Doug here's my stab at a translation of the Finanz Woche piece from the German:
The American Gold Anti-Trust Action Committee (GATA) gives warning. Due to the accumulation
of gigantic gold sales, equal to at least four years (if not six years) of production,
a gold price spike could trigger a banking crisis. Given the many other imbalances in the world
economic system (American savings rate practically zero, high consumer debt, almost
2 trillion US foreign debt which is higher in relation to GDP than most developed countries,
highly volatile relationships among the dollar, euro, and yen), the obviously gigantic gold price manipulation
is needed to stabilize the world economic system or the stock market in the near term. Obviously,
however, in the absence of reality the commodity can drive us to enormous problems.
(END)
Still not convinced that there is a concerted manipulation. There are more lenders and sellers than buyers, and maybe the lenders and sellers are reckless and foolish, but actual proof of a group definitely acting in concert has been elusive. GATA is living on hints and rumors so far; for over a year the real proof has been lurking just around the next corner. When confronted with inconvenient information (e.g., the ESF letter plainly disavowing intervention in the gold market) GATA gets even wilder: now there's a sneaky coverup orchestrated by higher officials and the poor ESF staffer letter writer is intentionally being kept in the dark by them. Not buying that one without more. It's nothing but speculation, presented by GATA as fact.
John |
