Fed, Treasury statements only evade questions about U.S. gold policy


10:46p ET Wednesday, July 31, 2002

Dear Friend of GATA and Gold:

Here is a letter adapted from one sent by
longtime GATA supporter Jim Cole of New
Canaan, Connecticut, to New York State
Attorney General Elliot Spitzer, encouraging
him to carry into the gold market his
investigation of the crooks on Wall Street.

Similar letters to Spitzer by other GATA
supporters just might make a difference.

Please help.

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

* * *

Attorney General Elliot Spitzer
State of New York
State Capitol
Albany, New York 12224-0341

(FAX: 518-402-2472)

July 30, 2002

Dear Attorney General Spitzer:

First of all, congratulations! You were out
there ahead of the feds and the news media,
as well as the Wall Street cops. I applaud
you for what you have achieved with a smaller

I am writing to suggest that you turn your
attention (if you have not already done so)
to what may prove to be the biggest financial
scandal of all: the manipulation of the gold
market." This is an integral part of the
Enron mess.

For the last seven years of so, the U.S.
Treasury Department, Federal Reserve, and
certain investment banks in New York have
colluded to fix and depress the price of
gold. This was done to support the "strong
dollar policy" of the Clinton and Bush
administrations. The participants in this
scheme have been abbetted by certain foreign
central banks that have loaned them gold that
may never be repaid.

In addition to damaging investors around the
world, this policy has wrought devastation on
Africa, whose gold mines have lost an
estimated $4 billion in revenue they would
have earned with a free-market price in gold.
With such revenue African countries would be
able to combat the scourges of AIDS and
crime, foster education, and feed the hungry.

President Bush is fully aware of this
problem, as are many members of Congress,
because of information sent to them a long
time ago. Yet they have not corrected it.

A non-profit organization, the Gold
Anti-Trust Action Committee, is leading the
campaign to end this dastardly scheme. GATA
can be found on the Internet at

Two years ago a Massachusetts lawyer,
Reginald H. Howe, filed suit in U.S. District
Court in Boston against the investment banks,
the Bank for International Settlements, and
the Federal Reserve and Treasury Department,
alleging, among other things, violation of
the Sherman Anti-Trust Act. The court
dismissed the suit on technical grounds of
legal standing to sue.

Among the investment banks accused in the
Howe lawsuit are some that are familiar to
you: J.P. Morgan/Chase, Citigroup, Goldman
Sachs, and AIG. These participants in the
suppression of the gold price have earned
billions in illicit profits. In effect they
have borrowed and sold most of the gold they
have used in their scheme. Some of this money
may have been used improperly with Enron.

GATA's chairman is William J. Murphy of
Dallas. He can provide more information on
this issue and can be reached by email at

I would be interested in hearing your views
on this subject, in due course.

Good luck in your pursuit of financial crime.

Sincerely yours,