Today whistleblower Andrew Maguire warned King World News that the massive flight of gold out of the LBMA “has now become a major threat to the Western central banking system.” Maguire, who recently appeared in the CBC production “The Secret World of Gold,” takes KWN readers around the world on a trip down the rabbit hole once again in part two of a series of extraordinary written interviews that will be released today.
Maguire: “The question that keeps coming up to me is how long can this paper market selling continue? How can it continue to drive price when at the same time we are actually seeing such a massive transfer of physical underway into the Eastern trading blocs?
This recent heavily margined forced capitulation was absolutely Fed-induced. And the only short-term goal of this was bailing out the defaulting bullion banks. If you remember, we talked about this back in April after ABN AMRO exposed the whole LBMA system to a probable default. This was a (major) crack in the system….
“The result of this official intervention: There’s a tradeoff involved here because it’s tipped the balance and irreversibly broken the relationship between the paper markets and the global physical markets now.
The majority of all traded volumes are actually paper gold in the far less transparent over-the-counter foreign exchange markets. People believe it (the manipulation) is all happening on the COMEX, but it’s not. This (over-the-counter trading) is actually much more of a tool for the Fed and the Bank for International Settlements (BIS) than directly intervening in the COMEX.