Sunday , 21 July 2024

Noonan: Is Gold’s Decline Being Caused By Fed Payback Time to China? (+5K Views)

paybackThis commentary is a partial answer to the manipulated raids in the gold market since last April.  Those raids may be hurting the Precious Metals game players, weakening their confidence and “disproving” gold’s worth against a fiat currency, but they serve a greater purpose, as in Federal Reserve payback time to China. Here’s why.

So writes Michael Noonan ( in edited excerpts from his original article* entitled Gold and Silver – Western Bankers (Forced) Bowing To China.

[The following article is presented by  Lorimer Wilson, editor of and the FREE Market Intelligence Report newsletter (sample 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. This paragraph must be included in any article re-posting to avoid copyright infringement.]

Noonan goes on to say in further edited excerpts:

On Friday morning, gold trading was shut down for 10 seconds in a “stop logic” event, as the CME explains.  In essence, when there is an overload of orders that cleans out stops, the market halts, (10 seconds???) “designed to prevent exaggerated price movements.”  In a sorry-ass explanation that defies common sense, except to protect the criminal exchange behavior, we give this CME propaganda no further consideration.

“Someone” sold 2 million ozt. of paper contracts at one time.  There does not seem to be much interest by the exchange, and none by I-cannot-find-any-wrongdoing-Department- of-Justice-head-Eric Himpton Holder as to who was (ir)responsible for what would be considered an act of terrorism were it against the FX “dollar” or Fed-driven stock market.

[That begs the question:] “Who would do such a thing?”

  1. Smart money does what it can to hide its accumulation, when in a buying campaign, or distribution when engaged in a selling campaign.  Smart money would not do such a thing.
  2. A prudent investor employs capital preservation tools and would not do such a thing.
  3. The average trader is too poor to own 2,000,000 ozt of gold so could not do such a thing. No liquidation margin call, here.
  4. What about dumb money? Who represents dumb money?   Why central bankers, of course, and they are on a suicide mission to destroy the financial economy in order to save their fiat (out of) control. Guess which country is the largest holder of toxic and worthless US Treasury Bonds? China.

China is still pissed at the U.S. government for selling out China’s gold, (on loan, but sold out from under them, anyway), back in the 1990s.  As the holder of over a $trillion in US T-Bonds that are proving worthless, China is a Tiger getting rid of that paper.

The Plausible Scenario

Few will ever know the true picture, but here is a plausible scenario.  It is a generally held view that central bankers have emptied their vaults of all their gold, and not just their own holdings.  Through hypothecation, re-hypothecation, and who knows what more, central bankers have also sold every other country’s gold on loan.  German gold: Kaput!  Allocated gold from wealthy private holders: Gone!  (No!  You cannot see your gold that we hold for you in our bank. We stole it.)  Where did it all go?  Shipped East.

What about all that sovereign and private allocated gold that has numbers on each bar? So sorry.  It was melted down, [accidents do happen], and remolded into bars and shipped to China.  Why do you keep asking these unnecessary questions?

Why the manipulated gold raids?

It is a way to get the price of gold lower as a favor to the Chinese who are doing almost all of the buying to compensate for the worth less and less Treasury Bonds they are holding. If the central bank Fed does this for them, the Chinese will not dump all their holdings and cause the Western banking system to collapse.  Instead, the greedy-but-dumb central bank Fed will cause the collapse of the US Federal Reserve Note, (also incorrectly called the “dollar”] along with the rest of the U.S. economy, but at a relatively slower pace.

Forget about all these stories of long lines to buy gold, record sales in coin purchases, a pittance in comparison to the thousands of tonnes China, Russia, and a few others are buying at lower and lower prices, courtesy of the deceiving Fed, caught with its “goldenless” pants down.  The game is up, and the Fed has chosen a slower death dance by increased money printing and QE-ScrewYou4Ever antics to buy time.

What does this mean for you? 

Got gold?  Got silver?  If not, you got nothing.

All paper-dominated “things” (we cannot call them assets, except in the minds of the holders) have little to no intrinsic “value.”  Despite the detractors who always say gold and silver are not forms of wealth, both PMs are immune from government fiat dictates. Gold and silver are the equivalent of a wooden stake to drive into the central banker’s fiat heart, if they had one.

It is gold and silver that is the nemesis of all central bankers, for PMs would break the fiat paper back of their control.  Why do you think the Federal Reserve was created 100 years ago by the New World Order?  To get rid of the gold/silver specie backing of United States Notes and replaced with no-backing-whatsoever Federal Reserve Notes, as the means for stealing the entire wealth of the United States, forcing the country into bankruptcy in 1933, and turning the U.S. into the Third World-rate country it has become.

Each and every week we advocate buying physical gold and silver, at any price.  Just get it and hold it personally.  Buying physical PMs is not an investment; they are necessary for your survival.  Their ownership is the only way to avoid total bank/government control (the problem with land it that is not portable, and it can be more easily confiscated than gold and silver).  They are the best means of preserving that which is yours.  They are an insulation from bank bail-ins.

Why anyone still  keeps money in any bank is a mystery. The gold and silver that you own and hold will escape the likely conversion of pension accounts, 401ks, etc. to be “taken,” as in theft, by the government, for your own good, of course, and converted into (worthless) government bonds.

You have a choice:

  1. Do you want to have your life run by a private banking cartel (which the foreign-owned Federal Reserve is) and, in turn, federal government sponsored (which is controlled by the foreign-owned Federal Reserve)? or
  2. Do you want to control your own life and financial destiny?

The choice is yoursYour self-liberation is simply choosing to buy and hold as much gold and silver as you can.  You have no third-party counter-risk.  There is no debasement – an ounce of gold or silver is the same as it was for the past 4,782 years. (Why always 5,000 years?)

You are an eye-witness to the Western banking cartel’s self-destruction.

[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

Other Noonan Articles:

1. Noonan: The Fed Will Never Ever Taper & What That Means For Gold

The Ponzi bubble is bigger than most can imagine. Western central planners… [continue to try to] suppress gold and silver in order to keep their sorry lives alive.  In the process, the destruction of people’s financial well- being is unabated… Read More »

2. Noonan: Gold & Silver Could Move Sideways for Another 1-2 Years – Here’s Why

Using past history of how price responds, it is likely that gold, and silver, could move sideways for another year or two.  While this flies in the face of so many current, supposedly “expert”, opinions [mine is not based on opinion but, rather, is strictly based on the facts as conveyed by the charts. Take a look and you will see that too!] Read More »

3. Noonan: These Charts Clearly Show What’s Happening With Gold & Silver – Take a Look

Below is a perfect example of how the charts timed the movement in the price of gold and silver over the past week. Yes, you CAN time the market as this article clearly demonstrates! When the market “talks,” we listen.] Read More »

The window of opportunity to buy physical gold and silver continues to narrow.  Like the housing market top was known to be coming, when it came, those who waited too long regretted it.  When the bottom for the physical PMs is known as a certainty, those who waited for a “better price” may also regret that decision.  It is all about choice. Read More »

In an election, it does not matter if voter turnout is high or low, the outcome is determined by the actual votes cast.  The same holds true for the markets.  Only those who make an actual buy or sell decision determine the outcome of the market trend. The market “voters” turn up in charts, recorded in the price range, close, and volume. Collectively, a “story” unfolds, and it usually is an accurate one as it does not include any opinions. Opinions do not matter. Articles written about fundamentals, pundit declarations, etc., all fall under the category of opinions. The market is the best source for information, and that is a fact. Read More »

…Fiats have an unbroken track record of failing throughout all of history. Gold also has an unbroken track record of being a store of value for over 5,000 years.  Yes, there have been hiccups along the way, and we are in one now.  It is what it is, but what it is is also an incredible buying opportunity at “fire sale” prices….[That being said,]  a look at the charts of the paper-tracked PM market [beg the question]  … “Where’s the beef?”  Where is the substance of anything?  We see none in the charts. Take a look. Words: 610; Charts :4 Read More »

Technical analysis is a measure different from fundamental analysis…and we qualifying our approach with a specialized subset of technical analysis.  How so? We read price and volume behavior, over time, in the form of developing market activity. It is what one sees on a chart, price ranges, close locations, volume, time factor[s], but no more. Below are charts that suggest that the weakness in silver may be coming to an end, sooner now rather than later, but that for now, it is what it is – and what is, is reality. Read More »

Charts speak the loudest…and they never lie…[because they are] the true record of all buy and sell decisions executed, coming from the most informed to the least informed.  Most of the problems lie with those who form an opinion, and how they choose to impose it onto what any given chart “says.” My understanding of what the quarterly monthly, weekly and daily charts are conveying about the price action of silver is, simply,] “Silver stackers, these lower prices are a gift you should keep on taking.  Stay tuned.” Read More »

If you want to make rabbit stew, first, you have to catch the rabbit so hopefully, first, we’ll see some concrete signs that a bottom is in before the regurgitation of “Gold is going to $10,000!” starts showing up in a host of new articles pandering for attention. The best way is to decide for yourself…so let us go to the most reliable source, the market, and see what the prices of gold and silver  have to say about what everyone else has been saying about them.  People have been known to exaggerate, even lie in their “opinions,” but the market never does either. Read More »

Not one Precious Metals guru has gotten anything right in the last 18 months.  All have been calling for considerably higher prices.  Over the past several months none called for sub-$1,300 gold and sub-$20 silver. Crystal balls do not work and never have. When it comes to markets, anything can happen [but the charts convey that] there is no apparent ending action suggesting a selling climax or even a cause for a reaction rally. Take a look. Read More »


One comment

  1. Check this out:

    Is the US Gov’t. shutdown part of a global fiscal READJUSTMENT?
    Stay tuned…

    If so, look out PM’s will rocket upward like never before!


    My prediction is that Gold will hit $2,000 an ounce before the middle of 2014, then jump to $3,000 an ounce in less than a year later; get ready for all PM’s to leap upward, while the Central Banks all “reboot”…