LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Washington Agreement is another gold rig, former Fed and Treasury official admits

By: Chris Powell, Secretary/Treasurer, GATA


-- Posted Tuesday, 1 January 2013 | | Disqus

Dear Friend of GATA and Gold:

Coordination of European central bank gold sales under the Washington Agreement on Gold, an agreement made in 1999 and updated in 2004 and 2009, is "the modern counterpart" of the London Gold Pool of the 1960s, which controlled gold prices until it collapsed in March 1968, a former Federal Reserve and U.S. Treasury Department official told an international investment conference a month ago.

The former official, Edwin M. Truman, went on to describe an enduring system of daily communication among Western central banks in which they share "confidential information" that includes "the size, currency, and nature of their foreign exchange market operations."

Thirteen years ago as assistant treasury secretary for international affairs, Truman denied in a letter to GATA that the Treasury Department was involved in manipulation of the gold market. But he did not volunteer any awareness of gold market manipulation from other sources.

Ironically, in his presentation to last month's investment conference, sponsored by the Bank for International Settlements and the World Bank and held in Washington --

http://www.bis.org/events/pic2012.pdf

-- Truman, now a senior fellow at the Peterson Institute for International Economics, urged greater transparency for central banks and sovereign wealth funds and seemed to argue that they should not resist devaluation of the U.S. dollar. Truman cited the work of two colleagues at the Peterson institute who last week published a report blaming the U.S. trade deficit on currency manipulation by foreign central banks and advocating dollar devaluation:

http://www.iie.com/publications/interstitial.cfm?ResearchID=2302

Of gold market rigging in the 1960s and today, Truman said: "Participants, a subset of the G-10 countries, cooperated in feeding gold into the London gold market to help keep the price close to $35 an ounce. The modern counterpart of the gold pool is the agreement among the central banks of some of these same countries to limit their market sales of gold. But that agreement, which currently runs through 2014, does not extend beyond a small group of countries."

A detailed description of the London Gold Pool is posted at Wikipedia here:

http://en.wikipedia.org/wiki/London_Gold_Pool

The European Central Bank's most recent statement about the coordination of central bank gold sales is posted here:

http://www.ecb.int/press/pr/date/2009/html/pr090807.en.html

Of secret coordination of Western central bank currency market interventions, Truman noted "the establishment at the BIS in 1962 of the Gold and Foreign Exchange Committee of the G-10 central banks," adding, "At regular monthly meetings, participants exchanged views on conditions in gold and foreign exchange markets as well as their own operations. These discussions involved extensive sharing of confidential information. Later on these same central banks began regularly to participate in daily telephone calls in which they discussed, and exchanged information on, financial market developments including the size, currency, and nature of their foreign exchange market operations."

But Truman's presentation to the BIS-World Bank conference seems to have been mainly a lament that the United States is losing control of the world financial system as huge dollar foreign exchange reserves are held opaquely by foreign central banks and sovereign wealth funds and the U.S. government can't keep track of them and know where they may be used to strike next. He says more cooperation with international "public-sector investment policies" is needed and warns that "the alternative to increased cooperation on public-sector investment policies is a currency war."

Of course given his biography --

http://www.piie.com/staff/author_bio.cfm?author_id=122

-- the greatest blow for transparency in the currency markets might be struck simply by strapping Truman himself onto a witness stand somewhere and putting him under oath. Wikipedia quotes New York Times columnist and Nobel Prize-winning economist Paul Krugman as having described Truman as "the George Smiley of international economics" --

http://en.wikipedia.org/wiki/Edwin_M._Truman

-- George Smiley being the British intelligence officer of the John LeCarre spy novels. Ever since Truman manifested himself during a GATA delegation's visit to U.S. House Speaker Dennis Hastert and other members of Congress in Washington in May 2000, GATA Chairman Bill Murphy has been describing Truman as a Central Intelligence Agency asset.

Truman's presentation to the BIS-World Bank conference, acknowledging that gold market rigging continues through the Washington Agreement on Gold, is posted at GATA's Internet site here:

http://www.gata.org/files/Truman-WorldBank-BIS-12-03-2012.pdf

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Join GATA here:

Vancouver Resource Investment Conference
Sunday-Monday, January 20 and 21, 2013
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/vancouver-resource-investment-confer...

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


-- Posted Tuesday, 1 January 2013 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.