Fox News takes *****'s Ron Paul gold audit story...

Fox News takes Kitco's Ron Paul gold audit story national
Submitted by cpowell on Thu, 2010-09-02 01:29. Section: Daily Dispatches

9:40p ET Wednesday, September 1, 2010

Dear Friend of GATA and Gold:

Congratulations to Kitco News and its reporter Daniela Cambone for having broken last week what this week Fox News made into a national story, the call by U.S. Rep. Ron Paul, R-Texas, for a serious audit of U.S. gold reserves. The Fox News story, broadcast and posted today and appended here, is notable for two reasons apart from calling attention to the audit issue.

First, the Fox News story quotes Paul as remarking that the audit should determine not only the simple presence of gold in the U.S. government's vaults at Fort Knox, Kentucky, and elsewhere but also "whether any of it has been obligated."

That is, Paul is fully aware of the Federal Reserve's involvement in gold swaps with foreign banks, an admission made by Fed Governor Kevin M. Warsh a year ago in the course of GATA's litigation against the Fed under the Freedom of Information Act, even as Warsh insisted that the Fed's gold swap arrangements must remain secret:

http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf

And second, the Fox News story is notable for the refusal of the Treasury Department to comment about the gold audit issue: "Representatives from the Treasury Department and U.S. Mint did not respond to requests for comment on Paul's proposal.

Imagine what would happen if mainstream financial news organizations began to put detailed, coherent questions to the Fed and Treasury Department about the disposition of the U.S. gold reserve, the gold swap arrangements, and the overwhelming if obscure public record of Fed, Treasury, and other U.S. government agency interest in suppressing the gold price:

http://www.gata.org/taxonomy/term/21

Already the Treasury Department is clamming up just as the Bank for International Settlements clammed up in July when the Reuters news agency was shamed into pressing the BIS with questions about the unprecedented gold swaps the BIS recently had undertaken surreptitiously:

http://www.gata.org/node/8834

Practically everyone seriously involved in the financial markets now acknowledges that they're all manipulated all the time by central banks -- except the gold market, which can't quite be talked about candidly yet. But thanks to Kitco News and Fox News, the gold market is another step closer to real journalism.

An introduction and link to the Kitco News story about Paul's proposal can be found here:

http://www.gata.org/node/8954

Audio of the Kitco News interview with Paul can be found here:

http://www.kitco.com/KitcoNewsVideo/kitco_news.htm

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

The above is from http://www.gata.org/node/8975