More beans on the hot seat :-)
10:45p EDT Thursday, June 8, 2000
Dear Friend of GATA and Gold:
You'll see from GATA Chairman Bill Murphy's
comments below that GATA now is raising
serious questions about what is going on
with gold being shipped out of the Federal
Reserve Bank of New York and how it is being
accounted for. We just might have a few
government agencies going at it before long.
The Internet site of the Martin Armstrong
Defense Fund has grown and I encourage you
to check it out. As you may recall, Armstrong
is the financial adviser whose lawyers were
taken away by the government just as he
began to talk about various market
manipulations. The site is at:
armstrongdefensefund.org
Please post this as seems useful.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
GATA MAKES MORE TROUBLE AT THE NY FED
By Bill Murphy, Chairman
Gold Anti-Trust Action Committee Inc.
Thursday, June 8, 2000
Gold was trashed late today by Hannibal Cannibal Chase
Bank just as it looked like it would make a run to go
positive for the trading session.
On the positive side, we received word that hedge funds
were indeed going long. If that trend continues, the
open interest (which was up 1,300 contracts yesterday)
should continue to build as the gold price moves
higher.
On that note, tomorrow is a very important day. August
gold closed right above its 200-day moving average,
which is moving higher. The 15-day moving average is
about to cross its 40-day moving average to the upside
The last two times that happened were the spikes up in
September last year and February this year.
More from Agent W about the Federal Reserve Bank of New
York gold moving out of the country. Reg Howe covered
this issue in an essay last month, "The Fed: Up to its
Earmarks in Gold Price Manipulation." A quote from Reg:
"What is immediately apparent from this chart is that
disbursements of gold from the earmarked accounts of
foreign central banks and other foreign official
agencies at the New York Federal Reserve Bank, shown in
blue, are included in exports of non-monetary gold as
reported by the Commerce Department, shown in red.
Plainly there is no realistic sense in which these
withdrawals of foreign official gold from the Fed are
U.S. exports. Possibly they are reported this way by
mistake, perhaps reflecting the fact that non-monetary
gold cannot be distinguished from monetary gold at the
points where exports are measured. Intentionally or
not, the effect is to gild the export numbers, making
the trade balance appear better than it is."
GATA's Agent W has been doggedly on the case to find
out what is going on here and what it might mean. This
is a follow up to last night's dispatch:
* * *
From: Agent W
To: Bill, Reg, Chris
June 8, 2000
"Called the staffer at Census who is assigned to
investigate and answer my letter to pass on my news and
the names of my contacts at the Fed and Commerce. She
confirms that there is a clear discrepancy and that
this is a serious matter.
"It probably won't be resolved quickly because of the
different government agencies involved, but she thinks
my providing her with my contacts will help. She seems
quite motivated. I note that this staffer has been able
to get some answers and stir up interest from Customs,
whereas Customs does not return my phone calls.
"She also believes that a key issue may be that the Fed
considers the gold vault a warehouse but Customs does
not. If the gold vault is a warehouse, the customer
files the import documents; if not, then the Fed must
do so."
* * *
>From www.LeMetropleCafe.com member and GATA contributor
Carlos:
"I was watching CNBC this morning, and Bill Seidman,
their chief commentator, was being asked some questions
over the phone. One viewer asked him if U.S. taxpayers
would have to bail out J.P. Morgan and Goldman Sachs,
as they were shorting gold and were tremendously
exposed should the price rise.
"Bill answered very politely that he didn't know that
those guys were short, but that he doubted the
taxpayers would pay the bill, since Goldman Sachs and
J.P. Morgan were protected by the FDIC.
"I think the word is spreading around real fast."
-END-
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