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Bank of England falsified gold data to rig interest rates from 1925-31

Section: Daily Dispatches

1:53a ET Sunday, February 14, 2010

Dear Friend of GATA and gold:

Zero Hedge's pseudonymous Tyler Durden, less well known as Dan Ivandjiiski, yesterday disclosed a scholarly paper written by University of Tennessee economics professor John R. Garrett and published by the Journal of Economic History in September 1995 describing the Bank of England's falsification of gold holdings data, undertaken with the help of the U.S. Federal Reserve, to deceive the markets and manipulate interest rates secretly between 1925 and 1931.

Of course the ends of this deception and manipulation of gold data are the same that GATA long has been asserting for the contemporary gold price suppression scheme. The falsification of gold holdings data by the Bank of England as reported by Professor Garrett is mirrored perfectly by the data-falsification and market-manipulation scheme described in the April 1961 memorandum kept in the archive of former Fed Chairman William McChesney Martin, about which GATA consultant James Turk wrote at length in January 2009:

Durden/Ivandjiiski asks:

"Why did the Bank of England openly and flagrantly manipulate critical data? Why did it mislead the citizens of the country it was supposed to serve? And if this happened in the past, is it happening now? Is this the reason why the Federal Reserve is so opposed to exposing itself to public scrutiny and audits? If the Bank of England was engaging in outright fraud in the 1925-1931 period, why would today be any different?"

Durden/Ivandjiiski concludes:

"If after reading this historical evidence of central banking treason, senators are unable to pass Ron Paul's Fed transparency act, then there has to be open social action to clean out the Senate of all those who claim that the Fed's actions are pure and true, as they are merely corrupt cronies, bought entirely by interests of the Federal Reserve, and thus Wall Street."

So once again it has been established that deception and secret market manipulation are primary tools of central banking, particularly in regard to gold, and that it is all just a matter of long history and public record -- albeit history and public record that cannot be discussed in polite company, or at least not in the mainstream financial news media.

You can find Durden/Ivanjiiski's commentary, headlined "Exclusive: The Bank Of England Engaged In Flagrant Gold Manipulation in the Interwar Period via the New York Fed; Does History Repeat Itself?," along with Professor Garrett's study, at the Zero Hedge Internet site here:

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

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