U.S. Government Gold Manipulation Document Declassified
October 2, 2009 3:07 PM Subscribe
The Federal Reserve, in the 1970's, had a secret agreement with the German government whereby the German government agreed not to buy gold in the open market, or from other governments, at a price above the then-official U.S. government price of $42.22 per ounce, despite the fact that the open market price for gold was then trading between $160 to $175 per ounce.
This post was deleted for the following reason: a link to a contextless pdf as if we can sort of jump into this story in the midde may not be the best way of framing this information. -- jessamyn
I keep looking for [more inside]. I am inside, and there is not more here. Not that I was promised [more inside], but this seems like a post that really could use some [more inside]. But as there is nothing but a link to a .pdf with no context, I am going to go [outside] and have dinner with my girlfriend and maybe go see some gallery openings (and maybe [more]).
posted by Admiral Haddock at 3:19 PM on October 2, 2009 [1 favorite]
posted by Admiral Haddock at 3:19 PM on October 2, 2009 [1 favorite]
Cool story, bro.
posted by Pope Guilty at 3:20 PM on October 2, 2009 [1 favorite]
posted by Pope Guilty at 3:20 PM on October 2, 2009 [1 favorite]
"Ron Paul senses... tingling..."
"To the Zeppelin!"
posted by East Manitoba Regional Junior Kabaddi Champion '94 at 3:23 PM on October 2, 2009 [9 favorites]
"To the Zeppelin!"
posted by East Manitoba Regional Junior Kabaddi Champion '94 at 3:23 PM on October 2, 2009 [9 favorites]
I'm pretty sure that situations like this, or when third rate American actors and bands that fail in America but somehow make it big in Germany (like David Hasselhof), are all evidence that the terms of Germany's Unconditional Surrender at the end of WW2 are still being enforced, albeit pettily.
posted by Davenhill at 3:26 PM on October 2, 2009 [5 favorites]
posted by Davenhill at 3:26 PM on October 2, 2009 [5 favorites]
A contextless PDF hosted by a blog site featuring writers named after the characters of Fight Club? Oh well, have some context.
posted by mek at 3:29 PM on October 2, 2009
posted by mek at 3:29 PM on October 2, 2009
And Bernecke couldn't seduce Andrea Merkel into an equally beneficial deal before the Great Recession started? Or maybe he DID... (said in Craig Ferguson Big Conspiracy voice) Time to check out the price of American Beer in Berlin over the last few years...
posted by wendell at 3:30 PM on October 2, 2009
posted by wendell at 3:30 PM on October 2, 2009
Taibbi has some further context, though he seems to assume that ZH is written by one person (when it admits it is at least four, and further speculation indicates that the founder is an "aggregate pseudonym".)
posted by mek at 3:36 PM on October 2, 2009
posted by mek at 3:36 PM on October 2, 2009
Pretty, shiny, malleable beacon that it is... 'Gold' as a topic has been taken hostage.
Over the past few years browsing the tubes, I seem to constantly stumble upon headlines, blogs and conspiracy theories devoted to the subject. And the referrers are usually, blatantly and self-interestedly, compromised by their personal hordes of the stuff.
I must apologize, but I didn't follow the link.
posted by vectr at 4:08 PM on October 2, 2009
Over the past few years browsing the tubes, I seem to constantly stumble upon headlines, blogs and conspiracy theories devoted to the subject. And the referrers are usually, blatantly and self-interestedly, compromised by their personal hordes of the stuff.
I must apologize, but I didn't follow the link.
posted by vectr at 4:08 PM on October 2, 2009
I mock your value system. You also appear foolish in the eyes of others.
posted by Joe Beese at 4:43 PM on October 2, 2009 [2 favorites]
posted by Joe Beese at 4:43 PM on October 2, 2009 [2 favorites]
Hm. So, it seems that this is the record of US government policy that major governments (not just the Germans) should simply not buy gold. The result of this would be less demand for the stuff, and lower prices.
Would libertarians actually oppose this policy? Wouldn't the government buying gold be a case of government intervention in the gold market, artificially propping up the price? It lets people who believe in gold buy it at a lower cost, which is great for them.
Put another way, isn't the government's buying large amounts of agricultural products to prop up the price something libertarians are opposed to? If governments enter into an agreement not to do it, shouldn't it be considered a good thing?
posted by alexei at 5:47 PM on October 2, 2009 [1 favorite]
Would libertarians actually oppose this policy? Wouldn't the government buying gold be a case of government intervention in the gold market, artificially propping up the price? It lets people who believe in gold buy it at a lower cost, which is great for them.
Put another way, isn't the government's buying large amounts of agricultural products to prop up the price something libertarians are opposed to? If governments enter into an agreement not to do it, shouldn't it be considered a good thing?
posted by alexei at 5:47 PM on October 2, 2009 [1 favorite]
Even more context about Zero Hedge. Not that it it really relevant to the actions of central banks in the 1970s.
posted by procrastination at 5:49 PM on October 2, 2009
posted by procrastination at 5:49 PM on October 2, 2009
I would love an alternative source for the topic of the FPP, but I can't find any.
posted by mek at 6:24 PM on October 2, 2009
posted by mek at 6:24 PM on October 2, 2009
Uh... Weren't there two Germanies in the 1970s? It seems quite odd that that goes unmentioned.
posted by Sys Rq at 6:59 PM on October 2, 2009
posted by Sys Rq at 6:59 PM on October 2, 2009
Um, David Hasselhof is german.
I thought he was just really big in Germany. Wikipedia says he was born in the US.
posted by Lentrohamsanin at 7:04 PM on October 2, 2009
I thought he was just really big in Germany. Wikipedia says he was born in the US.
posted by Lentrohamsanin at 7:04 PM on October 2, 2009
I read the document. I don't get context of the post. Perhaps we need a new acronym for single link fed policy memo? From reading the memo, the Germans supported the US position to reduce the importance of gold in global currency markets following he collapse of Breton Woods. They prefered a strong dollar out of their economic interests as they depended upon exports to the US for economic development. Not sure what the poster wants us to get from this other than a historic footnote related to the establishment of the modern currency system. We don't even know what position was taken in susequent negotiations mentioned in the memo.
posted by humanfont at 7:27 PM on October 2, 2009
posted by humanfont at 7:27 PM on October 2, 2009
And why is this tagged "alangreenspan"? He wasn't chairman of the Fed until 1987.
posted by mek at 7:31 PM on October 2, 2009
posted by mek at 7:31 PM on October 2, 2009
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posted by tarheelcoxn at 3:16 PM on October 2, 2009