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Is this what the cabal have been counting on to extricate themselves from their short gold/silver positions?:
Jump In Bond Yields: $1000 Gold Now A Possibility - iiTrader- Kitco News, Sep 5 2013 2:17PM
Well, it won't work for at least two reasons:
1) The dramatic physical demand created by the downward manipulation of the gold/silver prices will prevent prices from dropping in a free market (which we are not yet in);
2) In a free market, at this point in the credit cycle gold moves up when interest rates move up. Why? Because as we move into a hyperinflationary period the interest rates in play in the marketplace will lag what the interest rates should be. They will never catch up. In other words, the interest rates in play in the marketplace will never reflect what the the interest rates should be adjusted correctly for inflation. This will help gold's rise (Gibson's Paradox). The interest rates in play in the marketplace will fall further and further behind where they should be causing the inflation adjusted interest rates to decline and even go negative because to move the interest rates in play in the marketplace up quickly as inflation rises quickly will kill the economy. And at this point in the credit cycle governments will do their best to ensure you do not know the true rate of inflation. And as we have seen with Bernake, at times governments will do their best to ensure interest rates in play in the marketplace are kept artificially low, below what is required to efficiently and effectively clear capital.
Can the Federal Reserve or anyone else control the interest rates in play in the marketplace? To some degree they can, but can they drive up interest rates in play in the marketplace enough and can they do so practically to cause the real rate of return to go dramatically positive? And do they want to?
Long ago I said it is my opinion the Fed would dramatically increase interest rate quickly at some point catching everyone off guard. I believe they might do this to inflict as much pain as they can on the public as they come to the end of the line where they are about to lose control of major markets. Only in such a desperate act of insanity would the real rate of return go dramatically positive, and only temporarily. But it is possible.
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sailing
09-08-2013 @ 3:59 PM