Forget about Fake News… Let’s Talk about Fake Markets
By Clint Siegner
GoldSeek.com
Wednesday, 31 May 2017
The U.S. and other nations with “free market” economies got credit for defeating the communists in Russia. That is ironic, because it is now more clear than ever that western leadership actually shares the Soviet inclination for central planning, and they have been increasingly intervening in our markets since the collapse of the USSR.
Our officials make economic policy as if healthy markets must be planned and coerced, much like the politburo. Some of this policy is created and run in the open; the government bailouts, Quantitative Easing, and zero interest rate policy, for example.
Other programs are more secretive. Investors know the “Plunge Protection Team” exists to be the buyer in markets when all genuine buyers have left. But we can only guess as to what that crew actually does day to day.
What these self-appointed market masters do in complete darkness is likely even more controversial and intrusive. They remain violently opposed to audits and other attempts to impose accountability.
But, recently, some leaked documents have given a sense of what western officials do behind closed doors.
hey have actually been micromanaging markets since the 1970s.
Ronan Manly with Bullionstar wrote a terrific piece outlining the coordination among western central bankers pertaining specifically to the gold market after Nixon shut the “gold window” and launched the era of purely fiat currencies.
Wikileaks published a secret memo sent from London to the U.S. Treasury Department regarding the purpose behind the formation of the futures markets for gold.
Officials wanted to create a paper market which dwarfed the physical market and encouraged volatility; all with the aim of discouraging investors from holding bullion. To wit:
TO THE DEALERS’ EXPECTATIONS, WILL BE THE FORMATION OF A SIZABLE GOLD FUTURES MARKET. EACH OF THE DEALERS EXPRESSED THE BELIEF THAT THE FUTURES MARKET WOULD BE OF SIGNIFICANT PROPORTION AND PHYSICAL TRADING WOULD BE MINISCULE BY COMPARISON. ALSO EXPRESSED WAS THE EXPECTATION THAT LARGE VOLUME FUTURES DEALING WOULD CREATE A HIGHLY VOLATILE MARKET. IN TURN, THE VOLATILE PRICE MOVEMENTS WOULD DIMINISH THE INITIAL DEMAND FOR PHYSICAL HOLDING AND MOST LIKELY NEGATE LONG-TERM HOARDING BY U.S. CITIZENS.
The Rest…HERE
