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Quote by William Smith White

“There are five main purposes of central bank cooperation"..."the provision of international credits and joint efforts to influence asset prices (especially gold and foreign exchange) in circumstances where this might be thought useful.”

Quote by William Smith White

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William Smith White

William Smith White (1906-1994) was an American author known for his profound social insight and delicate portrayal of human nature. His works, mainly novels and essays, are characterized by their deep social commentary and intricate character development. more

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“That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.”

Would BeMistakePercentGoldDollarsRateSufficientCurrencyFloatingAppreciatedInterventionJointsSteepSwitching
Author:Paul Volcker
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“It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. [I]f the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with 'free banking.' The truly unique power of a central bank, after all, is the power to create money, and ultimately the power to create is the power to destroy.”

FactsCenturyUniqueStandardsGoldObjectivesTendenciesBoardsStabilityCurrencyPassiveBankingInflationNineteenth CenturyCentral BanksGold StandardProminencePrice Stability
Author:Paul Volcker
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“I have one other issue I'd like to throw on the table. I hesitate to do it, but let me tell you some of the issues that are involved here. If we are dealing with psychology, then the thermometers one uses to measure it have an effect. I was raising the question on the side with Governor Mullins of what would happen if the Treasury sold a little gold in this market. There's an interesting question here because if the gold price broke in that context, the thermometer would not be just a measuring tool. It would basically affect the underlying psychology.”

IfsLittlesUseHappensSidesInterestingIssuesPsychologyEffectsInvolvedToolsGoldLet MeTablesBrokeGovernorsMeasuringTreasuryThermometersGold Price
Author:Alan Greenspan
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“I can't remember the exact quote but when I used to trade and Mr. Volcker was Fed chairman, he said something like 'gold is my enemy, I'm always watching what gold is doing', we need to think why he made a statement like that. If you're a central banker or one of the congressmen or senators, watch what gold is doing because this is a no-confidence vote in fiscal and dollar policy.”

IfsThinkingNeedsMadeSaidI CanRememberUsedEnemyWatchesPolicyGoldVoteTradeDollarsStatementsFedsSenatorsBankersChairmanCongressmanNo Confidence
Author:Rick Santelli
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“Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services.”

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Author:Ben Bernanke
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“We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.”

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Author:Eddie George
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“For in that universal call, Few bankers will to heaven be mounters; They'll cry, "Ye shops, upon us fall! Conceal and cover us, ye counters! When other hands the scales shall hold, And they, in men's and angels' sight Produced with all their bills and gold, 'Weigh'd in the balance and found light!'”

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Book:Historical tracts. Political poetry. Poems chiefly relating to Irish politics
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“To me the gold price takes the form of a very uncomplicated formula, and all you have to do is divide one by 'n.' And 'n', I'm glad you ask, 'n' is the world's trust in the institution of paper money and in the capacity of people like Ben Bernanke to manage it. So the smaller 'n', the bigger the price. One divided by a receding number is the definition of a bull market.”

PeopleWorldFormAsksNumbersPaperCapacityGoldBiggerInstitutionsDefinitionsGladManageDividedFormulasDividesBullsUncomplicatedPaper MoneyBull MarketsGold Price
Author:James Grant
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