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Eric Janszen: Catching a gold basher
12:25a ET Thursday, July 16, 2009
Dear Friend of GATA and Gold:
Eric Janszen, founder of the ITulip Internet site of financial analysis, yesterday posted a detailed and sometimes sardonic reply to the Wall Street Journal's somewhat patronizing July 15 story about investing in gold, "Catching the Gold Bug" (http://online.wsj.com/article/SB1000142405297020357730457427595335541288...). Janszen's reply is headlined "Catching a Gold Basher," and while it makes the case for gold awfully well, it may be most interesting for acknowledging something GATA has been asserting for some time now -- that there really are no markets anymore, just interventions, particularly in regard to the currency markets, which include the gold market.
Janszen argues that the U.S. dollar won't suffer hyperinflation "because reserve currencies are political, not market-based. The managed depreciation of the dollar under the floating exchange rate regime will continue, recent deleveraging-based hiccup aside. Under the managed floating exchange rate regime, a reserve currency is not transitioned out in big-step functions as the British pound sterling was in the days of fixed exchange rates. Today's virtual fixed exchange rate system is accomplished by central banks buying and selling each other's sovereign debt."
But nothing might hasten the necessary political decisions in the currency markets as much as a shortage of real gold with which to continue the suppression of that potentially superior and utterly impartial reserve currency.
You can find Janszen's essay at ITulip here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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