Dear Friend of GATA and Gold:
Your secretary/treasurer is scheduled to be interviewed on by Bernie Lo on the “Squawk Box Asia” program on CNBC Asia at about 7:40 Thursday morning Hong Kong time. If circumstances allow your secretary/treasurer will try to rebut the enduring cliche about gold, articulated again all over the Internet this week by market analyst and investment adviser Przemyslaw Radomski –
– that “central bankers can print all the fiat currency they like but they can’t manufacture gold. Its supply is more or less fixed.”
Of course the primary mechanism for unfixing the gold supply over the last 40 years or so indeed has been a form of central bank-sponsored alchemy, the creation of “paper gold,” the vast expansion of the Western fractional-reserve gold banking system. GATA has documented this over and over again, most recently with its disclosure of the secret March 1999 report by the staff of the International Monetary Fund, which affirmed that Western central banks conceal their gold swaps and leases precisely to facilitate their surreptitious interventions in the currency markets:
This explains the steady disparagement about gold in recent years — that even with its great increase in price gold has not kept pace with inflation over the last several decades, the decades of “paper gold” and the expansion of fractional-reserve gold banking.