What was the 'strong-dollar policy' except gold leasing and price suppression?

IMG Auteur
Published : January 18th, 2017
482 words - Reading time : 1 - 1 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
[titre article pour referencement]
0
Send
0
comment
Our Newsletter...

Financial news organizations tonight are full of reports about the imminent demise of the U.S. government's longstanding "strong-dollar policy," what with President-elect Trump having declared in an interview with The Wall Street Journal that the dollar is "too strong."

The Journal's headline is "Trump Comments Signal Shift in Approach to U.S. Dollar":

http://www.wsj.com/articles/trump-comments-si...pproach-to-u...

The headline in the Financial Times is "Trump Team Shifts Further from Strong-Dollar Policy":

https://www.ft.com/content/50376d50-dcaa-1...7c-be108f1c1dce

CNBC says "Trump Just Signaled the Death of Clinton-Era Strong-Dollar Policy":

target="_blank"

http://www.cnbc.com/2017/01/17/trump-ju...clinton-era-...

And Marketwatch's headline is "Trump Is Waving Adios to the Longstanding 'Strong-Dollar Policy'": < target="_blank"/p>

http://www.marketwatch.com/story/tru...e-longstandi...

But as always, even now no news organization seems to be explaining exactly how the "strong-dollar policy" was implemented. The policy prevailed through periods of war and peace as well as periods of U.S. government budget restraint and wretched excess.

So what did the U.S. government actually do to keep the dollar strong?


GATA long has maintained that the "strong-dollar policy" was mainly gold price suppression, implemented largely through the gold carry trade devised by President Clinton's treasury secretary, former Goldman Sachs Chairman Robert Rubin, an enterprise in which Western central banks "leased" gold to investment banks at negligible interest rates and encouraged them to sell the metal and invest the proceeds in U.S. government bonds paying closer to 5 percent. The investment banks thereby collected a spread that was risk-free as long as they had the assurance that, as Federal Reserve Chairman Alan Greenspan told Congress in July 1998, "central banks stand ready to lease gold in increasing quantities should the price rise& target="_blank"quot;:

https://www.federalreserve.gov/bo...98/19980724.htm

Gold leasing gave the U.S. government a strong dollar, strong government bond prices, and low interest rates even as the government's debt began to explode under Presidents Bush and Obama. For inflation was safely concealed behind a gold price that was suppressed by artificial and imaginary supply.

So if the U.S. government wants a weaker dollar, it probably needs only to curtail gold leases and swaps and take some central bank feet off the gold market, feet that seem to have been stomping on gold pretty hard lately, given the explosion of gold swapping through the Bank for International Settlements over the last target="_blank"year:

http://www.gata.org/node/17099

This easing of gold price suppression probably can be done without prompting any suspicion from mainstream Western financial news organizations, which are either brain-dead or as compliant as news organizations in totalitarian countries. Tonight only Marketwatch seems to have come across a hint of what the "strong-dollar policy" was really about. Of the Rubin years at Treasury, Marketwatch writes:

"The Clinton administration's tune soon changed once Rubin replaced [Lloyd] Bentsen. Rubin drove home the shift by faithfully repeating that a strong dollar was in America's interest. Some well-timed intervention that burned the fingers of dollar bears also helped."

"Intervention"? There's a big story there, but what mainstream financial news organization will ever dare to tell it?

Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All
<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
14 JulS W.
How can you sell at $60 if you've sold it all $30 What is your stop price $ It will not surprise me to see it go to $10 or $11 because...
The End of Quantitative Easing and Gold
09 JulRocco
Once the fed is done with the tightening cycle, what will happen from there? Will they just keep the fed rate at around 2.9% or will they keep rais...
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
09 JulRocco
100% for a safe profit investment. If it goes above $60 for sure i'm going out and selling ALL my silver to http://nycbullion.com ... I would even ...
Why Is Healthcare So Complex and Over-Priced in America?
03 JulRocco
Insurance companies keep raising the amount of the discount they receive from hospital bills and etc. Therefore hospitals and doctors keep raising ...
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
05 Julprljr
Good ??'s I was wondering the same things.
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
04 JulS W.
If the market ? goes bearish or bullish you have to ask yourself the question "why did I buy silver in the first place?" Do you have a stop? What i...
Silver Price Forecast 2019/2018: Silver Bull Market Is Almost Here
02 JulRocco
Great article, I think/hope silver will continue the bull!! I've invested in too much silver for it to start being a bearish market!
Why Is Healthcare So Complex and Over-Priced in America?
02 Julprljr
The AMA makes sure that their members always profit from their customers. Why do doctors need a union? Go back to before the AMA was created t...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS