Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (32767)	4/29/1999 6:20:00 AM
From: Bill Murphy	Read Replies (1) \| Respond to of 116756

Darleen, Yes it does feel good. But only a start. To make things happen it will take follow through and help. Only so much time in a day. Bill

To: Ahda who wrote (32767)	4/29/1999 9:33:00 PM
From: Bill Murphy	Read Replies (2) \| Respond to of 116756

Le Metropole members, I am beginning to become indignant with the press. They are either a bunch of mushballs or something is very, very wrong. I was just advised of the complete Jim Saxton press release, which NOT ONE wire service carried in its entirety. NOT ONE. Platts, thank goodness, gave us a partial. But, compare what Chairman Saxton said to what even Platts put out. Like weeds compared to roses. ( see below ) The pro IMF gold sale proposal coverage by the press is unrelenting. It goes on and on and on. A major player like Saxton, who is a heavy hitter in Congress, comes out with a statement that does not fit into "pablemville" and none of the wire services will even carry it. What is going on here? Something is rotten in the State of Denmark. GATA will not let this go on without a fight. This is an outrage! I have to think about the best way to handle this, so perhaps I should not say too much more at this point, but I can say this. The Congressional Committee members that I met in Washington want to really know all the information we can give them about the gold loan situation, etc. Our team is stepping up the plate. Jim Blanchard's, Jefferson Financial Inc., has just fed exed Frank Veneroso's 1998 Gold Book to to key committe members. Frank Veneroso is the foremost authority on the gold loan situation in the world. Congress has asked me to try and help them get up to speed on this issue, ASAP. We have responded with swift action. We thank Brien Lundin of Jefferson Financial and Frank Veneroso for reacting to our call so promptly. The senior macro economist of the Joint Economic Committee wants to understand what we have to say about the danger to the banking system so that he can report to the Banking Committee. Once they have read Frank's 1998 Gold Book, they intend to query Frank further and I am sure they will want to meet with him. Today, Jim Leech, Chairman of the Banking Committee was on TV talking about Long Term Capital Management. GATA may have stepped into a hornet's nest as we were down there giving them our take on what should be looked into. They were all ears. We have suggested that they investigate the bullion dealers that were part of the LTCM bailout. You will be surely hearing about what Leech has to say in tomorrow's papers. By the way, the Senior Counsel of Long Term Capital Management said that he was sending GATA's counsel a letter that they had no involvement in the gold market. That was one week ago. NO LETTER HAS SHOWN UP AT BERGER & MONTAGUE TODATE. We welcomed their letter. The fact that it has not come has us on the warpath again. As cafe members, you know that GATA is no "mellow yellow" outfit. Congress is listening to us and the committee members that we met with want to know what we can tell them about the gold loan situation ASAP. That is because we have told them that this is a potential Savings and Loan crisis. For a crisis to be averted, something has to be done now. These loans must be curtailed. The greedy Wall Street institutions that are creating this potential financial nightmare ( like they did with Long Term Capital Management ) must be put in their place. Thus, our new mission is to find someone in the press who is not a wimp. Someone who can say, this story needs coverage. "Press 54, where are you?" Enough for tonite. The following is the actual Chairman Saxton press release: PROPOSED IMF GOLD SALES UNDERMINE IMF REFORM AND STIR GROWING BIPARTISAN CONGRESSIONAL OPPOSITION -- Subsidized IMF Loan Interest Rate Stands at 3.5 Percent-- WASHINGTON, D.C. – The sizable expansion of proposed gold sales by the International Monetary Fund (IMF) will intensify congressional opposition to the idea, Vice Chairman Jim Saxton of the Joint Economic Committee (JEC) said today. Over several months, advocates of gold sales have increased the proposed level of such sales from 3.5 million and 5 million ounces to 10 million ounces. According to the latest news reports, there is now a new proposal to sell over 10 million ounces of IMF gold. The gold sales would purportedly be used for debt relief, but the lack of details and transparency typical of IMF policy initiatives makes it unclear exactly what is being proposed to Congress. "The recent statements presuming that gold sales will definitely take place ignores the fact that the U.S. government has made no commitment and can do so only with congressional approval," Saxton said. "The Administration is supporting this proposal, but there are serious bipartisan reservations in both the House and the Senate. This bipartisan concern guarantees that this proposal will face tough congressional scrutiny. Majority Leader Dick Armey has asked me and my staff at the JEC 'to carefully examine the economic and financial issues involved,' and our review is already well underway. "IMF gold sales are not the proverbial free lunch that some may think. The gold held by the IMF must be reviewed in the context of IMF finances and loan policies. The IMF itself has acknowledged that its gold holdings add strength to its balance sheet. With about 25 percent of its outstanding credits owed by Russia, it is reasonable to ask whether further erosion of the IMF's balance sheet now is desirable. Furthermore, other borrowers, apart from HIPC, may seek debt relief through expanded gold sales in the future. "There are a number of available alternatives to gold sales. An end to the IMF's policy of deeply subsidized interest rates is one alternative that should be given a high priority. The IMF's current standard loan interest rate of 3.5 percent is indefensible on economic grounds. This rate is far below the interest rates available in international financial markets to creditworthy borrowers. It is also far below the interest paid by U.S. taxpayers on their mortgages, car loans, and credit cards. "An end to IMF interest rate subsidies would provide much more resources for debt relief than would the proposed gold sales. Furthermore, if Congress were to approve the gold sales, this could be viewed as sanctioning the current IMF policy of interest rate subsidies. Instead, the IMF should be forced to explain why it insists on using inefficient, costly, and counterproductive interest rate subsidies. "In conclusion, the congressional reforms passed last year mandated increased IMF transparency and use of market interest rates in IMF bailouts. It is not yet clear whether the IMF intends to fully comply with these reforms, and Congress must ensure that its actions facilitate IMF compliance with U.S. law, " Saxton said. For more information on the IMF, please visit the JEC website at www.house/gov/jec/. All the best, Bill Murphy Le Patron of this noisy Cafe