Fund Manager: U.S. Government’s War On Gold Will Fail

Less than 3 weeks after the S&P downgraded US debt in 2011, after gold’s initial spike to $1900, the Government’s renewed war on gold began.  The reason for this is that, in the face of trillions being printed by the Fed and trillion dollar deficits being incurred by the Government, gold was about to take out $2,000.
This was a milestone that would have likely triggered a flood of capital into both physical gold in this country and into the futures. A move like this would have destroyed the credibility of the U.S. dollar as the world’s reserve currency. It further would reflect the actual truth regarding the collapsing economic/financial condition of the United States.
To keep this from turning into an event that would hinder Wall Street and the Government elitists from completely looting the wealth from our system, they had to implement a massive program of market intervention in order to take down the price of gold and eliminate the signal it was sending to the world that the U.S. is in a state of slow collapse.
Your only defense against the poisonous cesspool swirling beneath the carefully crafted facade of lies and disinformation – short of just leaving the country – is to move as much of you liquid wealth as you can into physical gold and silver. Because when the U.S. Government’s war on gold is finally forced into capitulation, the collapse of our system will be unlike the collapse of any other superpower power nation in history.

Submitted by PM Fund Manager Dave Kranzler, Investment Research Dynamics

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Before I turn to the title topic, I wanted to mention that one our portfolio holdings, Chaparral Gold, is being acquired for $66 million in an all cash deal.  The price represents about a 20% premium to yesterday’s closing price.  Chaparral is a Nevada-based junior exploration company which potentially has several million ozs of gold.  I bring this up because one of my research report ideas is actually up 12% since this latest attack on gold started in mid-July and since the time I posted the report at the end of August.  I plan on redeploying some of gains from Chaparral into more of this stock today.  The stock is getting hit today in this general equities melt-down and I think it’s a great time to start, or add to, a position.   You can access the report by clicking on Mining Stock Reports or on this logo:
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My friend, colleague and technical analyst extraordinaire Nick of DenaliGuide’s Summit drew my attention to an incredible correlation between the credit rating downgrade of the U.S. Government’s Treasury debt and the renewed war on gold.  He actually sourced the idea from the Wealth Watchman blog and I find it to be an extraordinary insight.

The Egan-Jones ratings agency, which I have found to always have been the most authentic and credible – and the only one that has not sold out to Wall Street –downgraded the U.S. from AAA to AA+ on July 18, 2011.   The price of gold was roughly $1570 and it abruptly ran up close to $100 by August  6, 2011, which is when S&Pdowngraded the U.S. from AAA to AA+.  Moody’s, of course being owned by Warren Buffet and who is of one the Government’s puppeteers and infinitely unethical and corrupt, has never downgraded the U.S. debt rating.   After the S&P downgrade, gold quickly spiked up and over $1900 and the fate of the U.S. dollar was in question.   This graph below shows the time sequence of events (click to enlarge):

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In less than 3 weeks after the S&P downgrade, after gold’s initial spike to $1900, the Government’s renewed war on gold began. The reason for this is that, in the face of trillions being printed by the Fed and trillion dollar deficits being incurred by the Government, gold was about to take out $2,000. This was a milestone that would have likely triggered a flood of capital into both physical gold in this country and into the futures. A move like this would have destroyed the credibility of the U.S. dollar as the world’s reserve currency. It further would reflect the actual truth regarding the collapsing economic/financial condition of the United States.

To keep this from turning into an event that would hinder Wall Street and the Government elitists from completely looting the wealth from our system, they had to implement a massive program of market intervention in order to take down the price of gold and eliminate the signal it was sending to the world that the U.S. is in a state of slow collapse.

As a testament to the war on gold and on any person or entity trying to expose the truth, S&P’s President was forced out of office just two weeks after the ratings downgrade:  LINK. In October, Egan Jones was notified by the SEC that it was looking into some supposed false information given by Egan Jones in connection with the rating agency’s  regulatory application which would enable the firm to issue ratings on sovereign debt.  See the connection here?  The SEC didn’t seem to have a problem with EJ’s filing until EJ started downgrading the U.S. Government’s debt rating.

Undeterred, Egan Jones further downgraded the U.S. rating from AA+ to AA on April 5, 2012.  On April 24, 2012, the SEC formally filed charges against Egan Jones.  These are charges, mind you, that were based on immaterial cause of action and probably could have been enforced against both Moodys and S&P.   In a final “middle finger” move, Egan Jones further downgraded the U.S. debt rating to AA- on September 14, 2012.  On January 22, 2013, Egan Jones was barred from rating U.S. debt for 18 months.

For point of reference and a testament to its ratings acumen and skill,  Egan Jones was the first rating agency to downgrade Enron’s debt before Enron spiraled into a bankruptcy engulfed with fraud and corruption.  Moody’s, of course, did not downgrade Enron until it actually hit the wall.

I wanted to over this history because it exemplifies the lengths to which the U.S. Government will go to defend the U.S. dollar and the Treasury’s ability to issue cheap, albeit fraudulent, debt.  But it can’t have either if the price of gold is moving inexorably higher, which it was about to do in September 2011.  Enter the war of gold.

The war on gold is the Government’s war on truth about the decay and corruption which has completely overtaken our system of big business, finance and Government.  But, like all attempts by Governments throughout history to control and change to laws of nature and economics, this too will fail.   When it does, the U.S. will be left exposed for the fraud that its system has become:   trillions upon trillions of Government and private sector debt that will never be reduced let alone repaid,  entitlement obligations (social security, pensions, medical care, etc) and a financial/economic system teetering on a foundation of complete fraud and unchecked criminality.

It may not seem like it right now, but your only defense against the poisonous cesspool swirling beneath the carefully crafted facade of lies and disinformation – short of just leaving the country – is to move as much of you liquid wealth as you can into physical gold and silver.  Because when the U.S. Government’s war on gold is finally forced into capitulation, the collapse of our system will be unlike the collapse of any other superpower power nation in history.

 

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