(GATA) (1) Exchange Stabilization Fund (2) ...no longer "if"... but "by who."
Subj: Reginald Howe - Gold Shenanigans: Suspicion Shifts to the Treasury
Date: 1/26/00 8:40:06 AM EST
From: LePatron@LeMetropoleCafe.com
Le Metropole members,
Reginald H. Howe has served commentary at
The Toulouse-Lautrec Table entitled,
"Gold Shenanigans: Suspicion Shifts to the Treasury."
Reginald is a lawyer from Harvard, a former mining executive,
and has his own web site goldensextant.com
The Toulouse-Lautrec Table
Discussion du Jour: World Markets
Gold Shenanigans: Suspicion Shifts to the Treasury
Reginald H. Howe
goldensextant.com
January 25, 2000
Fed Chairman Alan Greenspan denies.....
Apart from the Federal Reserve, the only other arm of the U.S. Government
with broad statutory authority "to deal in gold, foreign exchange, and
other instruments of credit and securities" is the Exchange Stabilization
Fund. (31 U.S.C. sec. 5302b). "Subject to the approval of the President,
the fund is under the exclusive control of the Secretary [of the Treasury],
and may not be used in a way that direct control and custody pass from the
President and the Secretary." (31 U.S.C. s. 5302a2.)
The Exchange Stabilization Fund is also responsible for administering
U.S. holdings of Special Drawing Rights. (22 U.S.C. sections 286o, 286p.)
The Treasury secretary is required to provide detailed monthly financial
reports of its activities to the House and Senate Banking Committees.
(31 U.S.C. sections 5302c1.)
My suggestion that the Fed might be selling gold call options represented
an effort to assign some credible motive to the surprise announcement.....
Short positions in gold were thus in considerable peril. The manner of
the British sales -- periodic public auctions versus unannounced sales
through the Bank for International Settlements -- belied any effort to
get top dollar and smacked of intentional downward manipulation of the
gold price.
All indications are that these sales were ordered by the British
government over the objection of Bank of England officials. British
Treasury officials provided some spurious reasons for the sales but
no persuasive ones, leaving only one logical conclusion: The gold sales
were directly ordered by the prime minister for unknown political or
other reasons. What is more, his reasons are.....
These developments led me to hypothesize a scenario in which U.S.
officials called on Prime Minister Tony Blair for assistance in
containing the gold price while they unwound short positions put in
place to cap it. Chairman Greenspan makes no mention in his letter to
Senator Lieberman of any activities by the U.S. Treasury or the Exchange
Stabilization Fund designed to influence the gold market. In responses
to questions propounded earlier by GATA, a representative of the
Treasury dodged questions relating specifically to writing or otherwise
dealing in gold call options. Surely former Treasury Secretary Robert
Rubin was aware of.....
Maybe the Treasury will be more forthcoming in its further responses
to Senator Lieberman.
In the meantime, results of the.....
Could it be that the Treasury did not want gold rising while stocks
are under pressure, not to mention with Al Gore facing a big test in
New Hampshire? (If I were Senator McCain, I'd take a careful look at the
monthly reports filed with the Senate Banking Committee by the Exchange
Stabilization Fund.) More importantly, even with reported.....
... not a good sign for the shorts.
Subj: Patrick Guenkel - Gold's Hidden Agenda
Date: 1/26/00 6:00:25 PM EST
From: LePatron@LeMetropoleCafe.com
Le Metropole Cafe,
Patrick Guenkel has served commentary at
The Man Ray Table entitled,
"Gold's Hidden Agenda."
"The gold market's activities and its curious price history over
the past year leave us with yet more questions unanswered.
The question appears to no longer be "if" the gold market is being
manipulated, but rather "by who." There are several possibilities.
Investment banks and bullion dealers may be manipulating the market,
and making a fortune by playing both sides: financing mining companies
and shorting gold. When gold prices rise they are checked by gold lending
to protect those who have shorted. Some market analysts believe that the
US Federal Reserve is indeed selling gold through untraceable offshore
transactions to keep the reserve banking system running."
The manipulation tide is rising.
All the best, Bill Murphy
Chairman, Gold Anti Trust Action (GATA) gata.org
Le Patron, Le Metropole Cafe lemetropolecafe.com
The above mention of GATA is as follows.
Bill Murphy, Chairman, Gold Anti Trust Action (GATA) gata.org
Also, GATA related articles can be obtained at the pay for view site.
Bill Murphy, Le Patron, Le Metropole Cafe lemetropolecafe.com |
