Noting that markets have been destroyed, Chris Martenson earns his tinfoil hat
By: Chris Powell, Secretary/Treasurer, GATA
Sunday, 16 December 2012
Dear Friend of GATA and Gold:
With his commentary this week Chris Martenson became the latest financial writer to earn his tinfoil hat.
“Once upon a time,” Martenson writes, perhaps with a weary glance at GATA, “it would have been considered in bad taste to suggest that the world was being centrally managed in secret by a smallish cabal of bankers whose actions served to either prop up the excessive spending habits of the very governments that conferred upon them the power to print money or to bolster the health and profits of the banks they mainly serve. That was then. Today you can just read about it in the Wall Street Journal.”
Martenson then cites a report from Wednesday’s Wall Street Journal about central bankers having lovely dinners at private meetings at the Bank for International Settlements in Basel, Switzerland, during which they secretly experiment with and decide the fate of the world —
— a report that your secretary/treasurer didn’t even bother to call to your attention because you have heard it dozens of times from GATA already.
Turning to gold, Martenson writes:
“I don’t really think that gold’s current market price or recent behavior have anything useful to do with gold’s value here. … [S]ome entity has been selling literally thousands and thousands of gold contracts into the thinly traded overnight markets so rapidly that we have to use millisecond charting to see it for what it is. Again, there is no other legitimate explanation for this activity of which I am aware besides having an intent of pushing the price down.
“Whether there is some motivation for this activity besides ‘making money,’ I remain convinced that the gold market, like many others, is no longer sending useful price signals. Instead it is telling us that some entity has found it useful to sell thousands of gold contracts all at once.
“The interesting part of this story is that this has been the most sustained, intensive, and yet ineffective gold selling that I have yet seen. In the past, such bear raids, as they are called, would have resulted in a sharply lower gold price. Right now that has not yet really happened.