by Chris Powell, Gold Seek:
Thanks to Zero Hedge for calling attention tonight to the interview of the Zurich-based financial letter The Market with James Grant, editor of Grant’s Interest Rate Observer, wherein Grant remarks that the Federal Reserve is manipulating the stock market up and interest rates down. Grant calls the latter rigging “very near to a crime.”
But as always Grant has nothing to say about the rigging of the gold market by government, which seems especially strange since gold traditionally has maintained an inverse relationship with real interest rates. That is, in the old days low real rates meant high gold prices, and vice versa.
The closest Grant gets in the interview to the paradox of the gold price is to call it “a little bit of a disappointment.” He adds: “It seems as if gold were not reading the newspapers. But seriously, I really wish gold had done better, and I wish it were doing better. Yet I’m as convinced as ever that gold is an attractive and rational alternative to these monetary shenanigans and to the consequences of 10 years of artificially imposed ultra-low interest rates. Unfortunately, when this great bet pays off is hard to say.”
A few years ago Grant and your secretary/treasurer were invited to speak at a meeting of the Committee for Monetary Research and Education, held as always in New York. Following Grant’s remarks and regretting that he had not addressed manipulation of the gold market, your secretary/treasurer said that since there were no longer any interest rates for his financial letter to observe, Grant might do the world a service to examine the documentation of gold market manipulation, which your secretary/treasurer has sent to him from time to time.
The whole thick file of it is posted at GATA’s internet site here:
Despite his longstanding criticism of central banking and his inclination to gold, Grant is frequently quoted by mainstream financial news organizations and often appears on financial television news networks. So does he really believe that governments are diddling with stock prices and interest rates but not gold? Or does he fear or has he been told that his respectability with mainstream news organizations will disappear if he carries his complaint about market manipulation one critical step further?
Grant remains in a position to strike a powerful blow for free markets and particularly a free gold market, even if the blow came in what might be his last appearance with a mainstream financial news organization. It would be a noble sacrifice for a worthy cause.