Now, why is GATA so optimistic?  Well, their work has indicated that the gold suppression scheme will fail in this Obama term, and Murphy has given a full counter-proposal to the CFTC chairman with the message that Obama can find out whatever he wants to know by simply asking his current advisors.

Next, with perfect timing, FED researcher Elaine Supkis has uncovered an exciting document from the archives. The April 1961 document, which is marked "Confidential," is from the papers of William McChesney Martin, Jr. The title of this confidential report is: Confidential - - (F.R.) U.S. Foreign Exchange Operations: Needs and Methods

GATA consultant James Turk (of goldmoney.com) has brilliantly dissected this document in an essay titled, "The Federal Reserve's Blueprint for Market Intervention"  James Turk notes:

"In short, it lays out what the Treasury and Federal Reserve needed to do in order to begin intervening in the foreign exchange markets, but there is even more. This document plainly shows what happens when government operates behind closed doors. It also makes clear the motivations of the operators of dollar policy long described by the Gold Anti-Trust Action Committee and its supporters -- namely, that the government would pursue intervention rather than a policy of free markets unfettered by government activity. The run to redeem dollars for gold had put the government at a crossroads, forcing it to make a decision about the future course of dollar policy. This paper describes what the government would need to do by choosing the interventionist alternative.

"This document provides primary, original source supporting evidence that GATA has been right all along.

"I have long hoped that a "confidential" document like this one would eventually emerge. There are no doubt countless more like it, as evidenced by the Federal Reserve's and the Treasury's refusal to provide all the documents requested by GATA under its recent Freedom of Information Act request. Maybe those documents will eventually see the light of day too."

James makes a key points regarding one of the assertions of this report

"The basic purpose of such operations would be to maintain confidence in the dollar."

"This statement confirms one of the basic planks of much of the work by me and others that has been published by GATA over the years. The efforts to cap the gold price have one aim. It is to make the dollar look worthy of being the world's reserve currency when in fact it is not."  (source Murphy letter)

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One response to Turk from Adrian Douglas:

"It got me thinking as to whether the heist they have pulled is bigger than we think. The BIS as we know, and as mentioned in this memo, is the organization that allows for cooperation behind the scenes of the Central banks. We know they went private to prevent any need for public disclosure seeding the opportunity for Reg Howe's lawsuit. We have plenty of evidence that Central Bank gold holdings have been depleted. We keep saying that the gold is "gone". But what do we mean by "the gold is gone"?

"Gold is not like crude oil, expensive wine, even silver it does not get consumed. It has not "gone"; it has changed ownership. The Central Banks leased out gold to the bullion banks. Now who did the the bullion banks sell the gold to? We know that the bullion banks can't get the gold back. If the central banks ask for the gold back the bullion banks can declare bankruptcy or settle in cash. How convenient! The Central bank gold has gone into someone else's hands that are unknown and the loss will eventually be written off.

"We know that Central Banks are owned or controlled by some of the richest families and/or entities in the world. Is it possible that these "bankers" can benefit from a fiat ponzi scheme while it can be maintained AND still end up with the gold in which case they can benefit from a return to a gold standard and when the gold standard eventually gets abused and abandoned in the future they will play the whole fiat game over again? It would certainly require cooperation between central banks to pull off such a heist.

"It would be great to have the whole world sitting in a room and ask those who own more than 10 million ozs of gold to raise their hands!

"The crime may be more than manipulating the price of gold to "defend the US dollar" and concealing the evidence from the public. The Cartel may well have aided and abetted embezzlement of the citizens' gold of the Western world. And who ever has it, they bought it perfectly legally from the bullion banks with fiat currency.

"This seems to make sense because Central bankers and the "elitists" (Rockefellers, Rothchilds, Morgans, Mellons, Carnegies, Vanderbilts etc etc) are not stupid. They must know gold is real money. They can study monetary history too. The fiat money game in this context is a decoy for the theft of sovereign gold.

"It is not without precedent, the great inflationist, John Law, was arrested escaping with a coach loaded with gold and silver!"  (source Murphy letter)

Then from GATA Board member Catherine Austin Fitts:

"My hypothesis since 2001 is that the NWO is shifting assets out of sovereign governments and shifting liabilities back in. The goal is to reengineer global governance into the hands of private banks and corporations in a manner that dramatically centralizes control. This is why the creation of a genetically controlled seed and food supply, etc.

"To achieve such centralization requires the centralization of the gold and silver stores. Whoever has the gold has the most powerful financial asset. So if you want a new centralized currency, you need a monopoly on gold and silver. I think part of the end game is to shift back to something involving some kind of gold standard."

"If you use fiat currency to acquire ownership and control of all the real assets on the planet, then you need a gold standard to make sure you keep them. So, it would not surprise me to see G8 and GATA start to move into alignment, strange as it may sound."  (source Murphy letter)

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What?  This central banking cabal, this "New World Order" elite, or as GATA refers to them, the Gold Cartel, might have actually studied monetary history too?  Huh?  And actually they consist of two segments - one of the Keynesian/Monetarist brainwashed masses who have really have little clue, and an inner circle that has studied Austrian economics and is just doing whatever they believe necessary to defeat it for their own comparative advantage?  Cough! Cough! Reminds me, Cough! Of Alan Greenspan!  Cough, cough!  He wrote "Gold and Economic Freedom"!  Cough, cough!

Well, I am so sure that the above could never occur, so I have merrily continued my midnight studies of ancient economic texts in the hopes they will shed some further light on the future.  One such book is from 1894, called COIN's Financial School by W. Hope Harvey.  [Recommend the B&W PDF since its well illustrated.] 

In its heyday, COIN's sold over 1 million copies, and was a key piece of propaganda for the silver populist movement.  It relates the story and dire effects of the demonetization of silver, which was causing Panics - the 1800s equivalent of recession and bank runs combined.  However, for the entire book (save parts of the conclusion) it aims to be solely a work of  flawless scholarly logic, and actually has me rethinking some aspects of bimetallism and the "Austrian standard" I introduced here.

Boy, was I surprised to see this big 1894 Rothschild spider thingey looking back at me!!  Darn it, didn't we get RID OF the British in the 1700s?  The caption for this claims that the Rothschilds controlled over half of the global gold stock back then.  (photo from COIN's Financial School, not in copyright)

I'll probably refer to COIN's in my later writings, but let me relate one pretty amazing fact, which is the relative amounts of gold in the world.  Per the World Gold Council (free subsciption required, see page 15/16), their widely accepted estimate of 5.3 billion troy ounces of aboveground gold stock may sound like a lot - current dollar value of $4.7 Trillion @ $890/oz, but its pretty much what the United States government will spend next year.

However, what is shocking is that ALL of the gold ever mined by mankind (very little has been been consumed) would fit inside of a cube that is only 20.5 meters to a side!!  (Specific gravity of 19.3 grams per cubic centimeter, 31.1 grams per troy ounce)

What happens when we look at silver?  Well, there is no "World Silver Council" to look at what used to be known wide and far as "The People's Money" and is a very special precious metal in its own right as I wrote about here.  The best authority I have found on silver is not some elitist "Council" it's just a smart dude named Ted Butler.  In a recent column, he reiterates his estimates of 40 billion troy ounces mined BUT ONLY about 1 billion ounces exists as unconsumed aboveground silver stock, and even grants his estimate is probably a bit high.  At about $11.90/oz., this amounts to a dollar value of just $11.9 Billion!  This is just a small fraction (0.25%!!!) of the dollar value of the world's gold stock!

All of the world's aboveground silver stock would fit inside of a cube that is only 14.5 meters to a side!  (Specific gravity of 10.49 grams per cubic centimeter)

No wonder investors like Michael Maloney are heralding the possibility of the "Greatest Wealth Transfer Ever!"

It is also interesting to take a look at COIN's view of what causes Panics.  He relates that although the value of silver and gold are insignificant when compared to the "Property of the World" and the "Debts of the World," the world does more or less OK when the Debts are half the size of the Property.  However, he cautions that from his studies if the Debts ever reach two-thirds the value of the Property, wars and revolutions will ravage the planet. (photo from COIN's Financial School, not in copyright)

Well, as a person living 115 years after COIN in the technologically advanced year of 2009, I can surely scoff at COIN's naivety, right? It's not as if the size of the world's Debt - its debt-based fiat currencies and $684 Trillion of OTC "dark" derivatives does not now DWARF the value of its Property, right?  It's not as if we are in the grips a global Depression, right?

I mean, its not AS IF the United States has launched a war for control of the oil supply like Iraq, right? Or attempted to place a total global blockade on  another major oil supplier like Iran, right?

Or has occupied and attacked countries like Afghanistan and Pakistan where the oil and natural gas pipelines from the Western-friendly former Soviet republic dictatorships could flow to our waiting oil tankers in the Indian Ocean protected by the US Navy right?  Or via the Georgia-Turkey pipeline, right?

It's not AS IF major political rioting continues in Greece and Latvia, and a revolution has just toppled the government in Iceland, right?

It's not AS IF the world is so scared of Somalian "pirates" that Blackwater is sending its mercenaries to protect merchantman vessels, right?  There are no other wars and revolutions in Africa besides Somalia, Sudan, Congo, the Ivory Coast and a few others, right?

It's not AS IF a whole race of people have been barricaded inside a wall and are being shot at like some kind of a sick WWII Polish ghetto, right?

It's not AS IF the whole British banking and equity markets weren't just 3 hours from complete collapse in October 2008, right?

It's not AS IF Edwin Vieira did not explain in 100 minutes of excruciating detail why our current crappy paper money is unconstitutional per  Article 1, Section 10, Clause 1 of the Constitution of the United States and what needs to be done to bring about change!!

And it's not AS IF our government isn't going to try to paper over the ravaging of our economy by passing a $850 Billion spending bill that will certainly not work while the banking system is helplessly insolvent... right?

Join the rEVOLution!  Restore the Republic!  My advice if you decide to buy precious metals is to buy some ounces of gold and buy a lot more ounces of silver!  No ETF or "paper metal" junk!

Jake, the Champion of the Constitution