gata.org / By CHRIS POWELL / 11:18a ET Saturday, December 29, 2012
Dear Friend of GATA and Gold:
Two U.S. State Department diplomatic cables from 1974 obtained by GATA researcher R.M. show Western central bank and treasury officials engaged in secret discussions — that is, conspiring — to control the price of gold and prevent any increase in its recognition as money.
The first cable was sent in May 1974 by then-Treasury Undersecretary Paul Volcker, who went on to become chairman of the Federal Reserve Board, from the U.S. embassy in Paris to the U.S. secretary of state in Washington for forwarding to another treasury undersecretary. The cable conveys a report by Netherlands Treasurer-General C.J. Oort about a meeting of European Community finance ministers in the Dutch city of Zeist on April 22 and 23.
Two proposals for controlling the gold price were discussed in Zeist, Oort wrote, according to Volcker’s cable: “One is that monetary authorities periodically fix a minimum and a maximum price below or above which they would not sell or buy on the market. The other consists in creating a buffer stock to be managed by an agent who would be charged by the monetary authorities to intervene on the market such as to ensure orderly conditions on the free market for gold.”