GATA Confirms Central “Banks” Gold Suppression Since At Least Mid-1970’s

“The Gerald Ford Presidential Library in Ann Arbor, Michigan, has confirmed the authenticity of the letter written to the president by Federal Reserve Board Chairman Arthur Burns on June 3, 1975, revealing the participation of the West German central bank, the Bundesbank, and the chancellor of West Germany at that time, Helmut Schmidt, in the international gold price suppression scheme.”

http://gata.org/node/10686

Think about it: if you’re in the business of “loaning” paper currency that you create out of nothing, gold and silver are the enemy.  The central banks have for decades been waging a secret war against the centuries long acceptance of gold and silver as money.  The need for this campaign is the best evidence that their debt-based fiat currency is on shaky ground, and its’ exposure will hasten its demise.

Take a look at the negative gold lease rates on the left side of kitco.com.  The central banks are PAYING investment banks to borrow gold to sell on the open market in order to drive down the price.  The investment bankers then use the proceeds to buy US treasuries and collect interest.  It’s an insiders’ game that’s been going on for years.  What do you think will happen if these loans come due?  The investors won’t be able to buy back the gold to pay off the loan without making the price skyrocket.  The loans will default, the central banks will be exposed as empty suits and gold will re-emerge as real money.  This is why the central banks never intend to call in the gold loans.  This is why they are so secretive about how much gold they actually have in their vaults. It amounts to yet another huge theft of public assets, courtesy of the federal reserve and its cohorts on wall street.

But the point to take away from all this is that ANYTHING with government sanction can be used as money.  Lincoln (re-) discovered this during the civil war with his greenbacks.  So why are we paying $400B/year in interest payments on the so-called federal debt, when we could nationalize the fed, abolish fractional reserve banking and its resultant boom-bust cycles, use the proceeds to pay off the debt and take control of our own money?  For starters, we could have the new publicly owned national central bank issue zero interest loans to re-industrialize the USA.   The american revolution would finally be complete.  We wouldn’t need endless war and colossal waste and destruction to control inflation.  We could achieve a steady-state, sustainable economy where everyone has a job and inflation and recessions would be a thing of the past.  It could happen.  It will happen, sooner or later.

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