Brian, I find your post intriguing and reminds me of a theory that the US goldbugs have been stewing for years. Here's how it goes:
There is a movement afoot, where the US government would be causing the price of gold to be dramatically, artificially, and systematically reduced in price.
The leading western mnations would be playing in the scheme also.
NOTE:We all know that the USA's largest creditor is Japan. We all know that the fastest and strongest growing nations are the "tigers' of the south Pacific and Asia. In the western world's view this imbalance has to bought back into line. How??
Now , the price of gold is being systematically lowered the US government would be secretly buying it all up and hoarding it away.
Once enough gold was under control, they would reverse the program and systematically increase the price of gold to levels that have never been seen before. around $2000/oz.
NOTE: we know that most of the world's gold reserves are under the contol of the western world, right?
Once gold was reaching the appropriate levels the US gov't would begin selling large enough portions of the gold and buying up all available Yen and other Asian currencies.
Then they would pay the Japanese creditors back with their own worthless currency thus:
1) breaking the back of the Japanese economy
2) wiping out the debt of the US and other western nations at pennies on the dollar
3) Crumbling the Japanese electronics industry
I,m not sure I buy the theory, but it sure makes one stop and think. There were some pretty heavy hitters connected to this theory.
You know I would never have given the theory the time of the day except for a number of years ago I was involved in a large number of gold bullion and gold currency arbitrage transactions internationally. I quickly found out that their is a whole other world out there, that deals in billions of dollars of Swiss Francs, SA Krugerands, Canadian Maple Leafs and American Eagle s and hundreds of tons of gold bulluion transactions on a daily basis, moving these metals from one hand to the other.
If you ever get a chance, read a book called "Bullion" by John Goldsmith. it is a fiction based on this very market and one mans experiences. you will not put it down until finished, I gaurantee you. you'd probably have to check a library because I noticed a few years ago while looking for a second copy for a friend that the supply channels for some reason dried right up, or were dried up.
Respectfully, Pat O'Brien |
