- PRINCETON, NJ - Reg Howe's
audacious case against the "gold cabal" has been dismissed in
Federal Court before it could proceed to the all important discovery stage
which had everyone licking their chops about what might be revealed in
individual depositions. The nub of Boston District Judge Reginald Lindsay's
ruling was that Howe is an "inappropriate plaintiff". It is an
ironic conclusion given that justice is supposedly blind to status and
means; but never let hope get in the way of cynicism.
An unintended consequence of the dismissal is that it will embolden Treasury
and Fed officials to invoke sovereign immunity when they "manage markets".
This will be especially critical as the central bankers move toward running
national reserves as fully fledged commercial portfolios.
If you are a conspiracist, you will take solace in the fact that Howe lost
on shameless technicalities. If you have no care for the gold cabal, then
you will delight in the fact that the defendants did not even bother themselves
with the accusations, but zeroed in on Howe's "lack of standing."
Yes, law always triumphs over justice.
The Judge agreed with the defendants that Howe could only claim injury
if he dealt directly in the gold market. Being a shareholder is not good
enough, being a share issuer (such as a gold producer) is though.
Simply put, the Judge thinks Howe is being privately melodramatic in the
absence of support from gold mining companies: "there are many participants
in the gold and gold derivatives markets who could allege a more direct
injury than does the plaintiff. For example, there are many gold mining
companies and private investors in gold (not to mention those central banks
with gold reserves) that the plaintiff does not allege to be involved in
the conspiracy. All of these persons or entities would be more directly
injured than the plaintiff by a scheme of the kind he alleges."
Judge Lindsay dismissed the attempt to sue government officials in their
individual capacities, citing a clutch of previous circuit court rulings.
The implication is that government officials can be certain that virtually
any decision of theirs is going to be backed up in court with taxpayer
funds. It is a powerful disincentive for future lawsuits since it confirms
that the government itself must be sued. As Microsoft discovered, the U.S.
Department of Justice spares no expense once it embarks on a crusade.
Is it any wonder that power inevitable accumulates in a central government
when it is afforded such legal latitude (and can sweep away any offensive
challenge at a penstroke)? You're out on strikes before you leave the dugout.
Judge Lindsay had sympathy with the defendants, based on clauses in the
United States Code, that Federal Reserve officials and the Secretary of
the Treasury are fully entitled to trade in gold. Howe would have had a
mountain to climb to prove that such trade was wrongful, assuming he could
prove beyond all doubt that it even took place.
"This [qualified executive] immunity shields "government officials
performing discretionary functions ... from liability for civil damages
insofar as their conduct does not violate clearly established statutory
or constitutional rights of which a reasonable person would have known."
Government officials are held to a low standard; they must merely assert
that they "believe their actions lawful" for it to be so.
The rest of the judgement is taken up with the details of the allegations
against the Bank for International Settlements, which were also rejected.
With Howe's case dead in the water, Gata's profile is likely to founder.
It has already turned its back on the American media after failing to secure
mainstream coverage, and has alienated the corporations that hold the key
to taking over Howe's case.
Gata critics have also been handed a huge club with which to beat conspiracists
about the ears with. The organisation's most passionate supporters have
been eagerly spreading the message that Howe's case would "blow the
lid off the gold conspiracy" and send the price of gold soaring. It
is a harsh anti-climax and Gata must restrain its supporters from resorting
to the cheapest and easiest trick accusing the judge of being a party to
the conspiracy.
|
