Goldcorp CEO McEwen teaches a course in mining and money


11:20p ET Monday, November 11, 2002

Dear Friend of GATA and Gold:

GATA's delegation at the New Orleans
Investment Conference last week -- GATA
Chairman Bill Murphy, our consultants Reg
Howe, James Turk, Mike Bolser, and Bob
Landis, and me -- had a great time, and, as
things turned out, it had nothing to do with
the usual gluttony, drinking, lechery, and
singing those filthy mining-camp songs Murphy
picked up in Vancouver.

Indeed, Bolser, our statistical genius, was
so absorbed in his numbers that he forgot to
eat or drink at all. Turk was thrown out of
Harrah's when he tried to use his Internet
gold money at the craps table. (The croupier
insisted on plastic chips. Talk about "fiat"!)
Howe left in the middle of the night to drive
back to Massachusetts by way of Oregon to save
money on tolls. It was all Landis could do to
pick up after me. It was all I could do to
drop everything. And Murphy hardly ever got
down off the stage, speaking Wednesday, twice
Friday, and again Saturday, most of it during
prime conference time.

At least that last part is mostly true, and
it signaled the remarkable thing about the
conference: GATA was taken more than
seriously, and, as you may have seen from our
dispatches of last week, world financial news
broke our way every day of the conference,
being filled with stories about J.P. Morgan
Chase's short position in gold, which is the
center of the scheme to suppress the gold price
and has been the focus of GATA's efforts since
Howe filed his federal lawsuit against the
bad guys.

We met new and old friends, including some
from as far away as Australia, South Africa,
and Germany, and enjoyed the hospitality of
mining and financial industry people who
think we've done a good job for the cause.
Thanks to all of them and to the New Orleans
Investment Conference's wonderful organizers
for reminding us that, gold nuts though we
may be, we're not alone -- and that the rest
of the financial world, what with its massive
deceptions and effectively negative interest
rates, may be nuttier still.

* * *

GATA is also deeply grateful to, whose reporting about
gold and skepticism about financial market
hype never fails.'s
editor, Thom Calandra, was a star of the New
Orleans Investment Conference, and the GATA
delegation was fortunate to spend some time
with him.

We have alerted you to many dispatches, and long ago
should have made a plug for the operation.
The site is probably the
fastest and most comprehensive one on the
Internet for financial news and data, and it
allows you to monitor customized portfolios
and receive email alerts about companies of
your choosing. Plus you get commentary by
Calandra, Peter Brimelow, and other first-
rate analysts. It's all free, so check it


Here's some email correspondence tonight that
may interest you:

* * *

Dear GATA:

The thing no one seems to be talking about is
that ultra-low interest rates, such as those
now prevailing, eliminate any incentive to
keep money on deposit in a bank (except for
small balances to use in connection with
checks). After taxes, we'll all be earning
around two-thirds of 1 percent or less. By
moving to cash -- we're talking Franklins and
Grants -- you gain a lot of financial privacy
and insulate yourself from the risks of the
banking system.

This is a tactic I'll bet a lot of Argentines
wish they had adopted before the roof fell

Of course a healthy investment in gold
wouldn't hurt either, but even people who
don't believe in gold can benefit by getting
their money out of the banks.

The risks inherent in the banking sector are
enormous and cannot be overestimated.
Following Robert Prechter's advice, I put
some money in Farmers and Merchants Bank of
Long Beach, rated A-plus by Weiss and cited
by Prechter on his list of safe banks.

"Safer" banks is a better description. FMB's
financial statement shows that it has "total
cash and securities" (a category that does
not include loans to customers) exceeding the
total amount of deposits. On the surface this
sounds like the epitome of safety, but then
you read further and find out that $930
million of the $1.6 billion of "total cash
and securities" consists of "mortgage-backed
securities" -- a dubious haven. And this is
the one of the "safest" banks!

My great fear is that one day there will be a
massive financial crisis and the next morning
we will wake up and find that the banks have
been closed by presidential decree, with the
explanation: "Your money is safe; it will
just be tied up and out of reach for a
while." Then, as in Argentina, we'll be
allowed to withdraw small balances each
month, with the remainder being converted
into "Reconstruction Finance Special Safety
Bonds," due 15 years hence.

-- Mark W.

Dear GATA:

The headline on your dispatch tonight about
Richard Russell's statement that the gold
market is manipulated brought much hilarity.
Yes, GATA used to be considered nuts but now
is almost conventional wisdom. Funny or

Your understating this gave it a rib-tickling
boost. It's great to find something funny to
laugh about through the morbid mess of our
economy. I'm looking forward to having more
things to smile about in the years to come.

There is only one thing more satisfying than
a good laugh like this, and that is GATA's
pit-bull, relentless determination to grab
hold and not let go.

-- Gary M.

Dear Gary:

Thanks for your note. But the credit really
is GATA Chairman Bill Murphy's. HE was the
one who sensed that the gold market was
manipulated four years ago, and HE is the one
who took all the abuse for squawking
constantly about it. I'm grateful for
Russell's conversion but I doubt that he'll
suffer any abuse for it now that Murphy has
blazed the trail for him.

-- cp

* * *

One last bit of news....

In Britain The Guardian reports that the
Earth's magnetic field is weakening
dramatically and soon may lapse entirely
pending a reversal of the magnetic poles
-- a phenomenon that has occurred many
times through the eons -- thereby exposing
the planet to deadly cosmic radiation that
will wipe out all life.

To which we at GATA can reply only, of
course: Got gold?

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



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Dr. Fred I. Goldstein, Senior Broker



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