9:45p ET Friday, August 14, 2009

Dear Friend of GATA and Gold:

A very secretive investment firm, Precision Capital Management LLC (http://www.precisioncapmgt.com [1]) -- not to be confused with Precision Capital in New York City -- this month published a wonderful report, "A Grand Unified Theory of Market Manipulation."

While the firm declines to identify its personnel and even its location and its chief executive uses a pseudonym (Bob English), the report is immensely valuable for specifying the mechanisms, opportunities, and motives for the U.S. Federal Reserve and Treasury Department to be intervening pervasively in the markets, including the gold market, either surreptitiously or in ways not likely to be noticed or fully understood.

The report concedes that it is largely speculative. But with infinite money now being created by the government and disbursed secretly as the rankest patronage, and with the Federal Reserve again this month denying GATA access to its records involving the U.S. gold reserve, citing an exemption in the federal freedom-of-information law for "trade secrets and commercial or financial information obtained from a person," what the Fed calls "confidential commercial information," anyone who denies or scoffs at the possibility of market manipulation is probably part of it.

You can find the Precision Capital report here:

http://www.gata.org/files/PrecisionCapitalMarketManipulation-08-02-2009.pdf [2]

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

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http://www.gata.org/node/16 [8]