Gold Manipulation and the Bank of England: A Professor's Thesis

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Morpheus's picture
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Posts: 1200
Gold Manipulation and the Bank of England: A Professor's Thesis

Hot off the press of ZeroHedge. I'll quote a little from ZH, then include links to both ZH's article on this as well as the link to the PDF of the thesis that central banks were hotly involved in gold manipulation in the roaring 20's and early thirties. So, without further ado..

Exclusive: The Bank Of England Engaged In Flagrant Gold Manipulation In The Interwar Period Via The New York Fed; Does History Repeat Itself?


An article written by University of Tennessee professor John R Garrett, "Monetary Policy and Expectations: Market-Control Techniques and the Bank of England, 1925-1931", which describes in exquisite detail the gold falsification measures undertaken by the Bank of England in the interwar period in order to impact interest rates in a favorable direction, performed with the full criminal complicity of the Federal Reserve Bank of New York, may mean paranoid "gold bugs" could soon be forever absolved of their "tin hat" wearing status as outright gold, and other data, manipulation by a major central bank is now proven beyond doubt. The implications regarding the possibility of comparable deceitful and treasonous acts by modern central bankers are staggering.

The Bank of England depleted it open-market portfolio by secretly sterilizing large gold inflows. Thereafter, interest rates were manipulating gold flows... A gold flow falsification was over two-thirds as effective as an open-market operation. 

Falsifying critical gold data worked for Britain 70 years ago. Is it working now too? And is the BOE alone, or is Bernanke taking advantage of the Bank of England's experience? To be sure, the world was different with the Gold Standard the bedrock of monetary policy. Yet are the similarities between then and now not greater than the differences? With the shadow economy exposed as hinging on the investing community's desire to go with the prevailing "valuation" lie (a reason why the shadow economy in broad terms will take many years to return, if ever) the core asset is and always will be gold.

And yet the main question remains: why did the Bank of England openly and flagrantly manipulate critical data? Why did it mislead the citizens of the country it was supposed to serve? And if this happened in the past is it happening now? Is this the reason why the Federal Reserve is so opposed to exposing itself to public scrutiny and audits? If the BOE was engaging in outright fraud in the 1925-1931 period, why would today be any different?

Garett's mesmerizing report, published in the September 1995 issue of Monetary Policy and Expectations, has oddly not received much if any public notice, with not a single mention of the article or its implication in either the blogosphere or the mainstream arena. This is very unusual as Garret's disclosures would lend vast credence to not just gold bugs' claims that there is blatant (ongoing) gold data manipulation, but that Central Banks regularly engage in outright deception when it comes to achieving desired monetary policy results. To wit:

Montague Norman, the Governor of the Bank of England, engaged in a large-scale deception that greatly overestimated the size of the effective open market portfolio, understated the size of the gold stock, and misstated the size and even the direction of gold flows..

Article Link:

Link To the PDF of the thesis:,%20Expectations%20and%20the%20BOE.pdf

IMO, just more evidence of what we are up against. I think Tyler nails it, if it was done in the past, then a betting man can conclude that it could be done in the present. And given other papers, technical in nature, presented here by Chris and others (and me with respect to precious metals manipulation current day), I think the smart money will conclude that the "free markets" are anything but "free". 

Davos's picture
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Re: Gold Manipulation and the Bank of England: A ...

Hello Morpheus: Thanks for posting it, I was just on my way over to do so. An excellent read. Nothing changes but the names and the years.

investorzzo's picture
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Re: Gold Manipulation and the Bank of England: A ...

Two sources of manipulation disscussed weekly. JP Morgan has been naked shorting for years and the Gov. turns the other way. Because they both benifit.       under the gold tab. Ted Butler

DrKrbyLuv's picture
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Joined: Aug 10 2008
Posts: 1995
Re: Gold Manipulation and the Bank of England: A ...

Let's audit Fort Knox instead of the Fed!

At one point in the early 1920's, the U.S. held over 26,000 metric tonnes of gold - almost 70% of the world's known reserves.  There may be very little if any gold remaining.  And it has been alleged that what little is left, is almost all low quality coin melt from the 1933 government theft.

The public, and even high ranking politicians, do not have access to Fort Knox and there has not been an audit for over 50 years despite many attempts.



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