The ONE Revelation about HFT Programs that Truly Scares Bankers (Hint: It’s About Gold & Silver)

April 7th, 2014

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Last week, the big story was how bankers use HFT (High Frequency Trading) algorithmic software not only to rig markets but also to commit theft on a daily basis (Frontrunning, like Quantitative Easing, is just fancy Wall Street lingo to disguise its true meaning of theft).  Though many in the public blogosphere expressed shock that stock markets are rigged and that regulators like the Securities Exchange Commission willingly allow this theft to occur, the only thing shocking about this story was how long it took this story to reach the mainstream and that people were crediting Michael Lewis with uncovering this story with his book “Flash Boys” when in reality this story had been discussed in detail on independent financial media sites for more than five years already.

 

For example, an accounting professor at the Yale School of Management, X. Frank Zhang, calculated that HFT trading was responsible for a minimum of 70% of all daily trading volume in US stock markets and possibly for as much as 78% of the volume in 2009. And HFT algorithmic trading was already dominating daily trading volume on US stock exchanges prior to 2009.  Thus one can clearly see that the only thing “new” about HFT algorithms is that this old news has finally moved into mainstream media headlines.

 

BATS CEO William O’ Brien, when confronted on MSNBC last week with the fact that HFT algos commit millions of acts that are specifically prohibited by the US Securities and Exchange Commission’s Regulation NMS, a regulation that requires brokers to guarantee customers the best possible execution of price on orders, ludicrously argued that HFT programs have no clients (David Cummings, a computer programmer that worked at the Kansas City Board of Trade, founded BATS, a stock exchange located in Lenexa, Kansas. The core code of BATS was derived from tradebot, a computer program that engages in algorithmic trading). There is only one possible way that O’ Brien’s claim that HFT programs “have no clients” can be true. If the HFT programs were artificially intelligent self-aware programs that made all decisions independent of the interests of the people that coded them and the bankers that used them, then perhaps O’Brien’s claim could be partially true. Otherwise, as long as bankers hire programmers to code HFT algorithms and employ them for their benefit and to the disadvantage of their competitors as well as the disadvantage of their clients, then the obvious clients of HFT programs are bankers and the companies that entice bankers to use them. To claim otherwise is simply a flat-out lie.

 

In any event, the Holy Grail that the bankers are seeking to protect is not that they use HFT programs to rig stock market trading.

The real truth the bankers wish to conceal from the public is that they use HFT programs to suppress gold and silver prices.

If this truth made it into the mainstream news and was being discussed at the same level at which HFT programs being used to rig millions of stock trades is being currently discussed, bankers would have a heart attack. However, do not let the complete media blackout of the banking cartel’s use of HFT algos to control gold and silver prices in the paper derivatives markets lead you to falsely conclude that the use of HFT programs are not critical to gold and silver price suppression.

 

There have been many instances in the past several years when it has been crystal clear that bankers were using the processing speed of HFT algorithmic programs to create waterfall declines in gold and silver prices that would have been impossible to create without them. In fact nearly six years ago, in 2008, I sent then US CFTC Commissioner Bart Chilton evidence of gold price slams in the New York market that would have been impossible for bankers to create without the use of HFT algorithms. Click on the following link to see the evidence I provided to Bart Chilton back then, in which gold prices literally were slammed at market open in New York in a matter of minutes by $30, $40, $60 and even more, almost always at the same exact time in New York, as well as his reply.

 

It was Bart’s reply in 2008 in the above link that led me to write him off as possibly being someone that would take action against the bankers’ immoral and unethical use of HFT programs to suppress gold and silver prices in paper derivative markets, and his retirement in December 2013 without any inroads being made to prevent bankers from using HFT algos to artificially slam gold and silver prices confirmed that my assessment six years ago was the correct one. In any event, though back then I couldn’t prove beyond a shadow of a doubt that bankers were using HFT algos to slam the price of gold and silver on the particular days of steep price declines that I presented to Chilton, NANEX has provided data in recent years that confirmed my previous suspicions.  Let’s take a look at a couple of scenarios in which evidence is clear that bankers are using HFT algos to manipulate gold and silver prices, and I will further explain how bankers use HFT algos to create unnatural and artificial, non-free-market rapid waterfall-like declines in gold prices similar to the ones that I presented to Bart Chilton in 2008.

 

On February 29, 2012, at 10:47:21 the GLD dropped by about 1% in less than 1/3 of a second, and on March 20, 2012 at 13:22:33 (1:22:33 p.m. ET) the quote rate in the ETF symbol SLV sustained a rate exceeding 75,000/sec (75,000 quotes per second) for 25 milliseconds (25 thousands of one second) and also dropped by a significant amount in less than a second. (Source: The Gold Cartel: Government Intervention on Gold, the Mega Bubble in Paper, by Dmitri Speck).   To put this in perspective, if the US S&P 500 index drops by 1% over the course of an entire day’s trading session, this event makes news on the headlines of every mass media US financial website. Now imagine if the S&P500 lost 1% in less than 1/3 of a second, how widely covered such an event would be? So why did these events in the gold and silver markets receive a total blackout from the US mass financial media? And why would artificial quote stuffing rates of 75,000 quotes per second executed by bankers using HFT algorithms allow the price of silver to be manipulated and suppressed? First, consider if humans, and not supercomputers, provided all trade quotes in the SLV. The quote rate would have been less than one every few seconds, and nowhere close to the HFT program rate of 75,000 per second. So what is the purpose of  HFT algo quote stuffing?  To explain it as simply as possible, bankers that use HFT algos to produce quote stuffing events provide quotes that they never expect to execute. In other words, bankers produce quote stuffing events to serve as exploratory probes to see if anyone reacts to the false quotes they produce that are never even real orders. Since bankers use supercomputers located right next to the stock exchanges to run their HFT programs, their goal of providing fake bids (or asks) is to see if there is anyone trying to sell (or buy) at that price.

 

As a hypothetical example, if the price of silver were falling on a particular day, and the bankers wanted to see if anyone wanted to sell any silver futures contracts at the silver equivalent price of $20.10 an ounce, they could produce a fake bid that amounts to a price of $20.10 per ounce per futures contract. This fake bid then may produce a sell order for 10 contracts and another one for 20 contracts. Since each futures contract represents 5000 ounces of silver, the notional amounts represented by 10 and 20 contracts are respectively over $1MM and $2MM (though the actual costs of the initial and maintenance margins per futures contract are obviously much less due to the leverage ratios of PM futures contracts). So now that the banker run HFT algo knows that a couple of parties are interested in selling silver derivatives at $20.10 an ounce for silver, the HFT algo would immediately withdraw or cancel all of its “exploratory bids” and use this information of selling interest in silver futures contracts to immediately re-price its bid to the silver equivalent price of $20.05 per futures contract. The HFT algo can then “see” if sell orders come back on line reduced to a price that amounts to $20.05 per ounce of silver. However, if the HFT algo spots 1,000 silver futures contracts that exist with orders to sell if silver hits $20 an ounce, the HFT algo will attempt to trigger all the stops if the bankers’ aim is to cause a waterfall price decline in the price of silver and will execute the wash, rinse and repeat cycle time and time again.  In other words, once they know the sellers are chasing the price lower, the bankers would program the HFT algo to again immediately withdraw the bid at $20.05 and re-set it at $20 an ounce knowing that 1,000 more contracts will be automatically triggered to sell at this price and consequently  send the silver price plummeting much lower than $20.  How? Because as the stop losses are triggered, the banker programmed HFT algo can play the same game with those 1,000 orders and make every subsequent sell order chase the price of silver lower. Of course, these HFT algos have been programmed to make these decisions  in milliseconds of time, faster than a human eye can see, and do not have a banker literally instructing the algo to pull bid quotes once a sell order that matches that quote comes in.  Still, a real person had to program an HFT algo to make split-second decisions based upon information it gathers with a specific goal in mind, either to ratchet down gold and silver prices or to ratchet them up higher depending on their clients’ (the bankers) motives. Furthermore, since HFT algos are quote stuffing at rates in the tens of thousands per second, I realize that the step down increments in reality may be smaller but this is just a hypothetical example to provide an idea of how bankers can use HFT algos to rig gold and silver prices lower.

 

And the beauty of this entire HFT algo scam? Bankers can create a waterfall decline in the price of silver in the above hypothetical scenario before possibly even having to execute a single trade and trigger massive declines in price just by triggering a couple of trades! Thus, in the above scenario, once the orginal two selling parties take the bait and move their sell orders down to $20 an ounce per contract, the silver rout would be on. Using a poker analogy, trading in gold and silver paper derivatives against bankers that use HFT programs is like showing the bankers all of your cards every hand. You simply cwill not win against such a rigged system as long as you fail to realize that the bankers can see your hand through the use of fake quote stuffing. Or in other terms, the rigging is so egregious in gold and silver derivative markets, that if bankers were rigging a poker game in Las Vegas to the degree that they rig gold and silver futures markets, they would be taken into a back room in Vegas by casino security and well, you know the rest of what would happen next.

 

I suspect that this method of using HFT algos to quote stuff and pull bids (which is illegal for a human to do, but acceptable for a human employing an HFT algo to do, if that makes any sense) is the primary method by which bankers create vacuums in gold and silver derivative markets to create the types of artificially-induced, non-free-market waterfall price declines evident in the charts I sent to Bart Chilton in 2008, and that have happened every year since, especially with great frequency again in 2013. In fact, prior to last year, 2008 was the last year in which the Western banking cartel interfered with gold and silver markets to an excessive level, as can be seen in the below chart in which daily declines in gold’s paper price over 2% in less than 20 minutes spiked to 12 days (chart courtesy of Dmitri Speck of GATA). Again, this happened a dozen times in 2008 and yet was never covered one time by the mainstream financial media. Imagine if the FTSE 100 or the S&P 500 declined by 2% in less than 20 minutes just one time? This would be the lead story of every financial site around the world.

au2in20

So now we know why bankers use HFT algos to create fake quotes in gold and silver derivative markets to artificially move prices, but why would bankers have to create 75,000 fake quotes per second? Think of massive volumes of quotes as traffic on a two-lane highway. If there are not many cars, you can get from point A to point B fairly quickly. However, if I wanted to prevent you from reaching your destination and could re-route 75,000 cars to occupy the lanes in front of you, it would obviously take you much longer to reach  your destination. Bankers that use HFT programs to quote stuff essentially have the same goal, but think of the destination in the stock market as the ability to process information. When bankers use HFT programs to create massive volumes of artificial traffic, not only do they effectively slow down the rate of processing information down for all others, but it also raises the cost to process information as well as masks the fraud committed by the HFT programs as no information can be obtained while they provide tens of thousands of fake quotes per second. Thus, the use of HFT algos to quote stuff makes it much more difficult for competing algos, and certainly human beings, to understand that their buy and sell orders are being skimmed for illicit profits by bankers. In other words bankers can use HFT algos to create waterfall declines in gold and silver prices in a step-down manner when they are buying and likewise, when selling, can use them to get traders to chase prices higher in a step-up manner, all without a single trade even executing before prices have been moved well lower or higher.

 

I have laid out in the graphs below provided by NANEX, evidence of bankers that have used HFT algos to create a step-down price decline in the price of gold on January 6, 2014 from  $1245 to below $1215 in less than a minute. In fact, one can clearly see the HFT algos in action in the step-down price action that happened in gold derivative markets this day as the algo was so precise that it caused the exact same number of total trades in each step-down in price. Furthermore, one can clearly see in the below charts that algo quote stuffing can sometimes cause trading platforms to completely breakdown and come to a complete halt in trading.

 

30inlessthan1min

stepdown

tradinghalt

I want to make it crystal clear to people that the bankers using these algos and the firms employing these algos are the ones that are stealing from people and profiting from the losses they artificially inflict upon their clients. Bankers always try position all blame for all uncovered fraud and immoral activities solely on “out-of-control” technology as if the technology is somehow beyond their control. The meme that all the mass media has used last week when discussing HFT algos is that it is really not that bad because if it were, it would not be “legal”. Forget about the fact that banking and finance industry lobbyists spent nearly a quarter of a billion dollars in 2013 alone to influence law making and that much of this money is spent to make once illegal behavior legal if it benefits the banks.

 

In the end, it is not the speed of trading that is the problem but rather how bankers use supercomputers that process and execute information at super speeds to create artificial, fake quotes and steal from people.  Thus the problem lies squarely not with out-of-control technology but with out-of-control unethical bankers that are merely crooks in $3,000 Armani suits. Furthermore, it is not the revelation that bankers are using HFT programs to rig stock markets that scares bankers, but the possibility that the current scrutiny on immoral HFT programs may reveal that bankers use HFT programs to rig the prices of gold and silver that truly puts the fear of God in them. For if this revelation goes mainstream and gold and silver prices are freed from banker executed HFT manipulation, every asset bubble that bankers have created since 2008 will come tumbling down as rapidly as their artificially-created waterfall one-minute price declines in gold and silver futures markets. However, as long as scrutiny remains high on the Western banking cartel’s use of HFT trading algorithms, their ability to use these algos to slam gold and silver prices may very well be temporarily impeded.

 

Hopefully, the class-action anti-trust lawsuit against the five international banks that set the London daily gold price fixings that was filed the last week of March, 2014 in the  US District Court of New York by the Philadelphia law firm of Berger & Montague and the New York law firm of Quinn, Emanuel, Urquhart, and Sullivan will shed some light on how big global banks have colluded with Central Banks to additionally use HFT programs to fix gold and silver prices lower.

 

About the author: JS Kim is the managing director of SmartKnowledgeU, a fiercely independent consulting and research firm that strategically focuses on the best ways to buy gold and silver as an important hedge in the ongoing currency wars.

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How in the World We Came to Value Cotton More than Gold

March 31st, 2014

As we explained in our last video, one of the most polarizing techniques that prevents people from seeing truth is the herding of masses into “taking a side” that they will adopt for the rest of their life. Bankers have become masters of keeping people uneducated about truth through the use of these technique, even using their knowledge of history to deceive people. For example, bankers know of the Russian atrocities committed against Ukrainians under Khrushchev, and know that because of this history, that they can stir up anti-Russian sentiment very easily among Ukranians and sell the “an enemy of my enemy is my friend” meme. This is how global bankers have slithered into Ukraine and have now enslaved this current generation of Ukranians and all future generations as well with a now reported debt burden as potentially high as $27 billion. Given that the best way to seize control of a nation is through controlling a nation’s debt and credit, the motivation of bankers interceding in Ukraine should be self-evident. While past Russian atrocities committed against Ukranians are well documented, this does not mean that an enemy of one’s enemy is necessarily your friend. An enemy of your enemy may very well be masquerading as your friend but in reality be an even worse enemy than any prior enemies you may have had, as was certainly the case with the IMF’s role in Ukraine today.

If one takes a few minutes to really think about the medium that we accept as money today, fiat currencies made out of cotton fiber backed by nothing except militaries, murder, death, and threats of murder and death, then one should easily conclude that fiat currencies literally have no intrinsic worth. Then if one considers that nearly everyone chooses to hold his or her entire savings in these transformed cotton balls we call paper money (or worse yet, digital bytes stored on a bank’s computer), and such a decision implies that we value cotton more than gold (because conversion of cotton paper into physical gold and physical silver would imply that we value precious metals over cotton), we need to explore why we have not only adopted such a self-defeating mentality, but also why we choose to cling to such a false belief so strongly.

Especially after last year banker attacks on gold and silver price, today every decent dip in gold and silver prices is very likely to incite levels of fear among even the staunchest of believers in gold and silver. This, despite the likelihood that this year will yield very significant recovery in the prices of gold and silver assets. With this in mind, we tackle the question “How in the World We Came to Value Cotton More than Gold?” in our video below.

 

cottongoldplease click the image above to play the video

More on this topic (What's this?) Read more on Gold, Cotton, Banking at Wikinvest

The Five Elements to Understanding the Truth About Everything

March 10th, 2014

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Today we live in an age of universal deceit, and as 1984 author George Orwell stated, “In an age of universal deceit, telling the truth is a revolutionary act.” I would amend that statement in regard to financial well-being to read, “In an age of universal deceit, not knowing the truth is a sure path to financial suicide”. Today, far too many people put all their faith in deceitful politicians and bankers to tell them the truth and consequently are dreadfully misinformed. Those that aren’t afraid of seeking out the truth will always be more successful in life than those that shun truth or are too afraid to confront the truth. The people in power in top government and banking positions ALL know the truth, so how can it be possibly be advantageous to us to know as little as possible about the breadth of knowledge that they possess? Yet, because the easiest path to take is the path of least resistance provided by the powers that be in their daily bread and circus act, this is exactly the path the majority of us unfortunately choose to take. It is the courageous ones that seek out the truth in the face of ridicule and the angry misinformed opposition of those ruled by emotions instead of facts that are the ones most likely to thrive in uncertain and increasingly risky economic times. One must take the time, if one is to survive these currency wars being enforced upon the world by global bankers, to understand the paradigms used to mislead us and then, learn how to parlay these disadvantages into our advantage. Learn to do this, and anyone can thrive even during disastrous economic times.

Here are three quick examples of the universal deceit of which I speak.

Patrick Rock, a close aid of UK Prime Minister David Cameron, of whom Cameron even stated “play[ed] an important role at Downing Street” was recently arrested on child-pornography related charges. What was Rock’s role at Downing Street? – ironically, to craft child porn prevention laws. In the political hemisphere, CNN reported headlines, “What can Obama do about Russia’s invasion of Crimea?” while other Western headlines blared “Ukraine says Russia sent 16,000 troops to Crimea.” These headlines run in direct opposition to the following facts:

In 1997, Russia & Ukraine signed a Partition Treaty that allowed the Russian Black Sea Fleet and up to 25,000 troops, 24 artillery systems with a caliber smaller than 100mm, 132 armored vehicles, and 22 military planes to remain in Crimea until 2017. This agreement was extended in 2010 until 2042.

Thus, any journalist that reports that Russia has invaded Ukraine with 16,000 troops is simply peddling propaganda and serving the same role as Patrick Rock, executing the exact opposite of what their pledged profession demands. Despite what opinions you may have regarding the Russia and US/EU/IMF conflict in Ukraine, to state that Russia has invaded Ukraine is as misleading as running a headline today stating that the US has just invaded Japan with 25,000 troops although the US is allowed 25,000 troops to occupy 14 separate military installations in Okinawa, Japan at the present time. Again, whether or not you agree with the presence of US troops in Okinawa is a completely different topic, as many Okinawans called for the departure of all US troops after 3 US military servicemen infamously raped a 12-year old Japanese girl repeatedly and left her for dead in 1995. However, as the agreements stand now, it would be just as misleading to call the 25,000 US troops present in Okinawa “an invasion of Japan” as it is to call the presence of Russian troops in Ukraine an “invasion of Ukraine”.

But today, politicians and bankers often say “to hell with the truth” in pursuit of their misanthropic agendas. After all, war is the ultimate racket that distracts people from the truth of a degrading global economic situation. In the US, Federal Reserve Chair Janet Yellen has been very vocally lauding the decline in US unemployment to 6.7% as she testified before US Congress in these exact words: “The unemployment rate has fallen nearly a percentage point since the middle of last year and 1-1/2 percentage points since the beginning of the current asset purchase program.” However, here is the truth about unemployment in the United States. There are about 243 million Americans of working age. At the beginning of 2014, there were 102.2 million Americans of working age that were not working. Does 102.2 divided by 243 yield an unemployment rate of 6.7%? Of course the unemployment rate depends upon the methodology used to calculate the unemployed, but dividing the number of out-of-job Americans by the number of Americans of working age seems like a fair way to derive this rate to me. And why does Martha Stewart go to jail for perjury for 5 months with an additional 2 years of supervision after her jail release, while the Chairwoman of the largest private bank in the United States can lie to US Congress with impunity? (Remember, Martha Stewart went to jail for lying to Federal Prosecutors and NOT for inside trading as many still wrongly believe.)

At the end of the day, only those that have the balance, the calmness and the wisdom to not be misled by their emotions and to see the truth will survive these currency wars. There are bound to be those that are blinded by their emotional allegiance to one of the above topics and therefore let their emotional allegiances cloud and obscure their judgment of simple facts. For those willing to tackle the truth head on, many of these people are not deterred or afraid of how gloomy this truth may be, and instead, knowledge of this truth only increases their resolve to take the necessary action right now. For this group, their future will be markedly more optimistic than those that continue to avoid the truth for reasons as varied as “taking the buried head in the sand approach” to “ignorance as a means to avoid the guilt of being part of the problem”. Those that have the courage to act upon the truth will flourish as these currency wars escalate while the rest will suffer great sorrows as a consequence of either their refusal to process the truth when presented with the truth or their fear of confronting truth. While the means of escapism are endless today, I tend to believe that the majority of people in the world know that their governments and bankers are lying to them about the “recovering economy” meme. Most know from direct experience or the witnessed suffering of family and friends that this meme is but a huge lie. However, equally crippling to their financial future is the inability to act in confronting this reality. Most do nothing and just hope that miraculously the economy will recover and things will get better, instead of learning as much as they can right now about what they must do to position themselves to flourish as the global economy worsens over the next few years.

Most continue to believe the commercial bankers’ lies about diversity being the key to wealth preservation and concentration being risky, even though a $1,000,000 investment in our Crisis Investment Opportunities portfolio since our launch in June, 2007 has outperformed a $1,000,000 investment in the diversified S&P 500 index by a whopping $597,258, despite the S&P 500’s phenomenal 29.6% yield and gold and silver’s woeful yields of -29% and -37% last year (a nearly $600,000 of additional yield in a tax-deferred account on an initial $1MM investment in our concentrated SmartKnowledgeU portfolio over the diversification approach). So much for diversification being the wise strategy over an extended period of time (6-1/2 years). Sure as we just stated, last year was a terrible year for gold and silver investors. That is a fact. However, a more important fact is that those that get caught up in the minutiae of these global currency wars and that are unable to piece together the big picture are those that are eternally and easily distracted from realizing the truth by the one-year schemes conjured up by the very politicians and bankers they detest. Those that have the courage to tackle what will undoubtedly become even leaner economic times in future years around the world right now, as I urged people to do at the end of last year (All the Big Banks are Saying that Gold Will Crash in 2014, But That’s Not What Will Happen), and to learn about the truth right now, will be the only ones that flourish. Consider one of the many SmartKnowledgeU Memberships today to help you understand the truth about what is going on today and to provide you with guidance on how to best positions your assets for growth during very limited but yet, outstanding opportunities. These windows of opportunity in 2014 will be very limited in our opinion, and require immediate quick decisions and aggressive action to position yourself correctly for future years.

Below, I present to you “The Five Elements to Understanding Truth About Everything”.  In this video, I have come up with five key elements of human nature that one must understand if one desires to really understand the truth about anything. I speak about each of these separate five elements at length. Please seek out this video on YouTube and read the provided video description on YouTube to gleam the most benefit from this video.

Other related SmartKnowledgeU videos that may interest you:

Why Bankers Want Control of Ukraine

The History of Gold and Silver Clearly Tell Us Where it is Heading in the Future

Does Your Gang Affiliation Prevent You From Thinking Clearly?

The Age of Deceit: The Misappropriation of Our Freedoms

The Photo That Reveals Why US and EU Bankers Despise Russia’s Putin So Much

March 6th, 2014

Below is the photo that reveals why US and EU bankers constantly engage in media campaigns to smear Russian President Putin. As a quick experiment, type “Obama, gold” and “Cameron, gold” into Google images and you will discover that the searches come up empty.  Any similar photos to the one below by US President Obama or UK Prime Minister Cameron would be a massive betrayal of their puppet masters – the BIS, the IMF, the World Bank, the ECB, the BOE and the Federal Reserve.

Simply put, physical gold and physical silver are real money. The US dollar and the euro are not. Enough said.

Russian President Vladimir Putin displays his fondness for gold

Russian President Vladimir Putin displays his fondness for gold

Why Bankers Want Control of Ukraine

March 5th, 2014

We all know about the important military consequences of controlling Ukraine to the US and Russia, but an equally important and overlooked topic is why bankers want control of Ukraine’s monetary supply and ultimately control of Ukraine through controlling its debt (the proposed $1 billion loan from the IMF). All major Western military invasions in the past several years – Somalia, Sudan, Afghanistan, Iraq, Libya and attempts in Syria – involved countries in which the Bank for International Settlements had not yet gained control of the monetary supply at the time of these invasions.

The international banking cartels represented by the World Bank, the IMF and the Bank for International Settlements are unhappy with their low level of influence in controlling the debt of emerging economic powers like China and Russia and know that they very well can’t directly declare war on Russia and China to effect regime change in order to obtain control of their debt as they accomplished with the aforementioned much smaller countries that didn’t have the military strength to withstand a US/EU/banking led invasion. However, these global banking cartels know that they can gain influence through regime change without direct military intervention in the 15 newly independent states of the former USSR a la John Perkin’s Confessions of an Economic Hit Man (or at least this was their first initial thought in Ukraine). Below, JS Kim of SmartKnowledgeU discusses the above neglected topic and the gravity of the growing military escalation in Ukraine at the current time.

 

Studying Gold and Silver’s Past Gives Us a Glimpse of Where We’re Heading in the Future

March 3rd, 2014

The banking-government industrial complex has been pulling the wool over investors’ eyes for years when it comes to getting the masses to keep their savings tied up in ever rapidly devaluing fiat currencies instead of intelligently converting them into the only real money out there – physical gold and physical silver – that has no counterparty risk. Just note the massive 50% collapse of the Argentine peso in less than 5 years, the 40% collapse of the Venezuelan bolivar in one year, and the Ukranian hryvania’s collapse of more than 50% against gold just this year, and the fact that Ukranian banks are now limiting withdrawals to about $100 a day now. Hard as it is to believe, and by now most people have forgotten this fact, but back in 2006, the bankers tried their hardest to sell the world on the notion that the gold bull was dead when gold had climbed to just $620 an ounce. Bankers attempted to misinform people by releasing a flood of anti-gold articles and banker predictions that gold had peaked and that it was going to crash to $250 to $300 an ounce later that year.

In reply to this banker disinformation campaign in 2006, I released a number of emphatic opinions that all the anti-gold propaganda was just that – propaganda – and I even called out the head commodity analysts at some global banks as I waged war against their disinformation campaigns. I believe we can learn a lot about the future of gold and silver today by taking a step back in time to re-visit the bankers’ propaganda campaigns in 2006.

On 3 September, 2006, I released the article: “Gold’s Glitter is Genuine” Read the rest of this entry »

More on this topic (What's this?)
Gold – An Investment That Is Here To Stay
Gold’s Irresistible Forces
Are Events in Ukraine Driving Gold?
Read more on Gold, Silver at Wikinvest

The Banker Purge Continues: Global Banking System Now Operating at DEFCON1

February 21st, 2014

This past week, another JP Morgan banker jumped to his death from a JP Morgan banking office in Hong Kong. With the bodies piling up, we connect the dots in the below video between the mysterious sudden epidemic of high level global bankers committing “suicide” and their achievement of Herculean feats of profit. Ironically (or perhaps with deliberation), two high level JP Morgan bankers responsible for the oversight and integration of JP Morgan’s trading platform committed suicide right before JP Morgan reported a Jesus-like miracle feat of a perfect trading record of profits on every single day of equities trading in 2013, a mathematically impossible feat without the utilization of a criminal and manipulative proprietary trading software platform. Even of greater revelation is that CEO Jamie Dimon felt zero need to instruct his traders to deliberately lose money on several random days in 2013 to reduce the appearance of impropriety. Mr. Dimon’s arrogance in flaunting a perfect trading record in 2013 without experiencing A SINGLE DAY OF LOSSES further serves as a huge indictment of the criminality of US stock market regulators and lawmakers. Perhaps this is the reason why the two JPM bankers that could best prove criminal behavior behind JP Morgan’s perfect, miracle trading record in 2013 are now dead.

Banker “Suicides” & Banker Promises to God

February 11th, 2014

An intriguing week in bankster news last week.

Connect the Dots: The Power of the Lone Dissenter to Produce Positive Change

February 7th, 2014

Today there are literally hundreds of millions of people protesting their economic situations in dozens of countries in every single region of the world. While these protests are valid, and government corruption is the equilibrium state for all governments worldwide, the missing component is the ability of protesters to connect the dots and determine the underlying common denominator in the terrible economic state worldwide that has resulted in the middle class being decimated in the US and the horrific 15% suicide rates among all deaths in the 25 to 34 year old demographic in Spain.

Below we talk about the power of the lone dissenter to connect the dots of global economic disenfranchisement for billions of people worldwide, and why the silence of good people working for morally bankrupt industries is just as powerful an enabler of economic destruction as is the courage of a lone dissenter to re-focus and re-shape protests and revolutions on only the most pertinent and salient of issues.

Other recent SmartKnowledgeU videos:

What the Chinese Yuan is Telling Us, Part 1

What the Chinese Yuan is Telling Us, Part 2Does Your Gang Affiliation Preventing You From Thinking Clearly?#AskJPM Provides Blueprint to Rein in Criminal Bankers

The One Global Bubble We Can NOT Let Pop

 

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A Mission to Mars Illustrates a Coming US Dollar Collapse

January 30th, 2014

“The last duty of a central banker is to tell the public the truth” – US Federal Reserve Vice Chairman Alan Blinder, 1994

 

By now, everyone knows that bankers lie…all the time. They tell one group of clients to sell an asset while secretly telling another group of clients to buy the same asset. They tell other clients to buy assets and then short that very asset behind their clients’ backs. They tell the world they don’t engage in any type of gold swaps nor do they rehypothecate gold, but yet when Germany asks for its 300 tonnes back from the US Central Bank, they respond by telling Germany that they have it all but only return 5 tonnes in the whole of 2013. Five tonnes represents 0.06% of the alleged gold the US Central Bank claims is in deep storage somewhere in the United States.

 

Yesterday the US Central Bank said that they are cutting their purchases of US Treasuries yet again from $75B a month to $65B a month. But as I stated yesterday in our weekly newsletter sent to thousands before the FOMC announcement, “I do not care if the US Central Bank’s FOMC lies later today when they announce policy and if they state they are going to taper QE more just to knock down gold and silver prices again in the short-term, because the REALITY is not only can they not maintain such a policy other than for the very short-term, but that they will eventually need to INCREASE QE just to prevent disaster and all the huge bubbles they have created all over the world from popping.”

 

In today’s world, it simply doesn’t matter what any of the bankers say because the only thing we know to be true is that their words are never to be trusted. The only thing that matters is what bankers are actually doing behind closed doors after spouting propaganda lies to the public. Below, we use a mission to Mars to clearly illustrate the insanity of Central Bank-speak.

 

 

 

Other recent SmartKnowledgeU videos for your viewing pleasure:

War is a Bankster Racket

Does Your Gang Affiliation Prevent You From Thinking Clearly?

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Read more on U.S. Dollar (USD) at Wikinvest

Does Your Gang Affiliation Prevent You From Thinking Clearly?

January 23rd, 2014

Whether we will admit it or not, a lot of us engage in gang member-like thinking that destroys our ability to divergently think, critically think and even consider the truth when the truth challenges the group-think of the “gang”.

Ishmael Cisneros, a member of the notorious global crime syndicate, the Mara Salvatrucha, better known as MS-13, says that once you join a gang, “your mind closes off to the rest of the world and you’re capable of doing anything for the gang…don’t get caught up in the world of gangs, especially for those that think there’s something good in it. It’s all lies.”

Yet many of us that deny we ever engage in the vapid and counter-productive gang mentality that Cisneros describes above unintentionally allow ourselves to be bound by this gang mentality by TPTB that deliberately shuttle people into adopting gang mentality through divide and conquer tactics based upon religious, political, and racial affiliations.

If we are truly honest with ourselves, we will all admit to having engaged in “gang-think” at one point in our lives, and perhaps of still engaging in these counter-productive thought patterns today. It’s time to deconstruct this type of mentality so that we can awaken to the truth and always choose what is best for the greater good of humanity over what is best for our gang only as we move forward. Separating ourselves from gang think will be essential for not only survival but also for a positive mental health state in coming years as Central Banks keep destroying the purchasing power of fiat currencies and people’s struggles all over the world consequently intensify.

 

Is Germany’s Gold Housed in New York, Paris and London All Gone?

January 7th, 2014

foreward by JS Kim, Managing Director of SmartKnowledgeU

Below is a recent correspondence from our friend Lars Schall, an independent financial journalist, and the German Central Bank, the Deutsche Bundesbank, regarding the exact whereabouts and specifications of Germany’s national gold reserve. From the correspondence below, it appears that the US Central Bank had already leased out Germany’s gold reserves in prior years and no longer has it, as the gold bars the US Central Bankers returned to Germany last year were clearly not the same ones that Germany originally deposited with them. The questions Mr. Schall’s revelations now beg is (1) if the Banque de France and the Bank of England have Germany’s original gold as well; and (2) if the various Central Bankers are deliberately returning Germany’s gold on a painfully slow timeline because they have already leased out Germany’s gold into the open market in prior years, no longer hold it, and must therefore scrape together Germany’s gold from the open market now.


Below is Mr. Schall’s inquiry to the Deutsche Bundesbank: Read the rest of this entry »

More on this topic (What's this?) Read more on Gold, Investing in Germany at Wikinvest

Bankers Planning to Raid Gold Futures This Week?

January 6th, 2014

bankers raid gold futures markets

 
This week is a big economic statistic reporting week for the US economy. On Wednesday, at 8:15 AM NY time, the ADP employment number will be released, which represents data from about 24 million employees from 19 of the major North American Industrial Classification (NAICS) private industrial sectors. This number will then be followed by release of the US Central Bank’s Open Market Committee’s (FOMC) minutes at 2 pm NY time. Then on Thursday, the US will release at 8:30 AM weekly jobless claims data and end the blitz of economic data by releasing non-farm payroll and unemployment rate data at 8:30AM NY time on Friday.

I must warn you that the US Federal Reserve, the Bank for International Settlements, and the bullion banks have always sought to raid the gold futures markets during times of heavy and significant economic statistic releases, and I don’t believe that this week will be any different, especially given the US Administration and the banking cartel’s desperation to keep selling their story of a “continued economic recovery” in 2014. For example, Credit Suisse incredulously just released an article predicting a bull market in the US dollar in 2014 and the Times of India just released an article stating that “Gold is no longer a safe investment” because of one bad year that followed 12 consecutive years of rising prices. Imagine if the mass media ran articles declaring “US stock markets no longer a safe investment” after 2008, when the US S&P 500 crashed by 50%, a far worse crash that gold’s 29% decline in 2012. Can’t imagine this ever happening? You’re right, because it never would happen.. What better way to start off the New Year with this continued theme than a major bang in economic statistics and one final raid on gold prices? Thus I believe that there will be some “manufactured” statistics that produce some upside surprises to the consensus forecasts for the weekly jobless claims number (335,000), the nonfarm payrolls data (190,000) or in the FOMC minutes released this week combined with a raid on gold futures to keep deception and misinformation of reality of the public at a high level.

Though gold is currently trading at about $1242 as I write this, don’t be surprised if gold is raided heavily this week again for one final time, even to the sub-$1,150 level, which would represent a $100+ drop from current levels, before then reversing rapidly for good for the remainder of this month.


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