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XMFSinchiruna (27.57)

GATA: The Federal Reserve Admits Existence of Previously Denied Gold Swaps



September 23, 2009 – Comments (3)

The evidence of coordinated suppression and manipulation of the gold price by central banks and their minion bullion banks continues to mount, and this is due in no small part to the exhaustive investigations conducted by GATA over the past decade.

"The Federal Reserve System has disclosed to GATA that it has gold swap arrangements with foreign banks that it does not want the public to know about."

"The disclosure contradicts denials provided by the Fed to GATA in 2001 and suggests that the Fed is indeed very much involved in the surreptitious international central bank manipulation of the gold price particularly and the currency markets generally."

In response to a freedom of information act request by GATA for documents pertaining to the FED's purported gold swaps with foreign central banks, GATA counsel received a letter from Federal Reserve Board member Kevin Warsh that justified denial of the request as follows:

"In connection with your appeal, I have confirmed that the information withheld under Exemption 4 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."

Mr. Warsh, by the way, is also a former member of the President's Working Group on Financial Markets, which is also known by its more honest euphemism: the Plunge Protection Team.

That, fellow Fools, is what a smoking gun looks like. Ponder the implications.

3 Comments – Post Your Own

#1) On September 23, 2009 at 9:13 AM, GeneralDemon (< 20) wrote:

What, the FED is engaged in actions designed to prop up the dollar? You're kidding me right? They would never do that.

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#2) On September 23, 2009 at 2:56 PM, XMFSinchiruna (27.57) wrote:

Speaking of smoking guns ... here's one concerning Moody's credit ratings.

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#3) On September 23, 2009 at 3:07 PM, TMFBent (99.77) wrote:

I hear hoofbeats outside, but I don't conclude that it must be a zebra. Does not the refusal simply say that the Fed is properly withholding information on swap agreements? Why must the conclusion then be that there is evidence of gold swaps? If I ask the Fed for information on whether or not Bernanke has killed a man with his bare hands and it replies "we're not going to tell you that," it doesn't mean he has.

Or am I missing something (besided the desire to believe that gold is yet another victim of a massive market conspiracy...)


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