Dear Friend of GATA and Gold:
Our pal D.M. conveys the following disparagement from a friend -- call him Doofus -- and asks for a reply:
"Central banks manipulate far more than just gold -- interest rates, stock markets, housing markets, etc. That's what they do. And so what? The gold price has gone up for the last 12 years, despite the 'manipulation.' So I don't see what's the issue. Even if Western central banks try to sell gold down, Eastern central banks are only too happy to accumulate at lower prices."
Contrast Doofus' "so what?" argument with the contemptuous and yet ridiculous denial given to CNBC yesterday by CPM Group Managing Director Jeffrey Christian that there is anything surreptitious or questionable going on in the gold market:
CNBC reported (http://www.gata.org/node/12333): "Jeffrey Christian, founder and managing director of commodities research firm CPM Group, was a lot more blunt about GATA, saying, 'I think they're outright liars. ... Pretty much what they do is nonsense.' Christian added that he believed there was no conspiracy among global central banks to collude over gold prices and that central banks are 'very transparent' about their monetary gold reserves."
Doofus says that what GATA trumpets is only obvious. But Christian not only denies what Doofus calls obvious but, in denying it, is considered an industry expert by financial news organizations.
So are central banks manipulating the gold market and other markets or not? Before disparaging GATA Doofus might try putting the question to Federal Reserve Chairman Ben Bernanke. If Doofus gets an acknowledgment of market manipulation, it will be international news.
Then consider whether, in democracies, governments should be lying to and misleading their people quite so comprehensively and whether it's really a matter of indifference even to Doofus himself whether any democracy or the world has free markets.
Yes, rigging markets is indeed what central banks do these days. That's what a high school graduate told GATA's Washington conference five years ago:
"Gold is only part of it. For market intervention is exactly why central banking was invented. Intervening in ...