Stock touting may be a lot easier when “nobody knows anything” — Chris Powell

Mining stock promoter Bob Moriarty, proprietor of 321Gold.com and author of the new book “Nobody Knows Anything,” was at least speaking for himself the other day when he claimed that central banks care a lot about interest rates but not at all about gold.
In commentary headlined “A Zombie Financial System, Black Swans, and a Gold Share Correction” — Moriarty wrote: “As a measure of just how important gold is to the world financial system in comparison to interest rates, interest rate derivatives are about 1,300 times greater than gold derivatives. We have a lot of me-too parrot websites talking about manipulation and conspiracies but logic tells us central banks worry about interest rates and couldn’t care less about the price of gold.”
But central banks care about gold precisely because its price has a long historical correlation with interest rates and government bond prices, a correlation studied and documented by central bankers and economists alike, including, in their 1988 study, “Gibson’s Paradox and the Gold Standard,” Harvard economics professor Lawrence Summers, who went on to become U.S. treasury secretary, and University of Michigan economics professor Robert Barsky
If central banks “couldn’t care less about the price of gold,” why are they trading it “nearly on a daily basis” and why is the BIS arranging gold swaps?
Of course GATA has compiled an enormous amount of official documentation showing that central banks care desperately about the gold price and about concealing their intervention in the gold market, and always will care as long as gold is considered money, a form of money competing with central bank currencies.
So why does Moriarty insist that there is nothing to this even as he fails to address even one document? Why does he constantly misinform his readers? Is it because the stock-touting business is a lot easier when nobody knows anything?

This post was published at GATA