When Dr. Alan Greenspan became chairman of the Federal Reserve, he moved from the world of rhetorical economics to the world of action. His most recent memoir attempts to make sense of how the financial crisis of 2008 came to be and how we can better predict future crises, along with the role of gold in a global monetary system.
Last Sunday, Sept. 15, marked the five-year anniversary of the collapse of Lehman Brothers. At that time the gold price was trading near the $900 per ounce level. I believed that to be on the high side, actually expecting gold to trade down to around $700.
According to the former special inspector general for the $700-billion US Troubled Asset Relief Program (Tarp) that bailed out the US banking system in 2008, another financial crisis is all but inevitable and the cost will be even higher than the 2008 financial crisis.
It is folly to look at the day to day gyrations of our wealth in the earth selections. There are those critics who might question the absence of risk management in precious metal selections. They miss the basic point completely.
What does taking care of its shareholders special interests first have to do with the Fed’s official dual mandate: stable prices and high employment? And
what do we replace, not just the Fed with, but the entire global fiat monetary system with?
The investigation into the inner workings of the gold market that are out of public view and decided behind closed doors in central banks is an ongoing effort. It has been that way for years, and fortunately, GATA has been there relentlessly compiling the mounting evidence.
The history of the US dollar is closely linked to US involvement in a series of wars. The loss of value in the dollar caused by excessive expansion of the money supply, together with rising demand for raw materials, has led to permanently higher global commodity prices.
Thanks to their powerful decade-old secular bull, commodities are growing increasingly popular among investors and speculators. Naturally the prudent ones are always looking for insights to optimize their timing in buying low and selling high.
Traders beware, the dreaded precious-metals summer doldrums are now upon us. Summers are barren sentiment wastelands for the entire PM complex. Gold, silver, and the PM stocks tend to grind listlessly sideways to lower, vexing traders.