Diplomatic cables disclose more conspiring by Western governments to rig gold market

Two U.S. State Department diplomatic cables from 1974 obtained by GATA researcher R.M. show Western central bank and treasury officials engaged in secret discussions — that is, conspiring — to control the price of gold and prevent any increase in its recognition as money.

The first cable was sent in May 1974 by then-Treasury Undersecretary Paul Volcker, who went on to become chairman of the Federal Reserve Board, from the U.S. embassy in Paris to the U.S. secretary of state in Washington for forwarding to another treasury undersecretary. The cable conveys a report by Netherlands Treasurer-General C.J. Oort about a meeting of European Community finance ministers in the Dutch city of Zeist on April 22 and 23.

Two proposals for controlling the gold price were discussed in Zeist, Oort wrote, according to Volcker’s cable: “One is that monetary authorities periodically fix a minimum and a maximum price below or above which they would not sell or buy on the market. The other consists in creating a buffer stock to be managed by an agent who would be charged by the monetary authorities to intervene on the market such as to ensure orderly conditions on the free market for gold.” …

The second State Department cable is dated July 1974 and appears to have been sent by the U.S. financial attache in Bonn, then West Germany’s capital, to the secretary of state in Washington with copies meant for the Treasury Department and Federal Reserve. The cable reports the financial attache’s conversation with Otmar Emminger, then vice president of the West German central bank, the Bundesbank, who went on to become the Bundesbank’s president as well. …

“Emminger said that in connection with gold he wanted to bring up one small point. Some German periodicals, particularly the Wirtschaftswoche, had reported that the recent U.S./Saudi Arabian agreement for investments in U.S. Treasury bills contained a gold clause. He knew this was not true, but if we could find occasion to make this clear it would be helpful since the supposed fact was used to argue that even the U.S. had to agree to this ‘comeback’ for gold.” …


This is all being done in the name of national interests and “modern” economic theory, but a gold standard would probably be preferable to debt-based fiat currency, which is a recipe for endless concentration of wealth.  It’s clear whose interests the suppression of the gold price serves.  But in any case a gold standard would be nearly as bad as the present system.  What we need is sovereign currency, controlled by democratic government.  See monetary.org

Senator Jekyll and General Hyde

We live under a Jekyll and Hyde government.  General Hyde picks up a chinese-manufactured plastic flag and rides into battle in distant lands to defend us against brown people who might be dimly aware of our existence, torturing and murdering innocents, bombing the countryside and pillaging resources that The Company covets and leaving desolation in his wake, then war-gaming the next conquest for his masters.   Meanwhile the right honorable Sen Jekyll stands with a gilt-edged copy of the constitution and poses for the cameras.  Now Mr. Scrooge’s austerity circus (sorry, I needed a 3rd character), “necessitated” by the hoax of “fiscal prudence” in the face of systemic wholesale fraud, theft and corruption, and the prelude to Gen. Hyde’s many fascistic takeovers in the brown world, is coming to town in the foundation of the empire, where The Company is ultimately based, legitimized and financed.  When the people finally have to admit that they’ve joined the ranks of the distant peasants whose misery they have helped to buy, and the velvet glove comes off the mailed fist, what would be first on Gen. Hyde’s domestic agenda?
If there is no domestic opposition to state sponsored mass murder and plunder abroad, the only remaining obstacle to a global takeover is russia, china and world war.  All of the staged and psych-drug-fueled school massacres of the past 2 decades will amount to nothing in comparison.  Is the second amendment an effective impediment to this process?   I don’t know, but it appears Sen Jekyll has been out playing golf with Mr. Scrooge for several years now and Gen. Hyde seems to be keeping very busy working on something in the basement.  Thus the question of why so many of these massacres are accompanied by eyewitness accounts of multiple shooters who subsequently vanish from news reports takes on a fair amount of significance.

What I don’t get is that the people who are calling for disarming the population are in all likelihood aware of the atrocities that have been committed in their names with total impunity over the years.  They might even know about the facts which have surfaced regarding the major political assassinations of the 60s and admitted false flags such as the tonkin gulf or operation northwood.  (although 9/11 and common sense haven’t yet impacted their consciousness) Yet their faith that we live under a civilized democratic government is unshakable.  But when torturers and murderers are never brought to justice, it must be assumed that torturers and murderers are running things behind the scenes.  It must be very comforting to have your head in the sand, but who’s looking out for your butt?

Virtual Money: $600T of Derivatives Backed by $600B of Real Assets

There is much debate whether when it comes to the total notional size of outstanding derivatives, it is the gross notional that matters (roughly $600 trillion), or the amount which takes out biletaral netting and other offsetting positions (much lower). We explained previously how gross is irrelevant… until it is, i.e. until there is a breach in the counterparty chain and suddenly all net becomes gross (as in the case of the Lehman bankruptcy), such as during a financial crisis, i.e., the only time when gross derivative exposure becomes material (er, by definition). But a bigger question is what is the actual collateral backing this gargantuan market which is about 10 times greater than the world’s combined GDP, because as the “derivative” name implies all this exposure is backed on some dedicated, real assets, somewhere. Luckily, the IMF recently released a discussion note titled “Shadow Banking: Economics and Policy” where quietly hidden in one of the appendices it answers precisely this critical question. The bottom line: $600 trillion in gross notional derivatives backed by a tiny $600 billion in real assets: a whopping 0.1% margin requirement! Surely nothing can possibly go wrong with this amount of unprecedented 1000x systemic leverage. …


Obamacare architect leaves White House for pharmaceutical industry job

When the legislation that became known as “Obamacare” was first drafted, the key legislator was the Democratic Chairman of the Senate Finance Committee, Max Baucus, whose committee took the lead in drafting the legislation. As Baucus himself repeatedly boasted, the architect of that legislation was Elizabeth Folwer, his chief health policy counsel; indeed, as Marcy Wheeler discovered, it was Fowler who actually drafted it. As Politico put it at the time: “If you drew an organizational chart of major players in the Senate health care negotiations, Fowler would be the chief operating officer.”

What was most amazing about all of that was that, before joining Baucus’ office as the point person for the health care bill, Fowler was the Vice President for Public Policy and External Affairs (i.e. informal lobbying) at WellPoint, the nation’s largest health insurance provider (before going to WellPoint, as well as after, Fowler had worked as Baucus’ top health care aide). And when that health care bill was drafted, the person whom Fowler replaced as chief health counsel in Baucus’ office, Michelle Easton, was lobbying for WellPoint as a principal at Tarplin, Downs, and Young.

Whatever one’s views on Obamacare were and are: the bill’s mandate that everyone purchase the products of the private health insurance industry, unaccompanied by any public alternative, was a huge gift to that industry; as Wheeler wrote at the time: “to the extent that Liz Fowler is the author of this document, we might as well consider WellPoint its author as well.” Watch the five-minute Bill Moyers report from 2009, embedded below, on the key role played in all of this by Liz Fowler and the “revolving door” between the health insurance/lobbying industry and government officials at the time this bill was written and passed. …


$8.5 Trillion Lost To Federal Reserve Scam Since 1988


All completely needless.  Think what we could have done with $8.5 T.    And it’s going to get much worse when interest rates go up.  Passing the american monetary act (monetary.org) could put an end to all of it before it gets completely out of hand.  It’s a matter of national survival.  There is no more important issue, because debt-based money feeds into all of our major societal problems, especially war, poverty and environmental destruction.