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Not sure about this theory, but it was fun reading,,,,,,,
The price of gold was off by nearly 5% yesterday, with comex gold losing over $97 an ounce on an intraday basis. This price collapse is comparable, in percentage terms, to the carnage seen in other precious metals, but well beyond the damage seen in other ‘risk’ areas of the marketplace (i.e. commodities and equities). Accordingly, the question deserves to be asked: why is gold outpacing the recent decline in other ‘risk’ areas of the marketplace?
As you would suspect, there are numerous speculations to draw upon. For starters, precious metals lease rates, which as we know allow powerful interests to more readily manipulate gold, have been sliding of late due to European banks scrambling for dollars. Falling lease rates, as a basic rule, imply that it is easier for other banks to borrow gold and short/push the price of gold lower. Next, there is the idea, taken from Tuesday’s dull FOMC statement and some of many quotations coming out of Europe, that deflation could be a lesser evil than inflation in Europe. Although this outlook could drastically change tomorrow, it nonetheless seems to have played a role in dampening investor’ appetite for risk. Finally, there are the usual suspects: the strengthening dollar sent gold lower and as gold broke through key technical levels the weak hands started to flee and ‘forced selling emanated from the hedge-fund world’.
These points noted, what no one in gold land is doing is blaming Ron Paul.
‘End The Fed’ or End The Gold Bull?
On the surface, there is no larger political supporter of gold and precious metals than Ron Paul. After all,
http://beforeitsnews.com/story/1514/652/Did_Ron_Paul_Slay_The_Gold_Bull.html
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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