The Signs Swirl All Around Us, so Is the Monetary Reset at Hand? Reply

By Chris Powell

For most of this decade owning gold and gold-related investments has required the patience of Job, and the sector is so obscure that it is hard to be sure of anything.

But for months now the unusual developments have been piling up so much that it may be possible to regain some optimism.

There are indications of a shortage of metal not just at the New York Commodities Exchange, where for months now most contracts have been settled through a supposedly “emergency” procedure called “exchange for physicals,” but also in London, the hub of the world gold market, where the usual flow of metal to Switzerland recently reversed, with metal flowing back to London amid increasing demand.

This corresponded with announcements of gold acquisitions by central banks that had not shown any interest in gold.

For months, the usual central bank-inspired smashes in the gold futures markets have not been having much effect, even as Gold Anti-Trust Action Committee (GATA) consultant Robert Lambourne has reported increasing intervention in the market by the Bank for International Settlements

The Comex has just quickly authorized a vast expansion in what bullion banks can use as collateral for their selling – “pledged gold” held off the exchange, supposedly in London, for whose existence and unimpairment there is no public evidence.

More…

Congressman Prods Attorney General on Gold, Silver Trading Questions Ignored by CFTC Reply

By Chris Powell, Money Metals Exchange

A U.S. representative who has been pressing the Treasury Department, Federal Reserve, and Commodity Futures Trading Commission (CFTC) with questions about the gold and silver markets has asked Attorney General William P. Barr to try intervene and get answers from the commission.

FTC Logo

In a letter dated November 1 and made public today, the U.S. representative, Alex W. Mooney, Republican of West Virginia, commends Barr for the Justice Department’s recent criminal prosecution of manipulation in the monetary metals futures markets.

But Mooney calls attention to the explosion in use of a mechanism called “exchange for physicals” for settling metals futures contracts in the United States, a mechanism that, Mooney contends, may pose “some danger of a systemic issue” if, as seems to be the case, those settlements are being transferred to European markets.

Further, Mooney complains to the attorney general that the CFTC is “apparently unwilling to answer a few straightforward questions which I and others have repeatedly posed, including questions about unusual activity” in the exchange for physicals mechanism.

Mooney questioned the CFTC in a letter sent February 5, echoing questions already posed by GATA and ignored by the commission.

The commission has not replied to him despite repeated inquiries.

“Given the CFTC’s delays in answering questions about these notable developments,” Mooney writes in his letter to the attorney general, “I would like the Department of Justice to examine the matter and provide me with the scope and purpose of EFP use, its legality, and whether full disclosure of EFP activity is (or should be) required.”

“Additionally, please let me know whether the CFTC’s jurisdiction extends to trading by the U.S. government and/or its agents or if such activity is exempt from oversight.

“With the recent explosion in EFPs,” Mooney concludes, “the CFTC’s failure to detect and/or prosecute criminal manipulation by participants in the precious metals markets is disturbing and needs to be addressed.”

Like GATA’s, Mooney’s inquiries seek to determine if the U.S. government or its agents are trading in the monetary metals markets for currency market rigging purposes and if such trading is subject to ordinary antitrust and commodity trading law and CFTC jurisdiction or is exempt under the Gold Reserve Act of 1934 as amended since then.

Mooney’s letter to the attorney general is reproduced in full here.

We urge U.S. citizens to write to their own members of Congress calling attention to Mooney’s letter and asking them to make similar requests for information from the attorney general and the CFTC.

Chris Powell is a political columnist and former managing editor at the Journal Inquirer, a daily newspaper in Manchester, Connecticut, USA, where he has worked since graduating from high school in 1967. His column published in newspapers throughout Connecticut. He is also secretary/treasurer of the Gold Anti-Trust Action Committee Inc., (GATA) which he co-founded in 1999 to expose and oppose the rigging of the gold marker by Western central banks and their investment bank agents.