GATA Sues the Federal Reserve & Alleges Manipulation of the Gold Market
Today, GATA (the Gold Anti-Trust Action Committee) filed a lawsuit suing the Federal Reserve after its separate FOIA request was denied. For a decade, GATA has amassed enormous amounts of evidence that charges that the FED colludes with other central banks and bullion dealers to secretly suppress the market price of gold in order to make their own paper currencies look better. by Jake Towne, the Champion of the Constitution
(libertarian)
Thursday, December 31, 2009
Today, GATA (the Gold Anti-Trust Action Committee) filed a lawsuit suing the Federal Reserve after its separate FOIA request was denied. For a decade, GATA has amassed enormous amounts of evidence that charges that the FED colludes with other central banks and bullion dealers to secretly suppress the market price of gold in order to make their own paper currencies look better. The last time the central banks secretly manipulated the gold price was from 1961 to 1968, and ended with the violent collapse of the London Gold Pool and the bankruptcy of the post-WWII Bretton Woods global monetary system.
A year ago, Bloomberg L.P., a major financial news firm, filed a FOIA (Freedom of Information Request) from the Federal Reserve to disclose over $2 trillion in off-the-balance sheet emergency loans - funds that Congress and the President to this day have no idea how the nation's quasi-private central bank spent. Despite a momentary court ruling commanding the FED to release this information to the public, the FED has effectively evaded the motion.
The Federal Reserve controls the money supply of the United States and can create or destroy currency. It also controls interest rates. To learn more about the FED, read "The 'One Ring' of the Federal Reserve" or my campaign's FED plank.
Unknown to most Americans, gold is one of the world's major financial markets due to its role as an international currency and a refuge from the smoking-hot printing presses of the world's central banks. Turnover in 2007 exceeded $20 trillion USD on the London gold market alone, a figure which is larger than current US GDP. To learn more about the suppression of the gold price, read "The Summers Gold Price Suppression Scheme."
GATA's press release and links to the lawsuit can be found below. Here is a link to a video introduction of GATA. Here is an interview I gave earlier this year on the suppression of the gold market.
December 30, 2009
_________________________________________
2p ET Wednesday, December 30, 2009
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, 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:
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. The Fed has wrapped in secrecy much of its massive intervention in the markets over the last year, and Paul's legislation recently was approved by the U.S. House of Representatives.
The Fed claims that its gold swap records involve "trade secrets" exempt from disclosure under the U.S. Freedom of Information Act.
While GATA has produced many U.S. government records showing both open and surreptitious intervention in the gold market in recent decades (see http://www.gata.org/node/8052), 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 particularly. This deception and expropriation are what GATA was established in 1999 to expose and oppose.
Of course GATA's lawsuit against the Fed will take months if not years to resolve. We think we have a good chance of winning it in court. But we can win it outside court, and much sooner, if the suit can gain enough publicity from the financial news media and market analysts and prompt enough inquiry from them and from the public, the mining industry, and members of Congress.
So GATA urges its friends to publicize the suit and to urge journalists, market analysts, mining companies, and members of Congress to join us in seeking disclosure of the Fed's gold market intervention records. If enough clamor is directed at the Fed about these records, the gold price suppression scheme will lose its surreptitiousness and fail.
Unfortunately the World Gold Council, which each year collects tens of millions of dollars in membership fees from mining companies in the name of representing them and gold investors, refuses to question governments about their surreptitious interventions in the gold market. These interventions powerfully influence not only gold's price but the prices of government bonds and currencies, as well as interest rates generally and the value of all capital and labor in the world. There is no more important issue in the world economy than gold price suppression.
So what should have been the World Gold Council's work has fallen to GATA, a non-profit educational and civil rights organization that operates from month to month on donations from people who share its objective -- free and transparent markets in the precious metals and fair dealing among nations generally. As we prosecute our lawsuit against the Fed, we'll be grateful for your support. We promise to do something with it.
For information about supporting GATA, please visit:
GATA's lawsuit against the Fed is listed in federal court records as civil case No. 09-2436 ESH, the letters being the initials of the district court judge assigned to it, Ellen S. Huvelle.
The views expressed
in this article are those of Jake Towne, the Champion of the Constitution only and
do not represent the views of Nolan Chart, LLC or its affiliates.
Jake Towne, the Champion of the Constitution is solely responsible for the contents
of this article and is not an employee or otherwise affiliated
with Nolan Chart, LLC in his/her role as a columnist.
Hey Jake! Thanks for another great article! It is heartening to hear about an organization like GATA willing to take on the FED.
In other news, although I've tried valiantly to catch up with your Nolan Chart readership statistics this month, I just haven't been able to do it! You're still "The Man" at Nolan Chart, and my hat's off to you, friend! :)
Please keep up the great work, and Godspeed your righteous campaign for a seat in the house! :)
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The Federal Reserve controls the money supply of the United States and can create or destroy currency. It also controls interest rates. To learn more about the FED, read "