Gold''s easy money lures Wall Street


2:27a ET Tuesday, March 26, 2002

Dear Friend of GATA and Gold:

Monday's first big news was the Financial Times story
about the latest minutes released by the Federal
Reserve's Federal Open Market Committee, in which
the Fed is seen contemplating openly buying
equities to keep the stock market bubble inflated
in case interest rate cuts fail to do so. Gold was
prominently mentioned in the story. So now
government's manipulation of supposedly free
markets is again a matter of public record in FOMC
minutes. You may remember the previous incident:
the Fed's general counsel's remark to the FOMC,
inadvertently escaping the censor's knife,
acknowledging "gold swaps" by the Exchange
Stabilization Fund, an undertaking the Treasury
Department denies.

Watch closely to see if the Financial Times'
discovery about the Fed's latest undertakings
ever makes the financial press in the United

Monday's second big news was the renewed
attempt of the president of the Bundesbank to
talk down the gold price by speculating about
selling German gold reserves and putting the
proceeds into general equities. Interestingly,
the gold price seemed to laugh him off this

Tim Wood's observations about the Bundesbank's
president at are pretty
compelling. You can find them here:

Or just go to TheMiningWeb's home page:

No doubt another official attack on gold is being
devised even now. But as it gets so much more
obvious, the gold price suppression scheme seems
to be getting more difficult to maintain. There's no
telling how this will work out, nor how long it will
take, but the gold share market, blazing its way up,
seems unconvinced by a futures price below $300.

GATA was right at the beginning three years ago
and is more right than ever now. It's coming out, and
more of it will come out. Please stick with us and help
us with the liberation we work toward.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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