27 March 2006


commentary30: "Why Mr. White chose this particular occasion to boast about the central banks' price fixing activities in the supposedly free market for gold and, incidentally, to equate gold with foreign exchange is not clear. But three points are:
First, the BIS regards itself as effectively above and outside the reach of U.S. law regarding the trading of commodities. What is more, the Bank takes this position notwithstanding its trading activities on the COMEX, which at its annual gold dinner in 2000 honored the Bank's manager responsible for gold and foreign exchange with a 'Man of the Year Award' apparently for his work in turning back the rally in gold prices precipitated by announcement of the Washington Agreement on Gold in September 1999. See Complaint, ¶¶ 4, 55.
Second, neither the BIS nor its member central banks adhere to the principle of a free gold market enshrined in the Second Amendment to the Articles of Agreement of the International Monetary Fund, which rewrote Article V, Section 12(a) to commit the Fund to 'the objective of avoiding the management of the price, or the establishment of a fixed price, in the gold market.' [Emphasis supplied.]
Third, as worldwide purveyors of unlimited paper money, the BIS and its member central banks both recognize and continue to struggle against their most dangerous enemy: gold. Put directly, gold is money, and they know it whatever others may think, including most mainstream economists."

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