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The US is sinking ... sinking ... sinking, page-38

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AverageJoe

42,041 Posts.

1017

08/10/14

00:26

Post #: 14090144
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Originally posted by mainholm ↑

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

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We all know about the interventions but we can't really prove that they intervene in the currency or PM. For all you know the major central bankers could have have collectively intervene to push up the USD, who knows. I as a trader/investor can only play by their rules and ride their coat tails. Look for the trend and ride it instead of fight it.

Gold holding that 1180 level. Anyone thinks short term we will get a V shape rally even if a few dead cat bounce?
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0 Great analysis

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