GATA and its lawsuit vs. Federal Reserve

Gold Newsletter urges support for GATA and its lawsuit vs. Fed

Submitted by cpowell on Thu, 2009-10-01 17:35. Section: Daily Dispatches

1:40p ET Thursday, October 1, 2009

Dear Friend of GATA and Gold:

The September 30 alert of Brien Lundin's Gold Newsletter contained a wonderful endorsement of GATA's work and a call to support GATA financially as we undertake our freedom-of-information lawsuit against the Federal Reserve. Gold Newsletter's endorsement is appended. You can find out about Gold Newsletter and obtain a free sample copy here:

http://www.goldnewsletter.com/free_sample.html

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

Fed Admits Hiding Gold Swap Arrangements

By Brien Lundin
Gold Newsletter Alert 527
Wednesday, September 30, 2009
http://www.GoldNewsletter.com

Our friends at the Gold Anti-Trust Action Committee (GATA) have scored another huge coup: In response to a freedom-of-information request, the Fed has essentially admitted that it has gold swap agreements with foreign banks that it doesn't want publically acknowledged.

GATA had requested from the Fed any information or correspondence on gold swaps, transactions in which monetary gold is temporarily exchanged between central banks or between central banks and bullion banks.

But GATA's request was denied. And the organization's appeal was answered by a September 17 letter from Federal Reserve Board member Kevin M. Warsh, who was formerly a member of the President's Working Group on Financial Markets.

Warsh wrote that "in connection with your appeal, I have confirmed that the information withheld under Exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of Exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you."

As GATA secretary and co-founder Chris Powell notes, "The disclosure contradicts denials provided by the Fed to GATA in 2001 and suggests that the Fed is indeed very much
involved in the surreptitious international central bank manipulation of the gold price particularly and the currency markets generally."

GATA has the right to further appeal through the legal system, and plans to do exactly that. A federal lawsuit will be quite expensive but well worth it for gold investors who need market transparency to unlock gold's true value in today's uncertain world.

As you may know, I've never been a big believer in day-to-day manipulation of the gold market by the "powers that be." But I do believe that governments have and are acting
over the long term to keep gold in chains. They've done it before, both covertly and openly. And they currently manipulate every other investment market. So why wouldn't they also do it in gold, the very measuring gauge of their performance?

So I urge all serious gold and resource stock investors to help GATA out. It's not just their cause -- it's all of ours.

GATA is recognized by the U.S. Internal Revenue Service as a nonprofit educational and civil rights organization and contributions to it are federally tax-deductible in the United States.

Just as important, you can help by bringing this issue to the attention of news organizations and other investors. With the U.S. dollar at a crucial turning point, and with the International Monetary Fund and other official organs needing to keep the gold price suppressed, it has never been more important to make the gold market open, transparent, and honest again. To learn more about GATA, this issue and how to donate, visit www.gata.org.