THE BANKER TAPER CIRCUS: The Greatest Show on Earth


No longer do you have to get tickets to attend the Ringling Brothers and Barnum & Bailey Show, while the real Circus, the Great Banker Taper Spectacle is in town.  Today, the “Greatest Show On Earth” does not include a dozen elephants performing amazing stunts, but rather a group of highly educated banker clowns playing trick and pranks on the investing public.

For some odd reason, the market was shocked by the Fed announcement of “NO TAPER.”  After listening to many analysts, only a few realized the Fed was not going to make a change in their policy.  Jim Rickards was one of these analysts who spoke on Financial Sense this weekend.

When asked if Rickards thought the Fed had lost credibility, Rickards remarked by saying, “It’s not the Fed that lost credibility, it’s the analysts.” Rickards goes on to say that if these analysts had listened to their full statement earlier in June, they would have realized that the Fed would only taper if the “Economic Data” allowed them to do so.

Because the economic data has not improved (and continues to decline), why on earth would the Fed taper?  This didn’t stop the armies of analysts and banks to promote their taper forecasts.  I would imagine the bullion banks “Clearly” understood that the Fed wasn’t going to change its policy, which is why we saw a huge move up in the precious metals before the announcement — insider bullion bank trading at its finest.

So, after the Fed announcement, the price of gold and silver exploded.  As traders positioned themselves for what they thought would be the beginning of a larger move higher in the precious metals, St. Louis Fed Bullard came out on Friday with a possible Taper in October.  Of course, this impacted the markets negatively and the metals gave back the majority of their gains on Wednesday.

After investors had the week-end to digest the schizophrenic Taper markets, the Banker Circus continued on Monday with the following headlines:

Gold Seen Dropping by Citigroup & Morgan Stanley on Fed Taper

Gold Edges Lower on Caution Over U.S. Policy Outlook

CITI: Gold Gains will be Short Lived; Silver also headed South

Roubini Bearish on Gold, but Optimistic on U.S. & Japanese Stocks

All Signs Pointing to Lower Gold on Taper Talk

Here we can see that the banks didn’t waste time with the barrage of bearish gold rhetoric today (Monday).  And… it wouldn’t be the same without including Nouriel Roubini’s bearish gold forecast as he is one of the high priests of Keynesian philosophy.

Another interesting headline came out recently that needs attention.  It looks like the World Gold Council is a bit concerned about the “Lack of Enthusiasm” of market participation in the Gold ETFs.  According to their press release:

World Gold Council Promoting Gold ETFs with New Program

(Kitco News) – Weak investor demand in gold markets remains a major concern as outflows continue to plague gold-backed exchange-traded funds.

However, the World Gold Council is trying to change investors’ perceptions of the yellow metal with the creation of a new program. On Thursday, the council announced the appointment of William Rhind as the managing director of its new Institutional Investment Program.

According to the WGC, Rhind will be “responsible for developing and implementing initiatives focused on expanding the use of SPDR Gold Shares (NYSE: GLD) and other physical gold-backed products.” GLD is the world’s biggest gold-backed ETF and since the start of the year has seen significant outflows as investors moved out of gold and into better performing equity markets.

“I am delighted to be joining the World Gold Council and look forward to helping investors better understand the benefits of including gold in their portfolio strategies,” said Rhind in a press release from the WGC.

I highlighted in red the part that I believe noteworthy.  The newly appointed William Rhind will be heading the Institutional Investment Program to help investors understand the benefits of including gold in their portfolios.  There are two red herrings that the precious metal investors should focus on:

1) the new program focuses on the Institutional Investors.  Weren’t these the same kind of investors who were FLEECED of their gold shares when all the major banks put out SELL RECOMMENDATIONS while the price of gold was clobbered allowing them to cover their shorts and add physical gold to the market?

2) Why doesn’t Rhind and the World Gold Council E-D-U-C-A-T-E investors on buying and taking delivery of physical gold rather than ETFs?  The reason is, they need to make sure that if institutional investors are going to come back into the market, they rather them buying worthless un-backed gold paper garbage than purchasing the real thing — physical gold.

This is indeed the major concern of the Gold Cartel.  Not only will they continue putting out the disinformation about TAPER TALK, they also have to make sure that any institutional manger slobs that have the desire to buy gold for their funds, purchase the worthless paper ETF instead of physical.

I explained how the Great Gold Heist of 2013 took place in my article including this chart:

Quarterly Average Gold Price vs ETF Demand

Lastly, Jim Rickards also discusses on Financial Sense what he calls, “Financial Wars.” This is different from what he wrote about in his book titled “Currency Wars.”  Basically, Rickard states that the U.S. and other countries are now involved in using Finance to wage a war on countries such as how the United States destabilized Iran.

I highly recommend the interview provided at the link above.

Investors need to understand that the Fed cannot stop QE… there will be no Taper.  The Fed wants to cause inflation, but has not been able to do so because of the opposing forces of deflation are taking place at the very same time.  This is another aspect that Rickards explains in the interview.

Thus, the Fed will continue with QE to infinity until it finally gets inflation.  However, once inflation finally arrives it will quickly get out of hand propelling gold and silver too much higher levels.

On the flip-side, if the Fed continues its massive QE campaign, but does not get its desired inflation, its huge balance sheet would cause a loss of faith by foreign Bond holders that would cause a sell-off in the Dollar.  Either way, it’s very bullish for gold and silver going forward.

With a great deal of physical gold now drained from the banking system, the Fed & member banks have to create their Circus Show to keep investors out of physical gold and into the Dollar.  We will continue to get these silly TAPER TALK forecasts from the banks and MSM analysts because FAITH & BS are the only two tactics available to hold together a House-Of-Cards which should have collapsed years ago.

Why spend money watching the elephants at the Ringling Brothers and Barnum & Bailey Show, when you can see Banker Circus Taper Carnival for free?

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norm lasky
norm lasky

Steve, please note that there is a second circus in town: 1. Barclays New Forecast 2. JPM Says Buy Gold uture-inflation/?utm_source=twitterfeed&utm_medium=linkedin 3. UBS New 1 month Price Target “UBS raises 1 month forecast to $1450 from $1250 and three-month to $1375 from $1350 UBS 23rd Sept 2013” Sharp Pixely 4. The Squid Flips Last tuesday Jeff Currie, Goldman Sachs Huncho, predicts gold goes to $1000. Then 2 days later, the squid puts a buy recommendation of gg with $40 C target: Goldman Sachs Starts Goldcorp (GG) at Buy 9:22 AM ET, 09/20/2013 – Street Insider Goldman Sachs initiates… Read more »


Peter Schiff has also been relentless in calling bullshit on the taper.


below 450 tons!


1% of americans are accumulating physical gold/silver?

heavily concentrated in few hands, thus confiscation? 99% won’t rise up to protest.

so doomed anyway?

man, i can’t find a way to be optimistic although i live in shanghai.


lately, asian and european sessions have as big volume as the NY session. guess the intertional players vs the algos are as active as the US players, many of which left crimex after MF global.


Some may think that the whole world will have to invest in the shiny metals to get the price to soar.Not so,as the GOLD & SILVER markets are very small compared to the major stock indices but played by the BIGGEST MONEY. So if their is only 1% of Global wealth in GOLD, think what a another 1% would would accomplish.Stay the course, me thinks it will be a lot more than another 1%.