Fed surreptitiously buys half of last week's 7-year bond auction

9:41p ET Thursday, August 6, 2009

Dear Friend of GATA and Gold:

Financial market blogger Chris Martenson today reported that the Federal Reserve this week surreptitiously bought almost half the seven-year U.S. Treasury bonds that were auctioned last week. While this is the sort of debt monetization that Fed officials said would not happen, it is probably not the first debt monetization that has taken place recently, just the first monetization the Fed has been caught at. The Fed's attempt to conceal its actions is far more objectionable and should be remembered whenever there are official denials of intervention in the gold market.

Martenson's report can be found at his Internet site here:

http://www.chrismartenson.com/blog/fed-buys-last-weeks-treasury-auction/...

Market analyst Karl Denninger elaborates on Martenson's disclosure at his own Internet site, the Market Ticker, here:

http://market-ticker.denninger.net/archives/1304-BLATANT-Monetization-Un...

It's a fair assumption that the U.S. government's surreptitious market intervention is nearing desperation levels.

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

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