Will U.S. ease off gold price suppression to offset rate-rise boost to dollar?

GATA secretary/treasurer Chris Powell is no market analyst. Rather, he is only the archivist of documentation of largely surreptitious intervention in the gold market by central banks to defend their currencies and government bonds, to control interest rates and the prices of strategic commodities, and, really, thereby to control the world:
But given the new warning from the Bank for International Settlements against more appreciation of the U.S. dollar, as described in the report yesterday from the London Telegraph, your secretary/treasurer will volunteer a suspicion that he hopes arises more from his experience with the deceit basic to modern central banking than from his wishful thinking, his belief in free and transparent markets and gold’s crucial function in achieving them.
That suspicion is that the U.S. government and its remaining allies in international market rigging will use and maybe already on Friday began using the Federal Reserve’s expected nominal raising of interest rates this month as cause to ease off gold price suppression and to let the gold price rise a little.
While the Fed’s raising U.S. interest rates would tend to strengthen the dollar and increase the burden of dollar-denominated debt, about which the BIS and many others are warning, a simultaneously rising gold price would tend to devalue the dollar. It would be one foot on the brake ostentatiously, the other foot on the accelerator surreptitiously, allowing the Fed to save face after its many postponements of raising rates while continuing to support asset inflation.
Of course, just as when you’re a hammer everything looks like a nail, when you’re the archivist of gold price suppression everything central banks do is read in the context of their ever-increasing intervention in the markets to protect their power. Indeed, as the new BIS report says, central bank policies themselves have become the markets. Or as a high school graduate told GATA’s Washington conference seven years ago, with no tutoring at all from the BIS, “There are no markets anymore, just interventions“.

This post was published at GATA