Former US Treasury Official – Fed Orchestrated Gold Plunge

Today a former US Treasury Official told King World News that the U.S. Federal Reserve orchestrated Thursday’s massive gold plunge which shocked market participants.  Dr. Paul Craig Roberts also warned that we are on a path which will send the U.S. into “total chaos.”  Below is what Dr. Roberts had to say in this powerful interview.

Eric King:  “We had the Fed out with two straight days of propaganda and that was followed up by a smash in gold and silver.”

Dr. Roberts:  “Yes, that’s true.  It shows how irrational markets are.  In fact, there was nothing new in the Fed’s statement.  The markets have known for a long time that at some point the Fed is to taper down its bond purchases and eventually stop them.

So the lack of any real information in the statement makes the market reaction seem puzzling.  And it actually suggests that the too-big-to-fail banks had inside information, the Fed’s statement, and used it to short the stock, bond and gold markets….

“They (banks with inside information) cleaned up on this Fed statement.  It’s entirely possible that’s what the Federal Reserve is doing is orchestrating events that make huge profits for the banks, and that this is the way it recapitalizes them.”

Eric King:  “What were your thoughts on the gold and silver smash?”

Dr. Roberts:  “Well, it’s clearly intended to drive down the price because they always pick the most unlikely time that anybody who wanted to unload a position for best price would never pick (to sell).  They pick a time when unloading a position like that is guaranteed to drive the price down the most.

That’s the giveaway that they are trying to drive it down.  The other giveaway is the amounts that are suddenly unloaded at one time.  No real investor would unload any position in that way.  So these are obviously orchestrations (by the Fed) and that is the intent (to manipulate gold and silver lower).


Stunning Volume On Gold & Silver Smash In Suspect Trading

Today one of the savviest and well connected hedge fund managers in the world spoke with King World News about the smash in the gold and silver markets and what to expect going forward.  Outspoken Hong Kong hedge fund manager William Kaye also discussed the stunning volume in the gold and silver markets, as well as the suspect nature of the trading, and the propaganda coming out of the U.S. Federal Reserve.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in his tremendous interview.

Eric King:  “We are in the midst of a massive gold and silver plunge here, Bill.  What are your thoughts on the action we are seeing?”

Kaye:  “It’s the end game of a fantastic manipulation of the markets.  I’m looking at my screen now as we talk, Eric.  I’m in L.A. (Los Angeles), but we are still in Asian (trading) time with London just coming in at the moment, and we’ve traded over 94,000 contracts.

So passing the baton to London we will have already traded 100,000 contracts.  A normal night (during Asian trading) would be 20,000, to put that in perspective.  So the question is, who is selling all of these contracts at levels that are multi-year lows?  Who’s so keen to sell?….

“And if you need to sell, why are you selling at the worst time of day?  Why are you selling in Asian time, which is always the thinnest section of trading?  Why don’t you wait for London and Chicago to take over?

And the answer is very obvious:  These markets are clearly and blatantly being manipulated.  The people doing it have clear price objectives.  My guess is they want to see a print below $1,300 (on gold) before they are done.  That will allow people (trading for the bullion banks) to make profits on their shorts.

The bullion banks, from the Commitment of Traders Reports that we’ve seen plus other information that we’ve gathered, strongly indicates that the banks, which are the  centerpiece of this conspiracy, have shifted rapidly from being on the edge of default, as ABN AMRO has already done, to being net long, and in some cases being very net long.

So they (bullion banks) have taken the opportunity that’s been provided by the cover from what would appear to be official intervention, in what I suspect is the Fed and possibly the ECB, to take the other side of that trade.  Now they are extremely net long and that sets the stage, in addition to a very promising technical picture, for a very powerful rally as we look at next week, into July and beyond.


Fed To Dump Its Balance Sheet Onto Unsuspecting Public

On the heels of the Fed decision, today 40-year veteran, Robert Fitzwilson, put together another extraordinary piece. Fitzwilson, who is founder of The Portola Group, discussed what the Fed and central planners are facing and how the Fed will buy time and dump its balance sheet onto an unsuspecting public.

Below is Fitzwilson’s exclusive piece for KWN:

Fitzwilson: “It is popular to claim that there is no exit strategy for the U.S. Federal Reserve and Chairman Bernanke. But in reality it is always a long shot to assume that the Fed is out of options.

We agree with those who suggest a reaffirmation of the criteria for triggering “tapering” to begin. The criteria will tie the action and the magnitude of the tapering to employment, general economic conditions, interest rates and inflation. That said, we would not be surprised to see another announcement about a perfectly plausible path to an exit for the Fed….

“Since the 2008 meltdown, the Fed purchased many financial instruments including mortgage-backed securities to arrive at the current $4 trillion balance sheet. It seems to us that the cornerstone of an exit strategy would be to securitize the mortgage-backed securities, and sell those back into the retirement and endowment funds.