The Shadow of Truth hosts Rob Kirby for an incredible discussion about the insidious, omnipresent forces behind what has evolved into continuous, non-stop global financial markets intervention by the Central Banks. Or is it really the Central Banks?
I think you will find this discussion highly informative, if not highly engaging. Please pass it along to friends and colleagues – the world needs to see The Truth:
By way of background, it was a renowned and respected macro-economist, Frank Veneroso, who discovered in the mid-1990's that global demand for gold exceeded the annual global mining supply. He also discovered that it was western Central Banks that were selling outright and leasing gold from their holdings in order to balance out this supply.
Why? Because money-printing had started to accelerate, especially by Alan Greenspan's Fed, in response to a series of increasingly severe economic shocks – like the S&L/junk bond collapse, the Asian debt collapse, Mexico's peso collapse, Long Term Capital's collapse, etc. If the Central Banks had allowed the price of gold to rise in response to growing demand for physical supply, it would have undermined the global fiat currency system and stripped the existing U.S.-centric global power structure.
This is why the Bank of England dumped 400 tons of its gold – 50% of its holdings – into the market, right at the bottom, starting in 1999. This launched the current bull market in gold. Yes, reader, gold is still in a bull market – it's currently up 462% from its $250 in 2000/2001.
With that as the backdrop, led by Rob, we discuss the connection between the U.S. Treasury and the Fed. Most people mistakenly believe that it's the Fed which rigs the markets. But the Fed is a political creation. It was ordained by Congress; the Fed Chairman is appointed by the President; and Congress has the power – if it wanted to – to audit the Fed or get rid of the Fed.
It is the Working Group on Financial Markets that is the real "Wizard" behind the curtain. Using its Exchange Stabilization Fund, the Working Group – in conjunction with the Fed, which does the Working Group's bidding in the markets – exerts its control in all of the financial markets all of the time. Collectively, the Working Group/Fed is referenced as "The Plunge Protection Team (PPT)."
Rob Kirby does an outstanding job of clarifying what happened, how it progressed, and where we are today.
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