Submitted by cpowell on Fri, 2012-02-17 04:59. Section: Daily Dispatches
12:25a Friday, February 17, 2012
Dear Friend of GATA and Gold:
The willfully ignorant sneering about gold in the mainstream financial news media never stops. The latest example comes from The Wall Street Journal's Liam Denning, who snickers in commentary appended here that support for gold now should be coming from central bankers, the scourge of gold bugs. Denning writes that "central bank buying masks the impact of weak jewelry demand, slowing increases in investment flows, and higher supply."
But in sneering that gold, "as an investment, yields nothing," Denning conveniently neglects to note that all major currencies now yield nothing as well, failing to pay a real rate of interest. Where's the sneering about them?
And Denning doesn't grasp the implications of a detail he acknowledges -- that the official buying of gold is coming from central banks in "emerging markets." That is, there are two groups of central banks -- the Western central banks, which long have been, both openly and surreptitiously, part of a gold price suppression scheme, and the Eastern central banks, particularly Russia's and China's, which now strive anxiously to hedge their dollar surpluses with the monetary metal and which have admitted their awareness of the gold price suppression efforts of the Western central banks:
http://www.gata.org/node/4235
http://www.gata.org/node/10380
http://www.gata.org/node/10416
"For gold bugs used to vilifying central bankers," Denning writes, "it must be discomfiting to rely on them for support."
Not really. Up against the totalitarian tactics of most of the power and money in the world, gold bugs and other adherents of free markets may be glad of support wherever they can find it. That support is far less discomfiting than relying on The Wall Street Journal to tell the truth about gold -- or relying on that newspaper to report anything contrary to a Western central bank's interest.
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