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There's really no rationalizing the gold price suppression scheme
11:21a ET Sunday, May 27, 2007
Dear Friend of GATA and Gold:
MineWeb today posted a commentary acknowledging the likelihood of manipulation of the price of gold by central banks and rationalizing it as necessary to avert a collapse of the U.S. dollar and, with it, the collapse of all Western civilization. The commentary is titled "Should Central Banks Manipulate the Gold Price?," it's written by Lawrence Williams, and it can be found here:
Or try this abbreviated link:
Williams' commentary may be welcomed for acknowledging GATA's issue but its rationalization for what the central banks have been doing to gold particularly and to the currency and bond markets generally is worse than superficial, failing to address any of the important related questions, such as:
1) Is Western civilization meant to include, for example, the Western military intervention in Iraq, which the rest of the world largely opposes but nevertheless pays for through the purchase of U.S. government debt instruments?
2) Even if central bank manipulation of gold is necessary to preserve Western civilization, what is so civilized about undertaking that manipulation surreptitiously and thereby deceiving and cheating not just investors but whole countries?
3) What about the general imperial power conferred on the issuer of the dollar, the world's reserve currency, by the scheme to support the dollar and suppress gold?
4) What about the corruption of the United States by this scheme -- the destruction of its industry and societal initiative as it plunders the world through currency manipulation, effortlessly consuming far more than it produces?
Of course there would be some disruption if the dollar were to be displaced as the world reserve currency, if the central banks stopped propping it up and stopped suppressing gold and if the dollar was to be valued in a free market. But on the whole civilization might be only ENHANCED if the world found a reserve currency whose overhead costs were less than the dollar's. (Massively revalued upward, gold and silver might do nicely. Even using seashells or oxen would avoid the costs of imperialism.)
But whatever the world's reserve currency is to be, it will be a matter of public policy that determines the value of all the labor and capital in the world, and so, first of all, the policy should be made and implemented in PUBLIC and be clearly understood by the public and the markets -- which, of course, the gold price suppression policy is not, because that policy would be useless without its surreptitiousness, useless without its deception, useless without its cheating of the innocent, its cheating of the many for the benefit of the few.
That is what makes it evil, no matter what rationalizations are spun for it, and why it is the sort of thing for which the ancients created the maxim: "Fiat iustitia et ruant coeli" -- Let justice be done though the heavens fall.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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