Monday, April 25, 2016

Gold manipulation in the U.S. goes back to 1987 when Greenspan made it Fed policy to protect the stock markets

If there ever was an example for just how much power the simple yellow metal known as gold holds in the world's financial system, all one has to do is look at the depth and breadth that manipulation over its price has been used by Western central banks.  And with the revelations two weeks ago of Deutsche Bank finally admitting that not only they, but many bullion banks conspired to hold down gold prices, a shocking revelation by well known journalist F. William Engdahl sheds new light in just how far down the rabbit hole gold price suppression goes.

"The first time I came across evidence that select Wall Street and other major international banks, in cooperation with the Federal Reserve, were deliberately suppressing the world gold price was in the aftermath of the global stock market crash of October, 1987. That was when the Dow Jones stock index lost 23% in one day," the researcher narrates. 
Indeed, on October 19, 1987, the United States faced a severe stock market crash: within one day — the notorious "Black Monday" — the Dow Jones Industrial Average (DJIA) swiftly lost 508 points. The crash prompted deep concerns regarding apparent inefficiency of the US' monetary system. 
"John Crudele, an exceptionally persistent financial journalist with The New York Post and John Williams of Shadow Government Statistics and an exceptional economist, informed me at the time of the gold manipulation reports," Engdahl continues. 
"The reason for the fix, which then-Fed chief Alan Greenspan reportedly orchestrated, was to prevent a stampede by panicked investors out of risky stocks and bonds into gold. Had gold profited from the stock panic, it could well have been an early end to the dollar system. It worked then to prevent a gold rise," the researcher underscores. – Sputnik News
And as you can see on the chart, gold declined from late 1987 following the October stock market crash and did not recover that year's high of over $500 per ounce until the events of 9/11 brought enough buying pressure to overwhelm central bank manipulations 14 years later.


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