Rob Kirby: Morgan Chase's gold derivatives soared as gold was floored

9:19p ET Tuesday, December 30, 3008

Dear Friend of GATA and Gold:

Correlation isn't necessarily causation, but anyone who believes that JPMorgan Chase does anything that isn't encouraged by the U.S. Treasury Department and Federal Reserve should pursue getting a conservator, as is suggested by GATA consultant Rob Kirby's review tonight of the U.S. Comptroller of the Currency's quarterly report on gold derivatives. Kirby, proprietor of Kirby Analytics in Toronto, finds that a huge increase in JPMorgan Chase's gold derivatives book in the third quarter this year just happened to coincide with a hammering of the gold price.

Of course as long as the U.S. government can contrive money into existence at will, without any oversight, and pass that money along to its favored agents in the markets, and as long as participants in the gold market accept paper promises of metal instead of taking delivery, the price of gold will be heavily weighed down by the price of imaginary gold.

Kirby's analysis is headlined "Government-Sanctioned Theft" and you can find it at GoldSeek here:

http://news.goldseek.com/GoldSeek/1230678365.php

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

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