English translation of article about GATA from Quote magazine in Netherlands

9:28p ET Tuesday, May 6, 2003

Dear Friend of GATA and Gold:

Here's an exchange between GATA consultant James
Turk, editor of the Freemarket Gold amp; Money Report
and founder of GoldMoney, and a reader of his recent
essay, quot;More Proof,quot; which was posted at GATA's
Internet site here ...

a href=http://www.gata.org/MoreProof.htmlhttp://www.gata.org/MoreProof.html/a

... as well as at other gold-oriented Internet sites.

Nobody documents his reviews of the gold market as
well as Turk does, but when he is criticized as he is
in this exchange, one realizes that some people won't
begin to suspect surreptitious manipulation of the
gold market until Turk produces Alan Greenspan's
confession signed in Eddie George's blood.

Well, GATA is working on it.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

AN EXCHANGE WITH JAMES TURK
OVER HIS ESSAY 'MORE PROOF'

Dear Mr. Turk:

I have read with interest your recent article posted on
Kitco and wish to compliment your work in detailing the
net flows of gold from the United States and United
Kingdom. This is a good piece of work and certainly
helps to discredit the estimates of Gold Fields Mineral
Services and some others who prefer the gold loan
estimate of 5,000 tonnes.

On the other hand, your overall conclusions suffer the
same weaknesses of Howe's and Veneroso's work, in
that at some point in the presentation, when you run out
of quantitative data, you ask your reader to join you in
filling in the required sum to meet the conclusion of the
study. In this case you try to assure us that more than
doubling your data results to reach the 15,000-tonnes
level is not a leap of faith.Well, it is.

Your reading audience would grow immensly if your
primary energy was to illuminate truth through rigorous
analysis, just as you have attempted in the current work,
instead of pimping the conspiracy theory at the expense
of interpretational liberties taken from the data presented.

To be sure, a conspiracy approach to the mobilization of
central bank reserves has lots of sensationalistic spin
power that doubtless sells copy, but whatever the motives
behind the gold outflow, its very existence and the quantity
involved are a very significant story and cry out for
objective analysis, particularly from the mainstream
gold-trading ftaternity who have long grown tired of the
quot;lunatic fringequot; who forever hype the gold market to the
tune of the Music Man's quot;Trouble in River City.quot;

We are in desparate need of objectivity from men like
you. But to date none of your associates seem to
understand that conclusions worthy of intellectual
discussion follow FROM the data analysis instead of
PRECEEDING it. Until you guys can present
quot;thesis-worthyquot; work, Howe's stuff is going to
continually get thrown out of court.

There are many of us who are cheering for you in
hopes of getting substance, not flash. Your current
work is a good start, but please don't drop the ball on
the 50-yard line and then ask us to imagine a
touchdown simply because the intent was there to
score.

Respectfully,

-- D.R.H.

* *

Dear D.R.H.:

Thanks for your e-mail.I can't and won't speak for Reg Howe
or Frank Veneroso, but I understand your point of view about
my objectivity.

I try to make my analyses objective, within the constraints
given -- namely, the nature of the subject and the limited
information available.

Is there a conspiracy to keep the price of gold constrained?

Cumulatively the evidence suggests that there is. Otherwise,
why would central banks, as just one of many examples,
report gold and gold receivables as one line item on their
balance sheets if they didn't have something to hide?

Central bankers have a strong incentive to maintain the
present fiat money system where they can create money
out of thin air. In a recent newsletter I wrote:

quot;The federal government's debt increased $475.4 billion over
the past 12 months. Of this amount, the Federal Reserve
purchased $68.4 billion of debt instruments, and $218.1 billion
was purchased by commercial banks.So together these
financial agents who create dollars monetized $286.5 billion,
or 60 percent of the increase in the federal debt.In other
words, 60 percent of this debt was used to create new dollars
'out of thin air.'

quot;There was no work undertaken to create these new dollars.
They did not arise from anyone's labor. There was as a result
no wealth created. These dollars were not loaned by someone
who had saved them. So existing wealth wasn't being transferred.

quot;These dollars were created 'out of thin air,' transferred to
the federal government, and then spent.quot;

That kind of unique privilege is a powerful incentive to banks
and governments to maintain their unconstitutional money
cartel (see a href=http://www.fgmr.com/pieces8.htmhttp://www.fgmr.com/pieces8.htm/a), and working
hand in hand they will do whatever they have to do to maintain
that power.

Given that gold is the world's only free-market money, it
represents a threat to the hollow promises of government-
sponsored money. So it is not hard to understand why
governments are intervening in the gold market. And their
footprints are all over the place.

I liked your analogy about the football on the 50-yard line.
But the way I view it, central banks turned the TV off when
the runner got there, and the ball is still moving toward
that touchdown.We are making progress.

Considering that we -- Reg Howe, Frank Veneroso, GATA,
Bill Murphy, and all the others who are contributing -- picked
up the ball deep in the end zone, I am pleased that we keep
getting the TV turned on every few yards so that everybody
can see the state of play progressing, even if central banks
keep turning the TV back off.Regardless of what central
banks do, that football is headed for a touchdown.

When I write my newsletters I put into them 35-years of
business experience, nearly 25 years of which is directly
involved with gold. Thus, I know from my first-hand
experience about the importance of Zurich as the center
for trading physical metal.In the absence of hard data from
Swiss customs or other possible sources, I tried to convey
that importance in my report in a couple of ways -- using the
quote from the 1993 IMF report as well as the U.S. gold
flows from the USGS report.

There were other things I could have added but didn't --
for example, I know from the U.K. Customs that most of the
U.K. gold did not go to the European Union (where the big
gold-holding central banks are), so it was logical to assume
that it went to Switzerland.At the end of the day, I stick by
my statement that quot;it does not take a leap of blind faith to
recognize that at least an equal amount would have been
mobilized from Switzerland and the other centers.quot;

I understand that not everybody may agree with my view.
However, if some diligent soul manages to dig up some
Swiss customs data, maybe the TV will get turned back
on again when the ball is crossing the 40-yard line, which
I guess is the main point.

The truth is emerging, slowly but surely in bits and pieces.
Look at what has been accomplished over the past few
years. Now carry that progress forward in the weeks and
months ahead.The end zone is probably much easier to
reach than we think. GATA is breaking free of tacklers and
picking up speed.

Regards,

-- James Turk

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