GATA seeks debate with gold council consultant


10:11p EDT Sunday, September 3, 2000

Dear Friend of GATA and Gold:

As you'll see from the attached dispatch from GATA
Chairman Bill Murphy, Europe's central banking
officials are awakening to the manipulation of markets
in the United States -- and GATA seems to have been the
alarm clock.

Now if only the gold mining industry itself would
awaken and begin supporting GATA in a substantial way.
In that case we might put an end to this racket in just
a few weeks.

If you hold shares in gold mining companies, you can
help GATA and the gold cause by sending this and GATA's
last several dispatches to company executives. Ask them
to consider what GATA is doing and to help us.

Please post this as seems useful.

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

* * *


By Bill Murphy, Chairman
Gold Anti-Trust Action Committee Inc.
September 3, 2000

The following news story is about something that had to
contribute to the sharp rally of the euro on Friday,
but for some strange reason, it was not covered by the
US Press. At least no one I know had heard of it or
read it until today.

Is it any coincidence that the Bank of France Governor
Jean-Claude Trichet is denouncing U.S. financial
markets from Frankfurt, Germany, right after the
Frankfurter Allgemeine Zeitung, Germany's foremost
newspaper, publishes two stories about GATA -- the same
GATA that has been attacking a faction of the U.S.
government and U.S. bullion banks for manipulating the
gold market?

Central bank officials couch their words carefully. The
story emphasizes, "European officials railed against
U.S. financial markets," as in the headline of the
story -- not against financial markets in general.
Trichet's outrage emanates from Frankfurt. Is that a
coincidence too?

Do you not think they know what the United States and
bullion dealers are doing to gold? For that matter,
"gold" could be inserted in this story in place of

The amazing GATA stories in the FAZ were no accident.
Interestingly, the stories contained no contrasting
points of view, as is customary. No, the Bundesbank
wanted to let the world know, in no uncertain terms,
that it had reviewed GATA's Gold Derivative Banking
Crisis report and found it persuasive.

France and Germany are pro-gold and there is much talk
that they are unhappy about what is going on in the
gold market in the United States.

Now, the top official at the Bank of France "rails"
against U.S. speculators and U.S. financial markets.

Many in the GATA camp believe that gold fireworks are
right around the corner. Bellowing smoke is there for
the world to see -- it is black, thick, and raging.

- - - -

Friday, September 1, 2000

Officials: U.S. Drove Euro to Low

By Hans Greimel
Associated Press Business Writer

FRANKFURT, Germany (AP) -- European officials railed
against U.S. financial markets Friday for driving the
euro to a new low after Europe's latest interest rate
hike despite signs that the continent's economic growth
is catching up to the United States.

Bank of France Governor Jean-Claude Trichet blasted
speculators, calling them guilty of "a flagrant
underestimation' of the value of the euro against the

A European Union Commission spokesman said the euro
should continue to rise on a tide of "very healthy'
economic fundamentals throughout the region.

Even the Japanese ministry of finance said Friday the
euro was languishing far below where it should be,
based on economic conditions in the euro zone.

"I expect the euro to recover considerably," said
Haruhiko Kuroda, Japan's vice finance minister for
international affairs, said in Tokyo.

By late afternoon here the euro was trading at 89.92
cents, up from the record low of 88.38 cents reached
Thursday in New York.

Economists speculated that traders panicked at
Thursday's quarter-point interest rate hike by the
European Central Bank, which monitors monetary policy
in the 11 countries using Europe's common currency, the

The ECB has raised interest rates five times this year
-- a move that usually tends to bolster the local
currency. But despite the rate hikes, the euro has
fallen sharply since being launched at $1.16 in January

"It seems to be the case in the United States that they
don't realize the euro zone is really strong enough to
resist this rate hike," said Petra Koehler, an
economist with Dresdner Bank in Frankfurt. "There seems
to be just too much concern."'

Estimates say the European economy will grow between
3.3 percent and 3.5 percent this year.

While that's still behind the U.S. rate of 5.3 percent,
Koehler said a host of other figures are pointing to a
European recovery as well.

Industrial production, employment rates, and external
orders are all on the rise -- and Koehler predicted
that the euro would climb to 98 cents by the end of the
year, once traders carefully consider the numbers.

All that comes on top of weakened figures from the
United States that suggest its economic growth is
slowing. On Friday unemployment figures showed that
joblessness was on the rise.