Wow, that's some serious extension into make believe land. The actual cable however, makes complete sense.ahhrunforthehills wrote: ↑Wed Jun 22, 2022 9:33 amThere is a belief amongst some that the US Government helped to create the gold futures market to suppress prices. This is largely fueled by some documents pointing to the government doing research about the impact of physical gold if a paper gold market were established. For example, https://wikileaks.org/plusd/cables/1974 ... 154_b.htmlJack Jones wrote: ↑Sun Jun 19, 2022 5:48 amConspiracy theory: does the existence of paper gold suppress the price of gold? It seems plausible to me. I'm sure there is some degree of fractional reserve going on somewhere in the world, and that reduces the demand for the real thing.jalanlong wrote: ↑Sat Jun 18, 2022 10:48 pmWell like gold, if you dont hold it in a private vault then you probably dont own it.Kbg wrote: ↑Mon May 16, 2022 4:18 pmAs opposed to the safety provided by private vendors who lose just a couple hundred mil here and there to the occasional hack.jalanlong wrote: ↑Mon May 16, 2022 2:57 pmBitcoin supporters (esp those in places like Canada) would say that Bitcoin can be for "money you can't afford to lose" when the government decides to start freezing or seizing financial assets without any due process because you have the wrong views on certain topics.dualstow wrote: ↑Thu May 12, 2022 9:32 pmBitcoin is just too young and Harry was wise. Even though he would probably have been fascinated by it, I can’t imagine that he would have recommended crypto to investors depending on his sage advice, let alone telling people to put in in a portfolio of “money you can’t afford to lose.”
Of note, we hire and pay diplomats who have economic backgrounds to collect information in foreign countries about economic things. They are known as FCS (Foreign Commercial Service) Officers.
I'm going to guess the US going off the gold standard involved lots of trying to figure out what was going to happen and what the implications of it might be back in the day. Doing so was a huge policy shift. Just so you know, your government probably has 10s of thousands of people doing exactly this thing every day on a host of topics...but sure it goes without saying "the man" is keeping the price of gold down from what it truly ought to be.
Now this is cool because all those gold dealers and future traders across the globe are definitely not creating a free market that is establishing price by the nanosecond. Hmmm...I don't like the price of gold today. My stock portfolio is down quite a bit. I think the price right now should be 10K per ounce. If you will send me 10K per oz in USD I'll execute delivery on my gold futures (which I actually have) and send you the physical gold in August. Heck, let's drop it to 8K because you have to wait.
Now for a reality check...futures markets get created (and fail) because people want to lock prices, take or give delivery at a later date, speculate and have enhanced liquidity. Market makers create them to pocket the spread of every transaction. If there's not enough interest or not enough money to be made by the MMs the futures market for the physical goes away.
Counterfactual thought experiment...once the US let gold float, can you imagine there NOT being a gold futures market with a commodity of gold's scale? I can't.