* * *
1p ET Wednesday, March 14, 2018
Keith Weiner of Monetary Metals, whose recent commentary,
"Super-Duper-Irrational Exuberance" was disputed by your
secretary/treasurer yesterday --
http://www.gata.org/node/18102
-- today responds to the criticism but answers nothing about it.
In his "Open Letter to GATA," posted at GoldSeek here --
http://news.goldseek.com/GoldSeek/1521038153.php
-- Weiner continues to ignore all the documentation GATA has collected
over nearly 20 years to show that central banks intervene surreptitiously in
the gold market to control the price of the monetary metal as part of a
scheme to control the currency and interest-rate markets generally. As he has
failed before, he fails to address even one piece of the extensive
documentation detailed yesterday.
Instead Weiner blithely asserts, without any authority: "The central
banks are in the gold market to make money -- which all agree means dollars.
They seek to earn fees on what would otherwise be an asset with a negative
yield."
Even former Fed Chairman Alan Greenspan is on the record in congressional
testimony from 1998 contradicting Weiner's fantasy:
https://www.federalreserve.gov/boarddocs/test...98/19980724.htm
Greenspan testified: "Nor can private counterparties restrict
supplies of gold, another commodity whose derivatives are often traded over
the counter, where central banks stand ready to lease gold in increasing
quantities should the price rise."
With his testimony Greenspan was urging Congress not to try regulating
financial derivatives, and among his arguments was that there was no need for
Congress to worry about a corner in the gold market for central banks already
controlled the price through gold leasing.
Weiner's assertion that central banks are in the gold market to make money
through leasing is ridiculous on its face anyway, for central banks make
money all by themselves. They are the manufacturers of money,
empowered to create infinite amounts, and in the last decade they have
done so with a vengeance. By comparison to the money they have created
effortlessly, any money they have made through gold leasing wouldn't amount
to the pocket change that has fallen behind their couch cushions.
As your secretary/treasurer noted yesterday, the desire and plan to
control the gold price to protect the U.S. dollar's status as the world
reserve currency was laid out in splendid detail in the minutes of a meeting
in April 1974 in the office of U.S. Secretary of State Henry Kissinger. The
secretary was told by his deputy, Thomas O. Enders, that control of the gold
price was crucial to U.S. government policy because it conveys control of all
world currency values and even control of the world financial system:
http://www.gata.org/node/13310
Weiner is welcome to his mathematical formulas for making money with gold,
which he describes today in tediously distracting detail. His calculated
distraction from the issue GATA long has been pressing is not welcome. It is
dishonest.
