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…Recently, JS [Jim Sinclair] stated that an organized disinformation plan 
has begun, complete with a swarm of posters on all credible Gold sites, but how about the “former Treasury official” who is posting through King World News, right under Jim’s nose? This guy looks like disinformation central because he writes a lot of things to push a lot of buttons, but what he says doesn’t fit into any kind of cohesive picture. Let’s take a look at some things he has said in his 2-part interview on King World News….
So writes Goldrunner (www.goldrunnerfractalanalysis.com) in edited excerpts from his latest note to subscribers* which is posted here with his kind permission. Go here to subscribe to his unique analyses with one-of-a-kind charting.
This post is presented compliments of www.munKNEE.com (Your Key to Making Money!) and the Intelligence Report newsletter (It’s free – sign up here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Goldrunner goes on to say in further edited excerpts:
Below are snippets from the former Treasury official (FTO) (Former Assistant of the US Treasury, Dr. Paul Craig Roberts) [the full interviews can be heard here and here] with my comments in blue:
Strangely enough, this guy is “selling deflation” as he defends the Fed while the stock markets are being run back to the highs as my fractal work suggested at this point in the cycle. That is a major irony!
PART I- FED DESPERATE TO SAVE SYSTEM
~“The manipulation of the bullion market is illegal, but as government is doing it the law will not be enforced. It is an act of desperation……….
~ The fact that the Federal Reserve is short selling bullion means that there is something desperate going on, and I assume it’s related to the US dollar.
~ If the dollar drops sharply in exchange value the Fed can’t control the interest rate and the bond price and so all of the bubbles would blow up………
~ Countries moving away from the dollar to settle their international payments has most likely caused a great many countries to look at getting out of dollars……..
~ A drop in demand for dollars when the Fed is creating one trillion new dollars every year means the exchange value of the US dollar is untenable.
~ The first move out of the dollar is into gold. In fact is this has been going on since the beginning of the 21st century but the Fed doesn’t want that because if the price of gold rises too rapidly in terms of dollars it scares everyone.
~ If you had a sharp movement out of dollars you would in fact see a sharp fall in the exchange value. At that point the Fed has lost control and the whole scheme blows up. So that is what the situation is.
~ [The Fed] is desperate. They are having to drive down the obvious alternative to the dollar, which is gold, in order to affect the psychology of people throughout the world.”
The FTO is really saying that:
~ “the Fed’s SCHEME is to print to devalue the debt, but Gold cannot be allowed to run into free-rise at this time until the proper point in the cycle.
~ the Gold price is being “managed” via paper gold.
~ the Fed is desperate, (but that is only to publicly to defend the Fed against the potential blow-back).
~ the Fed “must affect (control) the psychology of the people……….
He is doing his best for the Fed in this writing, IMO. FTO cites the poor supply/ demand for the US Dollar, but then he relates the “false pricing system”, the Dollar Index, only to Gold – where the Dollar Index is created as a ratio to the other paper currencies in the baskets.
In reality, the FTO’s writing screams “deflation”- exactly what the Fed wants to scare the markets since their real scheme to “protect the Dollar Index is via the false pricing Dollar Index” where other countries must also aggressively print their paper currencies. Worries of deflation in the other countries will create this. The Fed is really in full control via paper everything, and they are now selling “deflation” right on time.
Don’t forget that [Martin] Armstrong has always maintained that there is “no Gold management via paper gold.” I don’t think there is really any doubt at this time that both FTO and MA are apologists/ shills for the Fed.
FTO goes on to say:
~ “Now I don’t think this attack on gold on the part of the Fed can last much longer……..It is designed to break up the sentiment among Americans and gold bugs; to scare them; to stop the flow of money from ordinary citizens into gold……
~ The last couple of days there has been an amazing amount of selling on the part of the Fed. It’s paper shorts, not actual people selling bullion. They are trying to bust up the momentum in gold so they can hold on to their low interest rates, high bond prices, and continue printing money.
~If the Fed can’t print money they can’t finance the federal budget deficit. Printing money is also how the Fed buys the bonds to drive up the derivative debt-related instruments on the banks’ books. It makes the banks look solvent.”
What the FTO is really saying is that:
~ the Fed does not want ordinary citizens in Gold
~ they have to manage Gold via paper gold to continue to print.
~ Oh, the poor poor Fed!…Suddenly, near the END of the long sideways movement [in Gold] that the Fed created via selling paper gold, the FTO apologist enters the public scene.
~ Suddenly at the same time, the concept of bank deposits being stolen comes in a wave world-wide, flushing cash out of savings accounts with few places to go, except to be flushed into general stocks where people are more comfortable – right about the time when the DJIA is due to reverse sharply to the downside.
~ Do the Fed banks need people to sell to? You bet. The Fed’s derivatives have done their job world-wide. Cypress screamed at Europe, “Cut a deal to allow the former GS people to print aggressively, or we will steal your assets!”
~ There is the protection for the USD Index [with] Europe aggressively printing along with the Fed.
~ How about China? China just smiles and continues to buy Gold, metals of all types, and huge chunks of Precious and non-precious mining companies. Maybe we should do the same, eh?
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PART II- THE FED IS FACING A WIPE-OUT
The FTO continues:
~ (Stealing bank deposits)…is an alternative when the Fed can’t do QE. When the dollar starts declining or collapses, and they keep printing, it will drive it down even faster. So when the dollar really starts plunging they have to give up QE so the fallback position when they can’t print money is to grab bank deposits – and not just bank deposits but also pensions. They will grab both.
~ The whole point is if the bond market collapses, interest rates explode. When interest rates explode, stocks collapse. That has always been the tradition so I think they (the Fed and central planners) are facing a wipeout, and they are doing what they can to prolong this….
~ [The Fed] are running out of time and means. I think they feel they are close to the end game. They are trying to stave it off. Look, if you can pass the sinking ship to the next watch – if Bernanke can get out of there before it happens – that’s what they will do and we don’t know what the Fed is telling the Congress. They may be telling them it’s better to get rid of social security in order to save the budget.
~ What a crock!
~ The Fed had many years to plan this out. They went to the extreme of creating the OTC derivatives as a means of control. They “own the psychology of the markets” as the above shows. Think about it. The threat of stealing bank accounts and pensions should have crashed the Stock and Bond markets in one day, and world-wide.
~ They drag this FTO guy out of mothballs to try to create sympathy for the Fed. At the same time he is describing how the Fed is managing the price of the Precious Metals, a judge is throwing out a lawsuit over the Fed managing the price of the metals. This guy shows up right around the end of this long sideways correction in Gold and Silver. Must be a coincidence, eh?
Conclusion
The bottom line for me is that all of the various markets are trading well in line with the fractal comparisons to the late 70’s.
- The DJIA topped and corrected sharply at this point in the cycle as Gold and Silver started their first real parabolic run.
- The Dollar Index is moving sideways, not threatening to crash – but moving sideways oscillator to the Euro as expected. How many times have different analysts screamed that the Dollar via the Dollar Index would crash? How many times have analysts screamed that the Dollar Index was in a new bull market.
Not knowing history leaves one exposed to repeat it, and the fractal price movements of the late 70’s are still repeating. The fundamentals are still repeating.
I don’t think that KWN is doing the Gold community any good by throwing this guy at us and, unfortunately, I don’t think that JS is helping by not ripping this guy apart.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*Goldrunner offers a subscription service which provides detailed technical analysis of where the price of gold, silver and precious metal stocks are going in each stage of their respective bull runs. This service comes with detailed charting based on conventional technical analysis and his proprietary fractal analysis based on the ’70s. Go here to subscribe.
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