Suspicion about Bundesbank's gold dealings with Fed is getting respectable

Section:

11:37 ET Friday, January 25, 2013

Dear Friend of GATA and Gold:

Interviewed today for market analysis by Daniela Cambone of Kitco News, Cameron Hanover Managing Partner Vince Lanci disparages the Bundesbank for "lying" as it changed positions on repatriating Germany's gold reserves. Lanci also speculates that the German gold may not be readily available because the Federal Reserve Bank of New York may have loaned it to bullion banks to facilitate the gold carry trade over the years.

Lanci doesn't claim to know anything in particular on the subject. What is remarkable about his interview with Kitco News is its showing that the Bundesbank's gold repatriation has made discussion of central bank gold loans respectable even as financial journalists and commentatators still are not prepared to put the compelling questions to the primary sources, the central banks themselves, as GATA long has been doing in litigation and through ordinary inquiries:

http://www.gata.org/node/9917

http://www.gata.org/node/11661

http://www.gata.org/node/11862

http://www.gata.org/node/11988

As is shown by the material posted at the first link above, the Federal Reserve grudgingly admitted to GATA in 2009 that it has secret gold swap arrangements with foreign banks. Thus swaps as well as loans should be part of any questioning of central bank gold policy.

And as was documented by the confidential International Monetary Fund report obtained and published by GATA last month, central banks loan and swap gold and conceal the transactions to facilitate their secret interventions in the gold market:

http://www.gata.org/node/12016

The Bundesbank isn't alone in changing its tune here. In an interview with Kitco News a month ago Lanci himself sounded much more skeptical of central bank gold market manipulation than he sounds today:

http://www.gata.org/node/12015

How much longer can this neglect of the obvious continue? If suspicion now can be expressed in respectable circles that central banks may have secret policies and practices with gold, maybe it won't be too much longer before a few financial journalists drop their assumption that central banks should not be questioned and begin attempting actual journalism. If that ever happens, it will be the end of central banking as we know it, as central banking's primary power arises from its never having to account for itself in ordinary democracy, a power conferred on it only by incompetent, cowardly, or dishonest financial journalism.

Video of the Kitco News interview with Lanci is 10 minutes long, with the gold discussion beginning at 4:15, and is posted here:

http://www.kitco.com/KitcoNewsVideo/index.html?v=13-01-24_Vince_Lanci_1

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.



ADVERTISEMENT

Fred Goldstein and Tim Murphy open All Pro Gold

All-Pro Gold, run by long-time GATA supporters Fred Goldstein and Tim Murphy, offers its services to GATA supporters and anyone else interested in precious metals. The company brokers a full line of precious metals and numismatic coins. It aims to inform prospective clients about the importance of the monetary metals as part of a diversified financial portfolio and to keep prospective clients current with market trends. All-Pro Gold has competitive pricing and ships promptly to clients so they may have physical possession. Learn more by e-mailing Fred@allprogold.com or Tim@allprogold.com or telephone 1-855-377-4653 or visit www.allprogold.com.



Join GATA here:

California Resource Investment Conference
Saturday-Sunday, February 23-24, 2013
Hyatt Regency Indian Wells Resort and Spa
Palm Desert, California
http://www.cambridgehouse.com/event/california-resource-investment-confe...

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16



ADVERTISEMENT

Opinion Around the World Is Changing
in Favor of Gold -- Find Out Why

When Deutschebank calls gold "good money" and paper "bad money". ...

http://www.gata.org/node/11765

When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ...

http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan...

When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ...

http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan...

When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ...

http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold...

When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ...

World opinion is changing in favor of gold.

How can you learn why and what it will mean to you?

Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard."

Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him."

To buy a copy of "The True Gold Standard," please visit:

http://www.thegoldstandardnow.com/publications/the-true-gold-standard