Has The Federal Reserve Been Intervening In The Market Or Is It Actually A Bit Coin Meltdown?
There is a long running controversy in Washington over whether or not the Federal Reserve is “intervening” in the price of gold. The American people want to know: Why are the banks doing it? And who is responsible for causing all this price fluctuation?
We asked our good friend, Mike “Mish” Shedlock, for his analysis of the situation and his opinion on the matter: “There is some truth to the argument that the Federal Reserve Immediate Edge Review, among other central banks, has been intervening in the market in an attempt to stem the losses from the bubble of cheap, short-term Treasuries that inflated the bubble of price appreciation of the financial sector. I will say this, however, that the impact is only temporary at best.
If I were Ice and His Crew, I would be selling gold. I would also be selling shares of Goldman Sachs.
I have been warning about the bubble bursting, but I did not anticipate that we would get caught up in it. My stock picks have not been so well received, but it is only temporary and may well turn around.
In fact, I believe that it will turn out that we will recover from this bubble that has been popping, as the correction of price appreciation occurs. I will say this: If the price does not correct soon, it is unlikely that any of us will make money. I am not one of those who say that it is better to be fat and lazy than rich.
The smart money is not going to play in this game. I do not blame them for making this investment.
Some say that the Federal Reserve is in the middle of an intervention in the gold market to stop this bit coin fiasco, or similar activity in Europe. Again, it appears that they have been playing this exact same game for some time now. Their history has always been one of speculation and greed.
But if you are the Federal Reserve, why are you allowing the price of gold to have fallen so much against the dollar, even as you intervene in the market to prop up the value of the dollar? You are providing the fuel that has fueled the fire of speculation.
I say it is Time for a little perspective; we should not be using speculation as a means to protect ourselves from the economic consequences of the bit coin fiasco. The free market is letting the world know what it knows, which is that speculation and greed are not ways to create wealth.
I will also say this: If I am right, why don’t we just let the world destroy itself, which is what the federal reserve has been doing? Not sure what that says about the leadership of this country.
So I will say this: If you want to tell me that I am wrong, then you must give me some little insight into the situation that will tell me that I am not correct. You must give me the fact that our economy is getting worse, and the reasoning behind that fact.
That is the only thing that I can think of that will actually change my belief that there is a bubble in the price of gold and that the United States economy is in the middle of a currency war. Please consider all this and think on it.”