The GATA Heroes

By Marilyn Guinnane
You read how history repeats itself and how, regardless of what course society is believed to be on, the pendulum always swings back. Besides evidently encapsulating civilization in a type of time warp, pendulums are boring. At least staccato rhythm is interesting, but let's move on to an example rather than digress, as it's easy to go off on a tangent about pulses and beats and how there's rhythm to the universe, yes a pulse, an inhaling and exhaling, that offers the old dull pendulum a touch of respectability, after all. Even so, since this piece is about gold, believe it or not, and the blatant manipulation of its price, and the very valiant Gold Anti-Trust Action Committee, we'll begin to weave a bit of history into GATA's tapestry by way of preamble.
There was this fellow John Law (1671-1729) on the lam from same, who, Scottish by birth, settled in France and, long story hacked to pieces, started the fiat money skullduggery. John Law asserted that if the government needed money all it really had to do to obtain it was print it! Why go to the trouble and expense of mining gold or silver - what was the point when it wasn't necessary? So France goes off the gold standard and all is well, or should I say wealth, for a time.
But of course firing up the presses is all too easy and before you can say Rive Gauche, French francs are everywhere (and U.S. dollars these days, as history has indeed repeated itself) inflation is rampant; what once cost a centime overnight costs ten francs, so that the people are being robbed of their wealth, just as, again, we are being robbed of our own wealth today. Fiat money simply cannot work, long term. It will always implode. In fact, our U.S. dollar has already begun to demonstrate its fragility.
When John Law's foolhardy money scheme fell apart like a paper boat on the Seine, the French franc became next to worthless, so that John Law went from hero status to persona non grata in the flick of an eye, just as Sir Alan will in the months ahead, (even if Greenspan isn't wholly to blame.) Events resulting from Law's money fiasco eventually escorted in the French Revolution, and we must think that the same could easily happen in the U.S. People can just be so damn fickle when their jobs disappear and they're hungry. A sort of mob mentality rears its ugly head when children cry out for food and a whole boxcar of worthless paper money won't buy a crust of bread.
"Fiat money didn't work in the past," goes the Fed's motto, "So let's try it again!" Though they of course knew it was doomed to fail, for what this is really all about is bringing the once mighty USA to her knees so that her sovereignty will be stripped from her and she'll fit right into the totalitarian New World Order. Sir Alan will probably step down before he has to take any heat, but not before he reminds us that it was Nixon who retired gold from our then (barely) honest currency, " . . . so please! None of this is my fault already." He will not mention that Nixon wasn't acting of his own volition, that no president does, including the mental and moral midget currently residing at 1600 Pennsylvania Avenue. Nor does anyone in the public eye ever make a big point out of the fact that the Federal Reserve is a privately run corporation and not connected to the federal government in reality, at all. As the third central bank in this country (we threw out the first two) it did not exist prior to 1913 and it is unconstitutional, to boot, as only Congress has the power to coin money.
That the price of gold must be held down from the unsavory Federal Reserve's viewpoint (clever, weren't they? To call this illegal enterprise "federal"?) is not difficult to comprehend when you consider that if gold is allowed to soar, it would mean that people prefer gold to currency. A skyrocketing gold price reflects badly upon the government so that they control the price rather than clip their own wings (read: curtail their own madness) by cutting back on the printing press money.
Under the gold standard, if a government overspent, people would turn in the currency in return for the gold that backed it. Loss of gold would soon cause the government to employ moderate spending. Less spending, less debt, of course. Without the gold standard, government has no realistic control on spending so that the financial obligations rise as ours have, to the tune of thirty-seven trillion dollars. Let's write that out numerically, to get a better mental grip of what we're facing: $37,000,000,000,000! Can you even begin to fathom such a figure? In unison: "We're in major trouble!" Yes indeed.
To continue, if left alone, the gold price would rise as this phenomenal debt continues heading for Jupiter. So the price of gold is held down artificially, in order for the government to state that inflation is under control, when, of course, it is obviously not under control. But wait, are we not supposed to have free markets?
Gold is historically "the" safe harbor. If the price of it were on the move, it would become a Mecca for investors, for it would signal trouble at our doorstep. (It isn't just 'trouble' at our doorstep, people; it's the economic Grim Reaper and he has come for our dollar.) Rising gold tells the world that the government is overextended. It reveals that inflation is occurring. It says that the currency is not worth what it was, and is being depreciated. It underscores the fact that fiat currency has nothing tangible backing it. Nothing.
Now, the way the price of gold is controlled is by bullion banks leasing gold from Central Banks, so the bullion banks have the gold to sell into the market and hold the POG down. Fifteen thousand tons or so are "short," meaning borrowed. (Interestingly enough, an independent audit of Ft. Knox has been disallowed by our government since the Eisenhower Administration in the fifties, which leads you to wonder . . . Is Ft. Knox empty? That gold belongs (-ed?) to the people; is it even there? A former guard was quoted as saying no, it is not. "The gold is gone," he said. If it is in fact there, why won't the government allow fan independent audit?)
Enter GATA. ( Every villain has a nemesis. Al Capone would've gone on thriving without Elliot Ness breathing down his neck, and the Sheriff of Nottingham would have gone on bullying and robbing the poor had it not been for Robin Hood. And we, the beleagured people of these United States, robbed of our wealth? We have GATA. Gold Anti-Trust Action committee.
Your homework assignment, boys and girls, is to visit that website. Your good deed for the day will be to offer GATA a donation, however small. These heroic people are fighting the good fight, and they're doing it for you.
To offer some support is the very least you can do. The very least.



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