By March 6, 2011 1 Comments Read More →

Fed Releases Document Proving It Has Lied About Gold Swaps and Gold Price Manipulation

For several years, the US government’s official stance has been that it has not only never engaged in manipulating gold prices, it has also never even discussed the subject.

bernanke fed1 Fed Releases Document Proving It Has Lied About Gold Swaps and Gold Price ManipulationTo comply with a court order from a Freedom of Information Act lawsuit filed by the Gold Anti-Trust Action Committee, Inc. (GATA), on February 18 the Fed turned over to GATA the minutes of a secret April 1997 meeting of the G-10 Gold and Foreign Exchange Committee.

This document was one of several that were sought by GATA to gain more information on the actions of the Fed that involve gold swap discussions and activities since 1990.

The judge allowed the Fed to keep nine other documents secret.

From the Gata Website; “According to the minutes, the U.S. delegate cited above, identified only as “Fisher” — apparently Peter R. Fisher, head of open market operations and foreign exchange trading for the Federal Reserve Bank of New York — also warned that central bank gold sales and leasing might be construed as positive for gold. The minutes say: “First, he noted that some market cynics viewed central bank activity as a contrary indicator and therefore one had to be conscious of possible feedback effects. Second, he noted that the price of gold, unlike other commodities, had historically not trended toward the cost of production. This seemed to suggest an ongoing supply/demand imbalance. Third, he had the sense that the gold leasing market was an important component in this puzzle, though he did not understand enough about that market, particularly the credit risk aspects of gold lending.”

A Canadian delegate, the minutes say, wondered whether data about the gold market could be trusted — a point much pressed by GATA and others lately.

peter fisher 275x201 Fed Releases Document Proving It Has Lied About Gold Swaps and Gold Price ManipulationU.S. delegate Fisher, the minutes say, “explained that U.S. gold belongs to the Treasury. However, the Treasury had issued gold certificates to the Reserve Banks, and so gold (by these means) also appears on the Federal Reserve balance sheet. If there were to be a revaluation of gold, the certificates would also be revalued upwards; however [to prevent the Fed's balance sheet from expanding] this would lead to sales of government securities. So the net benefit to Treasury would need to be carefully calculated, since sales of government securities would expand the public portfolio of government securities and hence also expand the Treasury’s debt-servicing burden.”

This seems to be as candid an acknowledgement as any of the U.S. government’s profound interest in suppressing the price of gold.

Two years after the G-10’s Gold and Foreign Exchange Committee discussed coordinating Western central bank policies toward gold, most of those central banks announced just such a formal mechanism of cooperation, the Washington Agreement on Gold:

http://www.ecb.int/press/pr/date/1999/html/pr990926.en.html

The minutes of the April 1997 meeting of the G-10 Gold and Foreign Exchange Committee, which the Fed sought to conceal, along with the secrecy on which the Fed successfully has insisted for its other gold records, are powerful confirmations of Western central bank interest in controlling the gold market surreptitiously. The minutes have been posted at GATA’s Internet site here:

http://www.gata.org/files/FedMemoG-10Gold&FXCommittee-4-29-1997.pdf

Once again, this new document confirms that the Fed has consistently lied in denying its discussions and activities about gold swaps.

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1 Comment on "Fed Releases Document Proving It Has Lied About Gold Swaps and Gold Price Manipulation"

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  1. Alfred Hayes was a Rhodes Scholar (anti-USA sovereignty) and was president 1956-1975 of the Federal Reserve Bank of New York, in which capacity he presided over the winnowing out of silver coins in the nation’s largest banking district, which were sent to the Treasury and melted for bullion at give-away rates for price suppression purposes to the Silver Users Association. On leaving the NY Fed he became president of Morgan Stanley International, another metals suppressing entity. For reasons unknown, few major commentators in metals have shown any wish to touch the heavily documented findings at The Silver Stealers, which have been publicly available by free access since January 2011; specifically, that so many major league gold and silver suppressors over the last century have all been members of one organization, “The Pilgrims Society,” (including Hayes), which maintains a shockingly low profile considering how its members stand atop the pinnacles of world finance, and always has the USA President (who can order metals nationalization and did so in 1933-1934) as an “honorary” member! I value the help from Silver-Investor, Bullion Bulls Canada, Silver Bear Cafe, Implode O Meter, Don’t Tread On Me, Brother John, Silver Strategies, Silver Market News Online and many other sites in spreading about this one singular fact—all major attacks on precious metals trace to this “Pilgrims Society,” set up via the wills of diamond cartel organizer Cecil Rhodes, who fronted for both the Crown and the Rothschilds. As of 1986, William Rockefeller was on the executive committee of The Pilgrims, New York branch. The quotations below are documented in Vital Speeches of the Day—

    “I HAVE HEARD OUR SWAPS CRITICIZED AS COVER UPS.” —Alfred Hayes, lecture at Economic Club of New York, April 22, 1963

    “I AM PARTICULARLY PROUD OF THE FEDERAL RESERVE SWAP NETWORK, IN THE DEVELOPMENT OF WHICH I WAS INVOLVED FROM ITS INCEPTION, LINKING THE FEDERAL RESERVE AND 14 OTHER CENTRAL BANKS AND THE BANK FOR INTERNATIONAL SETTLEMENTS. GOLD HAS LONG BEEN VIEWED BY MANY AS A BARBAROUS RELIC AND DEMONETIZING IT AND PHASING IT OUT OF THE SYSTEM COMPLETELY SEEMS TO HAVE A GOOD DEAL OF APPEAL IN SOME QUARTERS.” —Alfred Hayes, speech at International Monetary Fund, August 31, 1975
    Why are the majority of acknowledged leaders in gold and silver commentary ignoring the heavily documented findings in “The Silver Stealers” documentary? While they’re ignoring it, the rank and file are READING it. Please help! The purpose is to protect our private property rights!

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