It was bound to happen sooner or later, and now commodities traders - well, some of them anyway - are asking tricky questions about the weirdness of gold's behavior on the "markets" lately. Mr. G.B. sent this one to me, and in the light of this past week and a half's blogs, it's worth sharing, and commenting about:
Markets More: Art Cashin Gold ART CASHIN: Traders Are Talking About A Gold Conspiracy Theory And There's Evidence To Back It Up Read more: http://www.businessinsider.com/art-cashin-gold-backwardation-conspiracy-2013-7#ixzz2axBEpZ00
Now, to begin with, of course there's a gold conspiracy, the real question is, is the outline contained in the above article an adequate delineation of its outlines?
During Secretary Fitts' visit, during the 11 some hours of conversations with her and Dr. de Hart, she mentioned something very significant: material omissions. She pointed out that during the preparation of an investment prospectus, the omission of key information or data can be construed as a material omission, a deliberate or even inadvertent obfuscation of data pertinent to the investor's decision. If deliberate, it could further be considered an inducement to fraud.
With this in mind, let's recall some things I outlined in Covert Wars and Breakaway Civilizations, namely, that the decision taken by President Trumen to create a vast and top secret hidden system of finance, based on Axis plunder, and particularly Japanese Operation Golden Lily bullion (otherwise known as Yamashita's Gold), is precisely one such, and a very significant and huge, and very deliberate material omission, and therewith, an inducement to fraud. And fraud there has certainly been in the system since then.
The point here is very simple: if and until the current conspiracy views among traders includes and incorporates this vast system, the Golden Lily bullion, in their views, then it is at the minimum an inadvertent omission. The consequences are enormous, in terms of the conspiracy as outlined in the article above. As I've noted, the Golden Lily bullion means, probably, that the amounts of gold in existence are badly obfuscated, and may be off by as much as an order of magnitude. In addition, that gold (whatever the amount), was badly obfuscated.The bottom lines? (1) there may be a lot more physical gold in existence than traders think to be true, but (2) that gold has been re-hypothecated so much in the futures-paper market that the data is even more obfuscated. Add to this, the NSA computer tracking ability, and the implied ability to manipulate markets and trades, and one has to wonder how deep the conspiracy rabbit hole in this case goes.
See you on the flip side.