The scheme to suppress the price of gold is increasingly a matter of ordinary public record.
By Daniel at 25 August, 2008, 9:35 am
It was a matter of public record in January 1995, when the Federal Reserve’s general counsel, J. Virgil Mattingly, told the Federal Open Market Committee, according to the committee’s minutes, that the U.S. Treasury Department’s Exchange Stabilization Fund had undertaken “gold swaps.” Those minutes are still posted at the Fed’s Internet site:
www.federalreserve.gov……
It was a matter of public record in July 1998, six months before GATA was formed, when Federal Reserve Chairman Alan Greenspan told Congress: “Central banks stand ready to lease gold in increasing quantities should the price rise.” That is, Greenspan himself contradicted the usual central bank explanation for leasing gold — supposedly to earn a little interest on a dead asset — and admitted that gold leasing was all about suppressing the price. Greenspan’s admission is still posted at the Fed’s Internet site:
www.federalreserve.gov…
Incidentally, while we gold bugs love to cite Greenspan’s testimony from July 1998 because of its reference to gold leasing, that testimony was mainly about something else, for which it is far more important today. For with that testimony Greenspan persuaded Congress not to regulate the sort of financial derivatives that lately have devastated the world financial system.
The Washington Agreement on Gold, made by the European central banks in 1999, was another admission — no, a proclamation that central banks were working together to control the gold price. The central banks in the Washington Agreement claimed that, by restricting their gold sales and leasing, they meant to prevent the gold price from falling too hard. But even if you believed that explanation, it was still collusive intervention in the gold market. You can find the Washington Agreement at the World Gold Council’s Internet site:
www.reserveasset.gold…./
Barrick Gold, then the largest gold-mining company in the world, confessed to the gold price suppression scheme in U.S. District Court in New Orleans on February 28, 2003. On that date Barrick filed a motion to dismiss Blanchard & Co.’s anti-trust lawsuit against Barrick and its bullion banker, JPMorganChase, for rigging the gold market.
Barrick’s motion said that in borrowing gold from central banks and selling it, the company had become the agent of the central banks in the gold market, and, as the agent of the central banks, Barrick should share their sovereign immunity and be exempt from suit. Barrick’s confession to the gold price suppression scheme is posted here:
www.lemetropolecafe.co…
The Reserve Bank of Australia confessed to the gold price suppression scheme in its annual report for 2003. “Foreign currency reserve assets and gold,” the RBA’s report said, “are held primarily to support intervention in the foreign exchange market.” The RBA’s report is still posted on the Internet at the central bank’s site:
www.rba.gov.au/Publica…/…
Maybe the most brazen admission of the Western central bank scheme to suppress the gold price was made by the head of the monetary and economic department of the Bank for International Settlements, William S. White, in a speech to a BIS conference in Basel, Switzerland, in June 2005.
There are five main purposes of central bank cooperation, White announced, and one of them is “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.” White’s speech is posted at GATA’s Internet site here:
www.gata.org/node/4279
Last October the editor of the Freemarket Gold & Money Report and the founder of GoldMoney, James Turk, a longtime consultant to GATA who will be speaking at this conference, revealed some U.S. Treasury Department reports showing that since May last year the U.S. gold reserve has been mobilized for leasing to suppress the gold price. Those records are available on GATA’s Internet site:
www.gata.org/node/5637
In complaining about the manipulation of the gold market, GATA has not been called “conspiracy nuts” by everyone. We have gained a good deal of institutional support over the years.
First came Sprott Asset Management in Toronto, our main sponsor for this conference. In 2004 Sprott issued a comprehensive report supporting GATA. The report was written by this conference’s keynote speaker, Sprott’s chief investment strategist, John Embry, and his assistant, Andrew Hepburn, and was titled “Not Free, Not Fair — the Long-Term Manipulation of the Gold Price.” It remains available at the Sprott Internet site here:
www.sprott.com/pdf/pre……
Then in 2006 the Cheuvreux brokerage house of Credit Agricole, the major French bank, issued its own report confirming GATA’s findings of manipulation in the gold market. The Cheuvreux report was titled “Remonetization of Gold: Start Hoarding,” and you can find it at GATA’s Internet site:
www.gata.org/files/Che…
And in September last year Citigroup — yes, Citigroup, a pillar of the American financial establishment — joined the conspiracy nuts. It published a report titled “Gold: Riding the Reflationary Rescue,” written by its analysts John H. Hill and Graham Wark, declaring: “Gold undoubtedly faced headwinds this year from resurgent central bank selling, which was clearly timed to cap the gold price.” You can find the Citigroup report at GATA’s Internet site here:
www.gata.org/files/Cit…
Even those authorities who don’t want to run afoul of government institutions that with a few computer keystrokes can create virtually infinite amounts of money may have to admit the opportunity for central banks to manipulate the gold market. For it is widely acknowledged that annual world gold production is about 2,400 tonnes, that annual net world gold demand is about 3,400 tonnes, that gold production is falling as demand is rising, and that the thousand-tonne gap between production and net demand is being filled mainly by central bank dishoarding and leasing. What do you suppose the gold price would be if central banks were not supplying more than a quarter of annual demand?
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