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Is GATA really asking too much in seeking
acknowledgement that the gold market is manipulated largely surreptitiously
but sometimes openly by Western central banks? Is nearly everybody in the
world's financial establishment and financial press an absolute moron or
corrupt?
Resounding answers in the affirmative were delivered
this week by Debbie Carlson of Kitco News and the
research director of Thomson Reuters GFMS, Neil Meader.
Having interviewed Meader
about this week's coordinated helicopter drops of central bank dollars on
European banks and the devaluation of the Swiss franc, Carlson writes:
"Central bank intervention into currency markets can be supportive to
gold prices, said a director at a metals consultancy firm. ... 'As soon as it
was apparent it would be managed, a lot of fund managers quit the franc,' he
said. The currency's role as a safe haven dimmed, which gave gold's
safe-haven status a brighter shine."
Except, of course, the exact opposite happened simultaneously. That
is, just moments before the Swiss franc's devaluation was announced, there
was a sudden immense selling of gold and the gold price began a crash that
continued through this week despite the financiall
market turmoil in Europe.
Of course this was utterly counterintuitive, insofar
as the Swiss franc's demise as a safe-haven currency
left, supposedly, only gold.
Carlson paraphrases Meader
this way: "Gold can benefit from intervention because investors may
decide to leave a market that is being managed, rather than one which is
allowed to trade according to market forces." Yes, but why stop with the
Swiss franc when the pounding of gold happened at the same time? Gold is a
currency too, and might central bank intervention that works against the
Swiss franc not also work against gold?
As South African gold market analyst Peter George
said at GATA's Gold Rush 21 conference in Dawson City, Yukon Territory,
Canada, six years ago, "In the last 10 years the central banks
have effectively shown that when there's a real crisis, gold actually goes down,
and it's so blatant, it's a joke":
http://www.gata.org/node/20
But even with "safe haven" gold crashing
along with the destruction of the other "safe haven," the Swiss
franc, central bank intervention against gold appears never to have crossed
the mind of Kitco's interviewer or the GFMS
analyst. Indeed, who in financial journalism has even tried putting a
question to a central banker about the curious smashing of gold simultaneous
with the devaluation of the Swiss franc?
With financial analysis and journalism like this,
the world will remain an easy mark for the totalitarians:
http://www.kitco.com/reports/KitcoNews20110915DeC_interview.html
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