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Published on Gold Anti-Trust Action Committee (http://www.gata.org)

Reading "Midas" without downloading attached file

By cpowell
Created 1999-07-08 07:00

12:45a EDT Friday, July 9, 1999

Dear Friend of GATA and Gold:

You may enjoy these brief comments from GATA egroup
member Perry Taka as much as I did.

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

* * *

July 8, 1999

By Perry Taka

I think the recent analogy in a GATA post that mentions
Murphy and Powell as the Woodward and Bernstein of the
gold scandal is appropriate. I believe it was in a
reply by Professor Von Braun to Martin Armstrong.

But GATA also constitutes the start of a political
movement for sound money. This is where it will have
its most lasting influence, since the leasing of gold
appears to be political patronage for well-connected
financial institutions like Goldman Sachs.

Gold once served as a check against the wholesale
increase in money supply, since investors would quickly
respond to such increases by investing in gold. In my
opinion, this is the fundamental reason for gold's
existence -- for investment purposes to preserve value.
But by participating in gold leasing schemes as
outlined by GATA, central banks are removing a market
check against wholesale increases in the money supply.

Without gold leasing, investors would have long ago
protected themselves by buying gold or mining shares.
Gold-Eagle's Milhouse estimates that the money supply
is growing by double digits while GDP growth is only
around 4 percent. To me this indicates the goal of
central banks that are in the pockets of the banking
industry. The result will be debasement of currencies,
including the dollar.

In the short term the dollar is being propped up by
foreign investors flocking into the U.S. equities
markets, but the dollar is like the king with no
clothes -- not strong because of manufacturing strength
but because of a financial bubble created by the
Federal Reserve and gold leasing. They are two sides of
the same coin.

-END-

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Source URL:
http://www.gata.org/node/437