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Dear Friend of GATA and Gold:
GATA today brought suit against the U.S. Federal Reserve Board, seeking a
court order for disclosure of the central bank's records of its surreptitious
market intervention to suppress the monetary metal's price.
The suit was filed in U.S. District Court for the District of Columbia
and targets Fed records involving gold swaps, exchanges of gold with foreign
financial institutions. In a letter dated September 17 this year to GATA's
law firm, William J. Olson P.C. of Vienna, Virginia, (http://www.lawandfreedom.com)
Fed Board of Governors member Kevin M. Warsh acknowledged that the Fed has
gold swap agreements with foreign banks but insisted that such documents
remain secret:
http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf
The lawsuit follows two years of GATA's efforts to obtain from the
Federal Reserve and the U.S. Treasury Department a candid accounting of the
U.S. government's involvement in the gold market. These efforts parallel
those of U.S. Rep. Ron Paul, R-Texas, who long has been proposing legislation
to audit the Fed. The Fed has wrapped in secrecy much of its massive
intervention in the markets over the last year, and Paul's legislation
recently was approved by the U.S. House of Representatives.
The Fed claims that its gold swap records involve "trade
secrets" exempt from disclosure under the U.S. Freedom of Information
Act.
While GATA has produced many U.S. government records showing both open
and surreptitious intervention in the gold market in recent decades (see http://www.gata.org/node/8052),
Fed Governor Warsh's letter is confirmation that the government is
surreptitiously operating in the gold market in the present as well.
That intervention constitutes a huge deception of financial markets as well
as expropriation of precious metals miners and investors particularly. This
deception and expropriation are what GATA was established in 1999 to expose
and oppose.
Of course GATA's lawsuit against the Fed will take months if not years to
resolve. We think we have a good chance of winning it in court. But we can
win it outside court, and much sooner, if the suit can gain
enough publicity from the financial news media and market analysts and prompt
enough inquiry from them and from the public, the mining industry, and
members of Congress.
So GATA urges its friends to publicize the suit and to urge journalists,
market analysts, mining companies, and members of Congress to join us in
seeking disclosure of the Fed's gold market intervention records. If enough
clamor is directed at the Fed about these records, the gold price suppression
scheme will lose its surreptitiousness and fail.
Unfortunately the World Gold Council, which each year collects tens of
millions of dollars in membership fees from mining companies in the name of
representing them and gold investors, refuses to question governments about
their surreptitious interventions in the gold market. These interventions
powerfully influence not only gold's price but the prices of government bonds
and currencies, as well as interest rates generally and the value of all
capital and labor in the world. There is no more important issue in the world
economy than gold price suppression.
So what should have been the World Gold Council's work has fallen to
GATA, a non-profit educational and civil rights organization that operates
from month to month on donations from people who share its objective -- free
and transparent markets in the precious metals and fair dealing among nations
generally. As we prosecute our lawsuit against the Fed, we'll be grateful for
your support. We promise to do something with it.
For information about supporting GATA, please visit:
http://www.gata.org/node/16
GATA's lawsuit against the Fed is listed in federal court records as
civil case No. 09-2436 ESH, the letters being the initials of the district
court judge assigned to it, Ellen S. Huvelle.
You can find the lawsuit here:
http://www.gata.org/files/GATALawsuitVs.Fed-12-30-2009.pdf
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