SW Richmond

Foreign Treasury Buying and the Dollar Rally: Debunking a Theory

To quote Jim Sinclair:

"The greatest waste of time are sales from strategic stockpiles and currency intervention as they confirm the uptrend"....

....and that is exactly why they have to be fervently and constantly denied by dot gov, the CB's, and their shills. Mike, why are you making such a fuss over this, ranting about debunking conspiracy theories? The last few of your pieces at your blog have been inane rants attempting to deny the undeniable. Unbacked fiat currency, by definition, only has value because of government laws, enforced by men with guns, that declare it to have value. Central banks exist to control and manipulate its value. Without government decree and central bank support, fiat currencies would be seen as exactly what they are: paper. Therefore, government action to support the "valuableness" of the paper can safely be assumed. It is no stretch at all to also assume that foreign CBs would be willing to collude in such a scheme, as the Japanese have recently admitted (while denying they actually did engage in the activity). Did you miss that?

Given your die-hard deflationista status, I suppose it's possible that you cannot allow the possibility of government intervention in the currency and PM markets, since to admit that possibility would be to admit the unthinkable....gasp!.....

I try to remain open-minded, but seeing as how you have built your reputation on deflation, I can see how inflation would be a dire threat to you worthy of such an ongoing and emotional response.