Fed News Friday – Price Manipulation Lawsuit
October 29th, 2010The big monetary news this week will likely touch the fed and all central banks as it unfolds. Here is the scoop:
For a decade, the Gold Anti Trust Action committee (GATA) has been gathering evidence in support of its thesis. Their case boils down to the banks’ using naked short positions and derivatives to artificially suppress the price of silver and gold on the open market. This falsely lower price makes the US Dollar look more valuable than it really is, hiding the effects of Federal Reserve inflation efforts, and mispricing our already enormous federal debt.
Yesterday, with evidence brought by GATA, a lawsuit was brought against J.P. Morgan Chase and HSBC Bank, credibly alleging hundreds of millions of dollars worth of silver price manipulation by the banks. If this passes muster and resolves against the banks, then (1) the price suppression will be forced to stop, and (2) the price rise in silver and then gold will uncover the true weakness of our dollar. While the truth is not pretty, our path upward will be through a fraud-free market, accurate pricing mechanisms, and the proper signals leading to proper saving and investment.
A full post, including the lawsuit, can be found here: http://www.gata.org/node/9228. Kudos to Bill Murphy, Adrian Douglas, Chris Powell and other GATA members who have tirelessly worked for a decade to reveal this fraud, and especially to Andrew McGuire, the whistleblower trader and Bart Chilton the CFTC chair who has broken precedent to pursue the issue.
