{"id":38808,"date":"2016-05-26T08:52:44","date_gmt":"2016-05-26T12:52:44","guid":{"rendered":"https:\/\/stateofthenation2012.com\/?p=38808"},"modified":"2017-08-07T11:49:02","modified_gmt":"2017-08-07T15:49:02","slug":"an-inside-look-at-the-worlds-biggest-paper-gold-market","status":"publish","type":"post","link":"https:\/\/stateofthenation2012.com\/?p=38808","title":{"rendered":"GOLD Breakout 2016: The Reign of the Almighty Dollar<\/em> is Over"},"content":{"rendered":"

Gold Price: The Single Greatest Determinant of the Upcoming Monetary Breakdown and Currency Collapse<\/strong><\/h2>\n

______________________________________________________________
\nSOTN<\/a> Special Note:<\/strong>
\nSince time immemorial gold has functioned as the universal currency. \u00a0Whatever its value was considered to be by a kingdom or nation effectively functioned as the benchmark against which everything else was valued.<\/p>\n

The price of gold in modern civilization is no different. \u00a0It is\u00a0universally regarded as the barometer of the general\u00a0economic health of the world. \u00a0When the price of gold is high, there is much insecurity in the global marketplace; when the gold price is low, investors have much more confidence in future economic activity.<\/p>\n

Because the US dollar was artificially propped up as the world reserve currency with the post World War 2 Bretton Woods Agreement, the petrodollar in particular began to function as the new benchmark. \u00a0While this unsustainable arrangement guaranteed great prosperity for the USA, maintaining it\u00a0exerted a tremendous amount of pressure on the worldwide system of currency valuation.\u00a0The ever-increasing monetary stresses in the aggregate which resulted have now put the health status of the U.S dollar at great risk.<\/p>\n

Every day that passes throughout 2016 will only see this precarious situation become more fraught with currency volatility and financial instability. \u00a0In fact many of the armed conflict and military maneuverings across the planet are due to this underlying dynamic. The Federal Reserve’s over-reliance on what is basically a dollar printing press\u00a0has significantly cheapened the value of all the greenbacks in existence.<\/p>\n

As more countries decouple their payment systems from the petrodollar and sell their dollar-denominated debt, the FED has resorted to printing even more money out of thin air. \u00a0Other nations,\u00a0particularly those that are\u00a0vulnerable to energy price fluctuations, suffer greatly due to\u00a0this fatally flawed American monetary policy. \u00a0Whenever the FED implements another round of quantitative easing to cure its financial flu, the rest of the world comes down with pneumonia…to the extent that they are married to the petrodollar. Venezuela is a perfect example of a nation not far from ‘respiratory failure’.<\/p>\n

Why Gold Always Goes Up In The Wake Of Quantitative Easing<\/a><\/p>\n

The Bottom Line:
\n<\/u>It is in times like these, when economic instability and financial insecurity abound everywhere, that people and nations alike will reflexively move their money into gold and\u00a0silver. Gold especially is respected as the best hedge against all types of market crashes and economic collapses. \u00a0For this reason the citizens of India, China, Japan and the like have been purchasing gold and silver bullion at unprecedented rates. \u00a0Such buying sprees have exerted even more pressure on the highly manipulated gold and silver markets. \u00a0For these and other important reasons a gold breakout is not “If?” but “When?” … … … in 2016.<\/p>\n

GOLD BREAKOUT 2016: It\u2019s Only A Matter When, Not If<\/a><\/p>\n

The explanations posted below present some essential background on how the world got put into this perilous position—an especially dangerous place for the U.S. economy.<\/p>\n

State of the Nation<\/a>
\nMay 29, 2016<\/p>\n

Reference<\/p>\n

China\u2019s Market-Shaking Gold Strategy Rocks Anglo-American Financial Domination<\/a>
\n______________________________________________________________<\/p>\n

\"220160524_gold_0\"<\/a><\/p>\n

TMR<\/a> Editor’s Note:<\/strong>
\n“Buyer Beware”<\/strong> has never been so important to heed when conducting paper gold transactions. \u00a0Understanding the true history of the whole enterprise is essential. \u00a0As follows:<\/p>\n

Many gold buyers have mistakenly bought paper gold with the understanding that they will be able to convert to bullion upon demand or at some later date. This notion is tantamount to buying fool’s gold. \u00a0Simply put, the physical gold will not be produced, especially if you buy from a London gold dealer.<\/p>\n

The British Empire figured out very early on that whoever controlled the gold supply could effectively control the financial matrix of the entire world. So, they set about the process of doing just that. As an insurance policy against their new ‘Gold Standard’, the Brits also set up the London bullion market as “a wholesale over-the-counter market for the trading of gold and silver”<\/em>. Toward the end of really locking down the entire global gold enterprise, the British marketeers also set up the\u00a0London Bullion Market Association\u00a0<\/b>(LBMA<\/b>).<\/p>\n

Trading is conducted amongst members of the London Bullion Market Association<\/b>(LBMA<\/b>), loosely overseen by the Bank of England<\/a>. Most of the members are major international banks or bullion<\/a> dealers and refiners.
\n(Source: \u00a0London bullion market<\/a>)<\/em><\/p><\/blockquote>\n

The real problems (for the rest of the world) started when the controllers of this market implemented their scheme in such a way that totally controlled much of the physical gold supply, as well as a substantial majority of the gold trades, both physical commodity and paper EFTs. \u00a0Whenever the same party controls this global gold game, it begins to operate as an integrated and horizontal monopoly. \u00a0In so doing the manipulators of the London Bullion Market (LBM) began to take liberties which crossed every line into financial impropriety and economic malfeasance.<\/p>\n

In fact these folks have gone so overboard in their fraudulent trading schemes that it is virtually impossible to track trades or understand how much gold is really available to cover all the bets. \u00a0Were every gold paper holder who has a legitimate claim to his or her gold present that claim for fulfillment, the LBM would close its doors — FOREVER — the very same day. \u00a0Yes, it’s that bad and much worse than anyone can possibly imagine!<\/p>\n

For this and many other reasons the LBM\u00a0quite deliberately lacks any meaningful transparency whatsoever. \u00a0In this manner they are able to maintain the current duplicitous pricing regime which is totally misrepresentative of reality. \u00a0In other words the present process of artificially suppressing the price of gold daily has become an institutionalized racket which the global marketplace knows to be completely fraudulent and illegal.<\/p>\n

The Conspiracy Theorists Were Right: Mega Bank Admits To Rigging Global Gold And Silver Markets<\/a><\/p>\n

Only because the price of gold is so critical to the very foundation of the Global Economic & Financial System (GE&FS), the Brits have been successful is maintaining their ascendant position throughout the world markets, even though their true economic output has fallen considerably with the precipitous decline of their former British Empire.<\/p>\n

However, the day of reckoning is near. \u00a0The world community of nations has shown much less willingness to tolerate such blatant manipulations of the gold market. \u00a0Especially when such flagrant forms financial engineering sustain the hegemony of Anglo-American predatory capitalism has the blowback now become highly consequential. \u00a0The many recent maneuverings of the BRICS economic union, together with their newly created AIIB development bank (Asian Infrastructure Investment Bank), is just one example of how the international order is reforming a new GE&FS.<\/p>\n

The article posted below is just one example of where truthful disclosures about the LBM will eventually create a global mandate to close it, once and for all.<\/p>\n

The Millennium Report
\n<\/a>May 26, 2016<\/p>\n

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~<\/p>\n

An Inside Look at the World’s Biggest Paper Gold Market<\/h1>\n

ZeroHedge.com<\/p>\n

Every day, there are a whopping 5,500 tonnes ($212 billion) of gold traded in London, <\/strong>making it the largest wholesale and over-the-counter (OTC) market for gold in the world.<\/p>\n

To put that in perspective, Visual Capitalist’s Jeff Desjardins notes<\/a> that\u00a0 more gold is traded in London each day than what is stored at Fort Knox (4,176 tonnes). <\/strong>On a higher volume day, amounts closer to total U.S. gold reserves (8,133.5 tonnes) can change hands.<\/p>\n

How is this possible?<\/em><\/strong><\/p>\n

The infographic below tells the story about gold\u2019s foremost trading hub, as well as the paper gold market in London, England:<\/p>\n

<\/a><\/em><\/div>\n
Courtesy of: Visual Capitalist<\/a><\/em><\/div>\n

 <\/p>\n

London is dominant in global price discovery for gold.<\/strong><\/p>\n

In 2015, it accounted for roughly 88% of gold trade \u2013 most of which occurs between banks on behalf of their clients. Further, 90% of London trade is spot trading, which further emphasizes London\u2019s importance in price discovery for gold markets.<\/p>\n

While the high-level details of the market are visible, the individual mechanisms behind the London gold trade are less clear.<\/u><\/strong> There is very little detailed information provided on physical shipments, outstanding gold deposits or loans, allocated or unallocated gold, or clientele types. Trade reporting also breaks down at a more granular level, and datasets on the GOFO (Gold Forward Offered Rate) were also\u00a0discontinued<\/a>\u00a0in January, 2015.<\/em><\/p>\n

Almost all gold (95%) traded in London is unallocated and without legal title.<\/strong> This makes it easier to trade, but it also raises concerns about a market that is opaque to begin with. There are 5,500 tonnes of paper gold exchanging hands on paper each day, but there are only 300 tonnes of gold vaulted in London outside of the reserves for ETFs or the Bank of England.<\/p>\n

What would happen if there was ever even a small rush to get the physical asset behind the paper? Is there a system in place for such an event, and how does it work?<\/em><\/strong><\/p>\n

Original graphic by:\u00a0BullionStar<\/a><\/em><\/p>\n

___
\nhttp:\/\/www.zerohedge.com\/news\/2016-05-24\/inside-look-worlds-biggest-paper-gold-market<\/a><\/p>\n

—
\nhttp:\/\/themillenniumreport.com\/2016\/05\/an-inside-look-at-the-worlds-biggest-paper-gold-market\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Gold Price: The Single Greatest Determinant of the Upcoming Monetary Breakdown and Currency Collapse<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,1],"tags":[],"class_list":["post-38808","post","type-post","status-publish","format-standard","hentry","category-featured-posts","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/38808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38808"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/38808\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}