Guest Post: Fecks, Lies and Video Tape [or the Cabal Channel]

Tyler Durden's picture

Submitted by Rob Kirby

Fecks, Lies and Video Tape [or the Cabal Channel]

The
purpose of this article – it’s an attempt to bring some transparency to
what’s really happening in the precious metals complex by underscoring
the words and actions of players in the Central Banking community.  Attention
is drawn to the fact that these elitists lie as a matter of policy but
are prone to making simple mistakes like all humans do.  Specifically,
light is shone on the degree to which these same elitists will go to
keep their surreptitious market activities ‘secret’ and their
irredeemable fiat currencies viable.

 

In December, 2010 – I wrote a paper titled, Something’s Wrong in the Silver Pit, and It’s Much Bigger than J.P. Morgan.  This
paper highlighted how the Federal Reserve had stonewalled the Gold Anti
Trust Action Committee’s [GATA’s] FOIA requests for information on Fed
activity in the gold bullion markets – citing, as an excuse, its
‘privileged status’ and reluctance to divulge ‘trade secrets’

 

The
paper made comparisons between bullion data published by the U.S.
Office of the Comptroller of the Currency [OCC] and bullion data
published by the Bank For International Settlements [BIS], based in
Basel, Switzerland.

 

Whether
looking at the OCC data or that published by the BIS – the overwhelming
conclusion was that the “then prevailing” gold / silver ratio [at 49:
1] was a contrivance. This math indicates that a disproportionate
quantity of silver relative to gold derivatives existed – indicative of
major silver market manipulation.  Here’s the BIS data used:

 


source: http://www.bis.org/statistics/otcder/dt21c22a.pdf

This was illustrated by posing the question:  If
there is a total of 417 Billion notional in Gold derivatives
outstanding – AND THE GOLD / SILVER Price RATIO is 49:1 – then WHY are
outstanding notional silver derivatives 127 Billion????   These BIS
numbers suggest that the proper gold / silver ratio should be roughly
3.3:1 or silver priced TODAY at 1,400 / 3.3 = 424.00 per ounce. 

Because
the BIS data appeared to be so COMPLETELY at odds with the [then] 49: 1
prevailing gold / silver ratio – I wrote to the BIS’s “PRESS SERVICE”
with the following query:

 

 

From: Rob Kirby [mailto:rkirby@kirbyanalytics.com]
Sent: 23 December 2010 17:48
To: Press, Service
Subject: question

 

Dear Sir or Madame;

 

I
was wondering if you could help explain something I am having a great
deal of difficulty understanding – in the absence of Fraud – that you
reported in one of your latest Derivatives reports:

 

source: http://www.bis.org/statistics/otcder/dt21c22a.pdf

Question:  There
are a total of 417 Billion notional in Gold derivatives outstanding –
AND THE GOLD / SILVER Price RATIO is 49:1 – then WHY are outstanding
notional silver derivatives 127 Billion????   These BIS numbers suggest
that the proper gold / silver ratio should be roughly 3.3:1 or silver
priced TODAY at 1,400 / 3.3 = 424.00 per ounce. 

So,
does the BIS have any comment on the proposition that metals markets
are rigged?  If not, how does the BIS explain the discrepancy in their
own figures cited above?

 

Thanks in advance for your time and consideration,

Sincerely,

Rob Kirby

 

Proprietor, Kirbyanalytics.com

Toronto, Ontario

Canada

Phone:  xxx xxx xxxx

 

The BIS acknowleged receipt of my query, on Dec. 27, 2010, as expressed here:

 

Dear Mr Kirby

 

Thank
you for your enquiry which we have passed your enquiry along to our
Statistics department. Unfortunately the expert who would be able to
respond to your questions is currently not in the office, but you may
expect a response when he returns returns in early January.

 

With best regards

 

Marisa Bourtin

 

Press

Communications
Bank for International Settlements

Centralbahnplatz 2

4002 Basel, Switzerland

 

I
received this “official reply” to my PRESS INQUIREY on Jan. 5, 2011
from an individual who I’ll simply refer to as Mallo [ccing the BIS
Press Service, and another individual]:

 

          Dear Mr Kirby,

 

Many thanks for your email showing interest in our statistics and apologies for our late reply.

 

Concerning
your query, please be informed that the market risk category "other
precious metals" covers not only silver but also other precious metals
like the platinum.
Please
also note that we receive these data from the reporting central banks
already aggregated according to the same broad categories
listed
in the tables published in our website, therefore I am afraid that we
cannot estimate the contribution of the silver contracts, or any other
specific contracts, to the aggregates reported as "other precious
metals".
[in red, RK emphasis]

 

Please note that this information is being provided for your own guidance and it is not for quoting or for attribution.

 

We hope this helps.

 

Best regards

 

 

Mallo

BIS-IBFS

 

If
you have followed along with me so far, note how the BIS replies to
PRESS INQUIRIES with “sweet nothings” - which subsequently, there-after
are shown to be BLATANT LIES - which they then lay claim are not for
quoting or attribution?????  Also, make specific note of the claim, “
Please
also note that we receive these data from the reporting central banks
already aggregated according to the same broad categories.

 

When Sweet Nothings Become Blatant Lies

 

That’s the way things stood – no quotation or attribution until a key revelation surfaced Friday, Feb. 18, 2011.  After
a lengthy dose of “legal footsy” with GATA – the Federal Reserve was
finally compelled to release a document detailing the minutes of G-10
Gold and Foreign Exchange Committee Meeting from 1997 – linked here.

 

Moving on to the minutes of the G-10 Gold Meeting, we can clearly see that the BIS itself is involved in gold LEASING:

 

Gill (Bank for International Settlements), said that the BIS had not sold any gold in many years. The BIS did some leasing,
but kept its participation moderate because it did not want to become
"too big" in [sic] that business and be seen as the liquidity provider
of last resort. He agreed with Smeeton that the market was worried about
central bank selling. He noted that central banks own 30 percent of the
gold ever mined, and that 25 percent of their reserves were in gold.
He posed several questions that now perplexed the market: What was the
posture of central banks toward gold? Would they continue selling it
[sic] will"? Was it possible for central banks to coordinate their sales
programs? Perhaps a pooling of sales? Given the difficulty of finding
buyers in this market, would other central banks be willing to step in
and absorb any oncoming supply?

 

The
United Kingdom’s Plenderleith also speaks of the BIS assembling a paper
with more detailed aspects of the Central Bank gold leasing market to
serve as “Background Material”:

 

Plenderleith
suggested the BIS assemble a paper on the more factual aspects of this
market, not ignoring the leasing market, and for this paper to serve as
background for the Governors discussion in July.

 

So,
now it’s finally confirmed that INDEED – the BIS does possess precious
metals data which IT DOES NOT PUBLISH, and in fact, they HIDE it from
public scrutiny.  In their posted data – there IS NOT and there has NEVER BEEN an “aggregation category” titled, GOLD LEASING.

 

Now
folks, this is where respect for this “Mallo” character and the BIS
goes “RIGHT OUT THE WINDOW” with their off-the-record-lies and prompted
this unpleasant reply from yours truly. and just for fun, I cc’d a bunch
of my friends.  One of them was so intrigued, he wrote an article in his own mother tongue, German, published here.  Needless
to say, they all know exactly who Mallo really is – just so there’s a
good record of this correspondence and that it really happened.

 

          Mallo;

 

http://www.gata.org/files/FedMemoG-10Gold&FXCommittee-4-29-1997.pdf

 

Do you have any idea how information at the above link makes what you told me look like a BLATANT LIE??

 

You made claim that the BIS only receives information aggregated in the way the table displays.  Yet,
in this disclosure cited above – we can CLEARLY SEE that the BIS
possesses much more detailed breakout on precious metals data that it
HIDES – PARTICULARLY as it relates to gold and leasing.  Are
we to now believe that you ONLY MISDIRECT and LIE to the PUBLIC about
Gold but tell the truth about silver and platinum group metals?

 

Mallo, do you and the BIS have that much contempt for EVERYONE?

 

Mallo – instead of LYING TO ME – you should simply have not responded.  You have erred.

 

When
I feel that an institution like the BIS is intentionally LYING and
DECEIVING – I’m sorry, I have no choice but to report on this.

 

Screw you, the BIS and your collective hubris!

 

Best regards,

Rob Kirby

 

Conclusions:

 

Precious
metals prices have been suppressed – as a matter of a closely
coordinated Central Bernaking “edict” by a group of lying, ruthless
elites who fancy themselves as “better and more important than all of
us”.  These elites have captured and control governments.  At
times, they ‘slip up’ and make mistakes – due to their arrogance and
hubris – and they forget or pay little attention to details like the
gold / silver price ratio at 49: 1 when the amount of derivatives
outstanding for the same are more reflective of 8: 1 – exposing the fact
that silver is likely the most mis-priced asset on the planet.  When this is pointed out, the establishment stonewalls if they can, lies if they must or ignores such critique altogether. 

 

The
gold / silver ratio [at the time of writing has narrowed to 42:1] IS
GOING BACK TO WHERE IT BELONGS – somewhere around [give or take] 10: 1.  When this happens it will mark nothing more than a reversion to an historic mean.  Note how there is no assignment of nominal price – expressed in dollars – to silver.  Over
the course of human history, fiat currencies have come and gone BUT for
the biggest chunk of human history – true wealth has been measured in
ounces of gold and silver.  Historical axioms dictate that this is likely to repeat.

 

The
ONLY reason why gold leasing data was hidden by the Central Bernanking
Complex in the first place - is for the reason that LEASED GOLD is “by
definition” SOLD into the bullion market to suppress its price. 

 

This
is why the Central Bernanking Complex – in light of their unlimited
power to print failing fiat currencies – LIES about and conceals data
regarding how much of the “go to” precious metals alternatives are being
DUMPED into the market via the leasing mechanism - to suppress its
price. 

 

Additional
contents of the “just released” formerly secret minutes of the 1997
G-10 meeting – particularly those of the United Kingdom’s Smeeton, as
they relate to Maastricht Treaty Guidelines / Euro qualification – go a
long way to affirming much of the material presented in another recent
paper [subscriber only] titled, Fine Italian Dining, posted at
kirbyanalytics.com.

 

Like it or not, we are ALL engaged in what outspoken commentator Alex Jones refers to so often as an “Info War”.  Lies and deception on the part of officialdom - concerning what money is - run deep.  It
is these lies and deceptions on the part of the Global Banking System –
which holds NO ALLEGIANCE to ANY NATION - that are the root cause of
most of the world’s most pressing issues.  Humanity needs to “come to grips” with this and get the information out.

 

None of this should come as a surprise to any of us.  Remember
folks, it was none other than former Federal Reserve Vice Chairman Alan
Blinder – while appearing on the Nightly Business Report back in 1994 –
issued these prescient words,

 

                  “the last duty of a central banker is to tell the public the truth”

 

Knowledge is power.

 

Physical precious metals are real money.

 

How aware are you and how many ounces do you possess?

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RED BARRON's picture

This reminds me of 6 months ago in August when every TV channel had pics of wheat fields burning everywhere, and wheat goes to new highs, then closes limit down.  Some people just never learn to "play the game".

topcallingtroll's picture

It is a very hard game to play. It takes a lot of.discipline not to chase prices.

jus_lite_reading's picture

Limit down today because there may be fewer humans needing wheat to live in a few weeks...

 

caconhma's picture

It appears to me that the entire "derivatives market" was created for one specific objective: creation of "fiat markets".

In other words, there is no need to have a commodity and securities pricing market exchanges. Central & investment banks can simple "print" gold, silver, oil, corn, etc., It is a perfect tool for equities & commodities markets control & manipulations.

There is only one problem: one cannot eat  "corn derivatives" or "wheat derivatives" or pump a "derivative gas" into a tank of your car.

Hook Line and Sphincter's picture

Silver will become really valuable when the association of FRN$ value to it has no significance.

Weak hands beware!

"Silver at what?" 

tellsometruth's picture

thank you Ron Kirby for telling some truth...

 "exposing the fact that silver is likely the most mis-priced asset on the planet"



Ted K's picture

Ron Kirby isn't a pseudonym for Max Keiser, is it????????

Al Gorerhythm's picture

Ted is a contraction of your full name, right?. I'll bet yours starts with Shit. That explains your thinking.

umop episdn's picture

The Central Bernanking Complex: All your fiat are belong to us. Make your time.

ZH: Launch every Ag and Au. For great justice!

DoChenRollingBearing's picture

The Central Bernanking Complex.

I like that!

Fed delenda est.

Chupacabra1977's picture

The Dow being down 117 points is completely unaacceptable.

Caviar Emptor's picture

Accelerating. Now -140. Ghasp!

Chupacabra1977's picture

Bernanke and Geithner are gonna wait until 3:45pm to push their little

red button and save the day!

jus_lite_reading's picture

We will see the PPT (aka Kamikazi Ben) get to work later in the day. For now, they need to make the markets at least look like they are functioning some what. If what is occuring now took place 20 years ago, I am certain, the markets would have been halted for the day and perhaps tomorrow as well.

As I said, what good is a rising stock if you can't sell it? Nothing. I own not a single stock as of last year. "Physical" means it is mine. Tangible items folks, are necessary. 

Caviar Emptor's picture

You have a lot of faith in Bernank's. He can't save the world, despite  what he dreams at night

Cognitive Dissonance's picture

Thank you once again Mr. Kirby for publicly refuting one of the Big Lies. It's sad really that exposing the lie is still required when so much evidence has been accumulated to convince everyone other than those who are paid to deny or lie (as well as those who just wish to sleep) that the Big Lie has no clothes.

But then again we aren't talking about just another lie, are we? What we're really talking about here is what's supporting the lies. We're talking about a belief system that all of us, even among those of us who have divested into PMs and/or commodities, are dependent upon. In so many cases our lives, or at least our standard of living, depend upon believing the lie long past its expiration date.

This Big Lie will be allowed to die only when a new one has been constructed strong enough to handle the shifted load. That is until nothing can and it all falls down.

kote's picture

Really?  My money is "irredeemable"?  What about all of the things I redeem it for daily?

And no, I didn't read the rest of the article.

nonclaim's picture

Just wait until you hear "oh, we don't accept these here".

The enlightenment will come as a thunderbolt...

disabledvet's picture

you are a cat indeed.  i will not feel enlightened when my money is worthless.  nor will all the urban dwellers that will be forced to "decamp to the countryside" as a consequence.  having listened to Scott Brown "beware the camp counselor" seems like a good modus operandi.

HoofHearted's picture

Those FRNs used to be redeemable everywhere. Now even our neighbors to the north won't take them in a smallish transaction. And forget about trying to use the USD in Europe, unless you are in an airport.

Since they are nothing but fiat, they are not redeemable at the Treasury for something else of actual value. I've been exchanging mine for much more valuable objects any chance I get.

Al Gorerhythm's picture

There's a difference between redeemable and exchangeable. As for its exchange value; try placing one under a mattress or in a bank for 30 years and find out how exchangeable for goods they are.

A credit note (FRN, cheque) when presented at the clearing house, must be backed by something for it to be (re)deemed as trustworthy.

RockyRacoon's picture

And no, I didn't read the rest of the article.

I like you!  At least you admit your ignorance.  That's a bit better than most folks who are bull-headed and try to bluff their way through a rational argument.   You prove that "sheeple" come in different types, other than those who stare at the DWTS and other pablum on the tube.   You are here!  Showing that ignorance knows no media bounds.

Caviar Emptor's picture

Central Bank Cartel is weakening as rifts appear: East v West, Developed V Developing, Surplus v Bankrupt, Gold Accumulating v Gold Depleting.

I've said it: Gold is the ultimate barometer of the Central Banker Pinocchio Factor: the more they lie, and the greater the implications of such lies, the higher the gold price will go. There's a premium being built in that somehow the lies may come to light and blow up the delicate and tangled web they've weaved, a web of a gazillion little private deals and promises and  diminishing credibility

Dr. Porkchop's picture

They're like the mafia. They've got all their honor among thieves bullshit, until one of them has their back against the wall. Then they turn on each other.

disabledvet's picture

i don't recall South Africa declaring force majuere.  i think the place's name was "Libya."

Al Gorerhythm's picture

Did you stop one in the head?

Caviar Emptor's picture

Gold the only safe place to be today.....very telling indeed

tickhound's picture

Go back to bed America... Only conspiracy theorists believe "powerful people might get together and have a plan" - Carlin

DosZap's picture

Funny line, odd that most do not understand it only takes two parties to form a conspiracy.

tired1's picture

The correct PC term these days is: co-conspiracy. There are no longer any conspiracies.

Commander Cody's picture

And just how are we going to correct this fraud?  When fraud is now legal?

apberusdisvet's picture

The real question, obviously, is when does true price discovery occur or do we have to wait for the final implosion?  Or does the FED keep pumping moey ad infinitum to the fraudsters?

jus_lite_reading's picture

Give it a few weeks. My silver to $40 in 3-4 weeks is almost 3 weeks early...

bingaling's picture

It is happening in silver . The commodities drop off along with stocks are a last attempt to get silver down. I believe JPM is in over their head . This is the hail mary so the comex doesn't default . That is what is on the table and that is why there seems to be scared money . The only other thing that could cause these bizarre events in markets is  something big is going to unwind in Italy and effect everything across the board .US bond prices arent screaming deflationary event and neither is the dollar . So in my opinion this is an SOS(save our shorts ) from JP and possibly other TBTF 's working in collusion .

topcallingtroll's picture

They may not want to disaggregate the data publicly but platinum and palladium volume could account for a lot of it. It could be the vast majority of it. I need more info than this before i scream silver conspiracy. Silver is such a small illiquid market it could hardly matter to the big boyz. What reason for banks to favor the SUA?

Al Gorerhythm's picture

but platinum and palladium volume could account for a lot of it.

Plat and Pal are very tiny markets compared to silver. Unless they have been mining secret, major high grade deposits like mad these last years, adding unreported supply, then I suggest you do your homework instead of making assumptions. In other words, these markets are too small to write copious amounts of derivatives against.


Oh regional Indian's picture

Precious Metals indeed.

The name says it all.

Munny just does not quite cut it.

ORI

http://aadivaahan.wordpress.com/2011/02/21/through-a-lens-darkly/

Caviar Emptor's picture

We're having a biflationary melt-down today: Oil up sharp, Housing down hard. That realization is huge bearish for a 'recovering' economy. It's a gut punch. All that's going on in the world says that, yes, it's a trend and yes, it will get worse. Maybe a whole lot worse.

Most important, it's a clear signal of the failure of Bernank and global Central Banker's policies. Their little experiment is blowing up 

Rogerwilco's picture

Why the big surprise and the conspiracy theory BS? This is just a replay of Q3 2008, when commodities got hammered and margin calls forced a waterfall of selling. Hedgies heading for the exits and putting their profits in the USD.

Caviar Emptor's picture

Sorry, USD floundering today very noticeably in the face of a big meltdown. Been all over this one. It's a break in the pattern that we've been seeing for 3 years. Lots of money went into gold. It's a reflection of a loss of faith that the Fed's "treatment" is actually worse than the disease itself. 

RockyRacoon's picture

Rogerwilco... and out.   You shoulda perused the entire market before commenting.

Dr. Gonzo's picture

I've always felt in my gut that most things aren't as they appear in this world. Gold confiscation througout history tells us how important and powerful it is. Ending silver coin for circulated money spoke volumes in 1964. These things are the elephant in the room. Without gold/silver money I will never trust my govenment. Giving our elite the power to declare a piece of paper legal tender and letting them print as many as they want and forcing the subjects work and pay debt in them by theat of imprisonment is immoral and tiranical. I hold as few dollars as I need to because I refuse to participate.

Al Gorerhythm's picture

It only takes time to out the truth. History is replete with the strategies used by those in a position of power, who are able to maneuver their assets into a favorable position, before the re-pricing event and before the counter-parties (masses) wake up.

Misstrial's picture

"Precious metals prices have been suppressed – as a matter of a closely coordinated Central Bernaking “edict” by a group of lying, ruthless elites who fancy themselves as “better and more important than all of us”.  These elites have captured and control governments."

"Why Does the World Feel Wrong" - article about psychopaths being in control here:

http://www.strike-the-root.com/91/groves/groves1.html

 

~Misstrial

Bansters-in-my- feces's picture

Save a golf ball,club a banker.