Bill Holter’s Commentary
Many want to know what happened this week to gold and silver. GATA’s Chris Powell explains it was the same old same old on steroids while Pam and Russ Martens explain where the funding came from…
Will This Day Of Spectacular Intervention Nudge Any Consciences?
January 8, 2021
Dear Friend of GATA and Gold:
This week rioters incited by the president breached the U.S. Capitol, the president’s mental health was thrown into urgent question again, the dollar was sinking fast on international exchanges, the U.S. economy was crashing, unemployment was rising, and the president-elect announced that the new national administration would be distributing trillions more dollars in pursuit of economic recovery.
So why were monetary metals prices hammered with unprecedented violence and why did stock prices rise again?
Of course all that is exactly why.
This things prompt massive if surreptitious government intervention in the markets.
This is a very old story that still cannot be told by mainstream financial news organizations.
Pam And Russ Martens: More Evidence Of Use Of ‘Stimulus’ Money By ESF To Rig Markets
January 8, 2021
After Mnuchin Demanded that Fed Chair Powell Return Hundreds of Billions from Its Emergency Lending Facilities, Fed Sends Back Just $41.3 Billion
Wall Street on Parade
Friday, January 8, 2021
We have become convinced that the allocation of $454 billion under the CARES Act stimulus legislation to cover any losses incurred in the Fed’s emergency bailout programs was a dog and pony show created by U.S. Treasury Secretary Steve Mnuchin (who has testified to Congress that he helped write the legislation) in order to provide Mnuchin with a slush fund to trade in markets.
Our suspicions are heightened by the fact that the Fed ran very similar emergency bailout programs from 2007 to 2010 and did not require any funds from the Treasury to backstop losses. The Fed simply relied on collateral from the Wall Street firms borrowing from the Fed. If those firms don’t have the collateral today, then they’re likely insolvent and not legally allowed to borrow from the Fed.
We have carefully reviewed the CARES Act. There is not one word in the legislation that directs Mnuchin to place that $454 billion into the Exchange Stabilization Fund (ESF). But that’s where Mnuchin placed that money.
We know this because the ESF’s financial statement says Mnuchin placed not only the $454 billion into the ESF but he also initially placed the additional $46 billion that he was allocated under the CARES Act to help airlines and businesses important to national security (for a total of $500 billion). …