-- Posted Sunday, 17 July 2011 | | Disqus
Dear Friend of GATA and Gold:
From Jack Farchy's story in Wednesday's Financial Times, headlined "QE3 Talk Pushes Gold to Nominal Record" (http://www.ft.com/intl/cms/s/0/d11d6146-ad43-11e0-a24e-00144feabdc0.html):
"Gold also hit fresh records when denominated in euros, sterling, and rand. Adjusted for inflation, however, it remained below its 1980 peak, which translates to about $2,400 in today's money."
Why does the Financial Times have no curiosity about gold's so badly failing as an inflation hedge over the last 30 years, failing by 50 percent or more? Here the gold price suppression scheme stares journalists in the face and yet they don't see it.
Of course an explanation for this failure is readily available from GATA and others: central bank dishoarding and leasing of gold and particularly the surreptitious underwriting by central banks of "paper gold," the creation of a vast supply of imaginary gold for which delivery is never taken, the development of a fractional-reserve gold banking system precisely to cripple gold's usefulness as a hedge against the inflation created by central banks and to rob gold of its traditional influence on interest rates and the value of government bonds.
A lot of this is spelled out in the "Documentation" section of GATA's Internet site:
http://www.gata.org/taxonomy/term/21
But while you can lead a journalist to the facts, you can't make him think.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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-- Posted Sunday, 17 July 2011 | Digg This Article | Source: GoldSeek.com