Golden Conspiracy Theories

Conspiracy theories are very popular among the gold bug set.  They are especially popular after the dollar price of gold takes a beating for some reason.  Thus you have articles like this, which I would recommend not because I necessarily agree with it but because it does have information, such as details concerning how the “physical” gold market operates, that you probably won’t see elsewhere.

Here’s something to consider, though.  The dollar price of gold really doesn’t matter at all except to three groups:  a) gold bugs who are holding gold as an investment; and b) monetary authorities (central bankers) and their high priests (economists) and other followers, who are very hostile to gold as a matter of preserving their job security, prestige and power; and c) those who oppose (b) for ideological, political or moral reasons.

In other words, more than other economic data the price of gold is a heavily political thing.  And very polarized, very difficult to compromise.  You go one way or the other on it and it doesn’t just change one thing, it changes everything.

Which is kind of scary, when you think about it.


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Filed under financial crisis, Media incompetence/bias

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