It's rather ironic, that for years, the CB's were said to be idiots for holding on to the gold in vaults which was costing millions in maintenance costs, and losing billions in asset value thanks to the declining price of gold. So then they start to lease the stuff out, to at least cover the cost of storing and insuring the asset, and they get yelled at by other interest groups for a different set of reasons,... lowering the POG.
Then they are praised by goldbugs when several European members form what should properly be viewed as a producer cartel. But on the flip side they are spit on by the industry as several poor producers trying to make a buck, are forced to the edge of bankruptcy thanks to their hedging programs. Is it any wonder that the U.S. central bank would keep their distance from this cartel?,... such cartels are illegal in the U.S. What a mess!
It certainly looks like these folks are bumbling fools no matter what they do. At least this time they have outlined guidelines for the future. After the initial shock, the industry can settle down and plan for the future, knowing with more certainty, what is going to happen. That will allow the producers to get down to what they do best,.. searching for cheap sources of the metal we all love, reducing their costs, rationalizing the industry like all the other industries, making the mines safe, being good corporate neighbors, and making more profits for their owners/shareholders.
I think the European CB cartel announcement of their intentions was long overdue. We want all the CB's to announce their intentions, and provide accurate and adequate disclosure and accounting, to the same standards all North American public corporations must adhere to. Only then can we get on with life, without all this Hannibal Lector, flying saucer, and kill, kill, die, die, mojo stuff.
Of course, we must keep Searle's bones. At least they make some sense (gggggggggggggggggggg). |
