Thursday, April 08, 2010

"The largest fraud in history"?

No i'm not talking about the Federal Reserve, but that wouldn't be a bad guess.  According to precious metals trader turned whistleblower, Andrew Maguire, the price of silver and gold has been manipulated. An insider to the industry, Maguire has decided to go public with his insights forsaking his own personal profit opportunity and if you believe some accounts even his own life maybe in danger.

I don't pretend to understand the details of how the commodities exchanges work, however he does present a believable case in this interview available here.  As i understand the accusation, just as the Federal Reserve inflates the supply of fiat currency in circulation by fractional reserve banking, the metals exchanges like Comex and LBMA have been selling 100 shares for every ounce of gold they have on reserve.  The purported purpose of this is to deflate the price of gold and silver at will to make investing in precious metals as a hedge against a weak fiat currency very unprofitable.  In the end this manipulation would supposedly provide an artificial reinforcement to dollar. This ponzi scheme leaves the financial markets vulnerable to a "Run on the Bank" in the worlds largest commodity market and if that were to happen a devastating collapse of the dollar.

So if you're looking for a way to hasten the collapse of the empire, maybe it could be as simple as selling your Gold and Silver ETFs and taking physical delivery of your precious metals!

Be sure to check out the interview with Maquire and Adrian Douglas of GATA, and here's a fun video from Russia Today that helps to understand the story:

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