GOLD (COMEX) The US is sinking ... sinking ... sinking

Originally posted by timber1956 ↑

Average Joh

Just because the Fed intervenes in one market, it doesn't follow that they intervene in all markets.

There are very obvious reasons why the Fed would move in the bond market to push rates down. You seem to understand that.

There is no obvious reason for the Fed to intervene in the gold market. What would they achieve by pushing gold down? A strong dollar? The Fed doesn't want that. (Fed officials will stand in public, hand on chest, and swear allegiance to flag, mom's apple pie and a strong dollar, then turn around and do everything in their power to weaken that same dollar, because they know that a strong US dollar isn't good for US balance of trade or the economy. They don't care about the value of the savings of white rich old men.)

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Timber states: "There is no obvious reason for the Fed to intervene in the gold market. What would they achieve by pushing gold down? "

The following extract from an article linked at http://www.zerohedge.com/news/fts-t...ide-or-ignore-gata-gata-debates-cpm-re-silver provides a logical answer to the Timber question.

"It is an important debate as increasingly governments and central banks are distorting financial markets and the free market through constant interventions in markets.

In the western world, we have seen interest rates cut close to zero, capital injections and bailouts, lending guarantees, saving and deposit guarantees, favouring certain banks and institutions over others, banning short selling and now the latest intervention is the absurd - consideration of banning sovereign credit ratings.

At the same time competitive currency devaluations are taking place globally with central banks debasing currencies and outright intervention in currency markets in order to lower the value of national and supranational currencies.

Japan is the glaring example of this and Switzerland’s recent ‘pegging’ of the Swiss franc was in the same vein.

With governments surreptitiously and openly manipulating their currencies, it would seem like the logical (sic) that some governments might have an interest in not seeing gold and silver prices soar.
Surging gold and silver prices are a vote of no confidence in fiat paper currencies and government and central banks stewardship of these currencies. This is especially the case with the US dollar as the global reserve currency and all governments have an interest in maintain faith in the dollar and in fiat currencies which is a possibly (sic) motive for intervention in the gold and silver markets."

A further article by Chris Powell from GATA is also an interesting read and has plenty of Tier 1 research linked to it as well. I have no idea whether GATA are crack pots or otherwise. Regardless, the article below is a thought provoking read.

http://gata.org/node/13185

Cheers