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To: Giraffe who wrote (21494)	10/12/1998 11:06:00 PM
From: waldo	Respond to of 116768

From USAGOLD Forum: <<USAGOLD (10/12/98; 19:39:53MDT - Msg ID:548) A Conversation with James Turk........... I had the opportunity to have an extensive conversation this afternoon with one of the top gold analysts in the United States -- James Turk, editor of the Freemarket Gold & Money Report and advisor to the well-known Midas Fund. I was asking his permission (which he graciously granted) to publish his interesting and timely analysis of the LTCM situation titled "The So-Called Masters of the Universe" which appeared in his latest newsletter, and now appears here at USAGOLD at The Gilded Opinion page. In the course of our conversation the subject of LTCM's gold short position came up and he said in his understated, scholarly way that if LTCM's 400 ton loan position were defaulted on that the central bank or banks which made the loan would have to consider the loan "a sale into the market" since they are unlikely to get their gold back. This raised the further question that if the bank(s) were Europeon what effect would this have on EU reserve requirements and the launch of the euro. I asked Mr. Turk the same question I asked ANOTHER a while back. "If you are a central banker lending gold, what do you take as collateral (since gold is the ultimate collateral, all other collateral is inferior.)" Turk answered."You take nothing. It is an unsecured loan." There was a report that he told me about in Financial Times which points to the possibility that eight major central banks are involved in the lending activity to the hedge funds and that it could be 1200 tons or more. Marie is tracking down a copy of Financial Times tonight for me, and I will be back to you tomorrow on the details either here or in the Daily Report. If any of you have seen anything on this, please post it. These are important developments. FOA, have you heard anything about this?>> usagold.com W