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Back in 1968 a British Commie also understood gold price suppression's imperial purpose

By: Chris Powell, Secretary/Treasurer, GATA

 -- Published: Sunday, 8 March 2015 | Print  | Disqus 

Dear Friend of GATA and Gold:

Our friend D.H., who last week called attention to a magazine article written in 1968 by a former Chase Manhattan Bank economist, Michael Hudson, amid the collapse of the London Gold Pool, showing how control of the gold price was the primary mechanism of imperialism --

-- has located another magazine article from that time, an article possibly of even more interest because of its direct connection to international political rivalry.

The second article was published in the April 1968 edition of The Labour Monthly, the de-facto organ of the Communist Party of Great Britain, and written by the monthly's editor, the international Communist agent Rajani Palme Dutt:

Dutt recognized what the central banks and foreign offices of the Western powers themselves recognized, though the latter certainly didn't want to acknowledge it in public, only in private, as, for example here:

That is, they all recognized that maintenance of the imperial currency, the U.S. dollar, required suppressing the price of its main potential competitor, gold, and pushing it out of the world financial system.

In his "Notes of the Month" column in The Labour Monthly's April 1968 issue Dutt wrote:

"In the Notes of December 1966, under the title 'Deflation, Devaluation, and Damnation,' we anticipated that the present stage of the developing crisis of capitalism would not necessarily repeat the forms of 1929-31, since modern capitalism, through the further fulfillment of its laws of motion already laid bare by Marx and by Lenin in terms of the specific conditions of successive preceding periods, had reached to forms going beyond the concrete conditions of those preceding periods.

"On the basis of the concrete conditions of world capitalism in its present phase we offered the prediction that the next stage of its developing crisis would be likely to break out in the first place on the question of gold, the attempted replacement of gold by the dollar through the artificially imposed maintenance of a low price of gold, and the consequent prospective crash of this unstable system, which would lay bare all the contradictions and once again reveal the basic role of gold in the economy of capitalism."

And then quoting from his commentary of two years earlier, Dutt wrote:

"There is no more vivid expression of the general crisis of capitalism in the economic sphere than the collapse of the old pre-1914 gold standard -- for the present 'gold exchange standard' is a very different system, manipulated by the most powerful finance-capitalist interests, dominantly American; thinly concealing the ceaseless battle, alongside cooperation, of the currencies of the rival imperialist blocs, of the dollar, sterling, the franc, and the mark; and only revealing in the last analysis, when the chips are down, the ultimate basis still in gold as the final measure of value."

Of course Dutt's communism turned out to be an even less satisfactory system of totalitarian governance than the form of capitalism he criticized, in large part because it lacked subtlety and was too easily understood and thus too easily seen as responsible. The system could rule only with its guns drawn.

For the Western financial and governing class, the wonderful thing about gold price suppression and currency market rigging is that hardly anyone can figure them out and so the governing system's guns don't always have to be drawn.

But GATA is working on that, and the evidence is that the top levels of the remaining quasi-communist powers, Russia and China, have figured out gold price suppression and currency market rigging for some years now and are accumulating gold in preparation for busting the Western imperial system.

When will this overthrow take place? GATA has no idea. With its meager resources GATA merely rummages through the traces left by the contending powers in the hope of hastening the day. In pursuit of that objective your secretary/treasurer will embark tomorrow on what the great Oz called "a hazardous and technically unexplainable journey into the outer stratosphere," so these dispatches may be a bit irregular for a while.

In the meantime, the April 1968 Labour Monthly's commentary, "Gold Crisis," is posted in PDF format at GATA's Internet site to show that the current struggle is actually pretty old and enduring:

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

* * *

Join GATA here:

Mining Investment Asia Conference
Resorts World Convention Centre
8 Sentosa Gateway, Sentosa Island
Wednesday-Friday, March 18-20, 2015

Mines and Money Conference
Hong Kong Convention and Exhibition Centre
1 Expo Drive, Wan Chai
Hong Kong, China
Monday-Friday, March 23-27, 2015

* * *

Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

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

Help keep GATA going

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