QE, The Gold Price, The Meaning of Words, and the Congressional Cycle, by "Argentus Maximus"
“When I use a word,” Humpty Dumpty said, in rather a scornful tone, “it means just what I choose it to mean -- neither more nor less.”
“The question is,” said Alice, “whether you can make words mean so many different things.”
Paul Volcker said of his tenure at the Fed, and I paraphrase in my own words here, “if I had to do it over again, everything else would be done exactly the same but I would keep a tighter control over the price of gold”.
Fast forward a half century and here we are again. The clock of time has turned and again a great depression is on. The price of gold is suppressed. It is hardly surprising.
Let me refer to another gold bear. During the 1998-2000 gold bear market called Brown’s Bottom in the gold price there was a similar time during which the price of gold was manipulated downwards under threats of sale, and eventual actual sale itself of a substantial amount of the Bank of England gold, IMF gold, and sellable gold from anyone else willing to sell and their dog. We are now aware that the banks in the UK were insolvent and were able to cover naked shorts and recapitalize using cheap gold prices brought about by the unfortunate UK Chancellor of the Exchequer. ...