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Underworld

Assault On Gold Update

Paul Craig Roberts

I was the first to point out that the Federal Reserve was rigging all markets, not merely bond prices and interest rates, and that the Fed is rigging the bullion market in order to protect the US dollar’s exchange value, which is threatened by the Fed’s quantitative easing. With the Fed adding to the supply of dollars faster than the demand for dollars is increasing, the price or exchange value of the dollar is set up to fall.

A fall in the dollar’s exchange rate would push up import prices and, thereby, domestic inflation, and the Fed would lose control over interest rates. The bond market would collapse and with it the values of debt-related derivatives on the “banks too big too fail” balance sheets. The financial system would be in turmoil, and panic would reign.

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.

A naked short is when the short seller does not have or borrow the item that he shorts, but sells shorts regardless. In the paper gold market, the participants are betting on gold prices and are content with the monetary payment. Therefore, generally, as participants are not interested in taking delivery of the gold, naked shorts do not need to be covered with the physical metal.

In other words, with naked shorts, no physical metal is actually sold.

People ask me how I know that the Fed is rigging the bullion price and seem surprised that anyone would think the Fed and its bullion bank agents would do such a thing, despite the public knowledge that the Fed is rigging the bond market and the banks with the Fed’s knowledge rigged the Libor rate. The answer is that the circumstantial evidence is powerful.

Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.

Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?

What happens when 500 tons of gold sales are dumped on the market at one time or on one day? Correct, it drives the price down. Investors who want to get out of large positions would spread sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.

Who can afford to lose that kind of money? Only a central bank that can print it.

I believe that the authorities would like to drive the gold price down further and will, if they can, hit the gold market twice more next week and put gold at $1,400 per ounce or lower. The successive declines could perhaps spook individual holders of physical gold and result in actual net sales of physical gold as people reduced their holdings of the metal.

However, 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.

Unless the authorities have the actual metal with which to back up the short selling, they could be met with demands for deliveries. Unable to cover the shorts with real metal, the scheme would be exposed.

Do the authorities have the metal with which to cover shorts? I do not know. However, knowledgeable dealers are suspicious. Some think that US physical stocks of gold were used up in sales in efforts to disrupt the rise in the gold price from $272 in December 2000 to $1,900 in 2011. They point to Germany’s recent request that the US return the German gold stored in the US, and to the US government’s reply that it would return the gold piecemeal over seven years. If the US has the gold, why not return it to Germany?

The clear implication is that the US cannot deliver the gold.

Andrew Maguire also reports that foreign central banks, especially China, are loading up on physical gold at the low prices made possible by the short selling. If central banks are using their dollar holdings to purchase bullion at bargain prices, the likely results will be pressure on the dollar’s exchange value and a declining market supply of physical bullion. In other words, by trying to protect the dollar from its quantitative easing policy, the Fed might be hastening the dollar’s demise.

Possibly the Fed fears a dollar crisis or derivative blowup is nearing and is trying to reset the gold/dollar price prior to the outbreak of trouble. If ill winds are forecast, the Fed might feel it is better positioned to deal with crisis if the price of bullion is lower and confidence in bullion as a refuge has been shaken.

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. The purpose of these announcements was to encourage individual investors to get out of gold before the big boys did. Does anyone believe that hedge funds and Wall Street would announce their sales in advance so the small fry can get out of gold at a higher price than they do?

If these advanced announcements are not orchestration, what are they?

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. Otherwise, what is the point of the heavy short selling and orchestrated announcements of gold sales in advance of the sales?

Underworld

British government will buy OneWeb for surveillance

The developer of the OneWeb global Internet satellite system, which went bankrupt at the beginning of the year, announced that it had agreed to buy the business and continue its work. Shares in the company will receive the UK and the British branch of the Indian company Bharti Enterprises. In total, one billion dollars will be invested in OneWeb, which should allow to continue launching satellites.

OneWeb is a project to create a global satellite Internet system. To date, the company launched 74 of the 650 satellites planned. Satellites should be located in 12 orbital planes at an altitude of 1200 kilometers. The first batch of satellites was launched by Roscosmos, but it also got most of the launch contracts. Despite this, the operation of the system in Russia is in question: while OneWeb has not been able to obtain the necessary permissions from the Russian State Commission on Radio Frequencies.

At the end of March, OneWeb announced that it had filed for bankruptcy because it was unable to agree with investors on financing because of the global crisis caused by the coronavirus pandemic. According to the Finantial Times, the deal fell through a few hours before the next launch of the satellites, which after that they decided not to cancel. The company filed for a form of bankruptcy that allowed it to sell the assets of another organization so that the project could continue.

On July 3, OneWeb announced that the British government and Bharti Global Limited will become the new owners of the stake in the company. It is the British representative office of the Indian conglomerate Bharti Enterprises, which includes, among other things, the third largest mobile operator in the world – Bharti Airtel. Each of the new co-owners will invest $ 500 million.

The exact details of the deal are unknown, but Bloomberg reports that the new owners will receive shares of 45 percent, and the remaining 10 percent will go to current investors. Although OneWeb, Bharti Global Limited, and the British government have agreed on the terms, OneWeb lenders may reject the deal. It is expected that in the coming months the company will continue to launch satellites into orbit.

In a press release, OneWeb notes that India’s Bharti Airtel will use satellite communications in its networks. The benefit to the British government, in addition to the overall strengthening of its presence in space, is not called. However, before that, experts have repeatedly noted that this may be related to the UK’s plans to create its own satellite navigation system, which became known after the European Union decided to disconnect the country from its Galileo satellite system.

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Underworld

US coronavirus medicine will cost $ 3120

Gilead Sciences, an American biopharmaceutical company, has announced the value of its coronavirus drug. The general course of treatment for 5 days will have a price tag of $ 2,340.

Until September, remdesivir will be sold only in the United States. The cost of a full course of treatment for people with private insurance is $ 3,120, for an ampoule – $ 520. For patients with state insurance, as well as for patients from other countries, the price of the drug will be $ 2,340 per course and 390 per bottle.

Remdesivir was approved in early May for the treatment of coronavirus in the United States. Although the drug was originally developed to combat Ebola, it was not able to show visible results against this disease. But later, the drug had an effect in the treatment of SARS and MERS infections.

A large clinical study by the National Institute of Allergology and Infectious Diseases showed that the drug reduced recovery time by an average of four days, but did not affect the number of deaths.

Since the United States has a fairly large network of insurance institutions, the importance of remdesivir is not only in its benefit to the patient, but also for the healthcare system.

“Based on the example of the United States, an earlier discharge from the hospital will save her about $ 12 thousand per patient,” said Daniel O’Day, director general of Gilead Sciences.

Since receiving permission for emergency use of the drug, Gilead Sciences has transferred remdesivir to hospitals to treat patients. The last batches of donated drugs were distributed on Monday, June 29th.

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Underworld

In Germany, for almost 30 years, the authorities secretly gave orphans to pedophiles

In Germany, the University of Hildesheim published the final report on the scandalous Kentler project – a terrifying social experiment, during which for about 30 years children were given up for adoption to pedophiles, calling it molestation “socialization” and “sexual education,” Deutsche Welle writes.

In the 1960s in Germany, people in some circles viewed sex with children not as taboo, but as something progressive. One of the key figures in such thinking was Helmut Kentler, professor of psychology and pedagogy in Berlin. For a long time he was considered a seer and one of the most prominent sexologists in Germany. His books on education sold well, he was a popular expert and commentator on radio and television, and held leading positions in the Berlin center for educational research. 

The psychologist founded the theory of “emancipatory sexual education”, suggesting that children have the right to express their sexuality. Beginning in the 1970s, he conducted clinical trials in which pedophiles were allowed to adopt homeless teenage boys aged 13 to 15 for their “mutual benefit”. According to Kentler, pedophiles could become particularly loving adoptive parents.

By 1988, the professor summed up the results of the first stage of the experiments, calling it successful. He argued that sexual relations between adoptive fathers and minors are harmless and help adolescents quickly adapt to society and facilitate the process of growing up. The fact that the boys entered into adulthood with a broken psyche did not bother Kentler.

The experiments were secret, but were carried out with the full approval of the authorities of West Berlin. In his papers, the psychologist wrote that he “managed to enlist the support of responsible local authorities”: from academic institutions to state social welfare services.

For many years, the professor managed to convince the authorities of the normality of his ideas, so he was never prosecuted by the court. By the time his victims made statements, his statute of limitations had expired. The scandal flared up only in 2015; Kentler himself died in 2008.

When the full-scale investigation began, it turned out that there was a whole network in which officials from the Berlin Office for Juvenile Affairs, the city Senate and a number of educational institutions were involved. All of them “accepted, supported and defended” the experiment and its adult participants. In addition, it was possible to establish that among the adoptive fathers were, including eminent scientists from the Max Planck Institute, the Free University of Berlin and the Odenwald school, which are now suspected of pedophilia. (By the way, the Odenwald school was already the subject of litigation in 2014, when a case was launched on the corruption of minor students.) According to Marco and Sven, who became victims of the experiment, one person, The suspect in involvement in this system – the former head of the youth welfare service – is still alive. However, no investigation has yet been made.

The first report on the Kentler experiment was published in 2016 by the University of Gottingen. Researchers then stated that the Berlin Senate did not seem interested in clarifying the truth.

Berlin senator for youth and children Sandra Sheres called the results of the investigation of the University of Hildesheim “shocking and terrifying.” She openly expressed her sympathy for the victims and condemned the crimes, which she calls “simply unimaginable.” Although the statute of limitations for these crimes has expired, Sheres promised financial compensation for the suffering.

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