Frank Holmes: Central Banks are the New Cartel, Here's What it Means for Gold

By Investing News / March 20, 2011 / marketsanity.com / Article Link

Speaking candidly, Frank Holmes of US Global Investors described the central banks as a cartel that is working together to make regulatory decisions that impact the financial world.

The Investing News Network caught up with Holmes at the PDAC convention and asked about the US Federal Reserve's emergency interest rate cut.

"(Central banks) are all about synchronized taxation and regulation and using monetary policy to stimulate economic activity," he said. "The US is the largest player in that space." He believes negative interest rates in more countries will be bullish for gold.

Frank Holmes is the CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors.

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