Dear Friend of GATA and Gold:
The Huffington Post has posted an essay by GATA Chairman Bill Murphy in reply to an essay by banker Warren Mosler posted there this week asserting that central banks lease gold to earn money rather than to suppress gold’s price.
Mosler’s defense of gold leasing was practically the first to be repudiated years ago by central bankers themselves — particularly by Federal Reserve Chairman Alan Greenspan in testimony to Congress in July 1998 and by William S. White, head of the monetary and economic department of the Bank for International Settlements in a speech at a BIS conference in Basel, Switzerland, in July 2005.
Greenspan urged Congress not to regulate derivatives, remarking famously: “Central banks stand ready to lease gold in increasing quantities should be price rise”:
Continue reading GATA Chairman Murphy Rebuts Defense Of Gold Lending