International Forecaster Weekly

Gold Suppression Job One At The Fed

no surprises in the market, gold rampage, yen strengthening, what to do with worthless paper, Bush remains in denial about the Economy, What Ted Kennedy told Obama

Bob Chapman | May 10, 2008

Gold goes up, and the stock markets come down.  At the risk of sounding like Jim Nabors' character, USMC Private Gomer Pyle, we comment on this latest development by exclaiming: "Surprise, surprise, surprise! Shazam!"  Yes, that severe case of yellow fever that the stock markets don't seem to be able to shake is back with a vengeance as super-yen keeps jumping out of the Japanese bankers' closets to fight against truth, justice and the American way by creating a carry trade liquidity drain to force liquidations of metals positions held mainly by large specs many of which have yet to wean themselves off of their carry trade crack addictions, although we might add that those protective derivatives we have been recommending for almost a year now must be helping.

 On Friday gold went on a rampage, got slammed by the cartel and then slammed the cartel back.  Gold rocketed $20 per ounce from Thursday's close of $869.60 to reach as high as $889.50, which gave the cartel a collective myocardial infarction, so the cartel struck back, driving gold down almost $19 per ounce to about $870.95.  Then gold came roaring back to close up almost $14 per ounce from its low, finishing at $884.50.  This means that the negative impact of the liquidity drain caused by the yen-hit was completely undone as gold reversed the would-be destruction leveled at it by the cartel, gaining back almost everything that the original cartel onslaught had taken away.  There's nothing like having yen longs against the dollar and the euro and stock index puts to reverse the intended damage to carry trade liquidity which the cartel tried to wreak this week.

    Note that last week Friday, at 2:05 PM EDT, the yen stood at 105.711 yen per dollar and 162.915 yen per euro, while on that day the Dow finished at 13,058.20 and gold closed at 856.35.  So now this week gold starts to push upward, reaching as high as $889.50 on Friday, and closing up $33 per ounce from last week's close on its quest to push past $900 again.  As a result, the cartel goes into panic mode and asks their evil toadies in Japan to call on super-yen for another performance.  The result:      By Friday the yen strengthens to 102.886 yen per dollar and to 159.203 yen per euro as of 2:45 PM EDT, as the Dow gets leveled down to 12,745.88.  So the cartel cashed in on 312 Dow points of market-crashing power, only to have gold gain $33 per ounce while silver temporarily cleared 17 again.  The Illuminati must be really glad that they destroyed the stock markets for nothing, and have in fact helped gold's cause by enhancing its value as a safe-haven.   

So much for yen manipulations.  After super-yen went up, up and away, so did gold, while the stock markets went down in flames!  It doesn't get any better than that!  Super-yen has just been exposed to kryptonite, aka protective derivatives, making it powerless against gold.  The yen-hits have become little more than a nuisance to gold as the US economy crashes and burns and gold becomes the safe-haven of choice over treasuries which are denominated in a doomed fiat currency known as the dollar.

    If the American public wants oil prices to come down, the easiest solution is simply to buy gold and silver by the truckload.  Wait until you see how far the cartel can drive oil prices down when gold blows past 1000 on its way to 2000!  Forget energy alternatives, which will take years to implement.  Just exchange some of your "worthless paper" for the only real money and we absolutely guarantee that oil prices will drop like a rock no matter how much OPEC yells and screams.  Then OPEC will imminently threaten to break their dollar pegs and all hell will break loose unless the Fed strengthens the dollar and purges the economy.  And if the Fed does not support the dollar, hyperinflation and double-digit rates of return will immediately destroy the US economy as the dollar pegs are broken.  The economy is going to get destroyed anyway, so for the public, the sooner that occurs the better, because the longer this charade goes on, the deeper our fall will be.  And if we wait too long, a major depression far worse than any economic debacle in our entire history is assured, a depression that will make the Great Depression of the 1930's look like the Roaring 20's.  You can force the issue if you support gold and silver.  Yet the misinformed US public knows nothing about gold as money nor does it understand gold's interrelationship with oil.  They are going to perish for their lack of knowledge, to use a biblical statement about what happens when people stop following God's plan because they don't read or understand their bibles.  Always remember, gold suppression is JOB ONE at the Fed.  The only difference between 1980 and today is that Paul Volcker stated in his memoirs that his only mistake in purging the US economy was his failure to cap the price of gold.  Gold went from $35 per ounce just before Nixon took us completely off the gold standard in 1971, and soared to $850 per ounce in 1980.  For gold to equal that feat in the current decade, gold would have to go from $252 to $6,120, which is where Shadowstats statistics indicate it would have to go to make up for actual, as opposed to official, inflation.  That is why you see this continual gold suppression via central bank gold sales and leasing and the destruction of resource stocks by use of naked shorts, all courtesy of the PPT, which did not exist in 1980.     

Paul Volcker's statement is the cartel's version of "never again."  They want to destroy your capital and discourage you from acquiring any precious metals and commodities so they can swoop in and buy them up at bargain basement prices just before they bail out at the top of the stock market using dark pools of liquidity unseen by the public and then use the proceeds to drive up precious metals, commodities and their related shares which they have loaded up on in the interim after beggaring everyone else.  You must not let them do this to you, so load up now on gold, silver and their related shares, which will cause a huge short squeeze on the cartel, or you may as well just roll over and die and let the cartel have their way.  It's time to take a stand!

    We were rather amused to hear that Senator Ted Kennedy recommended to Senator Barack Obama that he not take on the Queen B, Senator Hillary Clinton, as his Vice Presidential running mate.  First, he knows that Bush and Clinton were in on the JFK, Jr. hit (anyone who believes that JFK, Jr.'s death from a plane crash was an accident is incredibly naive beyond all belief), which took place while Slick Willie Clinton was President and Clinton's buddy, Caligula, was about to run for president, hence making JFK, Jr. a threat to the Bush-Clinton dynasties and crime families.

     Having Hillary as a running mate is like begging for an assassin's bullet, especially considering the scores of dead bodies and the swath of destruction which she and hubby Bill have left in their wake during their notorious political careers that have been rife with corruption and the brown-nosing of elitists like David Rockefeller, who is Hillary's slave-master.  Richard Nixon was wise enough to know that when Spiro Agnew was taken out by the Illuminati to make way for Nelson Rockefeller to become Vice President after Mr. S&M (Rocky) had pushed through a constitutional amendment to allow that to happen, it was the functional equivalent of committing suicide.  Nixon wisely chose Gerald Ford instead to be his Vice President, which infuriated Mr. Whips and Leather (Rocky).  When Nixon was taken down with the promise of a pardon, quite possibly by the Illuminati to again pave the way for Rockefeller to become Vice President, Gerald Ford, who then became President, apparently lacked Nixon's savvy and blithely appointed Mr. I Love Bondage (Rocky) as his Vice President pursuant to his instructions from the Illuminati, oblivious to the mortal danger this put him in.  Hence the two or more assassination attempts that were made on Ford's life by would-be female assassins (and some say by poison in yet another attempt) in order to propel the King of Perverts (Rocky) into the Oval Office.

      We can just hear God laughing as both pathetic assassination attempts were foiled and the King of Perverts was nixed from becoming President and leading us into WWIII complete with nukes and other weapons of mass destruction.  The Prince of Darkness (Rocky) was assassinated in full S&M regalia in the presence of his mistress in 1979, probably for screwing a drug lord out of multiple millions of dollars.  To hide the embarrassment, the controlled press were stifled and in a very unusual move for the funeral of someone of high political standing and notoriety, a closed casket service was held to keep the wounds from the assassination hidden.  Just a little trivia we thought you might enjoy.  We can only hope that brother David soon joins him in the darkest depths of Hell.

    Our economy over the past two decades has been systematically destroyed by free trade, globalization off-shoring, outsourcing and illegal immigration.  The three pillars of the cover-up that has been implemented by the Illuminati to keep the American public from finding out that their economy has been destroyed right under their noses are a strong dollar backed by cheap oil, an endless supply of money and credit and profligate consumer spending propelled by successive asset bubbles and bogus economic statistics.  The party is now over and their nefarious deeds are being unveiled as we speak.  We have an incredibly weak dollar backed by incredibly expensive oil with OPEC dollar pegs about to blow.  The credit-crunch has stopped the supply of money and credit from making its way outside of the banking system as reserves are hoarded due to a complete lack of confidence in the system and in its largely insolvent participants.  Consumer spending is dropping into the tank as the last in a succession of asset bubbles start to burst, those being the real estate bubble and the "financial engineering" product bubble (i.e. the derivatives alphabet soup containing toxic waste such as CDO's, MBS's, ABS's, SIV's, CDS's and IRS's), and as fewer and fewer believe the whopping statistical lies produced by the reprobates and sociopaths in our government.  Thus, all the pillars for the cover up have imploded and have revealed to one and all that the totally buck naked king really is not wearing any clothes despite endless Illuminist assertions to the contrary.  The Illuminati are in real trouble that has gone way beyond what they had intended due to the bungling of their neocon henchmen.  This has spiraled way beyond their control and they know it.     

 Rome is burning and the barbarians have broken through the Praetorian Guard at the palace gates as Caligula remains in denial.  They have unknowingly placed themselves in mortal danger and they will be lucky to survive the anger and devastation, which we see on the horizon when everyone figures out what they have done to us.  We will provide names, addresses and phone numbers for all of the most reprehensible of these criminals so that when the time comes you can be sure to thank them appropriately for all the death, destruction, famine and misery they will have caused you.