by Dave Kranzler, Investment Research Dynamics:
Non-farm payroll report comes out and Spoos [SPX futures] go down 32 handles. Gold starts off up $4, now down $6. This is totally rigged. I’m going to Vegas, at least the tables are more level then these markets and I get free booze and some really hot chicks. – reader comment after employment report hit the tape
Despite the rhetoric coming from the Richmond Fed’s Lacker, there will be no interest rate hikes in September. It’s not about the fictitious and indisputably managed and manipulated non-farm payroll report, it’s about the catastrophic degree of leverage in the banking system.
All along, despite the disingenuous pretenses of helping “main street,” the Fed’s money printing has been targeted specifically at keeping the big banks from collapsing and to enable them the continue sucking wealth out of the U.S. economic system. Secondarily, it’s enabled the U.S. Treasury to continue issuing debt obligations that will never be repaid.
There will be no interest rate hike in September, or in 2015 for that matter.
In order to support this intended monetary policy, the Fed has to discourage investors from converting fiat paper money into real money – gold and silver – by creating shock and awe terror in the paper precious metals markets (hey, it worked with 9/11 and we got the Patriot Act, Detainee Bill, Homeland Security Act and an unfettered NSA).
Here’s what this anti-gold terrorism looks like in the paper gold trading market – click to enlarge – the time-scale on the x-axis is MST:
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