The Fed Was Warned Repeatedly

More proof why the Fed MUST be audited and more proof why they should NOT get more power. I hope Dr Paul has seen the Der Spiegel article. Make sure your congressman has a copy. Chris Powell hits the nail on the head. They are all to blame. And one can only conclude they are completely incompetent, or this was done deliberately - on orders from a higher power than the BIS.

Dear Friend of GATA and Gold:

The German news magazine Der Spiegel this week published a long article lionizing the recently retired chief economist of the Bank for International Settlements in Basel, Switzerland, William S. White, who is often cited by GATA for having admitted, at least among his fellow central bankers, the gold price suppression scheme in 2005:

http://www.gata.org/node/4279

Der Spiegel praises White, a Canadian, as "the man nobody wanted to hear," because he warned his colleagues in central banking against the cheap-money policy of the U.S. Federal Reserve under Chairman Alan Greenspan, a policy that led to the real estate bubble, the explosion of derivatives, and the collapse of the world financial system.

Maybe White's fellow central bankers did not want to hear him, but surely certain financial news organizations might have been very interested in his warnings and his knowledge of generally secret central bank business, like the gold price suppression scheme. Of course GATA would have been delighted to have had White's help in publicizing that scheme. Maybe then the scheme would have become an international scandal much earlier.

But White kept his concerns within the luxurious preserve of the Masters of the Universe at the BIS, a preserve described in sickening detail in the Der Spiegel article. In declining to try to warn the world, White may be the exact opposite of people like the former comptroller general of the United States, David M. Walker, who aggravated the country's power structure by campaigning against the government's catastrophic debt.

Even now White might perform a useful service -- say, to call up the Financial Times, the London Telegraph, The New York Times, and the Washington Post, for starters, and confirm the details of surreptitious central bank intervention in markets, particularly the gold market. More likely White will continue his lucrative private consulting work and return happily to his new chalet in the Swiss countryside, his conscience adequately assuaged.

Der Spiegel's article, appended here, is fascinating but wrong in its main aspect. White is not "the man nobody wanted to hear." He's just another central banker who declined to warn the world, declined to liberate crucial information to the people who would have desperately wanted to hear it and might have changed the world with it.

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

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The Man Nobody Wanted to Hear

Global Banking Economist Warned of Coming Crisis

By Beat Balzli and Michaela Schiessl
Der Spiegel, Hamburg
Wednesday, July 8, 2009

http://www.spiegel.de/international/business/0,1518,635051,0...