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Why Is Gold Crashing?

George Washington's picture




 

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Gold Crashes Most in 30 Years … What Does It Really Mean?

Gold has fallen off a cliff.   It has fallen faster than at any time in the last 30 years.

Zero Hedge notes:

Adding insult to injury, the Shanghai Gold Exchange overnight announced that following the tumbling precious metal prices and limit down drop in early trading, it may raise trading margins for its gold and silver forward contracts.

(Margin calls tend to trigger further selling.)

Some Say It Is a Good Time to Buy

While most financial advisers are screaming “sell!”, there are some well-known contrarians.

For example, Bill Gross still recommends buying gold.

Marc Faber says:

“I love the fact that gold is finally breaking down because that will offer an excellent buying opportunity” …. “The bull market in gold is not completed.”

John Hathaway of Tocqueville Funds (with $10 billion under management) says that the selloff in gold is “a contrarian’s dream scenario”:

The evidence shows strong macro fundamentals for gold, investor sentiment at a negative extreme and compelling valuations in the mining shares. It seems like a contrarian’s dream scenario to us.

And Zero Hedge notes that – from the perspective of technical analysis – gold is the most oversold it has been in 14 years.

The Bearish Explanation

But why has gold crashed?

Bloomberg blames:

  • “Optimism that a U.S. recovery will curb the need for stimulus”; and
  • “The prospect that beleaguered members of the euro zone might be forced to sell gold to raise part of the funding, and there are much bigger holders in that category than Cyprus.”

Citigroup opines:

Gold decline may have been related to some break in technical levels and the general improvement in global risk appetite.

Business Insider argues:

[Gold's price collapse] vindicates the economic ideas of the economic elites.

 

***

 

To respond to the economic crisis, economists and mainstream policy makers have favored highly unusual policy measures (massive Fed balance sheet expansion, massive stimulus, etc.). These ideas are usually based on years of traditional economic research (Keynesianism, monetarism, etc.).

 

All of these ideas have been slammed by heterodox types like Austrian economists, who have warned of hyperinflation, and gold going to $10,000.

 

So the collapse in gold is not about gold, but about vindication for a large corpus of belief and economic research, which has largely panned out. It’s great that our economic elites know what they’re talking about, and have the tools at their disposal to address crises without creating some new catastrophe.

 

Things aren’t great in the economy, but the collapse/hyperinflation fears haven’t panned out, and the decline in gold is a manifestation of that.

Barry Ritholtz writes:

History shows Gold trades differently than equities. Why? It comes back to those fundamentals.

 

It has are none.

 

This is not to say gold is not affected by Macro issues. But that is very different than saying Gld has a fundamental value, an intrinsic worth. It does not. That led to this heretical advice: Gold is not, and can never be, an investment. It has no true intrinsic value, no cash flow, no earnings, no coupon. no yield. What people call fundamentals are nothing more than broad macro analysis (and how have your macro funds done lately?). Gold is the ultimate greater fool trade, with many of its owners part of a collective belief theory rife with cognitive errors and bias.

 

I do not want to engage in Goldenfreude — the delight in gold bugs’ collective pain — but I am compelled to point out how basic flaws in their belief system has led them to this place where they are today.

 

Gold does trade technically, and is especially driven by the collective belief system of the crowd. When that falter, well, you know what happens . . .

The Gold Bugs View

Gold bugs, on the other hand, see things quite differently.

Andrew Maguire says that the crash is solely in the paper gold market … and that there is actually a shortage of physical gold. Many other sources make the same claim.

Egon von Greyerz – founder and managing partner at Matterhorn Asset Management – argues:

They shouldn’t be concerned about the temporary pressure on gold.  This decline has nothing to do with the physical market because enormous demand for gold continues.

 

The paper market in gold is not a real market, and at some point in the near future paper gold holders will wake up and realize they are holding are worthless pieces of paper.  This is when the world will witness one of the greatest short squeezes in history as investors panic in to physical and the price of gold explodes to the upside.”

London bullion dealer Sharps Pixley thinks that the crash was largely initiated by a single entity:

The gold futures markets opened in New York on Friday 12th April to a monumental 3.4 million ounces (100 tonnes) of gold selling of the June futures contract in what proved to be only an opening shot. The selling took gold to the technically very important level of $1540 which was not only the low of 2012, it was also seen by many as the level which confirmed the ongoing bull run which dates back to 2000. In many traders minds it stood as a formidable support level… the line in the sand.

 

Two hours later the initial selling, rumoured to have been routed through Merrill Lynch’s floor team, by a rather more significant blast when the floor was hit by a further 10 million ounces of selling (300 tonnes) over the following 30 minutes of trading. This was clearly not a case of disappointed longs leaving the market – it had the hallmarks of a concerted ‘short sale’, which by driving prices sharply lower in a display of ‘shock & awe’ – would seek to gain further momentum by prompting others to also sell as their positions as they hit their maximum acceptable losses or so-called ‘stopped-out’ in market parlance – probably hidden the unimpeachable (?) $1540 level.

 

The selling was timed for optimal impact with New York at its most liquid, while key overseas gold markets including London were open and able feel the impact. The estimated 400 tonne of gold futures selling in total equates to 15% of annual gold mine production – too much for the market to readily absorb, especially with sentiment weak following gold’s non performance in the wake of Japanese QE, a nuclear threat from North Korea and weakening US economic data.

 

***

 

By forcing the market lower the Fund sought to prompt a cascade or avalanche of additional selling, proving the lie \; predictably some newswires were premature in announcing the death of the gold bull run doing, in effect, the dirty work of the shorters in driving the market lower still.

Gold Core’s Mark O’Byrne agrees.

James Rickards thinks the Fed is manipulating the gold market (and every other market).

Former assistant Treasury Secretary Paul Craig Roberts says:

Rapidly rising bullion prices were an indication of loss of confidence in the dollar and were signaling a drop in the dollar’s exchange rate. The Fed used naked shorts in the paper gold market to offset the price effect of a rising demand for bullion possession. Short sales that drive down the price trigger stop-loss orders that automatically lead to individual sales of bullion holdings once their loss limits are reached.

 

***

 

According to Andrew Maguire, on Friday, April 12, the Fed’s agents hit the market with 500 tons of naked shorts. Normally, a short is when an investor thinks the price of a stock or commodity is going to fall. He wants to sell the item in advance of the fall, pocket the money, and then buy the item back after it falls in price, thus making money on the short sale. If he doesn’t have the item, he borrows it from someone who does, putting up cash collateral equal to the current market price. Then he sells the item, waits for it to fall in price, buys it back at the lower price and returns it to the owner who returns his collateral. If enough shorts are sold, the result can be to drive down the market price.

 

***

 

Bullion dealer Bill Haynes told kingworldnews.com that last Friday bullion purchasers among the public outpaced sellers by 50 to 1, and that the premiums over the spot price on gold and silver coins are the highest in decades. I myself checked with Gainesville Coins and was told that far more buyers than sellers had responded to the price drop.

 

***

 

In addition to short selling that is clearly intended to drive down the gold price, orchestration is also indicated by the advance announcements this month first from brokerage houses and then from Goldman Sachs that hedge funds and institutional investors would be selling their gold positions.

 

***

 

I see the orchestrated effort to suppress the price of gold and silver as a sign that the authorities are frightened that trouble is brewing that they cannot control unless there is strong confidence in the dollar.

Roberts also says:

This is an orchestration (the smash in gold).  It’s been going on now from the beginning of April.  Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance.   Then, a couple of days ago, Goldman Sachs announced there would be further departures from gold.  So what they are trying to do is scare the individual investor out of bullion.  Clearly there is something desperate going on….

Indeed, this may tie into the Federal Reserve leak of insider information.  Specifically, Roberts writes:

The Federal Reserve began its April Fool’s assault on gold by sending the word to brokerage houses, which quickly went out to clients, that hedge funds and other large investors were going to unload their gold positions and that clients should get out of the precious metal market prior to these sales. As this inside information was the government’s own strategy, individuals cannot be prosecuted for acting on it. By this operation, the Federal Reserve, a totally corrupt entity, was able to combine individual flight with institutional flight. Bullion prices took a big hit, and bullishness departed from the gold and silver markets. The flow of dollars into bullion, which threatened to become a torrent, was stopped.

As Congressman Grayson pointed out in a recent letter, right after the Federal Reserve’s Open Market Committee leaked valuable inside information to big banks, Goldman told its clients:

We recommend initiating a short COMEX gold position ….

Background on gold manipulation.

 

 

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Tue, 04/16/2013 - 10:25 | 3456085 auric1234
auric1234's picture

of course, this doesn't explain the falls in all the other commodities, unless these are "cross rates" whose gaps are traded as pairs.

Or diversified commodity funds.

 

Tue, 04/16/2013 - 10:26 | 3456091 auric1234
auric1234's picture

Btw the copper fall is extremely bizarre right after the biggest copper mine in the world shuts down. I think a big correction is overdue.

http://www.news.com.au/world-news/huge-landslide-shuts-kennecott-utah-co...

 

Mon, 04/15/2013 - 21:11 | 3454227 MeelionDollerBogus
MeelionDollerBogus's picture

ABSURDLY, recommending a comex short?

My goodness, if the market will move so much use a gld put to the downside or gld call to the upside, or consider the possible moves of SLV calls long-side (slv puts, sure, but I doubt movement will be enough to justify it).

I wouldn’t recommend a comex anything after MF Global…. Jus’ sayin - http://i41.tinypic.com/i3tk44.png

Mon, 04/15/2013 - 21:09 | 3454204 Walt D.
Walt D.'s picture

"Gold has no intrinsic value"

At least you will be able to use a $100 bill as toilet paper.

Mon, 04/15/2013 - 20:44 | 3454037 JimS
JimS's picture

These few "monster" sell orders in the Gold pits, that kicked off the "price" fall in Gold, how actually do they do that? When I traded commodities years ago there were limits to how many contracts you could own, trade at any point in time, and how many contracts could be controlled, just ask the Hunt brothers. Folks, relax, I know the answer, there are no rules anymore, in anything, if you have enough power. Own your phyiscal, be able to hold it, and fuck the paper games.

 

Mon, 04/15/2013 - 20:27 | 3453976 MGA_1
MGA_1's picture

Confidence has been broken and everything is down....

Mon, 04/15/2013 - 20:27 | 3453968 blindman
blindman's picture

if.... then you are an idiot. " j.w.
,
Jim Willie interview April 15 2013 about the metal smash down - Real physical
http://www.youtube.com/watch?v=c5rZlkoDZKQ

Mon, 04/15/2013 - 20:25 | 3453947 blindman
blindman's picture

http://silverdoctors.com/cnt-sold-out-of-all-physical-silver/
.
*UPDATE: ALL US WHOLESALE SUPPLIERS ARE NOW SOLD OUT OF EVERY OUNCE OF PHYSICAL SILVER &
HAVE SUSPENDED ALL SALES! SDBullion.com has closed due to lack of ANY AVAILABLE SILVER!

Two of the largest wholesale suppliers in the US, including Amark and CNT, who is the
supplier of gold blanks to the US Mint for Gold Eagles, and is a registered COMEX
depository, HAVE JUST SOLD OUT OF ALL PHYSICAL SILVER!!!
.
p
... and it's gone.

Mon, 04/15/2013 - 22:09 | 3454577 Gringo Viejo
Gringo Viejo's picture

@ blindman Just requested an "ask" at my local coin shop for Silver Eagles. Initial response "$3.00 over spot". I Said "I'll take all you have." Response: "Hold please".    When "Robin" came back on the phone...."Sorry sir. We have no Eagles......we have no bullion.....we have $62 of junk silver @ $22 X face value."

Mon, 04/15/2013 - 22:41 | 3454745 blindman
blindman's picture

I was at a shop today and told the suppliers are closed,
no deliveries are scheduled. all product in the shop with
a very few exceptions, no silver bullion, has been sold and
awaiting payment and pick up. not for sale. no means available
in the shop for price discovery as deliveries and product
unavailable. that is it. call tomorrow and we may have
an update.
.
there seems to be product available on line, some claiming
shipping 5/3/13 soonest for silver bullion.
.
limited supply is definitely a factor in current sales and is smashing into the published price and what is accepted as usual premium/s.
.
there may be stored product that has been committed to sale
at a price that is awaiting pick up but the price agreed upon
has been violated by the steep paper price decline causing a
dislocation in trust of the customer by the dealer and with
good cause. it would be good to hear the perspective of a dealer
on this point.
.

Mon, 04/15/2013 - 20:19 | 3453924 ebworthen
ebworthen's picture

Business Insider's take that the Keynesians have succeeded is truly comical.

Succeeded?  What about that $16+ Trillion in Debt and $65+ Trillion ($225 Trillion?) of unfunded liabilities?

Central Banks are resorting to outright currency debauchery and stealing depositor's money - but somehow they have succeeded?

FUNNY!

Mon, 04/15/2013 - 20:22 | 3453936 otto skorzeny
otto skorzeny's picture

joe weaselthal will say/do anything to get on CNBC's shit show.

Mon, 04/15/2013 - 19:37 | 3453738 blindman
blindman's picture

is gold crashing or is the "price" diverging
from the actual.
physical market?

Mon, 04/15/2013 - 19:30 | 3453714 FatAmerican
FatAmerican's picture

Ridicouls biased garbage.

My FAVORITE investor explains why...

Bloomberg BLAMES....

You would have to be an idiot to take advice from a fund with gold in their name...

its like saying BOND king likes bonds...SHOCKING goldcore says buy gold OMG REALLY?

Mon, 04/15/2013 - 19:25 | 3453688 Gringo Viejo
Gringo Viejo's picture

Any thinking individual realizes this massive, irrational 2 day smash of the PMs was orchestrated at the highest levels of government and finance. And just prior to a terrorist bombing which had not happened in over 11 years.
Too clever by half.
This has false flag written all over it....in CAPS.

Mon, 04/15/2013 - 19:15 | 3453637 DowTheorist
DowTheorist's picture

A primary bear market for gold and silver was signaled by the Dow Theory rules as soon as December 20, 2012. Whether we like it or not, gold and silver were very weak for months as they were unable to even stage a modest rally. So, while not pleasing, gold is behaving in accordance with a primary bear market.

Furthermore, when we talk about gold we should distinguish between "paper" and "physical" gold. Looking forward gold is in a critical juncture as explained here:

http://www.dowtheoryinvestment.com/2013/04/dow-theory-special-issue-rand...

 

 

Mon, 04/15/2013 - 20:04 | 3453861 Gringo Viejo
Gringo Viejo's picture

Dow Theory is rendered useless in a non capitalistic, manipulated market. Grow up.

Mon, 04/15/2013 - 18:58 | 3453567 Keynesian Mess
Keynesian Mess's picture

... or is Gold the canary in the Deflation coal mine?

Mon, 04/15/2013 - 20:29 | 3453977 JimS
JimS's picture

Actually, I think you've "hit the nail on the head". I think what's going on in gold "prices" is the tip of the iceberg. I see debt being destroyed faster than the Central Banks can print the stuff. What I mean by that, is, debtors will begin to cascade in debt default (being unable to service said debt), despite the central Banker's best efforts to "re-inflate". What will inflate are the very things we serfs need to survive (I know TPTB could give a shit about serfs). Gold "The Physical" has nothing to do with Gold "The Price", and it seems that the 2 are diverging sharply. A genuine $20 Gold piece may buy a decent house in the near future (if the homeowner could show a clear title).

Tue, 04/16/2013 - 03:10 | 3455227 jmk
jmk's picture

DEFLATION--Bitchez

Mon, 04/15/2013 - 18:58 | 3453555 NoTTD
NoTTD's picture

"Sharps Pixley"?  

 

There goes the name of my new band.

 

Mon, 04/15/2013 - 19:02 | 3453521 Hannibal
Hannibal's picture

Remember, it's the naked shorting of fake GLD-SLV paper. My physical is still nicely stashed (away).

Mon, 04/15/2013 - 19:26 | 3453686 d edwards
d edwards's picture

When the fiat paper collapses, gold and silver will rule.

Mon, 04/15/2013 - 18:07 | 3453214 slightlyskeptical
slightlyskeptical's picture

Anyone mention John Paulson? I could see him doing a huge purge after acquiring double the needed protection.

/spec

Mon, 04/15/2013 - 19:08 | 3453498 Money 4 Nothing
Money 4 Nothing's picture

http://silverdoctors.com/cnt-sold-out-of-all-physical-silver/#more-25111

 

It was only a paper raid to shake the short term investors and discourage hem from warranting their March contract. Has nothing to do with dumping physical on the market.

 

PM market manipulation explained. Serves many different means.

http://resourceinvestingnews.com/53037-talking-gold-manipulation-with-ga....

 

Mon, 04/15/2013 - 17:48 | 3453092 Captnkirk
Captnkirk's picture

long the metal short the paper   has worked for a hedge i can't see throwing out a thousand years of history because of some academic mind game

 

Mon, 04/15/2013 - 17:49 | 3453091 Captnkirk
Captnkirk's picture

long the metal short the paper   has worked for a hedge i can't see throwing out a thousand years of history because of some academic mind game

 

Mon, 04/15/2013 - 17:46 | 3453069 Golden Showers
Golden Showers's picture

If there is no money of value, then there is no law of value.

Therefore law of value is money of value, and money of value is law of value. When no one values the law, we are all worthless. Should one of us earn money, we all earn money. If one of us earns value, we all are the more valu-able.

If the laws are worthless, then, likewise are the law makers and the law up-holders. No man determines what is of value to any other man (or woman); we are free-no matter what anyone says-to choose our values. If we give our power to others, it is our own fault for what we get in exchange. That is the meaning of con-tract.

Lick it up, baby. Lick it up.

Mon, 04/15/2013 - 17:21 | 3452871 groundedkiwi
groundedkiwi's picture

2 Wedding rings for every gay marriage. Gold will rise.

Mon, 04/15/2013 - 17:17 | 3452854 CDNX fan
CDNX fan's picture

Stackers are having a bad day - bet my stack is smaller than your stack. In fact it is infinitelty smaller than your stack because I got none.

Long the VIX in size and very happy (finally).

Mon, 04/15/2013 - 17:05 | 3452703 THE DORK OF CORK
THE DORK OF CORK's picture

Italy is becoming third world.......................

 

Its the motherlode...........both  official and unofficial.

 

Its not that complicated.

Its going through a system breakdown otherwise known as a civilizational collapse.

 

Its was pushed into surplus to bail on England France and the US

Now people are running out of cash.

 

THEY MUST SELL ASSETS FOR CASH _ THEY MUST>

 

 

http://www.youtube.com/watch?v=er2luQJtefw

 

Mon, 04/15/2013 - 16:58 | 3452682 rp1
rp1's picture

Gold has fallen because the US dollar has entered a bull market.  Next up: a real interest rate spike (deflation?), a US dollar shock, and a big bull market.  Probably in biotechnology.

Mon, 04/15/2013 - 16:29 | 3452403 StarTedStackin'
StarTedStackin''s picture

Dr. Paul Craig Roberts has the best explanation of WHY the FED is attacking bullion.

 

 

http://www.infowars.com/the-assault-on-gold/

 

 

Leave it to a Republican former Treasury Secretary to clear things up!

Mon, 04/15/2013 - 16:25 | 3452375 q99x2
q99x2's picture

JP Morgue's naked shorts were about to blow up. Thought everyone knew that.

Mon, 04/15/2013 - 16:18 | 3452332 lunaticfringe
lunaticfringe's picture

I am convinced that nobody knows shit. I've been listening to opinions for 5 years. In the end, I'd rather own gold than not. But here's my opinion anyway. Maybe I don't know shit. http://thecivillibertarian.blogspot.com/2013/04/the-gold-enigma.html

Mon, 04/15/2013 - 18:38 | 3453435 NoTTD
NoTTD's picture

Right on, loonie.

Mon, 04/15/2013 - 18:11 | 3453252 slightlyskeptical
slightlyskeptical's picture

People only know where their bread is buttered and will always steer to that place. People who sell gold have you buy gold and so on. No one's opinion is really worth trusting at this juncture.

Mon, 04/15/2013 - 16:47 | 3452515 chirobliss
chirobliss's picture

Well put Mr Fringe. I wish you well and +1.

"In the end, I'd rather own gold than not." 

... is the best justification I know of.

I'm neither long nor short nor really that interested as I played the Gold game in the 80's in Oz and PNG, with my mate Rob de Crespigny.

For the others, if a trade is going in your favour and it is clear and unmistakable reality, then turns against you, month after month after month, and it is manipulation, comes a time when a thesis may be worth revisiting.

Mon, 04/15/2013 - 16:19 | 3452328 lasvegaspersona
lasvegaspersona's picture

One guy  on the planet obsered that 2013 could be the year of the collapse of the paper gold market. One guy explained his view in detail.

One guy saw this coming a mile away AND explains the mechanism...and he does not even get mentioned.

Fofoa is the guy I listen to. It is almost too late but as long as physical can be sourced there is some time.

If this goes down like he thinks it will, maybe you'll go back and read what he has written...you know...for historical reference

Mon, 04/15/2013 - 19:45 | 3453767 Hulk
Hulk's picture

Been telling my wife for years that this is what a highly leveraged paper market collapse would look like. Cyprus was the camel that

broke the straws back. Everybody wants physical, cause trust in the system is gone. The LBMA and comex have to settle in cash, and it is in their interest to knock the settlement amount down as much as possible, to avoid default.

In conclusion, this show was definitely worth the price of admission, as it is truly the greatest show on Earth!

Mon, 04/15/2013 - 20:39 | 3454016 Fish Gone Bad
Fish Gone Bad's picture

People are willing to die over gold.  That works for me.

Mon, 04/15/2013 - 16:00 | 3452190 Anonymouse
Anonymouse's picture

Nice summary GW. I would like to see some support for the claim that this was initiated via a Fed leak. Not saying it wasn't but that's a pretty explosive charge. I realize you are just repeating what that guy said, but if you had something, it would be greatly appreciated.

Mon, 04/15/2013 - 16:20 | 3452353 El Hosel
El Hosel's picture

... The Gold equities have been "Leaking Information" for a long while now with extreme underpreformance. When Bernanke jams the "Markets" with QE  he surely would like the PMs to not participate...Just sayin.

Mon, 04/15/2013 - 15:53 | 3452135 onlooker
onlooker's picture

Confiscate the guns, grab the gold, destroy the jobs, wipe out the middle class, destroy savings, and demonize any religion that is not of the Ruling Party faith. All of this may not be an every time classical take down of a Nation but historically it  seems to work that way, and all parts may vary.

 

IMO, it is time for DC to back off the immigration and gun control agenda, fix Obama Care and stay in DC and work to save the Nation in this time of peril. Lavish vacations, party campaigning 24/7, and the constant stream of disinformation must end------ if the Nation is to survive. If survival of the Nation, as we have known it, is not the plan, then ignore the above.

Mon, 04/15/2013 - 18:39 | 3453448 NoTTD
NoTTD's picture

Dreamer.

Mon, 04/15/2013 - 15:43 | 3452071 Withdrawn Sanction
Withdrawn Sanction's picture

It seems most think the price smash in gold is the result of manipulation, and that may very well be true.  At least we'd better hope it is.  The simultaneous smash in equities however, suggests it may be something else...generalized asset liquidation.  Someone looks to be getting liquid in a very big way.  Why?  To pay taxes?   Get out of Dodge?

Mon, 04/15/2013 - 19:35 | 3453728 Quonk
Quonk's picture

...feels a bit like '08 in that regard...as though someone big is being escorted out and liquidating whatever will sell at the prevailing bid. 

 

Mon, 04/15/2013 - 15:20 | 3451877 Fix It Again Timmy
Fix It Again Timmy's picture

I am not at all concerned but I do have a word for those responsible:

http://www.youtube.com/watch?v=oA6FHBCWAyY

 

Mon, 04/15/2013 - 15:18 | 3451857 LuchadorChumba
LuchadorChumba's picture

Always thinking about how your going to win the Gold luchador prize belt?

Have the fighters at fight club forgotten how to take a punch?

In my game, the trance is deep… the old in n out, up n down, Au magic trick is what we're seeing amigos.

Such gnashing of teeth here at ZH! Aye aye aye...

...and te sabes, whoever has the greatest access to counterfeit$ gets the gold luchador belt (quite literally). The Luchador that has the greatest ability to create fiat souls to do their bidding wins.  To get access to the racket, you must bow to my control objectives. You must become a gear in the machinery (the machine WE created together compadre). Did you know that this realm, isn’t the progenitor of such questions, but it’s the symptom of my system. That’s right, all that we see is actually the baseline for our perception! And tambien, and, and…you don’t even know it!

Entonces, you never had a chance. You are in a world with people who were designed to succeed in the fraudulent system, all without knowing they are a fraud as well! Robots in a mechanical system, counterfeit people in a counterfeit world, fiat humans, intelligent automatons… YOU have a lot of nerve caca-talking as if the system is malo!

Oye, what you're doing (especially that Xavier hoto) is like cleaning the body fluids of the mat of the ring that will soon have another fight in it... useless. You're attempting to throw a floating plastic pink flamingo life preserver to someone who doesn't want it! Even if they did, the very lingua, symbols, colores, shapes y textures are all manipulations. You see amigos, you will come back to me. You've been trying to change the temporal realm with temporal realities - babosos! Why is it that when you're naked in the changing room, you silently admit that your own knowledge hasn't even changed yourself? Waste of time! Waste of effort! You can't enjoy your mescal and tequila when so confused me estudiates. All these 'souls' are my souls. Your soul is my soul... quienes?  I created it. Su think you can change one of my luchadors... buena suerte, good luck! You can't even change yourself. You can put out bait for them, they will nibble, but always spit it out.

Mira, most me luchadors already know that my scam fractional reserve banking, and fiat money system allows us to steal the labor, and illusory time of our audience, but they havent yet considered all its uses. Why is it hypercompetitive for the audience who want to create businesses? It's because of credito, uh... the ability to borrow mas counterfeit money dinero. One of my luchadors can print their own counterfeit, and subjugate any audience member as they please! Me gusta!

Those who wish to escape the arena, will have the most temporal pain, more than being kicked in the huevos for eternity, because they're dealing with those who are invested in my scam, and they're dealing with the other side of themselves that is invested in the scam. They need my scam, they are my scam, they don't know and don't want to know if they are invested in a scam. It's that Xavier guy, who thinks he can get away, thinks he can convince my bots to change their mind! Aye aye aye. Talk about having his cabesa deep inside my fondio. This is forever. This is my system. This is why I don't automatically kill most who reveal my plots. This is why I don't eliminate them immediately. I know the score. I have won, I am winning, and will always win.

Comprende, if you have ever taken out a loan, you are my disciple.
If you have used my currency, ever, you are in the audience, dupes and babosos.
If you have used a credit card, you have spilled blood in the ring.
If you have borrowed money from any institution to start a business you are complicit. If you are looking for a way to save your oh so hard earned booty, you are an estudiante of mine.

You want out now?

I am the opium chain of integration that'll always be. Counterfeit money created y transacted, con velocity that ends up in so many luchador manos - all are holding currency soaked in sangre.

My marionette strings reach deep, where all the dogmas including science, religion, academia, philosophy, point back to my world.

The trick is to distract you with all sorts of apocalyptic distractions, some of which true, but none of it controllable. And if we can get some destruccion regardless, es mas mejor.

Comprende... todos palabras, all words are meant to distract.

You can never escape by using the methods of your own enslavement.

You can never free another.

Viva El Luchador!

www.askchumba.com

Oh, I forgot... You can never drink mescal and not swallow the gusano... worm.

You are in hell, you are fucked. Give up, and help me build my world. Stop being so obstinate.

Mon, 04/15/2013 - 19:45 | 3453760 Dealyer Turdin
Dealyer Turdin's picture

"When we pull out of the building I want to skid on blood!"

The angry emporer

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