KING WORLD NEWS - BLOG
BROADCAST../../../../Broadcast/Broadcast.html../../../../Broadcast/Broadcast.htmlshapeimage_6_link_0
HOME../../../../King_World_News.html../../../../King_World_News.htmlshapeimage_13_link_0
BUSINESS../../../../Business.html../../../../Business.htmlshapeimage_14_link_0
GREEN../../../../Green.html../../../../Green.htmlshapeimage_15_link_0
HEALTH../../../../Health_1.html../../../../Health_1.htmlshapeimage_16_link_0
ENERGY../../../../Energy.html../../../../Energy.htmlshapeimage_17_link_0
SPORTS../../../../Sports.html../../../../Sports.htmlshapeimage_18_link_0
GOLD+../../../../Gold.html../../../../Gold.htmlshapeimage_21_link_0
 

Eric King:  “We now have news out of China that some of the shadow banking system loans were backed by non-existent gold.  Over here, Eric Sprott has warned that the West cannot continue to hemorrhage gold out of its vaults indefinitely -- that the West will simply run out of gold.”


Powell:  “That’s been the lesson of history.  That’s what happened in the West in 1968 when the London Gold Pool collapsed in 1968, precisely because the gold available to the pool ran out.  The United States, the Bank of England and the six or seven Western European countries that were part of the London Gold Pool were simply overrun....


Continue reading the Chris Powell interview below...




Advertisement


UPDATE: To hear which company just made one of the most exciting high grade

discoveries that just had a massive 101 meter drill strike, as well as

major financial backers click on the logo:






“People forget that investors around the world realized the dollar was being devalued and gold was worth more than $35 an ounce.  France then decided it didn’t want to hold dollars any more -- it wanted to redeem dollars for gold.  So the massive offtake of gold in late 1967 and early 1968 led to emergency meetings in Washington and London.


At that point those in charge of the pool realized they only had a few months of gold reserves left at the massive rate of offtake.  Well, in 1968 the situation became really desperate.  The minutes of the Federal Open Market Committee record that the United States was sending emergency Air Force transport shipments of gold over to London in order to reimburse the Bank of England for British gold that was being advanced into the market on behalf of the United States’ contribution to the gold pool.


Finally, in 1968 when the U.S. government and Bank of England realized that they had only a few weeks of gold reserves left, the United States contacted the British government and asked them to close the London Gold Pool.  The gold price then rose substantially.  Then, in 1971 Nixon closed the gold window.  So Sprott is right, this is how it ended in 1968 and 1971.  A certain amount of metal was always required to suppress the gold price, and after a while it was clear that metal would no longer be available.


Now, there is something different today and that is the fact that there is infinitely more paper gold issued today than there was in 1968 and 1971.  Back then there was not as much certificate gold, imaginary gold, Ponzi scheme gold available to the market.  Today many countries, Germany among them, have been content to accept certificates for their gold.  These countries like to think that the gold is there at the Fed or the Bank of England, but it’s not.


At some point countries are going to ask for delivery and the squeeze is going to be infinitely worse than it was in 1968 and 1971 because of all this imaginary paper gold which is out there that can’t possibly be delivered.  The central banks will realize that there are going to be bullion bank catastrophes -- that the squeeze is going to take down certain banks that are naked short and that the Western central banks no longer have the metal to back up the bullion banks, as they usually do.  At that point all hell will break loose in the gold market and we will see what William Kaye has described as the greatest short squeeze the world has ever seen.”


IMPORTANT - KWN has many more interviews being released today.

 

© 2014 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 Grant Williams, Andrew Maguire, James Turk, Jean-Marie Eveillard, Egon von Greyerz, Dr. Paul Craig Roberts, Ben Davies, David Stockman, Bill Fleckenstein, MEP Nigel Farage and Dr. Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf -- to listen CLICK HERE.


Eric King

KingWorldNews.com

To return to BLOG click here.

 
 
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.html
KWN BLOGhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlshapeimage_24_link_0shapeimage_24_link_1

© 2014 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.

Subscribe to RSS
CLICK HEREhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlshapeimage_27_link_0shapeimage_27_link_1
KWN Blog
Archiveshttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlshapeimage_28_link_0shapeimage_28_link_1
http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html