by John Rubino
Excerpted from Jay Taylor’s Gold & Energy Stocks Newsletter:
Gold rocketed to nearly $1,365 on Wednesday in New York, which is well above the $1,350 that Michael Oliver suggests is when technical price watchers will finally start to head into the yellow metal and related investments like gold stocks. But alas the banking cartel had other ideas and exercised a 100-tonne “pretend gold” smackdown in the gold paper futures markets starting at about noon that day, just to make sure the greatest competition in the world to the dollar didn’t start to lead to a loss of confidence.
This of course is nothing new. The Gold Anti Trust Action Committee (GATA) has been documenting paper market manipulation of the gold markets now for decades. Isn’t it interesting that more virtual gold trades in one day on the LBMA than is mined in an entire year. Whatever it takes, including endless wars to try to keep the petrodollar alive and trillions of dollars spent on blood and treasury. I truly believe Eisenhower’s fears of the endless power of the Military Industrial Complex are now playing out. It should be eminently clear now that “the President is not really the President of the United States.” That was established by the “Deep State” under Kennedy. If you have doubts about that, you might do well to read “Unlike Trump, Kennedy never bent a knee,” by Jacob G. Hornberger, the founder of The Future of Freedom Foundation and a former trial attorney in Texas.
While another war or two might buy a bit more time for the Anglo-American Empire, it should also be very clear that the U.S. military, like the U.S. budget, is out of control with no one specifically in charge. What it is instead is an amorphous powerful monster that needs more lands to conquer to justify more military spending that in turn will continue to keep massive parasitic bureaucracies ever expanding so that hundreds of thousands of Americans can continue living a splendid lifestyle while Americans who produce things of value find their living standards ever in decline.
If you are not questioning the legitimacy of the war just started this evening by the Neocons who run America you should be. Stop to ask yourself why for a second year in a row the Syrian leader would implement a gas attack on his own people a mere week after Trump said he would pull troops out of Syria, if the result of that would be to have bombs rain down on his country. Also ask yourself why the U.S. refused to let an impartial country like Norway do an independent investigation into who actually was responsible for the recent gas attack. In fact, like the weapons of mass destruction that dragged us into Iraq, there never has been any proof of last year’s gas attack or this most recent one.
This may very well lead us into a hot war with Russia, a nuclear power. That is unthinkable but then who said the Military Industrial Complex, like a cornered animal being threatened by death, is doing much thinking? As I say, America is an empire that is out of control. Nothing but the hand of God will stop the enormous evil we are inflicting on country after country, rendering nations into death and poverty wherever we go.
Trump couldn’t keep his campaign promises because the President is not the President. Kennedy tried to be. He never had time to realize he wasn’t the President, but the rest of us should have begun to understand that long ago, rather than quietly accepting the Warren Report, which I think had no more credibility than all other manner of CIA reporting that serves the out-of-control Imperial State monster whose heart resides in Washington.
What does this have to do with the gold markets and gold shares? I would submit to you it has a great deal to do with it. The one currency that would put all nations on an even playing field would be gold. A gold standard would mean the U.S. would have to earn its way to wealth rather than print money to pay for endless wars, death, and destruction. Nixon took us off the international gold standard in 1971 for that very reason, which enabled banks and financial institutions to get rich by impoverishing Americans with debt and job losses funded by bankers who have access to printing-press money. It also made it possible for America to fund endless wars with debt. But to keep the dollar viable, its leading competitor had to be held at bay. Hence smackdowns like the one this past Wednesday.
But the Russians and Chinese and a host of other countries are sick and tired of being told they have to use dollars for trade when doing so helps fund the U.S. that is outright hostile to those nations and seeks their overthrow. Led by the massive wealth gained by China over the years, financial institutions and a currency backed by gold appear to be well underway so that they can compete with the immoral monetary system the U.S. set up on August 15, 1971.
Now this gets directly to the issue of gold. Watch very carefully when in a week or so the first petro yuan contract comes due on the Shanghai Exchange. You know that countries that sell their oil to China will have to get paid in yuan. If they are a bit shaky on accepting yuan, they can hedge against yuan by taking delivery of gold (not paper delivery but real gold) on the Shanghai Gold Exchange, which, unlike the LBMA in London, is an honest, physical gold market. So while American economists with PhD’s in economics thumb their noses at gold as money and worship Keynesian lies that suggest nations can get rich by printing endless amounts of money no matter how far into debt and insolvency that takes them, the Russians (who are largely debt free) and the Chinese (not to mention the Iranians and other nations of Asia) are building up their gold reserves for the day when the U.S. self destructs, financially or otherwise.
As an American I don’t wish for that because when that happens there will be untold pain in our country. But clearly, the stage has been set. The bombing of Damascus by Trump today may be the start of an unfathomable war that he had little chance of avoiding given the obvious control of our government by the Deep State.
I believe we are on the cusp of a major breakout in the price of gold. It is taking more and more paper gold to hold it down and if/when those who buy paper gold, thinking that will protect them as well as the real thing, find out that isn’t true we may see a run on physical gold that could send the yellow metal to prices undreamed of by the most bullish of gold bulls. [Technician Michael Oliver]’s initial target once we get through $1,350 at the end of this month or a month in the near future is $1,700. By that time, it’s hard to imagine that there won’t be quite a number of people trading in their marijuana and cryptocurrencies for gold and gold mining shares.