-- Posted Thursday, 16 June 2011 | | Disqus
Dear Friend of GATA and Gold:
If you listened closely to U.S. Rep. Ron Paul's questioning of Federal Reserve General Counsel Scott G. Alvarez at a hearing of the House Subcommittee on Domestic Monetary Policy and Technology last week, you heard Paul mention the U.S. Treasury Department's Exchange Stabilization Fund as a likely instigator of secret swaps involving the U.S. gold reserve:
http://www.gata.org/node/9980
GATA often has cited the ESF as a probable gold market rigger. Indeed, "Exchange Stabilization Fund" were just about the first words out of the mouth of the GATA delegation that visited House Speaker Dennis Hastert at his office at the Capitol on May 10, 2000. We complained that the U.S. government was likely using the ESF to rig various markets, including the gold market. If Hastert hadn't been so polite or discreet, he could have handed us a copy of the statute establishing the ESF -- the Gold Reserve Act of 1934 -- and asked us why we should be so indignant, and couldn't we read? For rigging the gold market particularly and other markets generally is explicitly what the ESF was created to do. The fund has the authority to "deal" in virtually anything, and in secret:
http://www.law.cornell.edu/uscode/html/uscode31/usc_sec_31_00005302----0...
"The Department of the Treasury has a stabilization fund. ... Decisions of the Secretary are final and may not be reviewed by another officer or employee of the Government. ... Consistent with the obligations of the Government in the International Monetary Fund on orderly exchange arrangements and a stable system of exchange rates, the Secretary or an agency designated by the Secretary, with the approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities the Secretary considers necessary. ..."
Besides the president and treasury secretary, only Kitco gold market analyst Jon Nadler and CPM Group Managing Director Jeff Christian claim complete knowledge of what the ESF does, which, they insist, is nothing, but they have not yet revealed how they found out.
In the meantime, Eric de Carbonnel of the Market Skeptics letter (http://www.marketskeptics.com/) has assembled a extensively researched two-part video about the ESF and has posted it at YouTube, where each section is about nine minutes long. De Carbonnel concludes that the ESF has been the nexus of U.S. government covert operations throughout the world since World War II -- gold market rigging is but a small part of the ESF's work. De Carbonnel notes that the agency never has been investigated by Congress, though perhaps Paul will aim a few critical questions its way at a hearing of his committee on June 23. (See http://www.gata.org/node/10004.) As always, pray for Paul's health and safety.
Part 1 of De Carbonnel's video on the ESF can be found at YouTube here:
http://www.youtube.com/watch?v=2ssrcD5GdPQ&feature=player_embedded
Part 2 can be found at YouTube here:
http://www.youtube.com/watch?v=ImuVUab6WW0&feature=player_embedded
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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-- Posted Thursday, 16 June 2011 | Digg This Article
| Source: GoldSeek.com
