On the heels of a serious takedown in the metals, a former associate of George Soros told King World News that the Fed was responsible for the gold and silver smash.
Victor Sperandeo manages over $3 billion, has been in the business 45 years, and has worked with famous individuals such as Leon Cooperman and George Soros. Below is what Sperandeo had to say.
Eric King: “Victor, in the aftermath of what transpired, what is your view of what has unfolded today?”
Victor Sperandeo: “This smash in the gold price was different than the one in 2013. It wasn’t just gold today — this was across the board…
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Victor Sperandeo continues: “Today was a result of pure propaganda from FOMC members. The FOMC cockroaches came out and spoke about raising rates. I call them the cockroaches because they run away if there is bad press about what they’ve said or done.
Fed Propaganda Used To Push Markets Around
Today we saw the bonds trade down 1.5 points, gold and silver were crushed, all the currencies were down, and the only thing that seemed to trade higher was the dollar. So the dollar was screaming higher because of these two cockroaches from the FOMC saying that the Fed should raise rates. Of course the meeting that they would even consider raising rates is in December. So today was all about propaganda and the psychological impact it had on key markets. (Laughter).
The Selling Just Snowballed
The reason they timed this propaganda for today was because we had all of these consolidations taking place on bonds, currencies, silver, and gold. So we get these well-timed statements from Fed members saying they were going to raise rates, and once the selling started, it just snowballed.
So the moves to the downside were greatly amplified because of the break in the consolidation patters along with the Fed propaganda. Also, when you look at the gold and silver markets in particular, small speculators were long an immense amount of contracts.
Fed Cockroaches Create Market Carnage
So we had all of this carnage today in the markets because of these two Fed members that spoke in the morning, you know because cockroaches come out when nobody is around. (Laughter). But I tell you, Eric, that the Fed is going to come to regret this kind of ‘moral suasion,’ to use a term that was coined in the late 1970s by Paul Volcker. They are basically just moving markets around with propaganda. They are not going to do anything.
And remember, Eric, that the government is going to spend an astronomical amount of money in the 3rd quarter to make it look good for Hillary Clinton so she can win the election. Meanwhile, you have these cockroaches from the Fed saying they should raise rates because inflation is the problem. That’s absurd.
Fed Destroying Last Remaining Credibility
But as I said earlier, the Fed will come to regret their jawboning of major markets because it will eventually backfire and be one of many factors that ultimately destroys what little credibility they have left.”
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