Gold manipulation continues.

Last week saw gold beaten down to 1,556/oz. The technicals were in favor of a breakout at 1,700. King World News identified the culprit as the Bank of International Settlements that engineered the takedown. These takedowns are getting dangerous as a certain amount of gold metal has to be thrown into the market to make the takedown work. At the rate we are going, China will end up as the holder of most of the gold in the world.

Why is that bad? First, because the Chinese are not exactly the nicest businessmen in the world. Also, once the Dollar is dethroned as the world's reserve currency, printing money will no longer be possible without the consequences of what any other third world country faces.

We are reminded by KWN of what happened the last time a crazy FED printed money:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/23_Coming_Soon__%2410_Trillion_Of_Yearly_QE_%26_Fantastic_Gold_Chart.html

In 1979, we had a far stronger economy and especially a stronger financial system. Gold shot up to over 800/oz. Volker responded by raising the prime from 10% to 20%. That broke inflation, reduced the gold price and with the tax cuts of RR it ushered in a 20 year secular Bull Market and prosperity that did not end untill the end of Bill Clinton's Presidency.

The Obama regime has weakened our financial system. Even a 10% prime rate would add $1.7T in interest payments, bringing the on book deficit to $3.0T. That means that the US would have to declare bankruptcy or pay for most of its operating budget out of printed money.