Gold was down by $97 at one point on Leap Day. This was central bank intervention. Ben Bernanke testified to Congress indicating that Quantitative Easing was not currently needed while the European Central Bank made a $712.4 Billion loan injection into the member bank system. Here is how is works: Federal Reserve Bank to IMF, IMF to European Central Bank, European Central Bank to member banks. That is quantitative easing. For more on the liquidity injection, see: http://abcnews.go.com/Business/wireStory/asia-stocks-rise-dow-closes-13000-15813476#.T09up_HZCNg This action barely made the news yet the impact to you and me will be staggering. The orchestrated slam against gold is an attempt to cover up the reality of expanding the money supply into infinity. The canary in the coal mine was just given an oxygen mask to delay the inevitable.
Today was one of the largest injections of liquidity to ever occur in history. The mainstream media (MSM) once again failed to bring this to the attention of the public. The truth and the facts are often difficult to find when those in control want to manipulate by perception. This is one reason why there are regulatory attempts to control the content of the Internet. My senator opposes such regulation and will work against such attempts, will yours?
The gold market will increase volatility. $100 moves will become normal and gold will be the “last man standing” in the currency arena. No amount of rhetoric from the MSM or Fed Chief can change the fact that sovereign debt is still at epic proportions and contraction is the only true way of dealing with the debt and retaining the current system. Contraction isn’t acceptable to the politicians since they don’t want to be counted among the unemployed. They will pursue money expansion to infinity.