Monetary research, official sources and relevant material: FG & Wikileaks documents & Mortymer and Jeff

Tuesday, April 9, 2013

FG & Wikileaks documents & Mortymer and Jeff

11 comments:

Beer HolidayApril 9, 2013 at 2:45 PM
Hi Mortymer,

Great blog, I'm a long time lurker.

Here are some cables which I found very interesting :-)

In any case, this seems to be a treasure trove of gold articles.

1. On the UST gold auction https://www.wikileaks.org/plusd/cables/1974LONDON16154_b.html

LOL, they really must have stared into the abyss :

"A RECURRING COMMENT BOTH IN CONVERSATIONS WITH THE GOLD DEALERS AS WELL AS IN NUMEROUS TELE-
PHONE CALLS RECEIVED BY THE EMBASSY IS THAT IF ONE BUYER, OR MORE LIKELY ONE BUYER FROM A PARTICULAR COUNTRY (KUWAIT WAS OFTEN CITED), DECIDES TO PLACE A BID FOR THE ENTIRE 2 MILLION OUNCES OF U.S. GOLD BEING AUCTIONED EITHER AT MARKET PRICES, OR POSSIBLY AT HIGHER THAN MARKET PRICES, THEN THE EFFECT OF THE U.S. AUCTION, WHICH IS INITIALLY VIEWED AS HAVING A STABILIZING FORCE ON MARKET PRICES, WOULD BE
THE OPPOSITE."

2. Two tiered gold market (same as you posted later?) https://www.wikileaks.org/plusd/cables/1973PARIS30004_b.html

3. PRESS REACTIONS TO ARAB OIL BOYCOTT (and News reports on a possible Gold for oil deal)
https://www.wikileaks.org/plusd/cables/1973PRETOR04405_b.html

An excerpt from the last:

1. SUNDAY EXPRESS POLITICAL CORRESPONDENT CITING "SENIOR POLITICIANS AND ECONOMISTS" OUTLINED SA WEAPONS TO FIGHT BOYCOTT.....

SECOND WEAPON SEEN AS GOLD,EITHER OFFERING GOLD FOR OIL ("THE IDEAL INTRODUCTION TO THE LUCRATIVE
BLACK MARKET IN OIL") OR WITHOLDING GOLD FROM FREE MARKET TO FORCE UP PRICES TO INTOLERABLE LEVEL THEN OFFERING GOLD AT DISCOUNT
FOR OIL. ARTICLE REASONS THAT ARAB COUNTRIES REQUIRING HIGHER PERCENTAGE OF PAYMENTS IN GOLD WHICH PLACES THEM LARGELY AT MERCY OF SA GOLD SELLING POLICY.

Cheers
BH
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@mortymer001April 9, 2013 at 2:59 PM
Hello BH, thank you for your appreciation of this small monetary backwater corner. I could not handle off the data and it was too much for fofoa´s blog so it ended up by this. Use as you wish. A great source.

Thank you for your additions I will implement them.There are quite few which i am looking at the moment and like with the USGov docs i will put relevant in some timeline. The complement those USGov ones.

Enjoy.

Concerning the 1. I thinnk it was Greenspan in that time (not sure now) when he was suggesting about trying to sell a bit of gold at one time. There are some official docs about this (I thin ksome meetimg minutes if memory serves good) but not with so much depth.
2. Yes.
3. Very interesting.
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@mortymer001April 9, 2013 at 3:28 PM
3. done, see: http://anotherfreegoldblog.blogspot.fi/2013/04/monetary-gold-wikileaks-1973pretor04405b.html
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Beer HolidayApril 9, 2013 at 3:37 PM
The timeline is great, and thanks for the feedback.

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@mortymer001April 9, 2013 at 4:08 PM
The timeline has many holes and was left unfinished, anyway it leaves a lot work for future.
One thought would be to fill it with the files in the right order...
Well, there is another time-line here:
http://revisiting-gordon-brown-bottom.blogspot.fi/
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milamberApril 9, 2013 at 8:44 PM
Mortymer,

Another one I think important to add...

NIXON- POMPIDOU SUMMIT: AGENDA ITEM II A - INTERNATIONAL MONETARY REFORM

https://www.wikileaks.org/plusd/cables/1973PARIS13924_b.html

2. CONVERTIBILITY. POMPIDOU WILL PROBABLY BEAR DOWN HARDEST ON
IMPORTANCE OF AGREEING AT EARLIEST POSSIBLE MOMENT ON CONDITIONS
FOR RESUMPTION OF GENERAL CURRENCY CONVERTIBILITY, AND MORE
PARTICULARLY OF DOLLAR CONVERTIBILITY. ( SEE, FOR EXAMPLE,
PARIS 13534.) IN FRENCH VIEW, CONVERTIBILITY ARRANGEMENTS
SHOULD BE DESIGNED SO THAT SETTLEMENTS OF BALANCES BETWEEN
CENTRAL BANKS ARE MADE ONLY IN RESERVE ASSETS THAT CANNOT
BE CREATED AT WILL BY A SINGLE NATION. IN CONNECTION WITH
RESTORATION CONVERTIBILITY, GOF IS READY EXAMINE METHODS OF
CONSOLIDATING EXISTING DOLLAR BALANCES. IN DISCUSSING THIS ISSUE,
WE COULD AGAIN EMPHASIZE: A) LINK BETWEEN CONVERTIBILITY
ARRANGEMENTS AND OTHER ELEMENTS OF REFORMED SYSTEM, AND B) GREAT
DIFFICULTY OF RESTORING DOLLAR CONVERTIBILITY BEFORE WE REACH
BALANCE OF PAYMENTS EQUILIBRIUM.

3. GOLD AND RESERVE ASSETS. GOF HAS COME SOME DISTANCE IN

PAGE 02 PARIS 13924 191504 Z

ENDORSING CONCEPT THAT SDR WILL BE MAJOR INSTRUMENT FOR ASSURING
FUTURE RESERVE GROWTH. THEY STILL STRONGLY BELIEVE, HOWEVER,
PRACTICALLY AS AN ARTICLE OF FAITH, THAT GOLD SHOULD CONTINUE AS
ONE OF THE LINCHPINS OF THE SYSTEM. POMPIDOU WILL EXPRESS GRAVE
DOUBTS THAT SDRS CAN SUCCESSFULLY REPLACE GOLD AS ULTIMATE RESERVE
ASSET. OUR REBUTTAL COULD EFFECTIVELY STRESS RECENT EVENTS.
VOLATILE BEHAVIOR OF FREE GOLD MARKET, WHICH IS VERY THIN AND
DEPENDENT ON SOUTH AFRICAN AND RUSSIAN SUPPLY, CLEARLY ILLU-
STRATES PROBLEMS IN RETAINING IMPORTANT TRADE COMMODITY AS
ULTIMATE MONETARY STANDARD.

…
PAGE 03 PARIS 13924 191504 Z

SHORT- TERM CRISES CREATED BY PERSISTENT U. S. BALANCE OF PAYMENTS
DIFICIT DIVERT ATTENTION OF GOVERNMENTS AWAY FROM LONG- TERM
PROBLEMS. POMPIDOU WILL BE PESSIMISTIC ABOUT POSSIBILITY OF
REACHING AGREEMENT, EVEN ON GENERAL PRINCIPLES, BY FALL OF
1973…
TO ELICIT CONCESSIONS IN DIRECTION FRENCH VIEWPOINTS ON
QUESTIONS SUCH AS ROLE OF GOLD WHERE FRENCH ARE VERY MUCH
ISOLATED. HERE, WE COULD USEFULLY ELABORATE OUR CONCEPT THAT
MONETARY REFORM CANNOT BE ACCOMPLISHED PIECEMEAL SINCE ALL ELE-
MENTS OF SYSTEM STRONGLY INTERACT.

7. …IF WE WISHED TO OBTAIN FRENCH AGREEMENT AT THIS MEETING ON
SUCH QUESTIONS AS FLEXIBILITY, THE ADJUSTMENT PROCESS, CAPITAL
CONTROLS, ETC., WE BELIEVE WE WOULD HAVE TO PAY A PRICE IN THE
FORM OF CONCESSIONS ON CONVERTIBILITY AND THE ROLE OF GOLD
WHICH WE ASSUME WE ARE NOT PREPARED TO PAY. IRWIN

Milamber
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@mortymer001April 10, 2013 at 12:14 AM
Thanks milamber, your link included. I will try to collect here and put them in some order.
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S RocheApril 10, 2013 at 9:10 PM
Great work, well done. Thanks to all.
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@mortymer001April 10, 2013 at 9:17 PM
Links are added based on the time and speed of my reading. Adding based on years. Not all search keywords done, far from that.
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milamberApril 11, 2013 at 10:34 PM
Mortymer,

Found another one detailing Burns first meeting with Chinese Central Bankers in Oct 29 1976. Oh yes, even as Communists, they knew how the game is played!

https://www.wikileaks.org/plusd/cables/1976PEKING02229_b.html

4. IN INTERNATIONAL ECONOMICS, THE DISCUSSION CONSISTED
MAINLY OF QUESTIONS BY THE CHINESE AND ANSWERS BY
DR. BURNS, ALTHOUGH THE CHINESE VIEW THAT INFLATION
IS A SYMPTOM OF ECONOMIC WEAKNESS CAME THROUGH CLEARLY.
THE CHINESE ASKED ABOUT DR. BURNS' VIEWS OF THE IMF
CONFERENCE AND WERE PARTICULARLY INTERESTED IN THE IMF
GOLD AUCTIONS, AND THE ISSUANCE OF SDR'S. THE CHINESE
ASKED ABOUT THE PROBLEM OF CONTROLLING THE $200 BILLION
IN EURODOLLARS, AND GAVE THE IMPRESSION THAT THEY
CONSIDERED THE EURODOLLAR MARKET A THREAT TO EXCHANGE
RATE STABILITY, WHICH BY IMPLICATION THEY SEEMED TO
FAVOR. THEY ALSO ASKED ABOUT COMPARATIVE GROWTH RATES
AMONG THE OECD COUNTRIES. AGAIN, THE CHINESE BANKERS
WERE WELL INFORMED AND HAD THEIR QUESTIONS WELL PREPARED.

Milamber
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@mortymer001April 11, 2013 at 10:37 PM
Hi, interesting. I have noticed there were few docs about China and about several official meetings. Skipped them until now. There were also few about China selling some gold via London. Will add. Thanks.
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