Tuesday, April 13, 2010

NY Post publshes story exposing gold. silver price suppression

Andrew Maguire, a former Goldman Sachs trader working at the London Bullion Market Association (LBMA), gave an exclusive interview with the NY Post recently in which he claimed that JP Morgan Chase and HSBC have been playing a key role in maintaining the illusory value of the U.S. dollar. The banks do the Federal Reserve's bidding in the precious metals market, acting to keep the prices of gold and silver down to make the Fed's paper dollar look less debauched than it really is. The Post quotes Maguire as saying:
JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer.
According to the Post,
Maguire was scheduled to testify last week before the Commodities Futures Trade Commission, which is looking into the activities of large banks in the metals market, but was knocked off the list at the last moment. So, he went public.
Bill Murphy, chairman of the Gold Antitrust Action Committee (GATA), believes the price of gold today would be around $2300/ounce if the price were allowed to move with inflation. "Maguire believes the price should be even higher given the fear trade that would have sent prices spiking during the financial crisis in 2008-09."

I am one of those who believes the fraud of fractional reserves, fiat paper money, and central banking will not end voluntarily. Notwithstanding Ron Paul's courageous fight against the Fed and his promotion of sound money, there is absolutely no political will to end it. It is the very core of modern politics and the source of enormous profits to the big banks. It will end when it self-destructs, which by its nature it cannot avoid. As Darryl Robert Schoon observes:
When the global economy collapsed in 2008, governments rescued the banks, the very ones responsible for the collapse. This is because without the banks’ debt-based paper money, governments could not spend the vast amounts they do not really have.

Politicians seek power and bankers seek profit and their collusion is responsible for the present crisis. Do not be surprised at the current state of affairs, the motives of the participants are clear and so are the consequences.

These are exceptional times and while we are helpless to prevent what is about to happen, so, too, are bankers and politicians. They have brought this state of affairs upon themselves and for this we should be grateful—for without their demise we would be enslaved forever.

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