You are here
Volcker's updated autobiography urges gold price suppression
11p ET Sunday, November 18, 2018
Dear Friend of GATA and Gold:
With the latest version of his autobiography, published last month, "Keeping At It -- the Quest for Sound Money and Good Government" --
-- former U.S. Federal Reserve Chairman Paul A. Volcker reiterates that gold price suppression long has been a tool in the arsenal of central banks for surreptitious market rigging in defense of their curerencies.
... Dispatch continues below ...
We Are Amid the Biggest Financial Bubble in History;
When It Bursts, Bullion Owned in the Safest Way Will Protect Wealth
With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong.
Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed.
Crucial guides to storage in Singapore and Switzerland can be read here:
GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals.
Email the GoldCore team at firstname.lastname@example.org or call our trading desk:
UK: +44(0)203-086-9200. U.S.: +1-302-635-1160. International: +353(0)1-632-5010.
Visit us at: http://www.goldcore.com
Volcker acknowledged as much in the first edition of his autobiography, which seems to have been published only in serial form in the Nikkei Weekly in Japan in 2004.
Of an international currency revaluation agreement announced on February 12, 1973, Volcker wrote:
"That day the United States announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake."
In his updated autobiography, Volcker writes of that 1973 currency revaluation:
"The newly agreed exchange rates and gold price ($42.22), in my view, would be highly vulnerable to renewed speculation. To convey a sense of confidence, we should be prepared to intervene collectively to stabilize the gold market: in effect to create a new gold pool. That, unfortunately, was not agreed."
The "gold pool" to which Volcker referred was the London Gold Pool of the 1960s, the mechanism by which the United States and the governments of seven European allies dishoarded from their gold reserves, through the Bank of England in London, to hold the international gold price at $35 per ounce.
The London Gold Pool collapsed in March 1968, overwhelmed by offtake in the face of U.S. inflation caused by government social programs and spending on the Vietnam War:
In correspondence with the German financial journalist Lars Schall in 2012, Volcker defended central bank intervention against the gold price to counter "exchange rate instability at a critical point":
Through the years GATA has discovered admissions by various other central bankers that intervention against gold is far from mere "conspiracy theory" but actually longstanding Western central bank policy. But even with Volcker's new reiteration of that policy, will any mainstream financial news organization or even any monetary metals mining company or gold-advocating investment house try questioning central banks about their policy toward gold particularly and surreptitious intervention in markets generally?
Until that happens, the greatest power of central banks will remain not their ability to create infinite money and apply it to surreptitious interventions in markets but rather their ability to intimidate news organizations out of reporting the cosmic deception.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit: