bill murphy of gata was interviewed by the daily bell, and discusses the manipulation of the gold and silver markets:

Daily Bell: How convinced are you that the monetary elite manipulates the price of gold? How did you come to that conclusion?

Bill Murphy: The Gold Anti-Trust Action Committee's basic assertion for the past 10+ years is that there is a Gold Cartel out there suppressing the gold price. It consists of the US Government, including the Fed and Treasury, various other central banks, and bullion banks like Goldman Sachs and JP Morgan Chase. Bullion banks such as Goldman and Morgan became The Gold Cartel's hit men, trading the gold market from the short side and bombing the market in coordinated anti-trust fashion at the beck and call of our government, making a great deal of money in the process. It seems to have all started with Robert Rubin:

Before he was CEO of Goldman Sachs and then US Treasury Secretary, Robert Rubin worked as the top dog in London for Goldman Sachs. One of his duties was to oversee their gold trading operations. We know this because the CEO of Kirkland Lake Gold, Brian Hinchcliffe, whose firm is a staunch GATA supporter, worked in London back then for Goldman Sachs and reported directly to Robert Rubin.

This was many years ago (late 80's) and interest rates in the US were very high, say from 8 to 12%. Rubin had Goldman Sachs borrow gold from the central banks to fund their basic operations, doing so at about a 1 % interest rate. Then they sold the physical gold in the marketplace, using the proceeds as they so desired. This was like FREE money, as long as the price of gold did not rise to any sustained degree for any length of time.

Soon other major financial institutions realized what Goldman Sachs was doing and copied them. Rubin continued these operations as the overall Goldman Sachs CEO in New York and then took it to a new level as US Treasury Secretary. That is how the gold price suppression became the lynchpin of his widely acclaimed "Strong Dollar Policy." GATA's Reg Howe caught onto this notion by finding a paper titled, "Gibson's Paradox and The Gold Standard," co-authored by Lawrence Summers in 1988. Summers, a professor at Harvard at the time, succeeded Rubin as US Treasury Secretary. The bottom line of Summer's analysis is that "gold prices in a free market should move inversely to real interest rates." Control gold and it will help to control interest rates.

From GATA's standpoint it is a serious bummer that Summers is now the Director of the White House's National Economic Council for President Obama. Our energetic new President has the architect of America's economic demise as his key advisor.

I met with Bart Chilton, an outstanding and receptive commissioner with the CFTC, on December 19, 2008 and laid out GATA's evidence of the gold market manipulation. There were three others at our meeting from the CFTC, including their senior counsel. Bart took copious notes and I suggested he take what GATA had to say to the Obama people ... emphasizing the gold price suppression scheme would blow up before President Obama's watch was over due to dwindling available central bank gold to suppress the price. Better to let the gold price trade freely now and blame what occurred on the Bush Administration, rather than let the scheme go on and eat the problem on his administration's watch down the road.

Daily Bell: How about silver?

Bill Murphy: No question about it ... MANIPULATED! JP Morgan Chase is by far the major silver short and its position is way too concentrated for a free market. Silver needed to be manipulated along with gold in order to keep attention away from the price suppression scheme. Ted Butler, well known in the precious metals internet world, knows as much about the silver market as anyone, and has brilliantly articulated just how much silver has been manipulated ... and by whom.

Daily Bell: What motivates those who do this in your estimation?

Bill Murphy: The motives of "the cabal" are to give support to the dollar, keep US interest rates lower than they should be, and to tone down the widely watched US barometer of US financial market health, that being the gold price. After all, whenever the price of gold soars, it congers up talk of too much inflation, a sinking dollar, or a crisis of some sort ... all negative for Wall Street and the incumbent administration. That's exactly the sort of commentary you will be reading about in the weeks and months ahead as the price of gold soars.

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