GATA - The Great Gold Scandal

Presented to: The National Enquirer

By: Bill Murphy
Chairman Gold Anti-Trust Action Committee

Date: December 7, 2009

I am taking this to The National Enquirer because no one else in the US financial press has the gumption to explain a clandestine scandal, one which has indirectly affected every American. The Gold Anti-Trust Action Committee (GATA) was formed in January 1999 to expose a gold price suppression scheme fostered by a Gold Cartel, which includes the Federal Reserve, US Treasury, bullion banks like Goldman Sachs and JP Morgan Chase, and other entities such as The Bank of England.

In February of 1999 I was interviewed by Ron Insana on CNBC and that was the last time GATA was heard from via the US financial market press. Once they heard what GATA had to say about the rich and powerful in America, we were blackballed. The lone media exception came from outside the US, where I appeared on Bloomberg’s Asia Confidential last March and in November. It may be viewed here:

Asia Confidential - Bernie Lo interviews Bill Murphy, Chairman of GATA November 19, 2009:

http://www.youtube.com/watch?v=rw4T6IdHJ3w

http://www.youtube.com/watch?v=06_NMci4xnw

http://www.youtube.com/watch?v=OYiQZzbzeXo

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The gold price suppression scheme is not a conspiracy theory, but, in numerous instances, a matter of public record. They may be reviewed in my colleague Chris Powell’s speech in Munich in early November:

Gold suppression is public policy and public record, not 'conspiracy theory'

Submitted by cpowell on Sat, 2009-11-07 18:16. Section:

Remarks by Chris Powell, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
International Precious Metals and Commodities Show
Olympia Park, Munich, Germany
Saturday, November 7, 2009

-END-

Chris is the editor of the Journal Inquirer in Manchester, Connecticut.

As Chris explains in his presentation, the gold price suppression scheme, kicked into high gear by President Clinton’s Treasury Secretary Robert Rubin as the essence of his Strong Dollar Policy, is about the surreptitious feeding of central bank gold into the marketplace to keep US interest rates lower than where they should have been, enhancing the role of the dollar as the international reserve currency, and to foster confidence in US financial markets.

Why is this important for National Enquirer readers to know?

As a result of the Gold Cartel engineering central banks to secretly lease gold into the physical marketplace, the price was artificially kept much lower than it would have been otherwise. Their deceptive maneuvers defused the gold price as an effective barometer indicating something was going wrong in the US financial market system. Lawrence Summers, who followed Robert Rubin as US Treasury Secretary, and is now President Obama’s top economic advisor, co-authored a paper while at Harvard titled Gibson’s Paradox and the Gold Standard, in which he explained the relationship between gold and US interest rates.

After all, when the price of gold takes off, the financial media talks of what? … too much inflation, higher interest rates coming down the road, bad news for the dollar, or a crisis of some sort. A rising price of gold is bad for business for the big banks in New York and for the politicians in Washington. The problem is this clandestine gold operation directly led to the financial crisis and high unemployment mess which is affecting all Americans today. GATA was not shy about telling the world what was going on, and what was to come, because of the gold price suppression scheme. We stated the case in a full-page, $264,400, color ad in the Wall Street Journal on January 31, 2008.

In the ad we said: "This manipulation has been a primary cause of the catastrophic excesses in the markets that now threaten the whole world." … Surreptitious market manipulation is leading the world to disaster."

You many review the ad here;

We also alluded to a gold price of $3,000 to $5,000 in the years ahead. How right we have been thus far as the price of gold has soared since we placed the ad, and we were right-on about the US financial crisis which ensued as 2008 progressed. And yet, NOT ONE person of the US financial market press contacted us regarding what our ad was all about.

So, you might ask WHY is this such a scandal and why should it be of importance to your readers? There are SO MANY REASONS…

*The gold market is the worst reported on market in history. Never have so many in an industry known so little about their own product. The gold industry is working with the wrong facts because they refuse to deal with the gold price suppression scheme, its ramifications, and the correct supply/demand fundamentals. This is why GATA has been so right about what the gold price would do the last years, while most gold analysts have had it all wrong. The industry says the central banks have 30,000 tonnes of gold in their vaults. But the work of several GATA consultants has revealed the central banks have well less than HALF that amount left.

The Gold Cartel has been using this secretive feeding of gold into the physical marketplace to meet a huge supply/demand deficit. But now their supply is drying up, which is the main reason the price of gold has begun to soar. Central banks have even turned buyers, as was the case recently when the central bank of India bought 200 tonnes of gold.

In the years ahead the price of gold will have to rise to $3,000 to $5,000 per ounce to clear the market, a prediction I made publicly over four years ago. Fortunes will be made for those invested in the gold market. High karatage gold jewelry is going to be worth a LOT of money. Much is being made of the public selling their gold for cash now. I suggest they think twice about doing so at this point in time. There is a lot of money on the table here, literally.

*The actions of the Federal Reserve, such as their facilitation of the gold price scheme, have hurt the average American terribly, in favor of the big banks like JP Morgan Chase, which is well known as the Fed’s bank and Goldman Sachs, also known as Government Sachs because so many from that firm have gone on to The Treasury. Recent Treasury Secretary Hank Paulson is a prime example.

*Congressman Ron Paul has sponsored a bill before Congress to audit the Fed. 313 Congressman are supporting his efforts, but The Fed and powerful banking interests are doing what they can to stop the bill from being passed. This past week Congressman Paul was on C-Span explaining why the bill is so needed. One of the reasons he mentioned was the Fed’s secretive operations, like the Fed leasing gold in an undeclared manner.

*There is great concern in the GATA camp that much of the 8,134 tonnes of US gold reserves has been compromised … that it is gone via "swap operations." GATA has a running struggle with the Fed via our Freedom of Information Act requests to find out about these operations. Their first response was to omit and redact hundreds of pages of the pertinent information we requested. President Obama said his Administration would be much more transparent. Thus, we again requested the information regarding "gold swaps" only to be denied once more. GATA appealed the denial, which was directed to the Fed Board of Governors’ Kevin M. Warsh, who responded to our Washington lawyer, William J. Olsen saying:

"In connection with your appeal, I have confirmed that the information withheld under Exemption 4" -- that's Exemption 4 of the Freedom of Information Act -- "consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of Exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you."

So there it is: The Federal Reserve today -- right now -- has gold swap arrangements with "foreign banks," which means the US does not have the gold they say they have in their vaults to support our currency, the dollar.

*Your readers might like to know there has not been an independent audit of US gold reserves since 1955 during the Eisenhower Administration. Can you imagine anything going that long without a true audit?

*GATA has been trying to explain the real gold story for a decade, but the gold establishment and financial press have been blocking our efforts all this time. For years (some still do) they called us "conspiracy nuts," but most of what we have been talking about is panning out, including the last nine years of price rises.

The GATA camp is not without stellar credentials, having hosted three international gold conferences…

1. The GATA African Gold Summit in Durban, South Africa on May 10, 2001, attended by 5 sub-Saharan African nations, the South African Reserve Bank, leading South African gold producers, the South African unions, etc., - an event that was prime time on SABC television. It focused on how the gold price suppression scheme was hurting the poor in South Africa.

2. Gold Rush 21 in Dawson City (the Yukon in Canada) on August 8^th and 9^th 2005 to expose the manipulation of the gold market. One hundred delegates attended from 14 countries, including Andrey Bykov, an economic consultant to Russian President Vladimir Putin, who said it was the finest conference he ever attended.

While there are a lot of Johnny Come Latelies trying to explain what the gold market is doing these days, GATA has had the scoop all along, a scoop which has essentially been banned in the US public media domain. Gold Rush 21 is our finest example of what we have accomplished over the years; showing the backgrounds of the people behind it; and forecasting to the world why the gold price was going to explode over four years ago.

I point to our TWO MINUTE trailer on this extraordinary event, which can be seen at

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3. The "GATA Goes To Washington" conference on April 18 and 19 in Arlington, Virginia. 180 attendees came from 17 countries for the gathering. The conference showcased GATA’s FOIA efforts to learn the truth about US gold reserves from the Fed and US Treasury.

*When the gold scandal breaks, it will dwarf the earth shaking Madoff Ponzi scheme because of its financial implications, not only in the US, but all over the world. Harry Markopolos went to the SEC for a decade explaining that Bernie Madoff’s operation was a fraud. They paid no attention. GATA has gone to the CFTC for a decade about the gold fraud, including a meeting on December 18, 2008 with four members of the CFTC including their senior legal counsel. They have not paid attention either. But, what can we expect? The newly appointed CFTC Chairman came from Goldman Sachs.

*GATA believes the US Government would rather release nuclear bomb secrets than allow any information which would expose the gold price suppression scheme. We have gone to Washington and met with James Saxton, co-chair of the Joint Economic Committee; Dennis Hastert, Speaker of the House; Spencer Bachus, Chairman of the sub-Committee of Domestic and International Monetary Policy with gold oversight; and Speaker of the Texas House, Tom Craddick, a boyhood friend of President Bush. Mr. Craddick sent what we had to say to the President on his private fax. None of our efforts came to any fruition.

* Financial turmoil in the US is very likely to appear again in the coming months, much of it due to the aftereffects of the gold price suppression scheme. During this time, and throughout 2010, the price of gold is going to explode even further. The GATA camp recently uncovered some comments made by former Fed Chairman Alan Greenspan which he made in 1993 during a Federal Open Market Committee meeting:

Page 40 of the transcript here (Page 42 of the PDF version:

I have one other issue I'd like to throw on the table. I hesitate to do it, but let me tell you some of the issues that are involved here. If we are dealing with psychology, then the thermometers one uses to measure it have an effect. I was raising the question on the side with Governor Mullins of what would happen if the Treasury sold a little gold in this market. There's an interesting question here because if the gold price broke in that context, the thermometer would not be just a measuring tool. It would basically affect the underlying psychology."

What Greenspan was saying way back when was that by secretly putting gold into the market, it would affect the psychology of the markets, investors and the public. This was the beginning of the gold price suppression scheme. Greenspan used the word thermometer. For a decade GATA has used the word barometer to explain why The Gold Cartel was surreptitiously suppressing the price … they SHOT THE MESSENGER!

In the end, NOW, the American public has paid a terrible price for this falsely induced thermometer/barometer reduced complacency engineered by The Gold Cartel … which is a significant reason why so many Americans have been blindsided by the collapse of our markets.

WHERE IS OUR SO-CALLED FREE PRESS IN AMERICA?

It is time for the truth to be told so that Americans can prepare for what is to come and so that this sort of financial engineering nonsense, in violation of our free market principles and orchestrated by the rich and powerful in the US at the expense of the average American, never be allowed to happen again.

END.

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