IMF's "Gold for Drugs" Program

Yes, yes, it must be harvest season, the IMF has announced another $13B installment (403 Tons) under its "Gold for Drugs" program. Careful readers of this blog understand that the IMF's primary purpose is, and always has been, to finance the modern trillion $ drug trade between East and West.

Our President once wrote that his favorite professors were the Marxists:

"To avoid being mistaken for a sellout,I chose my friends carefully.The more politically active black students.The foreign students.The Chicanos.The Marxist Professors and the structural feminists and punk-rock performance poets." - Barack Obama, Dreams From My Father

He probably didn't know anything about "punk-rock performance poets," but one thing Karl Marx actually understood was the British gold for opium trade:

"The English East India Company, as is well known, obtained, besides the political rule in India, the exclusive monopoly of the tea-trade, as well as of the Chinese trade in general, and of the transport of goods to and from Europe. But the coasting trade of India and between the islands, as well as the internal trade of India, were the monopoly of the higher employés of the company. The monopolies of salt, opium, betel and other commodities, were inexhaustible mines of wealth. The employés themselves fixed the price and plundered at will the unhappy Hindus. The Governor-General took part in this private traffic. His favourites received contracts under conditions whereby they, cleverer than the alchemists, made gold out of nothing." - Karl Marx, Genesis of the Industrial Capitalist

95% of today's heroin producing opium originates in Afghanistan (street price: somewhere between $500B and $1T), where the USA and NATO have successfully monopolized, cultivated, and more than doubled world opium production. It is then laundered through the traditional British outpost banks to find its way to the big time consumers like China, and other old fashioned dopers that still do business in specie.


It is no coincidence that Britian's HSBC bank (Hong Kong and Shanghai Banking Corporation) hosts the paper gold ETF, GLD, which is designed to pump the price of gold by issuing fractionally backed paper-gold shares. GLD claims to hold physical reserves, but no one knows how much because "physical reserves" can be paper gold, according to Exchange Rule 104.36:

"The purpose of this Notice is to confirm that the Exchange would accept gold-backed exchange-traded funds ('ETF') shares as the physical commodity component for an EFP transaction involving COMEX gold futures contracts, provided that all elements of a bona fide EFP pursuant to Exchange Rule 104.36 are satisfied."

And from the GLD Prospectus (bold emphasis added):

"The creation and redemption of Baskets [= 100,000 shares] requires delivery to the trust of the amount of gold and any cash represented by the Baskets being created or redeemed."

"The number of ounces of gold required to create a basket or to be delivered upon the redemption of a Basket gradually decreases over time due to the accrual of the Trust's expenses and the sale of the Trust's gold to pay the Trust's expenses."

In other words, we systematically steal gold to pay our own salaries and bonuses. The GLD prospectus is careful to prohibit anything resembling an audit:

"the Trustee may have no right to visit the premises of any subcustodian for the purposes of examining the Trust's gold bars or any records maintained by the subcustodian, and no subcustodian will be obligated to cooperate in any review the Trustee may wish to conduct of the facilities, procedures, records or creditworthiness of such subcustodian."

Nor will HSBC say where, whatever metal they might own, is:

"the Custodian has agreed that it will hold all of the Trust's gold bars in its own London vault premises except when the gold bars have been allocated in a vault other than the Custodian's London vault premises"

Readers of this blog also understand that a pound of 70% opium traditionally commands one ounce of gold on the Hong Kong/Shanghai underground market. These conduit banks have every interest in a high gold price... ...at least... ...while they are selling.

My question is, after the IMF recently announced another 400 ton payment of physical metal, a full eighth of their alleged total gold reserve, why does HSBC hold one of the largest short positions against gold on the COMEX? Hmmm, I wonder...