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Section: Daily Dispatches

Dear friends of GATA and Gold,

I am very pleased to bring you the following letter and information from
GATA member Richard Harmon about Congressman Ron Paul, the 14th District
in Texas that Ron Paul represents, and his statement of support for
Congressman Saxton on the I.M.F. gold sales issue. The whole deserves
careful reading.


We must each write our representatives in Washington expressing our
support for Congressman Ron Paul's HR-1147 to withdraw the US from the
IMF & HR1148 to abolish the Federal Reserve.

The economic situation in our land is out of control and the Federal
Reserve system is out of touch with everything held dear to our way of
life! This organization exists not to assure a strong economy and
currency, rather only to perpetuate the banking and finance industries.
Currently around 90 percent of the natural resource recovery industry in
our nation is unprofitable! Our farmers must exist in a state of welfare
support, abject poverty or both! Our steel industry is near dead. Near
every manufacturing and production job in our country has been
subcontracted from a larger company to a smaller one(with lesser
employee benefits) or exported to another country. The only sectors of
this "best economy of history" which are really doing well are the
service and finance / banking.

Dr. Greenspan dearly loves to use the quote "Creative Destruction" when
we (who write his paycheck) "hit a bump in the road" and lose our
careers, homes, farms, and family businesses. It matters not to him when
a well paid mining, production, or manufacturing worker must go to work
in a 7-11 or delivering pizza - from his way of thinking - these are
good things. When we then have our homes repossessed; as long as the
bank can again sell that home at a profit these are great happenings, as
the debt cycle is perpetuated and their cronies in banks continue to get
their paychecks.

When, though, a major bank, brokerage, or large hedge fund speculator
makes a bad bet or can no longer manipulate the markets so as to
maintain their parasitic existence and extortionate compensation, are
these market occurrences as equally constructive? No. Our Federal
Reserve, and our leaders in the White House have determined, in their
greater wisdom, the livelihood of a middle class miner, manufacturing
worker, or oil field worker is lesser value to our society than that of
the bloodsucking banker! The Federal Reserve rushes to their aid citing
"systemic risk".

When one invested in this protected banking industry is about to lose
money, this presents a "systemic risk" and "moral hazzard" can be
overlooked and a bail-out is brokered. When a foreign land imports
steel, cars, or electronics below raw material costs our Congress is
cautioned by these "Masters of the Universe" against "protectionist
policies". When a precious metals mine goes bankrupt these (self
professed) Gods see this as "creative destruction" and the market
manipulations which brought about this "moral hazard" are not only
ignored, but rewarded!

When the Federal Reserve no longer remembers for whom they and the
bankers work it is time we as a people practice their use of words. We
must overlook any "systemic risk". We must rid ourselves of the Federal
Reserve and the IMF, only then will we learn the true worth of the
concept of "creative destruction"! I wonder how Dr. Greenspan will like
the unemployment line?


This is not a gold mining area, so Ron Paul's views and actions are
based only on truth and not in the "pork barrell" for jobs & money for
his home area. Texas mines nearly no precious metals.

More about the district:
The 14th Congressional District of Texas stretches from the Gulf Coast
outside Houston almost to Corpus Christi, through Victoria and past
Austin, into Blanco County. The District loops around Austin, to
Williamson County, through Snook, down to Katy, then to Surfside in
Brazoria County. In all, the district encompasses more than 22,000
square miles.

The 14th District has the distinction of being, literally, where Texas
began. The first capital of the Republic of Texas was located in
Brazoria County, Texas. And Texas' founding father, Stephen F. Austin,
was from the small town of Jones Creek, located outside of Freeport.

In addition, one of the great battles for Texas Independence took place
in Gonzales County. Further, before being overpowered at Goliad, Colonel
Fannin had been at the Refugio Mission, which was located in what is now
Refugio County. More than 40 Texans died there because he was unable to
send them reenforcements.

Besides the 14th District's rich history, it is also home to a rich
diversity of economic interests. From the petrochemical companies and
rice farmers along the coast, to ranchers and cotton growers inland,
from small businesses to oil producers, the district represents not only
a cross-section of Texas' economy, but is vital to the nation.


Property should be owned by people, not government.

All voluntary associations should be permissionable -- economic and

The government's monetary role is to maintain the integrity of the
monetary unit, not participate in fraud.

Government exists to protect liberty, not to redistribute wealth or to
grant special privileges.

The lives and actions of people are their own responsibility, not the


"The Clinton Administration's proposal for the International Monetary
Fund to sell some of their gold holdings should be rejected outright as
misguided and historically offensive.

"I am pleased Rep. Jim Saxton's Joint Economic Committee has today
criticized the proposed gold sales, stating in a press release that it
accommodate more IMF loans, subsidies, and moral hazard problems.'
A renewed IMF would further distort the market pricing of credit and aid
the transfer of wealth from taxpayers to a few select groups: officials
of inept, and often corrupt and brutal, governments; already over-paid
international bureaucrats who don't pay taxes themselves; and Wall
Street fat cats.

"In short, the debt relief proposal is an admission of failure of the
IMF's 'paper gold' policies. The IMF pushes irresponsible monetary
policies with ever-larger debt burdens on client countries. These
policies only exacerbate human suffering around the world as citizens of
poor countries suffer the burden of a higher cost of government, higher
cost of capital and reduced economic growth.

"This is a prime example of harming nations with the very mechanism
which purports to be helping them. For example, Ghana is one of the
Heavily Indebted Poor Countries (HIPC) the debt relief proposal is meant
to help. However, 40% of Ghana's total exports come from gold whose
price would fall. Such a move will also destabilize Nelson Mandela's
South Africa, which is the largest producer of gold in the world.
Needless to say, producers of gold in the United States will be
similarly hard hit.

"It is ironic that proponents of U.S. membership in the IMF argue we
have a claim to an asset. However, by selling off the IMF's only real
'assets,' any possible value to the US evaporates.

"It should not be forgotten that the money the U.S. used to pay our
initial contribution to the IMF came from the 'paper profit' of
President Franklin Roosevelt's forced confiscation of gold from the
American people. The gold that the U.S. government transferred to the
IMF should be returned to the American people, from whom it was forcibly

"I am so amazed by the cavalier attitude toward the American people and
the citizens of countries around the world, that I today introduced
HR1147 to withdraw the US from the IMF and HR1148 to abolish the Federal

Also, to see this and Ron Paul's other great proposed
legislative actions go to:

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Posted by
Boudewijn Wegerif (Bodwin)
Moderator GATA E-mail Group