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Awoke
1st April 2010, 10:20 PM
Gold is no longer held captive by a fixed parity with the dollar. Today it is trapped politically in parity with a price discovery futures market leveraged at 100:1. But free gold is where we are heading, without a doubt. It is where monetary evolution is taking us. It is where debt evolution is taking us. It is where global political evolution is taking us. It is both a market process and a political process, global in scale. And we ask, "how will freegold materialize?" Ask how, not when.

As for when, I already have my answer. It is materializing now, right before my eyes.

Something important has changed. Can you feel it? It started about 12 months ago and has changed more in the last month alone than it did in the previous 12 months, and more in the previous 12 months than in the past 12 years.

Can you figure out what it is?

GO GATA!

Here are two important interviews from Eric King and King World News. The first interview is with Adrian Douglas of GATA and Andrew Maguire, The Whistleblower. And the second interview is with Bill Murphy, Chris Powell and Adrian Douglas of GATA.

Andrew Maguire & Adrian Douglas - Tuesday, March 30, 2010
(37:51)

GATA - Wednesday, March 31, 2010
(29:53)

Partial Transcript from the GATA interview:

Adrian Douglas: ...then I said "this is a Ponzi scheme", selling several times the amount of gold that they actually have...and then at that point, as you say, the oxygen went out of the room, and there was quiet for eight seconds.

I thought that was going to be it, that it would be swept under the lumpy carpet at that point...

But then, amazingly, Jeff Christian of the CPM Group who was coming in by satellite communication said that the previous speaker was absolutely correct, that it was paper hedging paper. You know, so this was an amazing admission.

And he went on several times while he was speaking and reconfirmed it in several different ways. So it wasn't that he just made a mistake, or said something incorrectly. He reconfirmed it several times.

And as Chris pointed out, he actually told us that the CFTC and CPM Group use the term "physical market" in a very loose way. And he said it actually means all the paper and the physical metal is when they refer to the physical market.

And then he gave us the bombshell that it's actually 100 to 1. That they sell 100 times more gold than they actually have as physical metal.

Eric King: Bill, let me ask you, because you were there with Adrian, obviously, at the CFTC meeting... were you shocked when Christian confirmed that?

Bill Murphy: Fell off my chair. Because Adrian's the one who's been saying this for a long time, and I was concerned that well, you know the London Bullion dealers, which is very [?] especially in a public forum. It's not because I didn't believe Adrian, it's just that... way above my paygrade, and I have no way of confirming that, and Adrian and I used to talk about 50 times... and then this goofball comes out and makes our case, and... except that Adrian's too conservative!

And he's supposed to be... his business is dealing with the dealer community! So, they gave the whole joint away. And he gave GATA more credibility than you can imagine!

It's just... I sat there with my mouth open.

Eric King: Chris, let me ask you as you watched this unfold. You've seen the tapes. You know all about this. Is part of it, maybe, that he just didn't know who Adrian Douglas was? And he was giving a tip of the hat to GATA. Can you help me on that?

Chris Powell: I don't know what was going through his head. I know that he has spoken at conferences where GATA has had speakers. So he is certainly aware of our work. I don't think he's been an admirer of our work in any way. But, you know, he was speaking at a public hearing before a United States government agency and you know, and like many people, he felt obliged to tell the truth, and maybe he felt that, well, this is no big deal because this is how the situation has been for many years.

The situation in the futures market... the overwhelming of the real physical market by paper is not peculiar to gold. It is the situation, really, in many futures markets, though perhaps not as much as in gold and silver.

The British economist Peter Warburton wrote, really, the original paper on this as far as I can determine, in 2001. He perceived that governments were encouraging investment banks to get into derivatives because derivatives were proving to be a wonderful way of diverting monetary inflation out of real things. And out of things whose increase in price would show up in consumer price indexes... and into mere financial instruments.

It was even mentioned by other witnesses at the CFTC hearing that this was a wonderful thing. Because if people were trying to hedge their currency holdings by buying real things, and real things were actually taken out of the market and put into storage, we'd have all these price increases in real things.

So the futures markets, it was pretty much admitted at the CFTC's hearing last week, are pretty much designed and intended to mask inflation. And to prevent people from actually hedging their currency exposure by buying real things.

The futures markets are an act of fraud!

Bill Murphy: Eric, I can tell you this for a fact, having been around Jeff Christian a lot... he loathes GATA! He has no idea what he was saying... how it was a bonanza for us. I mean, he's one of our biggest critics...

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