Today whistleblower Andrew Maguire accused the US government and “criminal organizations” of using PSYOPs to control economies, global markets and people. Get ready for a trip down the rabbit hole of a mind-blowing Orwellian nightmare, where world markets and events are orchestrated to enrich the global Banking Industrial Complex.
US Government & Criminal Organizations Using PSYOPs To Control Markets
Andrew Maguire: “Looking ahead to 2017, we need to start by stepping back and weighing up the increasingly illiquid paper centric structured markets vs. the increasingly more influential physical markets.
Many, quite rightly, question why it would be that the historically derived paper centric technical structures will not continue to be the input that drives the synthetic tail which in turn wags the physical dog. Especially so after the end of year counterintuitive more than $200 selloff into the bullish driver of the US election upset…
Continue reading the Andrew Maguire interview below…
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Andrew Maguire continues: “Recently, we have witnessed ludicrous and myopic ‘analysis’ being proffered about the gold market action. One getting recent media attention tried to assert that physical buying does not influence the price of gold and silver and that it is solely the paper markets that will continue to dictate how much gold and silver ounces are worth. Connecting the dots even further, the ultimate conclusion of this blinkered analysis resulted in a revival of ‘the old chestnut,’ most recently dragged up into the end of year lows, warned that gold ‘could’ be sold all the way down to $500 per oz.! This so ludicrous that it was clearly part of a structured PSYOP (https://en.wikipedia.org/wiki/Psychological_Operations_(United_States), (see PSYOP info below):
Psychological operations (PSYOP) are planned operations to convey selected information and indicators to audiences to influence their emotions, motives, and objective reasoning, and ultimately the behavior of governments, organizations, groups, and individuals.
The purpose of United States psychological operations is to induce or reinforce behavior favorable to U.S. objectives. They are an important part of the range of diplomatic, informational, military and economic activities available to the U.S. They can be utilized during both peacetime and conflict.
PSYOP’s Are Used To Influence Action In Major Markets, Including Gold
The PSYOP from Goldman Sachs was an even more outrageous call designed to breach last December’s $1,045 low in the gold market. Yes, Jeff Currie, we won’t forget your disingenuous $800 gold call a year ago. For what it’s worth, it was later proved that Goldman Sachs was aggressively accumulating physical gold at the time of Currie’s orchestrated call for gold to plunge in price.
BIS & Fed Orchestrate The Comex Casino Price Action
This assumptive 100% US-centric view anchors its blinkered analysis upon Comex non-delivery market activity, otherwise known around the world as ‘The Casino’ because it is widely known to be a manipulated tool of the US government to artificially manipulate and suppress gold and silver prices. The CME is the SRO, (exchange), operating the casino and it cooperates and coordinates directly with the Bank for International Settlements’ (BIS) gold trading desk along with the Fed’s, while also ensuring an inside track for its members. This is most obviously achieved by way of purposely withholding public reporting — both COT and Open Interest are delayed — along with the blatant advantage that co-located HFT’s provide.
Less transparent but obvious by the footprints, are that news services, including the CME, receive news 5 minutes prior to public releases. And as Bart Chilton, former Commissioner of the CFTC (US Commodity Futures Trading Commission), told me:
“These news rooms are leaky.” — Bart Chilton
A “Criminal Organization”
Chilton was letting me know that the ‘leaky’ news rooms allowed insiders to front run news such as critical NFP (Non-Farm Payrolls) data, which is known by official’s days ahead of the release. In addition, this criminal organization provides members visibility into margin structures, (stops), which enables predatory margin targeting. This is commonly evidenced by HFT attacks on aggregated stop levels, usually at illiquid times or as we saw in July when the ‘house’ was on the wrong side of an imminent gold breakout at $1,377.50, or by way of altering credit terms, (margin), to favor their members when specs look like they are winning against the house. This is akin to the old bookie wire scams eradicated in the 1930’s.
I am suspicious of the 10% margin reduction yesterday on increased gold volatility in conjunction with a price rise. I strongly suspect the casino operators are increasing credit for members locked out of short cover in the casino. We have witnessed multiple counterintuitive margin/credit changes many times in the past. Just ask the Hunt brothers when they were beating the house in 1980, only to be robbed.
The resulting garbage gold analysis proffered by the mainstream media boils down to the blinkered analysis of the relationship between the 4 largest concentrated and positioned market making Bullion Banks, (the insider COT’s, also serving as agent for officials), pitched 1/1 directly against a very diverse group of un-coordinated speculators who operate on the casinos’ varying credit and terms. The CME ‘chips’ issued are categorized as the volume of Open Interest, (OI), that is generated & created by the casino. This large group of speculators are categorized in the COT report as the ‘Managed Money’ group, which primarily consist of hedge funds. Using the casinos credit, 100% of these participants can be relied upon to never take delivery, while a full 95% of these speculators can be relied upon to be led to the point where they can be profitably run out of credit & rinsed out, (whether betting with or against the house short or long). We have seen the resulting wash and rinse time and time again, so the question is, why can this procedure not simply be repeated going forward?
Global Physical Market Continues Migrating Away From Comex Casino
It is because the Physical market is irreversibly migrating away from the casino. This is unprecedented and verifiable, although the price effect is lagging due to a final flush out of over 1,000 tonnes of hot money spec gold longs (Comex & ETFs alone). This marks a historical change in behavior. Whereas the price of gold and silver has been able to be determined by the casino, we already have all the signs of a major dislocation. This is taking place because it is undoubtedly the physical wholesale market that ultimately determines the price of gold and silver.
So why this recent smash from July ($1377.50) to the December low? It is because initially, the synthetic long Open Interest generated, pitched the insiders safely betting against them, had gotten ahead of the lagging but rising aggregated wholesale interest levels. I recall lightening up a little at that time, and there was sufficient visible non-delivery stops to attack for short cover. Unlike other occasions when we have seen this wash and rinse behavior, during this most recent flush, the physical market took EVERYTHING offered. Other than some residual momentum ‘sell the rally’ follow through, the bulk of this Open Interest is used up vs. how far COT’s can push price below central bank and sovereign size demand, which is now having to compete with unprecedented size fresh gold interest globally.
As we recall, in July, the specs were beating the house, so house credit terms were quickly made available to the Commercials who, as we reported, were at the point of a commercial signal failure. More importantly, the rise in the gold price was at a critical breakout point which did not suit officials who needed to see gold taken down vs. the Dollar, (note, not so in other currencies), and came in to bail out the agent bullion banks operating on the CME.
Two subsequent official rescues were effected right into the end of the year — these were the Brexit and Trump upsets. Why so aggressive? With the Eurozone looking to unravel and the sure bet Clinton victory upset, both events created enormous global uncertainty, which resulted in a natural large safe haven move into gold that once more threatened the very existence of the casino insiders. As a result, the COT’s doubled down on short bets but were fast maxing out credit in a race to avert getting locked out of short cover by the physical market. These commercials were within a hair’s breadth of massive irrecoverable losses triggered by a bottleneck of short stops and competing side-line money racing into physical near $1,400.
“The Officially Coordinated War On Gold Began”
There would be, and still will be on the next physically driven run, no offers of physical gold until this short squeeze had settled. Looking at the structure at the time, for openers, this would have created a minimum $100 gap higher and $1,500 print at the very least. With commercials tapped out of credit to create sufficient synthetic supply, the officially coordinated war on gold began, led by the BIS. We already looked in detail at the timing of the war on cash and Gold in our last interview, these were desperation measures that has cleaned out all the dry powder available to Officials. Here is where we get into why this is a non-repeatable event.
As noted above, wholesale aggregated demand levels provide the limit to where officials can run price. It took enormous credit to rinse out the large spec Open Interest. but these blinkered participants and the people reporting synthetic data fail to understand why Gold bounced at the $1,130 spot level. As we knew, this was the location of massive sovereign and central bank size physical interest, and we knew on each attempted breach gold would bounce. The market making Casino and official operators exposed to the physical market globally also knew it and, as we pointed out repeatedly into these lows, just as it seemed everyone was going short, these actors were forced to take the long side of the spec credit rinses and actively 1/1 took the long side of fresh short positions. Why? Because they had to. Premiums were creating massive arbitrage opportunities.
Historically, as wholesalers seeking to fill client’s orders, from a physical market perspective it has been easy to read the wash and rinse cycle and be afforded the luxury of sitting back or pulling bids back to where the synthetic lines we track crossed best. That is not to say after lightening up a little and pulling back some bids in the $1,300’s, we were not averaging back in the $1,200’s. And as noted most recently in the $1,100’s. But with liquidity flowing into the physical markets, that is a luxury that is no longer going to be afforded to physical buyers.
Never Before Have We Had So Much Liquidity Flowing Out Of Paper Into Physical
Despite having the momentum advantage, this July to December rinse crossed the lines some $85 higher than last December’s effort, but never before have we had so much liquidity flowing out of the paper markets into the physical markets, never to return. Liquidity is the lifeblood of any market, and this action was historically unprecedented. While we respect technicals, ultimately fundamentals dictate technicals and we are seeing fresh technical anchors develop, grounded in physical.
It is not possible to have a paper market price that remains dislocated from the physical market without it failing, or a deliverable price being dragged up higher. Why? Because the resulting price is globally deliverable based upon the resulting OTC spot gold price in London, or for that matter Comex positions that can be exchanged for physical at the London spot price.
All Footprints Lead To A Revaluation Of Gold In 2017
Since Brexit and even larger since the November 9th war on cash, we have seen a race into physical on a global basis. Even before accounting for upcoming fresh physical Sharia institutional interest, there is already a gross imbalance of gold supply vs much larger demand. None of these fundamentals are factored in by the paper markets but they are recognized by the same banks who have been responsible for price rigging the gold market. These banks, without exception, are accruing as much physical gold as they can while also covering synthetic positions. Even though the gold market is considered a matter of national security on both sides of the Atlantic, which is why the West goes to any lengths necessary to suppress the price, all the footprints lead to a revaluation of gold in 2017.
Other than the paltry 5-7 tonnes per day of captive producer sales thrown in ‘at market’ by the financing bullion banks, there are ZERO size sellers of physical gold sub $1,200. Into the recent lows we witnessed between $30-45 premiums in Shanghai, and direct evidence of tonnage flowing from the refiners to meet demand. Massive smuggling ramped up in India as citizens sought to hide assets from authorities. So 5-7 tonnes of gold are nowhere near being sufficient to satisfy this kind of physical market. This leaves the ETFs as the only source of immediately accessible deliverable above ground physical gold. Hence, the recent outflows of around 6 tonnes per day from the ETFs. But these outflows are petering out as COTs cover & fresh Sharia ETF demand comes in to an already strained physical gold market.
And none of the above accounts for a myriad of other physical market drivers. Most recently, as a result of China tactically devaluing the Yuan, there is an almost guaranteed additional $1 billion of physical gold demand based upon new Common Reporting Standards that took effect on the 1st of January. Shutting a current loophole for getting cash out of China into alternative currencies draws excess money directly into physical gold and silver. Fungible physical holdings will expand accordingly. This is in addition to the expanding large flows into gold to hedge yuan volatility and devaluations.
Gold Will Quickly Be In The $1,300s
Overall, I see a major the risk to the shorts. And as far as specs building up excess Open Interest above rising aggregated wholesale sovereign size interest levels again in the future, this will happen and create small pullbacks along the way. But with supply tightening, COTs and officials will be locked out of the sub-$1,200’s very soon, and then we will take it one step at a time based upon the footprints. Just on short cover alone I see gold soaring into the $1,300’s relatively quickly.”
***ALSO JUST RELEASED: John Hathaway – China Is Preparing To Radically Reprice Gold Higher As Demise Of The COMEX & LBMA Accelerates CLICK HERE.
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