There may have been a day when markets were truly free, achieving price discovery through the simple mechanism of supply and demand for capital to assets. That day has long past, we can argue about when it happened. But now, many markets, most notably financial markets, commodity markets, the stock market, are highly controlled. Talk about the plunge protection team is largely sidetracked, hiding the real elephant in the room, the derivatives market. Futures, derivatives, and other artificial financial instruments can be bought and sold using near unlimited leverage with funds that are created out of nothing, creating a situation where a central bank, such as the Fed, can literally set the price. Rob Kirby says that the game will end when larger players not part of this charade, such as China, will not receive the physical Gold they have paid for:
Financial analyst Rob Kirby says, “There is colossal fraud and price control going on. There are no free markets.” Kirby goes on to say, “What we’ve seen over the last six months is a ramp-up in interest rate swaps to the tune of $12 trillion . . . . What the build in these interest rate swaps is achieving, it’s stemming the rise in interest rates.” Kirby, who has 15 years experience in trading derivatives, says these complicated derivatives overseen by the U.S. Treasury control the price of virtually everything. Kirby contends, “I refer to this as a price control grid.
They are able to dictate and arbitrarily set the price of all strategic goods in the market, whether it’s capitol, whether it’s energy or whether it’s precious metals.” As an example of control, Kirby explains, “We have 10-year U.S. bond rates under 3%, and I would say the United States is actually insolvent, and we have countries like Greece where 10-year bonds are yielding over 9%.” When does this end? Kirby points to the finite physical gold market and massive Chinese global buying for a clue. Kirby says, “When China doesn’t get their gold, that’s when this ends, and that might be when we have a war.” Join Greg Hunter as he goes One-on-One with Rob Kirby of KirbyAnalyitics.com.