(GATA News) [FED] - time the world learns of their hypocritical, fraudulent ways.
Midas du Metropole
"THE FED - THE FED - THE FED"
All week I heard just one thing - the Federal Reserve of the United
States of America is knocking the crap out of the gold market. Early in
the week those utterances came to me in whispers from A source - a
bullion dealer. By the end of the week, 4 highly credible sources told
me the same thing. This is truly unjust and an outrage and GATA is going
to do something about it. It is time to take the battle to them. Hit
them hard and where it can do some good and actually turn the tide on
this misuse of power. GATA's action plan will be laid out to you very
shortly. You will be integrated into the plan and it won't take you
more than 10 minutes of your time if you would like to help.
My head is into getting the plan going. We have to act fast, so this
Midas will be a rambling - not that many others aren't also.
From one hip LeCafe member:
"Yep, it is a mess, but we have got to remember that peoples
expectations of the auction (me included) were very high. The powers
that be do not want to see a poor stock market/bad dollar/high gold
price ahead of year end - and they have accomplished this by pouring
money into the stock market via the repo options, lent gold to
underfunded traders and basically abandoned even the poor level of
control they had over the money supply.
The majority is against the gold market at the minute, and until the
physical buyers come back that is the situation we are in. The
Washington agreement seems to have been forgotten - once the Y2K orgy is
out of the way, the market will dry up and the price move north again.
Gartman published a good chart which basically indicated the
relationship between gold futures and lease rates - with these pathetic
rates, derivative activity can build again. until the fed-sponsored
mop-up stops, the market is going nowhere. I have not given up hope, but
right now the long term is being ignored to shore up the problems of the
short term. The Ashanti crap will be covered (if it already hasn't) and
then one of the large hedged producers will cover. I am hoping that the
North American gold producers will actually lead the way this time -
they were caught way off guard last time.
I think your attack on Barrick is timely - they have sponsored three
hedging workshops in New York, London and Europe with JP Morgan to try
and make investors more comfortable. Since their call position has now
been exposed and their losses on bonds revealed, I think this will
backfire - nobody trusts gold company management!" End.
From another plugged in LeCafe member:
Yesterday, at 1:30 during the time when trading was thinnest, there were
10 lots on the bid side as gold was strengthening from its lows. At
precisely that time, Goldman Sachs bombed the market with a 1000 lot
sell order, which destroyed the market and demoralised traders. The
constant refrain from the floor is that Goldman Sachs is controlling
this market. Frank Arisman of JP Morgan continues to make bearish noises
on supply/demand. What's the common denominator here: the Fed, of
course. Reg Howe is spot on with his analysis.
From the well informed Morning Metal Monitor on Dec.3:
"...pressure would also be a word that might be used to describe the
"heat" that US investment bank Goldman Sachs is feeling, as an article
in today's Financial Times (we have not read it yet) allegedly details
the relationship between Goldman and Ashanti, the beleaguered gold
mining company, reportedly suggesting that the bank was NOT always
acting in the best interest of its client. GEE, now there's a shocking
suggestion Goldman 'gang banging' a client--- who would have ever
suspected such could occur on Wall Street? As the thought process
currently unfolding in London goes, Goldman has been a noted seller of
bullion this week, supposedly in an attempt to depress the price of gold
so that Ashanti and can squirm out of positions previously recommended
by Goldman, without incurring a heavier loss than is already on the books."
Cafe members: what metaphor do you think Goldman Sachs would least
prefer to let their shareholders know how they are thought of in our
world? - Goldman Sachs maneuvers like a "gangbanger" or, Goldman Sachs
acts as if they wish to pay homage to "Hanibal Lecter" of Silence of the
Lambs fame?
An internet post by: Captainfreddy - 12/3
"Remember that for every l0.00 that the gold price declines, Ashanti
gains 100 million dollars on their hedge book. From 330.00 to 280.00
represents 500 million dollars, and that should put them about even. So
what we have here is a massive manipulation by the Federal Reserve and
The Bank Of England under orders from the private bankers to bail out
Ghana and lower the price of gold to bail out Ghana's prize Ashanti.
This, then, has to represent the most brilliant turnaround in gold
history while they save Ashanti and sent gold up next week after they
conclude bailing out Ashanti this weekend. Just guessing, mind you, but
it adds up. "
One more:
"I am hearing from my commodities broker that the big sellers on the
market in NY last night were a couple of the largest bullion banks - the
same ones who act for the FED in market operations?. In tandem to this
we see plenty of gold hitting the loan market - a coincidence?"
Even Bill Fleckinstein is in the act now:
By Bill Flickenstein, 02Dec99
"The truth comes out... For those who have access, there was a very good
article in the Financial Times this morning (12/2/99) about Ashanti Gold
(ASL) and Goldman Sachs (GS). The story goes behind the scenes,
illuminating how Goldman Sachs and the Bank of England helped resolve
the problem at Ashanti Gold and parenthetically bailed out all the folks
were upside-down in their (loosely defined) gold "hedges".
The moral of the story is that many people were in trouble by behaving
in a irresponsible or risky fashion, so the bank decided to get everyone
together to resolve the problem. Some of you may recall that directly
after this occurred, the Kuwaitis mysteriously moved a whole bunch of
gold to London in what was obviously part of the effort to save the gold
market from a melt up. In essence, they were saving the parties involved
that had gotten carried away with their hedging from getting burned.
This is yet another example of the central banks bailing out people that
have pursued reckless policies. Unfortunately, these reckless policies
are not abandoned, but rather they are just perpetuated. We saw the same
thing with the Fed and their bail out of Mexico and with the Long Term
Capital Management. All they are doing is making the problem bigger and
more out of control. They think they are alleviating the problem, when
all they are doing is pushing off the day of reckoning. I hope you get a
chance to read it." End
The Fed wants to discourage anyone thinking of investing in gold. From a
"down under" LeCafe member:
"see the gold go down .. boy has that made plenty of people jump off the
gold train .. most of my mates are now running towards technology forget
gold go for techs."
Could this have anything to do with it:
THE FED IS PARANOID ABOUT Y2K
By JOHN CRUDELE
New York Post - December 3
"THE Federal Reserve is being driven to distraction by Y2K. Even as the
Central Bank has been publicly tightening monetary conditions through
three interest rate hikes this year, it has been quietly pumping money
galore just in case the Millennium madness being predicted actually does
happen.
Michael Belkin, a Fed expert who writes the Belkin Report, says Alan
Greenspan has allowed $70 billion in cash to flood the U.S. monetary
system in recent weeks and has created something called a "repo option."
These options could leave the monetary system awash in another $426
billion in additional emergency cash in the next few weeks.
"This all adds up to the biggest Fed credit expansion ever. This
monetary boost is wildly stimulative for the U.S. equity market in the
short term," Belkin says, "but will leave equities painfully vulnerable
to a crash once the Y2K-related credit expansion is withdrawn in the new
year."
In recent weeks the Fed has allowed the nation's money supply to soar
and has liberalized collateral requirements for government securities
dealers doing business with the Fed.
Last week alone, the government's M-3 money supply figure rose at an
annual growth rate of 12 percent. That's more than double the normal
growth and far above what the Fed would generally allow.
But the repo options, which were first sold on Oct. 20, are the thing
that could pump more money into the nation's monetary system the
quickest.
Financial insitutions that buy these options can convert them quickly to
cash in a pinch.
Ironically, this liquidity burst comes at a time when the Fed is
pretending to be very stingy. The third rate hike of the year that came
a couple of weeks ago was billed as the Central Bank's "get-tough policy."
By the Y2K actions really means that the Fed isn't the Scrooge Wall
Street fears but really a very generous Santa. And a Santa who's
petrified about the New Year consequences.
What the Fed has been doing could help stocks rise nicely over the short
term. As I've already said, there are only a few hurdles that could get
in the way of bigger bubbles by year end.
But the Fed's generosity in itself could be a big long-term problem for
the financial markets.
The bond market would normally rally if it thought the Fed was being
diligent in fighting inflation. And that's precisely the message that
the three rate hikes should have conveyed.
But bonds have, instead, been very weak despite the Fed's supposed
nastiness and rates have risen beyond where the Fed intended.
And that is leading many to believe that investors worldwide are wise to
the Fed's Santa Claus ruse.
That's also why the U.S. dollar has been so weak. And why, traders say,
the Fed was forced to rig the bond market last week with massive
purchases of all maturities of government securities.
The prognosis? The stock market should have a very easy time between now
and year's end -- even easier than I first thought.
But there could be trouble later when word gets around about the Fed's
dirty little secret -- so don't go spreading this around." END.
For those of you who did not get the news about a prominent leader of
the bullion banking world.:
Dec 3 - MONTE CARLO, Monaco (AP) -- Billionaire Edmond Safra...
Safra, a 67-year-old Lebanese businessman and founder of the Republic
National Bank of New York....
... his bank had fallen on hard times in recent years, suffering
heavy losses during the Latin American banking crisis in the 1980s and
during the Russian economic meltdown that began in 1998.
The motive for the attack on Safra, who led a discreet but opulent
lifestyle, was not immediately known...
Safra was a major shareholder in the Republic Bank. The attack came
during the final stages of the purchase of Republic Bank by London-based
HSBC Bank....
Safra had been building a worldwide financial empire for more than 30
years. He founded Republic in 1966.
... Republic bank has some 80 branches in the New York metropolitan
area, making it the No. 3 branch network in the metro region behind
Citigroup and Chase Manhattan." END
Why do I slip this one in here? I am sure it is just coincidence, but we
have the following sequence of events:
On Monday, November 29, 1999 two Japanese executives of Crestvale
International Limited were arrested in Tokyo. That company was the
securities unit of Martin Armstrong's Princeton Economics International.
On December 1, 1999 we have the following from Bridge News:
" Weil, Gotshal & Manges, an international law firm specializing in
securities litigation, says it was retained by "a number" of Japanese
companies for issues related to a suit filed Tuesday by Japanese tool
maker Amada Co. against Republic New York Corp's securities unit.
In hiring the firm, Japanese companies facing huge securities losses
indicated the U.S. commercial bank may have seen only the first of many
lawsuits."
On Thursday, it was all over the press that Edmond Safra agreed to
receive $480 million less than what was due to him on the Republic
buyout by HSBC as a result of the Armstrong/Crestvale fiaso.
On Friday, he is murdered. Good grief. This must be a REALLY BIG ONE
behind the scenes. How high up does it go?
A comment from a LeCafe member:
"I would hate to think that anyone might murder Safra over Princeton and
Martin Armstrong, but why do I feel so suspicious? It sounds like the
work of professionals. The Hong Kong and Shanghai merger wasn't done.
Was it something Safra knew, or the fear of what HSBC might do once they
got an inside look at Republic's books?"
From another LeCafe member - about the BOE auction:
"In a superb example of how perception is much more important than
reality, the Bank of England gold auction, which is being blamed for the
sudden negative sentiment in the marketplace, is not all that it seems.
The market took the cover ( ratio of bids vs. the amount offered ) of
2.1 to 1 as very negative but the truth is much different. In Monday?s
auction, no bids were made below the allotment price, compared with 3.3
million ounces in the first and 5.0 million ounces in the second
auction. Based solely on the number of bids by participants willing to
pay more than the allotment price, the latest auction showed demand at
it?s highest, not it?s lowest. Please remember that the Bank of England
accepts any offer at any price, even totally ridiculous bids away from
the market. But, again, facts are not important."
Just one more example of what we are up against. We have to fight back.
The gold market is a fraudulent scam at the moment. Gold is about to
break $300. The Fed says uh oh. Goldman Sachs, a Fed selling agent,
bombed the market after the Bank of England announcement and used that
announcement as cover to sell. Now they do it AGAIN, using a poor demand
BOE auction announcement as cover and gold drops $20 in 5 days AND THE
OPEN INTEREST SHRINKS to less than 160,000 contracts. Don't tell me the
specs are going mega short. Bull Crap. Not $20 worth in one week. In
addition, many gold departments in the bullion banks are being
dismantled. Just this week the number one gold spread trader for UBS was
let go as were 8 senior executives in their gold and foreign exchange
departments. Bullion banks can't be gung ho sellers as a group here The
game has changed.
We are probably only dealing with a very few of Uncle Sam's crowd. It is
time the world learns of their hypocritical, fraudulent ways. They have
had us on the run for far too long. Let us turn up the HEAT on them.
Stay tuned.
Midas
GATA would like your moral support
and the moral support of all the gold companies.
Thanks for your consideration.
Best regards,
Bill Murphy ( Midas )
Bill Murphy,
Chairman, Gold Anti Trust Action (GATA) gata.org
Le Patron, Le Metropole Cafe lemetropolecafe.com |
