we have only to show patience and the money will come alone ..... do not be afraid! ..


Conjecture on the manipulation of gold prices

By Bill Murphy - The Metropole Cafe
Article originally published September 12, 2008
710 words - Reading Time: 1 - 2 minutes
(17 votes, 4.8 / 5), 2 Comments Print Article


Article Comments Rating Also by Bill Murphy.








We can rant endlessly against the Cartel of Gold, but since some time now, I wonder if it is not a pawn in this whole story.


My guess (and I am certainly not the first to expose it, although I have not seen evidence before) is that the East (Asia and OPEC) dictates the rules of the game to West (the U.S. and Europe). That in essence that goes far beyond the view that the East intelligently buy gold that the West puts in circulation.


In the late 1990s, the Orient realized that it was accumulating dollars, the reserve currency of the world, but that these dollars were actually a mountain of worthless paper. The East became aware of the moral hazard to which the United States succumbed continuously. Presses the notes hummed as Fed to finance social programs and endless wars; same thing in Europe, but with fewer wars and more social programs.




Moreover, the trade deficit the United States increased without restraint: tangible assets value entered, the paper came out. Under the gold standard, a trade deficit is nothing serious. We can both focus on the trade deficit of Texas that the Murphy family. If someone has a trade deficit, it is corrected for itself thanks to outgoing payments that are gold, restricting consumption in a relatively short time. But how does one slows this consumption when using a fiat currency? The trade deficit may persist well as those that sell goods to tangible value are foolhardy enough to accept paper in return.




It did not take long for the East to understand all that. Then they said to the West, "you control the reserve currencies most important: the dollar, euro and pound. There would be huge economic disruption if we decided to abandon them. But we know that in the long run, they will retain anyway not much of their value. We will all eventually return to a form of gold standard, which has proven to be the only way to enforce fiscal discipline and monetary policy.




However, you, the Western, have more gold than us. This imbalance must be corrected if we want to restore a gold standard on an equal basis.




So here's the plan:




"You will undo enough gold for the game to be equal between you and us. Your central banks can sell it without conditions, or to lease, knowing that they never see him again. As you are masters of finance and accounting creative, so we'll let you handle the details. In return for your willingness to create gold stocks fair, we will ensure that the transition is smooth. We will build our stocks at a moderate pace and did not even declare most of our acquisitions. Therefore, the price of gold will also rise at a moderate pace, which will divert the attention of most sheep. With regard to the minority of them who will notice what happens, one can deceive many by making them buy paper gold. Thus, we should be able to get most of the available physical gold. Of course, it will be a long process which will probably take ten years, since we intend to acquire about 20 tons.




If you do not agree with our plan, we will use your paper to enter aggressively into the market for physical gold. This will create an upheaval which nobody wants, but we are much better equipped than you to support it. In exchange for your gold, we have real assets to offer, especially while you offer services.




The transition can be smooth or forcefully. It's up to you. "




And Western central banks have sold.




Bill Murphy


Lemetropolecafe.com




Bill Murphy is chairman of GATA (Gold Anti-Trust Committee) and founder of Metropole Café (www.LeMetropoleCafe.com), a website dedicated to the analysis of financial markets with particular attention to precious metals. Subscribe for free to his columns for 15 days by clicking here