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Trilateral Plan to Corner World Gold Market?
Patrick Wood
The
August Review
Thursday, Dec 11, 2008
[Editor's note: members of the  Trilateral
Commission and companies with Commission representation appear
in bold type.]
Since 1973, this writer has made inquiry as to the location and
ownership of the vast stores of monetary gold (400 oz., .999 pure
bars) in the world. There has not been a formal audit on Fort
Knox, for instance, since the Eisenhower administration. Official
statistics on gold holdings are often contradictory. Getting plain
answers from any Central Bank in the world, including
the Fed, is virtually impossible.
This paper points out a pattern of manipulation that
has been clearly observed by many people. However, patterns do
not exist in a vacuum, but rather they are evidence of the existence
of a stable and consistent methodology. Clearly, more study needs
to be done in identifying the finer parts of the methodology and
its designers, but this is a good start!
When Richard Nixon canceled the Bretton
Woods system in 1971, exchangeability of paper dollars for
gold was terminated. In 1970 alone, available gold vs. dollars
outstanding had shrunk from 55 to 22 percent, thus exerting pressure
for investors to switch to gold to avoid further dilution of dollar
assets.
Although the economic and financial experts swore that gold was
an outmoded, ineffective and useless financial asset, cooler heads
knew better. In recent years, these same experts have reversed
field and are now proclaiming that gold is still, and always has
been, a consistent monetary asset. Why the flip-flop?
(ARTICLE CONTINUES BELOW)
The economic chaos in the world today is a direct result of policies
set in motion to foster a New International Economic Order (NIEO).
The NIEO was the explicit creation of the Trilateral Commission,
founded by David Rockefeller and Zbigniew Brzezinski in 1973,
and their early papers and task force reports clearly asserted
their NIEO plans.
Members of the Trilateral Commission were instrumental in creating
the European Union as well. The EU is the prototype of global
governance that will soon exert its influence to reshuffle world
relationships.
Since 1973, Trilateralists have dominated the Executive Branch
of the U.S. government with politicians like Jimmy Carter,
George H. W. Bush, Bill Clinton,
Al Gore and Dick Cheney. This
has led to domination of the world trade mechanisms like the World
Bank and negotiation of free trade agreements.
Six out of eight presidents of the World Bank have been members
of the Commission. Eight out of ten of the U.S. Trade Representatives
(USTR)
have been Commissioners.
Indeed, the Trilateral Commission has had undue influence
and control over the development of globalization, and it
was self-interested at best.
With today's total meltdown in economic and global financial
markets, one must ask, "Are these people just plain stupid?"
The answer has to be "No", considering their great
success at consistently dominating political and economic processes
over a span of thirty-five years.
So what else is going on?
There is mounting evidence that there has been a larger plan
underway to corner the global supply of gold, thus laying the
groundwork for a global currency exclusively controlled by Trilaterals
and their friends. By extension, economic and political mechanisms
would be controlled to the same extent.
From a Trilateral perspective, the Bretton Woods system had two
flaws:
- Gold was rapidly being decentralized into non-Trilateral hands
- It limited the arbitrary creation of paper money to finance
projects launched by Trilateral-related global companies.
(Read Trilaterals Over Washington (Sutton & Wood)
for detailed documentation on this process)
The breakup of Bretton Woods and the resulting opportunities
may have been the principal rationale for the creation of the
Trilateral Commission in the first place.
Since 1973, there has been an overarching plan to quietly centralize
gold into private hands, using incrementally created wealth made
possible by rapidly inflating paper currencies.
This theory must be explored and tested, because if true, it
represents not just the hijacking of America (already thoroughly
demonstrated elsewhere in this writer's papers), but the hijacking
of an entire planet!
In 1976, Antony Sutton wrote,
"The assault on gold today is an integral part of
a planned move into a new economic order under the dominance
of a single country. It was Nazi Germany in the 1940's; it is
the United States in the 1970's. In brief, the war on gold that
we observe today, and discuss below, is dollar imperialism,
designed to maintain the U.S. dollar as the only world currency
without competitors. The purpose is the formation of a world
totalitarian state under Wall Street dominance." (The
War on Gold, Antony C. Sutton, 1976, p. 63)
Sutton's view was limited because he had not yet discovered the
Trilateral framework just created three years earlier in 1973.
We can see now that the totalitarian state is still clearly in
view, but the self-proposed rulers of this new arrangement will
be members of the Trilateral Commission, and their monetary "enforcer"
will be gold.
Bill Murphy is the chairman of the Gold Anti-Trust Action Committee
(GATA), which has asserted for almost 10 years that a concentrated
gold cartel has been manipulating the price of gold. Murphy and
GATA are highly regarded around the world on their work to expose
this cartel.
On September 10, 2008, Murphy made an opening statement at the
2008 Las Vegas Hard Assets Investment Conference, reprinted in
full below. Murphy's perspective and argument does not include
the Trilateral Commission, but the players in his narrative are
largely members or former members of the Commission.
This leads this writer to connect some dots between 1973-1976
and 1998-2008.
In Murphy's comments, note that the famous bullion banks of 2008
include Goldman Sachs, JP Morgan Chase,
Citigroup and Deutsche Bank,
all of which have at least one director or senior official sitting
on the Trilateral Commission. In addition, the players Murphy
names are members of the Commission.
As Sutton did in 1976, to imply a "war on gold" necessitates
an eventual victory, a victor and a loser. It is already painfully
obvious that the citizens of America are the losers: The middle
class is being wiped out and we all hold a debased paper currency
that is headed toward destruction.
The question is, who will the winner be? And what is the victor's
intent over the conquered?
Bill Murphy's Opening Statements
The Gold Anti-Trust Action
Committee’s basic assertion for the past 9 ½ years
is that there is a Gold Cartel out there suppressing the price
of gold. It consists of the US Government, including the Fed
and Treasury, various other central banks, and bullion banks
like Goldman Sachs and JP Morgan Chase.
The motives of “the cabal”
are to give support to the dollar, keep US interest rates lower
than they should be, and to tone down the widely watched US
barometer of US financial market health, that being the gold
price. After all, whenever the price of gold soars, it congers
up talk of too much inflation, a sinking dollar, or a crisis
of some sort … all negative for Wall Street and the incumbent
administration.
Therefore, “Shoot the
Messenger” is The Gold Cartel’s key mission.
The suppression of the price
of gold was the essence of Robert Rubin’s
Strong Dollar Policy. What else did the US do to effect that
policy? Talk? Jawbone?
It seems to have all started
with Robert Rubin…
Before
he was CEO of Goldman Sachs and then US Treasury
Secretary, Robert Rubin worked in London for
Goldman Sachs. One of his duties was to oversee
their gold trading operations. We know this because the CEO
of Kirkland Lake Gold, Brian Hinchcliffe, a staunch GATA supporter,
worked in London back then for Goldman Sachs
and reported directly to Robert Rubin.
This
was many years ago and interest rates in the US were very high,
say from 6 to 12%. Rubin had Goldman
Sachs borrow gold from the central banks to fund their
basic operations. They could do so at about a 1 % interest rate.
This was like FREE money, as long as the price of gold did not
rise to any sustained degree for any length of time.
Soon
other major financial institutions realized what GS was doing
and copied them. Rubin continued these operations
as the Goldman Sachs CEO and then took it to
a new level as US Secretary Treasurer. That is how the gold
price suppression became the lynchpin of his widely acclaimed
“Strong Dollar Policy.” GATA’s Reg Howe caught
on to this notion in a paper titled, “Gibson’s Paradox
and The Gold Standard,” co-authored by Lawrence Summers
in 1988. Summers, a professor at Harvard at the time, succeeded
Rubin as US Treasury Secretary. The bottom line of Summer’s
analysis is that “gold prices in a free market should move
inversely to real interest rates.” Control gold and
it will help to control interest rates.
Bullion banks such as Goldman
and Morgan became The Gold Cartel’s hit
men, trading the gold market from the short side and bombing
the market in coordinated anti-trust fashion at the beck and
call of our government, making a great deal of money in the
process … as you have all witnessed the past couple of
months.
In a brilliant piece a few
weeks ago Ted Butler reported 3 U.S. banks held a short position
of 7,787 contracts (778,700 ounces) of gold in July, and, astonishingly
the same 3 U.S. banks held a short position of 86,398 contracts
(8,639,800 ounces) in August, an eleven-fold increase.
Gold then declined more than $150 per ounce once Secretary Paulson
(note: Paulson is ex-CEO of Goldman Sachs)
gave the order, just as he did in May 2006 when a similar order
was given, according to a US Senator from the state of Washington.
Both times, various bullion banks made vast amounts of money
quickly as the US government facilitated their short positions
by feeding considerable clandestine central bank gold into the
physical market.
It was the concerted, concentrated
action of certain BULLION BANKS, which tipped off GATA what
was going on nearly a decade ago now.
It was this clandestine feeding
of central bank gold into the marketplace which clued GATA into
the gold price suppression scheme. Three GATA consultants, Reg
Howe, Frank Veneroso and James Turk, using independent, sophisticated
methodologies, came to the same conclusion years ago …
that the central banks have far less gold than the 30,000 tonnes
of gold they say they have. The GATA camp research shows they
have less than half that amount in their vaults, the difference
being the amount that has been fed into the physical market
to suppress the price. Since demand for physical gold exceeds
mine and scrap supply by well over than 1,000 tonnes per year,
this central bank gold is vital to prevent the price from exploding.
GATA is not alone in recognizing
the central banks are not accounting for their gold properly.
GATA revealed an IMF
paper which corroborates GATA’s claims that much of the
central bank gold has been double counted and that the central
banks are not properly accounting for the gold no longer in
their possession.
ISSUES PAPER (RESTEG) # 11
TREATMENT OF GOLD SWAPS AND
GOLD DEPOSITS (LOANS)
“14. Regarding the
statistical treatment of gold swaps, its treatment should
be consistent with that of other reverse transactions, as
presented in paragraph 7 above. Thus, swapped gold should
be excluded from both reserve assets and IIP (demonetization).
This is a logical consequence, and overstating of reserve
assets can be avoided. On the other hand, this results in
a decrease in the financial assets of the monetary authorities.”
Gold swaps and gold leasing
are at the heart of the gold price suppression scheme. For example,
the US cannot sell its 8,133.5 tonnes of gold without an Act
of Congress, but they could lease or swap it. In 2006 the President
of the Bundesbank made an astonishing statement for a central
banker: “We have been asked to negotiate with other
central banks’ about potential swap deals involving gold.”
Is this stuff hush hush? I
guess so. in January 1995, the Federal Reserve’s
general counsel, J. Virgil Mattingly, told the Federal Open
Market Committee, according to the committee’s minutes,
that the U.S. Treasury Department’s Exchange Stabilization
Fund had undertaken “gold swaps.” When the GATA camp
had Kentucky Senator Jim Bunning inquire Alan Greenspan
what that was all about, Mattingly came back and said the Fed
testimony was GARBLED … Right…
Recently GATA filed Freedom
of Information Act requests to the Fed and Treasury about US
gold swaps. The Fed redacted 300 pages of information and refused
to send another 400 pages. Now, think about it … if the
US gold is, and has been, just sitting in our vaults, without
a true independent audit since the Eisenhower Administration,
what is their to withhold?
As for GATA’s request
to the Treasury about any Exchange Stabilization Fund
activity into the gold market, they answered in the negative
by referring to the Exchange STABILITY Fund. Can they
be that lame?
Is the gold price manipulated?
You don’t need to read through GATA’s countless evidence
to appreciate what is going on. It is on the public record…
beginning with Alan
Greenspan’s testimony before Congress in 1998:
“Central banks stand
ready to lease gold in increasing quantities should the price
rise” … which is just what they have done!
The Reserve Bank of Australia
confessed to the gold price suppression scheme in its annual
report for 2003. “Foreign currency reserve assets and gold,”
the RBA’s report said, “are held primarily to support
intervention in the foreign exchange market.
Maybe the most brazen admission
of the Western central bank scheme to suppress the gold price
was made by the head of the monetary and economic department
of the Bank for International Settlements, William S. White,
in a speech to a BIS
conference in Basel, Switzerland, in June 2005. There are five
main purposes of central bank cooperation, White announced,
and one of them is “the provision of international credits
and joint efforts to influence asset prices (especially gold
and foreign exchange) in circumstances where this might be thought
useful.”
Barrick Gold, then the largest
gold-mining company in the world, confessed to the gold price
suppression scheme in U.S. District Court in New Orleans on
February 28, 2003. On that date Barrick filed a motion to dismiss
Blanchard & Co.’s anti-trust lawsuit against Barrick
and its bullion banker, JP Morgan Chase, for
rigging the gold market.
Barrick’s motion said
that in borrowing gold from central banks and selling it, the
company had become the agent of the central banks in the gold
market, and, as the agent of the central banks, Barrick should
share their sovereign immunity and be exempt from suit.
Is the gold price manipulated
today? Former Federal Reserve Chairman Paul Volcker
wrote the following in his memoirs:
“Joint intervention in
gold sales to prevent a steep rise in the price of gold (in
the 1970s), however, was not undertaken. That was a mistake.”
…
Robert Rubin
and gang took heed … as are more and more in the mainstream
financial world. Just last week, the highly regarded Don Coxe
of the Bank of Montreal stated the following in an audio presentation
last about recent market action to the bank’s clients:
“The Most Massive Intervention
Of Government Into The Capital Markets, Or The Financial Markets,
Since President Roosevelt Closed The Banks Back In 1933,”
It’s wake up time, finally.
Recently, there has been talk
about the Working Group on Financial Markets (more commonly
known as The Plunge Protection Team), which consists of the
President, Treasury Secretary, and heads of the CFTC and SEC.
Think about it … why are bureaucrats included in meetings
about the markets except to look the other way regarding government
intervention?
To give you an idea just how
pervasive and insidious our markets have become, I bring your
attention to the Counterparty Risk Management Group. Ever hear
of it?
It consists of major players
in the investment banking/hedge fund community in New York,
including Goldman Sachs. Citigroup,
JPMorgan Chase, and Deutsche Bank
(all defendants in GATA’s Reg Howe’s suit against
The Gold Cartel in 2001). There are a number of other
participants such as the famed hedge fund of Paul Tudor Jones.
On July 27, 2005, E.
Gerald Corrigan, former President and CEO of the Federal
Reserve Bank of New York, and now a Managing Director
of Goldman Sachs, wrote:
The Report of the Counterparty
Risk Management
Policy Group II
Addressing it to:
Mr. Henry M. Paulson, Jr.
Chairman and Chief Executive Officer
Goldman, Sachs & Co.
(all roads always lead back
to Goldman Sachs)
He stated; “since we
know that financial disturbances and even financial shocks will
occur in the future, and we know that no approaches to risk
management or official supervision are fail-safe, we also know
that we must preserve and strengthen the institutional arrangements
whereby, at the point of crisis, industry groups and industry
leaders, as well as supervisors, are prepared to work together
in order to serve the larger and shared goal of financial stability.”
This Orwellian shared goal
of financial stability, which began with the serious rigging
of the gold price under Robert Rubin, has led
us to the financial market mess we have today. It is wrong
and must be stopped!
Is the cat out of the bag?
In the 2007 May/June issue of Foreign Affairs, Benn Steil presented
his paper, The
End of National Currency. Steil is Director of International
Economics at the Council on Foreign Relations. In his report,
Steil stated,
"So what about gold? A revived gold standard is out
of the question. In the nineteenth century, governments spent
less than ten percent of national income in a given year. Today,
they routinely spend half or more, and so they would never subordinate
spending to the stringent requirements of sustaining a commodity-based
monetary system. But private gold banks already exist,
allowing account holders to make international payments in the
form of shares in actual gold bars. Although clearly
a niche business at present, gold banking has grown dramatically
in recent years, in tandem with the dollar's decline. A
new gold-based international monetary system surely sounds far-fetched.
But so, in 1900, did a monetary system without gold. Modern
technology makes a revival of gold money, through private gold
banks, possible even without government support."
This is hardly far-fetched. Zbigniew Brzezinski
noted in 1972 that "the nation-state as a fundamental unit
of man's organized life has ceased to be the principal creative
force: International banks and multinational corporations are
acting and planning in terms that are far in advance of the political
concepts of the nation-state."
Cracks in the dam
Noted Romanian economist, Professor Antal Fekete, released a critical
report on December 5, 2008, entitled "Red Alert: Gold Backwardation."
For the first time in history, gold futures sold below spot price
and creates a potential crisis in gold delivery at the end of
December. Fekete states,
"According to the December 3rd Comex delivery report,
there are 11,759 notices to take delivery. This represents 1.1759
million ounces of gold, while the Comex-approved warehouses
hold 2.9 million ounces. Thus 40% of the total amount will have
to be delivered by December 31st. Since not all the
gold in the warehouses is available for delivery, Comex supply
of gold falls far short of the demand at present rates. Futures
markets in gold are breaking down. Paper gold is progressively
being discredited..."
"Gold going to permanent backwardation means that
gold is no longer for sale at any price, whether it is quoted
in dollars, yens, euros, or Swiss francs. The situation is exactly
the same as it has been for years: gold is not for sale at any
price quoted in Zimbabwe currency, however high the quote is.
To put it differently, all offers to sell gold are being withdrawn,
whether it concerns newly mined gold, scrap gold, bullion gold
or coined gold. I dubbed this event that has cast its long shadow
forward for many a year, the last contango in Washington ―
contango being the name for the condition opposite to backwardation
(namely, that of a positive basis), and Washington being the
city where the Paper-mill of the Potomac, the Federal Reserve
Board, is located. This is a tongue-in-cheek way of saying that
the jig in Washington is up. The music has stopped on the players
of ‘musical chairs’. Those who have no gold in hand
are out of luck. They won’t get it now through the regular
channels. If they want it, they will have to go to the black
market."
Conclusion
If Fekete is correct, and he has seldom been wrong, then the
trap is snapping shut on who will own the gold in 2009. Free-market
supplies of gold are drying up, but the price is being kept low
as global institutions sop up whatever crumbs are left.
Several very serious implications can be drawn:
- The massive amounts of gold leased to bullion banks will ultimately
be seized by these same banks as collateral against worthless
paper loans made to the Central Banks.
- Central Banks (including the Federal Reserve) could well be
left to disintegrate in order to give way to a single global
central bank controlled and fueled by the bullion banks who
have Monopoly
control over the world's gold.
- These superbanks are all closely tied to the goals and membership
of the Trilateral Commission, whose members have methodically
carried out a monetary policy designed to bring about this eventuality.
- For all practical intent, individuals will be frozen out
of the gold market at any price.
Indeed, a global totalitarian state may be closer than we think;
as the globalist's golden rule states, "He who has the gold,
makes the rules."
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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