Adrian Douglas at GATA on another revelation at the CFTC hearing (a “revelation” that’s actually well known):

“As dramatic as this revelation was at the CFTC hearing, there was another bombshell at the hearing. This was the testimony I was able to deliver at the hearing while assisting Harvey Organ with his testimony. I was able to show that the London Bullion Market Association (LBMA) over-the-counter gold market is nothing but a massive “paper gold” Ponzi scheme. What was then astonishing is that the bullion bank apologist, Jeffrey Christian of CPM Group, who has always been staunchly against GATA, endorsed my comments as being “exactly right” and went on to confirm that the LBMA trades more than 100 times the gold it has to back the trades.

There were lots of almost as equally explosive admissions at the hearing, so I have made a transcript of the relevant section of the webcast. I have posted the two short video clips here and here which are what have been transcribed.

http://www.youtube.com/watch?v=9wIMpe9SjfQ

http://www.youtube.com/watch?v=e9bU0r6JP4s

The transcript is given below with some notes added by me. Continue reading →