gold manipulation or exaggeration"

  1. 36 Posts.
    "Gold Manipulation or Exaggeration"

    I have just finished reading Martin Armstrong's article on "Gold Manipulation or Exaggeration". I agree with several points he has made, however, I would like to add a few comments and observations on what he had to say (or rather what he did not say), namely the following;

    I agree with the following:

    The "carry trade" in gold has been going on for several years.

    Islam forbids charging interest on loans.

    If you chased the Japanese and the Arabs out of gold (carry trade), nothing will change (in regards to the price of gold).

    The governments of the world have a self interest in not returning to the gold standard. To return to such as standard would require the complete abandonment of virtually every social program introduced since WW II. I do not necessarily agree with this second statement.

    Governments must return to some form of fixed exchange rate mechanism or that volatility would escalate into disrupting the world economy as a whole.

    The floating exchange rate system has allowed national debts to explode and that at some time in the future there must be reconciliation with reality.

    The gold standard gave way because governments continued to increase their debts, but never readjusted the price of gold in proportion to the increase in money supply.
    stockwatch..still mco/ gdn wte
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