Fed 'probably' manipulates gold, seeks to 'destroy' it, Ron Paul tells Kitco News

Section:

8p Tuesday, August 24, 2010

Dear Friend of GATA and Gold:

Gold's price is "probably" suppressed surreptitously by the Federal Reserve, U.S. Rep. Ron Paul, R-Texas, remarked today in an interview with Daniela Cambone of Kitco News.

Seeming to refer to GATA, with which he has had regular contact in recent years, Paul told Kitco News in regard to gold price manipulation:

"I am not the one to lay out proof of this. Others have done a lot of investigation. One of the reasons I don't dwell on that is they are not going to listen to us. But I think it is very important somebody talks about it and emphasizes it just as a warning to be careful. You don't have to only anticipate what the markets are doing, but you have to anticipate what the government is doing."

Referring to the decade prior to the repudiation of dollar convertibility into gold by the United States in 1971, Paul said: "We printed money like currency. We printed too many dollars against the gold. So they said, 'We will take your gold.' ... If they are capable of that, they are capable of doing this [manipulation] as well, because they don't want their cover blown."

If the markets are saying not to trust paper money, Paul told Kitco, the government has to do everything it can to "destroy gold."

Federal Reserve officials "know gold is important," Paul said. "I think they are quite willing to manipulate it. That is the only way they can maintain this false illusion about gold.

"If they are involved" in gold price manipulation, Paul asked, "isn't it pretty amazing what has happened in past year? What will happen if they throw in the towel?"

Well, if that happens, for starters GATA will have one helluva party and will invite Paul to be keynote speaker.

The Kitco News interview with Paul is headlined "Ron Paul Calls for Audit of U.S. Gold Reserves" and you can find it here:

http://www.kitco.com/reports/KitcoNews20100824DC.html

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



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Prophecy to Become Coal Producer This Year
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Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.

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