CASE MAY EXPOSE U.S. GOVERNMENT'S GOLDEN HANDSHAKE
By JOHN CRUDELE
May 29, 2001 --
SOME of the alleged secret financial dealings between the Clinton administration and the financial markets could soon be made public.
No, Monica's not blabbing again.
These secrets could come out of legal proceeding in Boston that has gotten absolutely no publicity in this country although the foreign-language press has been keeping people somewhat up to date.
The suit was filed by a guy named Reginald Howe, who is a member a Texas-based group called the Gold Anti-Trust Action Committee. Neither he nor the group is wacko.
Howe is a Harvard-trained, top-notch trial lawyer who is alleging that the U.S. government, in cahoots with New York banks, has purposely kept the price of gold artificially low for six years.
GATA has been charging that the conspiracy was aimed at keeping the dollar strong.
But it also - perhaps inadvertently - helped Wall Street make billions on bullion by borrowing gold from Central Banks at 1 percent interest rates, selling the gold and then investing the proceeds in other markets at much higher rates of return.
Howe, with GATA's help, alleges in Massachusetts Federal District Court that the maneuver was a sure-fire rig as long as the price of gold didn't rise - which the government saw that it didn't.
A trial date hasn't yet been set by Judge Reginald C. Lindsay, who recently heard arguments on whether the case should go forward.
If it proceeds, the next important step will be "discovery." That's when the gold bugs will get their anxious little hands on government secrets.
If the judge cooperates and lets the goldies examine the government's briefs, there is no telling what will be discovered.
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