Monday, April 5, 2010

The GATA Crew Get Highlighted By Peter Brimelow

More specifically, their claim that the bullion banks manipulate the gold market downwards. Introducing the claim by way of recounting Matt Tabbai's latest exposé of Big Wall Street, Brimelow mentions a write-up in the Huffington Post that summarizing those claims:
Lewis reports the recent testimony before the Commodity Futures Trading Commission by Bill Murphy of the LeMetropoleCafé Web site. Murphy is what I call a radical gold bug, who believes not merely that gold is an inflation hedge but that the gold market has been manipulated in the interests of sustaining a financial bubble.

Additionally, however, Lewis makes an exceptionally blunt statement of the case that there's widespread deception in the institutional gold world, so that customers who think they own bullion actually own "unsecured gold loans ... at a negative interest rate." He predicts a scramble to take delivery of gold -- which would work like a bank run -- and massive dollar decline.

Fortuitously for the GATA circuit, the general public is well-primed to believe that big Wall Street firms could do such a thing. It might have gotten them their hearing.

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