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Dear Friend
of GATA and Gold:
GATA's position is that quite a few
insiders have testified to the gold price suppression scheme and GATA has
been publicizing their admissions for years, particularly:
January 1995: 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." Central banks have only one purpose for "gold
swaps": market intervention. The January 1995 FOMC minutes with
Mattingly's statement are posted at the Fed's Internet site here:
http://www.federalreserve.gov/monetarypolicy/files/FOMC19950201meeting.p...
July 1998:
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 about the gold price suppression scheme is
posted at the Fed's Internet site here:
http://www.federalreserve.gov/boarddocs/testi...98/19980724.htm
September 1999: The Washington Agreement on Gold, made by the European central banks
in 1999, was a proclamation that Western 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. The
Washington Agreement can be found at the World Gold Council's Internet site
here:
http://www.reserveasset.gold.org/central_b...reements/cbga1/
February 2003: Barrick Gold confessed to the gold price suppression scheme in U.S.
District Court in New Orleans when it 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 can be found here:
http://www.lemetropolecafe.com/img2003/...motiontodis.pdf
September 2003: 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 posted
at the central bank's site here:
http://www.rba.gov.au/PublicationsAn...ts/2003/Pdf/...
June 2005:
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.
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:
http://www.gata.org/node/4279
Further, government manipulation of the
gold price is only the unanimously accepted history of the world prior to the
period about which GATA is complaining. That's what the gold standard was
about, fixing the price of gold to certain amounts of government currencies.
That's what the London Gold Pool was about, the effort of the U.S. and
British governments, abandoned in 1968 amid extraordinary demand for the
metal, to hold the gold price at $35 per ounce.
Sprott Asset Management:
http://www.sprott.com/pdf/pressrelease/press_release_not_free_not_fair.p...
The Cheuvreux brokerage house of the
French bank Credit Agricole:
http://www.gata.org/files/CheuvreuxGoldReport.pdf
And Citigroup:
http://www.gata.org/files/CitigroupGoldReport092107.pdf
There's a lot of admission and
documentation above, which, it seems, is why Shedlock, Kitco's Jon Nadler,
the World Gold Council, and others who disparage complaints of manipulation
of the gold market refuse to debate the issue, where they might be compelled
to address the evidence specifically. But GATA remains ready, any time these
folks or others on their side work up the honesty and courage.
Chris Powell
Secretary / Treasurer
Gold Anti-Trust Action
Committee
www.GATA.org
GATA is a
civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal
Revenue Code. Its e-mail dispatches are free, and you can subscribe at www.GATA.org. GATA is grateful for financial
contributions, which are federally tax-deductible in the United States.
 
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