Tuesday, September 29, 2009

U.S. Government Gold Manipulation Document Declassified

The Federal Reserve, in the 1970's, had a secret agreement with the German government whereby the German government agreed not to buy gold in the open market, or from other governments, at a price above the then-official U.S. government price of $42.22 per ounce, despite the fact that the open market price for gold was then trading between $160 to $175 per ounce.

The information has come to light as a result of a declassified Memorandum sent by then-Federal Reserve Chairman Arthur Burns to President Gerald Ford. The document was originally classified as "Strictly Confidential".

The document was originally posted at ZeroHedge and brought to my attention by Lori Smith. I have since verified the authenticity of the document in a conversation with the Gerald R. Ford Library archivist Mark Fischer. Although the document appears to have a declassification date stamped on it of 6-28-05, Fischer tells me that the document was declassified just recently on 9-15-09.

The document also sheds light on a disagreement between the Treasury and the Fed, whereby the Treasury was willing to accept freedom in the way governments conducted their gold transactions and the Federal Reserve was opposed. The documents shows that France was a leader in opposing a ceiling on government purchases of gold and that Burns went as far as contacting then-Secretary of State Henry Kissinger to see if some type of quid pro quo could be extracted from France if the U.S. took a less hostile position on gold accumulation.

Interestingly, the full Ford Administration had knowledge of the secret agreement with Germany. Then Secretary of the Treasury, William Simon, Kissinger, then-Chairman of the Council of Economic Avisors, Alan Greenspan, then-Director of the OMB, Jmaes Lynn, and then-Ford economic advisor, Bill Seidman, were all cc'd on the memorandum.

The entire declassified document is here.

7 comments:

  1. Your title is misleading. The Federal Reserve is NOT the U.S. government. It's a private, for profit, banking cartel.

    ReplyDelete
  2. Concur with Dan

    Here's how the thieves themselves tackle this problem


    E-mail This Page
    Fed FAQs

    Frequently asked questions about the Federal Reserve, the Dallas Fed and other related topics. You can also use our searchable Fed FAQ database to seek answers to your questions.
    Questions

    * The Federal Reserve
    o How many Federal Reserve Banks are there?
    o Who owns the Fed?
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    Answers
    The Federal Reserve
    How many Federal Reserve Banks are there?

    Twelve. Their head offices are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco.
    Who owns the Fed?

    Federal Reserve Banks, created by an act of Congress in 1913, are operated in the public interest rather than for profit or to benefit any private group. Member banks hold stock in their regional Reserve Banks, but do not control the Federal Reserve System. Holding this stock does not carry with it the control and financial interest that holding publicly traded stock allows. Fed stock cannot be sold or traded. Member banks receive a fixed 6 percent dividend annually on their stock and elect six of the nine members of the Reserve Bank’s board of directors.

    So, who owns the Fed? Although it is set up like a private corporation and member banks hold its stock, the Fed owes its existence to an act of Congress and has a mandate to serve the public. Therefore, the most accurate answer may be that the Fed is "owned" by the citizens of the United States.'



    and you can source this lie here

    http://www.dallasfed.org/faq/fedfaqs.cfm#own

    ReplyDelete
  3. Hmmm

    We isn't the Fed and its member banks being shut down. They have clearly been practicing economic
    terrorism since the Feds inception in 1913. All officers of all the member banks should be arrested and
    charged with crimes against humanity and treason. To strong a reaction? I think not.

    ReplyDelete
  4. One hand washes the other.

    ReplyDelete
  5. The agreement is in essence a commitment of the German government NOT to buy any gold whatsoever. If they are not allowed to buy on the open market, they clearly can not buy any gold at all since the US government decided earlier not to sell any of its gold at $42 or less.

    I would not call that manipulation. The US government preferred the Germans to invest into US Treasuries and not into non - interest bearing commodities like gold.

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  6. So what did the Germans get out of it? Probably nothing!

    ReplyDelete