Interventionist Forecasts IMF Gold Dump

Thom Calandra, Stockhouse (12/08/2008)
"Michael Bolser, a trained physicist who developed dollar value commodity indexes and 10 months ago correctly forecast the scope of the current recession, expects more than 3,000 tonnes of gold to flood the market this week.

Bolser, based in Florida, says the International Monetary Fund will release the gold for sale on Wednesday, Dec. 10. The 64-year-old Bolser says the price of gold subsequently will slide as much as 40 percent – to $455 an ounce in coming weeks from its current $760 an ounce.

Bolser, whom I met five years ago at a New Orleans commodities conference, writes Interventional Analysis, a subscription newsletter based on his real-time dollar index charts of gold, silver and oil and other metrics he devised. Bolser tells me he is plotting timelines with a 50-day calendar of events that central bankers around the world also use to intervene in financial markets.

“Demand will crushed by a bullion dump and $650 prices,” Bolser told me from California, where he is visiting family.

Bolser is a former director of the Gold Anti Trust Action Committee (GATA). The organization, as well as Bolser, believes governments, multi-national organizations and quasi-governmental agencies such as the Bank for International Settlements and the IMF often intervene in commodity markets to “manage the market.”

That is as much as they share in dogma.

“Since Mike is convinced that the Federal Reserve rigidly controls all markets every day and will have the wherewithal to control them forever, and since, in that belief, he has been advocating shorting gold since it was at $413, he's no longer a member of GATA's board,” GATA secretary Chris Powell says. “But we're still in agreement in principle on … surreptitious intervention by the government in the markets.”

Spot on

In February, Bolser told Jerome R. Corsi, who was writing for WorldNetDaily, that the Federal Reserve this year would drive down stock prices as measured by the Dow Jones Industrial Average this year to the 8,000 level from the 12,635 it was selling for then. Bolser also forecast a deep recession, which we now know already had begun.

The Dow average is now about 8,600.

Bolser used another metric he devised, one tracking Federal Reserve repurchase agreements that the central bank uses to lend funds to large banks, to predict the Dow Jones average’s daily movements. He has been close more often than not in 2008."

Bolser is a prolific author of papers ranging from monetary policy and money flows to “optics materials theory.” He says he called the reversal in the price of crude oil three weeks before its mid-July high of approximately $150 a barrel. A barrel now sells for $40 or so.

Bolser’s theory of interventional maneuvering covers a wide range of what he calls “covert” activity. The large receivers of Fed repurchase agreements each day, Bolser says, use the liquidity they provide to buy and sell commodities such as gold and oil, and to transact derivatives, swaps, futures, forward sales and so on.

On the IMF “dump” of gold he is forecasting for this week, Bolser says, “The IMF will say we need to take outperforming assets and put them in places where we can get the economy of the world going again. This is a replay of 1934, an artificial depression. The central banks will end up with the IMF’s gold.”

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