Thinking out loud here:
1)The US government and CB, and most if not all other CB's have a clear interest in making sure their are no solid competitors to fiat currency. Is that a given? I would say without question that it is. Historically gold has been seen throughout the world for thousands of years as the store of value, especially in timmes of crisis and chaos.
2) The US government could easily make a war powers/anti-terrorism case here that undermining the price of gold is essential in the war against terrorism. This is especailly true with increasing chorus of gold-dinar calls in the Islamic world, as well as payment for oil with gold. Any arguments?
3) The US CB in concert with other CB's can easily manipulate the price of gold to an undefined extent. Total control or only partial I have no idea. Seems closer to the former at present, than latter. Perception is of course their greatest tool in this manipulation: gold must be made to be seen as a risky innvestment. If it is, then they can easily outgun potential sources of demand with their large supply. Agreed?
4) If these things are true, then why would one want to hold gold at this juncture. Gold made sense when it was important to show that deflation neednt be feared. now that everyone islooking at the slight of hand inflation, gold being forced lower makes good sense: it allows the CB;s to up their prinnting presses to full throttle.
All thoughts are welcome. Please though, no lectures about "silly conspiratorial theories". Anyone who knows the least bit about the history of gold and its manipulation, illegalization, etc knows that there isnt anything at all outlandish about what i am suggestinng here, IMO.
Thanks |
