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To: TD who wrote (43397)	10/19/1999 10:07:00 PM
From: TD	Respond to of 116954

When are free markets free? gold-eagle.com

To: TD who wrote (43397)	10/20/1999 6:55:00 AM
From: Alex	Respond to of 116954

The following letter was sent to U.S. REP. HENRY WAXMAN (Dem) in protest to the apparent impunity enjoyed by some financial institutions, which is decidedly not in the best interest of the investing public. The poignant letter leads by admirable example of what we all should do. U.S. REP. HENRY WAXMAN (Dem) Re: Amnesty for Gold Loans As a follow-up to my letter dated October 14, 1999, I would like to express further frustration and anger with respect to alleged rigging activities taking place in the gold market designed to "control and fix" the price of gold, thereby preventing the gold price from reaching its natural, higher equilibrium value. It is my understanding that certain bullion banks are providing amnesty for gold loans owed to them by their various clients. Supposedly, they are doing this via agreements to accept repayments of gold loans in CASH instead of real physical gold, as legally required under ALL gold loan agreements. Moreover, they are providing grace periods for gold loan repayment so as to prevent their debtors from entering the gold market to BUY gold, thereby sending the gold price higher. Of course, a higher gold price is anathema to bullion banks since they are alleged to hold enormous short positions in the gold market. In Goldman Sach's case, one of their major debtor clients happens to be Ashanti Gold. Via excessive hedging activity in the gold market, Ashanti apparently owes Goldman Sachs a hefty amount of physical gold (since ALL gold loans are only repayable in gold, NOT currency!). Apparently, with the spot price of gold now higher than Ashanti's hedge price, Ashanti has received a margin call from its bullion bank, Goldman Sachs. Once again, I must state unequivocally that, if these allegations are true, then Goldman's actions are violations of antitrust, anti-collusion, and anti-price fixing statutes designed to preserve and maintain free American financial markets. It is particularly infuriating insofar as such actions subvert the alleged LEVEL PLAYING FIELD in the gold market. In other words, why were certain gold companies allowed to go bankrupt and die these past few years, owing to a collapsing gold price, while today, other gold producers who "have been in bed" with Wall Street's bullion banks to suppress the price of gold are now being afforded amnesty for their gold loans IN ORDER TO PREVENT THE GOLD PRICE FROM MOVING HIGHER???? This is yet another classic case of MORAL HAZARD that has been corrupting the financial markets particularly during the current Clinton administration. Such MORAL HAZARD raises a number of disturbing questions: WHAT ABOUT ALL THE HUGE FINANCIAL LOSSES THAT UNFORTUNATE GOLD INVESTORS SUFFERED THESE PAST FEW YEARS AS A RESULT OF WALL STREET BULLION BANK ACTIVITIES TO SUBVERT THE PRICE OF GOLD AND BANKRUPT UNHEDGED (OR INSUFFICIENTLY HEDGED) GOLD PRODUCERS??? WHY WERE THOSE VARIOUS HARMED GOLD COMPANIES NOT AFFORDED SPECIAL SWEETHEART DEALS BY THEIR BULLION BANK CREDITORS TOO??? WHERE HAVE THE CFTC REGULATORY AUTHORITIES BEEN DURING THIS ENTIRE GOLD MARKET MANIPULATON??? WHY IS THE CFTC ASLEEP AT THE WHEEL??? WHY IS THE CFTC NOT LOOKING INTO THESE AMNESTY AGREEMENTS BETWEEN WALL STREET BULLION BANKS AND THEIR GOLD PRODUCER CLIENTS WHICH SO OBVIOUSLY CORRUPT THE GOLD MARKET AND POLLUTE IT WITH MORAL HAZARD?? WHY HAS THE CFTC FAILED TO LOOK INTO THE EXCESSIVE HEDGING PRACTICES OF BULLION BANK PREFERRED CLIENTS SUCH AS ASHANTI GOLD, BARRICK GOLD, ETC....SUCH CLIENTS HAVING SO SEVERELY UNDERMINED THE PRICE OF GOLD THESE PAST FEW YEARS? AS PER REPORTS IN VARIOUS FINANCIAL MEDIA, WHY IS THE FEDERAL RESERVE ALLOWED TO BAIL OUT WALL STREET BULLION BANKS THAT ARE UNABLE TO REPAY THEIR GOLD LOANS TO CENTRAL BANKS? WHY DOES SUCH FEDERAL RESERVE INTERFERENCE IN THE GOLD MARKET CONTRADICT THE INFORMATION PROVIDED TO BOTH YOU AND ME BY THE FEDERAL RESERVE CONGRESSIONAL LIASON, MR. HAMBLEY? WHY ARE THESE BULLION BANKS NOT HELD TO THE SAME STRICT ACCOUNTABILITY AND STANDARDS THAT INVESTORS LIKE MYSELF MUST FOLLOW IN THE GOLD MARKET??? WHY ARE WALL STREET'S BULLION BANKS PROHIBITED FROM SUFFERING LOSSES DURING THIS CLINTON ADMINISTRATON... WHILE ALL OTHER GOLD INVESTORS ARE LEFT TO BITE THE DUST??? Rep. Waxman, I cannot begin to express my anger and frustration over these matters. If the gold market is as rigged as it appears, then I believe the Clinton Administration should afford immediate compensatory, exemplary, and punitive compensation for all losses suffered by gold investors like myself who were naive (or stupid) enough to believe in the existence of a supposed free gold market here in America. Please note that I am forwarding this letter to various Republican representatives PLUS several Reform Party candidates for them to look into this entire matter. Furthermore, I will provide copies to relevant business media. Enough is enough. If the Democrat administration is willing to sanction this kind of inveterate malfeasance, then it is time to look to other political parties to redress the crimes. Once again, I will restate that I truly regret the hefty political donations I have made to the Democrat party in the past given their apparent facilitation of the destruction of my gold investments, not to mention the gold industry itself (excepting those FAVORED gold producers who have aided and abetted the decimation of the gold price these past few years). Very Truly DAVID COHEN Mr. Cohen recommends that ALL gold investors use the above as a FORM LETTER for exercising the right to express their opinion by writing to their various representatives and media interests. GOLD-EAGLE seconds this suggestion. To this end we supply below the following web URLs to help locate your Congressional Representative's address. visi.com congress.org webslingerz.com gold-eagle.com