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According to GATA on a release yesterday, the Fed is indeed admitting hiding gold swap arrangements. Wow, if this is true, what happened to the audit the Fed campaign?
This is how GATA starts its release:
"Tuesday, September 22, 2009
Dear Friend of GATA and Gold:
The Federal Reserve System has disclosed to GATA that it has gold swap arrangements with foreign banks that it does not want the public to know about.
The disclosure contradicts denials provided by the Fed to GATA in 2001 and suggests that the Fed is indeed very much involved in the surreptitious international central bank manipulation of the gold price particularly and the currency markets generally."
GATA's opinion is based on a paragraph found in a response letter to GATA's lawyer William J. Olson from the FED denying GATA's administrative appeal of a freedom-of-information request to the Fed for information about gold swaps. These are transactions in which monetary gold is temporarily exchanged between central banks or between central banks and bullion banks.
The letter was dated September 17 and was written by Fed Board member Fed's position that the gold swap records sought by GATA are exempt from disclosure under the U.S. Freedom of Information Act. The letter says:
"In connection with your appeal, I have confirmed that the information withheld under Exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of Exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you."
The letter is here in its entirety.
GATA conclusion based on the above paraghraph and says it is now launching an appeal.
6 comments:
I had speculated in an e-mail to Ted Butler several months ago that it was possible that the Govt (via Fed, Treasury, with the concurrence of the Administration) would "allow" the massive "short" manipulation of the largest banking institutions (those that received massive bailout dollars) in the gold and silver markets to do everything they can to cap market prices for gold and silver. Very simple reason. If market forces were allowed to take these precious metals to their fair values, the world would know that the economies of the world are in real trouble. It is a psychological game that is being played, the same manipulative game that has gone on in American capitalism for years and years. America and the world deserve better...how about honesty, integrity and transparency. I am appalled but not surprised at this finding of Fed non-disclosure...Now...WHAT DO WE DO ABOUT IT???
what do we do about it??? buy gold and silver of course...
I concur that everyone who can should buy some physical gold and silver. However, because the total global market for gold is relatively small ($1.4T, actually less now since gold dropped, pls. see my other post on this last week or so) compared to the money that is being printed, gold can still be easily manipulated. It should go higher, but it does not and it could be supressed much longer "than we remain solvent".
I am preparing a post on safe ways to invets in gold BTW, it is a complicated subject.
Thank you very much for the comments.
cnbc video ...
http://www.silverbearcafe.com/private/09.09/yikes.html
Thank you breezer. I just realized the video you posted was the one with Pickards. Great video indeed.
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