0 votes

Santelli :: Central Banks suppress Gold

CNBC's Santelli blurts it out: Central banks suppress gold

8:37p ET Monday, November 23, 2009

Dear Friend of GATA and Gold:

Tin-foil hats are suddenly in fashion, with the latest one being worn by none other than CNBC on-air editor Rick Santelli, who donned his early this morning on the business news network's "Trading Block" program.

The program began as a general discussion of the markets by several investment house representatives but soon got into a long exchange between Santelli and Philip Gotthelf, president of Equidex Brokerage Group in Closter, New Jersey. Gotthelf was making the case for a much higher gold price and asserting that central banks would dread such a thing when Santelli interjected about former Treasury Secretary Lawrence Summers: "Didn't Larry Summers himself write a paper, called 'Suppression,' that central banks have to keep a lid on gold for obvious reasons?"

Until today it had seemed that only the lunatic fringe -- or the exceedingly well-informed -- knew about Summers' paper, a keystone of GATA's research. Of course the paper, written while Summers was a professor at Harvard, wasn't titled "Suppression," though that well could have been its title if it ever reached paperback. No, the paper was titled "Gibson's Paradox and the Gold Standard" and it explained the historic inverse relationship between gold and real interest rates and suggested that central banks could achieve their holy grail, complete control over interest rates, if they gained complete control over their nemesis, the price of gold. "Suppression" is indeed the best single-word summary for what Summers' paper had in mind for gold, and you can read "Gibson's Paradox and the Gold Standard" at GATA's Internet site here:

http://www.gata.org/files/gibson.pdf

So now Santelli has let the CNBC audience know that gold price suppression is not only the bane of the supposedly lunatic fringe but also the very premise of the U.S. financial establishment.

Whoddathunkit? But it happened today and you can watch it, starting at about the 7:30 mark in the 10-minute, 46-second segment at the CNBC video archive here:

http://www.cnbc.com/id/15840232?video=1339705660&play=1

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

uhh

Are they secretly suppressing oil, and silver and agriculture too.

idk I just have a hard time believing there is a grand conspiracy here.

Ive been saying it for over

Ive been saying it for over 2 years.. welcom to the club Rick..

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

wow.

thanks.

--------------------------------
"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
----------------------------

e.... can you send me a

e.... can you send me a private email please.. I can't find you on here.

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

reedr3v's picture

Good

catch.

thank you very much for this post

very interesting...