THE UNITED STATES PREPARES TO END PRECIOUS METALS TRADING AND SET THE DOLLAR’S VALUE OFFICIALLY, by Stratediplo

Source: The French Saker

Translation: Jack & Robin

December 22, 2014

Starting today, December 22, 2014, fluctuations in precious metal prices, which were not truly free of manipulation, will be strictly regulated in US markets. The dollar’s value in terms of gold will be an officially set constant amount and will in no way be representative of any inability to buy an ounce of gold, even for an astronomical amount of dollars.

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On December 11, the futures market regulator announced new rules for the two main markets, the Comex (Commodity Exchange) and the Nymex (New York Mercantile Exchange), based on rule no. 589, Special Price Fluctuation Limits.[1] The spirit of this maneuver is adroitly buried in technical complexities summed up in a clever grid of permitted fluctuations in absolute values (not percentages), with price ranges that differ from one metal to another, since obviously the same absolute value (e.g., $100) does not in any way represent the same percentage of the value of an ounce of a given metal, such as copper or platinum.

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It will not be said that the maximum fluctuation is 20% for all metals. But a careful reading of the grid shows, for example, that if the last price of gold was less than $1,000, the maximum fluctuation allowed (upward or downward) is $100, and if the last price was in the range of $1,000 to $2,000, the allowable fluctuation is $200, with the maximum range for gold in the grid being $3,000 to $4,000 (there is no open-ended range of, say, “$4,000 or more”).

With this new rule, the reader of the grid can only imagine what will happen when the price of gold reaches $4,000 (barely more than twice its price on 6 September 2011) – will it be unlimited free fluctuations or a definitive closure of the markets? – unless the regulatory authorities of the world’s leading marketplace believe, and expect everyone else to believe, that it is inconceivable that the price of gold in dollars could double from the price freely determined by supply and demand before the outrageous manipulations of September 2011.

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The Depreciation of the Euro, by Stratediplo

Economists say that the euro is falling. Since currencies are no more measured in gold terms but in comparison to other currencies, they mean that the euro is depreciating compared to the dollar.

It cannot be explained by Greece, which gross domestic product represents 1,9% of the euro area GDP (242 out of 12750 billion dollars in 2013): even the total closing down of Greek economy would not reduce Eurozone economy by more than 2%. It cannot be explained by rumors of intended projects of “quantitative easing” (money printing), in comparison to a dollar that did see a real active policy multiplying its monetary base by five (+400%) since 2008, representing a doubling of the monetary base every three years: it is almost impossible to print enough euros to match the amount of dollars printed in the last six years, let alone increasing the euro monetary base faster than the dollar one. In other terms, every year there are much more dollars in circulation for each euro than the year before. It cannot be explained by a possible future deflation that would not strike the USA less than the Eurozone. None of these explanations presented by economists can justify a serious loss of value ot the euro against the dollar, and when studied carefully they would rather advocate for a devaluation of the dollar against the euro. All arithmetical data are in favor of the euro compared to the dollar.
The only explanation is the strong renewed anti-euro propaganda waged by the USA, which will increase in the next two months, in order to deflect attention from the USA declaration of insolvability, total loss of debt-control and giving up on any restraint, that will (discreetly) come in March, by the definitive lifting of their famous “debt ceiling”.
If the euro goes further down against the dollar, it will not be for economic reasons but for political ones: the incapacity (or the lack of will) of European authorities to explain real figures and fight back the communication war. Because it is a war, as the one against Russia, that destroys more goods than the French bombing of Libya in 2011. And this war will intensify.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of Oceania Saker.
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