Alan,
Since you have an access problem to Le Metropole, thought you might like to see this:
GATA—GOLD ANTI-TRUST ACTION
GATA will stop a cabal of U.S. brokers fixing a low gold price as a
means of feeding the speculative mania that is ruining the world—in the gold sphere, specifically South Africa and Russia.
GATA is going to be welcomed by
 Everybody who know that a genuinely free market requires legal transparancy, anti-trust vigilance and legal action against cabals
 Everybody who wants sustainable economic development and
recognises that one of the first steps for this must be to bring order to the prevailing economic sanity THROUGH EXISTING LAWS WHERE POSSIBLE
 Everybody who wants monetary reform and knows that the call for this will be advanced as the ill of the prevailing system becomes
transparently clear
 Everybody who has respect for gold as a precious metal, to be dealt with openly, honestly, to the benefit of all
GATA is now just one-day old.
We need your help. You will notice that I am posting this request for
help to a short, select list initially. GATA will need patrons and
active support in the U.S., England, South Africa and Sweden, and I know that you can help us with respect to one and/or the other need.
BACKGROUND
The campaign is being orchestrated by Bill Murphy, a graduate of Cornell who has been around the financial and commodities markets for over 25 years, and since Labour Day last has been moderator of Le Metropole Cafe, a pro-gold and silver websit(www.lemetropolecafe.com).
In an impassioned editorial on 20 January, Murphy, by pseudonym Midas Le Metropole, wrote: "Queries have come back to us from everywhere: 'Could Goldman Sachs ( Secretary of the Treasury, Rubin's, former firm ) really be a part of a cabal that has been holding down the gold price?' We will continue to sound off that we believe that this has been just such the case. We will do so as we try to 'turn up the heat' on the interlopers that have created havoc for those in the gold industry. We also believe this 'Goon Squad', and their cronies that has been led by Goldman Sachs, have muscled all their forces to knock the price of gold down one more time, so that they, and their fellow bullion dealer shorts, can begin to cover their massive goldshort positions from strength, and not cover because they are forced to buy in a panic."
When Le Metropole started the price of gold was below $280. Murphy's
commentary as Midas recruited David Niven, Anthony Quinn, Gregory Peck and James Darren to take out powerful central bank and producer selling resistance ( Guns of Navarone type ) at $290. They did so and the growing pro-gold lobby thought the 19-year-old bull market finally had began. "But, every time gold poked its head above $300- WHACK," writes Murphy. "The trading patterns
of both gold and silver started to look extraordinarily peculiar,unlike anything I have seen in my 25 years of watching commodity markets."
The gold mine supply for 1998 was 1600 tonnes short of a demand for
over 4100 tonnes! With the bleeding rand and roubles producers in South Africa and Russia (responsible for 60 percent of supply) are naturally going easy on supply in the hope of better times. Although they are shooting themselves in the foot by doing so, to date producers have been pleased to lend gold forward to traders at cheap borrowing costs, of under 2 percent, for them to sell the gold and use the cash from the sale for investment purposes."
Gold is a proxy....Its composition is both political as well as
financial. The role it plays is far greater than what Newspapers have
been conditioned to report, just ask Alan Greenspan or review various
papers he has written over the years.
Some will have you believe gold is a mere commodity, again, who is
saying this and more importantly ....why? The answer is because gold is a threat and its upward movement presently brings more harm than good.
Tremendous amounts of monies from these simple transactions have helped to fuel the financial markets. Over the last three years as gold was leased into the market it was often sold short, which inturn was leveraged again into various other derivatives. A chain has been created stemming from the same first links.
First a cheap yen, into 1995/96, then gold have been the links of origin upon which a derivatives market has mushroomed that now totals a staggering $140 trillion, according to authoritive sources—that is,
almost five years of total world economic activity.
Given your interest and support, Bill Murphy and other highly regarded financial analysts will tell you, in the simplest possible layperson's language exactly how and why Goldman Sachs, JP Morgan and the other members of the cartel have been following up on something that had begun with cheap yen borrowings, and now need to be stopped.
Murphy again: "The big boys scored early and big with the yen trade. If it could be done with yen, why not gold? The gold loans were similar to the yen loans in borrowing costs. As long as the price of gold did not take off (so that the principal did not have to be paid back as a result of a much higher gold price and thus making the loan an expensive one), it was a winner."
I have been so impressed with Murphy's passion and the rightness of his cause, I came in with my own response and the piece Gold Versus the Dollar, which I e-mailed to you last Thursday morning. This piece was posted at Le Metropole (www.lemetropolecafe.com) and given prominence at www.gold-eagle.com, which has over 500 000 visitors from 143 countries.
The owner-editor of gold-eagle, Vronsky, wrote me, "many thanks for
sharing your work and wisdom with our global readership."
Then yesterday, there was an Invitation to a Law Suit by Chris Powell, an established analyst. He wrote through Le Metropole, "If Midas is right about what is happening, the brokerages and their accessories are part of a vast criminal conspiracy that is breaking antitrust law. We of the Gold Party should be suing to stop them."
The response from other members of Le Metropole Cafe was immediate:
Murphy has reported, "We have $4650 pledged so far in the first 10 hours to take on the Goliath's of Wall Street. Extraodinary!!! Here is one of the responses: 'My name is Sam. I am an Army officer and a gold investor. I hate manipulators and liars. I pledge $150 and my moral support for this noble cause'. Good Luck, Chris."
Powell had picked up on how Goldman Sachs, JP Morgan and other
brokerages recently announced creation of what they call the
Counterparty Risk Management Group, "whose purpose seems frankly to
manipulate the price of certain securities, particularly derivatives,
some of which likely involve gold, in the name of preventing disruption of the market (and, of course, preventing, most of all, damage to the brokerages themselves)." And Powell had pointed out that this is absolutely counter to the anti-trust laws protecting economic competition. "To quote the World Book Encyclopaedia, 'These laws prohibit price fixing, an agreement among business firms to control the price or supply of a product or service.' .. The federal government, through the Justice Department and the Federal Trade Commission, can enforce antitrust laws. But private parties can seek enforcement aswell by filing federal and state lawsuits. It doesn't take much to start such a lawsuit -- a sworn affidavit based on sincere belief. And once a lawsuit is started, the plaintiffs have the power to compel the production of testimony and evidence from the defendants."
I strongly recommend, to the point of imploring you, to look into this. Having done so, I am certain you will lend your support.
Bill Murphy and I are shaping out an understanding of how we should
proceed, and I will come back to you a little later today with a clearer presentation of how we intend to move on GATA and how we would like you
to help.
With regards,
Boudewijn Wegerif
Project Leader, Monetary Studies Programme -
A Research Project of VawdingeBy Folkhogskola.
monetarystudies@hotmail.com
Postal Address: Idaberg, S-153 92 Hölö, Sweden.
Tel: +46-(0)8-551.57841.
The Monetary Studies Programme is a Research Project of VawdingeBy
Folkhogskola, to prepare material for study groups and seminars on
Understanding Money and Money's Role in History from a religious,
psychological, political and economic perspective.
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