The Gibson’s Paradox study by Barsky and Summers tells us for sure that the people with their hands on the Fed’s printing press know very well that they must suppress the gold price when real interest rates are low because otherwise there would be a stampede into gold once a momentum out of paper assets into gold began. Indeed it was the increase in interest rates by Paul Volcker in 1980 that suddenly put an end to what was turning into a massive stampede out of paper into gold as gold rose from just $35 a few years earlier to $850 by January 1980.

So, what we have is a massive deception going on to manipulate the hearts and minds of investors from straying out of the dollar, because if they did so, it would not only be the end of our economy as we know it now, but it would also result in the end of the American empire. When some major world trauma sends stocks reeling to the downside and money flows into Treasuries, some pretty, young, well-spoken lady can sit next to a Princeton Ph.D. and agree that “Gold just is no longer a safe haven.”