Remember, the purpose of Quantitative Easing is to support the balance sheets of a few over-sized banks and to finance the federal budget deficit at an artificially low rate of interest. In other words, QE supports failed banks and federal fiscal irresponsibility. In order to successfully carry off this blatant misuse of public policy, the price of gold, a measure of the dollar’s value, must be suppressed. The Federal Reserve’s lack of integrity speaks volumes about the corruption of the US government (source link is below).
By PM Fund Manager Dave Kranzler, Investment Research Dynamics:
Yes Barack, America is “exceptional” – exceptionally corrupt.
For the last two and half weeks, American investors woke up in the morning to find that the S&P 500 futures had ramped up a lot higher and gold/silver futures were slammed in overnight trading. Without determined market intervention by the Fed and its agent banks, the probability of 12 successive overnight gains in the S&P 500 futures and concomitant sell-offs in precious metals futures is exceptionally low, especially in the context of several deteriorating economic and earnings reports released during the month of March.
The primary reason for the massive intervention in the gold market by the U.S. Government/Fed was to support the U.S. dollar, which was on the verge of a rapid sell-off. Dr. Paul Craig Roberts and I co-authored an article detailing how and why the Fed implemented a motivated and blatant gold market intervention operation during March: The Federal Reserve Has No Integrity.
It is going to become more difficult for the Fed/Wall Street to try to cover-up the deteriorating economy by blaming it on the “Polar Vortex.” As the Fed/Govt becomes more desperate to hide the truth, the lies and market manipulations are becoming more obvious.
With Comex gold futures open interest now back to low levels not seen since April 2009, plus the non-NATO countries accelerating the liquidation of their U.S. dollar reserves, gold is now set-up for huge “snap-back” move higher. Despite financial media propaganda to the contrary, China’s gold accumulation YTD exceeds last year’s so far. Plus it looks like the Indian Government (which came out in support of Russia’s position on Ukraine/Crimea) is going to start relaxing gold import controls.
The ingredients are in place for a very interesting year for gold/silver. We got a preview of this in the first two months of the year, before the Fed stepped in to force gold lower, for now.