From Rothschild to Wong

[kalian]

http://www.lewrockwell.com/north/north268.html

Last week, the unthinkable happened. N. M. Rothschild, the heirs of the famous banking family, got out of the gold business.

Over the last decade, the company had been the great promoter of gold hedging, i.e., getting gold mining firms to sell their future gold output at a fixed price. When gold’s price fell, this was great for the mining companies. But now gold’s price tends to rise rather than fall. This means that forward sales of future output hurts the mining companies. They lock in a price that turns out to be lower than what the market would have provided. So, hedging has dried up. So have Rothschild’s profits.

Ever since 1919, N. M. Rothschild had been the driving force on the London gold market. It was the dominant price-fixer, helping to set the London gold price every day, twice a day.

As to why anyone should have to set a price for the world market, the company never quite explained. There was no comparable price-setting organization for other investment assets. Prices rise and fall all day long on investment exchanges, and now all night long if you count foreign markets, which you should. A Mineweb story reports – three generations too late – that, "It is also likely that the morning and afternoon Fixing ritual may be done away with; physical meetings possibly replaced by teleconferencing and digital exchange." Apparently the telephone had not been sufficiently advanced technologically.

When I read about the departure of Rothschild from the gold business, my mind went back to November, 1962. I could see Richard Nixon standing in front of the press corps and saying, "You won’t have Dick Nixon to kick around any more." I mean, what’s a conspiracy theorist to do?

...more...

Something is definitely going on within the gold market. Something
very fishy.

[54anickel]

1. Hey Kalian! I think not just with gold, but with the entire monetary

system.

Remember this post?
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=114&topic_id=5246

And this one within the same thread?
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=114&topic_id=5246#5258

I don't know what to make of the Rothschild deal, but I agree something is very "fishy".

Couple of speculations from what I've been reading:
1) The gold market is doing fairly well in this current commodities market so they aren't doing as much hedging, which is what Rothschild was all about. But that begs the question of why get out of it completely? It is just a normal cyclical phenomena.

2) The gold market is now being supported by the numerous "gold funds" for investors. Another reason for reduced hedging. But why didn't Rothschild want to get into the funds and trading? They claim because the market is too volatile, and they weren't interested. Can't think of an entity not interested in what currently is quite profitable.

3) Ever since Nixon closed the gold window they have been touting the "Gold is simply another commodity" line. Time to treat it that way as it has been regaining too much status as an alternative currency - especially with the comments of Mahathir and the supposed claims of al Qaeda using gold for their funding.

There are more theories out there, but they would require a pretty large covering of tin foil right now. One thing you can count on is that we will never know what the don't want us to know.

[kalian]

2. So, where do you think this is heading?

If you really think about it, its amazing that the US hasn't yet
keeled over onto its back. Seriously, its like "magic" that the
locomotive continues surging forward when 1) it doesn't manufacture
anything, 2) its spending on its military as if there were no
tomorrow (I hate the implications of that statement...) and 3)
foreign central banks OWN our asses...

To be honest with you, its like the US is following, although in
a slightly different tone, the exact same musical sheet that
1920s and early 1930s Germany did. What if the US is being "setup"
for a major financial breakdown and then subsequent military
expansionism?

In essence, what I am "tinfoiling" here is: a true "new" economic
cycle is being created, ergo, a global war that will decimate
the infrastructure and the population. What is left afterwards but
to rebuild...? :tinfoilhat: