Here is the interview from the Stockhouse site:
Stockhouse.com Interview - Jan. 29, 1999
THE GOLD BUG WHO FIGHTS BACK
Grass Roots Investigation into the Long-Term Capital Management
Bailout that May Explain WHY Gold Prices Aren't Rising
A StockHouse Interview with Bill Murphy,
Chairman of the Gold Anti-Trust Action (GATA)
• • •
<Picture>Bill Murphy and a small group organized GATA in response to what they believe are recent admissions by major Wall Street investment houses and U.S. Federal Reserve officials. GATA believes Wall Street and the Fed have been colluding, and continue to collude, to control the price and supply of certain financial securities, some of which involve gold. GATA plans on mobilizing the gold community: mining companies, their shareholders, and people who believe in gold's monetary function. The purpose behind this action is to file an antitrust lawsuit against the appropriate parties for manipulation of the price of gold.
Mr. Murphy was interviewed late Thursday night, prior to his Friday appearance on CNBC-TV, about his loud investigation into gold-price manipulation by Wall Street brokerage firms, international banks, the U.S. Federal Reserve and members of the Clinton Administration, and one or more willing accomplices among the world's major gold companies. In this interview, Mr. Murphy appears closer to announcing a major class action and anti-trust lawsuit against the parties that he believes have intentionally held the price of gold below US$300/ounce.
STOCKHOUSE: HOW DID YOU START GATA AND WHY?
BILL MURPHY: This just came into being a week ago. I wrote an article and another person wrote "Invitation to a Lawsuit." We then formed a committee and put out a press release so that we could get information from all kinds of people to determine our course of action. We felt there have been violations of anti-trust law. The mining industry and the investors involved in the gold markets have been traumatized by things that we think are wrong and possibly illegal.
SH: WHAT EXACTLY IS GATA DOING?
BILL MURPHY: What we're hoping to do is rally the gold industry, rally the shareholders, and find out more about collusive activities. We are now going into discovery. We're gathering together forces in the gold industry to put together our case. We're organizing in response to some things that are very wrong in the marketplace. We're gathering information to determine where we are going to go. There are many people in the gold industry that know what is going on, but they haven't said anything because they don't have a forum. A lot of them can't say anything because the same people that are "bearing" them is where they get their financing. I've gotten lots of information in the past three or four days about what's really going on. Watergate-type "mole" information is being fed to us so that we can get the information and go towards where the (law) suit should go. Once we get all of our material, we will go into action.
SH: WHAT IS THE FOCUS OF YOUR INVESTIGATION?
BILL MURPHY: The bailout for Long-Term Capital Management. We think there is an attempt to control price and supply of derivatives. The Counterparty Risk Management Group, which was formed by some of the same Wall Street investment houses, headed up by Goldman Sachs and J.P. Morgan, to collude with competitors in business to manage risk, to seek to control price and supply. If General Motors, Chrysler and Ford got together to determine what their costs would be and what their sales would be, would that stand?
We're looking specifically at the people involved in the Long-Term Capital Management bailout. We're looking specifically at the people involved in the Counterparty Risk Management group. They're (Goldman Sachs and J.P. Morgan) part of it, too. We're going to look at all the activities of all in this group. The last thing these people want is to have it exposed how short gold they are, as a group.
SH: WHERE DOES THE U.S. FEDERAL RESERVE FIT INTO THIS?
<Picture: Federal Reserve>BILL MURPHY: Greenspan announced (to the U.S. House Banking Committee) on July 24th: "central banks stand ready to lease gold in increasing quantities should the price rise". After that, the price of gold tanked. Alan Greenspan is famous for (his vague and ambiguous) "Greenspeak." Why did he come out and make that blunt a statement? I think (he's involved in this) absolutely and there are reasons for it. I believe the Federal Reserve, because of the Long-Term Capital bailout, Goldman Sachs - that's Robert Rubin's old firm, and the New York financial institutions know how much short gold they are, because of how much money they can borrow at 1% and put it into these (gold) derivatives.
SH: WHY WOULD THE FEDERAL RESERVE BE CONCERNED ABOUT THE PRICE OF GOLD?
BILL MURPHY: They (the Federal Reserve) fear a rise in the price of gold because you have the euro coming on stream. We believe there's an Asia Financial Institute in the works, an Asian financial entity of sorts, where the yen will be the dominant currency with a gold backing. We know that at the end of last year, the Asian sector was buying gold and they were told twice last fall, according to our sources, to back off from the gold market - by our (U.S. government) officials. They were aggressive buyers of gold last year and we think they are ready to come back into the market in a major way.
SH: WILL THIS INVESTIGATION END UP IN A LAWSUIT?
BILL MURPHY: Yes. We're not waffling. We want to make sure. We think it's clear that there is collusion going on. We're putting our facts together to most likely bring anti-trust lawsuit and collusion violations against the people we think are guilty. I would say that the U.S. Federal Reserve Board is involved because of Alan Greenspan's statement. We want to know why he made that comment (see above). We know the Federal Reserve in New York was involved in the bailout. We want to look at all the people involved in the Counterparty Risk Management group.
SH: IS U.S. TREASURY SECRETARY ROBERT RUBIN INVOLVED?
BILL MURPHY: He certainly is aware of what's going on. There's no way he could not be aware of what's going on. |
