Gold market is manipulated even before central banks get involved

Section:

9:35p ET Wednesday, May 18, 2005

Dear Friend of GATA and Gold:

In his new essay "Pirates Reprise," Ron Kirby reports
that the U.S. Treasury Department has quietly altered
its records of the U.S. government bonds held by
foreign entities. As a result, the value of bonds
reported held by Japan and China has fallen sharply
while the value of bonds reported held by Britain and
Caribbean banks has risen just as sharply.

The conclusion is not just that the two biggest Asian
central banks have stopped buying U.S. debt but also
that the closest ally of the United States, Britain,
has been recruited to pick up the slack, or at least
to pretend to do so on paper, along with the U.S.
government's own monetization of the bonds via the
Caribbean bank purchases.

Kirby writes: "Economic history has apparently been
rewritten. The inconsistencies and conflicting data
being fed to us by officialdom are brazenly astonishing.
In the month of January 2005 alone, Japan's holdings
of U.S. securities have been retro-altered to the tune
of more than $20 billion, China's by close to $30 billion,
and the United Kingdom's by more than $60 billion.
Can any of us really believe anything these folks have
to say? Imagine, a restatement of this magnitude without
as much as an explanatory footnote or a press release.
Somehow none of this is even deemed to be newsworthy?
What's beginning to scare me: If the U.S. Treasury tells
us the world is flat, what happens to the South Pole?"

You can find Kirby's report at FinancialSense.com here:

http://www.financialsense.com/fsu/editorials/kirby/2005/0518.html

Also at FinancialSense.com, Mike Hartman elaborates
on the surreptitious but increasingly obvious intervention
of the U.S. government in the markets. Referring to GATA's
chairman, Hartman writes:

"I believe Bill Murphy's claims are true. The Fed openly
stated they would use unconventional means to defend
our system from a deflationary meltdown. I firmly believe
they are using the unconventional means they described;
they just haven't bothered to tell us what they are really
doing behind the scenes. Even Richard Russell recently
said he believed the Fed was buying stock futures to
prop up the Dow whenever it reached the critical 10,000
level. The internet is littered with evidence of market
manipulations by the authorities. This screams of
desperation, but they must feel justified in what they are
doing for the sake of national security. Protect the U.S.
dollar, stocks, and Treasuries at all costs ... even if you
have to do it via subsidiary 'shell companies' in the
Cayman and Caribbean Islands."

You can find Hartman's commentary, "Battleground:
Paper Vs. Things," in Financial Sense's "Market
Wrapup" section here:

http://www.financialsense.com/Market/wrapup.htm

Just remember that the "Market Wrapup" section
updates each week and in a few days the link will
take you to a new commentary and you'll have to
go into the section's archive to find this particular
commentary.

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

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