Central banks can't determine how much leverage is out there


After the Flood:
How Central Banks Fret
About Failures
Once Liquidity Dries Up

By John Plender
Financial Times, London
Tuesday, January 30, 2007


In September 1998 Bill McDonough, the then president of the Federal Reserve Bank of New York, corralled representatives of 14 leading banks into the Fed's offices at 33 Liberty Street in Manhattan's financial district and urged them to bail out the ailing Long-Term Capital Management hedge fund. It was a classic central banker's response to a potential systemic crisis.

Ted Butler: Buyer beware


4:08p ET Tuesday, January 30, 2007

Dear Friend of GATA and Gold:

Silver market analyst Ted Butler's latest commentary warns against buying silver in pool or certificate accounts that offer no assurance of having real metal behind them in the crunch. His commentary is headlined "Buyer Beware" and you can find it at GoldSeek's companion site, SilverSeek, here:


Falling yen sparks carry trade alert


By Gillian Tett and Peter Garnham
Financial Times, London
Monday, January 29, 2007


The yen hit a four-year low against the US dollar on Monday, intensifying fears that the rising level of currency-based "carry trades" by hedge fund investors could jolt markets if these positions were suddenly unwound.

Hedge-fund hardball: How Amaranth was devoured by its banker, MorganChase


Hedge-Fund Hardball

Amid Amaranth's Crisis,
Other Players Profited

Goldman Offered Deal;
J.P. Morgan Balked,
Then Did One Itself

By Ann Davis, Gregory Zuckerman, and Henny Sender
The Wall Street Journal
Tuesday, January 30, 2007

When Amaranth LLC collapsed in the fall, after swiftly losing more than $6 billion, it was the biggest hedge-fund failure ever. Now as investors slowly get back what's left of their money, it's becoming clear the debacle also had some big winners: other players in the high-stakes energy market who profited from a crippled rival's travails.

Ron Struthers: New commodities index is a lie


8:50p ET Monday, January 29, 2007

Dear Friend of GATA and Gold:

Ron Struthers, editor of Struthers' Resource Stock Report, reports that the new Reuters/CRB commodities price index, introduced in July 2005, shows a plunge in commodity prices even as a calculation of the index according to its former parameters shows a steady increase continuing. The new index, Struthers writes, "has only one purpose and that is to mislead the investment community. It is simply another tool in the Fed/government's chest for the management of economic data."

David Bond reports on Vancouver conference, pro-gold speech by RBC's Fell


7:45p ET Monday, January 29, 2007

Dear Friend of GATA and Gold:

Veteran mining journalist David Bond reports on the Vancouver conference and RBC Capital Markets chief Anthony Fell's salute to gold and his denunciation of central bank mismanagement of the world financial system. This great read is headlined "PEEDAC Will Be on Steroids" and you can find it at GoldSeek's companion site, SilverSeek, here:

MineWeb: China scrambles for African mineral resources


2:14p ET Monday, January 29, 2007

Dear Friend of GATA and Gold:

MineWeb's Alec Hogg reports from Davos, Switzerland, about international recognition that China is aggressively pursuing natural resources in Africa -- a good way of spending all those extra U.S. dollars. You can find Hogg's report, "New Scramble for African Mineral Resources Developing," here:


James Turk comments on International Speculator report on GATA's work


11:59a ET Monday, January 29, 2007

Dear Friend of GATA and Gold:

GoldMoney founder and Free Market Gold & Money Report editor James Turk has some interesting comments on the interview done with your secretary/treasurer by Doug Hornig of Doug Casey's International Speculator letter. You can find Turk's comments, headlined "Is the Gold Price Being Managed?," in the "Founder's Commentary" box at the top left of the GoldMoney home page here:

Even central banks can't figure out market risks now


ECB Head Warns About
'Unstable' Markets

By Gillian Tett
Financial Times, London
Sunday, January 28, 2007


DAVOS, Switzerland -- Conditions in global financial markets look potentially "unstable," suggesting investors need to prepare for a "repricing" of some assets, Jean-Claude Trichet, president of the European Central Bank, said over the weekend in Davos.

'Debt and Delusion' author Peter Warburton to address May 10 CMRE meeting


2:17p ET Sunday, January 28, 2007

Dear Friend of GATA and Gold:

The agenda for the spring dinner meeting of the Committee for Monetary Research and Education, to be held Thursday evening, May 10, in New York City, has been updated to include a tremendous new speaker: Peter Warburton, the British economist and author of "Debt and Delusion," which, published in 1999, showed how the central banks were imperiling the world's economy.