Judge Sides With GATA, Orders Fed To Present Her With Its Classified Gold Records For Private Review

Tyler Durden's picture

Our friends at GATA report an interesting development in its multi-year confrontation with the Fed, namely that the organization has "scored a small but perhaps auspicious victory over the
Federal Reserve in our lawsuit seeking access to the Fed's secret gold
files. The judge presiding over GATA's federal freedom-of-information
lawsuit in U.S. District Court for the District of Columbia, Ellen Segal
Huvelle, granted GATA's motion to order the Fed to produce in complete
form for the judge's private review 20 gold-related documents the Fed
has sought to keep secret. The judge ordered the Fed to deliver the
documents by Friday." While this does not mean that the Fed will actually publicly announce that its gold vaults are in fact filled with GLD stock certificates, it does put the Fed in an unpleasant position to have to escalate its defense of its secrecy in an increasingly more sensitive topic, i.e., precious metals price manipulation with or without JP Morgan, and is a definite setback for Bernanke in his pretend push to make the Fed appear more transparent.

More from GATA:

The judge's order to the Fed to produce documents for her private review can be found at GATA's Internet site here:

http://www.gata.org/files/GATAFedLawsuitCourtOrder-01-10-2011.pdf

Those who are skeptical of GATA's complaint that the Federal Reserve
is part of an international gold-price rigging scheme should reflect on
the meaning of the Fed's refusal to disclose all its gold-related
records, records that include gold swap arrangements with foreign banks:

http://www.gata.org/node/8192

If the U.S. gold reserves are just sitting somewhere, inert,
unencumbered, and unused for surreptitious market intervention, what's
the problem with full disclosure?

Financial journalists unafraid of aggravating the world's financial
powers should start putting gold-related questions to the Fed and other
central banks and stop simply assuming that secrecy should be the normal
order of things with central banks and gold.

And people everywhere who believe in free markets in the monetary
metals and who have not already supported GATA financially can join our
struggle here:

http://www.gata.org/node/16

This struggle could have been undertaken easily and likely more
effectively by the World Gold Council, which aims to represent gold
mining companies and gold investors. But the council's indifference to
questions of surreptitious central bank intervention in the gold market
has left the struggle to GATA. We need your help to pursue this struggle
to victory for free markets, limited government, and a better, fairer
world.

And from the actual order:

ORDER
Upon consideration of defendant’s motion for summary judgment [dkt. #9], plaintiff’s opposition thereto [dkt. #13], plaintiff’s motion for in camera review [dkt. #14], defendant’s opposition and reply [dkt. #16], and plaintiff’s reply [dkt. #20], it is hereby ORDERED that defendant shall produce to the Court for in camera inspection by January 14, 2011, redacted and unredacted copies of the 20 documents indicated on its Vaughn
index. (See Exhibit 8 to Declaration of Alison M. Thro.)

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Zé Cacetudo's picture

News from California on buying gold the other day:

"The Pasadena Police Department would like to inform the public that buying gold is against the law unless you are licensed by the California Department of Justice," the statement said.

 

In addition, police added, "Gold buyers are required by law to ask for identification from whoever they buy from and maintain a description of the items they are buying. This information is then reported to law enforcement."

From http://www.pasadenastarnews.com/news/ci_16988452

Oh, and while I'm at it, don't go through the TSA body scanners at the airport - they're cancerous: http://bit.ly/cWT295

Sudden Debt's picture

Business operators that buy or sell gold without a license are subject to arrest, a $1,500 fines and accusations of dealing in stolen property, police added.

I first thought it was BS, but that's just scarry! You'd better start buying your gold overseas ;) I do that to. I buy it in the US and Germany.
Ratscam's picture

Try Singapore, Malta and Switzerland!

RichardP's picture

All businesses in California have to be licensed in one way or another.  In this particular instance, the intent is to make it more difficult for someone in business to become a fence for stolen material.  A noble goal.

Eternal Student's picture

And a rather useless one. Just melt the stuff down into a different form and try to trace it.

But that's not what the quote above suggests. It suggests that it's illegal to buy gold, period. Which is absolutely ludicrous.

Arius's picture

no wonder you are bankrupt - the problem is u taking the country down w/ u

Red Neck Repugnicunt's picture

Or just sell it all to Sudden Debt. More boomer nonsense.

akak's picture

Care to inform us just exactly why you have chosen to impersonate another troll in this forum, RedNeckRepugnicunt?

Hephasteus's picture

Monday Primetime Zero hedge.

To catch a troll starring akak.

http://www.youtube.com/watch?v=JogttpcKFIA&feature=related

UncleFester's picture

Better up that fine, a single ounce will cover it!

I Fester

Eternal Student's picture

So, can anyone, especially the Pasadena Police, show me the State Law which says this? Otherwise, I'd say the Pasadena Police are misenterpreting a different law, or just making stuff up.

 

 

rampancy777's picture

"...misenterpreting a different law, or just making stuff up."

isn't that the government's modus operandi?

RichardP's picture

... can anyone ... show me the State Law which says this?

It could be a Pasadena city law.  Or county law.  It need not be a state law.

Eternal Student's picture

It would be very ineffective it it were. Just pop over next door.

But in any case, the actual law apparently can't be cited, so at this point, I question whether it exists.

bunkermeatheadprogeny's picture

They just started requiring a license in Florida 2 years ago.

Sean7k's picture

This article refers to buying stolen property and properly reporting sales for tax reasons. I recommend you read the whole article at the reference. 

Sylvia Plath's picture

Looks like someone is going to finally get a peek into the vault... but then what happens if all is empty? This is like staring at the fan, waiting for the shit to hit it...

 

Sudden Debt's picture

I HOPE THEY DON'T GET THE CURSE OF THE BALD MUMMY IF THEY OPEN THE THOMB!!!

midtowng's picture

The Fed recently lost the lawsuit against Bloomberg. Is the Fed losing influence?

knukles's picture

The Fed recently lost the lawsuit against Bloomberg and what has Bloomberg received other than either the "Nope, not for you, so sue us again, asshole." response or a passel or blacked out pages?

Plus, forget not, that under legislation passed within the last several years (I do not remember which bill.) information such as that may at the discretion of the agency at hand, be declared of importance to 'national security" and thus not subject to distribution.

And yeah, yeah, yeah, I know the Fed's not an agency, but don't bother me with details.  You'll miss the whole point of the dog and pony expose.

Interesting to hear b-b-bungee's response to the man who wants his nose under the tent at the next hearing what with this new development. 

UncleFester's picture

They wonn't even need to pull out the nat'l security bs, they'll just pay off the judge.  My advice (contrary to the popular saying) is to spend it all at once as it will be worth-less tomorrow.

Dr. Porkchop's picture

Maybe that's where Iraq's WMDs are.

XPolemic's picture

I don't know who junked you, but fuck them. +1 Funny.

sushi's picture

All they will find is that the economy of the Frei World is collaterized by The Chairman's back left upper molar.

Bill D. Cat's picture

It saddens me that there are no Geraldo references yet .

Diogenes's picture

It won't be empty. There will be a piece of paper "IOU 8000 tons of gold (signed) Richard Nixon". Ha ha ha.

Cleve Meater's picture

Exactly... I'm not so sure I'd want to be the judge reviewing the docs.  It's like opening up the Ark of the Covenant or Pandora's Box.

cossack55's picture

I'm certain The Ben Bernank will have no problem printing up the required amount of gold.  Like, what, some linen and gold ink. Big deal.  Back to sleep.

Sudden Debt's picture

GO LONG GOLD COATED SPRAY CANS!!

TheGoodDoctor's picture

I was thinking 3D TV's too. I mean line the walls of the vault with them and run some footage from 40 years ago.

Quinvarius's picture

Yeah.  Hey judge, please where these glasses when you go into the vault.  LOL.

knukles's picture

Huffing gold spray paint securing America's reserves.

Clark_Griswold Hedge Mnger's picture

Mr. Fletcher, you look strikingly familiar.

Regards,

Clark Griswold

Irwin Fletcher's picture

I'm a genius with food additives, Underpants.

TideFighter's picture

We're off to see the BerWizard, the wonderful BerWizzard of OZ.

Oh, wait, no OZ. Nevermind.

Sudden Debt's picture

better not look behind the curtain or the flying monkey's will get you!

eftian's picture

BerWizard to have flying monkeys distribute QE3

Clark_Griswold Hedge Mnger's picture

Show me the money-...err..., gold, Bitchez

 

traderjoe's picture

So my question is, IF there is any gold - who owns it? I seem to remember reading somewhere that the UST sold all of the US gold to the [privately held] Federal Reserve at $35 an ounce in the '30's. Is that correct?

Clark_Griswold Hedge Mnger's picture

So the story goes, the US gold at Ft Knoxx, is no more as it is held as collateral for the debt, but at what price who knows.... but I'm sure the crooks, eh I mean bankers got a good price for it.

Jerry Maguire's picture

The issue I always heard was whether there was any gold at Fort Knox at all.  Some people seem to believe that it was all hauled out sometime in the 1960's and mebbe sent to Germany. 

It's important to know where it is physically, if it even exists anymore and hasn't been turned to jewelry or whatever.

http://strikelawyer.wordpress.com

 

markar's picture

Hohum. DOJ will just get an injunction against this. National security, you know.

gwar5's picture

I just saw that, came here for the take home

I can't believe the gold is just sitting there not being utilized, when it can be stolen

Time is overdue for it to be moved away from the FRBNY

Ron Paul gave a shot across the Fed bow too...

Competing currencies? Fed accountability?  Careful Ron.

Terminus C's picture

Ron doesn't have to worry.  It's not like they have every killed any high ranking polititians before...

Freewheelin Franklin's picture

Right. Planes never fly into the sides of mountains.