Imagine you are Ben Bernanke, or on the Board of Governors of the Federal Reserve. The time frame is July and August of 2011 and the price of gold is on a tear. Commodities inflation has been persistent and is breaking out everywhere. Your prediction that inflation "is contained" and is a "temporary phenomena" are beginning to look absurd. What do you do? Simple. Hint that QE3, the primary drive of inflation, is coming and then fail to deliver at the September FOMC meeting. That takes care of the price of gold and the gold stocks. Ah, but those pesky commodities speculators keep making money and trading against what you want the markets to do. So what is to be done there? Hey Jon Corzine, how about you tank the largest broker for the small commodities punters in the world, and we let them twist in the wind? That will serve them right. Teach them to bet against the government approved scenario. – ZeroHedge
Dominant Social Theme: These are terrible tragedies and no one can help them.
Free-Market Analysis: In our wanderings around the Blogosphere (and 'Net-iverse), it's become clearer and clearer to us that we live in a kind of matrix beyond our immediate control or perception. All we can do, like blind men, is to continue to make out the shape of the elephant as best we can. Numerous, repetitious touches are best.
That's why were attracted to this article over at ZeroHedge. We have noticed recent changes in the dialogue. ZeroHedge seems to be running articles along the lines of what we could call directed history, and so is LewRockwell. This is good.
And this is a good speculation (see excerpt above), as well, even If it is not true. The idea is that Jon Corzine, who has held high elite-banking positions, conducted a kind of sting of small gold buyers. By reducing MF Global to rubble, the elites also wiped out thousands of small commodities traders.
It is these traders that help force the issue regarding gold prices. Without them the price becomes easier to manipulate. Why would the powers-that-be do such a thing? A recent DB editorial explained the motivation in blunt detail:
The powers that be HATE gold. Money Power is derived from the central bank printing press. The idea that people on their own can go out and dig up money out of the earth means that the people STILL have the opportunity to better themselves independently of the power elite.
This is very hard to tolerate if you are trying to set up a regime to rule the world, as the Anglosphere elite apparently wants to do. If people can still get wealthy independently then you don't have TOTAL control. And total control is what Money Power seeks, or so it surely seems.