Against a background that the DOW looked a bit nervous after falling Wednesday 1 Oct –
remembering the plunge in August see chart below – I am sure the PPT are not keen on Octobers – Dow looking toppy –
Here is the overnight gold price in both AU$’s and US$’s
At A just before 3am NY gold gets a little $5 hit – then around 9am NY gold is dumped down near $1190 – by C the PPT have hi-fived and are enjoying a well deserved long lunch –
Currencies are of course in on it too as the AU$ plunges before 8am NY time –
The DOW jumps 150 points on opening – I wonder what buying power that requires –
Very strong correlation between POG in USD and AUD/USD. Is there any logical explanation for this? POG in AUD has not moved very far in % terms therefore minimal impact on Aussie based gold producers despite the sell off in USD. How long can the USD hold up while the printing presses keep churning new dollars into the banking system? Maybe the banks are keeping the dollars to themselves and investing in the sharemarket rather than stimulating the economy as intended? Thanks for the posting.
The name of the game is really all about protecting the hegemony of the FULLY FIAT $US.
All the Trillions of dollars of QE & the dollar is still somewhere around about the “same place”?
The effort in keeping the Gold Price out of the public consciousness has been spectacular & determined. The Fed & bullion banks are playing reverse “pump & dump” shorting games against the “Stop Loss” algorithms :-
www.sprottmoney.com/news/ask-the-expert-dr-paul-craig-roberts-september-2014
It will end one day.
Has anybody got any thoughts on how the sudden “apparent” jump in the relative value of the $ US came about recently? ($C was similar to the $A)
It must be artificial & could it be a mechanism to help domestic US money to cycle out through other currencies & then back into gold after a correction?
I realise there are plenty of “offshore methods” available to the big boys to not really need this under normal circumstances. Perhaps an unusual factor could be around physical gold & its movements.
Some selected quotes from Dr. Paul Craig Roberts – Dr. Paul Craig Roberts is an American economist and a columnist for Creators Syndicate. He served as an assistant Secretary for the Treasury in the Reagan Administration and was noted as co-founder of “Reaganomics
www.sprottmoney.com/news/ask-the-expert-dr-paul-craig-roberts-september-2014
article linked in second comment.
I think that people need to be wary that the dollar could take a hit in foreign exchange markets if Russia and China and India and the BRICs–Brazil, South Africa, if they succeed in organizing their international payments in their own currencies and simply abandon the use of the dollar because that would result in a drop in the demand for dollars in the foreign exchange markets.
So the dollar’s time is about up. But it could continue for several more years.
Yesterday at the UN, this fool in the White House declared Russia as the second greatest enemy of humanity after the Ebola virus.
And the Russians have proved to be amazingly tolerant and unprovocative. And they’ve shown massive restraint. But one never knows when they figure that they just can’t put up with it any longer.
Because the extraordinary rise in gold in the 21st century was a statement that there was no confidence in the dollar.
So they’ve managed to suppress the gold price by all the naked short-selling in the futures markets.
And so, the Fed, in my opinion, I can’t prove it, but in my opinion, the Fed is behind the short-selling on COMEX and London by the bullion banks. And bullion banks make a lot of money out of it.
I keep wondering why Russia or China doesn’t step into the COMEX and buy up every one of the naked shorts that the bullion banks drop into the market and hold them and demand delivery because the bullion banks wouldn’t be able to deliver. They’ll have gold and the whole damn system would come down.
For example, if I was Putin, I wouldn’t be putting up with this fool in the White House. I would call up each major European so-called leader… they’re all American puppets. But I would call up and say “You know what? We’ve made a decision. We’re not going to sell natural gas to members of NATO.” In fact, I would wait another month or two. And this decision is effective in one hour. It would break NATO to pieces.
If Russia and China had any sense, they’d be backing ISIS, the Islamic State. They’d be giving them surface-to-air missiles so they can blow the American planes out of the sky.
When you see that a single U.S. mega bank has derivative exposure in excess of world gross domestic product, there’s no way the bank can cover that. Nobody knows what that situation really is.
So I suspect that what happens will not be anticipated. Whatever the black swan event is will not be seen.
The Russians have enough trouble in Chechnya etc. without encouraging militant Sunnis. They have a huge potential problem in Asia if ISIS gains traction. Besides Assad in Syria is battling ISIS and he’s Russia’s client.
I think they’ll bide their time with Europe until winter comes. The Russians know all about cold winters. They won’t need to cut off any gas flow either**, just push the price up, as they have for the last 5 winters. Hold out favourable treatment for non-NATO members perhaps, or just settle for part of the Ukraine.
** They may cut off the gas flowing through the Ukraine, which will be bad for The Ukraine, and put pressure on Europe with a gas shortage, and for good measure blame The Ukraine (non payment, technical problems in Ukraine etc.).
The EU has enough gas in storage + other suppliers to last the winter. Russia would have to stop all gas supplies for 6 months to really hurt the EU and chances are such a stoppage would hurt Russia more and sooner.