Dear Friend of GATA and Gold:
Bloomberg News today devotes much of its home page to an eight-minute video segment by its reporter Henry Baker that apparently was first posted several weeks ago and is ridiculously and arrogantly titled "Everything You Need to Know About Gold," as if such knowledge could be conveyed in eight minutes.
The segment might be more accurately titled "Everything Bloomberg News Wants You to Know About Gold -- and No More."
Baker begins by asserting the most common fallacy about gold -- that it pays no interest. But of course gold can pay interest, just as regular government currencies can, when it is lent, as it often has been lent by governments themselves in pursuit of suppressing its price and competition with government currencies.
Then Baker recommends exchange-traded funds as good vehicles for investors who want to own gold, without acknowledging that some gold ETFs play fast and loose with the metal they claim to own.
To his credit, Baker interviews the former director of the U.S. Mint, Ed Moy, and an anonymous "stacker," who make some valid points, though when Baker questions Moy about the U.S. gold reserve at Fort Knox nothing is said about whether any of the metal may be encumbered by leasing, swapping, or other mechanisms.
Of course the segment omits any mention of surreptitious intervention in the gold market by governments and central banks to manipulate the monetary metal's price.
Nothing is said about the Bank for International Settlements, which provides camouflage for that intervention and whose surreptitious activity in the gold market on behalf of its central bank members is now at a record level.
Nor is there any mention of the U.S. Treasury Department's Exchange Stabilization Fund, which is authorized to intervene secretly in any market in the world and whose funds for market intervention were recently increased by hundreds of billions of dollars, as if the U.S. government was planning a lot more secret intervention.
Also left out are the recent confessions by major investment banks to manipulating the gold market, and the hundreds of millions of dollars in fines those banks have paid as penalties.
Apparently Bloomberg News doesn't think its audience needs to know about that stuff, though GATA long has provided the news organization with comprehensive documentation.
All Bloomberg News wants you to know about gold can be viewed here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.