The hypocrisy gets Bill Murphy "doggone mad!"


Dear GATA Members,


Bill Murphy, GATA chairman, has invited GATA members to write to
Congressman Jim Saxton, the Congressional Joint Economic Committee's
Vice-Chairman to be. GATA members Steve Hickel, Sam Martirosian and Bob
Prange responded immediately (See below). When you have read their
letters, after the background information to this GATA email campaign,
you will hopefully follow suit with your own email letter to

BTW -- There have been suggestions from other GATA members that
we should also send emails to the Big Media, with
DRUDGE@DRUDGEREPORT.COM at the top of the list.(GATA member
"Draggon Tooth" tells us that the Drudge Report has over 17
million regular visitors and that it was Matt Drudge who
compelled the Clinton exposure.)


Bill Murphy says about the call he received yesterday from the Congress
Joint Economic Committee staffer: "This very articulate staffer works
very closely with Jim Saxton. At the moment, they are reviewing the
pleas to sell U.S. gold for the IMF. They do not understand why this has
to be done as it is really an accounting gimmick. All the IMF has to do
is reduce the interest rates they are charging the poor countries. This
staffer and Jim Saxton understand that selling more gold hurts the
mineral rich, but poor, African countries that the IMF 'says' it wants
to help. Jim Saxton wants to hear from you about this issue and he needs
to receive appropriate feedback about the gold sale debate."

In his Midas posting, at the Cafe's James Joyce table
(, Bill followed up with: "The idea of selling
gold from IMF reserves is set to face opposition in the U.S. Congress
and Lawmakers may call for IMF reforms as a condition for approving any
sales, a senior lawmaker said Wednesday. Jim Saxton, likely to be
confirmed as vice chairman of Congress's Joint Economic Committee in the
coming weeks, said there was no broad congressional backing for the idea
of selling gold, a proposal floated by President Bill Clinton on Tuesday
as a way to fund debt relief for poor countries.

"I suggest we let Jim Saxton know the real story of what is going on
here. The poor in south and west Africa that Clinton says he wants to
help are being hurt badly by the low gold price while the greedy rich
N.Y. financial institutions enjoy a free lunch via the gold carry trade
as a result of the wink and nod by our Treasury and politicos in

"Congressman Saxton, who has been on the Hill since 1984, has a website. His office phone is 202 225 4765; his fax
is 202 225 0778; and the email address is

"His State office is: 100 High Street, Mount Holly, NJ 08060; phone
number 609 261 5800 and his District Representative is Sandra Condit."

When Bill Murphy telephoned Jim Saxton's office, he says they could not
have been nicer. Bill told the staffer that GATA Committee members would
like to come to Washington to let Jim Saxton and the Congressional Join
Economic Committee know what was really going on in the gold market.

Congressman react to popular opinions and react to faxes and phone
calls. It would be great if you could give Jim Saxton's office a call or
send a fax asking that we be heard. This is the time to act and let him
know our objections to the gold sale proposal. Exercise your democratic
privileges. If we can give them feedback with reasons why we should be
heard and the selling of U.S. gold is not a popular idea, we might get
into those hearings so that we can tell our story about this outrageous
gold scandal in front of Congress. This is another moment to seize the
day. Spread this around to all the gold shareholders that you know via
the internet. Get them to respond to Congressman Saxton, if they feel
this is an important issue.

- - - - -


Dear Congressman Saxton,
I am a shareholder in a gold mining company and Michigan taxpayer.
Recent events give me reason to believe that the price of gold is being
manipulated to keep it under $297, which is at or below the cost of
production. It doesn't take too much to figure that out. As a technical
trader (using statistics to trade) the POG defies all attempts at
analysis.Any other commodity or stock would not show a continued and
repeated ceiling as gold does, it is statistically not possible. Upon
further review it would seem that EVERY time the price of gold attains
the price above $295, news stories are leaked to various major news
organzization that this horde or that horde of gold will be sold.

Here are but a few of those stories that only come out when gold
threatens to rise above $297:-- IMF gold sales to relieve third world
debt.-- Swiss gold sales. I am sure you are more aware than I that
Goldman Sachs is in a position of an apparent conflict of interest as
they are shareholders in the Federal Reserve, Secretary Rubin worked
there, they allegedly hold some third world debt, and they are reported
to be one of the major forces behind the gold "shorting" that recently
knocked the price of gold from $295 to $281 in two short days, when it
had taken 11 days to rise to that level.

Could it be that they are staunch supporters of IMF gold sales too?

Pundits estimate that there is a three-year gold short position on
world-wide commodity exchanges. In other words, three years of
production from all gold mines in the world are known or suspected to be
shorted on these exchanges (annual gold production is around 2 300
tons). That means that should gold rise to a price of $320 per ounce on
these exchanges, the world's largest "short squeeze" would force all of
this gold to be covered -- a physical impossibility and one that would
cause the price of gold to rise sky high (your guess is as good as mine
as to how high that would be, $1000/oz?).

It also means that should only a small fraction of these futures players
take physical delivery of their contracts, the exchanges' deposits of
gold would go to zero and again gold would be forced to rise.

I believe this is called naked shorting as the paper doesn't equal the
gold available to cover the paper should that need to occur. One has to
ask, how can this have been allowed to happen? Obviously, it explains
why the manipulators would want to keep the lid on gold. The act of
naked shorting and market manipulation is illegal; they wouldn't be in
the fix they are in if this activity had been stopped years ago.

Of late, several countries' Central Banks have been leasing gold to gold
bullion banks who in turn have been selling gold into the gold market.
This practice of "leasing" gold, although helping to defray the storage
costs of gold and earning a small rate of return, hurts the price of
gold because it represents a virtually unlimited supply of
"undeliverable gold" (because theCentral Banks aren't actually
delivering the gold) with which gold traders can short the market.

Long Term Capital (LTCM) is a recent example of where a hedge fund had
shorted an alleged 400 tons (400 TONS!) of gold. As you know, the
Federal Reserve orchestrated a bail out of this fund as they felt its
failure would have precipitated negative repricussions in US markets. I
certainly hope the US isn't leasing gold into the market to hold the
price of gold down. Are we?

Who does this activity hurt? It hurts shareholders of all gold
companies. It hurts employees of these companies as it is forcing many
gold mining companies to close their doors or lay off tens of thousands
of workers. It hurts our country because a few large players win, while
the rest of us lose. Now it has gotten out of hand.

Finally, an organization called GATA (Gold Anti Trust Action) group has
been formed by Mr. Bill Murphy ( Their
cause is to expose the manipulation, put a stop to it, return the gold
market to a free-market, and prevent it from happening again. I support
their cause and urge you to do the same. Please help put a stop to the
blatant price-fixing and attempts of capping the price of gold, it is
hurting me as a gold-stock investor and it is hurting our free-trade
commodity system.

A few benefit at the cost of many, it is wrong and you have a chance
through your office to stop this abuse and expose the manipulators and
to offer regulations that would prevent naked shorting of gold that put
us into this mess in the first place.


Steve Hickel
- - - - -


Dear Mr. Saxton,

Some three months ago I e-mailed this message to a person who called for
justice to be served. My name is Sam. I am an Army officer and a gold
investor. I hate manipulators and liars. I pledge $150 and my moral
support for this noble cause. Good Luck, Chris. Sam

Hundreds of messages similar to this resulted in the formation of GATA
(Gold Anti-Trust Action). GATA has become a powerful and honest voice of
thousands of people in the gold investing community throughout the World
who feel betrayed, cheated and manipulated by a group of powerful
financial institutions and corrupt banking officials. There is a wide
spread opinion in the Gold Community that these corrupt activities may
also have influenced many critical decisions made by the U.S.
government, Federal Reserve, and Department of Treasury.

I will speak for all GATA members by quoting our chairman Mr. Bill
Murphy: We are pleased to say that we have raised the level of
awareness about the 'Goon Squad' and their activities. Queries have come
back to us from everywhere: 'Could Goldman Sachs ( Secretary of the
Treasury, Rubin's, former firm ) really be a part of a cabal that has
been holding down the gold price?'"

Mr. Saxton, I would like to express my gratitude for your commitment to
look into this issue. After numerous messages that we have sent to
Congressmen, Senators, and the Speaker of the House only you have heard
our voice and had the courage to look into this issue. Now I believe
that our elected officials actually care when average citizens are not
happy and when the laws may be broken.

IMF gold sale is a small part of a big scam. It is not about the poor it
is about the rich. It is not about generosity it is about greed. It is a
tip of the iceberg that pushes the Gold down just to stay afloat.

Dear Mr. Mr. Saxton we praise your decision to meet Mr. Murphy. He is a
true professional and will definitely put things in perspective.


Samuel Martirosian
- - - -


Dear Congressman Saxton,

Please recall that "BUY LOW - SELL HIGH" is the investment strategy of
many people.

Gold is now selling at an all-time LOW.

If IMF Gold Sales are sanctioned, some questions arise:

----- Who are the BUYERS of gold at these LOW prices?

----- WHO is creating this opportunity for these buyers?

----- WHAT are the benefits to both of these players?

Without a satisfactory investigation of these factors it is possible
that the American people, as well as citizens of other countries, will
again be the dupes of a sophisticated class of financial elite which
cares not for the common wealth of the nation, but only for its own
selfish interests.

Thank you,
Bob Prange
Washington, DC
- - - - -

Boudewijn Wegerif -- "GO GATA"
Moderator GATA Forum