Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Actually it was Jim Richter who "clarified" the mechanics of "Strong Dollar":

Do you remember the "Strong Dollar Policy," as enunciated by President Clinton's Treasury Secretary, Robert Rubin? It turns out that this was nothing more than a scheme by which to have the best of all possible worlds: Stock market? UP! Interest rates? DOWN! Bond prices? UP! Dollar? UP! Gold? DOWN! How was this accomplished?

Greenspan took care of keeping interest rates low. This bred a series of asset bubbles, culminating in the real estate bubble which began deflating in 2007, leaving a giant unpayable debt bubble in its wake. Gold was, allegedly, kept down first by leasing gold reserves to bullion banks who then sold it to the public and then, increasingly, by the bullion banks selling naked shorts and puts on gold, with their losses, recently at least, likely made good by QE money. This worked quite well -- except for the periodic bursting of asset bubbles -- which, of course, no one could see coming -- until The Masters of The Universe lost control of too many variables. The chief among these was loosing control of the real estate bubble, especially the MBSs, CDOs etc. It was not until 2009 that the precious metals markets took off -- after too many people caught on to the manipulation of precious metal prices and the vulnerabilities this created, especially in the silver market, where, allegedly, many times the world total availability of silver bullion has been sold short, setting the stage for a short squeeze.

Time will tell.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Apr 26th, 2011 at 11:07:18 AM EST
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