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Gold Manipulation with GATA

April 3, 2013 - GATA, or the Gold Anti-Trust Action Committee, insists a gold cartel is suppressing metal prices. Chris Powell, treasurer, secretary, and director of GATA recently spoke to Gold Investing News.

In Powell’s view central banks want to support their currencies and control interest rates and government bond prices. To do this, they intervene in the gold market by selling their gold outright, by leasing it into the market through bullion banks, and by swapping it to other central banks. They also sell gold options and futures through the Bank of International Settlements and take many short positions to control price.

All the major Western central banks are participating or at the very least aware of what’s happening. In London, the gold pool in the 1960s brought about an open identification of banks working to suppress or manipulate the gold price. Powell believes the most recent and major banks working to control the price of gold are the U.S., the Bank of England, and the Bundesbank of Germany.

Powell believes the manipulation of the gold market is the destruction of all free markets and the destruction of transparency in government. He added, though, that certainly gold investors and mining companies and developing countries that rely on the production of commodities for their livelihood are terribly harmed.

Powell said when you lose your free markets, you lose your competitive economy as well as your democracy when such major government action is undertaken in secret.

Gold is a very important, if not the most important, determinant of the value of other financial instruments. GATA has collected much State Department memoranda, memos from intelligence agencies, as well as documentation from history about the importance the U.S. government put on controlling the gold price.

As an example, Powell brought up cables leaked through Wikileaks from the U.S. Embassy in Beijing, China to the State Department in Washington. They are translations into English of Chinese government news agencies reports about the Western gold price suppression scheme. Powell states the significance of these cables is that they show the Chinese government has long been aware of the Western gold price suppression scheme and the U.S. government knows the Chinese government knows.

Real values of gold on today’s market may be beyond calculation if GATA’s price suppression accusations turn out to be fact. The U.S. government will use every resource to bolster the U.S. dollar as the reserve currency of the world, but the effect on free market economies and on the gold market is not known.

Daily Updates Archive

Jonathan Monroe

Senior Staff Writer - Gold-Bullion.org

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