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To: d:oug who wrote (42430)	10/8/1999 6:19:00 AM
From: d:oug	Respond to of 116762

(GATA News) A $66,000,000,000.00 hot potato short squeeze horror show. Subj: John Hathaway - "Simple Math & Common Sense: A $66 Billion Problem" / European central banks - a strong hand Date: 10/7/99 9:01:29 PM EST From: LePatron@LeMetropoleCafe.com To: dougak Le Metropole members, John Hathaway of the Tocqueville Fund has served commentary at the Dos Passos Table, "Simple Math & Common Sense: A $66 Billion Problem." "Don't be confused by self-serving outcries from various parties trapped in the gold short squeeze. I am amazed to hear reports that so-and-so has restructured their hedge book or that this or that group has covered its short position in gold. Such statements are misleading, if not false. What is happening is that the self-made victims of the growing gold short squeeze are passing the hot potatoe back and forth among themselves in a desperate attempt to wriggle free. This activity amounts to little more than frenetic paper shuffling. The gold market is in the throes of a spreading credit crisis." This is a must read piece. John has done a marvelous job explaining what is going on right now in gold land. It is not a pretty picture for those firms that were memorized by the "Hannibal Cannibal" bullion dealers and have overly taken advantage of their "structured deals" hedging advice. For many investors of well hedged companies, it is turning into a horror show. After suffering through the market manipulations of the bullion dealers that orchestrated an unnaturally low gold price, their misery is now compounded for fear of the gold price rallying too much which affects certain firms that listened to the sweet talking concoctions of the "Hannibals." John Hathaway's astute piece will inform you how serious the situation is for the gold shorts and for certain bullion producers. What John Hathaway is telling you now, it what GATA told Congress. Our language is different, but the conclusion is the same for the same reason. John is being very conservative in his piece, which will scare gold shorts half to death! He uses a gold loan number of 6,000 tonnes. I know for a fact (sans doubt) that the number is greater than that. My guess is the gold loan number is 70% greater than the one the John conservatively uses. When you read his enthralling piece, think what is going to happen if Midas is right and the gold loan number is really 10,000 tonnes plus. On top of all this I received info today from my most reliable London sources. The European Central Bank announcement was orchestrated by the French, Germans and Italians. All were upset over the Bank of England gold sale. They were very aware of the shenanigans going on over here in the U.S. with the bullion dealers. They knew of the games being played, what was going on and why. They had enough and changed the rules of the game, catching the "Hannibal Cannibal" bullion dealers by surprise. Word is that Gordon Brown, of British Exchequer fame, had the door locked on him for the serious French, Italian, and German meetings - not surprising since he was the one partly responsible for de-valuing these country's considerable gold assets. The French, Germans and Italians were VERY upset about this. The United States was left out of this maneuver to do what ever they wanted after this was announced. They could provide gold liquidity should they choose to do so via gold loans or selling of calls, etc. More on this in the next Midas. Bottom line. The European Central Banks are sticking to their guns. Yes, if things get too crazy, they might calm things down. But, my sources are the best and their infomsut be taken seriously. This bodes poorly for the gold bears. I suggest that you keep what I have told you in mind when you read John Hathaway's riveting piece. "Vox Populi Vox Dei" --- Thumbs Down to the "Hannibal Cannibals!" One more zinger for the bullion dealers. Richard, "The General" Harmon dug this up. The bullion dealers laid this on S&P Ratings as part of their pillaging of the gold companies. Then, the bullion dealers took this sort of commentary and shoved it upon gold producers in threatening fashion. Right Newmont? Certain bullion dealers must be held accountable for what they have wrought. They have deceived many to serve their own greedy interests. Now, they must pay the "Piper." Gold Companies That Don't Hedge Could Have S&P Ratings Reduced New York, July 15 (Bloomberg) -- "Gold producers that don't take steps to lock in prices with hedging programs may have their credit ratings cut by Standard & Poor's Corp., the credit-rating company said. Gold prices have shed 12 percent this year to reach 20-year lows, after several central banks including the U.K.'s announced plans to sell reserves. Gold recently traded at US$254.40 an ounce, down from about US$310 a year ago. S&P said it will wait a 'quarter or two' to see where gold prices head and evaluate companies on a 'case-by-case basis' before cutting any ratings. It didn't say which companies it's considering downgrading. Low gold prices 'could lead to ratings downgrades for those gold producers who do not have a significant hedging program in place,' said Thomas Watters, an analyst at the credit rating agency, on a conference call. The agency said it's not considering a downgrade of Barrick Gold Corp., the world's fourth-largest gold producer and the biggest user of hedging, in which miners agreed to sell current production at a fixed price in the future." This has become the "Theature of the Absurb." Now S&P is going to be downgrading firms that have overhedged. Thebullion dealers have created a financial nightmare for many many people. "The Inmates Are Running The Asylum." The gold market is EXPOSIVE. Sly and the Family Stone are"Gonna Take You Higher!" All the best, Bill Murphy, Chairman Gold Anti Trust Action (GATA) gata.org Le Patron, Le Metropole Cafe lemetropolecafe.com

To: d:oug who wrote (42430)	10/8/1999 7:55:00 AM
From: Bill Jackson	Read Replies (1) \| Respond to of 116762

Doug, I suspect that the governmental people will be shielded and those that speculated suffers gains and losses within the purview of the market. This will possibly lead to new regulations?, but it may just set the lease rate for gold at a chilling level, near the prime, which will wear away the profits. With a 4-5% lease rate they probably would never have been able to justify this. As to the lawsuits......they are settlement hunts, there is little chance of a win. Bill