The world’s top expert on precious metals manipulation took time this week with FutureMoneyTrends.com to discuss the end game for the gold cartel. In this exclusive interview, Andy Hoffman, who goes by ‘Ranting Andy,’ covers the state of the current economic system, the future of gold and silver, and why the gold cartel is like a drowning man reaching for his last gasp of air. To put it simply, the gold cartel is in retreat and is losing control, gold investors are literally on the “edge of glory” as the physical demand for precious metals overwhelms the cartel. No one knows this better than Andy, which is why this is a must watch for all members.
Andy Hoffman is the Director of Marketing for Miles Franklin, a bullion company based in Minneapolis, MN. To subscribe to their Free daily newsletter where you can read Andy’s rants, go to MilesFranklin.com.
Andy is a good friend and this is not an advertisement, we just honestly love his analysis and think that anyone who wants to get the raw truth about precious metals manipulation needs to be subscribed to his weekly cartel rants.
For those not currently subscribed to Andy, below is his latest rant.
Over the past decade, I have been asked the same question countless times – If a Cartel is suppressing gold, why does it keep going up?
After all, gold has risen for ELEVEN STRAIGHT YEARS, outperforming essentially all asset classes except one…SILVER. The question reflects all that is wrong with society; its inability to critically THINK, penchant for assimilating PROPAGANDA, and refusal to accept that its “leaders” have goals contrary to their own.
When I hear this question, my first response is, “How could it NOT?” With the CRB index up 70%, the U.S. dollar down 35%, and the Western world experiencing stagflation and financial crisis, no force on earth can prevent gold prices from rising.
The answer, of course, is that price suppression is not about outright price DECLINES, but the overarching goal of preventing Precious Metals from recapturing their historic roles as MONEY, as opposed to just “commodities,” as the mainstream media commonly describes them. Gold and silver are the ONLY constructs satisfying the definitional criteria of money, and thus have served as such for nearly 6,000 years, while all other substitutes failed.
The Cartel CANNOT prevent gold and silver from rising, but have had the ability, via ILLEGAL means utilizing a 100:1 leveraged fractional PAPER shorting scheme, to prevent it from doing so RAPIDLY and, more importantly, to prevent it from acting as a SAFE HAVEN asset when other markets are falling. In other words, the scheme is more about suppressing PERCEPTION of Precious Metals’ role than their actual prices. As long as the public believes gold is just a commodity, the Cartel could not care less how high it rises. ALL they care about is preventing it from being universally viewed as MONEY, in lieu of the worthless fiat currency they control.
I have spent more time OBSERVING and RESEARCHING this topic than anyone I know, save my friends at GATA who have devoted their lives to the cause. It is useless to debate manipulation with me, as I KNOW what is going on, with all my brains, instinct, and heart. In fact, the two RANTS below, written roughly six months ago, can be used as PRIMERS on how the Cartel operates, i.e. WHAT they are doing, WHEN they are doing it, and HOW they accomplish their goals. I am on to them like Elliot Ness on Al Capone, and each day am more honed in.
Baby Bull Twits: Cartel Secrets Revealed
Baby Bull Twits: Cartel Secrets Revealed, Part II
The title of this RANT is ANTI-GRAVITY, ironic given today’s DEATH STAR gold attack, yet again at EXACTLY 10:00 AM EST, right at the PM Fix. Absolutely NOTHING was going on in any other market when gold suddenly plunged $30 in a half hour, a typical Cartel game I’ve seen dozens, if not hundreds of times before. The name of the game is BREAKING THE SPIRIT of PAPER gold investors, whom time and again follow the pied piper to losses by investing in PAPER gold vehicles like ETFs, mining stocks, and, especially, leveraged futures and options. The Cartel has UNLIMITED, freshly printed funds to suppress these vehicles, and UNLIMITED legal reign to carry out their evil goals. How can one believe otherwise, when the CFTC, after THREE YEARS of investigating the COMEX silver market, has still made no findings, despite having a “good cop,” Bart Chilton, who states outright his belief the market is manipulated?
CFTC says silver market investigation ongoing since 2008
Bart Chilton – There is Manipulation in the Silver Market
Anyhow, by ANTI-GRAVITY, I am referring to the Cartel’s PRIMARY goal of preventing the laws of nature, and thus trading, from expressing themselves. In other words, ANY TIME gold has a major breakout, they double, triple, or quadruple their capping efforts to staunch the bleeding, until eventually the PAPER gold price BREAKS. In fact, this week was a PERFECT example of how this game is played in the PM markets, and conversely how the PPT operates in the stock market.
When reading this, keep in mind the ULTIMATE arbiter of gold prices is the PHYSICAL market, the Cartel’s ACHILLES HEEL because it CANNOT be controlled. Physical demand can be DULLED by paper attacks, but not by any means CONTROLLED. THAT is why gold is up the past eleven years, and likely will continue skyward for the next eleven.
Take note of the chart below of Monday’s gold price action (green line). Manipulation experts like myself were a bit shocked by the non-conventional action, where PAPER gold rose steadily through the day with no major smashes, even at the 12:00 PM EST “cap of last resort.” True, paper gold was capped at its usual 2.0% rate, stopped cold at EXACTLY the $1,800 ROUND NUMBER, and walked down IMMEDIATELY at the NYSE close, literally the most illiquid trading time on earth. However, closing at $1,799, gold had recaptured two-thirds of the September DEATH STAR attack, appearing poised to take another run at August’s ALL-TIME HIGH of $1,930/oz.
As a true Cartel student, I steeled myself for another attack, which is EXACTLY what we got, in EXACTLY the same manner as ALWAYS…
The blue line below represents TUESDAY’S gold trading. As you can see, the momentum of the previous day’s positive action caused gold traders to test the $1,800 level THREE more times, first at the odd hour of 5:00 AM EST, then again at EXACTLY 10:00 AM, upon conclusion of the PM fix (one of the Cartel’s FAVORITE attack times), and finally at EXACTLY 12:00 pm when gold had the gall to actually rise to $1,801, necessitating the “cap of last resort” to be instituted. After this attack, gold tried one more time to push above $1,800. COMEX gold open interest rose a whopping 5,100 contracts despite a $6 price decline, demonstrating how short-selling was utilized to defend $1,800, eventually creating a “triple-top” chart pattern and, in turn, triggering black box ALGORITHM sell programs.
After gold plunged to $1,780, it again attempted to regain momentum, shocking both the Cartel and PM investors alike. As the markets opened weakly the following on WEDNESDAY, gold bucked the trend by going UP. Remember, it is NATURAL for gold to rise when the market falls, and until the mid-2000s, gold nearly had a NEGATIVE CORRELATION to the broad market. However, one of the key Cartel tools is CREATING a strong correlation, enabling them to use it against PMs when the market is in distress, as we saw late yesterday. In other words, they are attempting an act of ANTI-GRAVITY, trying to make gold act as it otherwise would not.
In recent years, we have seen SEVERAL occasions when gold expressed its true self amidst dire market conditions, most notably in February 2009 and August 2011. However, on each occasion, such as the September 2011 DEATH STAR attacks, the Cartel viciously attacked gold thereafter PAPER gold until it eventually broke down.
During yesterday’s market rout, you can see gold was once again acting as a SAFE HAVEN. Despite the Dow falling 320 points in the morning, and the banking system on the verge of collapse, gold spent most of the morning up roughly $10, where it was capped not once, not twice, but THREE times at EXACTLY $1,800! Every tool in the Cartel playbook was used yesterday, starting with an ineffectual hit at EXACTLY 3:00 AM EST, a plunge at EXACTLY the 8:20 AM COMEX opening, with the coup de grace coming at…yep, you guessed it, EXACTLY 12:00 PM EST, when gold suddenly plunged $25 while the Dow traded in a tight 10-20 point range (I was WATCHING!).
Once again, gold attempted to regain its footing overnight, and was back up to $1,775 until EXACTLY 10:00 AM THURSDAY when, with no other market moving, PAPER gold longs were finally BROKEN with a heart-stopping $30 plunge, as the Dow traded in yet another tight 10-20 point range.
Do you get the picture what is happening, and WHY it is so dangerous to hold significant PAPER gold positions, particularly utilizing LEVERAGE?
Of course, the true meaning of ANTI-GRAVITY is borne out by the PPT’s relentless support of the Dow, the POLAR OPPOSITE of what I wrote above. In fact, I could probably END THE RANT in one phrase, by simply stating that EVERYTHING written about the Cartel’s tactics in PM suppressing tactics is reversed when referring to the PPT’s Dow-supporting strategy. I could write a PRIMER on PPT activity as well, if I had a mind to waste my time on such frivolous pursuits. Suffice to say, until the END GAME commences, when the gold Cartel is swamped by PHYSICAL demand, yielding PUBLIC PERCEPTION of DANGER, we are likely to see the same, relentless Dow support, day after day after day. How else can the Dow be UP for 2011 while EVERY MARKET on earth is down sharply, amidst a MASSIVE, GLOBAL financial crisis ROOTED by the reckless activities of American fiscal and monetary policy?
A collapsing economy, soaring unemployment and debt, rising inflation, insolvent banks, political turmoil, a downgraded debt rating, and economic, banking, and currency crises around the globe…yet, Dow futures NEARLY ALWAYS rise in the pre-open market and, in HAIL MARY, fashion, at day’s end. Yes, EVERY market worldwide is down, but NOT the Dow. No, nothing untoward is going on.
How about TODAY, a perfect example of Dow ANTI-GRAVITY?
Overseas markets were in crash mode early on, as they should be, with European bond spreads surging, but PARTICULARLY among the PIFIGS…
Italy 2s10s Inverts For First Time Since August 1994 As French and Spanish Spreads Widen To Records
…when this gem of a story hit the tape…
Snap Reactions To Italy’s €5 Billion Bill Auction, Which Reeks Of Illegal ECB Intervention
Yes, readers, the ECB shelved a €3 billion EFSF bond deal LAST WEEK due to lack of demand, but we’re supposed to believe that ITALY, which yesterday had its worst bond crash in HISTORY, had a massively oversubscribed debt offering? By the way, ECB charter PROHIBITS the purchase of sovereign debt from primary auctions, so we’re supposed to believe the PUBLIC was falling over themselves to buy? If ever a story PROVED governments illicitly intervene in markets with COVERTLY printed money, this is it!
But then again, why listen to bankers that TELL you their intentions?…
BOJ Should Seek 10-Fold Easing: Ex-Member
…or what economic data ENSURES they will do…
Foreclosures jump 7% in October from September
New Wave Of Mortgage Defaults On Horizon
First look at US pay data, it’s awful
…or what ratings agencies CONCLUDE…
FT Deutschland On The Upcoming Austrian AAA-Rating Downgrade
…or that anything published by the U.S. government is a LIE, such as the bogus 3Q GDP report, which, just a week later, looks set to be revised sharply downward…
US Decoupling Over: JPM Cuts Q3 GDP From 2.3% To 1.6%
…or that U.S. politicians are the most despicable, lying thieves imaginable (watch this if you want to puke)…
Jon Stewart Makes Mincemeat Out of Jon Corzine
…surpassed only by U.S. bakers, led by JP Morgan.
Remember Matt Taibbi’s March 2010 article about how JPM raped and pillaged the municipality of Jefferson County, Alabama?
Looting Main Street
Today they filed the largest-ever Chapter 9 bankruptcy, with roughly $5 billion of debt.
Jefferson County Files Largest Ever Chapter 9 Filing
Now that I got the “horrible headlines” out of the way, let’s see what happened in Europe since the “much better than expected” Italian bond offering.
To start, Germany cancelled the planned “emergency crisis meeting”, causing PIFIGS yield to rise anew…
French Spreads Back Near Record Wides As Germany Poops On Europe’s Printing Party Again
…then, the CEO of the ISDA, the international derivatives regulator that comically ruled the Greek “haircut” proposal to NOT be a “credit event”, resigned…
ISDA CEO Stepping Down
...prompting European stock markets to end at their lows of the day (roughly unchanged) and PIFIGS bond spreads to sharply widen…
Europe Recovery Rally Fizzles As French Bund Spreads Hit Record On Fresh Downgrade Rumor
…but don’t worry, the Dow, which declined to +20 this morning, was heartily supported by the PPT, and is now up 115 points, yet again defying gravity.
Readers, the reason I write about manipulation is to EMPOWER you to think critically. My BUSINESS may be bullion sales, but my GOAL is helping you PROTECT YOURSELVES. The more you UNDERSTAND about what is REALLY happening in the world (versus what TPTB WANT you to believe), the more informed and efficient decisions you will make.
If you learn ONE THING from me, it should be to NOT listen to Ben Bernanke when he gives financial advice!
Bernanke Tells American Soldiers To Make Good Financial Decisions Even As He Routinely Bails Out Those Who Don’t
PROTECT YOURSELF, and do it NOW!
Andrew C. (“Ranting Andy”) Hoffman, CFA
Miles Franklin Ltd.