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The world is falling in on the colluders

Section: Daily Dispatches

11:30p EDT Thursday, August 5, 1999

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy filed this commentary at about yesterday's gold market
action. It may interest you. Please post this as seems
useful. It HELPS and we're gaining on the bad guys!

With good wishes.

Gold Anti-Trust Action Committee Inc.

* * *

quot;Midasquot; commentary for Wednesday, August 4, 1999

By Bill Murphy

Deja vu all over again as Yogi Berra, the great
American philosopher, would say. How can one not help
but wonder what is it that the quot;Hannibalsquot; are so
afraid of? I mean REALLY afraid of!

Gold was due to come in $2 higher this morning, and the
silver call was 10 cents higher. Right out of the box,
and it appears on cue, Hannibal Lechter and Co. came
out bombing the gold market: Goldman Sachs, Deutsche
Bank, Chase Bank, and Morgan Stanley -- bing bang boom!

The mantra of quot;no gold excitementquot; was chanted again
all day by these bullion dealers, and it worked, as
gold closed only a dime higher. The volume on Comex was
heavy so it took a significant effort by this goon
squad to hold the price of gold down.

For days we have been citing supportive market factors
for a higher gold price. Those factors are
accelerating. The CRB closed sharply higher again today
at 196.02 up 2.02 -- confirming the break out above its
massive base. Commodity prices are taking off. What do
the quot;Hannibalquot; gold analysts use now for the reason the
gold price is so low? Where is their deflation talk

The dollar closed today at 99.07 -- down sharply once
again. It is reeling! The strong dollar excuse for a
low gold price must also be discarded -- right, Mr.
quot;Hannibalquot; Analyst?

The stock market is under severe pressure. The Nasdaq
broke a double bottom and finished the day down 48.07
points. The Dow gave up a 150-point rally and closed
lower. Declining stocks are swamping advancing ones.
Rallies fail day after day. The important bank index
sank once again -- this time for 13 more points.
quot;Hannibalquot; analysts have to throw out quot;the money wants
to be in stocks (not gold)quot; excuse.

While you are at it, quot;Hannibalquot; Analyst, throw out your
excuse that the low gold price signifies that no one
wants precious metals any more. Silver closed up
another 5 cents at the Comex, finishing at $5.51 in
another fine performance. Palladium was limit-up today.

Hannibal, you are running out of gold, excuses. and
time. The world is now beginning to focus on your
activities. The government (CFTC) is finally honing in
on you.

It is becoming so clear to so many that whenever gold
picks its head up, Goldman Sachs, Deutsche Bank, Chase,
et al. will be there to make sure the gold never
rallies very much or creates any exciting press
commentary. This is most noticeable on days when
outside financial events are trading in a fashion that
is normally very positive for gold. Today was a perfect
example of what I am talking about.

But you have a problem now, Hannibal. GATA is telling
the world what you are doing and the world is watching
you. The word is spreading about your price capping,
collusive activities. You are much too obvious at this
stage of the game.

You and officialdom must be really scared to be that
concerned about a lousy $2 to $3 gold price rally. Is
GATA correct that the Bank of England sale was the last
supply card you could play, and you are afraid that if
gold attracts any attention at all, you will not be
able to stop a good gold price rally this time?

Are you afraid of hedge funds like Tiger blowing up
because they are short so much gold that they could
never cover that much on a serious gold rally?

Are you afraid the bullion banks will have big problems
covering thousands of tonnes of short gold positions
when mine supply is only around 2529 tonnes?

Are you afraid that you might have to call on the U.S.
Treasury to bail you out with Fort Knox gold because of
your nefarious trading? Of course, you know that would
cause one of the great financial scandal stinks of all

Are you afraid that the leveraged bond market will
really swoon now if gold takes off as the press starts
spreading the word that inflation is roaring back, and
that is why you won't allow the price of gold ever to
rally more than a few dollars in any given day?

Which one is it, Hannibal? Or is it all of them? You
must be awfully petrified and desperate to have to
resort to selling like you did today (and with a
spotlight on your trading activities to boot).

You are not going to get away with this much longer.
GATA and others are on to your routine. For example,
GATA has told the world that the Bank of England gold
sale was effected to protect the gold short positions
(loans) of the bullion banks and other financial
institutions. We have said all along that the request
for the BOE sale most likely came in your behalf from
U.S. officialdom -- specifically, the U.S. Treasury.

GATA was mocked by the bullion dealer camp for alleging
that collusion like that would ever occur. Well, lo and
behold, look what just happened to cross my desk today
regarding Treasury Secretary Summers.

quot;TOKYO, Aug 4 (Reuters) -- How blunt does it get when
top Japanese and U.S. financial officials go into a
huddle over money matters?

quot;`Eisuke, the world is going to hell, we've got to

quot;According to Japan's then-top financial diplomat, that
is what Lawrence Summers, then-U.S. deputy treasury
secretary, said in a memo to him last September when
the Asian financial crisis had swamped Russia and was
lapping at U.S. shores.

quot;In an article in both the Japanese and English-
language editions of Wednesday's Yomiuri newspaper,
Eisuke Sakakibara lays bare the blunt language of
international finance officials usually masked by
diplomatic formalities.quot;

Last September just happened to be when Long-Term
Capital Management was bailed out via an orchestration
of the New York Fed and was bailed out of their (widely
rumored) 300-tonne gold position.

If our Treasury went to Japanese officials with quot;we've
got to cooperate,quot; it should be very easy to comprehend
and understand that they also went to Tony Blair and
said, quot;We've got to cooperate.quot;

Yes, it would seem that our Treasury has a consistent
modus operandi that has to do with quot;cooperationquot;
(collusion). GATA has alerted Senator Phil Gramm,
chairman of the Senate Banking Committee, about this

There is a reason I am going into all of this once
more. A couple of weeks ago Midas suggested that it was
time to be aggressively long gold, silver, and their
shares. Since then the XAU has risen from 59 to 66.47,
silver has risen some 44 cents, and gold is about the
same price.

My guess is that Hannibal is so blatant about what he
is doing is that his camp is in trouble and soon they
are going to lose control of their manipulation. If the
credit bubble is bursting and the stock market bubble
is bursting, it will be every man for himself. When
some big gold shorts run for the hills, it is likely to
set off a chain reaction that won't stop for a long
time. The gold price will soar.

This may be one of the last chances to buy really cheap
gold and gold shares.