Editorial of The New York Sun
September 15, 2010
Mr. Greenspan replied that he’d thought a lot about gold prices over the years and decided the supply and demand explanations treating gold like other commodities “simply don’t pan out,” as Mr. Malpass characterized Mr. Greenspan. “He’d concluded that gold is simply different,” Mr. Malpass wrote. At one point Mr. Greenspan spoke of how, during World War II, the Allies going into North Africa found gold was insisted on in the payment of bribes.* Said the former Fed chairman: “If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it.” LINK...
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Isn't it strange how people have a different tune when they are not working under the thumb of "Uncle Sam?"
The canary that Mr. Greenspan is talking about is the HUNDREDS of TRILLIONS of dollars of OTC (over the counter) derivatives that are floating around the global economy without a home. Once these products hit home and get "Marked to Market", their true value will be revealed (ZERO) and Gold will reach the heavens above. BK
