Nobody Can Manipulate Markets – Not Even Central Banks

QUESTION: Can central banks not even manipulate the markets?

FS

ANSWER: No.  Here is the track record of the central banks when they created the Group of 5 (now G20) in 1985. I warned them they would create a crash within two years. But look at what happened. The fools assumed the central banks could manipulate the dollar. When the Plaza Accord took place, the dollar had already peaked. Because the fools thought the decline was all because of the central banks, when the dollar had fallen too far, they held the Louvre Accord and came out saying the dollar had fallen far enough. When the dollar moved low again, the 1987 Crash too place BECAUSE the central banks were perceived to have no control.

I was named FOREX Person of the year for calling the collapse of the Swiss/Euro Peg. I even met with the Swiss central bank and warned them, They said they would be able to hold the peg and and said now way. I have met with more central banks than probably anyone – ever. I have been in the room when the red phone was ringing between the G5 on manipulating currencies. I need not engage in conspiracy theories. We have first-hand experience.

Even go back to the US Civil War. The dollar was collapsing, and the price of gold soared regarding greenbacks. Lincoln did everything. He shut down gold trading on the New York Stock Exchange. They then traded on the curb and created the Gold Room. Nothing worked.

Here is the New York Times from November 18th, 1864. They observed the “folly of attempting to regulate the price [of gold] or any other article of traffic by forcible interference.” Anyone who claims that gold was suppressed because of manipulation made that up because they do not understand that gold DOES NOT rise linked to inflation. Gold soars when there is a collapse in confidence in government and in times of war, just as it did during the Civil War.

Gold declined for 19 years while inflation rose and the National Debt exploded. Gold has rallied only when the CONFIDENCE in government has declined as we are seeing today. People are getting very tense. In Texas, a guy drove his 18-wheeler into a Texas Public Safety office after being denied a Commercial Drivers License.

CONFIDENCE has collapsed by about 50% since 1980. The movie coming out tomorrow on April 12th is the Civil War.  Such a movie 20 years ago would have been unheard of.