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GATA urgently needs your help to put the gold question to Greenspan

Section: Daily Dispatches

Sunday, July 14, 2002

Deirdre Veldon, Editor
Irish Times
4th Floor, Ballast House
Aston Quay
Dublin 2, Ireland

Dear Ms. Veldon:

I am chairman of the Gold Anti-Trust Action
Committee (GATA) and would be most
appreciative if you could forward this letter
to Bono or advise how I may reach him.

Gold Anti-Trust Action Committee Inc.

* * *

Dear Bono:

You are a good-hearted fellow Irishman and
have gone all over the world doing what you
can to help the poor, especially in sub-
Saharan Africa. You have run into some
obstacles. I have a way that WE can begin to
turn the tide within weeks and, at the most,

Unfortunately and unknowingly, you consorted
with someone who is doing his best to
suppress the economies of sub-Saharan
countries. I am referring specifically to
U.S. Treasury Secretary Paul O'Neill. Just
about everyone knows you toured that part of
the world with Secretary O'Neill to drum up
economic support for the beleaguered and
starving poor.

I say that because O'Neill is part of a group
that is suppressing the price of gold to
unnaturally low levels. I call this group
the Gold Cartel, and it includes bullion
banks such as J.P. Morgan Chase, Goldman
Sachs, and Citibank; the New York Federal
Reserve Bank; the U.S. Exchange Stabilization
Fund; the International Monetary Fund; and
the Bank for International Settlements.

If it weren't for the Gold Cartel, the price
of gold would have risen to $600 per ounce
years ago and sub-Saharan Africa would be
enjoying a natural resources boom. The
economies in this part of the world would be
flourishing. But not long ago The Economist
called Africa quot;the hopeless continent.quot; Were
it not for the Western banking establishment
and U.S. Government, Africa would now be
called the quot;natural resource boom continent.quot;

Just this past week former President Clinton
spoke at the 14th Annual International AIDS
Conference in Barcelona about how so much
more needs to be done by the West to help
Africa with this horrible disease.
Grotesquely, Clinton himself is as
responsible for the money problems of sub-
Saharan Africa (and the resulting deaths) as
any person in the world because the
orchestration of a low gold price began
during his presidency. It was set in motion
by his treasury secretaries, Robert Rubin and
Lawrence Summers, with the approval of
Federal Reserve Chairman Alan Greenspan. One
triggerman for this price-fixing operation
was Peter Fisher, formerly of the New York
Fed during the Clinton administration and now
undersecretary of the treasury in the Bush

I would love to say that President Bush is
above the fray, but he is not. His economic
adviser, Lawrence Lindsay, is a former Fed
governor and knows everything about the
suppression of the gold price. A delegation
of the Gold Anti-Trust Action Committee met
with U.S. House Speaker Dennis Hastert on May
10, 2000, and presented him with our Gold
Derivative Banking Crisis report. We urged
him to end the gold price manipulation before
the inevitable gold scandal soiled the
Republican Party. But the Republicans chose
to continue the gold fraud, not end it.
President Bush publicly supports aid to sub-
Saharan Africa while his administration's
gold policy is devastating Africa

For the past 3 1/2 years, GATA has collected
evidence of this manipulation. Not one person
in the gold industry has contradicted the
specifics of our evidence.

Bono, you might like to know that GATA and
its army have persevered over the years
without pay, and we even held our own GATA
African Gold Summit in Durban, South Africa,
on May 10, 20001. Five sub-Saharan African
nations were represented at the conference,
as were South Africa's National Union of
Mineworkers, Cosatu (the most prominent trade
union in South Africa), the major South
African gold producers, the South African
Ministry of Minerals and Energy, the Reserve
Bank of South Africa, and several news
organizations, including the South African
Broadcasting Co. You may review what
transpired at our Internet site,

A nine-page report on our conference
subsequently appeared in the widely read New
African magazine. It would be my pleasure to
present a copy to you.

The Washington/New York financial press is
loathe to deal with this issue, but certain
members of the U.S. Congress are not. Reps.
Ron Paul of Texas and John Larson of
Connecticut are co-sponsoring the Monetary
Reform and Accountability Act. This
legislation is now in committee. It asks only
that the president and treasury secretary
that if the President, or the Treasury get
the approval of Congress before entering the
gold market. Secretary O'Neill is on record
as opposing this legislation, which seeks
only truth and transparency. In remarks
published in the Congressional Record to
support his legislation, Representative Paul
has cited GATA's overwhelming evidence of
manipulation of the gold price.

One corporate scandal after another is
breaking in America. The biggest American
scandal of all revolves around gold because
the Gold Cartel's suppression of the gold
price has contributed to so many deaths in

This scandal still not on the radar screens
of most American investor. But they soon are
going to realize that the Gold Cartel took
their gold barometer away from them. That
barometer would have warned ordinary
Americans that something was wrong and that
our stock market was very vulnerable. When
they know what GATA knows, Americans will go
berserk. I love my country, but what our
bullion bankers have done, along with a few
of our politicians, is appalling.

More than 5,000 Africans die every day from
AIDS alone. There is no money for medicine.
By 2010 there will be 13,000 deaths each day.
Already 11.5 million Africans have died from
AIDS. Life expectancy in many African
countries is now well below 40 years, having
dropped from 57-70 years just 10 years ago.
The people of sub-Saharan Africa are being
forced to suffer the equivalent of two World
Trade Center tower collapses every day.

This has to end!

To further substantiate GATA's claims:

RBC Global Investment Management Inc., a
division of Royal Bank of Canada, whose gold
mutual fund is among the best performing in
the world, has issued a report that was
circulated throughout Europe to clients and
prospective clients. This report fully
endorses GATA's analysis of the gold market
and the manipulation of the price of gold.

The report says the price of gold is going to
explode for the following reasons:

1) Unsustainable supply/demand imbalance.

2) Unsustainable short position.

3) Unsustainable low inflation.

4) Unsustainable U.S. dollar.

5) Unsustainable prices for financial assets.

6) Increasing evidence of unsustainable gold
price manipulation.

Point 6 is most significant, as it echoes
what GATA has discovered and revealed over
the past 42 months. The RBC report cites 11
reasons behind the manipulation of the gold

1) Aggressive gold lending, which from an
economic perspective is indefensible, has
filled the supply/demand gap.

2) The New York Fed's gold has been mobilized
when the gold price is rising.

3) Timing of U.S. Exchange Stabilization Fund
gains and losses corresponds to gold price

4) Audited reports of U.S. gold reserves show
unexplained variances.

5) Minutes of Fed meetings confirm officially
denied gold swaps.

6) Rules on gold swaps were revised but
subsequently denied. But individual central
banks have repudiated the denial.

7) U.S. gold reserves have recently been re-
designated twice, initially to quot;custodial
goldquot; and then to quot;deep storage gold.quot;

8) Statistical analysis of unusual gold price
movements since 1994 indicate a high
probability of price suppression. The
invalidation since 1995 of the economic
principle called Gibson's Paradox --- that
gold prices rise when real interest rates
fall -- suggests that the real manipulation
began then.

9) New York gold price movements versus
London trading prices defy odds.

10) Timing of huge increases in bullion bank
gold derivatives is consistent with gold
price declines.

11) A rapid decline in U.S. Treasury holdings
of gold-backed SDR certificates has not been

The RBC Global Investment Management report
goes on to say: quot;One or two of these factors
could be viewed as random, but the full body
of evidence is overwhelming.quot;

GATA has fully documented all 11 points cited
by the RBC report regarding the manipulation
of the price of gold.

The purpose of this letter is very simple. As
chairman of GATA, I would like to meet with
you because of our mutual Irish dedication to
this issue. I will bring GATA's unchallenged
evidence and suggest that you present it to
the most qualified investment counselor of
your choice for review.

There is a beauty in this. The Gold Cartel
cannot stand the light of the day. They will
fold in the world forum under the scrutiny of
GATA's queries because they have no truthful
way to answer our questions without exposing
their fraudulent vulnerabilities.

If I can meet with you, I am convinced we can
win the day. Your world-renowned integrity
and our evidence of what has transpired can
begin to change the plight of sub-Saharan
Africa. The misguided bankers and politicians
are trapped in an untenable and massive gold
short position. As soon as they are exposed
to the world press, the price of gold will

Bono, you are a humanitarian and a hero to
many. Fortunately, GATA can provide you the
ammunition to help the people you champion. I
can be in Dublin or London to meet you at a
moment's notice.

Gold Anti-Trust Action Committee Inc.



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