Top German Regulator: Precious Metal and Currency Manipulation Are WORSE Than Libor

The New Largest Financial Scandal In History …

The Libor interest rate scandal was the biggest financial scandal in history:

  • Even though RBS and a handful of other banks have been fined for interest rate manipulation, Libor is still being manipulated. No wonder … the fines are pocket change – the cost of doing business – for the big banks

But the head German financial regulator said today that manipulation in gold, silver and currencies is worse than the Libor scandal:

Germany’s top financial regulator said possible manipulation of currency rates and prices for precious metals is worse than the Libor-rigging scandal, which has already led to fines of about $6 billion.

While this is the first time a regulator has said this, several financial writers – including Thomas Pascoe – have previously said the same thing.

Yup, Currency Markets Are Rigged

Indeed, currency markets are massively rigged. And see this and this.

Yup, Gold and Silver Are Manipulated Also

Gold and silver prices are “fixed” in the same way as interest rates … in daily conference calls by the powers-that-be.

Bloomberg reports:

It is the participating banks themselves that administer the gold and silver benchmarks.

So are prices being manipulated? Let’s take a look at the evidence. In his book “The Gold Cartel,” commodity analyst Dimitri Speck combines minute-by-minute data from most of 1993 through 2012 to show how gold prices move on an average day (see attached charts). He finds that the spot price of gold tends to drop sharply around the London evening fixing (10 a.m. New York time). A similar, if less pronounced, drop in price occurs around the London morning fixing. The same daily declines can be seen in silver prices from 1998 through 2012.

For both commodities there were, on average, no comparable price changes at any other time of the day. These patterns are consistent with manipulation in both markets.

Moreover, big private banks – and perhaps even central banks – don’t necessarily always have in their vaults all of the “allocated” gold which they claim to have on hand.

And sometimes they apparently pledge the same gold to numerous people.

And So Are Derivatives

The big banks have long manipulated derivatives … a $1,200 Trillion Dollar market.

Indeed, many trillions of dollars of derivatives are being manipulated in the exact same same way that interest rates are fixed: through gamed self-reporting.

And Oil Prices

Oil prices are manipulated as well.

And Energy Markets

The Federal Energy Regulatory Commission says that JP Morgan has massively manipulated energy markets in California and the Midwest, obtaining tens of millions of dollars in overpayments from grid operators between September 2010 and June 2011.

And Commodities

The big banks and government agencies have been conspiring to manipulate commodities prices for decades.

The big banks are taking over important aspects of the physical economy, including uranium mining, petroleum products, aluminum, ownership and operation of airports, toll roads, ports, and electricity.

And they are using these physical assets to massively manipulate commodities prices … scalping consumers of many billions of dollars each year.

And Everything Can Be Manipulated through High-Frequency Trading

Traders with high-tech computers can manipulate stocks, bonds, options, currencies and commodities. And see this.

Manipulating Numerous Markets In Myriad Ways

The big banks and other giants manipulate numerous markets in myriad ways, for example:

  • Engaging in mafia-style big-rigging fraud against local governments. See this, this and this
  • Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here, here, here, here, here, here, here, here, here, here, here and here
  • Pledging the same mortgage multiple times to different buyers. See this, this, this, this and this. This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this, this, this, this and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See this, this and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments

As Matt Taibbi notes:

[We are] living in an era of undisguised, real-world conspiracy, in which the prices of currencies, commodities like gold and silver, even interest rates and the value of money itself, can be and may already have been dictated from above. And those who are doing it can get away with it. Forget the Illuminati – this is the real thing, and it’s no secret.

The criminality and blatant manipulation will grow and spread and metastasize – taking over and killing off more and more of the economy – until Wall Street executives are finally thrown in jail.

It’s that simple …

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  • Tonto

    The inference coming out of this article is absurd. There’s no money in manipulating gold lower.

    Like all commodities, the manipulation of gold is intended to manipulate the price higher. The more overpriced a commodity is, the easier it is to make profits by manipulating the price both up and down. Step right up, suckers! This is not a game of chance.

    The common idea that gold and silver have been manipulated exclusively lower is absurd. The price of gold is through the roof. And actually, without the TBTF banks manipulating commodities, all commodities would be trading very much lower. And by that statement I mean no less especially gold and silver.

    It is the FED and the federal government who are behind the higher prices in commodities, because it is these governmental entities that regulate the TBTF banks that are steering the economy toward… Well, I’ll let you fill in the blank there.

    Some say disaster. I am inclined to believe the world economy is being steered toward a wonderful renaissance of modern feudalism. “Freedom?” you say? Hogwash is freedom! You are a serf. You might just as well be a happy and productive serf whose ecological footprint is minimal.

    The moral imperative of life is to live a life that detracts not at all from the lives available to those who will follow us into this world.

    So, pull you head out of your fat ass and get with the program.

    • Tonto

      The extreme irony here is that when GW blog said a year or two ago, that gold looked like it was going higher, the author of the rabbit-out-of-a-hat prediction didn’t have a clue why gold would go higher. He/she was merely fleshing out his clueless instincts about gold. As I remember it gold was then trading about $900.

      • colinjames71
        • Tonto

          “Obviously they wouldn’t be manipulating the price for no effing reason.”

          The reason is to make money from all the suckers who are drawn into the gold trade. That’s simple enough. And to do that, they have driven the price sky high first.

          Understand, retard? Money is a very strong motivator. Gold as an investment is just a con-job.

          • colinjames71

            Think what you want. I think I’ll take the word of P.C. Roberts. And the “top German regulator” and I’m sure plenty more experts. I know, how retarded of me right? Sheesh. Also, I’m not arguing the merits of gold as an investment, that’s not even the point of the articles, it’s how and why it’s being manipulated. That’s all.

    • There is a reason I became #6 Thumbs down; your a FKING idot!

  • tom d

    toto I read your post i find it amazing that you think that way. Someone with huge pockets put in massive naked shorts to bring down the price on the last few seconds of trade heading into the May day two years ago. They caused massive margin causes because other markets were closed. The following week they made massive changes in the margin cause forcing a crash into gold and silver. The number of naked shorts was so huge that no one would have the finance to submit the number without having a printing press. So I do not believe central banks want the price up for one thing it caused problems with the fiat scam that they run. There were hundreds of billions made in the shorting of gold and silver so I fail to se how you feel there is no money to be made. There is the greatest amount because you do not have to own anything just sell it and with the disgraceful comex they allow it.

    • morpheus1994

      Please don’t respond to this guy. He’s an obvious troll on somebody’s payroll. He goes through all the articles and posts ridiculous crap. You’re wasting your time.

      • tom d

        Morpheuw: I am not sure if you are tell people that I am a troll and I go through all the articles. BTW I am not on anyones payroll. I have a lot of skin in gold and silver and I actually wish that I did not because I believe it is totally rigged game. I do read a lot and I post a lot of my opinions. I think most adults have he ability to take facts and know that someone is opinionated. As far as a waist of time, I do not know how much your time is worth since you apparently read my posts and you have decided I am a waste of time. Many will agree but that is life. I find posting gets some to post more information and some actually post in a way to know who they point the finger and tag when they have back up. If it is me then I do not have to worry because you will not read but frankly my dear I do not give a damn. when young my government sent me off to south east asia and left me live in a tent many times and rotten facilities. They worked me 7 days a week and gave me 5 days off to go someplace which I did and it was Bangkok. That was fun but I think for my time which I did not give freely but I did go when the bell war rung that give me the right to type on the internet which could be the greatest wast of time every. Have a nice weekend and do not waste any time.

        • Rat’s Ass

          The M is not responding to your comment. He’s a troll leading all the fools off into a place where they can all agree.

          Check the time stamp. M is so ignorant, he is clearly incoherent most of the time. So don’t be confused.

    • markii

      thanks tom, its good, and thanks morpheus for alerting us, but doesnt it make sense that if germany has reserves and are wanting them back from the fed-who are delaying it out to eight years to return just the portion requested, then theres a lot of reason for certain interests to want the price to stay down while they resecure the physical gold to repatriate to germany. It looks to me like the most massive of squeezes and it may even be a legacy of twenty years old selling of gold, before they realised that cheap credit would make all commodities spike…?

    • Tonto

      When the TBTF banks set out to manipulate a market, like commodities, they not only drive a price down, they also drive the price up. They make money going both ways. And the facts surrounding the logistics of market manipulation make it advantageous to first push a commodity price higher, before dropping it back down again. Repeat and rinse. Clear the tables again. This only makes market manipulation sense. And most everyone speculating in the gold market will affirm, that they have bought too high and sold, and sold to low, when they should have bought. The gold marketplace has been ridiculously manipulated, both up and down, but clearly, much more up than down. The price of gold market was initially pushed way-way up to bring in all the suckers!.

      Go read this financially titillating, and equally financially asinine article about gold going to $5000 written back in 2011. Look at the ninety names of commodities analysts that were predicting ridiculous prices for gold in 2011. All these people, many of whom are are the payroll of the TBTF banks had a very real financial incentive to pump and dump gold!

      http://www.resourceinvestor.com/2011/06/29/updating-90-analysts-who-foresee-5000ozt-or-more-g

      You’re far too conspiracy-theorist oriented to understand these market maneuvers. As far as Germany’s gold goes, or Venezuela’s gold for that matter, the reason what happened happened, is because it could happen. The market moves every time a sovereign demands its gold back. In these moves, there is a vast opportunity to make money, and in both cases, Germany and Venezuela demanding their FED held gold reserves back, the market moved higher. It’s all orchestrated. It’s all choreographed. And it’s all done just to move the price of gold higher. It’s theater.

      You’d have to be a pea-brained fool to think those manipulated moves made by these demands for “physical” didn’t make money on those upward market moves. Venezuela’s demand for physical gold is attributed with the short quick rise to $1900 an ounce. Duh!

      As far as my being on the payroll of “somebody” and my posting ridiculous crap, again, most everyone here on GW blog has this common and mundane conspiracy-theorist mentality that is severely constricting their analytical ability. I hope you all read the article comments recently when and where some twit was proclaiming his genius IQ and advocating legalization of all drugs. People really believe their idiotic shit.

      Right now I am selling my new book. No, it’s not a conspiracy theorist’s tale about the 1% screwing the 99% Neither is it a socialist tract about public banking delusions of grandeur, or the imminent legalization of dope, prostitution and group sex, nor about going back to the gold standard when the dollar “collapses”. LOL!

      This book is more of a love story set in my home town, Limestone, Maine, which is 250 miles northeast of Montreal, Quebec, Canada. (I hope someone challenges me on that ridiculous geographical statement. And I hope they have a map of north America too.)

      Maine – A Love Story http://www.amazon.com/dp/B00HI5OLM8 It’s available on Kindle and in paperback.

  • I want someones FKING Head!! They stole my price at $48….

  • Katy Henderson

    Even though RBS and a handful of other banks have been fined for interest rate manipulation, Libor is still being manipulated. No wonder … the fines are pocket change – the cost of doing business – for the big banks
    This makes you wonder–Since the TBTF Banksters are making Billion$ by market(s) RIGGING–only later—as in much later, when the public usually calls the OBVIOUS out, such as the case for silver manipulation and the SHADY 5 Year Long “investigation” by CFTC which the normal supposed “regulators” fine these Bankster Criminals, but as the fines are a drop in the bucket compared to the MASSIVE Wealth the Bankster Criminals have stolen and accumulated, they are only too happy to pay such minor “price to do business-fines” and then who gets this multi-billion dollar fine? Certainly not the people who have lost their azzes to the “Rigged Game”…. and hence makes you also wonder why no one calls out the other co-conspirators, the regulators! Even now, the CFTC does NOTHING even when Banksters Insider Whistleblowers spell the game out completely for the CFTC employees, even when the average joe on the street notices the huge price manipulation in gold and silver, keeping the prices down to prop the US Dollar up making it appear more sound that it is, the CFTC does nada….nothing…not a Damn Thing has Happened to the Bankster Criminals involved in gold and silver price manipulation and hell its so obvious even the average homeless man notices now! Seems as though the CFTC is guilty too in their complacency. And simple fines–less than the estimates stolen from their crimes benefit no one but the agency collecting it and so is no deterrence making these agencies co-conspirators again making money off those who have lost and the economy and all the rigging…therefore these “regulators” and agencies supposed to be looking out for the people, are again, only looking out for themselves too. What a SICK game we have going on. No wonder everyone loses faith in the US Gov and their politicians and resort to violence–no one does the right thing. All is out for themselves period.

    Tar and Feathering is way too good for all these Banksters Mafia Crime Lords destroying the worlds economy, and the people, while making billions for themselves! There is much talk of what will actually happen to these thieves who have literally destroyed millions of hard working peoples lives and to whom nothing is ever done for their crimes. I know this, I wouldn’t want to be them for they have riled the anger of an incredible amount of people the world over. And there are only so many places one can hide for any length of time. A fool and his money…these, will end in one prison or another.

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