DGC Magazine January Issue § 29

Wednesday, December 30, 2009Dear Friend of GATA and Gold:GATA today brought suit against the U.S. FederalReserve Board, seeking a court order for disclosure of the central bank’s records of its surreptitious marketintervention to suppress the monetary metal’s price.

The suit was led in U.S. District Court for the District

of Columbia and targets Fed records involving gold

swaps, exchanges of gold with foreign nancial

institutions. In a letter dated September 17 this year

to GATA’s law rm, William J. Olson P.C. of Vienna,

Virginia, (http://www.lawandfreedom.com) Fed Boardof Governors member Kevin M. Warsh acknowledgedthat the Fed has gold swap agreements with foreign banks but insisted that such documents remain secret:

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

The lawsuit follows two years of GATA’s effortsto obtain from the Federal Reserve and the U.S.Treasury Department a candid accounting of the U.S.government’s involvement in the gold market. Theseefforts parallel those of U.S. Rep. Ron Paul, R-Texas,who long has been proposing legislation to audit theFed. The Fed has wrapped in secrecy much of itsmassive intervention in the markets over the last year,and Paul’s legislation recently was approved by theU.S. House of Representatives.The Fed claims that its gold swap records involve“trade secrets” exempt from disclosure under the U.S.Freedom of Information Act.While GATA has produced many U.S. governmentrecords showing both open and surreptitiousintervention in the gold market in recent decades

GATA SueS The FederAl reServe

rqsting t F discos Go Makt Intntion rcos

ivil

Case

. 09-2436 esH

30 § DGC Magazine January Issue

http://www.rawgoldnigeria.com/

So GATA urges its friends to publicize the suit and tourge journalists, market analysts, mining companies,and members of Congress to join us in seekingdisclosure of the Fed’s gold market interventionrecords. If enough clamor is directed at the Fed aboutthese records, the gold price suppression scheme willlose its surreptitiousness and fail.Unfortunately the World Gold Council, whicheach year collects tens of millions of dollars inmembership fees from mining companies in the nameof representing them and gold investors, refusesto question governments about their surreptitiousinterventions in the gold market. These interventions

powerfully inuence not only gold’s price but the

prices of government bonds and currencies, as well asinterest rates generally and the value of all capital and(seehttp://www.gata.org/node/8052), Fed Governor

Warsh’s letter is conrmation that the government

is surreptitiously operating in the gold market in the present as well. That intervention constitutes a huge

deception of nancial markets as well as expropriation

of precious metals miners and investors particularly.This deception and expropriation are what GATA wasestablished in 1999 to expose and oppose.Of course GATA’s lawsuit against the Fed will takemonths if not years to resolve. We think we have agood chance of winning it in court. But we can winit outside court, and much sooner, if the suit can gain

enough publicity from the nancial news media and

market analysts and prompt enough inquiry fromthem and from the public, the mining industry, andmembers of Congress.