Gold Suppression by Central Banks - a beautiful summary and must read!
This is fantastic - a complete summary of the gold suppression scheme with all the key reference documents - a must read!!!
GATA: "As Gold Price Suppression Grows More Brazen, Maybe Asia Will Defeat It"
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Submitted by Tyler Durden on 09/21/2011 10:55 -0400
Remarks By Chris Powell
Secretary/Treasurer, Gold Anti-Trust Action Committee
18th CLSA Investors' Forum
Grand Hyatt Hotel, Hong Kong
Wednesday, September 21, 2011
As gold price suppression grows more brazen, maybe Asia will defeat it
The speaker following me, George Clooney, will be able to tell you what it's like to be handsome, talented, rich, and famous. I could tell you what it's like not to be. But instead the conference has asked me to talk about gold, which at least might make you rich, or help you preserve some of whatever you've got.
This opportunity is full of risk, because the gold market long has been manipulated by Western central banks to restrain the gold price. The Western central banks are slowly losing control of the market but they are not giving up easily.
Why do Western central banks manipulate the gold market?
The gold market is manipulated because, despite Federal Reserve Chairman Ben Bernanke's insistence to Congress a few weeks ago that gold is not money, just "tradition," gold is indeed a currency that competes brutally with government-issued currencies and helps determine not only the value of those currencies but also interest rates and the value of government bonds.
Gold's competition with currencies was documented in an academic study published in June 1988 in the Journal of Political Economy written by Harvard economics professor Lawrence Summers and University of Michigan economics professor Robert Barsky. Summers and Barsky found that, in a free market, there is an inverse relationship between the price of gold and the real rate of interest:
http://www.gata.org/files/gibson.pdf
The Summers and Barsky study implied that if governments could get control of the gold price, they could also get control of interest rates. Of course Summers went on to become deputy U.S. treasury secretary and then treasury secretary, positions in which skill in rigging markets is a great asset.
Exactly how is the gold price rigged, and by whom?
It has been rigged openly through outright sales of gold by central banks, as it was rigged openly in the 1960s by the group of Western central banks that operated what became known as the London gold pool, and, following the gold pool's collapse in 1968, rigged both openly and surreptitiously through central bank sales and lending of gold and by bullion bank short positions and derivatives that are supported by access to Western central bank gold.
The Gold Anti-Trust Action Committee has documented this rigging from official sources whose admissions are compiled in the "Documentation" section of our Internet site:
http://www.gata.org/taxonomy/term/21
That is, the gold price suppression scheme is not what it is sometimes disparaged as being, "conspiracy theory." Rather it is a matter of the most extensive public record -- at least for those who want to look at the record.
These records include:
-- Public statements by Federal Reserve officials, officials of other Western central banks, and the International Monetary Fund.
-- Declassified Central Intelligence Agency memoranda.
-- The minutes of the Federal Reserve’s Federal Open Market Committee.
-- Filings and statements in three gold price suppression lawsuits in the United States; one brought by my committee’s consultant, Reginald H. Howe, against central banks and bullion banks in U.S. District Court in Boston in 2001; another brought by Blanchard Coin and Bullion against Barrick Gold Corp. in U.S. District Court in New Orleans in 2003; and the third brought two years ago by my organization against the Federal Reserve in U.S. District Court for the District of Columbia.
-- These records also include declassified or leaked U.S. State Department cables.
-- Statistical studies done by market researchers like Adrian Douglas in the United States and Dimitri Speck in Germany.
-- And testimony at the hearing about the precious metals markets that was held on March 25, 2010, by the U.S. Commodity Futures Trading Commission. That hearing produced testimony that led to the filing of a massive silver price rigging lawsuit against J.P. Morgan Chase. The revised complaint against J.P. Morgan Chase, filed last week in U.S. District Court for the Southern District of New York, contains pages and pages of extraordinarily specific detail, identifying trades, traders, and dates:
http://www.gata.org/node/10448
An especially incriminating document remains on the Internet site of the Federal Reserve Bank of St. Louis. It is a detailed plan from April 1961, discovered in the archive of the Fed’s longest-serving chairman, William McChesney Martin, for surreptitiously rigging the currency and gold markets worldwide, a plan that went so far as to propose the alteration, falsification, or withdrawal from publication of U.S. government financial reports that otherwise would be incriminating:
http://fraser.stlouisfed.org/docs/historical/martin/23_06_19610405.pdf
And:
http://www.gata.org/files/FedBlueprintForIntervention.pdf
My organization possesses and has posted these records on the Internet, and I would welcome an opportunity to examine and discuss them in detail, document by document, with any doubters in a public forum.
But the official record of gold price suppression is not merely historical. Thanks to my organization's work, it is very contemporary as well.
much more with key references at: http://www.zerohedge.com/news/gata-g...will-defeat-it
