The non-marginbearoperationmechanism of papergold, once established, is supposed to furtherstimulatemarketspeculationpreference, thus acceleratingmarket growth by multiple times.
Last week, SEC Chairman Christopher Cox told a Senate panel that the agency was not ignoring speculation that traders colluded to bring down Bear Stearns in a swift short-selling raid in mid-March.
Bernanke gets credit for not strangling the economic recovery in its cradle, but his sub zero money market rates bear sizable responsibility for the weak dollar, commodity speculation and the inherent inflationary impact all this entails.