People’s Daily overseas edition published an article that stated that the current bear market in gold results from a conspiracy between U.S. financial institutions and the Federal Reserve.
Since April this year, the international price of gold has continued to fall. In contrast, with the improvement in U.S. economic data, the U.S. dollar has gradually grown stronger. So what is the source of this shorting power that caused the price of gold to plummet?
Honng Hao, a scholar at the Securities and Futures Institute of the Central University of Finance, believes that U.S. financial institutions actually manipulate the international price of gold. Once the 12-year long gold bull market bubble bursts, the United States can negate a large number of its printed dollars. To digest large quantities of printed money, the best way is to burst the asset bubbles and transfer the loss to the investors.
Yao Tongxin, Deputy Director of the China Center for Strategic Studies at Peking University believes that the real black hands behind the scene are the Wall Street financial giants who are working together with the Federal Reserve. They have jointly controlled this round’s crash in the price of gold. The purpose of manipulating the price of gold is not just to profit through the shorting mechanism. They had a larger strategic plan in mind. That is to destroy investor confidence in gold and allow the dollar to continue to grow in strength through suppressing the price of gold, thus enhancing the dollar’s credit and in the end allowing the U.S. debt chain and financial cycle to continue.
Source: People’s Daily (overseas edition), June 12, 2013