What's with gold? The Bigger Picture - - -
The titular price of gold dropped about $84 dollars on Friday, April 12, 2013 in an obviously unprecedented manner. Yet, at the same time, ABN AMRO, one of the largest banks in Europe, failed to deliver the PHYSICAL gold it had contracted to deliver and defaulted, Venezuela, Germany, and apparently the Netherlands are repatriating their gold from the U.S. Fed -- and the U.S. Mint has periodically suspended sales of precious coins because of a lack of metal to cast them with.
SOMETHING is going on. Maybe it's just a normal trashing of the gold price by the government-banking axis, but to an extreme degree.
The question is, "Why NOW?"
Hopefully the answer is, "Because we've been trying to do this to protect our Keynesian zero-real-interest-rates against gold ever since it hit $1900/oz and threatened them -- and just NOW all the factors were finally right." Former U.S. Assistant Secretary of the Treasury Paul Craig Roberts thinks this is the case.
That's most likely.
BUT if the answer is, "We see a serious ripple in the fiat force, and we're trying to head the disaster off at the pass," they may be right. Worse, their blatantly obvious action against gold may precipitate the very disaster they fear and perhaps are even semi-aware of from history.
In that case, here's what that would likely look like - - - My Blog Former U.S. Under Secretary of Treasury Paul Craig Roberts explains what the bankster-government axis may be worried about.
According to veteran metals trader Andrew McGuire, the western banking-government amalgam, spearheaded as usual by Bankster Goldman Sachs, dumped more than an unheard of 500 tons of PAPER gold on the market late last week. And pimped, cajoled, and forced other weak hands to play along.
What's paper have to do with it? "Paper gold" merely means it was promises to deliver gold, not gold itself. Which is what makes the failure of ABN AMRO to deliver promised gold very interesting indeed.
It's directly analagous to the beginning of an old fashioned run on a bank where the bank was unable to redeem its "Redeemable in Gold on Demand" dollars -- the only Constitutional kind -- because they'd printed those redeemable I.O.U.s for more gold than they actually had. If anyone else had done that, it would be called "counterfeiting."
And because the banks are so interconnected, this isn't just a run on ABN AMRO.
AND maybe the repatriation movement, besides being interesting, is the straw that lit the fuse as Venezuela, Gremany, probably Holland, and perhaps some other countries are repatriating their gold which has been theoretically stored in the valuts beneath the Federal Resreve Bank of New York -- made famous in Die Hard With a Vengeance, the third in the series.
History? That was when France, a few other countries, and most importantly, the markets, called Uncle Scam's Bretton-Woods "London Gold Pool" paper-gold bluff by taking delivery of actual physical gold from the U.S. and its other eight dragooned central banks. In stupidly trying to again raise the market bet and cap the price of gold, Uncle airlifted a bunch of gold to London, ultimately collapsing the floor of one storage vault. But that was all to no avail. Being caught with its counterfeit shorts down, finally, on August 15, 1971, with Executive Order 11615, Nixon "closed the gold window," thus abrogating the international convertibility of the U.S. dollar to gold and finalizing the biggest default in history. So far.
P.S. As of April 14, 2013, 22:57, it looks like Goldman et.al. are still working the plan. Be interesting to see just how far they can go before the markets once again slap them upside the head.