Maguire - LBMA Now Staring At Another Gordon Brown Abyss

Today whistleblower Andrew Maguire warned King World News that the LBMA is now staring dangerously into the abyss once again.  Maguire, who recently appeared in the CBC production “The Secret World of Gold,” described this stunning situation as “very similar to the abyss that Gordon Brown stared into when the Bank of England was forced to bailout Goldman Sachs 13 years ago.”  Below is part one of a series of extraordinary written interviews that will released today with Maguire on King World News.

Maguire:  “The mainstream media has this myopic focus on the over 600 tons of GLD redemptions, while in reality we are witnessing massive bullion demand far in excess of these relatively small ETF redemptions.  This bullion demand is actually putting enormous pressure upon immediately deliverable LBMA bullion stocks. 

“What is notable, Eric, is that since the ABN AMRO default, where exactly one day after the bank default became public, it forced that defensive attack by the Fed and the Bank for International Settlements.

“I know we talked (on KWN) about it right as it happened, and it forced that defensive attack.  It was a desperate attempt to bailout an imminent collapse of the largest bullion houses in London.  And despite an over $400 rigged decline in the gold price, Eric, here we are back full circle, with the bullion bank inventories again under stress.

A rigged $400 discount may have delayed the default, but it also ramped up Eastern hemisphere bullion buying, and was far in excess of what was gained.  I guarantee you that was not in the plan when they rigged this (takedown).

Thanks to the paper discount, the LBMA fractional reserve bullion inventories have been drawn down at such a fast rate that there is lots of evidence they are now running on fumes.  Eric, the smash-down has enabled the bullion banks to cover their paper shorts, but the Western central banks are deeper in the glue now than they ever were.

These outsized, mismatched leases are having to rolled over while they scramble to meet this unanticipated Eastern hemisphere demand.  By the Fed creating such huge downward derivative momentum, what they did was they unleashed a monster.
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