WHY - the first answer.

A few posts ago, I have asked the question as to why a couple of big banks (FED, BIS(?)) with very deep pockets are trying to knock down the price of gold. This is my first answer to the question.

First off, let me rebut Larry Edelson's take on the Gold Market. Larry claims that the takedowns in the Gold Market were not orchestrated, but normal reactions to market mechanisms. I do want to approach this statement and rebut it, not because I do not respect Larry, but because I DO RESPECT him, his expertise and his opinions. There have been several takedowns in the Gold Market and a couple of the last three or four were clearly INTENTIONAL TAKEDOWNS. No self respecting trader will phone in a SALE  order to the Asian Markets of 500 tons of gold during the lightest trading, unless he WANTED THE PRICE OF GOLD TO DROP. And obviously, he would have very deep pockets. No one but the FED (and possibly the BIS) would have the motive and the deep pockets to conduct such suicidal trade.

So, what is the motive?

The FED is struggling to keep an arrogant and increasingly desperate Empire (run by a bunch of Socialists) afloat. This Empire is unable to pay its bills, or even keep its manufacturing base. To maintain themselves in power, the Leaders of the Empire buy off the electorate by federal handouts. These programs are escalating and are the source of deficits. In order to pay for the handouts, the FED (the Empire's banker) prints money to the tune of a trillion Dollars a year.

What is the consequence of the money printing?

The consequence of money printing is always the loss of value in the currency and eventually, the repudiation of that currency. So, the FED is acting to preserve the value of the US Dollar. If gold were allowed to rise in response to the money printing, the Dollar would be repudiated. The FED, therefore is acting to maintain the value of the Dollar by knocking down the price of gold and selling Dollars to keep it from increasing in value beyond a certain point. This seems contradictory, but the Empire's partner (the EU) is in even worse shape than the US and people are fleeing its currency: the Euro.

Some of the details of this is presented by Dr Paul Craig Roberts (a former Treasury official) on KWN:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/12_Former_US_Treasury_Official_-_The_Fed_Is_Facing_Collapse.html