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James Turk - What You Need to Know About Gold Suppression

With central bank intervention in gold becoming widely accepted as reality around the globe, today King World News interviewed James Turk out of Spain to get his take on central bank interference in the gold market. Turk started by giving a brief lesson on the history of these failed manipulations, “Yeah, it’s an important part of monetary history. It (the London Gold Pool) was established in 1961 by central banks around the world in order to try to make the Bretton Woods system, which had been created near the end of the Second World War in 1944, it was trying to make that system work.”

James Turk continues:

“It was more or less like a gold price suppression scheme in the sense that they made available gold to try to keep the market at $35 an ounce. But you really have to look at this in a broader stretch of monetary history. Under the gold standard, the way it worked was central banks were supposed to maintain the value of their currency to fit the purchasing power of gold.

The purchasing power of gold basically remained constant over long periods of time. A Roman Senator could buy a toga with an ounce of gold and today you can buy a man’s suit with an ounce of gold. That’s the way the gold standard essentially worked.

Central banks were managing their currencies to maintain the currencies’ purchasing power to gold. But by the end of the 19th century things started to change. They started managing gold in order to fit the ever diminishing purchasing power of currencies....

Continue reading the James Turk interview below...

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“Governments cut the rules that Sir Isaac Newton created when he invented the classical gold standard around the year 1700. They were voluntary rules and they didn’t have to follow them if they didn’t want to. They started bending and changing those rules and they started being changed quite substantially in the 20th century, after the First World War.

First the classical gold standard ended in 1914, the last remnants of it. They (central planners) went on to a gold exchange standard in the inter-war years. Then in 1944 they created the Bretton Woods system where gold wasn’t really the standard anymore, (instead) the dollar became the standard for international transactions. Back then it (US dollar) was as good as gold. At that time the US had the largest gold reserves in the world.

In fact the US had the dominant position in terms of gold. There was no question then that if you took your $35 dollars it was solid, it was worth $35, even though Americans couldn’t redeem it in gold at that moment in time.

This actually brings up another important thing in terms of 20th century monetary history. Gold was confiscated by Lenin in Russia, it was confiscated by Hitler in Germany and it was confiscated by Roosevelt in the United States...

Be sure to return to hear James Turk discuss this incredibly fascinating period of history and how it relates to the gold market today and much more. The extraordinary KWN interview with James Turk is available now and you can listen to it by CLICKING HERE.

Eric King

KingWorldNews.com

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