China Confirms Gold Price Suppression, Part 1

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Johnny Oxygen
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China Confirms Gold Price Suppression, Part 1

http://www.financialsense.com/contributors/julian-phillips/2011/09/08/ch...

The Chinese belief that the U.S. and Europe have always suppressed the rising price of gold cannot be refuted reasonably. The gold sales by the U.S. and then in the seventies the gold sales by the I.M.F. were direct attempts to squash the gold price in the pretence that gold would be sold out of the system.

In 1978 the Second Amendment of the IMF Articles was intended to delete gold from the international monetary system. The amendment followed the failure of previous attempts to establish a new international monetary system. In particular these included the failure of European countries to force the United States to either settle its deficit in gold, or else devalue the dollar against gold. This Second Amendment of the Articles barred members from fixing their exchange rates to gold and removed the obligation on members to conduct transactions in gold at the official gold price.

Not only did the United States refuse to keep gold in the system, it then led a crusade against gold (while being careful to keep a very large strategic stock of gold in its own reserve, sealed off from the outside world).

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