In Rolling Stone, Matt Taibbi mentions precious-metals Ponzi schemes

Submitted by cpowell on Fri, 2010-04-30 06:12. Section: Daily Dispatches

2:08a ET Friday, April 30, 2010

Dear Friend of GATA and Gold (and Silver):

GATA is always nagging prominent journalists to look into the gold and silver price suppression story, as we did other day, calling to the attention of a dozen or so journalists and financial newsletter writers the excellent report by Vince Veneziani of Business Insider that the International Monetary Fund refuses to answer the most basic questions about its supposed gold reserves:

http://www.gata.org/node/8583

Among the journalists GATA and many of our friends have been nagging is Matt Taibbi of Rolling Stone, who may be best known for his long essay in that magazine last July, "The Great American Bubble Machine," which denounced investment bank Goldman Sachs as "a great vampire squid wrapped around the face of humanity." A copy of that essay can be found at Zero Hedge here:

http://zerohedge.blogspot.com/2009/06/goldman-sachs-engineering-every-ma...

Taibbi hasn't responded to GATA directly but his latest essay for Rolling Stone, "The Feds vs. Goldman Sachs," published in the magazine's May 13 issue, which was posted on the Internet this week --

http://tinyurl.com/3xgpo6m

-- contains a paragraph suggesting that he has at least noted what he has heard from this quarter. Taibbi writes:

"There is more fraud out there, and everyone knows it: front-running, manipulation of the commodities markets, trading ahead of interest-rate moves, hidden losses, Enron-esque accounting, Ponzi schemes in the precious-metals markets, you name it. We gave these people nearly a trillion bailout dollars, and no one knows what service they actually provide beyond fraud, gross self-indulgence and the occasional transparently insincere public apology."

"Manipulation of the commodities markets" and "Ponzi schemes in the precious-metals markets," eh? Well, it's a start. Let's hope Taibbi follows up. But regardless of whether he does, GATA is aware of three major newspapers that have begun making serious inquiries about the gold and silver price suppression scheme. Whoever gets to it first will have the financial story of the century, revealing the secret knowledge of the financial universe.

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