Banks, Fiat Money & Bullion Corruption

A growing awareness of bullion market manipulation is driving activism: #silversqueeze

MetalStream
Feb 2 · 4 min read

The recent #silversqueeze movement has stimulated a vital discussion, concerning the free market for precious metals and the nature of fiat currencies. Banks are at the centre of major market manipulations and corruption appears entrenched within the highest echelons of banking and politics. As society moves towards a critical threshold of this awareness, the banking industry must scramble to protect itself by obfuscating the nature of these manipulations.

At the heart of this corruption is a lack of transparency and accountability. Blockchain technology facilitates these two qualities and could help to rectify the corruption that has eroded our freedoms and the value of our money.

Image for post
Image for post

If we had lived in ancient Rome with a one-ounce gold coin we would’ve been able to buy a very fine toga, a hand-crafted belt and a pair of sandals that was the price in Rome. Today, if we have a one-ounce gold coin what can we buy with it? We can go into any men’s store and buy a very fine suit, a hand-crafted belt and a pair of shoes. The price of these items hasn’t changed in thousands of years when expressed in terms of real money but when expressed in terms of these things we carry around in our pockets called Federal Reserve notes which is not really money at all, fiat money anyway, the prices keep going up and up and up because the value of those units keeps going down and down and down because they keep making more and more and more of them and dumping them into the economic soup.” — G. Edward Griffin

Mr Griffin’s quote accurately identifies that the value of sweat equity hardly changes. When valued in gold, the cost of formal gentleman’s attire has not altered in thousands of years. It is our fiat currencies which fluctuate through manipulation. This corruption has allowed a very small number of people to purchase the majority of the world’s real assets. It is openly acknowledged that in 2019, 43.9% of global wealth was held by 0.9% of the world’s population. The situation in 2021 is even more inequitable.

We have previously discussed corruption within the precious metal markets in our article Who Is Spoofing Who With JP Morgan’s Record $1 Billion Fine? However, it is worth revisiting what Bloomberg News reported at the time:

“JP Morgan Chase & Co. is poised to pay close to $1 billion to resolve market manipulation investigations by U.S. authorities into its trading of metals futures and Treasury securities”

Although couched within the attention-grabbing headline of a $1 billion fine, the resolution of “market manipulation investigations” implies the fine was paid to halt further criminal revelations. JP Morgan Chase was clearly involved in the manipulation of gold and silver markets, and the fine appears to be merely a cost of doing business. No bankers went to jail as a deterrent to future misconduct, which is indicative of collusion between regulators and banks. This excellent JP Morgan Chase violation tracker amplifies these concerns.

Much has been made about the recent trend towards a #silversqueeze. The motives and protagonists of the movement are unimportant compared to the dissemination of knowledge concerning the nature of markets and fiat currency. Prices for both gold and silver have been artificially depressed through the sale of paper stocks. These paper trades do not represent the true volumes of physical gold and silver held by the bullion banks. There are potentially two logical reasons for this manipulation:

  1. Artificially depressing the prices of precious metals allows the Federal Reserve to claim inflation is within its 2% target. This justifies the continued creation of fiat US dollars.
  2. By keeping the price for precious metals low, central banks and other core members of the global financial system are able to cheaply purchase physical stocks. This would be an important precursor to a financial reset which reverted our currencies to a precious metal system. We covered this topic in our previous article Central Banking & The Great Reset.

The real value in the #silversqueeze movement is derived from the attention it has drawn to the inequities of the fiat currency system and the manipulation of precious metal markets. To implement significant changes, a critical mass of society needs to be aware of these problems. Once that threshold is reached, a transformation in our financial markets can be achieved.

Image for post
Image for post

Corruption is systemic within our global markets. Our current fiat monetary system was systematically centralized through the Bretton Woods Agreement and then decoupled from gold in 1971. We have been herded towards a fiat system that creates money without the backing of physical value.

As we approach a critical moment in financial history we have the benefit of blockchain technology to call upon. Transparency and accountability are the watchwords of public blockchains. In a financial environment where these qualities are intrinsic to the architecture, it will be harder for corruption to fester. Blockchains can be leveraged to deliver these qualities but it is vital that they are open source. Private centralized blockchains would only allow existing corruption to grow. Products like MetalStream’s MSGLD give us a glimpse of how precious metal markets could operate in the future. As Albert Einstein said:

Setting an example is not the main means of influencing others, it is the only means!

MetalStream is the issuer of the innovative gold-backed MSGLD token. Please visit our website for more information, and contact support@metalstream.io for enquiries related to the purchase of tokens.

MetalStream

Issuer of the innovative MSGLD security token

MetalStream

Written by

MetalStream Gold (MSGLD) tokens are gold-backed, ERC-1400 compliant security tokens employing a metal stream financing model.

MetalStream

Issuer of the innovative MSGLD security token, backed by and redeemable for bullion. Get the liquidity of a token, plus the safety and value of gold.

MetalStream

Written by

MetalStream Gold (MSGLD) tokens are gold-backed, ERC-1400 compliant security tokens employing a metal stream financing model.

MetalStream

Issuer of the innovative MSGLD security token, backed by and redeemable for bullion. Get the liquidity of a token, plus the safety and value of gold.

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store