QUESTION: Mr. Armstrong you make very good arguments about markets not being manipulated for long vs the trend, yet then you post that Goldman jailed you and had their programmer jailed so they could manipulate markets.
ANSWER: The Goldman accusation against the programmer who stole code that it could be used for manipulating markets was their allegation and I found it strange that we should expect that Goldman would never use this for such a task.
There is a SUBSTANTIAL difference between short-term manipulation and SYSTEMIC manipulation. I really do not get why people insist that only gold is suppressed in such a manner. The only explanation is that this is an excuse for being WRONG and for totally not understanding how markets function.
Of course the bankers moved to short-term manipulations. They have been caught in just about every market right up to LIBOR interest rates and don’t forget the Solomon Brothers US Treasury Manipulation of 1991.
Yet this bullshit about explaining why gold is down BECAUSE of such schemes is made up by people who either have a hidden agenda or are outright ignorant of how markets trade. Bankers switched from relationship banking to transactional. They sold this idea to repeal Glass-Steagal. They argued that they would NOT hold positions, just originate them and resell them. If they do not want to hold positions like that on their books, WHY in hell would have have perpetual short positions that they would never take a profit on? The argument is insane.
Short-term manipulations have bee the name of the game. I monitored everyone and had tapes backing up every such manipulation and who was behind each one from silver, interest all the way to platinum and rhodium. What is so hard to understand that they are only interest in PROFITS on a quarterly basis.
The US Treasury held gold auctions all the way into the 1980 desperately trying to stop the rally and the fall in the dollar. They could not stop that rally with all their sales. The market took the new price at the auction as confirmation it was worth that and rallied further. It was the paper-gold that led the way.
The code allegedly stolen from Goldman perhaps could be used to manipulate markets short-term – never SYSTEMICALLY long-term. If this nonsense were true, then Bretton Woods would not have collapsed, Soros would not have been famous from the break in British pound peg, and just recently the Swiss PEG should still be in place. NOTHING but NOTHING can be SYSTEMICALLY manipulated. It is called the free markets. By this constant harping that gold is SYSTEMICALLY manipulate is pure Marxism. It was Marx who argued government can manipulate society to create the perfect economy eliminating the business cycle.
The business cycle has withstood countless attempts to manipulate it. QE1-3 just failed to produce inflation. Two former Fed Chairmen have stated that the business cycle always wins. If you want to believe in gold, then why bother if it can never go up? Why not buy something that is then not manipulated and you can make money on? Why hold on to positions that you lose money and then whine you always lose because it is manipulated by some giant conspiracy? You just do not grasp that everything has its time and place.
In Ukraine the currency keeps declining despite loans from the West. Why? The people have lost confidence in the government and then there is war. There are food riots in Kiev. People are running out any buying food because they now feel that the price of food will only go higher.
It is always about confidence. The best manipulations have ALWAYS failed. The bankers would not run to government for bailouts if they could SYSTEMICALLY control anything. So if you are happy losing money and having someone to blame, then you do not need to read this blog.