Richard,
I have had 4 emails from Canada today. All say the same thing. We are all making a difference. Keep you your great effort.
Bill,
This is from Donald Coxe's column in today's (Saturday's) Globe and Mail. Coxe is pretty well-respected -- and well-read -- by the
establishment up here. He is the chairman of Jones Heward Investment
Inc. The title of the piece is "Is the World safe at last for Commodity Investors?" He writes:
....
"Apart from guilt by association, the precious metal stacks haven't benefitted much from this recent resource rally. Reason: The same political leaders who got the West into a war that promises to be costly, messy and long -- after promising us it would be cheap,
civilized and short -- have announced that the IMF should sell bullion from its gold hoard to pay off debts from bankrupt nations.
"This strategy is being pushed piously, with the backing of the pope. It may also be motivated cynically, with the backing of shrewd
ex-trader, U.S. Treasury Secretary Robert Rubin. Announcements of
monster pending sales naturally drive down prices of the merchandise
that will soon be dumped.
"Since the gold has been a reliable indicator for at least four
millenia, weakening its price at a time of soaring oil prices is
politically smart. It will help convince economists and central
bankers that disinflation or even deflation is still at work despite rapid money supply growth and some of the lowest interest rates the world has seen."
....
He goes on to suggest hedging one's bond portfolio with a few gold stocks.
Now, Coxe does not suggest the POG is being manipulated for the
benefit of short sellers, but he _does_ suggest the POG is being
manipulated for the sake of political optics. Which is also very
true. Indeed, this is a big part of the story. Rubin would not be helping his friends on Wall street if such help did not also suit his
friends in Washington. That's a big piece of the puzzle, one that I
am not sure you amplify enough (at least through your public
dispatches.)
Can Jim Saxton stand up and say: "Rubin and a cabal of Wall Street
firms are illegally fixing the gold price so they may line their own
pockets"? Of course not. Can Jim Saxton stand up and say: "The
Clinton White House seems to be intefering with the gold market for
the purpose of adding a deceptive coat varnish to an otherwise
worrisome situation"? Now, that dog may hunt!
Cheers, Sir - dp.
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