Central Bank Market Rigging: Horrified About The Biggest Global Bank Run In History

The Fed and Central banks are manipulating the gold and silver price because they are horrified that the biggest global BANK RUN in history will take down the entire system. Unfortunately, a lot of investors are still being misled about the fundamentals of precious metals market manipulation. While the Fed and Central bank are indeed intervening in the gold and silver market, they are also propping up the majority of asset values across the board. This is especially true for most stocks, bonds and real estate.

Yes, it is also true that billions of Dollars worth of paper gold and silver are dumped into the market in nanoseconds during very light trading days. Thus, the impact is to cap the gold and silver price, making sure that 99% of investors stay fast asleep. These are the very same investors who the Central banks want wants to keep their funds placed firmly in stocks, bonds and real estate. However, there is some method to their madness.

I continue to receive emails from individuals who believe the Central banks can push the price of gold or silver anywhere the please. This is total RUBBISH.It is a crying shame that there are still analysts out there misleading their followers with that sort of superficial nonsense.

All the Fed and Central Banks can do is to keep the gold and silver price from exploding higher. They cannot push the value of gold or silver (too far) below its cost of production. Here is a chart from my previous article showing the gold price versus the top two gold miners (Barrick and Newmont) cost of production:

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The gold market price was always HIGHER than Barrick and Newmont’s cost of production. So, as we can plainly see, the Fed and Central Banks NEVER pushed the annual gold price below Barrick and Newmont’s cost of production from 2000 to 2016.

NOT EVEN ONCE….

Which means, the notion that the Fed and Central banks can push the price of gold down to $500 or even zero, is total nonsense. They CAN’T do it, and they know it.Furthermore, I have older Homestake Mining Annual Reports from the 1970’s. Homestake Mining was the United States largest gold producer for more than 50 years. I plan on writing an article showing how Homestake’s cost of production increased substantially, along with the oil price, during the inflationary decade of the 1970’s.

That means, the surging gold price during the 1970’s was not due to increased demand, it was due to a skyrocketing oil price. Now, I am going to post these charts again, because it seems as if some folks are still a bit DENSE. However, I have added another chart for KICKS & GIGGLES. Please take a close look at the following three gold, silver and copper charts:

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According to these charts, the price of GOLD, SILVER and COPPER have been tied to the OIL PRICE. While their movements are not exact, we can see that each moved in tandem with the oil price, especially during the huge surge during the 2000’s. If we look at the new copper-oil price chart, we can see that the copper price, starting in 2003, moved up and down TWICE along with oil.

EXTREMELY IMPORTANT TO UNDERSTAND BELOW:

Investors need to understand that the market “INNATELY” balances supply and demand over the long-term. For example, the copper mining industry is not going to bring on twice as much copper supply onto the market than the world needs. Furthermore, the copper mining industry only makes a small percentage of profits to build production slowly. Thus, small profit margins actually LIMIT the growth of the copper mining industry.

This is the same for the gold and silver mining industry. While supply and demand play a role in determining price in the short term, it is less of a factor in the long-term. The COST OF PRODUCTION is the leading factor in determining the price of GOLD, SILVER and COPPER.

Now, if you read that, you would understand that the Fed and Central Banks CANNOT push the price of gold and silver (too far) below their cost of production. The only TRICK the Central Banks have, is to CAP the precious metals prices. And the reason they do this, is too make sure that the 99% of the WALKING DEAD keep funneling their funds into stocks, bonds and real estate.

In Spite Of All The Grand Conspiracies… Americans Still Living High On The Hog

I do realize that the American standard of living has declined over the past several decades. While many analysts believe this is due to the ELITE stealing most of the wealth, it has more to do with the Falling EROI – Energy Returned On Investment. The falling EROI is destroying a way of life in the Good ole U.S. of A. However, I continue to see homes and business pop up all over the place. Sure, some areas of the country aren’t doing as well as others, but the restaurants, movie theaters, stores and highways are full of traffic. Americans are busy moving everywhere and nowhere spending credit or money they really don’t have.

Moreover, most Americans live in one of these diverse and classy neighborhoods below:

The majority of Americans live in three bedroom homes with two baths and all the modern appliances and amenities. Actually, a lot of the newer homes have four bedrooms and three baths. Now, in all of these homes are gobs and gobs of furniture, TV’s, appliances and thousands of assorted clothes, books, electronics and all kinds of trinkets and garbage. In addition, inside the garage of these homes, Americans have at least two cars. However, easy finance has allowed some to be more fortunate to have three cars, a boat, RV and several ATV’s.

Sure, the ELITE control more stuff today than ever… but so do AMERICANS. We have more CRAP filling our homes, garages and storage facilities than we did 50 years ago. I mean… who in the hell stored their stuff in a private storage facility 50 years ago?? I would imagine very few. Today, if you don’t have a storage unit… something is definitely wrong with ya. 

Our motto used to be “As American as Baseball and Apple pie.”Now its, “Americans work jobs they hate to buy crap and garbage they don’t need.” Amazing what 50 years can do to a society.

Anyhow, if you think the Americans are the only ones at perfecting the COOKIE-CUTTER Suburban home development, think again. The Chinese have taken it one step further… LOL:

Yes, that is a real picture of suburban housing development in China.Talk about cookie-cutter. You can’t get any more identical than that.Well on the other hand, you will see some blue color mixed in here and there. Some owners decided to stand out from the rest by installing a swimming pool.

Regardless, Americans have more stuff today than ever before. So, things aren’t really all that bad in West’s Greatest Empire when we compare to the poor slobs living in many other third world countries.

Okay, so what does all that have to do with precious metals manipulation?Good question.

You see, the majority of the American’s wealth is tied up into STOCKS, BONDS and REAL ESTATE. Also, these assets are where the Federal, State and Local governments receive the overwhelming majority of their tax revenue. Rapidly falling values in any of the assets listed above is the DEATH KNELL for governments. So, it is in the best interest of the government to make sure Americans remain BRAIN DEAD when it comes to understanding real money such as Gold and Silver.

While many believe this may be a Grand Conspiracy to manipulate Americans, it’s not. Rather, I call what has taken place in the United States, as decades and decades of WINGING IT. That’s correct.Shooting from the hip and growing and expanding our economy without any regard for wisdom, prudence and long-term thought.

For example, those folks who live in a large metropolis like New York City, you have my sympathies. This picture below shows what a construction company had to deal with as it pertains to the massive amount of old underground infrastructure.Many of the water and sewer pipes in big cities are 50-75 years old. Well beyond their life expectancy.

Folks, we are in BIG TROUBLE and most Americans have no idea.Thus, the market intervention by the Fed and Central Banks is to keep this INSANELY COMPLEX world of ours going for another day, week, month or year.Unfortunately, time is running out.Not because the Central Banks are running out of paper to print money, but because the cheap and affordable energy that runs the system…. IS RUNNING OUT.