There's trouble brewing with gold yet again -- what, did you think we forgot about the bond market implosion earlier this month? Oh please. Perhaps Timmy has forgotten but you know the Chinese haven't, they're the elephants of American dollars and they aren't going to let a single one slip out of the printer. Hate to break it to you, Zimbabwe Ben, but they've sort of got our number.
Fox News, however, is a tad behind the curve. $1000 gold? Please. I've been saying $1500 by the end of the year if only it can break $1000. Who or what is intent on keeping it down? And what in the hell is going on with the Comex? Well, duh, again.
Gold could go well above $1,000 an ounce in the next couple of years, according to some people bullish on the metal, who say China could boost the yellow metal's price significantly if it takes the policy actions one of its research officials is advocating.
GATA Chair Bill Murphy blames Citi alum (and ex Goldman exec) Robert Rubin for these shenanigans, and I guess "setting the tone" can have its own consequences:
Bill Murphy: It's what we call "The Gold Cartel". The United States government is the main culprit, with "hit men" like Goldman Sachs and J.P. Morgan Chase, and other central banks, like the Bank of England. It's been going on for some time now.
Basically, it all started with [former US Treasury Secretary under the Clinton Administration] Robert Rubin, back when he was the head of Goldman Sachs in London. He would borrow gold from the central banks at a 1% interest rate, and then sell it. He took this idea and made it the essence of his "Strong Dollar Policy" [while at the US Treasury].
Read the full article - click here (hint: it gets worse)