Maguire:  “People make the mistake of focusing on these tiny moves, and the chop within a range, when they should really stand back as ask, ‘Where are we?  Who is in this market, and why?’  (This is) especially true on a day like today....

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“This week it was all about a cornered Fed.  They are running defense is what the Fed is doing -- intervening in the paper gold markets again.  What it’s really done is switch what should be an extremely bullish situation for gold, into a selloff.

This is like a catch-22 market intervention.  When you (as the Fed) time moves like we just saw, and then you coordinate that with really well-timed mainstream media reports (propaganda) saying that ‘Gold investors are giving up on gold because it isn’t reacting to obvious bullish inputs.’  Well, of course that is the strategy, and it’s working to some degree.

When the Fed steps in it’s for a reason, and we have to ask, why are they doing this?  They are defending the dollar.  The dollar is under attack, and the benchmark for the dollar is gold.  And when they (the Fed) sell gold, in big size, against the dollar in the foreign exchange markets, what they are essentially doing is going long dollar and short gold.  Even when we see the dollar (recently) under attack and moving down, we’ve seen gold going down too.  That is the Fed trying to defend the dollar in a very, very bad dollar situation. 

The Fed does not operate directly in the market.  They operate through two primary ‘agent’ banks.  They (the bullion banks), in turn, time naked short gold sales in the futures market to coordinate what the Fed is doing in the more opaque foreign exchange markets.

This is where the bullion banks become visible, because the bullion banks are provided with visibility into the market book.  So, they have an insider knowledge, and they can easily discern where it’s best to surgically add large synthetic supply.  This is not anything to do with physical (market). 

This is synthetic supply, to force the paper market participants to capitulate longs.  And it (the trading profits) goes straight into the bullion banks’ hands.  It also draws in other participants to go short.

But we always know how this ends.  The bullion banks are trading on inside information, and they get to profitably take the long side of forced supply.  What we are saying here, Eric, is this is just synthetic chart ‘noise,’ and it doesn’t change the bullish fundamentals at all (for gold).

There is such clear evidence the Fed has been active in the market, not just with the large footprints we see in the market, but the most obvious of all is when we see the Fed’s number one ‘agent bank,’ Goldman Sachs, up to their old tricks again -- beating the mainstream media drum that it’s again time to ‘sell gold.’  And this time suggesting, ‘It’s a slam dunk sell.’ 

Now, actually this is a bullish sign because what it really means is that they are approaching ‘sold-out’ already, and they are looking to take the other side (long) of that trade, and they actually need fresh supply to come in to cover (their shorts) into.

This is the most bullish sign you can ever imagine because I actually get really concerned on the rare occasions when they tell their ‘Muppets’ that gold is going up.  It really means they are on the short side of it (gold) at that point.  But what really amazes me, Eric, is that I see people following their recommendations.  If this trading bank has such ‘God-like’ altruistic motivations, and has all of our best interests at heart, then you’ve got to give your head a shake. 

This is the ‘Vampire Squid’ we’re talking about -- a bank that was once happy taking down entire corporations.  And, then, when they realized the regulators were looking the other way, they progressed to taking down entire countries.  And they are likely to be on the right side of the trade if there is a global collapse.  Anyone believing that a recommendation from this bank is something to follow is out to lunch.  These banks are run by very bad people.”

Andrew Maguire’s trading service has returned over a staggering $134,000 for each and every (single) contract traded in the gold and silver markets over the past 16 months.  For those who would like to get more information on Maguire’s incredible trading service and to sign up you can do so by CLICKING HERE.

IMPORTANT - Due to events, KWN will be releasing interviews all day today.  Part II with Maguire is still to come.

IMPORTANT - This is part I of a series of powerful written interviews which will be released and it is only a small portion of what Maguire had to say in his incredible audio interview.  The KWN audio interview with Andrew Maguire is available now and you can listen to it by CLICKING HERE. 

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The audio interviews with Andrew Maguire, Art Cashin, Egon von Greyerz, Bill Fleckenstein, David Stockman, Robin Griffiths, Jim Grant, Gerald Celente, William Kaye, Dr. Paul Craig Roberts, Chris Powell and Eric Sprott are available now. Also, other recent KWN interviews include Marc Faber and Felix Zulauf to listen CLICKING HERE.

Eric King

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© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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