You are here

Sharing info about gold sites, and an exchange of e-mails

Section: Daily Dispatches

Hello GATA Members!

GATA is moving forward with your support and active engagement in
spreading the word. Through the GATA E-mail group, you are making your
actions for GATA known to other members, while drawing encouragement and
inspiration for further action.

Specifically, the GATA E-mail group is for you to:

# share your VIEWPOINTS about the Gold Anti-Trust Action and related
gold issues

# see digests and extracts of what is relevant to GATA at the financial
website Le Metropole Cafe ( where GATA was born.

# get ideas and addresses for action in the GO GATA e-mail campaign, to
keep attention focused on GATA at the Senate, Congress, Media and Gold

There is much scope for action. We are all unpaid volunteers with limits
on the amount of time we can spend on GATA. We are sharing the load
well, and of course there is room for more sharing. Please let us have
URLS and e-mail addresses where you have been active and would like GATA
members to be active in spreading the word.

For example, here is a site Dylan Gaea in Australia has told us about: "This site is for serious
investors and smaller brokers,who deal with a lot of resource stocks,
"writes Dyland. "Raising their awareness as to why gold is in a bear
market will have a multiplier effect, as they notify their clients
throughout Australia; the majority of whom still think it is a free
market. Log on and register a name. The beauty of this site is you can
download a file into your post."

- - - - -
And here is an exchange of e-mails between Dyland and Bob Murphy, GATA
chairman, in which some pertinent questions about the gold price
collusion are asked and answered.


Dear Bill,
I've been posting your info on Australian sites, and it has increased
the awareness here about GATA and the big hedgehog manipulation of the
gold price, especially this last episode.

But I can't really answer this question in response to one of my recent
posts and it seems to be spot on:
"Am I interpreting you correctly?Are these Hedge Funds (Goldman,etc)
lets call them hedgehogs, manipulating the market by exerting influence
on people to give press releases/leaks about IMF sales or changing the
margin ratio for contracts as you mentioned the other day (from the
privateer website)?

Are these hedgehogs so scared about their short positions that they have
to go to those lenghts?
Surely if the fundamental demand is becoming so obvious, then they as
smart investors would be reversing their position to suit this change.
Am I missing something?"

Please can you take the time to answer this question, because it seems
to me that where all this is leading is not the feet of the hedgefunds
but the feet of the Fed.

PS: Please note Bill, I am just an interested nobody that posts on
community forums, I make no money out of this, but I think you are on to
something and I would like to see Australia's second largest export up
there and not in the pits



That is exactly the point. Physical demand is very strong. Gold is a
psyche thing. The gold borrowers have to roll over loans and do not want
the gold price to go up. They keep up the bearish press to demoralize
producers to sell and to keep big time investors away.

The press puts out their propaganda because the main stream press are

Some day, the big shorts will be taken on. That will come as you have
surmised. The shorts may be trying to get the price of gold down right
now to get out themselves and GO Long.


Thanks for the reply. I just need a yes or no answer to this. When you
say that's exactly the point? Do you mean that all this can be laid at
the feet of the Fed?

It seems like there are three levels to all this:

First the superficial one, like Chirac saying sell gold, the superfical
media reportage and the uniformed market participants that believe this
is the free market forces at play.

Second the Goldman Sucks,Wall St Institutions, going short, utilizing
the gold carry trade to make money, which is their brief, but they are
doing it with a nod and a wink from the Fed.

Third the Fed. Who else could get Clinton,Gore, Chirac to talk down
gold? And are the Fed responsible for the lowering of leverage margins
for shorting gold that was announced last Thursday?

The Wall Street Institutions would'nt have that power,would they? Why
would the Fed want to drive the price of gold always lower, I can
understand why the gold carry trade boys do, but what's the Feds agenda
for this?
Regards Dylan


The answer is yes to your question. The Fed is controlling the gold
price for their own reasons and has the help of all the big NY bullion
banks, etc., who are profiting from this.
Americas Great Depression, by Murray N. Rothbard, one of the great
thinkers from the Austrian school of economics. It was only the Austrian
School Economists who understood and warned of the dire consequences of
the 1920s credit induced boom.


The Fed is behind the gold depression because it is scared of what will
happen when the price of gold takes off. Free market forces swing back
and forth, like a pendalum. But with gold depressed for over two years,
the pendalum has become a ball and chain, which with the coming
downswing might demolish Wall Street.

The signal for the downswing crash will be the price of gold going over
$300 and the price of oil going up with it, to over $15 per barrel
perhaps. The price of other commodities, farm produce and consumer goods
will rise also. As Main Street prices inflate, interest rates will go
up, credit supply will be tightened and the U.S. capacity for deficit
spending on imports will be effected.

The U.S. cannot go on forever importing cheap consumer imports to keep
the rest of the world's mega-production facilities ticking over. The
moment the U.S. stops being the big consumer, running up enormous trade
deficits, one nation after the other will default on their debt
obligations. The banking system will collapse, and that will be that:


The January trade deficit (of the U.S.) is indisputable evidence of a
situation moving rapidly from bad to much worse. The record $17 billion
January deficit was $2 billion more than estimated. The deterioration in
the trade picture is absolutely alarming, as the January deficit grew
21% from December, and an astonishing 70% from January 1998.

. . . Exports declined in every region. . . Total January imports were
almost $94 billion, fully 22% greater than exports. . . Imports from
OPEC declined 24%, the result of the collapse of oil prices the past
year. Noteworthy, January oil imports were priced at just over $9, the
lowest price since 1974. Since January, however, the price of crude has
moved sharply higher, and this will only add to our already enormous
trade deficit going forward.

This years trade deficit will likely surpass $200 billion. This
compares to $170 billion in 1998, and $100 billion in 1997.

It is simply hard to fathom such a dramatic deterioration in our trade
balance in just two years. It is even more incredible that no one, not
even a member of the Federal Reserve, seems to have the slightest
concern. In fact, it is now commonplace for the bulls to place a
positive spin by explaining our huge trade gap as a sign of the profound
health of our economy.
- - - - -

GO GATA, Go Gold,

Boudewijn Wegerif -- "Bodwin"
Moderator GATA E-mail Group