Today King World News interviewed the former Special Assistant to the President of the United States for Economic Policy and former member of the U.S. President’s Working Group on Financial Markets. While in the White House, Dr. Philippa “Pippa” Malmgren served as financial market advisor in the White House and functioned as the liaison between the White House and the Federal Reserve.
Dr. Malmgren formerly headed the Global Asset Management business for Bankers Trust in Asia, out of Hong Kong, and was also Chief Currency Strategist for Bankers Trust Company, and former Head of Global Investment Strategy at UBS. Dr. Malmgren was also a senior consultant to Deutsche Bank, and currently advises the largest sovereign wealth funds, hedge funds, and pension funds in the world.
Eric King: “What caused or who caused the crash in gold?”
Dr. Malmgren: “It is true that governments hate it when gold starts going through the roof, especially when they are in the midst of the largest devaluation, currency debasement strategy ever known….
“We have never seen so many large industrialized economies all adopt this strategy simultaneously. So naturally that does make governments nervous.
And I’m not sure it’s such a surprise that some of the biggest banks were heavily short (gold) and putting out notes to the marketplace saying, ‘This (gold) definitely should go down.’ Then there were some very, very large transactions, historically large transactions that happened within about half an hour on that Friday morning.”
Eric King: “When you say ‘large transactions,’ we reported that day the massive 500 ton paper (gold sale) transaction that went through the market in a very short period of time, I think it was about 15 minutes. Nobody sells that way that has any brains. So the manipulation is obvious there, isn’t it?”
Dr. Malmgren: “I can see the point. It’s interesting that everybody has been screaming for an official investigation into this and it looks like that’s not going anywhere. So the bottom line is we will never know.”