GATA sues Fed to disclose gold market intervention records

GATA sues Fed to disclose gold market intervention records

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, (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:

www.gata.org...

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.

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As much as I dislike the fed it doesn't seem right that a world governing body can exert it's judicial reach into the hart of the U.S monetary establishment . I liked it much better when Ron Paul along with a grass roots movement was fighting the cause .

But hey if world government has to bite someone in the but it might as well be an institute that that wanted this governing system in the first place .

It will be interesting to see how this plays out , even if it could take years to settle this matter .

The issue is that the Federal Reserve is not a US government organization. It is a private quazi-NGO comprised of international banks

The Fed authorizes the US treasury to print US dollars in exchange for Treasury notes(T-Bills) which are promisary interest laden securities

The gold market exisits out side the Fed/ US Treasury structure.

GATA was designed to protect the gold market from outside influence

So this action is just due process becuase it is in the Fed's best interests to surpress the price of gold and the influence of the gold market as an alternative method of trading international wealth

Many have speculated that the Federal Reserve shorts gold futures in a large enough quantities to keep gold prices artificially low

TeWhile GATA has produced many U.S. government records showing both open and surreptitious intervention in the gold market in recent decades (see www.gata.org...), 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 particularlyxt

If it's proven that the Fed has done wrong then just what can be expected from the court hearing ?

What , if anything can be expected to happen to the gold market if it's proven that the Fed has done wrong ?

Originally posted by Max_TO
If it's proven that the Fed has done wrong then just what can be expected from the court hearing ?

What , if anything can be expected to happen to the gold market if it's proven that the Fed has done wrong ?

There is no need for the fed and strictly speaking, it should be abolished. Andrew Jackson abolished an earlier incarnation of the US Central bank with the following words:

"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the grace of the Eternal God, will rout you out!"

We got along just fine without a Fed until they created the current one in 1913, sneaking the vote through Congress when almost all Congresssmen were on Christmas vacation and the Capitol session was almost empty.

It's time for another Andrew Jackson. Unfortunately our current leader seems to lack the fortitutde for such a bold move.

As to the price of gold, it will obviously go up further if this move succedes, or if the Fed loses its ability to suppress the price in some way. Another issue to keep in mind...likely a lot of the "gold" being traded electronically on commmodities markets around the world doesn't even exist. If/when this is more decisively revealed, the price of PHYSICAL goal will soar even further as people realize the supply is even lower than currently believed.


[edit on 1/3/10 by silent thunder]

A bit of irony that the GATA Fed lawsuit appeared in an Argentina news article today....

Buenos Aires Herald

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The weekly COT report was released today and while there was a bullish reduction in Gold short interest , the real news is the huge increase in commercial US Dollar shorts.

From 12,172 short contracts on November 30..to..46,793 contracts at the end of December (29).

Looks to me like they're getting ready to kick the pins out from underneath the dollar rally.