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There's gonna be a great day

Section: Daily Dispatches

9:52p ET Wednesday, January 31, 2007

Dear Friend of GATA and Gold:

The interview done with your secretary/treasurer by Doug Hornig of Doug Casey's International Speculator has gotten great distribution at gold-oriented Internet sites, and it was noted at length today by Richard Russell in his Dow Theory Letter. Russell, dean of the American financial letter writers as well as a gold partisan, acknowledges that he always has been "skeptical" about complaints of manipulation of the gold market but says the International Speculator's report "is quite convincing."

Russell's comments about that interview are appended.

Almost as rewarding as Russell's conversion may be his having been able to read the International Speculator report at Bob Moriarty's Internet site, since Moriarty long has been worse than hostile to GATA. Yet there it is at 321Gold tonight -- that maybe GATA is right after all:

Thanks to Ed Steer of Edmonton, a member of GATA's Board of Directors, for persuading the International Speculator people to review GATA's work.

The bad guys are not going quietly. But today's laughable announcement by the International Monetary Fund that it should start selling gold, apparently because the European central banks are tiring of squandering their national patrimonies in support of U.S. extravagance and imperialism, suggests that the bad guys ARE going, if noisily and bitterly.

This has been a long struggle for GATA and its supporters and for all those who understand gold's great and noble purposes in the world financial system. There is much longer to go. But as the song says....

When skies went dark
Came Noah's ark. Amen.
When lions roared
Came Daniel's Lord. Amen.

Lord helps those who pray,
And on Judgment Day
If you believe
Ye shall receive. Amen.

When you're down and out
Lift up your head and shout:
There's gonna be a great day.

Angels in the sky
Promise that by and by
There's gonna be a great day.

Gabriel will warn you.
Some early morn you
Will hear his horn,
It's not far away.
Lift up your head and say:
There's gonna be a great day.

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

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From Dow Theory Letters
By Richard Russell
Wednesday, January 31, 2007

I just read Doug Casey's piece about gold manipulation. You can read it on the excellent 321Gold site, which is free on the Internet.

Frankly, I've always been skeptical regarding claims of manipulation. But the Casey article is quite convincing.

Governments and central banks manipulating the price of gold? Would they really do that? Sure they would -- hey, didn't the Fed under Greenspan hide the M-3 numbers? And Bernanke came in saying that he wanted to make the Fed more transparent. Really? Then why didn't he bring the M-3 figures back? Oh, I see -- he didn't want to insult Greenspan.

But why would anyone want to manipulate the price of gold?

The answer is obvious enough. Rising gold is a red flag. If gold rises too rapidly, it attracts attention, it makes headlines, and then people ask questions. Rising gold might even give the whole plot away. You see, the fiat currency thesis is basically a fraud. It depends on a certain amount of systematic inflation (about 2 percent a year) to survive.

Next question: Why do central bankers want the fiat money system to survive? Simple: It's their livelihood. It's what they live on. It's their ticket to power. When Volcker was asked what he liked best about being head of the Fed, he said, "What I liked best was being addressed as 'Mr. Chairman.'"

But if the public, the voters, ever fully understood what a fraud the fiat money system is, they'd vote to end it.

Fortunately for the central bankers, money seems to be the hardest thing in the world for the average taxpayer to understand. And even though the fiat money system robs the populace of the fruit of their labor and their savings, the people continue accept it -- they just don't know any better. So on and on it goes, and all the while the central bankers continue to put out their brand of BS.

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