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Monetary Reform and Gold
THE GOLD BUG WHO FIGHTS BACK
Here is part of the StockHouse Interview (www.stockhouse.com) with Bill
Murphy, Chairman of the Gold Anti-Trust Action (GATA) last Thursday, 27
THIS IS HOW STOCKHOUSE INTRODUCED THE INTERVIEW WITH BILL
Bill Murphy and a small group organized GATA in response to what they
believe are recent admissions by major Wall Street investment houses and
U.S.Federal Reserve officials. GATA believes Wall Street and the Fed
have been colluding, and continue to collude, to control the price and
supply of certain financial securities, some of which involve gold. GATA
plans on mobilizing the gold community: mining companies, their
shareholders, and people who believe in gold's monetary function. The
purpose behind this action is to file an antitrust lawsuit against the
appropriate parties for manipulation of the price of gold .
Mr. Murphy was interviewed late Thursday night, prior to his Friday
appearance on CNBC-TV, about his loud investigation into gold-price
manipulation by Wall Street brokerage firms, international banks, the
U.S. Federal Reserve and members of the Clinton Administration, and one
or more willing accomplices among the world's major gold companies. In
this interview, Mr. Murphy appears closer to announcing a major class
action and anti-trust lawsuit against the parties that he believes have
intentionally held the price of gold below US $300/ounce.
FROM THE INTERVIEW
STOCKHOUSE: HOW DID GATA GET STARTED AND WHY?
BILL MURPHY: This just came into being a week ago. I wrote an article
and another person wrote "Invitation to a Lawsuit." We then formed a
committee and put out a press release so that we could get information
from all kinds of people to determine our course of action. We felt
there have been violations of anti-trust law. The mining industry and
the investors involved in the goldmarkets have been traumatized by
things that we think are wrong and possibly illegal.
SH: WHAT EXACTLY IS GATA DOING?
BILL MURPHY: What we're hoping to do is rally the gold industry, rally
the shareholders, and find out more about collusive activities. We are
now going into discovery. We're gathering together forces in the gold
industry to put together our case. We're organizing in response to some
things that are very wrong in the marketplace. We're gathering
information to determine where we are going to go. There are many people
in the gold industry that know what is going on, but they haven't said
anything because they don't have a forum. A lot of them can't say
anything because the same people that are "bearing" them is where they
get their financing. I've gotten lots of information in the past three
or four days about what's really going on.
Watergate-type "mole"information is being fed to us so that we can get
the information and go towards where the (law) suit should go. Once we
get all of our material, we will go into action.
SH: WHAT IS THE FOCUS ?
BILL MURPHY: The bailout for Long-Term Capital Management. We think
there is an attempt to control price and supply of derivatives. The
Counterparty RiskManagement Group, which was formed by some of the same
Wall Street investment houses, headed up by Goldman Sachs and J.P.
Morgan, to collude with competitors in business to manage risk, to seek
to control price and supply.
If General Motors, Chrysler and Ford got together to determine what
theircosts would be and what their sales would be, would that stand?
We're looking specifically at the people involved in the Long-Term
Capital Management bailout. We're looking specifically at the people
involved in the Counterparty Risk Management group. They're (Goldman
Sachs and J.P. Morgan)part of it, too. We're going to look at all the
activities of all in thisgroup. The last thing these people want is to
have it exposed how short goldthey are, as a group.
SH: WHERE DOES THE U.S. FEDERAL RESERVE FIT INTO THIS?
BILL MURPHY: Greenspan announced (to the U.S. House Banking Committee)
on July 24th: "central banks stand ready to lease gold inincreasing
quantities should the price rise". After that, the price of gold tanked.
Alan Greenspan is famous for (his vague and ambiguous) "Greenspeak." Why
did he come out and make that blunt a statement? I think (he's involved
in this) absolutely and there are reasons for it. I believe the Federal
Reserve, because of the Long-Term Capital bailout, Goldman Sachs -
that's Robert Rubin's old firm, and the New York financial institutions
know how much short gold they are, because of how much money they can
borrow at 1% and put it into these (gold) derivatives.
SH: WHY WOULD THE FEDERAL RESERVE BE CONCERNED ABOUT THE PRICE OF GOLD?
BILL MURPHY: They (the Federal Reserve) fear a rise in the price of gold
because you have the euro coming on stream. We believe there's an Asia
Financial Institute in the works, an Asian financial entity of sorts,
where the yen will be the dominant currency with a gold backing. We know
that at the end of last year, the Asian sector was buying gold and they
were told twice last fall, according to our sources, to back off from
the gold market - by our (U.S. government) officials. They were
aggressive buyers of gold last year and we think they are ready to come
back into the market in a major way.
SH: WILL THIS INVESTIGATION END UP IN A LAWSUIT?
BILL MURPHY: Yes. We're not waffling. We want to make sure. We think
it's clear that there is collusion going on. We're putting our facts
together to most likely bring anti-trust lawsuit and collusion
violations against the people we think are guilty. I would say that the
U.S. Federal Reserve Board is involved because of Alan Greenspan's
statement. We want to know why he made that comment (see above). We know
the Federal Reserve in New York was involved in the bailout. We want to
look at all the people involved in the CounterpartyRisk Management
SH: IS U.S. TREASURY SECRETARY ROBERT RUBIN INVOLVED?
BILL MURPHY: He certainly is aware of what's going on. There's no way he
couldnot be aware of what's going on.