Monday, June 10, 2013

Former White House Official Discusses Gold Manipulation

Today King World News interviewed the former Special Assistant to the President of the United States for Economic Policy and former member of the U.S. President’s Working Group on Financial Markets.  While in the White House, Dr. Philippa “Pippa” Malmgren served as financial market advisor in the White House and functioned as the liaison between the White House and the Federal Reserve.

Dr. Malmgren formerly headed the Global Asset Management business for Bankers Trust in Asia, out of Hong Kong, and was also Chief Currency Strategist for Bankers Trust Company, and former Head of Global Investment Strategy at UBS.  Dr. Malmgren was also a senior consultant to Deutsche Bank, and currently advises the largest sovereign wealth funds, hedge funds, and pension funds in the world.
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Eric King:  “What caused or who caused the crash in gold?”

Dr. Malmgren:  “It is true that governments hate it when gold starts going through the roof, especially when they are in the midst of the largest devaluation, currency debasement strategy ever known....


“We have never seen so many large industrialized economies all adopt this strategy simultaneously.  So naturally that does make governments nervous. 

And I’m not sure it’s such a surprise that some of the biggest banks were heavily short (gold) and putting out notes to the marketplace saying, ‘This (gold) definitely should go down.’  Then there were some very, very large transactions, historically large transactions that happened within about half an hour on that Friday morning.”

Eric King:  “When you say ‘large transactions,’ we reported that day the massive 500 ton paper (gold sale) transaction that went through the market in a very short period of time, I think it was about 15 minutes.  Nobody sells that way that has any brains.  So the manipulation is obvious there, isn’t it?”

Dr. Malmgren:  “I can see the point.  It’s interesting that everybody has been screaming for an official investigation into this and it looks like that’s not going anywhere.  So the bottom line is we will never know.”

Eric King:  “Here’s the problem.  What do you do?  (Let’s say) the CFTC launches an investigation at the behest of the U.S. government, and then they come back to the U.S. government and say, ‘Well, it turns out that there is a crime being committed, but the entity doing it is the U.S. government and the Federal Reserve.’”

Dr. Malmgren:  “Yes, you must arrest yourself immediately (laughter ensues).”

Eric King:  “So, realistically you can’t have an investigation when this type of thing is going on, correct?”

Dr. Malmgren:  “No, you can’t.  And I think this is one reason that many of the institutions that I’m advising are very wary about gold is because they do feel it’s subject to manipulation.  That (as a result) the volatility is too heart-stopping to withstand.

And they are looking at other options.  One option is definitely the world of diamonds.  I see lots of private wealth moving in that direction.  That’s one reason we see diamonds hitting absolutely record high prices.  It’s because you can move an immense amount of value across a border with this thing in your pocket that a metal detector cannot find.

By the way, I was in charge of anti-money laundering policy for the U.S. government, so I’m not condoning this.  I’m just saying it’s a fact.  In a world where inflation pressures are definitely ripping through emerging markets, people want to move ‘value.’  And in a world where currencies are being debased, they want to hang on to value.”

IMPORTANT - This was part I of an absolutely extraordinary written interview series with Dr. Malmgren  that will be released today.  It is a chance for KWN readers and listeners around the world to hear from a former member of the U.S. President’s Working Group on Financial Markets discussing gold manipulation, the coming theft of assets by governments around the world and much more.   The above section was just a small portion of what Dr. Malmgren had to say and the extraordinary audio interview with Dr. Philippa Malmgren is available now and you can listen to it by CLICKING HERE. 

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The audio interviews with John Embry, Dr. Philippa Malmgren, Bill Fleckenstein, Eric Sprott, Stephen Leeb, Rick Rule, Gerald Celente, Jim Grant, Michael Pento, Egon von Greyerz and Art Cashin are available now.  Also, be sure to hear the other recent KWN interviews which include Marc Faber and Felix Zulauf by CLICKING HERE.

Eric King

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