Alasdair Macleod: BIS swaps may be last gamble to suppress gold price

Section:

11:10p ET Thursday, August 2, 2010

Dear Friend of GATA and Gold:

Economist and former banker Alasdair Macleod today published some insightful speculation about the cover story put out by the Bank for International Settlements through the Financial Times about the bank's recent surreptitious gold swaps.

Macleod figures that an honest explanation by the BIS and its accomplices at the European Central Bank might go like this:

"The committee is aware of a general increase in the bullion liabilities of banks in the Euro area and is working with the ECB and relevant European central banks to ease market shortages."

Macleod writes: "The reason we will never get the truth this plainly is that any such admission would be rocket fuel to the gold price, bring on the bankruptcy of the bullion banks and the concomitant collapse of all paper currencies."

For the European central bankers to put so much more gold into the market "when China, Russia, India, and other nations are aggressively accumulating it and the ability of the bullion banks to return swapped or leased gold to its actual owners is one hell of a gamble," Macleod concludes. "We have probably just witnessed the last throw of the dice in the European central banks' attempts to suppress the gold price."

Macleod's analysis is headlined "The Gold Market and the BIS" and you can find it at his Internet site, Finance and Economics, here:

http://www.financeandeconomics.org/Articles%20archive/2010.08.02%20GoldB...

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



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