Kelly Mitchell - Gold Wars: The Battle for the Global Economy

2013 Kelly Mitchell

ISBN: 978-0-9860362-6-2
EBOOK: 978-0-9860362-7-9

In-house editor: Diana G. Collier
Cover: R. Jordan P. Santos

ALL RIGHTS RESERVED: Except for purposes of review, this book may not be copied, or stored in any information retrieval system, in whole or in part, without permission in writing from the publishers.

Library of Congress Cataloging-in-Publication Data

Mitchell, Kelly.

Gold wars : the battle for the global economy / by Kelly Mitchell.

pages cm

Includes bibliographical references and index.

ISBN 978-0-9860362-6-2 (alk. paper) -- ISBN 978-0-9860362-7-9 (ebook) 1. Gold. 2. Gold--Purchasing. 3. Precious metals. I. Title.

HG293.M66 2013

332.45--dc23

2013032174

Clarity Press, Inc.
Ste. 469, 3277 Roswell Rd. NE
Atlanta, GA. 30305 , USA
http://www.claritypress.com

TABLE OF FIGURES

1. $1.24 Billion in gold sold short in seconds. futures.tradingcharts.com/hist_GD.html
2. Diminishing marginal productivity of debt in the US economy (in dollars). Economicedge.blogspot.com Diminishing marginal productivity
3. Exters Pyramid. Wikipedia.org/exterspyramid
4. US Debt and Debt Limit vs Gold. goldsilverworlds.com/7-factsproving-we-are-in-a-long-term-powerful-uptrend-in-gold-and-silver/via sharelynx.com
5. Gold is not in a bubble. http://www.resourceinvestor.com/2011/04/25/dont-fear-a-pullback-in-prices via Dundee Wealth
6. Rising Prison Population. asymptotes of power. bnarchirves.com
7. Income share of the top 10% of the US population. asymptotes of power bnarchirves.com
8. St. Louis Adjusted Monetary Base. FRED - Federal Reserve Economic Database/St. Louis Adjusted Monetary Base Series
9. Money Creation Cycle. Cynic.me/frackin-reserve
10. National Debt. globalnewsdaily.com/Off-Camera/National-Debt-1940-to-the-Present.htm from brillig.com
11. Cumulative Inflation by decade since 1913. inflationdata.com/Inflation/Inflation/Cumulative_Inflation_by_Decade.asp
12. Oil consumption vs monetary expansion. oftwominds.com/blogoct12/six-charts10-12.html
13. Safe Assets by percentage. IMF Global Financial Stability Report, April 2011 via economicsfanatics.com
14. Average Cumulative Returns on S&P 500 Index on days before, of and after FOMC Announcements. Federal Reserve
15. Average Cumulative Returns on S&P 500 Index on normal and FOMC Window Days. Federal Reserve
16. The Amazing ROI of Corporate Lobbying. United Re:public
17. SEC Lenders - Lending and Reinvestment Flows. Federal Reserve
18. Forecasted World Gold Production from gold mining Likely to Delcine. Mercenary Trader
19. Declining Value of the US Dollar (USD) la.org.au/opinion/210311/global-imbalances-and-collapse-us-dollar. in Public Domain
20. Developed Economies Balance Sheets in $. doctorhousingbubble.com/global-housing-bubbles-china-real-estate-bubble-canada-housing-bubble/ from Federal Reserve Economic Data
21. Assets of the Federal Reserve System. en.wikipedia.org/wiki/Federal_Reserve_System
22. Reserve Balances and QE. research.stlouisfed.org/fred2/series/WRESBAL/
23. Shadow Bank Liabilities vs. Traditional Bank Liabilities (SBN) zerohedge.com/article/shadow-bank-liabilities-plunge-700-billion-q2-21-trillion-year-date
24. Consumer Inflation - Official vs Shadowstats. shadowstats.com/home
25. Annual Inflation Rate (%) comparativepoliticseconomics.com/historicalinflationrate
26. Annual Inflation Rate - Japan %. azmytheconomics.wordpress.com/2013/06/19/overview-of-the-japanese-economy-part-1/
27. Gold and US Real Rates. marketoracle.co.uk/Article26187.html
28. Gold YoY vs Real Interest Rates (since 1978). hks.harvard.edu/fs/jfrankel/Commodindex&r1950-2005.jpg
29. Gold Kept Rising Despite Analysts Forecasts. financialsense.com/contributors/frank-holmes/how-gold-miners-leverage-price-gold
30. Performance of the S&P 500 v. Gold and Gold Stocks. smartknowledgeu.com/blog/2013/01/the-one-chart-that-explains-themassive-risk-in-investing-in-gold-gold-stocks
31. Gold Intraday Average and PM fix 1998-2011. goldsilverworlds.com/gold-silver-insights/gold-price-manipulation-proven-on-theintraday-charts
32. Gold August Future intra-day chart June 7, 2012. safehaven.com/article/26474/a-high-frequency-attack-on-gold
33. Gold August Future intra-second chart June 7, 2012 at 21:21:20. safehaven.com/article/26474/a-high-frequency-attack-ongold
34. US Federal Reserve Gold Holdings vs US Public Debt. tfmetalsreport.com/comment/323548
35. LBMA Gold Forward (GOFO) Rates. news.goldseek.com/Gold-Seek/1272866760
36. Separation of Physical Demand and Paper Demand in Gold. zerohedge.com/news/2013-05-16/gold-demand-one-chart-physicalvs-etf
37. Canadas Silver Maple Coin Sales (in millions). agorafinancial.com/research/html/ost_westpoint_061313/?code=EOSTP805&ver=1&n=OST_Westpoint_061213
38. Silver Lease Rates. kitco.com/lease.chart.silv.html
39. Two Banks Net Short as Percent of Commercial Net Short & Silver Price. news.goldseek.com/GoldSeek/1238360122.php
40. U.S. Gold Import-Export Deficit Jan-Jul 2012. financialsense.com/contributors/steve-angelo/u-s-exporting-record-amounts-ofgold-overseas
41. Chinese Gold Imports from Hong Kong. rocksituationreport.com/2013/02/10/february-2013-7th-13th/
42. Gold arbitrage between Shanghai and Comex exchanges 12/3/12. goldenjackass.com/members/dec2012_v2.htm
43. Paper Gold and Physical Gold Divergence. zerohedge.com/news/2013-02-26/februarys-strange-divergence-precious-metals

ACKNOWLEDGMENTS

Thanks to all the people who contributed to this book through their awesome knowledge and insight into our modern financial insanity. Jim Willie (the golden jackass), Eric Sprott, John Embry, Dimitri Speck, Turd Ferguson, Nate Martin, James Turk, Chris Powell, Bill Murphy (and all the GATA warriors), Eric King, Egon von Greyerz, Stephen Leeb, Jim Sinclair, Dan Norcini, Michael Pento, Gerald Celente, John Hathaway, Andrew Maguire and Max Keiser.

FOREWORD

A book like this can benefit from a guiding metaphor like a handle to grab. The Paul Krugman con is appropriate. Economist Paul Krugman, according to the mainstream media, won the Nobel Prize in Economics. However, there is no such prize. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel was created in 1968 and passed off by the Swedish Central Bank as a true Nobel in an effort to save the dismal reputation of economics. Its most often awarded to stock market speculators, one of the Nobel heirs claimed. Robert Merton and Myron Sholes won it for their formula valuing derivatives to minimize risk. Nine months later, their firm LTCM nearly imploded global bond markets and required an emergency intervention.

The bank managed to slip the prize in with those created by Alfred Nobel. They did it to get scientific validation and wrest control from democratic processes a relentless central bank strategy in all countries. Scientists are miffed but the public is none the wiser. Thats the way it is with central banks in particular. Most non-insider experts more or less despise them as a renegade force that has seized control, but the public is treated to a steady diet of propaganda and little understands the intense debate. Far worse, they have no idea that the stakes could not be higher.