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

 
Another U.S. State Dept. memo shows conspiracy to control gold price

By: Chris Powell, Secretary/Treasurer, GATA

 -- Published: Sunday, 9 February 2014 | Print  | Disqus 

Dear Friend of GATA and Gold:

Government records from decades ago don't necessarily prove what governments are doing today, but they can demonstrate the possibly enduring interest of governments in the matters at issue. That's what is done by two more U.S. State Department documents called to GATA's attention this week by our friend J.V.

The first is a memorandum about "the gold question" sent in March 1974 by the deputy assistant secretary for international finance and development, Sidney Weintraub, to the undersecretary of state for monetary affairs, Paul Volcker, later to become, of course, chairman of the Federal Reserve Board. The Weintraub memo outlines the U.S. government's views and options about gold policy in preparation for a meeting with Secretary of State Henry Kissinger. The minutes of the meeting with Kissinger, held the following month, describe in detail the great but little-understood power of gold in the international monetary system and the interest of the United States in controlling gold's use as money. The minutes were discovered by GATA consultant Koos Jansen and published by GATA in November:

http://www.gata.org/node/13310

In his memo Weintraub tells Volcker: "U.S. objectives for the world monetary system -- a durable, stable system, with the SDR [Special Drawing Right] as a strong reserve asset at its center -- are incompatible with a continued important role for gold as a reserve asset." Weintraub adds that the U.S. objective is "to encourage and facilitate the eventual demonetization of gold" and to try to keep gold's price down, in part to diminish the influence of the Soviet Union and South Africa, gold producers whose political systems were opposed in the West.

"It is the U.S. concern that any substantial increase now in the price at which official gold transactions are made would strengthen the position of gold in the system and cripple the SDR," Weintraub writes. "If international liquidity were injected via gold, there would be little likelihood of new SDR allocations. There also would be reduced incentive to sell gold on the private market even after an official price increase since central banks would cling to their gold in expectation of further official gold price increases. In addition, too large an increase in world liquidity might add to inflationary dangers. Finally, the distribution of the increase in world reserves would be highly inequitable, with eight wealthy countries getting three-fourths while the developing countries would get less than 10 percent. Producing countries (the USSR and South Africa) would benefit from the implicit floor put under the free-market gold price."

The Weintraub memo is posted at the State Department's archive here:

http://history.state.gov/historicaldocuments/frus1969-76v31/d61

The second document noted by J.V. is a memo written in January 1976 by Assistant Secretary of State for Economic and Business Affairs Thomas O. Enders to Secretary Kissinger about the decisions recently taken by the International Monetary Fund meeting in Jamaica, which had legitimized floating exchange rates among currencies. Enders' memo reviews the options for a role for gold in the international monetary system and notes that less-developed countries were especially opposed to any role, since they didn't have much gold -- though of course this was before gold mining became a major or prospective major industry in some of those countries, which are now substantially weakened by the efforts of industrialized countries to suppress the price of gold to support their own currencies.

The Enders memo is posted at the State Department's archive here:

http://history.state.gov/historicaldocuments/frus1969-76v31/d129

Of course the foreign offices and central banks of the countries involved in these discussions made no public statements to clarify their policy objectives toward gold. That is, they met in secret to plot their policy, conspiring within their own governments and with other governments, as is always the case. Those who disparage the complaint of gold price suppression by central banks dismiss it as "conspiracy theory." But the government archives show that it is conspiracy fact. Just as often as not, of course, government itself is conspiracy.

Last year the U.S. State Department, in a letter to GATA's lawyers --

http://www.gata.org/files/StateDeptDenialLetter-05-08-2013.pdf

-- denied that its archive holds anything like the three documents cited here.

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

Join GATA here:

Mines and Money Hong Kong
Hong Kong Convention and Exhibition Centre
Monday-Friday, March 24-28, 2014
Hong Kong Special Administrative Region, China

http://www.minesandmoney.com/hongkong/

* * *

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


| Digg This Article
 -- Published: Sunday, 9 February 2014 | E-Mail  | Print  | 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.