Bron Suchecki: Blame the carpenter or the tool?

7:36a ET Thursday, October 1, 2015

Dear Friend of GATA and Gold:

Replying to your secretary/treasurer, Perth Mint research director Bron Suchecki today defends the "financialization" of markets and particularly the financialization of the gold market, arguing that it has provided the advantage of leverage to retail investors.

But as your secretary/treasurer argued the other day --

http://www.gata.org/node/15780

-- leverage is more of an advantage to those with more access to it, and no one has more access to leverage than the creators of infinite money, central banks, and even Suchecki might agree that the powerful interest of central banks is to defend the value and use of the currencies they issue and control against the value and use of the independent (or potentially independent) international currency, gold.

At least Suchecki agrees that the transparency for which GATA advocates in the gold market is desirable, which is the supreme issue in that market. But central banks oppose such transparency precisely because it would reveal their leverage and the decisive advantage it confers on them in the gold market.

Suchecki's commentary is headlined "Financialization -- Blame the Carpenter or the Tool?" Certainly GATA blames the carpenter, insofar as central banks are the surreptitious carpenters of the gold market and increasingly of other markets as well. Since only central banks are capable of using the tool of leverage as a mechanism of absolute power, those who oppose absolute power in government may resent the tool too, even as, being inanimate, it can't really be "blamed."

Suchecki's commentary is posted at the Perth Mint's Internet site here:

http://research.perthmint.com.au/2015/09/30/financialisation-blame-the-c...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org