Here is what Powell had to say: “Eric, this is a report written to the executive board of the International Monetary Fund from March 1999 about the efforts of the IMF staff to improve accountability in world central bank accounting.  The report explains how the IMF staff proposed to require central banks to distinguish their gold loans and gold swaps from their gold reserves so the world could see exactly how Western central bank gold reserves were disposed.

The report goes on to explain that when the central banks saw that accountability would be demanded of them for their gold loans and swaps, they panicked.  The report says that the central banks surveyed by the IMF staff objected to this precise accounting of their gold reserves.

They said disclosure of gold loans and swaps would be what they called, “Highly market-sensitive” and disclosure would interfere with their secret interventions in the currency markets.  This is an admission....

Continue reading the Chris Powell interview below...


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“It’s a survey of the Western central banks, of the concerns the central banks had about accountability with their gold reserves.  It is an acknowledgement that the Western central banks are actively involved in the gold market every day with their gold loans and swaps.

The purpose of this gold trading is market manipulation.  It’s an admission that gold loans and swaps must be concealed to facilitate the gold market rigging that is under way by the Western central banks.

Four former Chairmen of the Federal Reserve have admitted, in one form or another, that central banks rig the gold price.  We have an admission from a former Dutch central banker that the gold market is rigged at the behest of the United States.  So I’m not surprised these general points should come out.

But I’m thrilled they should come out so authoritatively from a major international central bank institution, the IMF, as the result of a survey of all of the major central banks.  This is as authoritative (an admission) as we are likely ever going to get that central banks are actively involved, in secret, in the gold market, and conceal their gold data because disclosure, accountability, would bust up their whole market rigging schemes.

The central banks need secrecy for their gold records because it is necessary to their market-rigging power.  Gold is power.  Control of the gold market really is control of the world.  That’s really what’s in contention here.  A War Department report we published from 1944 is a study of Nazi German currency policy in occupied Europe.  It shows that the Nazi occupation looted Europe, not primarily by force of arms, but by manipulation of the currency markets in the occupied countries.

The same sort of thing is under way right now at the behest of the United States, only it’s worldwide.  It’s very possible that half of the Western central bank gold reserves have been leased out and effectively are not recoverable at current prices. 

The London Gold Pool (in the 1960s) ran the US gold reserves down from 25,000 to 8,000 tons in a very short time.  This (price fixing scheme) will end when the gold runs out completely from (Western) central bank vaults, or more likely when the gold runs down to a level that central banks just want to preserve.  Central banks will protect a certain part of their reserves because as this latest IMF report shows, gold reserves are essential for currency market rigging.

I don’t think Western Central banks or the United States wanted this information to leak out because it exposes the secret manipulation of the gold market which has long been denied.  The bottom line is this has now become public even though the document says right at the top of the first page, “Document of International Monetary Fund and Not For Public Use.”

The above portion covering gold was just a snippet of what Powell had to say about this fascinating situation.  The audio interview with Chris Powell is available now and you can listen to it by CLICKING HERE. 

The information below was from the report Chris Powell recently released on GATA’s website:

The report was written in March 1999 as the IMF staff proposed to strengthen financial reporting standards for central banks. The report shows that the objections by gold-lending central banks were decisive in weakening the standards. While the first draft of the new reporting rules would have required disclosing central bank gold loans and swaps, the revised rules, later adopted, allowed central banks to hide their gold loans and swaps within their gold reserves and even not to disclose the amount of their monetary gold at all, just the value assigned to it.

That is, the explicit but secret policy of Western central banking toward gold is to deceive and manipulate markets.

The confidential IMF report says that to strengthen its financial reporting standards for central banks -- its Special Data Dissemination Standard reserves template -- IMF staff members consulted top officials of the organization as well as the Bank for International Settlements, the European Central Bank, the Bank of England, the German Bundesbank, the Bank of France, and other European central banks.

"Central bank officials," the confidential report says, "indicated that they considered information on gold loans and swaps to be highly market-sensitive, in view of the limited number of participants in such transactions. Thus, they considered that the Special Data Dissemination Standard reserves template should not require the separate disclosure of such information but should instead treat all monetary gold assets, including gold on loan or subject to swap agreements, as a single data item. They also confirmed a view, taken by a number of countries (both inside and outside the G-10) at the December board meeting that the disclosure of the composition of reserves by individual currencies would be market-sensitive but that they would have no objection to disclosure of such information by groups of currencies. ..." (Page 6, Paragraph 15.)

"Conversations with a few executive directors confirmed the reluctance of their authorities at present to disclose information on their international reserve positions on a highly frequent and timely basis, as a matter of policy. The motivations underlying this position were: (a) a desire to preserve the confidentiality of foreign exchange market intervention for a period, in order to enhance its effectiveness; b) a reluctance by some monetary authorities to reveal information on their official transactions in exchange markets on a more frequent and timely basis than the disclosure of transactions by major international investors; and c) a concern by some countries that weekly reserves data could be inherently more volatile than monthly data, which could be misleading and potentially destabilizing to exchange markets. This position had stimulated, during the December board meeting, a lively discussion of the costs and benefits of increased transparency under various circumstances and the information requirements for well-functioning international financial markets." (Page 8, Paragraph 20.)

Specifying changes to be made in the reporting standards proposed by the IMF staff, the confidential report says: "On the assets side of the template, the major changes are: a) the elimination of any requirement to disclose the amount of gold loans, and of the explicit requirement to disclose the volume of monetary gold. The revised template would require only that the total value of monetary gold (including gold loans) be disclosed." (Page 8, Paragraph 23.)

The confidential IMF report confirms and elaborates on the Bank of England's admission a year ago that the bank's gold swap and leasing information is "market sensitive" and its disclosure "would allow enquirers to find out what gold transactions have been taking place." Such knowledge of what the bank was doing in the gold market, a spokesman for the bank said, would harm the interests of both the British government and the bank's "private customers," to whom the bank "owes a duty of confidentiality":

The confidential IMF report on the authorization of secrecy for gold loans and swaps is posted in PDF format here:

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The interviews with Chris Powell, Bill Fleckenstein, Egon von Greyerz, John Hathaway, Ben Davies, Dr. Stephen Leeb, Eric Sprott and Gerald Celente are available now.  Also, be sure to listen to the other recent KWN interviews which included James Turk, Michael Pento and Wilbur Ross by CLICKING HERE.

Eric King

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