foreign Exchange.

Hu said that China’s gold reserves had risen by 454 metric tons since 2003 and that the total was being reported to the International Monetary Fund as per the organization’s rules.

A Dow Jones Newswire report said the figure cited was nearly double China’s reported gold reserves as of the end of last month, but noted that it wasn’t clear which gold reserves Hu was referring to.

She said China’s gold reserves now rank fifth in the world among nations which publicly disclose their holdings.

Analysts said China bullion buying reflects efforts to diversify their nearly $2 trillion stockpile of foreign exchange reserves.

“Chinese officials have been increasingly vocal about their concern on the U.S. dollar and the U.S. bailout policies of late, and have actively been seeking to diversify into other assets, especially commodities,” said Martin Hennecke, an associate director with Tyche Group in

Hong Kong…


To say that this revelation is a big deal is an understatement … for a number of reasons…

*It is more evidence that various central banks are increasing their gold holdings, in contrast to a number of western banks which have been selling for more than a decade.

*China’s move debunks Planet Wall Street and other western central bankers that gold is a barren asset and not worth owning.

*And it enhances the notion that gold is a valuable reserve which will encourage other central banks to follow China’s lead.

*It surely will spook some of the sheeple central bankers who have foolishly dumped their country’s gold reserves at bargain basement prices … especially at a time when the West is looking at one financial crisis after another and the world’s major currency reserve, the dollar, is looking very suspect. A number of them are unlikely to press for further bullion sales from their countries’ reduced reserves.

*The likelihood of China continuing to build its reserves is extremely high. They were secretly building their gold reserves BEFORE the latest financial crises. If this was the Chinese mindset then, what must it be now? As is, their percentage of gold reserves is still on the very low side.

*Because of what the US is doing with our bailouts and fiscal deficits, the US dollar is surely on a precipice, thus China must be looking to accumulate more gold. Therefore, this is not a sell the news market announcement. It is just the opposite. It is a clarion call to buy physical gold.

*That clarion call will not go unheeded by the sophisticated big money in the world.

*This is a major new headache for The Gold Cartel.

Derrick sends us some retro on China/gold which was brought to your attention years


China’s forex watchdog faces dilemma on expanding gold reserves

From Xinhua News Agency
Monday, December 26, 2005

SHENZHEN, China — To buy or not buy? That’s a question for Chinese foreign exchange authorities. They have been urged to expand gold reserve since the Renminbi appreciation, but the decision is hard to make since the gold prices are rocketing.

Some economists have been appealing to the State Administration of Foreign Exchange to expand China’s gold reserve after the Renminbi appreciation in a bid to reduce the country’s reliance on the greenback….


GATA has been all over the Chinese gold buying case and we can account for it in our understanding of the true supply/demand picture. GFMS and the World Gold Council CANNOT!

And then to shed light on the MIDAS analysis and what lies ahead…

I reproduce the following from a Financial Times article this morning declaring that China’s gold reserves have officially been revised to 1,054 tons from 600. You have long held the view that China was buying gold through intermediaries and would eventually disclose part or all of these activities. It is the end quote I append that caught my eye:

“Hou Huimin, vice general secretary of the China Gold Association, said China should build its reserves to 5,000 tonnes.

“It’s not a matter of a few hundred, or 1,000 tonnes. China should hold more because of its new international status, and because of the financial crisis,” he said. “The financial crisis means the US dollar’s value is changing fast, and it may retreat from being the international reserve currency. If that happens, whoever holds gold will be at an advantage.” (emphasis added)

Thought you might be interested.
All my best to you and your health, Brad

And here’s a big tip o’ the hat to our STALKER source who nailed this one, beginning back in 2003, which just happens to be the year the Chinese now admit they started buying.

Doing a Café search, I have yet to find the initial presentation to The Café … but the bottom line is our source went to Phoenix for a meeting with six others in 2003. Our source was there to act as a gold buyer in the future. The person who held the meeting spoke FROM BEHIND A SCREEN, as he did not want to disclose his identity. While speaking perfect English, our source thought at the time he might be Chinese and did not wish that to be known.

Our STALKER source called today and I could almost see the smile on his face through the phone. He reminded me of another tip, i.e. it was Chinese doing the buying, and he reported it was going through Australian banks, which have a longstanding relationship with the Chinese.

It is with great pleasure to bring MIDAS commentary to you re the Chinese/STALKER from more than half a decade ago…

September 10, 2003 – Gold $379.70 down $1.80 – Silver $5.22 unchanged

The Stalker

…Could any market trade more predictably than gold has the past month? Every time gold rallies sharply and early in a given day, it is capped by The Gold Cartel, sold off later in the trading session, brought down early that evening in overseas trading, and then is pressured all the next day by the same cabal. Over and over we see the same trading pattern.

You see it, I see it, and SO MUST the $4.6 billion buyer, which MIDAS characterized in general as being around some $40 ago. It seems to me this “gold buying group” is playing with The Gold Cartel. They know the cabal’s drill as well as we do and probably devised a trading plan to take them on, not fight them too hard on given days, and then overpower them.

This “gold buying group” must know what GATA knows, in that the cabal has a serious vulnerability, or Achilles Heel, when it comes to the physical gold market:…


September 11, 2003 – Gold $379.30 down 40 cents – Silver $5.30 up cents

Dramatic Gold Day / Silver On The Move / Both Have Fireworks Potential

…Today’s action was very supportive of MIDAS’ notion there is a Stalker (“gold buying group”) out there taking on the corrupt Gold Cartel. They waited for Goldman Sachs to strike, then attacked, sending gold $7 off its lows. Dramatic it was. This is a big deal. Other traders will see how easily gold came back after filling the gap and will encourage them to get long, especially since the gap was filled. The huge open interest also suggests a significant move is coming. Gold’s startling comeback suggests that move is going to be one which takes the price MUCH higher….


September 19, 2003 – Gold $381.10 up $4.80 – Silver $5.25 up 2 cents

The Stalker Strikes With Another Huge Gold Buy Order!

…Gold came in stronger than expected on the Comex opening, which is almost always a very constructive development. It left a $1 gap and quickly shot up all morning, topping $383 at one point. Then the requisite Gold Cartel $6 price-capping rule went into play. That was all she wrote. The cabal regrouped and held gold in check the rest of the trading session and then did their requisite slam, knocking gold down a buck ON THE BELL.

These no-good low-lifes are pitiful. Ah for the day when we can get our stretchers out, pick them off the mat, and then dump them in the sewer!

The big news is for Café members only. I received a call from London about The Stalker and learned a bit more about this “gold buying group.” Two goodies for you:

*In addition to the $4.6 billion order, The Stalker is buying well in excess of another billion dollars worth of bullion and gold coins. The MIDAS analysis over these past months of huge new buying interests entering the gold arena looks better by the day.

*The orders are emanating out of New Zealand and Australia. My source believes it is Asian money and most likely CHINESE!

This is wonderful news as it would mean the Asian (Chinese) gold buy program is competing with Indian, Turk and Arab buying. Put them all together and it is easy to comprehend why The Gold Cartel has not been able to flush out the massively long specs.

The Eastern buyers are always there on dips competing against one another for a diminishing supply of gold.

It also explains why gold has been moving up in price with a corresponding, but lagging, move in the dollar. Gold is leading the way and doing so for the reason John Brimelow and I have articulated for so long. The key to the gold price is the surging physical gold market taking on the corrupt and devious Gold Cartel…


December 23, 2003 – Gold $410.65 up 55 cents – Silver $5.71 up 2 cents

A STALKER Of A Gold/Silver Tale For Christmas Time

…As Café members have been made aware, the Eastern gold buyers have additional competition due to the enormous physical market buying by THE STALKER (“gold buying group”). Without getting into many details, I want to stress THE STALKER is real. My source’s good friend has attended a meeting with this “gold buying group,” or his agent. I say “or” because THE STALKER is very secretive and does not want to be known publicly, even to the sellers from whom he is buying.

Both my source and I strongly believe the gold buying is of Chinese origin…


January 5, 2004 – Gold $423.80 up $8.60 – Silver $6.19 up 27 cents

Gold ($423.80) And Silver ($6.19) SOAR!

…*THE STALKER input has been incredible. Every time I get word this “gold buying group” is in the market, gold moves higher. Just as I was writing this, I received a phone call from “Mike,” my STALKER source. He tells me THE STALKER was in the market today and they are going after $1.4 to $1.6 billion worth of gold in the near term…


January 15, 2004 – Gold $408.30 down $13.10 – Silver $6.19 down 21 cents

Ouch! Gold Cartel Wins A Battle

…Good news! Just got off the phone with my STALKER source. There was an unscheduled phone conference this afternoon with THE STALKER’S US buyers. They have a NEW order for $800 million to $1.2 billion to be completed between now and March. 72 tonnes of new gold buying is nothing to sniff at! The orders are still coming out of Australia and my source continues to believe they are for mainland China…


January 28, 2004 – Gold $414.60 up $4.90 – Silver $6.60 up 7 cents

Silver Closes At Six-Year High/Gold Charges Up $5/Gold Share Massacre Orchestrated

..In my various presentations and public commentary at the Vancouver conference I stressed the importance of what was going on in the physical gold/silver market and laid out what has been presented to Café members, including John Brimelow’s unique and extremely valuable work. There was no one else at the conference doing so. While most conference presenters stressed the weak dollar as the most important gold factor, I stressed it was the surging physical market.

In that regard, I learned this morning THE STALKER (probably China) just completed the last bit of its $6.8 billion order. NOW, THE STALKER is working on its additional 800 million to $1.2 billion dollar gold order (brought to your attention recently). I might know more on this on Friday.

To give you some idea of how significant this is, Norway just reported they sold 16 tonnes of gold in January (see below) and plan to dump another 17 tonnes of bullion, which will clean them out. The Gold Cartel and friends jump up and down about more central banks selling their gold and make a big deal how negative it is. What The Gold Cartel fails to tell the press and their clients is who is BUYING gold and to what extent. Can they all be so uninformed?…


February 24, 2004 – Gold $403.90 up $5.70 – Silver $6.59 up 13 cents

Silver and Gold Pop Very Nicely / $6 Rule AGAIN

…Some input from a bullion/coin dealer who has been in the business for 40 years. He has not seen the physical gold market this tight in two decades. The physical market is in a bit of a disconnect with the price-rigged Comex. Silver is also extremely tight according to my source and only trades in size at a PREMIUM. You cannot buy a decent amount of physical silver without paying up. Wait until next month!

Some STALKER feedback. We have confirmed the buyer is from the Far East, in all probability Chinese, and they still have $1.5 billion of gold to buy. We also know why they are buying. This is a big picture trade, not a short-term speculation. The gold they are accumulating is going into deep storage and not coming back into the market on rallies. The reason is these “Chinese” fear a complete debacle in fiat currencies in the next couple of years…


That’s enough for now. You get the picture. The GATA camp was right on the money about Chinese gold buying while there was nary a peep about it from the mainstream gold world, or from the big shot bullion dealers on Planet Wall Street.


Going to soak the latest China news re GATA for all it is worth, have some fun with it, and bring more of what we said two years ago to the front and center:

September 3, 2009 – Gold $996 up $19 – Silver $16.26 up 91 cents

Gold, Silver SOAR/Sudden Talk Of The Town/China, GATA And Gold

Ask and ye shall receive! Both gold and silver gapped up higher and then made a run for the upside as the day wore on.

What a difference a day makes. On Tuesday gold was off most everyone’s radar screens, including a number of former Café members. Despite going up NINE years in a row, tedium had set in on gold’s inability to perform up to expectations based on financial events … courtesy of you know who. The general public and pundits lost interest in the gold story. It’s fascinating, as mentioned here for months, how gold makes its boldest moves higher when investors aren’t paying attention.

Yet by yesterday afternoon gold was suddenly the talk of the town, lighting up the CNBC and Bloomberg scoreboards … and there was tons more talk all day today. Bulls came out of the woodwork and one clueless Muppet after another offered an opinion why gold was the place to be. PRICE ACTION MAKES MARKET COMMENTARY. Most of the opinions were one day thought-outs … coming up with the same reasons why gold is so bullish which have been in place all summer. And naturally, not ONE mentioned the real reason gold is on the move: The Gold Cartel is gradually losing control of their rig.

However, one solid reason given for gold’s lurch to the upside is CHINESE buying. Those pundits citing the Chinese as formidable buyers are right on the money…

In Currencies: The early chatter was all about the recent moves in metal prices (see commodity section below), particularly gold. Speculation mounted that perhaps pressure on the Chinese state-controlled organizations to dump dollars in favor of more concrete assets like gold were swirling among dealing desks. Thus the USD’s tone was subdued as gold hit fresh 3-month highs towards $990/oz. The renewed chatter of Chinese reserve diversification will add to the dollar supply and also reinforce the gold tone.

In commodities: Dealer chatter circulating that recent move in metals might be attributed to Chinese Sovereign Wealth Fund diversification (complemented by selling USD) . There were numerous comments from Chinese officials made in Q4 2008 on this topic. Back on Dec 16th the Ministry of Industry & Information commented that China sought to increase reserves of strategic materials. Back on Nov 18th China’s PBoC was considering raising its gold reserve by 4K tons and the prior day (Nov 13th) the HK Standard reported that China might seek to buy gold in a move to diversify its currency reserves and the article added that China currently holds about 600 tons of gold and could increase this amount to as much as 4K tons.



Chinese sovereign wealth fund dumping dollars for strategic investments like gold

Reports suggest that China’s main sovereign wealth fund and other state entities are under pressure to invest in strategic Western assets as the country tries to offload its dollars for firmer-based wealth including gold and oil.

Author: Lawrence Williams

Posted: Thursday , 03 Sep 2009


Several reports are coming out of China that there is pressure on state-controlled organisations – notably the country’s main sovereign wealth fund, China Investment Corporation (CIC) to rapidly build investment in non-Chinese enterprises. While the CIC itself, with apparent access to some $300 billion in funds – and the possibility of more from the government – may be concentrating on hedge funds and other investment entities, there is another sector for Chinese state-owned companies looking at major investment in commodities. Indeed with the funds available as China seems to be dumping its US dollars in favour of more concrete assets, virtually no minerals sector is safe from Chinese participation.


Veteran Café members know that MIDAS has been jumping up and down about China since 2003 when their buying commenced and especially as of last April when they announced an increase in their gold reserves of 460 tonnes. You also know that GATA has had THREE conference calls with the Chinese Investment Corporation since April of 2008. While the mainstream gold world and US financial market press won’t give GATA the time of day, The Chinese and Russians (Key economic consultant to President Putin, Andrey Bykov, and the Russian Central Bank) have gobbled up our stuff. Thus, they know what the gold market is all about and they know where the price is going and WHY! But Planet Wall Street? … out to lunch.

In addition, over the past two weeks I heard from TWO reliable sources the Chinese intend to buy MANY hundreds of tonnes of gold in the years ahead. So all this Chinese gold smoke is for real. There is a fire behind the smokescreens and all the chatter about China and gold is for good reason.

Gold is the talk of the town in Hong Kong too. From a fellow Café member in Hong Kong last night…

Dear Bill,
In the Hong Kong Chinese newspapers and in the South China Morning Post, there are articles reporting that a new storage facility for gold is now open at Chek Lap Kok, at Hong Kong’s airport. According to these articles, the Hong Kong government’s gold bars stored in London will be shifted to Hong Kong’s new storage space at the airport by the end of this year. (One wonders why it should take so long to shift the gold)

The Ming Pao Newspaper, which is in Chinese, reports that the the Hong Kong officials responsible for the facility are discussing ways of cooperating with the Shanghai Gold Exchange. Because of the foreign exchange rules and restrictions in China, gold can not be as freely moved in and out of China as in Hong Kong. Therefore, Hong Kong may act as one facility for the delivery and storage of gold bars for the Shanghai Gold Exchange.

Usually I send you articles for the Standard but there in no article on this story in that journal. I do not have a subscription to the SCMP so I can not send you the full story. However, below is the link to the SCMP article that is in English.
Best regards,


Four days later I sent the following MIDAS commentary to all the financial media I could think of (not one responded):

9/8 GATA MEDIA SPECIAL – The Reason for Gold’s Imminent Price Moon Shot? It’s a Simple Supply/Demand Story.

Oh well, GATA is used to being ignored and abused … part of the territory. But, perhaps that is all about to change, thanks to the efforts of Chris P. After the Cambridge House investment conference in Toronto on September 14 and 15, he is off speak at the largest investment conference in Asia, one hosted by actor George Clooney. Then, it will be London in which he is the featured speaker at the Pi Capital conference … sandwiched between featured speakers former US President Jimmy Carter and the renowned George Soros. GO CP!…

Is GATA suddenly becoming almost respectable?

Submitted by cpowell on 09:51AM ET Sunday, September 4, 2011. Section:

Daily Dispatches

1:02p ET Sunday, September 4, 2011
Dear Friend of GATA and Gold:

Thanks to a friend met in London just after GATA’s Gold Rush 2011 conference there last month, your secretary/treasurer has been invited to affect some respectability and speak at a couple of financial conferences well outside the usual precious metals circuit.

The first is the CLSA Investor Forum in Hong Kong from September 19-23, said to be the largest investment conference in Asia. Host of this year’s conference is to be the actor and human rights advocate George Clooney:…

The conference is open only to CLSA clients.

Then on October 10 your secretary/treasurer has been invited to address the weekly Pi Capital conference, which, the previous week, will be hearing from former President Jimmy Carter and, a couple of weeks later, from fund manager George Soros:

Some current or present government officials with responsibility for the British end of the gold price suppression scheme may be in the audience, so it could be interesting. But this too is a members-only event.

That GATA suddenly should be welcome, if only tentatively, in such circles may be construed as evidence that the gold price suppression scheme is beginning to escape derision as mere “conspiracy theory” and starting to seem at least plausible, probable, or even fully documented to people in a position to act on the knowledge.

In any case GATA has come a long way since its incorporation 12 years ago. If you’re encouraged by our progress and are inclined to help sustain our work, please consider making a donation:

We promise to try to keep making trouble with it. Remember that the World Gold Council, which presumes to speak for both the gold mining industry and gold investors, is said to have an annual budget of more than $60 million, raised from assessment against the mining companies that are its members, and most of that just goes for hanging out with beautiful young women modeling expensive jewelry. (Somebody’s got to do it, we suppose.) But it’s not merely envious to note that this does little for the cause of establishing free markets in the monetary metals, even as GATA, having no regular income, has no annual budget. We sustain ourselves on what our friends can provide irregularly.

On the other hand, maybe the gold price suppression scheme will blow up in advance of the Hong Kong and London conferences and we can move on to trying to prove something else — maybe flying saucers or Bigfoot. Maybe that would get us into The Wall Street Journal or The New York Times at last.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


As you can surmise from all that discourse, the Russians and Chinese have known what GATA knows for some time and have acted accordingly … and did so very secretly for a number of years. As the reasons to own gold continue to mount, there is no reason to believe their gold buying will cease anytime soon, especially as the Chinese in particular encourage their citizens to purchase gold, and various exchanges have precious metals exchanges have been popping up all over the place in Asia.

You might want to keep all of this in mind when the price of gold sells off, and one gold pundit commentator after another predicts the demise of the gold bull market, and that it is a bubble popping (even though the average US citizen can’t even spell gold yet). While these pundits are negative, the Chinese and the Russians are saying, “Thank you very much,” on the dips and buying.

It just might be my long held $3,000 to $5,000 price prediction might be too conservative.

Bill Murphy
Gold Anti-Trust Action Committee


GATA is not only a think tank group that talks the talk, we have been WALKING the WALK for more than a decade. Besides speaking at various conferences all over the world, we have held four of own international conferences in an effort to get the truth out there to the investing public about the gold and silver markets … to counter the heinous activities of The Gold Cartel.

The four international GATA conferences:

*The GATA African Gold Summit in Durban, South Africa on May 10, 2001, was attended by 5 sub-Saharan African nations, the South African Reserve Bank, leading SA gold producers, the South African unions, etc., – an event that was featured on SABC television.

*On August 8th and 9th 2005, GATA hosted Gold Rush 21 in Dawson City, Canada, a historic conference held in the Yukon to expose the manipulation of the gold market. One hundred delegates attended from 14 countries, including Andrey Bykov, an economic consultant to Russian President Vladimir Putin.

*Then, on April 18, 2008 it was The GATA Goes To Washington conference in Arlington, Virginia. 180 attendees came from 17 countries for the gathering. The conference showcased GATA’s FOIA efforts to learn the truth about US gold reserves from the Fed and US Treasury … which led to a lawsuit against the Federal Reserve System in The United States District Court For The District of Columbia.

*Finally, in August of 2011 GATA hosted an international precious metals conference at The Savoy Hotel in London to expose the manipulation of the price of gold and silver. Four hundred people attended from 38 countries. Many of the attendees said it was the “finest conference” they ever attended.

GATA intends to win the day in our efforts to expose the manipulation of the gold and silver markets. We have been effective so far thanks to the generous contributions of so many. Nothing has changed in that regard. CP and I intend to make the lives of the honchos of The Gold Cartel as miserable as possible. We need your financial support to make that happen.

Most importantly, for you the reader, as the surreptitious activities of the gold and silver markets are exposed, the prices of gold and silver will go bonkers. AND, the gold/silver shares will go ballistic too. If I might say, this is one you can take to the bank: TEN BAGGERS in the decimated gold/silver exploration/junior share sector will be commonplace. The timing of this coming wealth bonanza has been very tricky and overdue. BUT, it is coming … and is the reason WHY, you:


Fascinating line of enquiry: The illegal third well at Deepwater Horizon

Via comes this fascinating allegation from That BP and the US Government are concealing the existence of a third well at Deepwater Horizon – the true source of the uncontainable oil leak.

Macondo well never capped, oil still gushing from secret 3rd well: New evidence presented

New evidence presented to officials and Deborah Dupré on Friday revealing extraordinary secrets kept under cover by government officials involved with the Gulf environmental and humanitarian catastrophe could change direction of the BP trial and a cause public frenzy when the public learns that the well was not capped; oil never stopped gushing; and the source of that oil is a secret third Macondo well.

Only three days before the nation’s New evidence presented to Deborah Dupré Friday morning clearly indicates:

  • The unmentioned existence of a 3rd Macondo well (the real source of the explosion, oil spill and Deepwater Horizon sinking)
  • The current condition of this 3rd Macondo well being such that it can never be capped.
  • The compromised seabed floor condition being such that there are multiple unnatural sources of gushers continuing to pour into the gulf.
  • The highly publicized capped well, (Well A) never hit pay dirt and was abandoned. Hence, it was never source of the millions of gallons released into the Gulf.

(See documentation here, here, here, and here.)

The documentation supports investigations by New Orleans-based environmental attorney Stuart Smith, he told Dupré in an overseas telephone conversation Friday morning.

“The government has never denied that oil identified over a year after the well was “capped,” was from the Macondo formation,” Mr. Smith said Friday.

Paul Orr and his team from Lower Mississippi Riverkeeper collected oil, and lab-certified tests results established a fingerprint match to BP’s Macondo. Mr. Smith had reported:

“The most alarming part of the finding was not simply that the Breton Island sample had BP’s fingerprint on it, but that test results were nearly identical to those from the fresh oil seen early days of the BP spill – instead of the heavily weathered and degraded oil we’ve come to expect in recent weeks and months.

Those test results disproved the other theory about “fresh oil” reports: “All the oil BP strategically sunk to the seafloor with nearly 2 million gallons of toxic dispersant is beginning to break free and rise to the surface en masse, and in turn, blacken the coastline with fresh oil,” Smith had reported.

Mobile Press Register reporter went into the Gulf, collected an oil sample, and took it to Louisiana State University analyst that said “it was a perfect match” to BP oil.

In an August 2011 email to the Mobile Press-Register, LSU chemist and NOAA contractor Ed Overton, wrote: “After examining the data, I think it’s a dead ringer for the MC252 [Macondo Well] oil, as good a match as I’ve seen.”

Mr Smith then reported, “Confronted with an overwhelming body of evidence – scientific data, photos and video of oil in the water and credible reports of the “stench of oil” at the site – BP and the U.S. Coast Guard continue to deny not only that the Macondo Well is leaking.”
“Nobody’s explained where that oil is coming from, a natural seep or anything, or why we’re finding fresh oil,” Mr. Smith said today.
On August 17, Mr. Smith blew the whistle that oil was still gushing into the Gulf from the Macondo formation, concurring with the late Matt Simmons’ reports.
After reporting that plus that the well “cap” was a sham, and that it could not be capped except maybe with a nuclear blast, Simmons (67) died of a heart attack while relaxing in his hot tub on August 11, 2010.
‘Everybody knows’
“I have just sent the attached briefing package to the Attorney Generals of Alabama and Louisiana which presents evidence we believe has never seen the light of day concerning the how and why of the Deepwater Horizon Disaster and subsequent gushing oil in the Gulf,” Susan Aarde told Dupré in a private email Friday morning.
Gulf Rescue Alliance is an association of concerned scientists, citizens, professionals, and officials, not equipped with resources or manpower to further explore and investigate. It has, therefore, compiled some select evidence for distribution, hoping people will not confuse ‘conspiracy theory’ with conspiracy facts.

“We have spent months pouring over the information to ensure its integrity to the best of our ability,” Aarde told the Examiner Friday.

A handful of experts and investigators outside the oil industry’s payroll and government ‘oversight’ have been methodically sifting through mammoth quantities of data for the past four months.

“Their work answers a number of questions,” she said.

Some of those questions include:

  • WHY did BP officials testify to Congress that there was only one well when there were three?
  • Why was the 3rd well illegally drilled without a permit?
  • Was the rogue well factually sealed in September? (Since all casing was blown out of the rogue well and there is nothing for any mechanical instrument to connect on to, there is no possibility of capping the well; which means that huge volumes of oil are continuing to flow into the Gulf unabated and would answer the question of where all the on-going fresh oil that is being seen and reported by fishermen and locals is coming from.)
  • Which well was the Deepwater Horizon actually hooked up to when the blow out took place on 20 April 2010?

Gulf Rescue Alliance believes timing on the distribution of this material could be beneficial in ensuring that the disaster litigation does, in fact, reach trial stage.

The organization says the public has a right to know that the never capped well is still pouring into the Gulf of Mexico and needs to demand something be done.

“At best this material will be admitted as evidence – or at least utilized to formulate investigative questions and discovery processes during the trial,” Aarde said.

Aarde asserted that the Gulf Rescue Alliance has no interest in publicity for itself, pointing fingers, finding who to blame or anything else.

“We are interested in
catalyzing action on an urgent basis to save the Gulf from long-term disastrous impact by getting actual solutions being applied; solutions that have been endlessly blocked by, primarily, the EPA.

“We hold the EPA intimately responsible for holding in place the destructive response methods used in this disaster.

“The Gulf and the life it supports can’t wait 3, 6 or 12 months for a trial to bring a resolution; nor will a real resolution be possible if no admission occurs of the currently uncapped well. Justice will mean nothing if the Gulf is dead.

“This is absolutely relevant to the case at hand and vital information to get into the hands of the AG of LA and anyone else involved in this trial,” she said.

According to the new evicence, government officials possibly knew about the 3rd Well but aided in covering it up.

Aarde said this is similar to the recent PEER report hiding that top Obama officials manipulated scientific analyses by independent experts to seriously lowball amount of oil leaking from the BP Deepwater Horizon.

After the Macondo operation began, BP quickly paid for research reports by supplying grant funding: $10M to University Of South Florida; $10m to Mississippi State University, $10m to Louisiana State University, and $5m to Alabama Marine Sciences.

“There is no way BP would not know they were misleading everyone,” Matt Simmons had said. “They would have to be deaf, dumb, and blind and they’re not. These are smart guys.”

About the “capping of the well,” Simmons repeated, “What you are seeing on television, what BP is saying about relief wells . . . that’s a total ruse.”

The real blowout, according to the Gulf whistleblower and advocate, is “an open hole gushing 120,000 barrels of toxic crude every day below the surface of the Gulf six or seven miles away from the riser – and BP is ignoring it”

Simmons told MSNBC’s Dylan Ratigan that BP was “lying” because if it acknowledged the truth, they’d “go to jail.”
As Leonard Cohen famously sings, “Everybody knows.”
“Everybody knows the fight was fixed. The poor stay poor, the rich get rich. Thats how it goes. Everybody knows.”

Billionaire Rinehart and friends could spark a gold and silver frenzy

Billionaire Gina Rinehart has the money and advisors to bring about a tectonic shift in world markets — and make a stupendous amount of money.

It is a well-publicised fact that Ms Rinehart is worth about A$20 billion — a fortune derived from West Australian iron ore.

What is less known is her circle of advisors.

Gina Rinehart part-sponsored Lord Monckton’s visit last year in her battle against the carbon tax.

The Mannkal Economic Education Foundation recently released a video of Lord Monckton. In it he reveals a plan to take over Australian media in the cause of defeating the carbon tax and mainstream climate science in Australia.

Lord Monckton hopes that what has been done to elevate Andrew Bolt to prominence can also be done for one Joanne Nova. Starting at 0:32 he says:

Look at the effect Andrew Bolt has had since he was rocketed to fame — and I think without giving away too many secrets Joanne’s going to end up doing quite a bit more on that channel if all goes according to plan.

At 1:22:

And it seems to me that putting some time into encouraging those we know who are super rich to invest in even establishing a new satellite TV channel is not an expensive thing and then get a few Jo Novas and Andrew Bolts to go on and do the commentating every day.

Lord Monckton is referring to Joanne Nova, a climate-skeptic blogger. Her husband Dr David Evans is also a prominent skeptic. Quite apart from their climate campaigning they have another venture together called Goldnerds. You can see an ad for Goldnerds on her blog, down the left sidebar. Nova and Evans are not your average gold investors. You can surmise they have the ear of Gina Rinehart to the extent she is willing to spend hundreds of millions of dollars in pursuit of common goals.

In 2007 Nova and Evans did a roadshow to launch Goldnerds. The gatherings — informal lunches with like-minded gold investors — were promoted through Bill Murphy’s

Bill Murphy and the organisation he chairs, GATA, have a radical but increasingly accepted take on the gold and silver markets — that they are markets in name only, subject to intensive covert manipulation on behalf of central banks.

Critical to the GATA thesis is that demand for gold will continue to overwhelm the supply (real or apparent) conjured up by central bank machinations. This imbalance will grow until the present fiat currency system fails and gold is placed once again at the centre of world finance.

The roots of the GFC and current Europe debt crisis stem from excessive growth of debt, both public and private. By discouraging investors from defecting into gold, central banks have distorted capital allocation. For decades capital has been “invested” in asset bubbles including an extraordinary array of exotic derivatives. Though some bubbles popped, bigger bubbles have been blown to take their place. The whole system is due to implode.

And it will implode sooner rather than later if gold and silver investors, rather than accept paper substitutes, “cash out” by demanding delivery of physical gold and silver.

Rinehart’s anti carbon tax campaign is public. But just out of view, is she expending similar if not vastly greater funds in relation to gold and silver?

Monckton in the video above spoke of elevating Joanne Nova in the same way Bolt was elevated on Channel 10, which Rinehart has bought into. Nova and Evans, having built a rapport with Rinehart, have likely filled her in on the tremendous profit-making opportunity that exists in precious metals.

In November Dr Evans was one of a number of prominent commentators who gave presentations at a gold symposium held in Sydney. Canadian billionaire and precious metals fund manager Eric Sprott was the keynote speaker.

It is no mean feat to attract a billionaire fund manager to a conference. Someone put up the financial guarantees to covers expenses and made it worth Mr Sprott’s while. Rinehart may have invited Sprott for discussions regarding investment in precious metals.

Coincidentally Sprott asset management has made new offerings for their PHYS (gold) and PSLV (silver) funds amounting to in excess of US$650 million. However it is an open question whether there is even enough available silver and gold to meet demand from Sprott’s funds. With investment funds from the likes of Gina Rinehart, Sprott could bring the fractional-reserve bullion banks undone. Gold and silver prices could launch to unprecedented highs as investors rush to purchase from a very limited supply.