... more commentary linking ... Goldman Sachs ... scandal ...
Subj: Bill Murphy - "Cafe des Scandales" at the Matisse Table
Date: 9/5/99 7:12:05 PM EST
From: LePatron@LeMetropoleCafe.com
To: dougak
Le Metropole members,
Long Term Capital Management -
LTCM's attorney, Rickards, resigns without responding to the Cafe
Hillary Clinton "shorting gold rumor update"
Recapping what we have documented about The Clinton
Administration, the N.Y. Fed, Goldman Sachs, England's
Exchequer, The Bank of England, Tony Blair
Martin Armstrong, Princeton Economics International,
Japanese Investigators, U.S. Law Enforcement...
Bill Murphy, Le Patron, Chairman, Gold Anti-Trust Action Committee
Le Metropole Cafe, lemetropolecafe.com
From: LePatron@LeMetropoleCafe.com
To: dougak
Subject: Bill Murphy - "Cafe des Scandales" at the Matisse Table
Date: Sun, 5 Sep 1999
It is fascinating to me that much of what we have covered in the Cafe
over the past year is starting to synchronize and beginning to boil over
a bit ... and examine what is happening on the potential "scandal" front
and update The Cafe on the peculiar nature of it all.
... the manipulation of the gold market began early last fall when
Long Term Capital Management was supposedly taken off the hook on
a 300 tonne "borrowed gold" short position by the financial entities
that bailed them out ... Our protestations caught the attention of
Long Term Capital Management and their attorney, James G. Rickards,
who sent us a letter along with affidavit from Principal, Eric Rosenfeld.
... Rikards stated that Long Term Capital Management denies any involvement
in the manipulation of the gold market and Rosenfeld said to the Cafe,
"None of LTCM, LTCP, nor their affiliates has ever entered into any
transaction involving the purchase or sale of gold, including without
limitation, spot, forwards, options, futures, loans, borrowings,
repurchases, coin or bullion, long or short, physical or derivative
or in any other form whatsoever."
I responded to Rickards in a letter saying that the Cafe never accused
LTCM of manipulating the gold market, nor did I ever say that that they
"traded" gold. I strongly suggested that had "borrowed" 300 tonnes
(approx) of gold and had gold exposure in a credit sense with the
bullion banks and asked him for a response.
He never did respond to me and it was just announced over the press wires
that he resigned from Long Term Capital Management to join another firm...
Then there is information we received from a very sophisticated source
that a blind trust for Hillary Clinton "shorted" gold instruments just
prior to the Bank of England gold sale. Ironically, the media reported
yesterday that the down payment for their new Clinton's new home in
Westchester County, New York came from her blind trust.
It was suggested to me from a source that we try and find out if Hillary
Clinton has a blind trust at Goldman Sachs. The Gold Anti-Trust Action
Committee and the Cafe now have allies looking into this matter.
We are trying to find out who is handling her blind trust(s) or any
other type of account she might have and, once identified, attempt to
elicit a response about the gold shorting innuendos.
Why would this be the H bomb as far as we are concerned ?
Simply put, I have set forth much commentary linking The Clinton
administration, the N.Y. Fed, Goldman Sachs, Long Term Capital Management,
England's Exchequer, The Bank of England and Prime Minister Tony Blair.
A revelation of this nature would solidify the link.
For example:
Former Treasury Secretary Robert Rubin, is a former Goldman Sachs CEO.
Former N.Y. Fed Governor, Ed Corrigan is a senior partner at Goldman Sachs
London based senior partner.
Gavyn Davies, is Goldman Sach's international economist and has close ties
to Tony Blair.
Davies wife, Susan Nye, is chancellor of the exchequer's office manager.
Dr Sushil Wadhwani, former Director of Equity Strategy at Goldman Sachs
International 91-95, sits on Bank of England's Monetary Policy Committee.
Jon Corzine former Goldman Sachs, CEO, has close ties to John
Meriwether, chairman of Long Term Capital Management.
Former Fed vice chairman, David Mullins , was a partner in Long Term Capital
Management, which, of course, was bailed out in part by Goldman Sachs.
Exhibit 2 and further background information on the significance of the
Hillary Clinton gold "shorting" story: this is commentary about the Bank
of England gold sale from the document that I sent to Senator Phil
Gramm, Chairman of the Senate Banking Committee:
"Yet, the night before the BOE announcem.....
... to comprehend the significance of determining if there is an account
of any kind some place that shorted gold for Hillary Clinton just prior
to the Bank of England gold sale announcement. With the help of others,
I am in the process of trying to track down where her accounts are located ?
Then we will start asking questions. It will be interesting to first find out
if Hillary Clinton has an account at Goldman Sachs of any kind!
Now for the "scandale du jour." It revolves around GATA protagonist
Martin Armstrong and his Princeton International Economics firm.
The latest from two wire services:
New York, Sept 2 (Bloomberg) - Republic New York Corp said it suspended the
head of its securities unit after an investigation of a client's affiliate
in Japan. HSBC Holdings said the probe may delay acquisition of Republic.
The bank is under investigation by U.S. law enforcement and regulatory
authorities for inflating the net asset value of an investment fund, the
Wall Street Journal reported. Republic said it is working with U.S. and
Japanese regulators on the probe.....
Republic isn't the subject of its investigation, the FSA said.
The Japanese authorities are looking at Cresvale International Ltd.,
an institutional brokerage based in Hong Kong, with offices in London,
Tokyo and New York, ... Princeton Economics International, a money manager
based in Princeton, New Jersey, owns Cresvale.
New York, Sept 3 (Reuters) -- "Analysts and a Republic shareholder told
Reuters they thought the Republic unit and the Princeton affiliates may
have participated in so-called "tobashi" deals, in which Japanese
institutions hide losses through complex derivative transactions.
The probe is limited to Republic's dealings with the Princeton affiliates
and does not extend to other client relationships, these sources said.
Analyst Gerard Cassidy of Tucker Anthony said," It appears one of two things
happened: Princeton told Republic this is what (the investments) are worth
and Republic took it at face value" or " Princeton in conjunction with
Republic Securities determined the value, which was artificially inflated."
... story goes on to say, "Republic also hired Lee Hennessee, an advisor who
helped clients pick hedge funds, or unregulated investment funds for wealthy
investors that trade a variety of securities usually using borrowed money."
This now begins to raise all sorts of issues on what we have reported to
you and one that we have not yet. We understand that certain other bullion
dealers have been lending gold to Republic.
That is very strange.
Republic is a bullion dealer.
Why are they borrowing gold from other bullion dealers ?
It is well known that Republic has done much of Armstrong's silver and
gold business on the Comex. Sources told me Friday that Mr. Armstrong
has not been seen on the Comex lately and they had heard that his
"funds" were not doing very well. In addition we have reported to you
that sources tell us that 4 hedge funds (Soros, Tiger, Moore Capital and
Martin Armstrong) are reportedly short anywhere from 30 million ounces
of gold to 50 million ounces...
But how can this be?
Martin Armstrong has had correspondence with GATA Secretary, Chris Powell,
denying he was short gold?
... It is my turn to respond to Martin Armstrong:
September 5, 1999
Dear Martin
If you are so on top of the Japanese markets and their way of doing things,
how come the Japanese are investigating one of your firms to such a degree
that U.S. law enforcement have been brought in to investigate you?
That is highly unusual and rarely happens.
You said months ago that "all" commodities were in bear markets and that
gold should be also. But now oil is trading at $22 per barrel, the CRB
has cracked 200 to the upside and the base metals in London are flying.
You are known to be one of the world's big silver bears, yet it has not
broken towards $2.78 like you predicted. How come and how short are you...
You stated there was "no interest" in gold. Rubbish. Gold demand in the
second quarter was 4% higher than any other quarter in history; it will
be even greater in the 3rd quarter. Demand for gold in India and Asia is
booming while demand for gold coins is soaring in North America and in
other locations. The premiums on gold coins are rising ...
"No interest" in gold ? Then why is the one month lease rate 4.2% when
the historical norm is about 1%? Gold lease rates have now remained at
abnormally high levels for longer than most can remember. Why was the
August Comex gold contract almost squeezed ? Did you know that demand is
now running about 160 to 180 tonnes per month greater than supply.
Perhaps, you are caught short about this fundamental piece of information ?
Oh no, I forgot. You told Chris Powell in your letter you were not short
gold. Something strikes me here. "Borrowing gold" for the past few years
has been one of the great windfalls of all time and you are one of the
mega gold bears. Hedge funds and many financial institutions (as stated
above) often borrow money to make investments. For some reason, your
firm is being accused of overstated assets, etc. Yet, both you and Long
Term Capital Management have told GATA that you are not short gold. Very
strange. Somehow it does not make sense that one of the most leveraged
financial institutions known to mankind (LTCM) and one of the most
bearish institutions regarding gold (PEI) in history, both publicly
denied to the Cafe and GATA that they are not "short gold."
That does not fly with me.
Yes, you are brilliant, but you have made your share of bummer market calls.
As I recall, you have been one of the great bears on the Japanese Yen.
Tis that no so ? Your prediction for the Yen, if my memory serves me
correctly, was about 278. Does that have anything to do with your
troubles with Crestvale ? The way I see it, if your short term gold gold
call is as on target as your Yen call, we gold bulls are in great shape!
You have pontificated your thoughts. I offer you mine - maybe an eye
opener would be good for you. The gold supply/demand deficit is much
greater than the bullion dealers have told you. The gold loans are
double what the bullion dealers have told you. We think that they exceed
10,000 tonnes right now. You say the gold market is not being manipulated.
I say the only reason that the price of gold is not double what it is now
is because the market has been manipulated.
The manipulation of the gold market is one of the great financial scandals
in U.S. history. Sounds like you have a few problems to deal with of your
own right now. Don't get caught up in this one too!
Bill Murphy
Chairman, Gold Anti-Trust Committee
Le Patron, www. LeMetropoleCafe.com |
