Yesterday, Secretary Paul O'Neill testified before the Financial Services Committee on the state of the international economy and the performance of the IMF and World Bank. Congressman Paul asked Secretary O'Neill what he thought of the Monetary Freedom and Accountability Act (HR 3732). Secretary O'Neill said he believed the administration needed the flexibility to deal with changes in the international economic system and would oppose anything that reduces the administration's "flexibility."
"What lies behind us and what lies before us are small matters compared to what lies within us." -Ralph Waldo Emerson.
Gold Bulls express frustration with the lack of exposure to the obvious and deliberate manipulation of the gold and silver markets. Its not that this interference is new, but rather that it is so obvious. While a casual reading of the Briefs in the Hove vs. BIS lawsuit certainly causes one to question motives, looming in the balance is a much larger fiasco that the gold and silver market stratagems are masking and which is threatening to be exposed. These monetary metals exert fiscal pressure in response to imbalances and even though cartels can covertly disperse these pressures temporarily, economic truth will eventually prevail and lay bare the manipulators.
When, lo, as they reached the mountain's side,
A wondrous portal opened wide,
As if a cavern was suddenly hollowed:
And the Piper advanced and the children followed,
And when all were in to the very last,
The door in the mountainside shut fast.
"The Pied Piper of Hamelin"
Images of riots and runs on banks in Argentina greeted our New Year. For Americans, it's just another disaster in some distant country. It's just another run-of-the-mill Latin American or Third World crisis. Nothing new, they have them all the time!
T. S. Eliot wrote ("Philip Massinger," The Second Wood,1920): "Immature poets imitate; mature poets steal." The famous literary critic Lionel Trilling gave Eliot at least one good review, writing in the September 1962 edition of Esquire (as quoted in The International Thesaurus of Quotations (Harper Collins, 1996), p. 508, and in R. Andrews, Famous Lines: The Columbia Dictionary of Familiar Quotations (Columbia Univ. Press, 1997), p. 368): "Immature artists imitate. Mature artists steal."
A few weeks ago I received an interesting email from Andrew Hepburn. He is a diligent researcher who has done yeoman's work for www.GATA.org, an organization formed for one purpose - to find the truth about who is keeping a lid on the gold price. Andrew and I recently have been sharing information and research on a number of matters, and he brought to my attention an intriguing footnote in a 1997 report called the "Consolidated Financial Statements of the US Government" (CFS).
What U.S. and Foreign Officials Have Said About The Fed's Activities in the Gold Market - Bill MurphySubmitted by Administrator on Mon, 2002-01-07 08:00. Section: Essays
From the transcript of the minutes of the Federal Open Market Committee on March 26, 1991 (www.federalreserve.gov/fomc/transcripts/1991/910326Meeting.pdf): Near the end of a lengthy discussion (pp. 8-21) of U.S. foreign exchange reserves, which are held in approximately equal portions by the Fed and the Exchange Stabilization Fund, former Fed governor Wayne Angell added (p. 19):
The following documentation and statements were presented in Reg Howe's lawsuit filed in the District Court of Massachusetts against Defendants: Bank for International Settlements, Alan Greenspan, William J. McDonough, J.P. Morgan & Co. Inc., Chase Manhattan Corp., Citigroup, Inc., Goldman Sachs Group, Inc., Deutsche Bank AG and Lawrence H. Summers, Secretary of the Treasury.
*In July 1998, Fed Chairman Alan Greenspan, testifying before the House Banking Committee, stated: "Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise." This statement amounted to a declaration that the gold price had been and would continue to be controlled.
The Christmas, end-of-year holiday season is often a time of reflection for many of us. As a result of the Terrorist attacks and warring strife in the world, the closing out of 2001 may be more poignant than most years. As chairman of The Gold Anti-Trust Action Committee, it certainly is for me.
Chris Powell and I will soon commence year four in our effort to expose the manipulation of the gold price. From day one we stated that our main goal was to expose the "truth" about the gold market. That is what we told the Speaker of the House, Dennis Hastert; the chairman of the Subcommittee on Domestic and International Monetary Policy, Spencer Bachus; the chairman of the House Joint Economic Committee, James Saxton; and the President of the United States, George W. Bush, via his private fax.
Hello everyone. I would like to extend a special greeting to those Gold Anti-Trust Action Committee supporters who have come from all over the world to attend this conference.
Two years ago from this very podium, I presented evidence the gold market was manipulated by a cartel of bullion banks. Since then, GATA has secured massive amounts of additional evidence that confirms our original assessment.
The Gold Anti-Trust Action Committee has come up with more evidence that the gold market has been manipulated since 1995 than the Bush Administration has produced evidence showing Osama Bin Laden was responsible for the September 11 terrorist attacks on the United States. A smattering of that evidence includes the following:
*Virgil Mattingly, General Counsel of the Federal Reserve. According to the transcripts of the January 31st, 1995 meeting of the FOMC, Mr. Mattingly said: "The [ESF] statute is very broadly worded in terms of words like "credit" – it has covered things like the gold swaps – and it confers broad authority.