Gold and the CIA go back a long time

Question

Is the CIA involved with the world gold market?

 

The involvement of the CIA with the world gold market emerges clearly out of recent declassified documents. The first document we describe is the most important one. This document makes the connection between losing influence in world affairs and the price of gold. The information of the CIA about the world gold market seems to be mostly on a strategic level, like

  • lose influence world affairs and gold
  • controlled sell and buy official gold
  • controlled sell South Africa production
  • analyze violations Washington Agreement
  • approach to report virtually unchanged gold reserve by sell of official gold
  • analyze gold price movements and manipulation thereof
  • positioning London as focal point of the world gold market
  • research regarding (future) gold production and financial position of a country

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Gold Price Intervention Circuit Diagram and Determinants Intervention Policy

This is an article about abuses in the gold market. It is meant to be for readers, who are well informed and interested in the gold market and monetary items, such as student (central) bankers, politicians, financial analists, supervisors, etc.

Based upon study we (re)constructed the Gold Price Intervention Circuit Diagram. The purpose for the (secret) interventions is the stabilization of the exchange value of the US dollar. There are many actors involved by the interventions vary from politicians, central bankers, institutions like the BIS, IMF and LMBA, Market Makers on the OTC-market (commercial banks), and Clearing Members LPMCL. We call an intervention secret if it has not been reported to market participants at the latest on the day the intervention was carried out by the one or two involved central banks, or not being reported at all.

It is obvious that the central banks within the BIS network handle an intervention policy for the price of gold. We (re)constructed some determinants of the (secret) Intervention Policy on the price of gold by central banks. The interventions set the Spot Price of gold.

The regulatory authorities seem to look away.

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Don’t be fooled: The SDR is designed as a rescue operation for the US dollar

…Triffin dilemma …Loss of confidence in the US dollar…

From the 1960s, there was a widespread concern of the sustainability of the Bretton Woods system of using national currencies as reserve assets. This was most closely associated with the Triffin dilemma, witch predicted a loss of confidence in the gold value of the US dollar as the value of liquid claims on the United States in the form of dollar foreign exchange reserves increased. Triffin argued for the need to choose the rate of global reserve growth collectively rather than allow it to be a by-product of national decisions.

 

The SDR Substitution Account

…SDR…Away from the dollar…

The IMF created the SDR (Special Drawing Rights) Substitution Account in 1969. The core idea of the SDR is that the SDR Substitution Account Central Banks allows to diversify their existing dollar reserves in a one-time conversion away from the dollar into IMF’s SDR, comprised of the US dollar, European euro, Japanese yen and British pound, in an off-market transaction, so as not to depress the dollar’s exchange rate.

 

By public introduction careful terminology avoided the label of reserve asset and suggested that the SDR was designed to add to rather than replace existing (dollar) reserves. This was pure cosmetic.

 

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