Manipulation

On Tuesday after the close, the CFTC announced that Merrill Lynch Commodities (MLCI), a global commodities trading business, agreed to pay $25 million to resolve the government’s investigation into a multi-year scheme by MLCI precious metals traders to mislead the market for precious metals futures contracts traded on the COMEX.

“Shanghai Gold will change the current gold market with its ‘consumed in the East but priced in the West’ arrangement. When China has the right to speak in the international gold market, the true price of gold will be revealed.” – Xu Luode, Chairman, Shanghai Gold Exchange, 15 May 2014

My last article on the end of sanctuarization of the Banque de France’s gold grabbed a lot of attention. However, this news hasn’t made it to the main stream media. So let’s get back to this important issue.

We are now at the end of an era which has created unreal wealth for a few and massive debt for most of the world. As all the bubble markets in stocks, bonds, property and other financial assets implode, together with the debt that has fuelled it all, 100s of trillions of dollars will just vanish and never return.

We are now in the very final stages of the most remarkable era of alchemy in the history of finance. This cycle started in 1913 with the creation of the Fed and had its death knell in 1971 when Nixon took away the gold backing of the dollar. It has been a long and slow 50 year death of the world economy and the patient has only been kept alive due to the creation of fake money, fake assets, fake (paper) gold, fake wealth, fake valuations, fake balance sheets, fake bankers, fake politicians all built on a colossal mountain of fake debt.

We have had a hundred years of excesses in the world and artificial wealth creation. Now, in the coming years, we will have a very long period of the opposite. Wealth will disappear. Gold will break free from LBMA Casino, leading to much higher gold price.

In this interview, Max Keiser and Egon von Greyerz discuss gold and several hot topics that will have major influence on the world economy in coming years.

The risk of holding cash or gold in a bank is increasing continuously. Later on I discuss the difficulties bank clients encounter in taking money or gold out of their bank.

John Edmonds, 36, pleaded guilty to one count of commodities fraud and one count of conspiracy to commit wire fraud, price manipulation and spoofing.

100 years of financial mismanagement has not finished the 5,000 year track record of gold as the only money which has survived in history. The next 4 to 8 years will prove that again.