It's hard for me to believe that the US government would allow the price of gold to reach $6000US, with the corresponding skyrocketing stock prices of the miners, without first having figured out a way to capitalize on it by shafting the miners and the stockholders. Excess profit taxes, confiscating this or that, or some new scheme.

If certain national emergencies are declared, the president can do just about anything using powers already on the books.

Just can't shake the cynicism. One of the reasons I don't buy US miners, although perhaps owning Canadian miners through US OTC equivalents may be just that.

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Submitted by cpowell on 08:49AM ET Sunday, August 9, 2009. Section: Daily Dispatches

11:45a ET Sunday, August 9, 2009

Dear Friend of GATA and Gold:

Paul Brodsky and Lee Quaintance, principals in QB Asset Management in New York, have published a fascinating report speculating that massive inflation in the United States will be required to restore solvency to the country's banking system, that other countries will stop facilitating the export of U.S. dollar inflation, that the "shadow" gold price is really approaching $6,000, and that to achieve the necessary inflation central banks will arrange a "managed devaluation" of the dollar bringing gold closer to its "shadow" price. The QB report thus echoes much of what the British economist Peter Millar of Valu-Trac Investment Research wrote in his own report in 2006. (See http://www.gata.org/files/QBAssetManagement-07-2009.pdf

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