Wednesday, February 20, 2013

Central Planners Are About To Completely Lose Control

"Given the ongoing bullish backdrop for the metals, we may be reaching the tipping point when the central planners completely lose control. They are so fearful of that event, they attack the one market over which they have the most influence, and which is also the one market that will send signals to the world most friendly to the central planners' cause - they trash gold. And they do it by selling paper derivatives.

On Friday there was a headline saying “Gold futures tumble in wake of Fed's Empire State data.” I mean, what does that have to do with gold? All it says to me is that the central planners were using every news release last week as cover for their interventions in the market to make it look like investors were driving the price of gold and silver lower so government interference would be somewhat cloaked.

Who thinks this drop is going to dissuade Chinese buyers, who are now back in the market this week after being outré last week for their New Year celebration? Who believes that the central planners are going to manage currencies to preserve purchasing power?

- James Turk via a recent King World News interview, read the full interview here: