Brief Summary
This video discusses five predictions regarding the gold and silver markets, including potential corruption within the LBMA, the US government's possible gold accumulation, currency devaluation strategies, revaluation of US gold holdings, and the use of gold to manage debt and trade. The speakers analyze each prediction, considering historical context, current economic conditions, and potential outcomes, highlighting the complexities and uncertainties within the global financial system.
- LBMA's potential exposure in a major corruption scandal due to price suppression.
- US government's possible secret accumulation of gold since December 2024.
- Unilateral currency devaluation by the US through printing money.
- Revaluation of US gold holdings to support fiscal objectives, a balance sheet trick that may not cover the deficit.
- Implausibility of using gold to retire debt due to astronomical revaluation numbers required.
Intro
The video begins by asserting that the gold bull market is just starting, despite gold prices being around $4,500 an ounce. It suggests that the London Bullion Market Association (LBMA) is a gold price suppression scheme, contributing to a structural deficit where mining becomes unprofitable due to suppressed prices, leading to insufficient supply to meet demand. The speakers claim that a major corruption scandal has existed for decades within the LBMA, suppressing the price of gold globally.
Five Predictions
The speakers discuss five predictions from VBL's Ghost:
- The LBMA and London precious metals market will be exposed in a major corruption scandal.
- The US government has been quietly accumulating gold since December 2024.
- The United States is executing a new bilateral soft devaluation strategy, a decentralized version of the Plaza Accord.
- The US will revalue its gold holdings to a higher price level to support fiscal objectives.
- The US will leverage its gold to retire debt and stabilize trade relationships.
LBMA Corruption Scandal
The speakers analyze the first prediction, focusing on the LBMA and potential corruption. They present data indicating price suppression in the London market, where gold prices decrease during London trading hours and increase when London is closed. If gold only traded during London hours, the price would be around $3 an ounce, while outside those hours, it would be nearly $40,000 an ounce. This discrepancy suggests a price suppression scheme, supported by charts from Gold Charts R Us. The speakers also mention that the COMEX is a fractional reserve scheme and that individuals from JP Morgan have been jailed for price manipulation.
US Government Accumulating Gold
The discussion shifts to whether the US government has been quietly accumulating gold since December 2024. They examine US gold import and export data, noting a significant spike in net imports into the United States around December 2024, which is unusual compared to historical data showing net exports. They suggest this could indicate the US is hoarding gold. The speakers also reference a past event when Donald Trump threatened to audit Fort Knox, leading to gold inflows to prevent a COMEX force majeure. They plan to further analyze gold flow data to determine if excess gold, not deposited in COMEX vaults, could have been accumulated by the government.
New Bilateral Soft Devaluation Strategy
The third prediction involves the US executing a new bilateral soft devaluation strategy, similar to the Plaza Accord of 1985. The Plaza Accord was an agreement among finance ministers from several countries to intentionally devalue the US dollar, which had doubled in value in the preceding five years. However, the speakers argue that the current situation differs significantly. Unlike the 1980s, the dollar has been relatively flat in recent years, and gold prices have tripled. They suggest that the US might attempt unilateral devaluation through printing money, as other countries are unlikely to cooperate in weakening their own currencies.
Revaluing Gold Holdings
The fourth prediction addresses the possibility of the US revaluing its gold holdings to support fiscal objectives. This idea gained traction after the Federal Reserve published an article discussing the potential use of valuation gains on gold reserves. Revaluing gold would involve raising the statutory price of gold from $42.22 per ounce to current market prices. The speakers explain that this is essentially a balance sheet trick that would allow the Treasury to spend more money. However, they note that even revaluing gold to market prices would not cover the current budget deficit, and a much higher revaluation would be needed to eliminate the national debt, which could destabilize the global economy.
Leveraging Gold to Retire Debt
The final prediction suggests the US will leverage its gold to retire debt and stabilize trade relationships. The speakers deem this unlikely, as the revaluation numbers required to pay off the national debt are astronomical. They suggest that the more probable outcome is controlled inflation to reduce the real value of the debt. They also caution against the potential implementation of Central Bank Digital Currencies (CBDCs), which could give the government excessive control over finances and potentially make payments in gold illegal.
Conclusion
In conclusion, the speakers find the first two predictions about LBMA exposure and US gold accumulation plausible, while the last three seem unlikely. They emphasize that any devaluation strategy is likely to be unilateral, with the US resorting to printing money. The video ends with a meme highlighting distrust of government intentions.
