Friday

Smoke and Mirrors

It was smoke and mirrors since day one. In fact, in the back of my mind, I suspect they might even have used the taper talk as a reason to hammer gold. Of course, they didn't realize that interest rates would go up. When Dr. Bernanke was asked that at one of the latest hearings, he said he was very puzzled by interest rates going up. This is the Chairman of the Federal Reserve Bank, puzzled by rates going up. That seems like an incongruous kind of situation that he’d be puzzled.

But I think he scared the hell out of people, because everyone was assuming they’d just print, print, print. The minute they said they may not print, of course, who’s the biggest loser out of it all? Gold. I think it was meant as part of the whole policy of keeping gold under control, which I think is a major problem that these central banks have in gold today. That’s why it was part of the process of getting the price of gold down.

- Source: