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Be lightning for the land we love

Section: Daily Dispatches

By Bill Murphy
September 6, 2001

Gold $272.90 up $1.10
Silver $4.16

Early this morning I returned from my third trip to
Washington in behalf of GATA during the past three
years. The first two first visits were most inspiring
and filled with excitement/expectations of correcting
the terrible wrong that the GATA camp had uncovered
regarding the gold market.

I will never forget the day that House Speaker Dennis
Hastert asked Chris Powell, Reg Howe, Frank Veneroso,
and me to step into the awesome Lincoln Room in his
office while he conferred with powerful Republican Rep.
Dick Armey and Rep. Spencer Bachus, chairman of the
Subcommittee on Domestic and International Monetary
Policy, about meeting with us that afternoon.

This trip to Washington was emotionally much different.
This time, I felt like a scout on a reconnaissance
mission into enemy territory. quot;Enemyquot; in the sense that
it has become clear over the past three years that GATA
is taking on quot;The Establishmentquot; -- Democrats,
Republicans, the mainstream press, the big money power
brokers, Wall Street, the bullion banks, etc. -- who
can be further described as the U.S. power structure

Washington IS establishment -- defined as such in that
Washington is all about politics and it is the
ensconced incumbents that rule the day -- which is what
the U.S. campaign finance reform flap has been all
about. They don't become ex-incumbents very easily. The
first rule of the establishment to stay in power in
Washington is to protect the status quo and for most of
the politicians that means protecting their fund
raisers. Exposing the gold scandal will affect big
money interests all over the U.S. These interests would
rather not know about the gold fraud or even
acknowledge hearing about it.

All of us are aware of the serious financial
implications which will result once the GATA camp
revelations are understood by the mainstream. There are
even some in our camp that say that GATA's revelations
should not be revealed for those very reasons. I say
just the opposite.

On May 10, 2000, when the above-mentioned GATA
delegation met with the speaker, we told him that we
had found a malignant cancer that was spreading. It
would be curable by chemotherapy type of treatments
which would be very painful and that the side effects
would be most unpleasant, but the patient would live.
We explained to Speaker Hastert that to do nothing and
go into denial could be fatal. We also offered that if
the Republicans won the White House and they did
nothing, that it would most likely blow up on their
watch and they would be blamed.

They had their chance and it now appears the
Republicans have blown the opportunity to rectify the
inappropriate gold scheme upon taking over the
Administration and placing the blame where it should
most go - to the Clinton Administration for ramping up
the gold manipulation, as if they were on gold-capping

Almost a year and a half later since GATA's visit to
the U.S. Capitol, the problem is that much worse as the
U.S. stock market bubble has broken and our equity
markets face devastation. Worse, it has taken an
additional 1800 to 2400 tonnes of central bank gold to
be supplied to the physical market to keep the gold
price from rising. That gold is gone, which means the
gold problem has worsened to the amount of that
expended tonnage and it continues to worsen daily. That
is part of the reason why 40 to 60 tonnes of
quot;earmarkedquot; gold has left the N.Y. Fed every month this

There is no way that President Bush is not aware of
what is going on. Without getting into details, an
executive summary of the GATA allegations was sent to
him via his private fax last May, over 4 months ago. On
the very day he received the fax, his economic advisor,
Lawrence Lindsey, sent me a letter on White House
stationary stating that he could not comment further
because of the Reg Howe complaint. Lawrence Lindsey was
on the Fed Board of Governors when the quot;officially
deniedquot; gold swaps were discussed during FOMC meetings.
What kind of scoop is he feeding the President on the
gold issue? The president has been either been given
bum advice or he has made a terrible blunder by not
acting swiftly to end the gold market deception.

So this trip to Washington was one of no illusions.
GATA and its supporters must win the day in spite of
the Washington crowd, not because we expect to find the
good soul politicians that want the truth to rule the
day. This was a mission to lay out the overwhelming
evidence of a coming scandal and to let the media know
that not to cover what we had to say was inexcusable
and that they would be held accountable in the future
for not doing so.

Ironically, as I traveled all over Washington, then to
Arlington and Alexandria, Va., I reflected back to the
Continental Army of the American colonists and their
fight to break away from the tyrannous British and
their imperial rule. Almost no one gave them the chance
to defeat the oppressors. The same is true of
Washington today. The establishment Gold Cartel
seriously underestimated the GATA army, while most of
the powers in Washington do not even realize yet what
their own leaders have done and what consequences they
are going to be paying financially for their tyranny.

Strangely, almost no one in Washington even realizes
what is about to be exposed in the weeks and months
ahead. The do not know about our army because their
press refused to let them know we were advancing and
why. Yet, the gold scandal will effect most every
person in Washington because it will have international
and financial market impact. That is inescapable.

That is why I found it both amusing and sad that the
GATA army was surrounding the Washington establishment
while few in the establishment, or those that live in
the area, even know what is going on. That is going to
change soon. Those on the wrong side of the truth, or
exposed trying to cover-up the gold scandal, are going
to be in deep trouble.

The public is going to be enraged that their early
warning system (a rising gold price) of financial and
stock market problems was taken away from them. As the
gold fraud story is exposed, the public will blame the
establishment for letting this happen -- they will want
to take their rage out on someone else for their
personal, financial misfortune. As the press exposes
the scandal (or is forced to expose the scandal),
GATA's army will grow exponentially as our explanation
of what has happened will be an outlet for their

And make no mistake about it: the bullion banks, the
mainstream gold world, the U.S. Treasury, the Fed, most
of the mainstream press and wire services and the
politicians have been at war with GATA. That war has
been about exposing the truth. They have fought to keep
the truth in the dark for years by mocking our

And that is where the quot;tyrannistsquot; have a big problem.
They have the Werewolf quot;Draculaquot; problem in that they
cannot stand the light of day -- the light of day being
the truth about the gold market. They cannot even
engage GATA publicly on this issue because they have no
retorts to combat our documented evidence. Meanwhile,
the more the world sees the details of what we have,
the more they say our case is quot;extremely compelling,quot;
at minimum.

The GATA story will be all over the world press in the
weeks to come. One story will lead to another. As the
Reg Howe complaint hearing on October 9 approaches,
quot;Read All About Itquot; type of stories will surface more
in the financial press. The more the facts are checked
out, the greater the aspersions will be cast on The
Gold Cartel and on their apologists. They will no
longer be able to hide what they have done and to keep
the gold truth in the dark -- where vampires like them
thrive on the blood of innocents.

Polemics won't be necessary in the weeks to come.

My guess is that the next time a GATA delegation goes
to Washington, it will be at the invitation of some
newly concerned politicians, etc. In a sense, it will
be acknowledging that the GATA colonial army has won
the day and the establishment will then offer surrender
terms. As far as GATA is concerned, those terms must
include allowing the gold truth to surface, freeing up
the gold market, disclosing in detail all that has
occurred and vilifying the arrogant crooks that
perpetuated the fraud.

What could be more reasonable?

Now, why do I feel this way and why do I say this?

GATA's Mike Bolser, who flew up from Florida to attend
the Washington meetings, and I were most encouraged by
our visit.

The meetings that we had with the press there were a
quot;10.quot; Then, when I returned home, I had calls waiting
for me from the British and Canadian press.

On Tuesday I taped a one-hour television show at an
elaborate studio for the Free Congress Foundation and
their quot;Endangered Libertiesquot; TV show. Bradley Jansen,
U.S. Rep. Ron Paul's main man assistant in Washington
for many years, was the show's alert moderator. Bradley
is very aware of GATA's issues and agrees that what we
have uncovered is a threat to the liberties that the
average American now takes for granted.

The airing of the show varies, but is scheduled for
this coming Sunday morning and is webcast on America
One's website at 11 p.m. Sunday.

To view the webcast or for more information on America
One you can visit their website at:

a href=http://www.americaone.com

The show may be viewed by millions of Americans. I
found it of interest that WVVH in South Hampton, N.Y.,
ranks the show No. 1.

A big thanks to Mike Bolser, whose evidentiary
discoveries and chart preparations in the presentation
were most helpful from a visual perspective. They
enlighten the viewer as to the potential financial
market dangers that lie ahead as a result of the
manipulation of the gold market and unstable, interest
rate derivative structure now in place in the United

On Tuesday Mike and I went to a luncheon at the Free
Congress Foundation, attended by various U.S. senators
and representatives, chief aides, the press, political
candidates, lobbyists, et. al. The luncheons are held
every Tuesday when Congress is in session and it would
seem that anybody who is anybody in Washington
connected to the Religious Right and the Conservative
camp attends a few luncheons during the year.

To give you some idea of what I am referring to,
handouts were passed out by:

* The Eagle Forum and the Traditional Values Coalition.

* The Heritage Foundation.

* Gun rights groups.

* The Ronald Reagan Award group.

* The Insider (a Heritage Foundation publication).

* Insight Magazine (a publication of the Washington
Times Corp.) As most of the attendees need to return to
Capitol Hill after lunch, the meeting moved swiftly
along and was very informative. There were many
speakers, but it was bing, bang, boom, with the next
one spieling out his or her two cents' worth in rapid-
fire fashion.

The speaker who spoke longest was Sen. James M. Inhofe
of Oklahoma.

Senator Inhofe is the ranking member of the Armed
Services Committee, serves on the Armed Services
Subcommittee on Readiness and Management as support
chair, and is on the Intelligence Committee. The most
significant part of his presentation was an alert about
the Chinese military buildup. The senator told us that
the Chinese now possess certain weapons that even the
United States does not have.

On his way back to the Senate, I introduced myself and
suggested that the United States faces a bigger threat
from the Chinese than their military buildup, and that
it was gold market blackmail due to the vulnerability
of our major bullion banks and their uncoverable short

We discussed a few other aspects of GATA's agenda and
he asked me to go over it all with his press secretary,
Gary Hoitsma. So I did and then told Hoitsma to expect
to be hearing from many people on this subject. Senator
Inhofe can be reached through Hoitsma as follows: voice
202-224-4721, fax 202-228-0380, email

Senator Inhofe ought to be brought fully up to speed
about what GATA has to say. Better for him to be on the
case now than have to say he did nothing when the crud
hits the fan.

I will be faxing Senator Inhofe and Gary Hoitsma
tomorrow. For reference purposes I will let him know
that I watched the 1989 Super Bowl at the home (ranch)
of Sen. John Warner, a member of his Armed Services
Committee. It was right after he and Elizabeth Taylor
were divorced. I don't think Warner will forget, as he
was most interested in the game, being a friend of the
owner of the Redskins at the time, Jack Kent Cook. In
addition, there were only three others there: my wife
at the time, and polo star/businessman Manuel Rojas and
his girlfriend, polo player Mary Muldoon.

Next I will be calling Jeffrey H. Coors, chairman of
the board of the Free Congress Foundation. Jeff, of
Coors Beer note, and I knew each other at Cornell
University and were classmates. During our senior year
he was president of the Conservative Club at Cornell
and I went to several meetings. I think about 20 of us
attended (practically in hiding at this Ivy League
campus) as it was the height of the protest about


The Dow closed today at 9840, down 192, while the
Nasdaq submarined to 1705, down 53. You having been
hearing what was going to happen to the U.S. stock
market and why from the Caf contributors for a very
long time. The analysis does not get any better, any

The disappearing stock market means contracting bullion
bank balance sheets. While banks assets dwindle, loan
defaults and credit problems will continue to rise. The
risk managers are going to be more nervous by the day
about the size of the gold loan exposures at various
bullion banks. Unless they are seriously cut back, they
will grow in significance as the Fall months roll

Pressure, pressure, pressure on the bullion banks. It
is here. Perhaps that is why the share price of JP
Morgan Chase is being trashed. Last I looked it was
breaking down technically to around $36 per share. With
their interest rate and derivative exposure, $3.60 per
share might be more like it someday!

The Wall Street crowd and bull market apologists just
studder when asked to explain their outlook about the
market these days on network business TV. It is

Batten down the hatches. What you are witnessing is the
painful aftermath of the quot;bubblequot; bursting. It is ugly
now and will get much worse.

From Richard Russell's Sept. 5 commentary:

quot;The US consumer is still buying, buying and more
buying -- but for the first time in history the debt
burden of American households is equal to their after-
tax income.

quot;The talk, the blather, the obfuscations, the baloney,
are so thick today that the average investors has to be
confused. Consider price/earnings ratios on the widely-
watched Samp;Ps. You can take your choice. Barron's says
the P/E are around 25. But standard accounting without
all the fiddling and fudging says the P/E of the Samp;P is
around 36. The average over the years have been about
14.5. But at bear market lows the Samp;P has sold at less
than 8 times earnings.

quot;So any way you look at it, the Samp;P is expensive, very

quot;The collapse of the some of the main tech stocks is
amazing. Many are losing 75 to 90 percent of their peak
value, and this has to be costing investors billions of

quot;Remember, each day when the sun goes down every stock
on every exchange is owned by some one or some
institutions. It all adds up to trillions of dollars in

quot;And those losses have to affect the economy.
Eventually, the true story will emerge, but so far
Washington and the Fed and Wall Street have done a good
job of hiding the truth of this bear market.quot;

From Bill King and the King Report:

quot;Yesterday Cisco CEO John Chambers, normally a roaring
bull, shocked the tech stocks when he confirmed the
worst fears of the HWP-CPQ shotgun marriage by stating,
'You will see very rapid consolidation of IT-related

This is what Frank Veneroso told the Cafe the past year
or two. Chambers is just getting it. Frank Veneroso has
been right all along.

Veneroso also tells us that the gold loans are 11,000
to 16,000 tonnes, the gold market has been rigged and
the price of gold must go many hundreds of dollars
higher to ration future supply. Frank tells us the
shorts are prisoners of their own positions, cornered
by the females of India and other countries in Asia.
They are trapped by these gold jewelry wearing dames. A
feminist delight.

You can verify in the Dos Passos Library and past Midas
commentaries what Frank told us what was going to
happen to high tech and the stock market. Before the
gold market was rigged, Frank was a Wall Street hot
shot, a legendary figure -- almost always early, almost
always right. The gold fix tarnished his remarkable
reputation. That was yesterday. Today all is changing.

He will be proved right on gold too.

A fortune is there to be made for those long gold and
the right gold shares. Get long, be strong. Our time is
coming. We will be laughing and scratching, while so
many are moaning and groaning. Spread the word to
others you know and like. They can be a-winnin' and
smilin' too.