Economist Dr. Paul Craig Roberts says, “The reason they want to hold the gold price down is they are afraid of its impact on the dollar. The reason why they had to suppress the gold price is they had to protect the dollar from quantitative easing (QE) because they were printing trillions and trillions of new dollars.” Roberts, who was an Assistant Treasury Secretary and the so-called Father of Reaganomics, goes on to say, “This was worrying people around the world who hold dollars because the dollar was increasing, but not the goods and services in the American economy. So, when the gold price took off, the Fed said this endangers QE because if the dollar is declining in value relative to gold, it must also be declining in value relative to other currencies. Once the exchange rate starts collapsing, we lose control. So, we got to suppress gold. I don’t know which side of the equation will play out first. I don’t know if they will run out of gold to deliver to India and China or people will say this is a rigged scheme and we are just not participating anymore.”
Posted on: Sun, 19 Oct 2014 23:01:17 +0000
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