"What a revelation: Gold trading can rig currency markets" – This is a cynical remark

Of course gold futures trading and leasing of sovereign physical gold treasure can have substantial affect on currencies.   While the US decided to abandon the age old gold standard and begin spending whatever amount of money it wanted to borrow, gold didn't stop being money and didn't stop being a counter party free store of wealth.  

On the other hand, the government knowing this, spent years trying to lease and sell and play every trick in the book with margin requirements to keep the price of gold as low as possible.  It goes onto this day.

The mainstream author brings this up as if it were some theoretical possibility but fails to acknowledge that GATA has already shown that this has been the case for years.   Its not a hypothesis.  Its what the Working Group and related quasi-governmental operations that operate in the dark from public view do every day.   Its why it is so vital that the Audit the Fed bill pass. 

Obama is in a stronger position than he thinks to get the banks lending.   He can tell them "either start lending to small business and consumers" or I'll sign the audit the Fed bill.  I hope he does anyway.   Its time that our nation stop being controlled by a handful of banks that have been pushing Congress and the President for years.   The President will have to take on the banks directly or nothing will happen in this nation but a continuance of a jobless recovery.    Here is the original post from GATA with the links to the UPI article included:

What a revelation: Gold trading can rig currency markets

"Martin Hutchinson, business and economics editor for United Press International and regular contributor to PrudentBear.com, writes in his new commentary there, headlined "Sliding Back Towards a Gold Standard," that the Federal Reserve could regulate the dollar's value by buying and selling gold.

Hutchinson might have added that currency intervention also could be accomplished by leasing gold or by buying and selling gold futures, options, and gold derivatives.

Hutchinson's commentary is encouraging for acknowledging gold's centrality to currency intervention, and discouraging for failing to acknowledge that for years gold has been used largely surreptitiously by Western central banks for this purpose and indeed is being used for this purpose even now. But maybe he's just not yet aware of a few things — like, for starters, the Fed's recent admission to GATA that it has gold swap agreements with foreign banks and that these agreements must be kept secret:

http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf

Maybe Hutchinson could address this secrecy in his next revelatory essay.

You can find Hutchinson's new commentary at PrudentBear.com here:

http://www.prudentbear.com/index.php/thebearslairview?art_id=10318

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc."

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