MarketWatch can report market-rigging rumor, so why not market-rigging fact?

by Chris Powell, GATA Dear Friend of GATA and Gold: MarketWatch tonight produces a true wonder of financial journalism. It’s a story acknowledging a rumor about “conspiracy theory” involving central banks, a rumor that MarketWatch blithely declines to investigate by questioning any central banker. The rumor — speculation, really — is that, far from being a failure, the G-20 conference in Shanghai in February reached a secret agreement to reduce the U.S. dollar’s value in the currency markets. It’s plausible, but note how the MarketWatch report takes for granted that central banks are willing and able to rig markets in secret, how the report assumes that this is the natural order of things and not even worth questioning. So why do MarketWatch and all other mainstream financial news organizations refuse to report that central banks long have been surreptitiously rigging the gold market as the prerequisite for all their market rigging, even though documentation and admissions of gold market rigging abound?: http://www.gata.org/node/14839 That is, if rumor and speculation are reportable, why not fact as well? The MarketWatch report is excerpted below. CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. [email protected] * * * Did Central Bankers Make a Secret Deal to Drive Markets? This Rumor Says Yes By Sarah Sjolin MarketWatch.com, New York Saturday, March 19, 2016 The dollar has taken a surprisingly big stumble in recent weeks, prompting traders to ask: What’s really driving the selloff? The answer some are coming up with smacks of conspiracy theory. Rumors are flourishing that global policy makers made a secret deal at the G-20 meeting in Shanghai late last month. This “Shanghai Accord” to weaken the greenback was aimed at calming the financial markets, which had gotten off to an awful start to the new year, according to the chatter. No foreign-exchange pact was announced at the February meeting of central bankers and policy makers from the 20 largest economies. That hasn’t stopped speculation that a plan of action was whipped up behind closed doors, as its supposed effects are beginning to emerge now: The greenback has shaved off more than 3 percent since the gathering, sparking a rally in stocks, emerging market assets, and commodities. The dollar has taken a surprisingly big stumble in recent weeks, prompting traders to ask: What’s really driving the selloff? The answer some are coming up with smacks of conspiracy theory. Rumors are flourishing that global policy makers made a secret deal at the G-20 meeting in Shanghai late last month. This “Shanghai Accord” to weaken the greenback was aimed at calming the financial markets, which had gotten off to an awful start to the new year, according to the chatter. No foreign-exchange pact was announced at the February meeting of central bankers and policy makers from the 20 largest economies. That hasn’t stopped speculation that a plan of action was whipped up behind closed doors, as its supposed effects are beginning to emerge now: The greenback has shaved off more than 3 percent since the gathering, sparking a rally in stocks, emerging market assets, and commodities. “To any conspiracy theorists, it’s all become quite clear,” said Chris Weston, chief market strategist at IG, in a note Friday. “There is a global coordinated central bank effort to weaken the [dollar] in play, which in turn has led to a massive de-risking in equity and credit markets.” … Plus, there is something of a precedent: The Plaza Accord. In 1985 the finance ministers from the U.S., France, West Germany, Japan, and the U.K. made a deal to jointly guide the dollar lower against the yen and the German mark. The action was meant to help jump-start the U.S. economy by reversing an extended run-up by the greenback. … Joachim Fels, global economic adviser at bond-trading firm PIMCO, told Bloomberg he also suspects central bankers have coordinated their actions to prevent the dollar from growing stronger. “There seems to be some kind of tacit Shanghai Accord in place,” he told the news outlet. “The agreement is to roughly stabilize the dollar versus the major currencies through appropriate monetary policy action, not through intervention.” …

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