Addison Wiggin: The 'zero hour' scenario

Section:

9:20p ET Tuesday, June 4, 2013

Dear Friend of GATA and Gold:

The Daily Reckoning's Addison Wiggin shows again tonight that he understands Western central banking's racket in the gold market.

"Remember," Wiggin writes, "the main reason central banks are in business -- to benefit their biggest and most powerful member banks. And what's beneficial to U.S. and European banks is gold leasing. Commercial and investment banks lease gold from a central bank at bargain rates -- usually less than 1 percent a year. Then they sell that gold into the private market and plow the proceeds into. ... well, anything that yields more than 1 percent. It's a sweet deal if you're a banker.

"'But then the gold is gone, right?' Yes. If the central bank wants its gold back from the commercial and investment banks, those banks would have to buy gold on the open market -- driving up the price. That's a bad deal if you're a banker.

"So usually there's a tacit understanding: Central banks don't ask for their gold back, and the commercial and investment banks roll over their gold leases. As long as they're earning more than 1 percent, the debt service is easy-peasy.

... Dispatch continues below ...



ADVERTISEMENT

How to profit in the new year with silver --
and which stocks to buy now

Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million.

Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets.

To learn about this report, please visit:

http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp...



"But if a central bank asks for its gold back, it's game over."

Wiggin even notes the deceptive accounting used by Western central banks to conceal their gold leasing. He doesn't quite explain why gold leasing is concealed -- to facilitate secret intervention in the currency and gold markets -- but you already have gotten the answer from GATA (and the International Monetary Fund) here:

http://www.gata.org/node/12016

Wiggin's commentary is headlined "The 'Zero Hour' Scenario" and it's posted at the Daily Reckoning here:

http://dailyreckoning.com/the-zero-hour-scenario/

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Join GATA here:

Liberty Mastermind Symposium
Double Tree Hotel, Dallas-Fort Worth Airport
Friday-Saturday, June 28-29, 2013

http://www.libertymastermind.us/

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16



ADVERTISEMENT

Buy metals at GoldMoney and enjoy international storage

GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, ­taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:

http://www.goldmoney.com/?gmrefcode=gata