In a recent episode of the Keiser Report, Max Keiser’s nose for bank fraud demonstrates, not only how the Fed and its 21 primary dealer network steal via insider trading throughout the U.S. central bank’s ‘Quantitative Easing (QE)’ programs, but that record purchases of Agency debt by these 21 banks of the last two months tip him off that another QE announcement is around the corner.
Keiser quotes Pento Portfolio Strategies’ Michael Pento, who told King World News on Mar. 17 that banks have purchased suspiciously high amounts of Treasuries and Agency debt during the first two months of 2012—amounts that are so large, it can only mean that the Fed’s member banks have already been told of the Fed’s next move regarding its ongoing QE activities, according to Keiser. Sign-up for my 100% FREE Alerts
“Commercial banks have purchased $78.2 billion in Treasury and Agency debt in January and February of 2012,” Pento told KWN. “That’s already more than the entire amount of purchases made in all of 2011 . . . “
Keiser wisely points out Pento’s observation of the Fed’s market operations and its deleterious effects upon American consumers, especially the poor, who see food and energy prices soar as a result of the Fed’s QE programs.
But the clever means by which the Fed “gifts” these 21 member banks through its camouflaged money printing operation also “telegraphs” the Fed’s next major announcement regarding QE, according to Keiser.
“The word has gone out to the hedge fund community that the next round of Quantitative Easing, they’re going to buy back this agency debt for par, for 100 cents on the dollar. And so, it’s another gift to the banks and the hedge funds; they’re telegraphing what they’re going to do. It’s insider trading—again—for the banks.”
Moreover, along with the financial fraud at the Fed, the media has lent a helping hand by heralding an economic recovery in the U.S. as a means for dropping the gold price so that other central banks are able to acquire the yellow metal at lucrative price points. In its part to dupe investors, the Fed claims deflation, not inflation, should be feared, though food and energy prices have continued to move higher throughout the crisis, which began in 2008.
“So certain people are telling us that deflation is the problem and yet gas, food and import prices are all showing significant inflation,” Pento said in a KWN interview of Feb. 22. “Oil is now trading over $105. So right now we have the highest price for gasoline ever at this time of the year.
“Yet Bernanke is telling you there is no inflation and that deflation is a problem.”
As unsuspecting gold investors sell out their holdings in the belief of chronic media-driven deceptive communiques from the Fed, official holdings of the precious metal, on the other hand, continues to rise each year.
Financial Times of London reported:
In a note to clients this week, Credit Suisse referred to “aggressive central bank buying seen last Friday”.
The Bank for International Settlements, which acts on behalf of central banks, has been buying significant quantities of gold on the international market amid falling prices, traders said.
According to several estimates, the BIS bought 4-6 tonnes of gold, worth roughly $250m-$300m at current prices, in the over-the-counter physical market last week, with purchases particularly strong at the end of the week. The total purchases over the past three or four weeks were likely to be as much as double that, the traders added.
“Central banks have definitely been looking at gold as an asset class much more closely ever since European central banks stopped selling,” a senior gold banker said. “There has been a huge interest.” Emphasis added.
Keiser told his viewers, the evidence is clear. Gold is going higher and the central bankers are loading up before the big move higher.
Market volatility in the next two years is expected to run extremely high, a condition in which gold performs very well, according to Keiser, adding that investors should opt out of the fraudulent financial system (operated by “psychopaths”) and profit from the ongoing crisis by owning gold.
“The only way you lose [lower gold prices] is, if things go like it’s like 1955 again and Eisenhower is the president,” Keiser began an information-packed rant for which he has become famous. “It’s the only way you lose. So unless Eisenhower is coming back to become president of the United States, gold is going higher. That’s your risk, that Eisenhower is reanimated and stuffed and put in the White House, and it’s ‘I like Ike’ and we went backwards in time. That’s your only risk in owning gold.” Sign-up for my 100% FREE Alerts