The ESF: Headquarters of gold rigging -- and all U.S. covert operations too?


9:03p ET Wednesday, June 15, 2011

Dear Friend of GATA and Gold:

If you listened closely to U.S. Rep. Ron Paul's questioning of Federal Reserve General Counsel Scott G. Alvarez at a hearing of the House Subcommittee on Domestic Monetary Policy and Technology last week, you heard Paul mention the U.S. Treasury Department's Exchange Stabilization Fund as a likely instigator of secret swaps involving the U.S. gold reserve:

GATA often has cited the ESF as a probable gold market rigger. Indeed, "Exchange Stabilization Fund" were just about the first words out of the mouth of the GATA delegation that visited House Speaker Dennis Hastert at his office at the Capitol on May 10, 2000. We complained that the U.S. government was likely using the ESF to rig various markets, including the gold market. If Hastert hadn't been so polite or discreet, he could have handed us a copy of the statute establishing the ESF -- the Gold Reserve Act of 1934 -- and asked us why we should be so indignant, and couldn't we read? For rigging the gold market particularly and other markets generally is explicitly what the ESF was created to do. The fund has the authority to "deal" in virtually anything, and in secret:

"The Department of the Treasury has a stabilization fund. ... Decisions of the Secretary are final and may not be reviewed by another officer or employee of the Government. ... Consistent with the obligations of the Government in the International Monetary Fund on orderly exchange arrangements and a stable system of exchange rates, the Secretary or an agency designated by the Secretary, with the approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities the Secretary considers necessary. ..."

Besides the president and treasury secretary, only Kitco gold market analyst Jon Nadler and CPM Group Managing Director Jeff Christian claim complete knowledge of what the ESF does, which, they insist, is nothing, but they have not yet revealed how they found out.

In the meantime, Eric de Carbonnel of the Market Skeptics letter ( has assembled a extensively researched two-part video about the ESF and has posted it at YouTube, where each section is about nine minutes long. De Carbonnel concludes that the ESF has been the nexus of U.S. government covert operations throughout the world since World War II -- gold market rigging is but a small part of the ESF's work. De Carbonnel notes that the agency never has been investigated by Congress, though perhaps Paul will aim a few critical questions its way at a hearing of his committee on June 23. (See As always, pray for Paul's health and safety.

Part 1 of De Carbonnel's video on the ESF can be found at YouTube here:

Part 2 can be found at YouTube here:

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


Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property

Company Press Release, October 27, 2010

VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:

-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.

-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.

-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.

Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface.

"The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."

For the company's full press release, please visit:

Join GATA here:

Gold Rush 2011
GATA's London Conference
Thursday-Saturday, August 4-6, 2011
Savoy Hotel, London, England

Support GATA by purchasing gold and silver commemorative coins:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:


Lewis E. Lehrman on How to Solve the U.S. Debt Problem

Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program.

Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust.

Lehrman says: "Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy.

"We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals and working people, 0 percent at the bank, you are not going to encourage them
to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust."

To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: