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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: SBerglowe who wrote (49290)	5/3/2000 8:19:00 PM
From: SBerglowe	Read Replies (1) \| Respond to of 99985

Controlling gold By Ed Stuart Columbus The government has determined that Microsoft is a trust. That is interesting as it seems the government of the U.S. and banking interests have colluded to control the price of gold and silver, making it unattractive as an investment vehicle. They have removed international monetary systems from the gold standard, but for 75 percent of the world, gold is still the ultimate store of wealth. Bill Murphy and Chris Powell are founders of the Gold Anti-Trust Action. They maintain a Web site named Le Metropole Caf‚. In the caf‚ are many articles written by experts in the economics and financial fields. I also must give credit to the forum at Gold Eagle for many hours of interesting reading. When I discussed gold at work, the first statement I heard was gold has been demonetized. As I have since learned gold has been demonized, not demonetized. The Russians and Chinese are buying gold for their official gold holdings. Asia and the Orient import a large quantity also, mostly for private investment, and demand is increasing. In India families will go hungry before they sell their gold. To these people gold is the ultimate storehouse of wealth. Gold mine supply in 1999 was only 2,559 tons. Frank Veneroso, an internationally recognized financial consultant has determined the supply/demand deficit is 1,500 to 2,000 tons annually. This deficit is being made up by gold leasing and gold sales from central banks. The British and Swiss gold sales are designed to be a negative reinforcement to the price of gold as well as put supply into the market. According to Ted Butler, silver is in extremely short supply and could explode upwards at any time, overwhelming those institutions that have capped the silver price. This could create a hazard to the international banking system. No one wants that as this could totally devastate the international economy. When I read in The Republic that Kuwait was loaning its gold, I knew there would be a further official announcement. Within two or three days, I read the U.S. was increasing its military presence in Kuwait. A few weeks ago in the Sunday edition of The Republic, China announced the cost of holding its silver was expensive (in China?) and was allowing its silver producers to sell their silver outside of China. Again within a few days it was announced that the U.S. supported the Chinese in its One China policy, and more recently there was no opposition to Chinas acceptance into the WTO based on human rights violations. Coincidence? I think not. GATA has found that the Exchange Stabilization Fund, a government agency headed by the secretary of the Treasury, is responsible only to the president, and has no reporting requirements to Congress, the probable agency involved. The ESF in collusion with major banks are capping the price of gold regardless of the damage done to the mining industry and the loss of jobs in Third World countries. From Greg Pickup of GATA, the top seven banks involved in this gold suppression have gold financial derivatives totaling 72.9 billion in place. I wondered why a BBC article I read recently commented about the suppression of the gold price and relating it to the mountain of derivatives, now I know. Greg Pickup states the total assets of these seven banks is $1.8 trillion, the total derivative position is 32.6 trillion. Is it any wonder Greenspan said that financial derivatives should not be regulated in a free market, as did Secretary of the Treasury Summers. It sounds to me as if the term should be manipulated market, not free. GATA has a stack of evidence it will be taking to Congress soon. This should be an interesting summer.