“Today a former Assistant Secretary of the US Treasury told King World News, “… the dollar is the vulnerable spot in the Fed’s policy management, and the popping of the bubble is likely to come from the dollar.” Former Assistant of the US Treasury, Dr. Paul Craig Roberts, also warned King World News that a financial collapse is coming, and the Fed is desperately manipulating the gold price in an attempt to avoid the collapse.
Here is what Dr. Roberts had to say in this extraordinary and exclusive interview: “A lot of people just can’t imagine that the government would fix the gold price. And yet, in full view, the government fixes the bond price, and the banks fix the LIBOR rate. So why is it people can’t comprehend that the government would fix the price of gold (laughter ensues)?”
Dr. Paul Craig Roberts continues…
“And you have to ask yourself, who would short gold in a rising gold market? In the physical gold market the demand for gold rises consistently. Investors would ride the rise in gold. Do investors go in and short a bull market in stocks? Not unless they want to get wiped out. So why would they short a rising gold market unless the purpose is to stop the rise?
So it’s obvious that they are fixing the price of gold because we hear every day that there is more physical demand for people who actually want the metal.
“We hear reports that central banks are starting to acquire and accumulate gold using their dollars, and lightening their dollar load.
So if the demand for physical possession is strong, why would you short gold in the paper market, unless you are trying to hold down the rise of its price? When the price of gold hit $1,900 a year or two ago it told the Fed that they can’t fix the price of bonds if the world perceives the dollar deteriorating at such a rapid rate in terms of the price of precious metals.
If the dollar is deteriorating there (against gold), people also know that the value of assets denominated in dollars are also deteriorating. So the Fed was worried that they would lose control of the bond price and interest rates because of the erosion in the dollar price of gold. That is the origin of this policy. The (heavy) shorting appeared then, and they broke up what was a very consistent and strong rise for over a decade.
If you look at the chart you see there is a very sharp increase, and then it drops down a little bit and is kind of capped. So it’s an obvious manipulation.” …”
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