Financial Markets Operation: The Golden Money Master Scam

2024 Author: Seth Attwood | [email protected]. Last modified: 2023-12-16 15:55

Serious players in financial markets know that understanding how these markets work is impossible without understanding what is happening and what may be happening with gold.

Gold is the axis of the world financial system

The axis of the world's financial markets is gold. And around this axis various securities (stocks, government and corporate bonds, thousands of derivatives) revolve in volumes measured in tens and hundreds of trillions of dollars. But players with any paper financial instrument check their decisions and actions against the state and expected prospects of the gold market.

Central banks are also guided by gold in their decisions that affect the rate of issued monetary units. But among the central banks there is one who not only observes the trajectory of the "yellow metal", but tries to actively influence this trajectory. We are talking about the American Central Bank - the US Federal Reserve System, the main shareholders of which I call "the owners of money."

Gold is a dangerous competitor to the US dollar

At the 1976 Jamaican Conference, there was a decoupling of the US dollar from the “golden anchor”. The dollar has become "paper". But the decision of the Jamaican conference to demonetize gold (i.e. turn it from a monetary metal into a commodity) was purely legal. And the players in the financial markets are guided not by legal decisions, but by prices.

For the paper dollar to have the status of a world currency, it was necessary that its main and unspoken competitor - gold - would become cheaper in relation to the "green" one. Or at least not to rise in price. A powerful propaganda campaign was organized against the "yellow metal" in the second half of the 1970s. So Paul Volcker, President of the Federal Reserve Bank of New York in 1975-1979. (and the Chairman of the Board of Governors of the US Federal Reserve System in 1979-1987) “prophesied” that over time the price of gold would become slightly higher than the price of iron, that, they say, gold is a completely useless metal.

However, such "prophecies" did not help. The price for the "yellow metal" has crept upwards. Under the gold-dollar standard (formally in force before the Jamaican conference), the official price of gold was $ 35 per troy ounce, and in the early 1970s, as a result of two dollar devaluations, it became equal to $ 42.2. And after the Jamaican conference, the price of gold quickly surpassed the $ 100 mark, which seriously alarmed the architects of the new monetary and financial system.

Verbal interventions against gold had to be complemented by interventions using the "yellow metal". Several hundred tons of gold were sold from the gold reserves of the US Treasury and the International Monetary Fund. But this did not stop the prices for the "yellow metal". In the early 1980s, they hit the $ 800 mark and nearly made it to $ 850.

The birth of the gold cartel

Panic broke out among the "owners of money" who had bet on the paper dollar. Gold did not want to obey the decisions of the Jamaican system and before our very eyes destroyed its competitor - the "green" currency. In deep secrecy, a plan was prepared to save the paper dollar. The essence of the plan is to play against gold. It was decided to involve the American Treasury in this game, as well as the Federal Reserve Bank of New York, the main central banks, as well as leading private commercial and investment banks, among which the American Goldman Sachs was to play a special role.

In fact, a secret gold cartel was created. He had to conduct constant gold interventions in the financial markets, not allowing the "yellow metal" to raise its head. How were such interventions supposed to be carried out?

Firstly, at the expense of metallic gold from official reserves (in the United States, this is the reserve of the Treasury, in other countries - the reserves of the Central Banks).

Secondly, at the expense of "paper gold". It refers to various financial derivatives, derivatives linked to gold (futures, options, etc.).

The cartel was created, the most active phase of its activity fell on the 1990s. Massive interventions by cartel members using metal and paper gold had the desired effect: in December 2000, the price fell to a record low of $ 271. At the same time, the position of the US dollar in the world reached its maximum. It was in the 90s of the last century that the peak of financial and economic globalization took place, behind which the victorious tread of the American dollar was hidden.

The first disruptions in the activities of the gold cartel

In the 21st century, the gold cartel began to fail. Thus, the tragic events of September 11, 2001 in New York shook the prestige of the US dollar and provoked an increase in gold prices. In the 2000s, the volatility of gold prices increased significantly, with a trend towards a steady rise in the price of the "yellow metal".

At the end of 2012, a record price of $ 1,662 was reached. Then, of course, she sank. Last year, the average annual gold price approached the $ 1,300 mark. This year it has already been confidently "broken". The $ 1,400 bar has already been broken.

Experts expect that next year the price of the end of 2012 may be surpassed and a new all-time record will be set. Of course, this will not be a completely absolute record, because if we recalculate the prices of gold at the beginning of 1980 in modern dollars, then the record of that time will still be held in the next year.

Whatever it was, but no one doubts the stable long-term trend of rising gold prices. On the one hand, this is due to a complex of geopolitical and geoeconomic reasons (I will not talk about them now). On the other hand, this trend is inevitable because the global gold cartel has already exhausted itself.

Exhausted in the literal sense: a significant part of the gold reserve, with the help of which regular interventions were carried out, has been exhausted. In addition, one must take into account that today the allied relations between the United States and a number of Western countries have weakened. The latter are unwilling to spend their remaining gold reserves to support the US dollar any longer.

Washington Agreement - Central Banks Gold Cartel

Despite the fact that the gold cartel I mentioned was highly classified, part of it had (and still has) a completely legal status. We are talking about an agreement between the Central Banks of the leading Western countries, called the "Washington Agreement". Exactly twenty years ago, in 1999, at a meeting in Washington, Central Banks signed an agreement to maintain minimum prices for the "yellow metal".

The main part of this agreement is the determination of the gold sales limit - common and for each Central Bank separately. They say that central banks should not exceed these limits in order not to lower the price of gold to the level of the plinth. The agreement involved two dozen central banks, which accounted for nearly half of all official gold reserves in the world in the late 1990s. The general limit for five years was set at 2,000 tons, i.e. 400 tons per year.

The agreement was extended in 2004, the total limit was increased to 2,500 tons, i.e. 500 tons per year. The next prolongation was in 2009, the parties returned to the annual limit of 400 tons. In 2014, there was the last five-year extension, but this time no limits and quotas were set for individual central banks. It only expressed a desire to show solidarity in the struggle to maintain the price of gold.

Inexperienced people, familiarizing themselves with the documents of the Washington Gold Agreement, may come to the conclusion that a cartel agreement was concluded between the Central Banks aimed at maintaining a minimum price for gold by limiting the sale of the precious metal from reserves.

In fact, the Washington Agreement is a vivid example of the language of financial Kabbalists, which sometimes should be understood exactly the opposite. So, in the translation into Russian of the texts of the Washington Agreement, the meaning of the cartel of the Central Banks is precisely to play for a fall in gold. Those general limits and quotas, which I mentioned above, are the volumes of gold that the central banks are obliged to sell from their reserves. And gold experts are well aware of the true meaning of the Washington Agreement. In 1999, Washington set a gold layout for its vassals. Then none of the allies dared to get away from fulfilling Washington's assignments.

During the period of the first term of the Washington Agreement (1999-2004), the Swiss National Bank (NSB) particularly distinguished itself by selling 1, 17 thousand tons of "yellow metal". The other largest sellers were the Bank of England (345 tons) and the Central Bank of the Netherlands (235 tons).

In the course of the second term (2004-2009), the Bank of France (572 tons), the European Central Bank (271 tons) and again the NBS (380 tons) distinguished themselves.

At the third stage (2009–2014), the enthusiasm of the cartel participants finally dried up. There were no big sales. Central banks got off with symbolic sales of several tons per year.

The fourth stage (since 2014) cannot even be called “sluggish”. None of the parties to the agreement sold gold. The only exception was the Bundesbank. The German Central Bank sold 2-4 tons per year (and even then for minting coins). And, horror, some of the cartel members became net buyers of the "yellow metal".

Golden punisher on death

Currently, 22 Central Banks participate in the Washington Agreement, and it will expire on September 26 this year. You don't have to be a prophet to predict that there will be no renewal of the agreement. It becomes extremely costly to play for a fall in gold. The gold cartel is going against the tide.

Last year, according to the IMF, net purchases of gold by the world's central banks amounted to 651 tons. Cartel members are offended to see how other central banks buy gold at prices that will be called "ridiculous" tomorrow. The meaning of extending the agreement is lost even because US President Trump is seeking to weaken the US dollar. And the gold cartel of the Central Banks was created to support the "green" currency.

The gold cartel also has an invisible part. This is the part that ensures the unannounced transfer of metallic gold from basements and safes of central banks to the world market. Such transfer is formalized in the form of gold loan transactions and gold leasing.

The main reservoir of gold for this kind of operations is the US Treasury gold reserve, which, as you know, was deposited in the vaults of Fort Knox. According to official US statistics, the value of this stock has not changed for many years, equal to 8100 tons. However, there are many signs that the Fort Knox vaults have long been empty, and the gold of the American Treasury has long gone to the world market.

Thus, we are witnessing the end not only of the cartel of the Central Banks under the guise of the "Washington Agreement", but of the entire gold cartel - the greatest scam of the "owners of money" of the last century.