The battle for the Global Economy is the main theme in this goldish paperback from 2013. The author addresses what he calls the grotesque, growing and unsustainable imbalance in the financial system. The growing problems are mirrored in the price of gold. This precious metal is a barometer of systemic ills. Therefore, the financial system is fighting a War on Gold to drive down its price and hide the negative impacts of fiat currency (paper money).
A Stairwell to a Safe Haven
Mitchell puts the spotlight on the ills plaguing the financial system and the printing of enormous sums of American dollars and Euros. The moment manipulations fails, paper and physical prices will separate. In other words: The real price of gold will be a stairway to heaven for people and countries with accumulated gold reserves.
In the book we can read that banks are manipulating the prices of gold and silver. And this was proven in 2016. Deutsche Bank was then taken to court and agreed to pay $ 60 million to settle U.S gold price-fixing case.
Nonexistent paper gold
There is not enough gold in the vaults to support the more than US $ 200 Billion of trading every day in paper-gold. This accounts for more than 95% of gold trading in London. It works as long as gold buyers retain confidence that the banks could deliver physical gold if demanded, but analysis show that they could not. Or, as stated in Terry Pratchett’s book, Making Money: The reason why everyone thinks gold is important is that banks have some of it in cellars – even if it is proven that this does not matter a damn.
High frequency trading
In his book. Mitchell is discussing high frequency trading. This is about pre-designed trading decisions, automated order submission and order management without human intervention and the use of direct market access, to mention a few techniques. The bots can lead to a Wall Street meltdown if an uncontrolled up- or downward trading frenzy suddenly takes place.
Above mentioned systemic ills, and several others, will feed your own social paranoia. You will probably enjoy what Mitchell writes about the games Exchange Traded Funds and Central Banks are playing. However, really to enjoy this book you have to believe that something is rotten in gilded world of gold. Gold Wars