Unveiling Gold Market Manipulation: Insights from GATA's Chris Powell on Central Banks

In a recent episode of the Money Metals podcast, host Mike Maharrey interviewed Chris Powell, the secretary and treasurer of the Gold Anti-Trust Action Committee (GATA) and a longtime political columnist for the Journal Inquirer. 

The interview explored into the manipulation of the gold market by central banks, the growing interest in gold among Eastern economies, and the future of gold as the world’s reserve currency. 

Powell’s insights shed light on the covert operations of central banks, the shifting power dynamics between Western and Eastern economies, and the implications for global monetary policy.

(Interview Begins Around 5:43 Mark)

Who is Chris Powell?

Chris Powell

Chris Powell is a veteran journalist and a key figure in the global conversation about gold market manipulation. He began his career in 1967 at the Journal Inquirer, a daily newspaper in Manchester, Connecticut, where he eventually became the managing editor—a role he held for 44 years before stepping down in 2018. He continues to write political columns for the Journal Inquirer and several other newspapers across Connecticut, establishing himself as a prominent voice in state and national affairs.

In addition to his journalism career, Powell co-founded the Gold Anti-Trust Action Committee (GATA) in 1999. GATA is dedicated to exposing and opposing the manipulation of the gold market by Western central banks and their investment bank agents. As secretary and treasurer of GATA, Powell has worked for over two decades to uncover the forces driving gold price suppression, advocating for transparency and sound money policies. He also edits GATA’s daily newsletter, the GATA Dispatch, which provides updates on developments in the gold market. Powell’s extensive experience in both journalism and his leadership at GATA make him a highly credible and authoritative figure on the subject of gold market manipulation.

Central Banks and Gold Price Manipulation

Chris Powell has been at the forefront of GATA's efforts for over 20 years, working to expose the manipulation of the gold market by Western central banks and their investment bank agents. He referenced a speech by William White, former head of the Monetary and Economic Department of the Bank for International Settlements (BIS), in which White acknowledged that one of the key purposes of international central bank cooperation is to influence asset prices, especially gold and foreign exchange.

According to Powell, central banks rig the gold market to defend their currencies from the threat of gold becoming the alternative international reserve currency. If the price of gold were to reflect its true value, it would undermine the fiat currencies issued by central banks, which rely on inflation to sustain themselves. 

As Powell put it, gold is "money without counterparty risk" and "money that's very hard to devalue."

A Shift from West to East

A Shift from West to East

Powell also discussed the growing movement of gold from Western to Eastern economies. He noted that demand for gold has increased significantly in Asia, particularly in China, as well as among individual investors and central banks in emerging market economies. He believes that Western central banks have already lost control of the gold price, pointing out that gold has risen from $250 per ounce to around $2,500 per ounce in the last 25 years.

Powell argues that the West’s policy decisions, particularly in the U.S., have contributed to this loss of control. One key factor he mentioned is the U.S.'s confiscation of Russia’s dollar-based assets following the invasion of Ukraine, which has raised concerns among other nations about the security of their dollar holdings. Powell cited the work of economists Paul Brodsky and Lee Quaintance, who predicted a decade ago that central banks would eventually have to revalue gold due to international political dynamics and the unsustainable debt burden on governments.

GATA's Influence on Eastern Central Banks

One of GATA's most significant achievements, according to Powell, was informing the Bank of Russia about Western gold price suppression policies. 

Powell recalled a speech given by Oleg Mozeskov, deputy chairman of the Bank of Russia, at an LBMA conference in Moscow about 15 years ago. Mozeskov specifically mentioned GATA, signaling that Russia was paying close attention to their work. 

Similarly, WikiLeaks cables revealed that China had long been aware of the West's gold market manipulation. U.S. Embassy cables from Beijing reported that Chinese news organizations, controlled by the Chinese government, had been covering gold market rigging by the U.S. for years.

Russia and Gold Purchases

Powell noted that Russia recently announced plans to ramp up its gold purchases, and he expressed surprise that it took them so long to make this move. Given Russia's vast reserves of gold in the ground and its status as a major commodity-producing country, Powell believes it was only a matter of time before Russia recognized the importance of gold as a reserve currency that cannot be sanctioned. 

He also recalled a 2006 GATA conference in Dawson City, Yukon, where a prominent Russian confidant of President Vladimir Putin attended and praised the event. 

Not long afterward, Putin was photographed at a gold conference holding a gold bar, signaling Russia’s shift toward gold.

The Role of Gold in the Future Monetary System

Powell believes that gold will ultimately prevail as the global reserve currency, noting that it has met all of Aristotle's prerequisites for money and has no counterparty risk when held physically. 

While he welcomes the competition posed by cryptocurrencies and other alternative currencies, Powell remains skeptical about their long-term viability. 

He pointed out that gold is tangible, widely recognized, and not dependent on technology, making it a reliable store of value in a world where electronic systems could fail.

Gold Revaluation: A Path to Financial Stability?

One of the most intriguing points raised during the interview was Powell's discussion of gold revaluation as a solution to the current financial crisis. He referenced a 1974 conversation between U.S. Secretary of State Henry Kissinger and Deputy Assistant Secretary Thomas O. Enders, in which Enders explained the importance of controlling the gold price to maintain the value of the dollar and other assets. 

Enders warned that if European countries, which collectively held more gold than the U.S., were to revalue gold, it would drastically change global asset and currency valuations.

Powell pointed out that the U.S. Treasury still values its gold at $42.22 per ounce, despite gold’s market price being significantly higher. If the Treasury were to revalue its 8,133 tons of gold to the current market price, it could create massive reserves, allowing the government to issue more currency against that gold. 

Powell compared this to the idea of minting a trillion-dollar platinum coin, which was proposed as a way to create reserves for the U.S. without benefiting other nations with gold reserves.

Hyperinflation: A Looming Threat?

Hyperinflation: A Looming Threat?

Toward the end of the interview, Maharrey asked Powell whether hyperinflation could occur in the U.S. Powell responded by highlighting the U.S.'s unsustainable fiscal policies, pointing out that the country is currently spending 27% more than it is collecting in tax revenue. 

He warned that the U.S. relies heavily on foreign countries, particularly poorer nations, to lend it money, but that these countries are beginning to lose faith in the dollar due to inflation. If foreign investors stop buying U.S. government bonds, Powell warned, the bond market could crash, leading to a collapse of the dollar.

GATA's Mission and Support

Finally, Powell emphasized the importance of GATA's work in promoting transparency, sound money, and limited government. 

He encouraged listeners to visit GATA's website (GATA.org) and sign up for their daily newsletter, which provides updates on gold market manipulation and related issues. 

GATA operates as a 501(c)(3) non-profit organization and relies on donations from supporters to continue its work.

Conclusion

The interview with Chris Powell provided a deep dive into the world of gold market manipulation and the implications of central bank policies on the global economy. 

Powell's insights highlight the critical role that gold plays in maintaining financial stability and the potential consequences of continued fiat currency manipulation. 

As central banks in the East accumulate more gold and the West grapples with its fiscal irresponsibility, Powell predicts that gold will emerge as the "once and future money" in a new global monetary order.

Key Questions & Answers

Chris Powell Interview on the Money Metals Podcast

Here are the key questions and answers from the interview between Mike Maharrey and Chris Powell, now including direct quotes from Chris Powell:

What is the most compelling evidence that the gold market is rigged?

Powell explained that GATA has spent over 20 years collecting documentation of gold market manipulation. One of the most compelling pieces of evidence is a speech by William White, former head of the Monetary and Economic Department of the Bank for International Settlements (BIS), where White admitted that influencing asset prices, especially gold and foreign exchange, was one of the purposes of international central bank cooperation. 

According to Powell, "Central banks rig the gold price to defend their currencies because gold is the prospective alternative international reserve currency, and if gold ever gets out of the box, they’re through."

What is the motivation behind central banks rigging the gold price?

Central banks manipulate the gold price to protect their fiat currencies. Gold, Powell stated, is "money without counterparty risk" and "money that’s very hard to devalue." 

He continued, "Central banking is largely a matter of cheating the public through inflation, and if there’s any escape valve...people will take it. Gold is the fire escape."

What are the implications of the growing movement of gold from West to East?

Powell believes that Western central banks have already lost control of the gold price. He noted, "Since I got involved in this crazy business, gold has gone from $250 an ounce to $2,500 an ounce in really just 25 years." 

He further pointed out that the U.S.’s confiscation of Russia’s dollar-based assets has made other nations wary of holding U.S. dollars, contributing to the shift toward gold in Eastern economies.

Has GATA influenced central banks in the East, such as Russia and China?

Yes, Powell mentioned that GATA played a significant role in informing the Bank of Russia about Western gold price suppression policies. He recalled a speech by Oleg Mozeskov, deputy chairman of the Bank of Russia, where Mozeskov referenced GATA directly. 

"Mozeskov’s speech was an indication that, quite to our surprise, the Bank of Russia was paying very close attention to our work," Powell explained. 

He also highlighted WikiLeaks cables that revealed China had long been aware of Western manipulation of the gold market, saying, "The U.S. government knows that China knows."

What do you make of Russia’s recent announcement to increase its gold purchases?

Powell expressed surprise that it took Russia so long to ramp up its gold purchases. "What the hell took them so long!?" he exclaimed. 

Powell explained that gold is the only alternative to the U.S. dollar as a reserve currency and that Russia, a commodity-producing nation, should have recognized its value sooner. "Gold in hand can’t be sanctioned," Powell added.

Will gold ultimately emerge as the global reserve currency?

Powell believes gold is the most likely candidate to become the global reserve currency, noting that it meets all of Aristotle’s prerequisites for money and has no counterparty risk. While he welcomes competition from cryptocurrencies, Powell is skeptical about their long-term viability.

 "Gold is tangible. If you’re holding it, you’re holding it," he said. He added, "It’s not going to disappear when the power goes out or the internet service is cut off."

Can gold be revalued to stabilize the financial system, and how could this be done?

Powell explained that revaluing gold could create more reserves for central banks. He cited a conversation from 1974 between U.S. Secretary of State Henry Kissinger and Deputy Assistant Secretary Thomas O. Enders, in which Enders described gold as the "reserve creating instrument" that could allow countries to create more money by assigning a higher value to their gold reserves. 

Powell pointed out that the U.S. Treasury still values its gold at $42.22 per ounce and remarked, "If the United States wanted to change the valuation of that gold, it could just change the valuation of it...and issue a lot of currency against that gold."

Is the U.S. at risk of experiencing hyperinflation?

Powell believes the U.S. is already on the brink of a financial crisis due to unsustainable fiscal policies. 

He noted that the U.S. is currently spending 27% more than it collects in tax revenue, adding, "We are living off the rest of the world because we rely on the rest of the world to lend us money." 

Powell warned that if foreign investors stop buying U.S. government bonds, "the dollar would crash soon afterwards."

How can people follow GATA’s work and support its mission?

Powell encouraged listeners to visit GATA’s website (GATA.org) and sign up for their daily newsletter, GATA Dispatch. He described GATA as a "non-profit educational and civil rights organization" that survives on public donations. 

Powell added, "If you care about transparency and sound money, we welcome checks payable to GATA sent to our corporate address here in Manchester, Connecticut."

These key questions and answers, now with direct quotes from Chris Powell, provide a comprehensive view of the topics discussed in the interview, highlighting Powell's in-depth knowledge of gold market manipulation and the broader implications for the global economy.

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