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John Meyer explains the "Scandal"

Section: Daily Dispatches

a G O G A T A friend "F" offers these thoughts, in confidence, for
GATA members only.

For those who need to know:
GS = Goldman Sachs; R = U.S. Treasury Secretary Robert Rubin;
BG = Barrick Gold, a major mining company that is very controversial for
selling so much of its production forward, for hedging so much, and thus
accommodating the short sellers.

I believe the only hope for success in any anti-trust suit launched by
gold investors rests on the imperative of suing PERSONALLY Mr. R.

There is little doubt that the efficacy of the gold carry trade rests on
this man's shoulders. If the man is given reason to fear exposure, then
watch how quickly the gold carry unwinds.

Somebody MUST come up with a smoking gun, specifically tangible evidence
of corruption on the part of Mr. R. If there are any Deep Throats
friendly to gold investors' interests, then you best pray they come
forward and reveal the degree of malfeasance on the part of this guy.
That there is an unmitigated conflict of interest on the part of former
GS partner Mr. R. is self-evident. Yet, the key issue is: Where is the
smoking gun?

Also, I believe that any antitrust suit, in order to be successful, must
expose BG's collusive role with the government. Again my theory is that
BG is the "traitorous" mining company that provided inside information
pertaining to the exact nature of the global gold industry's operations
BEFORE thegovernment decided to move the gold carry trade into full
gear. Some company had to provide detailed info as to the mining
industry's response to the gold carry trade. Furthermore, it simply
cannot be "accidental" that BG obtained the highest price of gold in its
'96 hedge, in which it sold forward something like 75 percent of its
existent gold reserves. My own theory: the company made a pact with the
US government's Mr. R. in order to maintain its enormous tax concessions
on its American properties. In doing so, it undermined the entire gold
industry for its lone benefit.

Again, if your antitrust suit goes in the right directions, I will come
on board. "F"