24 August: Sprott Asset Management Publishes Gold Manipulation Study

Discussion in 'Commodity Futures' started by harrytrader, Sep 5, 2004.

  1. :D

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  2. Now let's see if indeed central banks act for long term public best interest:

    Exerpt from Congressman Ron Paul speech in US congress end 2003:

    "Alan Greenspan, years before he became Federal Reserve Board Chairman in charge of flagrantly debasing the U.S. dollar, wrote about this connection between sound money, prosperity, and freedom. In his article “Gold and Economic Freedom” (The Objectivist, July 1966), Greenspan starts by saying: “An almost hysterical antagonism toward the gold standard is an issue that unites statists of all persuasions. They seem to sense…that gold and economic freedom are inseparable.” Further he states that: “Under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth.” Astoundingly, Mr. Greenspan’s analysis of the 1929 market crash, and how the Fed precipitated the crisis, directly parallels current conditions we are experiencing under his management of the Fed. Greenspan explains: “The excess credit which the Fed pumped into the economy spilled over into the stock market- triggering a fantastic speculative boom.” And, “…By 1929 the speculative imbalances had become overwhelming and unmanageable by the Fed.” Greenspan concluded his article by stating: “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.” He explains that the “shabby secret” of the proponents of big government and paper money is that deficit spending is simply nothing more than a “scheme for the hidden confiscation of wealth.” Yet here we are today with a purely fiat monetary system, managed almost exclusively by Alan Greenspan, who once so correctly denounced the Fed’s role in the Depression while recognizing the need for sound money."
  3. Greenspan explains: “The excess credit which the Fed pumped into the economy spilled over into the stock market- triggering a fantastic speculative boom.” And, “…By 1929 the speculative imbalances had become overwhelming and unmanageable by the Fed.”

    Sure Mr Greenspan and so you know what is going to happen !

    This is M3 Money Supply by Greenspan :
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  4. Hi Harry,

    Sprott management is primarily a long gold/short index fund. They did well in 02 with a 74% return, but suffered in 03 with a -6% return. For them to write a report in 04' saying the gold market is not a free market... well, it kind of smacks of justifying a losing trade, regardless of wether they may be right or not. They have approx 1.6 billion under management, not being able to take their nice 20% management fee last year probably would have me bithcing as well.

    Having said that, it was a damn interesting paper. The only thing that bugs me, is there continual reference to Gold not being a free market because there is continual price supression or "bear raids" that don't support the "fundamentals". Price, may not be reflecting fundamentals... but is that not a reflection of a free market, speculation? In a free market, everybody competes... bankers, governments and all us little guys. If the bankers want to take on huge short positions and hold down the price for decades... well then don't they have the freedom to do so? There can only be so much supression before something blows up... that's the nature of it.. that's the fun of it... and that's where the little guy gets a chance to make it big, or lose their ass.

    At the end of the day, Sprott makes a great case for manipulation, but I wouldn't give them a dime of my money. If that paper is there only "hedge", I defitiely feel for 'em.
  5. >In a free market, everybody competes... bankers, governments and all us little guys.
    The little Guys in Europe are 5% of funds. All the rest are institutions and big funds...which are just offshore funds funded by the same institutions to escape tax. And they do that with people deposits ... without people knowing that these institutions speculate with THEIR money, their RETIREMENT MONEY. The credits are used as sponge : as real money is pumped it must be substitued with fake money - or people will see that their money is missing - which is more than just fake money because it is public debts ! So until there is nothing more to pump they will continue to do so and there is no need to have a phD to know when they will have no more interest to do so : when the mass of the baby boom will need to retire then guess they will stop to supply the credits under of course the cynical pretext that these credits will create a market crash : that's what they pretexted in 1929 to restric credits and since people's memory is really short nothing will prevent them to pretext exactly the same thing ! They will hypocritely pretend that it is time to fight speculation by stopping flooding the economy with credits when it will become as greenspan said "unmanageable". Then they will also stop short selling Gold. What I'm saying is not for this year or next but within ten years because within ten years and if we believe Buffet he said there is "certainty" that derivatives will explode and that a nuclear terrorist attack will occur. All these events if they occur will be pretext if not orchestrated to justify the plunge.

    And they will double their win since as I said the fake money is not neutral it bears interest: so not only people will be fucked by having their money pumped, but their money that has been pumped has been relended to them through Gov's public debts really laughable if it wasn't a real game !




    Water denied to under-developed countries: a world bank crime against humanity

    The World Bank pressurised the Bolivian government to privatise water companies, and a subsidiary of the US giant Bechtel gained a 40-year concession. The poor faced water-rate increases of $20 a month (the minimum wage is $100 a month). Even collecting rainwater in rooftop tanks became illegal without a permit. In la Cochabamba, streets were barricaded, 30,000 protestors seized the central square, police fired on the crowd, the crowds swelled to 80,000, and Bechtel left the country. A coalition of people's activists has taken over the water company (this would not have been possible if the GATS rules had already been in force). A few days later, Wolfensohn, director of the World Bank, had learnt nothing from the experience, claiming that Bolivia still needed "a proper system of charging", and that there was no option but to pay international prices for a valuable resource. But the fight is not over. Bechtel is suing the Bolivian government and the government is harassing the coalition of activists.

    In India, a local tribe had always used water from an artificial `tank' in the forest but they could not prove ownership. The government sold the tank to Pepsi who fenced it and kept the tribe out. Pepsi even tried to prevent the tribe storing rainwater from their roofs.

    The World Bank withheld debt relief and funds from Ghana until water services were privatised. The Ghana National Coalition Against the Privatisation of Water was formed. Britain's Department for International Development (DfID) withheld aid for water supplies until bids for the leases of Ghana's urban distribution had been received. Aid was thus a lever to open up Ghana's water sector to multinational companies -- and Britain's ethical foreign policy lay in tatters.

    The British taxpayer (through DfID) is helping the state of Orissa in India to privatise water distribution. Already water rates have increased tenfold. Millions will be forced to migrate into city slums. But thousands of small farmers are taking direct action to control the water services themselves.

    A subsidiary of the French company Generale des Eaux was granted a 30-year contract to deliver water in a rural province of Argentina. Water rates doubled and the water turned brown. Customers forced the company out of the province by refusing to pay their bills.

    In another incident, a water company behaved properly. It subsidised poor areas by charging wealthier customers a `solidarity tax'. The wealthier customers used the courts to get the surcharge ruled illegal. Under the GATS, it is impossible for a company to pursue socially desirable policies.

    In 1995, water privatisation in Puerto Rico left poor people without water while US military bases and tourist resorts remained well supplied.

    In 2001, the World Bank put pressure on India to initiate "bold action on user charges" to recover the cost of irrigation projects. India is facing increasingly acute water stress and this policy will destroy many small farmers.

    South Korea is using virtually all its available water. A detailed World Bank study predicted that withdrawals for industry and housing will increase and water for agriculture will decline from 13 to 7 billion tonnes by 2025.

  6. Bad luck for the Gold investigators who died in the WTC attack:


    "Recently the Chairman of the Federal Reserve was being investigated for using the Fed to keep the price of gold low so that Merchant bankers could buy Federal Reserve gold at far less price than the true unmanipulated market price would have been. Too bad all the evidence and most of the investigators died in the North Tower when a bomb went off on the 23rd floor at the precise moment a jet liner -- flown by remote control, and perhaps with no hijackers -- crashed into the tower 40 stories above."
  7. http://www.elitetrader.com/vb/showthread.php?s=&postid=883331#post883331

    Series Editor (of the above books): HarryTrader
    #10     Oct 31, 2005