c/o Bloomberg News, New York
Dear Mr. Dillian:
This is in response to your commentary today at Bloomberg about gold's "strange behavior":
You write that "lots of smart and very rational people believe that the price of gold is manipulated." But it's more than that. People believe this not so much because they are "smart and very rational" as because it has been extensively documented, as by my organization, the Gold Anti-Trust Action Committee Inc.
GATA long has detailed the U.S. government and allied government policy of constantly intervening, largely surreptitiously, against the monetary metal's price through various mechanisms, primarily involving the futures markets and derivatives. An extensive summary of the price suppression and its objectives can be found here:
Mainstream financial news organizations, including Bloomberg, assist this policy by refusing to acknowledge and report the documentation and to question government agencies about the intervention, no matter how obvious the intervention becomes.
For example, please note that the U.S. Commodity Futures Trading Commission refuses to answer whether it has jurisdiction over manipulative futures trading undertaken by or at the behest of the U.S. government or whether such trading is authorized by the Gold Reserve Act of 1934 as amended since then. The CFTC has refused to answer this question not only for my organization but also for a member of Congress, U.S. Rep. Alex Mooney, R-West Virginia.
Refusing to answer it for you and Bloomberg, an international news agency, might be more of a problem.
Additionally, CME Group, operator of the major U.S. futures exchanges, maintains, in plain sight, a special mechanism for official but surreptitious manipulation of all its futures markets, its Central Bank Incentive Program.
I know that pursuing such matters might pose risks for market analysts like yourself. But it would be public service on behalf of free and transparent markets, limited and accountable government, and fairness among nations, as well as fairness to ordinary investors.
Of course I'd be glad to provide more information.
Thanks for your consideration.
With good wishes.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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