by Chris Powell, GATA:
Dear Friend of GATA and Gold:
Most financial journalism and academic teaching maintains that gold is at best a quaint antique. I’m here to argue that gold not only remains money but may again be the best and most important money — to argue that, even more than this, gold is in fact the secret knowledge of the financial universe.
Gold already is so important that Western central banks — particularly the U.S. Treasury and its Exchange Stabilization Fund, the Federal Reserve, and allied central banks — rig the gold market every day, even hour by hour, to control and usually suppress gold’s price.
Why do Western central banks rig the gold market?
It’s because gold is a powerful competitive international currency that, if allowed to function in a free market, will determine the value of other currencies, the level of interest rates, and the value of government bonds. Gold’s performance is usually the opposite of the performance of government currencies and bonds. Hence central banks fight gold to defend their currencies and bonds.
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