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"Faced with the
choice between changing one's mind and proving that there is no need to do
so, almost everyone gets busy on the proof." … John Kenneth
Galbraith
"An error does not become truth by reason of multiplied
propagation, nor does truth become error because nobody sees it."
… Mahatma Gandhi
GO GATA!
This week marks GATA’s tenth
anniversary of our efforts to expose the manipulation of the gold market. In
another few weeks we will mark the tenth anniversary of my appearance on CNBC
(interviewed by Ron Insana) … the first and
last GATA appearance on the US TV media to date … for once they heard
what GATA had to say, we have been blackballed ever since. It also marks a
shameful period for the US
financial market press, which is now clamoring for
answers as to how we ever got in the financial market/banking mess we are
presently facing. For that answer they ought to first look at themselves and
their dismal way of kowtowing to the rich and powerful, and banning those who
are willing to challenge the Orwellian grip on what Americans are allowed to
hear and know.
America is facing quite a dichotomy at the moment. We are on the Inaugural
Eve of our first black President, with all the hopes and dreams he is
envisioning for our country. At the same time we are enduring the most
horrific financial crisis since the Great Depression.
President-elect Obama, a superb orator, is calling for Americans to
pull together to effect the CHANGE he called for in his campaign, and for all
of us to contribute individually to make that change happen. He has wisely
warned of the tough times ahead while going all-out to ready policies ASAP
which he believes are the correct way to remedy the growing economic problems
of the day.
He has also assembled an economic team of advisors which are acclaimed
and generally very highly regarded … including Robert Rubin, Lawrence
Summers, Timothy Geithner and Paul Volker.
Unfortunately for the GATA camp, they are the ALL-PROS of the gold price
suppression scheme. It is almost like our worst nightmare. On paper it
represents anything but change as far as US gold policy is concerned,
and has the potential to make our investment lives miserable for years to
come. After all…
*Robert Rubin coined the phrase "US Strong Dollar Policy,"
and flaunted the phrase. Rigging the price of gold was that policy’s
lynchpin. What else was there? Steve Forbes was on Fox News Saturday talking
about how important he believes it is for America to MAKE the dollar strong
again. He talked sheepishly about gold in vague terms and referred to Rubin.
Robert Rubin hatched the gold price suppression scheme while running
Goldman Sachs’ operations in London.
This was many years ago, when interest rates were very high (say from 6 to
12% in the US).
Rubin had Goldman Sachs borrowed gold from the central banks at about a 1%
interest rate. Then he sold the gold into the physical market, using the
proceeds to fund their basic operations. This was like FREE money, as long as
the price of gold did not rise to any sustained degree for any length of
time.
He continued his innovative money ploy as CEO of Goldman Sachs in New
York and then put his Strong Dollar Policy ploy on steroids as
Treasury Secretary under President Clinton.*Lawrence Summers followed Rubin as
Clinton’s Treasury Secretary, and who could be more qualified to
continue Rubin’s gold price suppression scheme than him? After all,
while at Harvard he co-authored a paper, "Gibson’s Paradox and The
Gold Standard." The bottom line of Summers’ analysis is that
"gold prices in a free market should move inversely to real interest
rates." Control gold and it will help to control interest rates.
Obama has designated Mr. Summers to be the Director of the U.S.
National Economic Council.
*Which brings us to Timothy Geithner, who is
President-elect Obama’s nominee to be U. S. Treasury Secretary.
Geithner was named president and chief executive
officer of the Federal Reserve Bank of New
York on November 17, 2003. In that capacity,
he serves as the Vice Chairman and a permanent member of the Federal Open
Market Committee, the group responsible for formulating the nation's monetary
policy.
Mr. Geithner joined the Department of
Treasury in 1988 and worked in three administrations for five Secretaries of
the Treasury in a variety of positions. He served as Under Secretary of the
Treasury for International Affairs from 1999 to 2001 under Secretaries Robert
Rubin and Lawrence Summers.
Geithner is also
happens to be a member of the Bank for International Settlements and since
2005 has been Chairman of the Committee on Payment and Settlement Systems.
You might want to see what The CPSS undertakes "at their own
discretion" as listed here:
http://www.bis.org/cpss/index.htmLike
outgoing Treasury Secretary Hank Paulson, Tim Geithner
is a graduate of Dartmouth
College. Talk about
knowledge of the gold price suppression scheme!
*And then there is the venerable Paul Volcker, who so effectively
brought down runaway inflation in the US, starting in 1980. His one
regret:
"Joint intervention in gold sales to prevent a steep rise in the
price of gold (in the 1970s), however, was not undertaken. That was a
mistake." … Former Federal Reserve Chairman Paul Volcker (writing
in his memoirs).
All-Pros? All-World is more like it when it comes to devotees of
suppressing the price of gold. Outside of Volcker, the other three are those
most responsible for making it happen in the first place.
So what’s the point? To get us all depressed over what lies
ahead? NO, just the opposite.
On December 18th, on GATA’s
behalf, I met with Bart Chilton, a CFTC commissioner who showed interest in
hearing what we had to say. There were three others from the CFTC in
attendance, including Elizabeth L. Ritter, Deputy General Counsel of that
organization.
From my MIDAS commentary later in that afternoon…
Bart listened intently and took notes, as did one of the others, and
asked numerous questions. Basically, I laid out our GATA presentation as I
explained in the Sunday Midas. I am not going to get into all the details of
what they said, as we will see what takes place in the months to come …
except to say that I chuckled when saying to them if they really wanted to
comprehend what the real gold price suppression scheme is all about, all they
have to do is go to their new proposed Chairman … at the right time. No
one knows what is going on better than he does.
(Insert- Gary Gensler was nominated that day
to be the new chairman of the CFTC. Gensler was
Undersecretary of the Treasury (1999-2001) and Assistant Secretary of the
Treasury (1997-1999).
Gensler spent
18 years at Goldman Sachs, one of the ringleaders of The Gold Cartel, making
partner when he was 30, becoming head of the company’s fixed income and
currency operations in Tokyo
by the mid-90’s.
As the Treasury Department's undersecretary for domestic finance in
the last two years of the Clinton
administration, Gensler found himself in the
position of overseeing policies in the areas of U.S. financial markets, debt
management, financial services, and community development. Gensler advocated the passage of the Commodity Futures
Modernization Act of 2000, which exempted credit default swaps and other
derivatives from regulation.
Could The Gold Cartel have recruited a better ALL-PRO/ALL-WORLD man
for their team? It is also important to keep in mind that chairman of the
CFTC is one of the four members of the President’s Working Group on
Financial Markets. Now why does a bureaucrat need to participate with the
President and US Treasury Secretary on the markets? I thought the CFTC was
supposed to regulate them, not be a part of policy.)
I did not hold back and said the main culprit of The Gold Cartel was
our own government (their own boss), who has been in league with bullion
banks like JP Morgan Chase, and others, to suit their own hidden
agenda….
I was very impressed with Bart Chilton (very sharp guy) and he
mentioned that my trip to D.C. would not be in vain.
***
What I stressed most at the meeting was that the gold price
suppression scheme would not survive another four years, over the length of
Obama’s elected term … and presented lengthy documentation to
prove my point … meaning The Gold Cartel would run out of enough
available central bank gold to meet a growing annual supply/demand deficit
over the next four years. The bottom line was that Obama could stop the gold
price manipulation scheme now and allow the price of gold to trade freely,
thereby letting the Bush Administration be the fall guy; or he could let his
economic team persuade him to carry on the status quo, in which case the
price of gold will blow sky high in the years ahead, and he would have to
take the blame for the resulting ramifications … especially when the
gold scandal becomes a huge public ordeal.
What better way for Obama himself to understand the true gold
situation than to ask his top economic advisors what the real deal is. If
GATA is correct, and we have been on target for years, the U.S. has a
BIG problem when it comes to its gold reserves (how much of it has been
encumbered and is therefore GONE?) That is an essay unto itself, with many
variables to be discussed, and for another time. All Obama has to do is get
the five above-mentioned gentlemen in a room and get right to the
nitty-gritty. They can start with the extensive package I handed to Bart
Chilton, who is a member of the Obama transition team, and someone who once
worked for Tom Daschle, formerly the Democratic leader in the Senate for ten
years, and is now Obama’s Secretary of Health
and Human Services nominee.
What Bart Chilton does with what I gave to him is his business, but
since he told me my visit would not be in vain, I assume GATA’s
extensive presentation did not go into the dumpster.
Meanwhile, in GATA’s tenth anniversary
year, we are making our own call for CHANGE, and are pressing on. Obama has
stated over and over again he wants THE PEOPLE to be represented and asked us
to give him input. Who has more pertinent input go get to him than our camp?
Therefore, we are asking everyone interested in a free gold market to make a renewed
effort to further disseminate our decade’s worth of evidence of gold
market manipulation into the public domain by contacting the financial market
media and to others in the Obama transition team (if you have any contacts).
I know how frustrating it has been to get the jaded financial market
media to listen to, and then acknowledge, what we have to say, but that was
yesterday and perhaps times have changed due to the growing financial market
crisis, and yearning to understand how we got here. After all President-elect
Obama is urging for "government accountability" and
"transparency."
This call to arms has been instigated by the dramatic and sudden
discovery of an important document buried in the Federal Reserve’s
archives by writer and researcher Elaine Supkis.
This document is posted on her blog at:
http://emsnews2.wordpress.com/2009/01/15/1961-top-
secret-fed-reserve-gold-exchange-report/
The document, which is marked "Confidential," is from the
papers of William McChesney Martin, Jr., and this
collection is held by the Missouri Historical Society. A scanned image of the
original document is posted by the Federal Reserve Bank of St. Louis at the following link:
http://fraser.stlouisfed.org/docs/histor
ical/martin/23_06_19610405.pdf
Most importantly, GATA consultant James Turk has brilliantly dissected
this document in an essay titled, "The Federal Reserve’s Blueprint
for Market Intervention," which has been served at The Matisse Table and
at www.GATA.org…
http://www.gata.org/node/7095The title of this confidential report is:
Confidential - - (F.R.)
U.S. Foreign Exchange Operations: Needs and Methods
James Turk notes:
In short, it lays out what the Treasury and Federal Reserve needed to
do in order to begin intervening in the foreign exchange markets, but there
is even more. This document plainly shows what happens when government
operates behind closed doors. It also makes clear the motivations of the
operators of dollar policy long described by the Gold Anti-Trust Action
Committee and its supporters -- namely, that the government would pursue
intervention rather than a policy of free markets unfettered by government
activity. The run to redeem dollars for gold had put the government at a
crossroads, forcing it to make a decision about the future course of dollar
policy. This paper describes what the government would need to do by choosing
the interventionist alternative.
This document provides primary, original source supporting evidence
that GATA has been right all along.
I have long hoped that a "confidential" document like this
one would eventually emerge. There are no doubt countless more like it, as
evidenced by the Federal Reserve's and the Treasury's refusal to provide all
the documents requested by GATA under its recent Freedom of Information Act
request. Maybe those documents will eventually see the light of day too.
***
James makes a key point regarding one of the assertions of this
report…
"The basic purpose of such operations would be to maintain
confidence in the dollar."
James T notes…
"This statement confirms one of the basic planks of much of the
work by me and others that has been published by GATA over the years. The
efforts to cap the gold price have one aim. It is to make the dollar look
worthy of being the world's reserve currency when in fact it is not."
***
This significant report was written some 48 years ago, yet could have
been written at any time in the past 10 years during which GATA has
discovered blatant manipulation of the prices of gold and silver … as
well as noted ludicrous counterintuitive dollar market action, which has been
most noticeable in recent days, as our hysterical financial crisis in the US
intensifies.
James Turk’s title says it all: it is a blueprint for the gold
price and financial market manipulation so prevalent now. Ironically, there
is a common misconception out there that the US is in the financial market
mess it is in today because of too much deregulation. To some extent that is
very true, as the likes of Secretary Paulson and Gary Gensler
urged Congress to allow the US
investment banks to increase the allowable debt/credit on their books from
12:1 to 40:1.
Yet, just as big a problem was the secretive interference in the US financial
markets which allowed credit and risk issues to go completely out of control
in America … meaning too much secretive market manipulation … and
in a hidden way, too much regulation. Had the gold market not been
artificially suppressed and allowed to trade freely, the price would have soared these past years, interest rates would have risen
dramatically, and there would have not been the reckless investment bank
shenanigans that have put our financial system in such peril. Simplistically,
it is generally acknowledged that if gold had been allowed to keep up with
inflation for the past 28 years, the price would be over $2,000+ per ounce.
The GATA camp knows why it is not there RIGHT NOW!
Had the Plunge Protection Team (Working Group on Financial Markets)
not stepped up their constant Hail Mary play activity after 9/11 to
drive the DOW mysteriously higher in the last hour of trading on the New York
Stock Exchange, the market probably would have broken down much earlier than
it did and given the investing public more of a clue that something was
wrong, instead of the misleading Stepford
Wives drill that "Everything is fine."
What is profoundly disturbing about the discovery of this confidential
document is it fits in with much grander conspiracy theories than where GATA
is coming from. Since this document, based on what has happened, really is a
blueprint for market manipulation since 1961, it feeds into the worst fears
of those who are constantly on the case about the Bilderbergers,
Council on Foreign Relations, Trilateral Commission, and so on. This document
to William McChesney Martin, Jr. is EXACTLY what I
have been seeing and reporting over the past decade … not that much
different than those who pointed out the Madoff Ponzi scheme during the same period of time. To learn
that this market deception and manipulation was conceived when I was a
freshman in high school is almost beyond comprehension, especially since the
Wall Street crowd hasn’t permitted a serious discussion about it ALL
THIS TIME! Nor has our government allowed a true independent audit of US gold
reserves since the Eisenhower Administration in 1955.
It also feeds right into the scary notion revealed in a famed
President Clinton comment that goes something like … "I
didn’t realize I wouldn’t be in control here when I became
President." … meaning there were far more powerful background
forces pulling the strings and on how he must operate.
GATA doesn’t want to go there, but based on this new discovery,
it certainly opens up further comments for fair game, even for some of GATA’s Board of Directors. Adrian Douglas (an oil
industry consultant who is presently off to Angola) sent the following email
to James Turk:
James,
Congratulations. This was an excellent analysis. What a stunning document!
Real dynamite.
It got me thinking as to whether the heist they have pulled is bigger
than we think. The BIS as we know, and as mentioned in this memo, is the
organization that allows for cooperation behind the scenes of the Central banks.
We know they went private to prevent any need for public disclosure seeding
the opportunity for Reg Howe’s lawsuit. We
have plenty of evidence that Central Bank gold holdings have been depleted.
We keep saying that the gold is "gone". But what do we mean by
"the gold is gone"? Gold is not like crude oil, expensive wine, even silver… it does not get consumed. It has
not "gone"; it has changed ownership. The Central Banks leased out
gold to the bullion banks. Now who did the the
bullion banks sell the gold to? We know that the bullion banks can’t
get the gold back. If the central banks ask for the gold back the bullion
banks can declare bankruptcy or settle in cash. How convenient! The Central
bank gold has gone into someone else’s hands that are unknown and the
loss will eventually be written off. We know that Central Banks are owned or
controlled by some of the richest families and/or entities in the world. Is
it possible that these "bankers" can benefit from a fiat Ponzi scheme while it can be maintained AND still end up
with the gold in which case they can benefit from a return to a gold standard
and when the gold standard eventually gets abused and abandoned in the future
they will play the whole fiat game over again? It would certainly require
cooperation between central banks to pull off such a heist.
It would be great to have the whole world sitting in a room and ask
those who own more than 10 million ozs of gold to
raise their hands!
The crime may be more than manipulating the price of gold to "defend
the US dollar" and concealing the evidence from the public. The Cartel
may well have aided and abetted embezzlement of the citizens’ gold of
the Western world. And who ever has it, they bought it perfectly legally from
the bullion banks with fiat currency.
This seems to make sense because Central bankers and the
"elitists" (Rockefellers, Rothchilds, Morgans, Mellons, Carnegies, Vanderbilts etc etc) are not stupid. They must know gold is real money.
They can study monetary history too. The fiat money game in this context is a
decoy for the theft of sovereign gold.
It is not without precedent, the great inflationist, John Law, was
arrested escaping with a coach loaded with gold and silver!
Is this a bridge too far in conspiracy theory?
Cheers
Adrian
Which provoked this reply from another GATA Board member, Catherine
Austin Fitts (Assistant Secretary of Housing/Federal Housing Commissioner at the United States Department of
Housing and Urban Development in the
first Bush Administration)…
Adrian:
My hypothesis since 2001 is that the NWO is shifting assets out of sovereign
governments and shifting liabilities back in. The goal is to reengineer
global governance into the hands of private banks and corporations in a
manner that dramatically centralizes control. This is why the creation of a
genetically controlled seed and food supply, etc.
To achieve such centralization requires the centralization of the gold and
silver stores. Whoever has the gold has the most powerful financial asset. So
if you want a new centralized currency, you need a monopoly on gold and
silver. I think part of the end game is to shift back to something involving
some kind of gold standard.
If you use fiat currency to acquire ownership and control of all the real
assets on the planet, then you need a gold standard to make sure you keep
them.
So, it would not surprise me to see G8 and GATA start to move into alignment,
strange as it may sound.
Catherine
Neither opinions are official GATA viewpoints, but they are
intriguing, eye-opening and worth pondering.
When I met with Bart Chilton I said GATA’s
high command is just a bunch of proud Americans who have stumbled across a
profoundly disturbing situation. I showed the four CFTC individuals in
attendance GATA’s full-page color ad in the Wall Street Journal on January 31, 2008.
It was titled, "Anybody Seen Our Gold?" …
http://www.gata.org/node/wallstreetjournalSome of you are very familiar with this copy in the ad…
"The objective of this manipulation is to conceal the
mismanagement of the US dollar so that it might retain its function as the
world’s reserve currency. But to suppress the price of gold is to
disable the barometer of the international financial system so that all
markets may be more easily manipulated. This manipulation has been a primary
cause of the catastrophic excesses in the markets that now threaten the whole
world."
… and then…
"Surreptitious market manipulation by government is leading the
world to disaster."
The DOW was a little below 13,000 at the time. I mean how right could
we have been? Yet the US
financial market press completely ignored this very visible ad. There was not
even a query of what we were talking about and why we would spend $264,400 to
make such a warning.
So now we are fast forwarding virtually a year later and the US financial
markets and economy ARE in chaos. If soon to be President Obama really wants
CHANGE and TRUTH, we will give him critical input on one way he can effect
what he says he is looking to do.
To increase the likelihood that what GATA has discovered
actually reaches him, GATA is asking all who read this, and agree with GATA,
to make some small effort to get this commentary to the financial market
media in the world, especially the US financial market press.
That means contacting writers and media outlets such as the Wall
Street Journal, Washington Post, Washington Times, New York Times, Forbes,
Fortune, CNBC, CNN, Reuters, Bloomberg, the AP, Fox News, Newsweek, Time,
etc. In addition, sending this Tenth Anniversary GATA commentary to
widely-followed internet bloggers would also be helpful; perhaps stirring up
so many out there who are searching for the reasons behind what has happened
financially and economically in the US and why.
In such troubling times, Obama’s coming Presidency has given
optimism and hope to many. For that to occur there must
be true change, the desires for which have swept him into office.
President-elect had some army. And GATA has its army.
Please take a little time and make just a small effort to help Obama
help himself, even if our issue is the last one he is thinking about at the
moment. Funnily enough, it ought to be one of the first, as it is one of the
most prominent ones which got us into the financial market/economic nightmare
we are in today. After all, it is many of the same bullion banks/investment
houses our government is bailing out that were so instrumental in the gold
price suppression scheme. Our mission is to let him know, via all sources
possible, what the heck has happened and continues to go on.
Bill Murphy
Editor
Lemetropolecafe.com
Chairman
Gold Anti-Trust Action Committee
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