Thursday, June 02, 2005

Alan Greenspan on Gold Price Manipulation

Congressman Ron Paul of Texas asking Alan Greenspan the US Federal Reserve Chairman about gold price manipulation by the western central banks:

Dr. Ron Paul:
Even if the central banks, who are the major holders of gold, are willing to sell gold in order to manipulate the price or hold the price at a certain level? We are not on a gold standard, so what would the motivation be?

Mr. Alan Greenspan: They are not doing it for purposes of fixing the gold price. They are looking for it to reduce their stock of gold when they have sold on the grounds that: one, it costs to store the gold; and, two, it didn't obtain any interest. So they perceived it to be a poor asset to hold. But the purpose was not to manipulate the price of gold.

Why is Alan Greenspan speaking on behalf of foreign central banks as to what those countries' motivations are for selling their gold?

Why is Alan Greenspan actually stating on their behalf that their purpose in doing so is not to control the price of gold?

How does he have such total knowledge of the actions of Foreign Central banks?

Why does he have the authority to testify before congress as to the thinking and motivation of foreign central banks' activities in the gold market?

Not to mention act in effect as their defense counsel.

The private Gold Antitrust Action Committee GATA has uncovered evidence suggesting that the Federal Reserve and the Treasury department, operating through the Exchange-Stabilization fund and in cooperation with the International Monetary Fund, have been systematically working to deflate the price of gold. Because rising gold prices are seen by investors as a barometer of inflation, the Fed has purportedly suppressed prices to disguise the true nature of the financial bubble of the 1990s.

Congressman Ron Paul said in a Media Release in 2002 "The Fed wants all of us to think the stock market is not overvalued, and that credit and monetary expansion can create lasting prosperity" he went on to say "gold prices should always serve as an unbiased indicator of the true health of world markets."

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