Today one of the most well connected hedge fund managers in the world told King World News that a criminal syndicate of banks is raping the gold market with the cooperation of the US Federal Reserve. Outspoken Hong Kong hedge fund manager William Kaye also spoke with King World News about exactly how this is being done and who is profiting. Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in part III of an extraordinary written interview series which will be released today.
Kaye: “Look at what’s happening to GLD and these other exchange traded products. The gold is being looted, and it’s being looted in a systematic way. GLD is a great example because it is by far the biggest gold ETP (exchange traded product) in the world.
Who can deal for gold with this exchange traded product? Who can deal with the Trustee? Only ‘bankster’ banks. 15 bankster banks deal with Bank of New York Mellon who is the Trustee (of GLD), and negotiate the price based off of the London fixing, which is (also priced by) 5 bankster banks, the same crime family....
Continue reading the William Kaye interview below...
“Off of that London fixing they transact to get physical (gold) out of HSBC London, another bankster bank. That’s the custodian. That’s where the vault is. The process is pretty simple.
Most of the time it works according to one formula: They (conspiring banks) short the COMEX futures, which GLD tracks by design, into the London fix in order to get an attractive price at which they can transact for physical gold. Then, at some point in New York time, typically both GLD and the COMEX futures will trade down further below that London PM fix.
That is the price at which the bullion banks gobble up the shares of GLD at a discounted price, and redeem them in minimum lots of 100,000 (shares). That’s about $14 million US. So you can rule out most investors and certainly almost all retail. They present these discounted GLD shares to Bank of New York Mellon, who then cancels the shares and releases (physical) gold from HSBC London.
They (Bank of New York Mellon) give the instruction out to HSBC to release the gold to the bankster banks. Now this is a very profitable business. The banksters are making money in two ways: First of all they are arbitraging the spread between the discounted price at which they buy GLD, because with the Fed’s help they are manipulating the futures price down.
The second thing is normally they take their foot off the brake a little bit in my time in Asia, because demand is very high here with the price so low. They allow the price in Asia to go up a bit. Things tend to recover in Asia time before we rinse and repeat.
What they (then) do is the bullion banks sell the physical gold, which they acquired at a very attractive price, at a profit in Asian (trading) time. So there are two sources of profit: One is the arbitrage profit, which occurs in New York time, and the second is the profit off of the discounted, manipulated physical price that they receive for selling at a higher level in Asia.
So this is a great business for the bankster banks. The same people who rigged LIBOR, I’m telling you are very obviously rigging the gold market. It’s so obvious that only the mainstream media would not be able to figure this out.”
About William S. Kaye from pacgrp.com
William S. Kaye: Founder,Vice Chairman & Sr. Managing Dir. of the Pacific Alliance Group
Mr. Kaye, PACG's Vice Chairman and Senior Managing Director, is a founder and principal shareholder of the Pacific Alliance Group of companies, which was established in 1991 in Hong Kong. Mr. Kaye oversees all portfolio and direct equity management activities of the group's various investment efforts.
Mr. Kaye is the Managing Partner of the Greater Asian Hedge Fund, as well as its predecessor, the Asian Hedge Fund, LP (1992-98). Both funds have exhibited a consistent history of absolute and relative outperformance that has been recognized by independent rating organizations.
As Founder and Director of PAG subsidiary ASIMCO (1992-1998) Mr. Kaye pioneered the investment of approximately US $380 million in China, principally in the automotive components and brewery industries. Mr. Kaye orchestrated the profitable sale of PAG's stake to GE Pension Trust in 1998. Currently, he serves as the Chairman and major shareholder in Yaolan Ltd, whose Babycare Limited subsidiary is China's premier marketer of infant care and family nutritional products. In addition, Mr. Kaye is a founding director of Synergenz BioScience Limited, which is an early stage genomic testing company developing personalized risk assessment tests for pulmonary diseases.
Prior to founding PAG, Mr. Kaye was Manager of the Arbitrage Department (1984-1990) and a Member of the Board of Directors (1986-1990) of PaineWebber Incorporated in New York. Mr. Kaye joined Paine Webber (PW) in 1978, leaving the Mergers & Acquisitions Department Goldman, Sachs & Co, and successfully built PW's Arbitrage Department into an industry leader.
Mr. Kaye received a Bachelor of Arts (cum laude) degree from Vanderbilt University in 1975 and an MBA degree from the University of Chicago Graduate School of Business, where he was graduated as a Beta Gamma Sigma scholar in 1977.
Prior to the severe sell off in Gold Futures we discussed here that massive manipulation would take place in in the Metals Comex markets. In much the same way that stocks have been inflated and bonds overpriced in the United States by the Fed--now the rest world is now doing everything in the same manner. First, to follow suit was the ECB, then the Bank of England, and now the Bank of Japan. These governments have purchasing power, account balances, that are so massive that they have leverage to obtain unethical quantities of debt (credit); This is all possible because of the all too eager hands of corrupt banks in line to scheme the retail customers, whom are unable to compete with such incredibly enormous multiples of leverage.
The system feeds itself through each country's GDP; It will continue sustaining itself as long as the game continues. When it stops, the world economy will completely collapse. The recession of recent years will be but a mere baby of what is to be the mother of all financial calamity. The problem is unavoidable: it lies at the center of everything--the architecture of the world's financial system, which is fiat currency. The bubble is in the money itself.
Unfortunately, the impending doom resides with regular citizens, of their respective countries, as they are being robbed blindly. If 7 billion people reside on this earth, 7 million will end up living comfortably with tangible assets (housing will collapse again, mortgages are backed by money). It is fairly easy to understand once the system is uncovered; that is why powers that be have gone to extraordinary depths, using all available resources, to mask from the public the inevitable, utter, failure of economic policies that were instituted in the Great Depression Era. The recent bubble was masked by the housing collapse, and prior to that by the Dot Com's, and there were reasons for all the collapses before that. If ordinary people knew that the system was to blame for every financial problem of nearly the last 100 years, there would be absolute chaos.
For example, Bank of New York Mellon is the Trustee of the GLD, which is the Gold ETF, Exchange Traded Fund. The GLD tracks the underlying Gold Futures Comex Contract. The 'bankster' Banks, with the cooperation of the purchasing programs of our federal government, and then more and more governments around the world, have grown so inter-connected that they are noticeably starting to wreak of fraud. So, what better way to change the dialogue, to take the heat off of the system, than to blame it on Wall Street and all of the HFT Firms (High Frequency Traders). This has been done for years, with different parties getting the blame along the way--remember Joe the Plumber, Main St. vs. Wall St. This is because there is absolutely no logic to the premise that Demand has continued to Rise whilst Price goes Down. This means that the obligations these banks have to deliver the tangible gold they owe is simply not in their possession. This type of economy has never worked in the history of financial markets. In order to fully grasp this debacle, we must attempt to follow this process full circle. When Gold Comex Futures had the major selloff, Goldman Sachs naked shorted 400 tonnes of gold.
He concludes in a somber tone, there are roughly, 7 Billion People on earth, and out of those there will be 7 million Masters; the remaining will all be Serfs. The Masters, they will Own tangible assets, gold & silver. The Bubble is in the money itself. The Fed, Bank of Japan, ECB, & Bank of England-- they are so desperate to depress Gold because otherwise it would show Fiat is completely fabricated lie; the architecture doesn't work. In the 1930's Franklin D. Roosevelt issued an Executive Order. The Federal Reserve Note at the time could be redeemed for 1 troy oz of Gold at their banking branch. In 1933-34 the dollar was fully backed by gold. Then the contract was broken by banks. The Executive Order, not approved by Congress, allowed citizens to keep 5 oz. of Gold; the rest had to be turned into the Federal Reserve or risk being confiscated, which brought with it a 10 year prison term along with significant financial penalties/fines. This move allowed the Federal Reserve to recapitalize itself. The rest of world was already on a Gold standard; there seemed to the government that there was no other way for the U.S. to gain an advantage. We must remember that FDR ran his campaign on an Anti-bankster platform and was elected on it...People were losing family farms, going broke--times were very tough. It is where we are headed today, think about it, the Great recession was foreboding a much more ominous tone. Since then, Gold has been suppressed; paper instruments have been artificially inflated. It is inevitable that Gold goes to $5,000-$10,000, but the resulting price is not as important as the fact it will be re-balanced along with everything else. An Economic Ice Age: the Stock Markets collapses on itself; Housing collapses on itself (mortgages). The Debt is not going away...The Middle class is at risk of being wiped out--about to be eviscerated. People will have no choice, and will look for Gov't to save them: Social Welfare, Food stamps, Welfare. This should all sound familiar, as it is already happening-- people are becoming totally dependent on a corrupt Gov't. It is a dampening thought, that the Middle Class, that United States citizens have always taken great pride in, which spawned out of, as Tom Brokaw's book entitled, 'The Greatest Generation,' will see the largest redistribution of wealth, an extinction event, creating a nation of slaves.
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