The Cork Board

[the cork]

Ronan Manly: Central bankers wanted gold suppressed to keep oil flowing
By: Chris Powell, Secretary/Treasurer, GATA
Published: Tuesday, 23 May 2017

Dear Friend of GATA and Gold:

Western central banks conspired about controlling the gold price in the early 1980s because they realized that gold was an indicator of inflation and its rise helped push commodity prices up, according to the second set of archival documents published today by gold researcher Ronan Manly.

But, the documents show, the central bankers also sought to facilitate the flow of low-priced gold to oil-producing countries in exchange for their continuing to supply oil to the West at low prices.

The latter objective, according to one central banker, was to "enable OPEC to acquire some modicum of the chief inflation-proof asset without an excessive rise in the price" and thereby "to prevent gold making its own particular contribution to inflation while the developed world was attempting to bring inflation down and so reduce gold's own peculiar attraction."

Manly reports that the deputy governor of the Bank of England was skeptical of trying to duplicate the effort of the London Gold Pool of the 1960s and instead believed that the U.S. government should raise official convertibility of the dollar to $700 per ounce. Manly explains: "This was based on a calculation of U.S. overseas dollar liabilities tallied in a separate document. A similar calculation today would put the U.S. dollar gold price in the many thousands."

Manly also cites evidence, already called to your attention by GATA, that the Bank for International Settlements was actually running a second gold pool again by 1983 precisely for the purpose of appeasing OPEC -- just what the famous "Another" postings at USAGold.com in 1997 and 1998 maintained:

http://www.usagold.com/goldtrail/archives/another1.html

This conspiring against gold by central bankers is especially significant because it occurred long after they had officially demonetized gold and had no formal reason in policy to be intervening in the gold market. That is, the conspiring took place in the same circumstances that prevail today.

GATA hopes that Manly's research, which it has underwritten, will encourage participants in the monetary metals industry to face reality -- to recognize that the monetary metals markets do not operate normally and that there is enormous proof that, as market analyst and geopolitical strategist James Rickards said on CNBC many years ago: "When you own gold you're fighting every central bank in the world."

Except, of course, the monetary metals industry and most of its analysts aren't fighting at all but playing dead.

Part 2 of Manly's report is headlined "New Gold Pool at the BIS Basle: Part 2 -- Pool vs. Gold for Oil" and it's posted at Bullion Star here:

https://www.bullionstar.com/blogs/ronan-manly/new-gold-pool-at-the-bis-b...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
[e-mail]

* * *

http://news.goldseek.com/GATA/1495546569.php