Economist Jim Willie explains the mid-April selloff in gold and silver

Jim Willie writes this:

Ambush of the gold market in mid-April, reported as a massive selloff: The gold market selloff was as shocking an event as it was pathetic. It was as destructive an event as it was hilarious to observe. The bankers committed suicide on the global stage. Rather than permit a London and New York gold market default, they committed a grand illegal act by selling $20 billion in gold through paper certificates in two days.

The grand sale was executed without benefit of any metal changing hands, without promise of any metal changing hands, with full protection by the USGovt for its criminal actions. The ambush attack did not net more than a handful of gold bars from margin calls, themselves mere paper entries.

The consequence is vast and has brought huge changes to the entire monetary stage. A tremendous increase has been seen in gold demand, from Turkey to India to Mexico to the United States to Japan to China to Thailand to Singapore. The corrupt bankers avoided a default, but they assured a more unavoidable future default by lighting a fire of global gold demand, on the physical side with bars, coins, and jewelry. Gold contract defaults will spring up everywhere, lately even for the Chairman of the CME Group on his own contracts held. They exposed the paper gold sham based upon gold futures contracts.

The most powerful consequence is that the banker syndicate has revealed the absent link between price discovery and gold delivery. They have therefore ruined the essence of the COMEX & LBMA gold market, rendering it a perverse playground for criminals. It has no gold in inventory sufficient to handle the delivery demands. The COMEX will soon be totally ignored, its price considered a meaningless sideshow that only lacks criminal prosecution.