Deepcaster letter grasps the market-manipulating purpose of derivatives

1:45a ET Sunday, January 6, 2008

Dear Friend of GATA and Gold:

The latest Deepcaster letter, posted today at GoldSeek, pursues what your secretary/treasurer always has considered a dead end: the complaint that the Federal Reserve is a private bank outside the U.S. government.

Yes, the Fed has private banks as nominal stockholders, but the elected branches of the U.S. government, the president and the Senate, appoint the Fed's governors, and, along with the House, they write and repeal the legislation that determines the Fed's powers. The Fed surely is not as accountable as it should be to the rest of the government and the public, but then these days hardly any agency of the U.S. government is. And all these agencies could be held to account by a president and a Congress determined to do so.

No, the problem isn't that private banks control the Fed but rather that private financial interests come close to controlling the elected branches of government. The Fed is only part of the problem.

Nevertheless the new Deepcaster letter seems important for grasping the purpose of the explosion of derivatives: to manipulate markets in the directions considered most beneficial by the financial class as the money supply is exponentially expanded and sweeps over the world, distorting everything.

The new Deepcaster letter is headlined "Private Ownership of U.S. Fed Unsustainable Unless the Cartel Successfully Implements Its End Game," and you can find it at GoldSeek here:

http://news.goldseek.com/GoldSeek/1199648219.php

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

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