London Gold Fix Closed – Sign of Drastic Changes the World Financial System Is To Go Through

by Valentin KATASONOV, The closer of London Gold Fix (LGF) on March 20 is big news. The first London gold fixing was performed in 1919; it had a short way to go till its anniversary. The system of its functioning was simple enough. A number of leading participants started a fixing process to reach a balance between supply and demand to set the price. The gold fixing provided a recognized rate that was used as a benchmark for pricing the majority of gold products and derivatives throughout the world’s markets. There were five participating banks and market makers that made up London Bullion Market Association – LBMA. London Gold Market Fixing Ltd. exercised the administrative control. For many years LGF was perceived to be an ideal instrument for fixing the gold price on the world market, especially for individual contracts and derivatives (paper gold). The rates were used for evaluating monetary gold reserves and liabilities pegged to the precious metal (for instance, bank deposits denominated in gold). The drawbacks of the system were hushed up, no matter more and more questions were being raised, especially during the recent 10-20 years. The Bretton Woods system disappeared in the 1970s. Gold stopped being a monetary metal to become a normal commodity. It would have been logical to trade gold with its price fixed as if it were an ordinary operation at commodity exchange. In recent years LGF looked like an anachronism, an old fashioned structure to add to or, to some extent, substitute ordinary markets trading non-ferrous and precious metals. The most perspicacious experts noticed that LGF was an ideal instrument for the Rothschilds to control the gold market. As is known, the gold standard was created by Rothschilds in the XIX century. After Napoleonic wars the family got hold of major part of European gold, so the gold standard made it fabulously rich guaranteeing stable demand for the precious metal. The Rothschilds did not sell it to central banks or treasuries of other countries. Instead they granted gold credits. The First World War put an end to the functioning of gold standard mechanisms. The Rothschilds wasted no time to react. In 1919 they created LGF to control the world gold market through London gold fixing. The Rothschilds -controlled N M Rothschild & Sons was the leading bank of the five. It was founded at the beginning of XIX century by Nathan Rothschild. Other members of «golden five» were related to the Rothschilds by invisible ties. It can be said that LGF was the Rothschilds ’ creature. In 2003 N M Rothschild left gold fixing but it did not mean the family left the business. It controlled LGF behind the scenes. By that time there were many frauds and manipulations affecting the functioning of the market; the situation could have gone out of control. There was a risk of world-wide scandal. To avoid involvement the «financial geniuses» the Rothschilds decided to go into the shadows. There were a lot of interesting things happening in the world of gold trading. The Rothschilds -controlled media did it best to hush it all up. For instance, the information on tungsten operations hit the pages only ten years after the fact was discovered. The elimination of LGF is part of big game played by the «money bosses» – the Rothschilds and Rockefellers (the both are the leading shareholders of US Federal Reserve System). Gold is what the Rothschilds are after, while the Rockefellers rely on the dollar – the world currency the Federal Reserve System issues. The correlation of forces (between the Rothschilds sand the Rockefellers who are partners and competitors at the same time) is defined by the balance between the dollar and gold. It’s a well-known fact that since some time ago the gold has been greatly underestimated. The price has never returned to the peak reached in 1980 ($850 per troy). This is a comparable price. The nominal price has gone up exceeding $1000 since a long time ago. At first glance, one should come to conclusion that the Rockefellers won the battle and weakened the position of the Rothschilds . But there is a great possibility that this is just a trick on the part of Rothschilds trying to turn the temporary retreat into a strategic win to defeat the Rockefellers. There are many indirect signs that the Rothschilds played the game of lowering the gold price to automatically strengthen the dollar. It’s not financial masochism. The recent twenty years the Rothschilds used different shady and criminal schemes to buy out the precious metal, so, naturally, they needed the lowest price possible. London gold fixing functioned to carry out this task. They got gold from everywhere they could. Central banks and treasuries were the main sources, especially the United States Treasury. According to official data, there are 8100 tons of gold stored in Fort Knox. The storage has not been audited for sixty years now. According to my estimates, the probability of finding eight thousand tons (the figure offered by the US Federal Reserve System and the Department of Treasury) of gold there is much less than 1%. Former congressman Ron Paul, who is very critical of US financial authorities, believes that the probability is even lower. Continue Reading>>>

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