Thursday, September 24, 2009

Federal Reserve Admits Hiding Gold Swap Arrangements, GATA Says

The Federal Reserve System has disclosed to the Gold Anti-Trust Action Committee Inc. that it has gold swap arrangements with foreign banks that it does not want the public to know about.

The disclosure, GATA says, contradicts denials provided by the Fed to GATA in 2001 and suggests that the Fed is indeed very much involved in the surreptitious international central bank manipulation of the gold price particularly and the currency markets generally.

The Fed's disclosure came this week in a letter to GATA's Washington-area lawyer, William J. Olson of Vienna, Virginia (, denying GATA's administrative appeal of a freedom-of-information request to the Fed for information about gold swaps, transactions in which monetary gold is temporarily exchanged between central banks or between central banks and bullion banks. (See the International Monetary Fund's treatise on gold swaps here: (more)

McAlvany Weekly Commentary, Sept 23, 2009

The Silver Lining: An Interview With David Morgan

September 23rd, 2009

David Morgan has been an independent precious metals analyst for over thirty years. He adheres to the Austrian School of Economics, although his degree is not from the Mises Institute. Mr. Morgan edits The Morgan Report which is commentary and analysis on ”Money, Metals, and Mining”. This e-mail report is issued on a monthly basis and includes economic news, overall financial health of the global economy, currency problems and specific ways for you to use this knowledge to profit. Mr. Morgan pours over nearly every metals, economic, financial newsletter and business publication to save his readers valuable time and money! To contact David Morgan, email: or visit the website

Free Report from Mr. Morgan

Silver Fundamentals– Fundamentally Flawed. This report is available for free by visiting

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Carry traders given blank check on dollar weakness

The dollar, already plumbing its lowest levels of the year, is expected to continue to weaken even as an improving U.S. economy eventually leads the Federal Reserve to unwind more of its liquidity-boosting programs.

That's because the U.S. currency has increasingly been at the center of a so-called carry trade. With interest rates effectively at zero in the U.S., global investors seeking risks and higher returns are increasingly borrowing risk-free dollars to invest in higher-yielding currencies and assets, such as stocks, commodities, and emerging markets. (more)

Crude oil tumbles as weak demand pushes up inventories

Crude supplies rose 2.8 million barrels in the week ended Sept. 18, the Energy Information Administration reported. Gasoline inventories gained 5.4 million barrels, and distillate stockpiles, which include diesel and heating oil, rose 3 million barrels.

"With a rise across the board in all inventories the numbers today confirm that we are in a high supply and weak demand environment," said Tariq Zahir, managing member of Tyche Capital Advisors. (more)

Trading Gold

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