Ted Butler: Silver is for serious money

Section:

9:57a ET Saturday, July 31, 2004

Dear Friend of GATA and Gold:

There is growing realization that the world's major
financial markets -- not just the gold market -- are
undergoing greater intervention by central banks,
and the latest studious examination of this may
be Brian Bloom's essay, "Managed Markets," just
posted at Gold-Eagle.

Bloom charts the Dow Jones Industrial Average,
U.S. bonds, and gold to show behavior that is
quite anomalous under technical analysis and
thus prompts suspicion. But he also writes:

"I want to differentiate here between the meaning
of the word 'manage' and that of the words
'conspiracy' and 'manipulate.' 'Conspiracy' and
'manipulate' are emotive words that imply joint
clandestine action or antisocial behavior, whereas
'manage' implies joint overt and legitimate action.
There is no secret that the world's central bankers
are involved in 'managing' markets. After all, it is
the mandate of every country's central bank to
protect the integrity of its own country's economy.
Why would anyone be surprised if the central
bankers were to join forces in an attempt to
protect the world economy? To the contrary, one
should be surprised if they did not."

The problem with Bloom's apology for the central
banks is its presumption that their interventions
are always "overt" and "legitimate." To the contrary,
of course -- their interventions are usually furtive,
as well as calculated and executed to benefit the
powerful financial institutions that provide cover
for implementing the interventions. And of course
countries that produce gold and other precious
metals and countries that produce financial
instruments that are only paper might disagree
on the definition of "legitimate."

When the Federal Reserve and other central
banks start issuing press releases announcing
their market interventions in advance, not after
the fact, so that ALL market participants have
equal knowledge of them, those interventions
will be "overt," and at least those countries that
remain democratic will be able to debate whether
those interventions are "legitimate."

Until economic policy is fully PUBLIC policy,
"conspiracy" and "manipulate" will be far more
accurate than "overt," "legitimate," and "manage."

But at least Bloom is halfway to figuring it out, so
let's be grateful for that. You can find his analysis
here:

http://www.gold-eagle.com/editorials_04/bloom073004.html

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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http://www.321gold.com

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http://www.kuik.com/KH/KH.html
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Subscription site:

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Eagle Ranch discussion site:

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