The Fed often treats financial markets as a beast to be tamed, a cub to be coddled, or a market to be manipulated. It appears in thrall to financial markets, and financial markets are in thrall to the Fed, but only one will get the last word. – Former FOMC member, Kevin Warsh – The Fed Needs New Thinking
Please note, a large portion of the source links, plus the idea for this commentary, were sourced from GATA’s latest dispatch regarding the possible appointment of Warsh as the next Fed Chairman.
The quote above is from former FOMC board member, Kevin Warsh, who appears to be Trump’s top candidate to assume the Fed’s mantle of manipulation from Janet Yellen. By way of relevant reference, Warsh happens to be the son-in-law of Ronald Lauder, who is a good friend of Trump’s. He is also a former Steering Committee member of the Bilderberg Group. GATA has published a summary reprise of direct evidence from previous written admissions by Warsh the the Fed actively manages financial asset prices, ‘including bolstering the share price of public companies’ (from link above).
In addition to stocks, Warsh admitted in the same essay that, ‘The Fed seeks to fix interest rates and control foreign-exchange rates simultaneously’ (same link above). This task is impossible without suppressing the price of gold, something which began in earnest in 1974 when, under the direction of then Secretary of State, Henry Kissinger, paper gold futures contracts were introduced to the U. S. capital markets. This memo, written by the Deputy assistant Secretary of State for International Finance and Development, was sent to Kissinger and Paul Volcker in March 1974: Gold and the Monetary System: Potential U. S.-EC Conflict (note: the source-link is from GATA – it was discovered in the State Department archives by Goldmoney’s John Butler).
This post was published at Investment Research Dynamics on October 2, 2017.