Reply #5: Questions Begging Answers

[Joanne98]

By: Rob Kirby

To say that markets have been behaving “strangely” recently is an understatement. In recent weeks and months we’ve been witness to historic lows in sovereign interest rates in-the-face-of record amounts of debt being issued by governments? We’ve seen the price of gold behave counter intuitively by “not rising” in-the-face-of unprecedented systemic global economic malaise? Last, but not least, we’ve witnessed a “complete flip-flop” in the traditional pricing of Brent Crude Oil versus West Texas Intermediate ?

So we have the price of gold, the price of crude oil and interest rates – three items vital to the integrity of the U.S. Dollar - ALL trading in total disregard for their underlying fundamentals?

The following is a thought provoking analysis with commentary:

The Situation In Gold

First and foremost it is imperative that everyone realize and understand that Gold “is” Money. We know that gold is money because every Central Bank in the world carries gold on their balance sheets as ‘an official reserve asset’.

With that in mind, folks would do well to read one of James Turk’s latest articles titled, The Fed's blueprint for market intervention . In this article, Turk offers commentary on a recently unearthed 1961 document from the archives of the late, long-time former Chairman of the Federal Reserve, William McChesney Martin Jr. which details in the Fed’s own pen; their plans to intervene surreptitiously in the currency and gold markets to support the dollar and to conceal, obscure, and falsify U.S. government records so that the intervention would not be discovered. In Turk’s words,

“In short, lays out what the Treasury and Federal Reserve needed to do in order to begin intervening in the foreign exchange markets, but there is even more. This document plainly shows what happens when government operates behind closed doors. It also makes clear the motivations of the operators of dollar policy long described by the Gold Anti-Trust Action Committee and its supporters -- namely, that the government would pursue intervention rather than a policy of free markets unfettered by government activity. The run to redeem dollars for gold had put the government at a crossroads, forcing it to make a decision about the future course of dollar policy. This paper describes what the government would need to do by choosing the interventionist alternative.

This document provides primary, original source supporting evidence that GATA has been right all along.”


In Feb. 2007 here’s what the Royal Bank of Canada’s Chairman, Tony Fell had to say, confirming unequivocally that gold is money,

Continued>>>
http://news.goldseek.com/GoldSeek/1232485460.php