Citizens have been allowed to own gold ingots again, and while our government has a strong influence on the gold market, Uncle Sam, in fact, does not control the gold market. Add gold, silver and more to get started. Are you sure you want to empty the cart? As you can see in the conference program, I am from the United States. Even so, I wanted you to know that my country is waging a war against yours, and it has been doing so for many years.
The organization I represent hopes that, once you find out about this, you will try to do something about it. They could benefit themselves and everyone else, including Americans. . Presumably, you are attending this conference because you suspect that your great natural resource is not valued or traded as well as it should be in order to increase the prosperity of your region.
You're right, but I bet you don't even know half of it. Certainly, you wouldn't have learned the other half of conventional financial journalism and academic teaching, since they argue that gold is, at best, a picturesque antique. They couldn't be more wrong. In fact, gold is still what it has been for thousands of years, an excellent form of money, and it can once again become the best and most important form of money.
More than that, gold is actually the secret knowledge of the financial universe, a secret that most central banks desperately hide. Gold has continued to be so important that Western governments, in particular the U.S. UU. The Treasury and its Exchange Rate Stabilization Fund, U.S.
The Federal Reserve and allied governments and central banks manipulate the gold market every day, even hour after hour, to control and generally suppress the price of the monetary metal. This is because gold is a powerful and competitive international currency that, if allowed to function in a free market, will determine the value of other currencies, the level of interest rates and the value of government bonds. In a free market, the yield of gold is usually the opposite of that of currencies and government bonds. A rise in the price of gold means the weakening of government currencies, at least government currencies in countries that don't produce much gold.
So central banks fight gold to defend their currencies and bonds from competition. The problem is that the tactics of Western central banks in their war against gold affect much more than gold. They affect markets in general and, over time, destroy markets in general and damage the economies of all commodity producing countries. This destruction of markets now has a name, a name that even former members of the United States used,.
That name is financial repression. Some of this literature and some of these records are published in the “Documentation” section of the GATA website. They used to do so in a conventional and open way, by dehoarding (selling) some of their gold reserves at strategic times. Then, they began to defund their gold reserves more frequently, even every day, as did the United States, the United Kingdom and seven of their Western European allies during the 1960s through a public operation called the London Gold Pool.
After the collapse of the gold reserve, the United States and its allies regrouped to decide how to surreptitiously manipulate the gold market, doing so behind the scenes, not only through dehoarding but also through what is called gold leasing; by buying and selling gold derivatives, including futures and options contracts; and, more recently, through what are called high-frequency transactions carried out through banks of investment that gladly act as government agents in the gold market, which camouflaged governments, since investment banks can direct government offices. When manipulation is done surreptitiously, as is the case in most cases now, much less gold needs to be deaccumulated from central banks, and the decoupling that takes place has a much more repressive effect on price. But Western central banks' market manipulation goes far beyond gold. In an essay published in 2001 entitled The devaluation of the world currency: it's inflation, but not as we know it, British economist Peter Warburton discovered that central banks used investment banks to issue financial derivatives in commodity futures markets in order to divert money that sought to protect against inflation by investing in hard assets.
This diversion of investment benefits governments, since the hoarding of raw materials would raise consumer price indices and make inflation even more evident and worrisome for markets and the public. Most of these derivatives, encouraged by the government in the West, are essentially blatant short positions in the underlying commodity, promising to sell volumes of a commodity that are not easily available and that cannot be obtained without raising prices. Warburton concluded that, since simple short selling in the futures markets kept commodity prices low, any hedge against inflation would have to be an asset that was not linked to a futures market. This is because anyone with enough money can control any futures market and central banks have access to infinite money.
In fact, a cable sent to the U.S. Department of State by a U.S. official. The Embassy in December 1974, on the eve of the establishment of the gold futures market, suggests that the gold futures market was created precisely to scare retail investors away from gold.
The cable describes the embassy's extensive consultations with London ingot dealers regarding the imminent relegalization of gold ownership in the United States and the potential substantial purchases of gold by Arab oil-exporting countries. The answer is that gold derivatives have created an enormous imaginary supply of gold, an offer of paper gold certificates that does not exist but for which their delivery has not been required. This is because most gold investors deposit their purchases of gold with investment banks that sold them only promises of imaginary gold. As a result, the world now has a system of gold banks with fractional reserves that has extreme leverage.
However, most commodity markets are for goods that are eventually largely delivered and consumed, so those markets cannot be falsified too much. Gold is different, since gold is not consumed but is stored (treasured) as a medium of exchange, as money and savings and as jewelry, even though most of the gold purchased in the futures markets is never delivered, but is left in deposit on the futures exchange or in investment banks. This system has produced an enormous and elastic supply of imaginary gold, even when people buy gold precisely because they assume that their supply is neither imaginary nor elastic, that their supply is real and is limited to past total production and annual mining production. This assumption that the supply of gold in the financial system is real is a terrible mistake.
While the principle behind most investment analysis in gold is that you cannot print gold, gold on paper can be printed infinitely, just like the common official currency, and in fact, it has been printed practically infinitely. You can get an idea of the enormous imaginary supply of gold by reviewing the enormous positions in gold derivatives attributed to the United States. Investment banks in US reports. It is almost certain that these derivative positions are not the positions of investment banks themselves, but rather those of the US.
Government positions negotiated and held on investment banks' books. The Treasury Department's Exchange Stabilization Fund is expressly authorized by law, the Gold Reserve Act of 1934, as amended, to operate secretly in all markets, including the gold market, in the U.S. And this law expressly exempts the Exchange Rate Stabilization Fund from answering to anyone other than the Secretary of the Treasury and the President. Some investment banks are nominally on the short side of this enormous leverage and would be existentially vulnerable to a short contraction if they were the real holders of short positions.
Instead, these huge short positions are probably the U.S. Government positions provided by the Exchange Rate Stabilization Fund. For example, in a testimony before Congress in July 1998, Federal Reserve Chairman Alan Greenspan stated that central banks are willing to lease gold in increasing quantities in case the price rises. Thus, Greenspan confirmed that the purpose of leasing gold by central banks was not what they used to intend—to earn them a little money with the supposed dead asset they kept in their vaults— but rather to reduce the price of the monetary metal.
In other words, the policy of the United States was to prevent any free market in gold. In June 2004, the vice-president of the Bank of Russia, Oleg Mozhaiskov, told a conference of the London Bullion Markets Association in Moscow that he suspected that the United States was suppressing the price of gold. The LBMA refused to give GATA a copy of Mozhaiskov's speech. But I contacted him by fax in Moscow and he quickly replied that he would send a copy, but I wanted to control the English translation.
About a month later, I received the copy in English from a friend of Mozhaiskov, the executive director of the Narodny Bank of Moscow in London. I think Mozhaiskov's reference to GATA was his way of telling London bankers that Russia was aware of his plan to abolish the price of gold. Jelle Zijlstra, president of the Central Bank of the Netherlands who was also president of the Bank for International Settlements in Basel (Switzerland), wrote in her 1992 memoirs that the price of gold had been suppressed for a long time at the behest of the United States. The BIS's secret interventions in the gold market have been going on for many years.
A long article by Edward Jay Epstein published in Harper's magazine in 1983, based on apparently unprecedented interviews with BIS officials, revealed that the BIS was constantly intervening in secret in the gold market. The GATA consultant on the Bank for International Settlements, Robert Lambourne, examines the bank's monthly statement because, if you look closely at the bank statement, as Lambourne does, you'll see that it includes entries for “gold and gold loans” and “gold deposits”, and these entries change every month. Here is the revealing page of the January BIS statement. Using the account statement, Lambourne calculates BIS positions related to gold.
He believes that the bank's position in gold swaps has been rising steadily for months and is now close to reaching an all-time high in the bank's history. In other words, in recent months the BIS has been intervening in the gold market more than ever. Therefore, it can be rightly assumed that any honest answer in this case would incriminate the members and owners of the BIS (the central banks), to which the BIS is camouflaging its interventions in the gold market. The secret IMF report is doubly important, since it states not only that central banks are surreptitiously intervening in the gold market through swaps and leases, but also that no official data on gold from central banks is valid.
The IMF, which collects data on gold from central banks, allows its members to count leased and exchanged gold as if it were still in their vaults, unencumbered, when the gold may have come out of the vaults or have multiple rights to it. In other words, the IMF's secret report shows that central banks' gold reserves are counted twice or worse. Since it advocates dishonesty when reporting on national gold reserves, the IMF's secret report also demonstrates that the true quantity, location, and disposition of central banks' gold reserves are much more sensitive state secrets than the quantity, location, and disposition of nuclear weapons. Well, nuclear weapons can only destroy the world, while, as we shall see shortly, the control of gold and its price confers control of all financial valuations in the world.
What are the Banque de France and its associates doing with their secret gold trade? They won't say. Obviously, it's something they don't want gold-producing markets and countries to know about. Warsh cordially wished me a nice day. However, the Chinese government is well aware of the Western policy of suppressing the price of gold and is not afraid to talk about it.
So, the Russian and Chinese governments don't just know everything about the plan to suppress the price of gold. State Department cables show that the U.S. Many people in the gold business in China are also aware of the suppression of the price of gold by the U.S. In fact, public government archives are full of records documenting the government's long-standing goal of eliminating gold from the global financial system in order to maintain U.S.
dominance. The dollar as a world reserve currency. The top officials of the United States,. The State Department has just explained to him that the government or group of governments that has the most gold has the crucial instrument of “creating reserves”, the instrument that can create money and can control the valuation of the instrument and implicitly the valuation of all the world's currencies.
The interest of the United States, at least as perceived at the State Department meeting in April 1974, was to dominate the world by controlling the creation of money and the valuation of all currencies. The government has created special mechanisms for intervention in the secret market against gold, in addition to its Exchange Rate Stabilization Fund. With the approval of the United States,. The Securities and Exchange Commission and the Commodity Futures Trading Commission, the operator of major United States companies,.
The CME Group futures exchanges offer volume discounts to governments and central banks to secretly trade all available futures contracts in the United States. The fact that central banks and governments trade in secret in the main US futures markets means that central bank intervention in world markets is probably exhaustive: that there really are no longer markets, only interventions, that the main objective of the central bank is now to prevent markets from occurring, and that the market economy, which has been the engine of progress and democracy around the world, has already been seriously affected, if not destroyed. This is the financial news of the century, but major financial news organizations don't report it. In May of last year, a study by the Business School of the University of Sussex, in Great Britain, concluded that the gold futures market is heavily manipulated, which seems contrary to regulations, but regulators are ignoring it.
Regulators, and in particular the U.S. The Commodity Futures Trading Commission is ignoring the manipulation of the gold futures market because such manipulation is perfectly legal, at least in the United States, when it is carried out or under the direction of the U.S. This is because a federal law, the Gold Reserve Act of 1934, expressly authorizes the U.S. The Treasury Department will secretly intervene and manipulate not only U.S.
markets, but also markets anywhere in the world, including markets in Africa. The GATA has repeatedly asked the U.S. Commodity Futures Trading Commission, if you have jurisdiction over market manipulation committed by or under the direction of the U.S. But the commission refuses to answer the question, not even for a member of Congress.
Of course, this refusal to respond is essentially a response anyway, a confirmation that the United States,. The government is secretly manipulating markets around the world and the commission can't do anything about it because it's legal, at least in the U.S. But then, GATA got an answer to this question in 2001, when, before a federal court in Boston, we filed our first lawsuit against the U.S. Bank for International Settlements.
The Government, the Department of the Treasury, the Federal Reserve and the major investment banks that act as their agents in the gold market. The lawyer, a government lawyer, asked the court to dismiss our lawsuit because, he said, under the Gold Reserve Act of 1934, the U.S. In fact, the government claims to have the power to manipulate the gold market, just as complained in our lawsuit. The court dismissed our lawsuit, but for technical reasons of jurisdiction, not for the reason urged by Assistant U.
ST. Ten years later, GATA defeated the government, in particular the Federal Reserve, in a freedom of information lawsuit filed in the United States. District Court for the District of Columbia. The lawsuit had to do with the Federal Reserve's refusal to allow GATA to inspect its gold discs.
So, while the Federal Reserve won 99 percent of the lawsuit's fund, technically the Fed lost the case, so the court ordered the Fed to pay court costs to GATA. Here is a copy of the Federal Reserve check. I'm sorry to have taken so long with these documents. But there are many, many more, and I emphasize them because the work of GATA has been overlooked for a long time because we are promoting the “conspiracy theory”.
Well, by definition, the government itself is a conspiracy when its officials meet in secret to formulate and implement a course of action. Most of the documents that GATA has discovered and compiled are evidence of conspiracy. The central bank's policy of suppressing the price of gold is a conspiracy that basically controls the valuation of all the world's capital, labor, goods and services, a conspiracy that controls almost everything. The GATA maintains that any fixing of economic valuations must be done openly in free markets or, if the government insists on fixing valuations, do so openly, democratically and responsibly.
There are other official intervention tests that I look forward to discussing with you on Wednesday. I also look forward to discussing with you then why all this should matter to Africa in particular, whether the suppression of the price of gold by governments in the developed world will ever end and, if so, how could it end. Then there is the question of what the victims of this conspiracy — victims like the people of Africa — can do about it. In any case, thank you for your kind attention and indulgence today.
for our high-quality educational content, our great prices and our excellent customer service. The price of gold is generally inversely related to the value of the United States dollar because the metal is denominated in dollars. All things being equal, a stronger EU. The dollar tends to keep the price of gold lower and more controlled, while a U.S.
Weaker U.S. The dollar is likely to drive up the price of gold due to increased demand (because you can buy more gold when the dollar is weaker). As I have said in many interviews and articles, the Federal Reserve and Central Banks CANNOT boost the price of gold wherever they see fit. Algorithms electronically calculate the market price of gold based on its cost of production.
The only way the Federal Reserve and central banks can control the price of gold is to rise. This is achieved by using a large number of paper contracts to prevent the price of gold from rising too high. Gold leasing is an important tool for the Federal Reserve and other Western central banks to secretly control and regulate the gold market, creating credit derivatives with gold and global credit conflicts. In other words, the Treasury paid the price of gold by selling government securities in the financial markets to keep the gold pile high, but they would not become Treasury currency.
The increase in gold reserves due to the change in prices caused a large accumulation of gold in the Federal Reserve and in the U.S. This graph shows the difference between the total cost of production of the two main gold miners, Barrick and Newmont, and the average annual price of the gold market. This price change encouraged gold miners around the world to expand production and foreigners to export their gold to the United States, while devaluing the U. It seems that the suppression of gold, or deliberate efforts to control the price of gold, has long since ceased to be a conspiracy theory and became a simple reality.
While I agree that central banks play a role in intervening in the gold market, there is no doubt that they CANNOT push the price of gold wherever they want. In any case, the market price of gold was still higher than Barrick and Newmont's small free cash flow margin compared to total revenues. .