- DALLAS (Business Wire) --The
Gold Anti-Trust Action Committee (GATA) urges House Representatives on
the Financial Services Committee to join Congressmen Ron Paul (R-Texas)
and John Larson (D-Conn.) as co-sponsors of the Monetary Reform and Accountability
Act (HR 3732).
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- The bill simply requires the president and Treasury secretary
to get the approval of Congress before intervening in the gold market.
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- Treasury Secretary Paul O'Neill is on the record as being
against the bill, which seeks only transparency. GATA chairman Bill Murphy
points out, "Secretary O'Neill's response to the proposal is contrary
to the cries of an American public who are outraged over one corporate
financial scandal after another."
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- GATA has begun a grassroots information campaign tapping
its vast army of supporters. These supporters will make an effort to inform
the following Financial Services Committee members of the importance of
this issue:
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- Doug Bereuter (Nebraska), chairman Doug Ose (California),
vice chairman Marge Roukema (New Jersey) Richard H. Baker (Louisiana) Michael
N. Castle (Delaware) Jim Ryun (Kansas) Donald A. Manzullo (Illinois) Judy
Biggert (Illinois) Mark Green (Wisconsin) Patrick J. Toomey (Pennsylvania)
Christopher Shays (Connecticut) Gary G. Miller (California) Shelley Moore
Capito (West Virginia) Mike Ferguson (New Jersey) Bernard Sanders (Vermont)
Maxine Waters (California), Barney Frank (Massachusetts) Melvin L. Watt
(North Carolina) Julia Carson (Indiana) Barbara Lee (California) Paul E.
Kanjorski (Pennsylvania) Brad Sherman (California) Jan D. Schakowsky (Illinois)
Carolyn B. Maloney (New York) Luis V. Gutierrez (Illinois) Ken E. Bentsen
Jr. (Texas)
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- On February 14, 2002 Congressman Ron Paul issued a press
release that included the following:
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- "The private Gold Antitrust Action Committee held
a press conference this week to discuss federal manipulation of gold markets.
The group has uncovered evidence suggesting that the Federal Reserve and
the Treasury department, operating through the Exchange-Stabilization fund
and in cooperation with the International Monetary Fund, have been systematically
working to deflate the price of gold. Because rising gold prices are seen
by investors as a barometer of inflation, the Fed has purportedly suppressed
prices to disguise the true nature of the financial bubble of the 1990s."
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- RBC Global Investment Management Inc., a division of
Royal Bank of Canada, whose gold mutual fund is among the best performing
in the world, has also issued a report that was circulated throughout Europe
to clients and prospective clients that fully endorses the analysis of
the gold market done by the Anti-Trust Action Committee's (GATA). It concludes
that the price of gold is being manipulated.
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- The RBC report says the price of gold is going to explode
and cites "Increasing Evidence of Unsustainable Gold Price Manipulation"
as one of its reasons. The RBC report points to 11 "factors"
of evidence regarding the gold price manipulation:
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- 1) Aggressive gold lending, which from an economic perspective
is indefensible, has filled the supply/demand gap.
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- 2) New York Fed gold has been mobilized when the gold
price is rising.
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- 3) Timing of Exchange Stabilization Fund gains/losses
corresponds to gold price movements.
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- 4) Audited reports of U.S. gold reserves show unexplained
variances.
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- 5) Minutes of Fed meetings confirm officially denied
gold swaps.
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- 6) Rules on gold swaps have been revised and then denied.
However, individual central banks have repudiated the denial.
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- 7) U.S. gold reserves have recently been re-designated
twice, initially to "custodial gold" and latterly to "deep
storage gold."
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- 8) Statistical analysis of unusual gold price movements
since 1994 indicate high probability of price suppression. The invalidation
since 1995 of Gibson's Paradox -- that gold prices rise when real interest
rates fall -- suggests that the real manipulation began then.
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- 9) New York gold price movements versus London prices
trading defy odds.
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- 10) Timing of huge increases in bullion bank gold derivatives
is consistent with gold price declines.
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- 11) A rapid decline in U.S. Treasury holdings of gold-backed
SDR certificates is not explained.
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- The RBC report goes on to say: "One or two of these
factors could be viewed as random, but the full body of evidence is overwhelming."
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- The Gold Anti-Trust Action Committee has fully documented
all 11 points cited by the RBC Global Investment Management Inc. regarding
the manipulation of the price of gold. To date, no one in the gold industry
has refuted any of GATA's specific assertions.
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- "The American public and Congress are demanding
truth, full disclosure and fairness in U.S. financial markets. In that
light, all of these Congressmen and Congresswomen on the Financial Service
Committee ought to sign on to this Bill as co-sponsors," says GATA's
Bill Murphy.
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- Contact:
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- Gold Anti-Trust Action Committee Bill Murphy, 214/522-3411
LePatron@LeMetropoleCafe.com
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