Barrick confesses: We and Morgan Chase are agents of the central banks


12:40a ET Tuesday, June 10, 2003

Dear Friend of GATA and Gold:

The mechanism by which the U.S. government manipulates
the various markets was brilliantly and succinctly
explained by today's editions of The King Report, a
daily publication of M. Ramsey King Securities of
Burr Ridge, Ill. (telephone 630-789-0607). An excerpt
is appended.

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

* * *

From The King Report
for Tuesday, June 10, 2003
Published by M. Ramsey King Securities

Monday's decline was the continuation of Friday's action,
which was at least one large hedgie trying to get out of a
massive long SPM position. In a vein similar to Friday's
session, someone marked up SPMs overnight on Sunday
and the wee hours of Monday to the tune of almost 10.00
points -- the same amount that occurred prior to Friday's
session. The tactic of pump and dump is alive and well.
Freddie Mac's possible accounting problems weighed on
other financials that employ similar strategies.

Today's operators use the same techniques of marking up
and cornering markets that Jesse Livermore did in the
early 1900s and Jay Gould and Jim Fisk exploited after
the Civil War. The only difference is there are a multiple
more operators now and they exercise leverage that old
operators could only dream about.

After the 1929 crash, legislation prevented speculators
from cornering markets and pumping up stocks to unload
on the gullible. The principal measures were position
limits on futures/options and margin regulation. But after
the 1987 crash, Easy Al and his ilk learned that futures
could be used to manipulate markets. And as we have
recounted many times, Fed Governor Robert Heller in
1989 stated that instead of "saving" the stock market
by pumping humongous amounts of credit and then
having to deal with the consequences of that excess
credit later, the Fed should just buy futures contracts
and prop up the market if that was their goal.

The many people who hope to find a paper trail of Fed
or Treasury intervention don't understand how the Fed
and Treasury effect market manipulation. There will
never be a paper trail -- not in the Exchange Stabilization
Fund or on any ledger.No, a New York Fed official will ask
some Wall Street confederates to do the desired task.The
quid pro quo is the most precious currency on The Street
- INFORMATION.It can be imprecise: "You know, I wouldn't
be short the Canadian dollar." But it is more likely to be
direct. That's why the market moves ahead of economic

And that's why Easy Al arduously dissuades Congress
from regulating the financial weapons of mass destruction,
also known as OTC derivatives.First of all he doesn't want
anyone trying to price JP Morgan or some other big bank's
derivative book. Secondly, he doesn't want position limits
on the big players he needs to do his bidding.

How much of the derivative market's estimated +$100 trillion
of notional value is the generation of false earnings via
early recognition of asset sales or revenue and the
indefinite deferral of expenses or losses including losses
on investments and other assets? And we mean industrial as
well as financial companies.