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« The Biggest Financial Deception of the Decade | Main | Are We Missing Something? »
Monday
Jan042010

The Federal Reserve Sued by GATA

GATA.JPG

The Gold Anti-Trust Action Committee Inc. today (Dec. 30th, 2009) brought suit against the U.S. Federal Reserve Board, seeking a court order for disclosure of the central bank's records of its surreptitious market intervention to suppress the monetary metal's price.

The suit was filed in U.S. District Court for the District of Columbia.

This is the opening snippet from rightsidenews.com who carried this article entitled 'GATA Sues Federal Reserve to Disclose Gold Market Intervention Records' They also refer to a letter from Kevin Walsh, a member of the board which states:

I have confirmed that information withheld from you under exemption 5 in this case is both predecisional and deliberative within the meaning of exemption 5.

Accordingly, this information was properly withheld.

'Properly Withheld' that sort of comment sticks in the throat and was aptly picked up by Al Korelin of The Korelin Economics Report when he interviewed Chris Powell, GATA Secretary/Treasurer. Click here to listen to it. Its also on Youtube.

The gold price manipulation theory has been around for some time so it should be interesting to see just how this one pans out. We don't know how long it will take to get this issue into court but GATA have asked the questions and The Federal Reserve Board need to come up with a few answers.





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Reader Comments (9)

GATA doesn't like gold dropping hundred bucks , lol! Ohh, wait, is GATA trying to control GOLD price? Give me a break. The market put it there and the market is always right. We are just seeing the extreme of gold bug's madness. And gold will give everybody a surprise ending below 500 within next 2 years

January 5, 2010 | Unregistered CommenterDi

GATA has been providing the evidence, almost all of it from the public record, for over 10 years. The only thing "theory" about it is the fact that that's what the mainstream media calls it along with those too lazy to actually read the evidence provided by GATA, as this person Di appears to be. So easy to spout out "Give me a break" comments. Takes a little time and effort to actually learn enough to know what you're talking about. GATA is a a non-profit educational organization and their evidence is in the public.

And speaking of ignorance, one perfect example is saying we're at ANY kind of gold price extreme when gold hasn't even reached 50% of its inflation adjusted high of 1980...and that's using the Bureau of Lying Statistics' totally contrived inflation numbers. Using the CPI formula historically used all the way up to the new formula contrived during the Clinton administration (as a way to limit costs of COLA in entitlements), we'd have to hit somewhere around $6500 to actually match that peak number, and that's not taking into consideration at all the otherworldly amt of new "money"...funny munny...green paper / electronic dollars created by the Fed over that time, and esp. over the past two years.

Di...put your money where your uninformed fingers are...I'll gladly bet you $50,000 gold hits $1500 before $500...and another $50,000 that it never sees $500 again over the next 5 years (I'd say lifetime, but it's a hard bet to collect). However you'd want to set up that bet...I'll take it. But you won't b/c it's just so easy to write that kind of drivel on a board like this...backed by nothing. Go read GATA's evidence and then come back here and tell me they don't know what they're talking about...jt

January 5, 2010 | Unregistered Commenterjt

I've been happy to be mad...ever since Feb of '02.

If you'll indulge me on two quick points. JT is right in my book. Only those who haven't looked at the GATA case can breezily dismiss it with a wave of the hand. Disagree...yes, but not dismiss without making reasoned counterarguments. Good luck. I've looked at the evidence closely. I've also seen how consistent the alleged behavior is with the way the government, the Fed (the Central banks), Morgan (the bullion banks), and their co-conspirator, Barrick, have typically operated. I'm convinced. But I don't KNOW that I'm right. If I'm wrong, I expect to pay a price for making a misjudgment.

If someone else isn't convinced and wants to offer a cogent counterargument, that's great. I want to know where the flaws are in the presentation of the case. Give me specifics and we can have a dialogue. Otherwise, shut up and stop wasting my time.

As for predictions:

I've learned that I actually don't know what's gonna happen in the markets. Go figure. And I don't listen to anyone who doesn't have an established track record make predictions anymore. What's the point? It's just noise. Just guessing.

I would suggest that if you do actual trading, as opposed to just talking about it, you'll quickly realize that just about anything can happen and your certainty evaporates. That hasn't kept me from consistently making a boatload of money. It hasn't even been that hard. My approach, which many take, is to keep a core position in the physical metal and some of the best, most undervalued mining stocks. Hold as long as the macrotrend is intact and the Powerz That Be hold to their current suicidal course. Trade the emotional extremes with your speculative money. (I mostly use credit spreads on growing midtier producers.) My mantra is "sell to the starry-eyed...buy from the petrified." Rake the table when the chips are there to be raked.

This isn't about being right. It's about making money and protecting what you have. For that, gold and silver are the perfect vehicles. And the fine gentlemen who run this site help give you the insights you need to make money in the way outlined above. They're good. Maybe I like 'em so much, because they think a lot like I do, but one thing's clear. They get it. They understand what I just outlined above. That's why I value what they have to say. They also have a track record of getting it right. Like anyone who strides into the arena, they make mistakes, but I'll trade alongside them anyday.

Thanks fellas. I appreciate what you do.

TW

January 5, 2010 | Unregistered Commenterfallingman

Di...below 500 in 2 years?! You are so comical! Thanks for the good laugh! Make a little effort like these gentlemen above are saying and maybe you won't eat your shorts.
SJM

January 5, 2010 | Unregistered CommenterSnakeman

Ooops...I meant debit spreads above on my previous post...not credit spreads. I buy in-the-money options and sell at-the-money or out of-the-money options against them....creating the debit spread. The time premia are low on the ones I buy and rich on the ones I sell. And the low cash outlay provides leverage with fairly low risk. You can make a lot without depending on timely upmoves in the underlying. What's not to like?

Credit spreads are fine for downward trending markets and you can play countertrend moves with 'em, but you know what they say..."never short a bull market," so I haven't used them in the mining stocks these last few years. Sorry about that typo.

January 5, 2010 | Unregistered Commenterfallingman

By MarketWatch

WASHINGTON (MarketWatch) -- The massive stock-market rally in the past nine months is mostly due to secret government buying of stock-index futures, a respected stock-market analyst said Tuesday.

Charles Biderman, chief executive of TrimTabs Investment Research, is the latest and most credible person to charge that the Federal Reserve and the Treasury (in league with top Wall Street firms) is rigging the stock market on a daily basis.

Not just gold then! To read the whole article please use this link:

http://www.marketwatch.com/story/time-for-fed-to-disprove-ppt-conspiracy-theory-2010-01-05

January 5, 2010 | Unregistered CommenterGold Prices

Hallelujah!! It's about time.

January 6, 2010 | Unregistered CommenterRainne Ranger

GP...you're absolutely correct. In fact, Chris Powell, the secy of GATA, said as much in a speech less than a year ago: "There are no more free markets, just interventions." But the manipulation of the gold/silver markets...the suppression of the prices of gold and silver, thru various means outlined by GATA in detail, has been the lynchpin to the whole thing. It's shooting the messenger...killing the canary in the mineshaft. But these types of manipulations all and always end the same way...in disaster, with the price of that which was manipulated heading precipitously in the opposite direction once the manipulation is done.

W/rt to the stock market, on the other hand, there may not be a plunge, if we are indeed heading at some point (?within the next two years) into hyperinflation. Go look at what happened to the stockmarket in the Weimar Republic. It continued to climb higher and higher and higher...right up until the moment the currency was declared worthless. So your shares of stock were worth 100's of times what you'd paid for them...but unfortunately in worthless currency money. I think the same happened in Zimbabwe recently.

We need free markets...but the only way that will happen is to take control of them away from those who now have control over them. And that is the Fed and the Treasury...under the control of the banksters, the likes of JPMorgain4Elites and Government Sachs. The CFTC does nothing in the gold/silver markets. The SEC is a willingly blind policer of the stock markets. All must be taken back and put under the control of WeThePeople...jt

January 6, 2010 | Unregistered Commenterjt

In order for gold to go to $500, then the cost of mining an ounce would have to be less than 500. In which case every single gold stock would be making huge profits, paying big divs and the stock prices would be rocketing.

January 10, 2010 | Unregistered CommenterOwen

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