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Bron Suchecki: PBOC paper recommends leasing its reserves to manipulate gold price
12:20p CET Wednesday, December 10, 2014
Dear Friend of GATA and Gold:
The Perth Mint's Bron Suchecki today disputes Bullion Star market analyst and GATA consultant Koos Jansen's interpretation of a 2011 analysis of gold leasing written for the People's Bank of China. (Jansen's commentary is here: https://www.bullionstar.com/blog/koos-jansen/a-close-look-at-the-chinese....)
Suchecki writes that the PBOC analysis cited by Jansen is most notable for indicating the Chinese central bank's potential interest in using gold leasing to manipulate the currency markets, much as Western central banks do.
The disagreement may be important for Suchecki's implicit reminder that it would be an exceedingly rare central bank that wanted free markets enough that it was willing to extend them to its own currency. Indeed, while gold advocates are inclined to root for China and Russia in the international currency war or competition because the governments of those countries seem to recognize gold's monetary function, China and Russia don't want free and transparent markets and limited and accountable government any more than Western governments do.
If free markets for international trade are ever to be established, they probably will be established only begrudgingly as nations form themselves into blocs and those blocs balance the power of each other, possibly returning to gold as the neutral arbiter.
It may happen as religious freedom happened in the United States -- not by design but as a sullen compromise between sects that preferred to oppress other sects but lacked the power to do so and settled on toleration to ensure their own survival.
As your secretary/treasurer long has been arguing, and did again yesterday --
-- currency market rigging is the primary mechanism of modern imperialism. So of course the People's Bank of China may aspire to the same totalitarian power exercised by the U.S. Treasury Department and Federal Reserve Board. But if those powers counter and balance each other, the rest of the world might be able to scratch out a little economic freedom.
Suchecki's commentary is headlined "PBOC Paper Recommends Leasing Its Reserves to Manipulate Gold Price" and it's posted at his blog, Gold Chat, here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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