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To: long-gone who wrote (35287)	6/13/1999 1:17:00 PM
From: Rarebird	Respond to of 116764

IMF GOLD SALE IS A FARCE and BIG LIE: Mother of All Absurdities: IMF Gold Sale & Debt "RELIEF" An Orchestration by the Four Horsemen of the Gold Apocalypse… G7 Gold Sales A Yahoo communiqué on June 12, 1999 is painfully demonstrative of the outrageous audacity of G-7 nations to nurture and perpetuate the cancerous lie surrounding gold. This monumental act of deception plays in sinister and harmonious concert with the manipulative group so guilty of price-fixing the shinny yellow during the past several years! I mention here only the essential parts of their most recent attempt to deceive and mislead. Following their blatant and malicious effort to distort what is really going on, I will present an irrefutable argument, which will peel the masking skin from this rotten onion, so we may all see the deceit and smell its putrid stench. "FRANKFURT, June 12 (AFP) - Group of Seven (G7) finance ministers reached agreement here Saturday on a plan to ease the debt of the world's poorest countries, including the sale of some 300 tonnes of IMF gold." "Ministers gave few details on the debt agreement after a one-day G7 meeting here, because the proposal is due to be announced at the three-day G8 summit (the G7 plus Russia) beginning in Cologne on Thursday." "The world's 41 poorest countries have debts totaling more than 200 billion dollars." "German Finance Minister Hans Eichel also told a news conference that the G7 members had finally agreed to sell about 10 percent of the International Monetary Fund's gold reserves to help fund the Highly Indebted Poor Countries (HIPC) debt relief initiative." "There will be a very limited amount of (IMF) gold sales, 10 million ounces (i.e. 300 tonnes)," German Finance Minister Hans Eichel told a news conference after a one-day G7 meeting here." (End of essential G7 comments) Critique of the June 12th G7 Subterfuge The "benevolent fathers" of G7 announced they will "generously'' sell 300 tonnes (exactly 9.6 million ounces) of IMF gold in order to provide debt relief to the Highly Indebted Poor Countries (HIPC). Subsequently, the illustrious "benevolent fathers" indicate: "The world's 41 poorest countries have debts totaling more than 200 billion dollars." Whooooooo there! Let's step back and take a careful and critical look at this seemingly "generous" offer. Assume the "benevolent fathers" sell 10 million ounces next week at the current price of about $260/oz. That will provide the outwardly appearing prodigious sum of $2.6 billion. But HEY, the Highly Indebted Poor Countries owe a whopping $200 billion. The so-called "debt relief" ain't even a spit in the bucket. HELL, it is more like a spit in the Pacific Ocean. Let's be even more specific. The "generous" offer of the "benevolent fathers" to provide $2.6 billion debt relief is a mere 1.3% of the total $200 billion debt (2.6/200). FURTHERMORE, disingenuously named "debt relief" of $2.6 billion is not even a FRACTION of one year's interest on the $200 billion loan principal. Third-world countries are considered high risk, which must be reflected in the interest they pay on loans. This increased risk interest is traditionally 200 basis points (2%) above the coupon rate of US Treasuries - which is currently at 6%. Consequently, the HIPC are paying about 8%. And 8% annual interest on $200 billion is $16 billion - fully SIX TIMES MORE than the "generous" debt relief offer of the "benevolent fathers." Think of the audacity of the deceitful announcement. The "generous" debt relief offer will not even pay TWO MONTHS INTEREST ON THE DEBT of $200 billion! It is too painfully clear that the IMF Gold Sale announcement on June 12th is a blatant undertaking to mislead and to bamboozle the general international public. The real purpose of the announcement is obviously to further force the price of gold down. Moreover, it is not inconceivable that the gold to be sold will mysteriously find its way back to some hapless Central Bank, which "leased" the gold to a Bullion Bank or to a gold mining company - neither of which can return the actual bullion - since it was already sold to someone else (see Mr. Butler's numerous reports on the subject, which prove beyond a shadow of doubt that Central Bank gold "leasing" is really a SALE). CONSEQUENTLY, it should be obvious to all that the stated purpose of the IMF gold sale is bogus and nothing more than A SHAM. Internet Rumour While I was writing this report someone posted information on the Internet stating the gold sale proceeds were not going directly to the amortization of the outstanding debt. Instead, the sale proceeds would be invested - and only the interest thrown off would be applied to reduce the debt of the HIPC. This has not yet be verified. But its ramifications are stupendously incredulous in a negative sense. Following is how I understand the upshot of the Internet information. If the IMF's 10 million ounces were sold at the current market price, it would net about $2.6 billion. Invested at 6% throws off $156 million - comprising the entire annual "relief" - which would be applied to the HIPC outstanding debt. It is too utterly fantastic. It is sublimely incredulous. This so-called "RELIEF" amounts to the gross absurdity of a preposterousness 78 cents off for every $1,000 of loan principal. Can you imagine the sublime ridiculousness of this effrontery to one's intelligence. But please be advised that I have not yet been able to determine the veracity of this Internet information. HOWEVER, if indeed true, heads should roll at the IMF - and those less guilty should be tarred and feathered. The IMF communiqué insults the intelligence of every man with their asinine statements like that found at the web location below. The draconian absurdity of the announcement gives rise to the growing suspicion the Managing Director of the IMF, Mr. Michel Camdessus, suffers from acute dementia or progressive senility. To the contrary, one is forced to conclude Mr. Camdessus is an integral part of the cabal, manipulating gold prices during recent years. In essence he is in cahoots with the gold manipulators. And if proven guilty, he should go to jail. The Four Horsemen of the Gold Apocalypse… Death War Famine Pestilence Greenspan Rubin Camdessus Munk asia.yahoo.com KeyserSoze 14 June 1999 gold-eagle.com

To: long-gone who wrote (35287)	6/13/1999 1:17:00 PM
From: Baba 2	Read Replies (2) \| Respond to of 116764

RH, Required reading.... gold-eagle.com Time to spread the word....

To: long-gone who wrote (35287)	6/13/1999 3:59:00 PM
From: PaulM	Read Replies (2) \| Respond to of 116764

Richard, GATA's grievances will ultimately be drowned out by the pain of millions of 401k's, the end of some major industries (e.g., mutual funds, CNBC and other financial reporting networks, all essentially began with this bull market) and massive impairment of bank and insurance capital. Is it hard to understand why CB's and the G-7 manipulate gold, much in the way the yen, mark and dollar are alternately supported and devalued? The only difference is that in the case of gold, a) we are told it is not money and b) an industry is involved. So more double talk is needed. The way I see it the Euro heralds huge dollar losses and gold gains (wea re on the edge of a a 10 year gold bull). If you look past the weakness of the Euro currency, and look at the widening spreads between Euro bond yields and American bond yields, you realize that perhaps the Euro is working after all. As Central Banks begin in earnest to diversify out of treasuries and into eurobonds, u.s. bonds will necessarily enter a prolonged, severe bear market. Eventually, this will take U.S. currency with it. For some of the (often over-leveraged) gold carry traders/gold shorts, this spells disaster for one end of the gold carry (the long treasury part of the transaction). We perhaps are beginning to see this now, and if so, the process should accelerate because of this leverage. As many have noted, this should mean that gold goes up as interest rates go up (one reason is that carry traders are forced to cover). The fact that gold hasn't moved up in the face of this is where the manipulation (BOE, IMF gold sales) has to come in. Naturally, Britain, which is closest to this via its regulation of the gold market, is leader of the pack. But as this plays out, there is no way the U.S./Britain can defend the gold short position in the face of a dramatically weaker dollar resulting from foreign moves out of U.S. assets. Even were it possible, the price of everything else will be going up, so there will be little point in keeping a low gold price. To the contrary, gold and silver will benefit especially because of the short position and because they are among the few potential real stores of value. Perhaps this is why three key U.S. economic officials have resigned in recent weeks? The public has to be prepared for all this, just as they have to be prepared for everything. Look for Greenspan to make positive statements about gold. Perhaps his recent suggestion that gold is sold by central banks "who know they can buy it lower" is the beginning.