Babylon's Bankers

IT’S THE GOLD AGAIN FOLKS: PART FOUR: THE LONDON FIX

If you've been following my blogs here the past few days, you'll have noticed the following:

  1. The Vatican is being audited (a first), by an accounting firm (Ernst and Young) which is also the auditor for the Bank of International Settlements, and for Lloyd's of London;
  2. The US Federal Reserve system has not been externally audited, and I have predicted there will be calls internationally for precisely such an audit, which will be (surprise surprise) refused;
  3. The suppression of the price of gold has been a constant of US foreign policy since at least 1974 (and probably before), and this has been accomplished by massive gold sales;
  4. These sales might have been accomplished by selling other countries' reserves held in the Fed;
  5. Gold bullion in central banks has been leased over and over in a vast rehypothecation scheme, and the ultimate benefactor of this vast amount of liquidity has been the US black budget;
  6. High speed trading increases liquidity exponentially (another benefit to the military industrial complex);
  7. The Chinese have stopped stockpiling US dollars in their foreign currency  reserves;
  8. Japan and China are at cross purposes over some island rocks in the South China sea, ostensibly over the resources there, but in my opinion really because they would seem to be possibly perfectly positioned for high-speed relay stations requiring great security (and isolation on an island is wonderful security);
  9. The Chinese are perfectly aware that the Fed has deliberately suppressed gold prices to prop up the dollar, and they've about had it (can't blame them, really); and finally,
  10. The U.K.s Royal Mint is planning to issue physical bitcoins with a gold content of five hundred pounds sterling, adding a new twist to the gold-rehypothecation scheme. (Now, there's one thing I didn't mention yesterday about  this particular point, and that is that there have been quiet rumors that a full-scale financial war is on between the UK and USA, or rather, between London and Wall Street, over just who is going to be the financial capital of the world. This could be taken as a signal of that conflict, for gold-coin-backed bitcoin -sans the reservations I expressed yesterday - would be a powerful temptation to people fed up with the financial and military shenanigans of the USA over the past decade.)

Bear these points, and particularly number 10, in mind as you read this:

How the Price of Gold is Manipulated During the London Fix

Isn't that convenient? a nice thing to have laying on the table if one plans to issue gold backed bitcoins if one can manipulate the price of gold to make sure the value of the currency never falls below the prince of the gold content of the coin, sparking a "run" on the coins as people rush to redeem them. Why, with such a tool in hand, one could rehypothecate those coins at very high speeds and really manipulate things... and collect the fees for doing so. As I've observed elsewhere, the net effect of this computer-driven market has been to decouple price from value, creating a virtual market bearing no real connection to productive human value and reality, and such a situation is tailor-made, as the article above points out, to be gamed in any number of ways.

So it boils down, now, once again, to two important factors: (1) trust, and (2) force, and the BRICSA nations and the West are engaged in a race to establish both. The West is losing trust and it seems evidence that there's little that can be done, at least for the immediate future, to restore it. Notably, as the article points out, one important bank involved in the London fix is the HSBC Bank, the Hong-Kong and Shanghai Banking Corporation, a British Bank, but one with deep ties and roots in China... so, watch China's moves now, very carefully.

See you on the flip side...

18 thoughts on “IT’S THE GOLD AGAIN FOLKS: PART FOUR: THE LONDON FIX”

  1. I am reminded that Barclays, HSBC had to along J.P.Morgan had to pay fines their sleazy dealings. Though they all just got a slap on the wrist as for the Royal Of England printing real Bitcoin the Chinese remember the two Opium Wars of the nineteen century which help turn China into a punching bag for the Japanese from 1894 to 1945 I doubt the Chinese will make that mistake again.

  2. Do these magicians of Fiat think they can float this lead balloon and get away with it? I think not!

    I agree with Robert. Bitcoin is the dragon slayer. The founders of this ‘Cryptonite’ will never sit still with allowing this pretentious bunch to steal the fire of the gods.

    They’re all a dollar late, and a dollar way too short.

    1. Yes, most interesting. It’s just the first of many. But remember that Bitcoin – while a tour de force technically – has some limitations, the most important of which is scale. It takes sometimes five hours to process a Bitcoin transaction today. Imagine if a BitCoin was the SDR of choice? The system will have to be substantially rearchitected to take on any additional role. I for one believe that the elite will try to shape BTC rather than destroy it.

      That said, other crypto assets like Litecoin, and Quark Coin, and Peer to Peer Coin, solve many of these problems and they might come to dominate. It’s too early to tell, but the banisters are good at figuring out how to come out on top in any scenario, you have to hand that to them… they are powerful, and they are good at the game. But as Dr. Farrell points out, they are not perfect. And just like its hard to time a market, its hard to time a culture too.

      1. The problem is that the denomiator of the transformation is currently under control of the criminalized central banks’. Bitcoin, then in this instance, becomes a commodity, like gold/silver. So, ironically, fractions are being used to figure Bitcoins’ “value”.

        There/4, I have some fractional reservations about Bitcoin.

    2. Robert,

      Max having been a serious programmer, I’ve seen many fingers pointing to Max as either being: Satoshi Nakamoto, or a member of Satoshi’s scribes that has given the “Little People” this new currency, capable of sailing, unseen, above the current debauched system.

  3. Its a medieval scheme developed in Tibet on steroids, fabricated eternal personal enslavement debt…..smoke and mirrors.

    So much for the theory of spiritual healing for the corrupt sin.

    1. There is much wrong with the global “system”. Changing the concept of money will help. But it’s simply a tourniquet on the cancerous growth of the privatized sequential central banking system; substituting in it’s place, one that works for the peoples’ interest, rather thatn the puppet masters.
      There need to be a reversal of motion, a world viewpoint metamorphosis; an awakening from a deeply imposed slumber.

    1. Interesting… and whatever the Indian bureaucracy tries to invent, I suspect there is a deep awarness in India about the obfuscation of bullion stocks and prices…

  4. I think it’s simply wrong to say the price of gold has been artificially suppressed for US foreign policy since 1974, before then yes.

    There have been predictable massive price swings, gold was trading at something like $800 an ounce in 1980.

    Have various games been played with the price? Of course yes, but that’s normal in trading. So no to points 9 and 2 above.

    China still buy us Tbills.

    That various parties, including China are indeed fed up, pun, with western bankers, yes.

  5. Fundamentally, you have to understand that the Royal Mint’s project to create physical Bitcoins is an attempt to undermine Bitcoin itself and confuse the issue to the benefit of the usual criminals.

    Bitcoin is by definition oa virtual currency–and an encrypted one at that. It’s very rason d’etre is that, if properly handled, it is untraceable.

    Ergo, to create physical Bitcoins is a scam, and a devious way to discredit the very threatening spread of a viable–and above all anonymous–competing currency.

    The Royal Mint’s Bitcoin scam is nothing more or less than an attempt to discredit Bitcoin among those who do not understand either Bitcoin or fiat currencies.

  6. As London tries to save their own skin and cook up some currency scheme with the Chinese at the expense of the US and the dollar, the thought occurred to me the other day that the US will retaliate by cooking up some scheme which will bring Germany back into the US fold and will involve throwing London under the bus… probably the EU bus on behalf of Frankfurt. It will be a lonely, inhospitable world for the English then if the Chinese decide not to get chummy with them.

    I recall reading a Mao Tse Tung biography a long time ago and the one thing that really stuck out was the childhood story about the local park where Mao grew up that was commandeered solely for British colonialists and at the entrance was a sign stating: No dogs or Chinese allowed. I think that stuck in Mao’s claw until the day he died. And the long arm of Chairman Mao may still be pulling levers from beyond the grave. Ultimately, I don’t think London really has anything to offer China other than the currency scheme itself and the liability of having the enmity of the entire planet. I’ m pretty sure the world is in general agreement that they would like to see the British era come to a close and all those arrogant drunks cannibalize themselves in their real life Orwellian state. And when that is over and they become the official laughing stock of Europe and their economy is on par with the likes of Romania or Albania, maybe the world will charitably extend to them some humble pie and allow the English to export nannies and butlers for their nation’s sustenance.

  7. Joseph,

    I’m reminded as a read this of the analysis you performed on the behavior of that Most Serene of Republics, Venice. Gold Bitcoin seems like a great tool to manipulate Bitcoin, as well as gold, and to allow the banisters to manipulate the spread between the two asset classes, much as Venice manipulated the spread between Gold and Silver. Now that the Banksters are likely in the Cryptomining industry, and tiring these two assets classes together, it looks a a lot like late 15th century Virtual Venice.

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