Clif Droke: Fed is pumping so much into Wall Street that the market can''t crash

1:34a ET Thursday, May 6, 2004

Dear Friend of GATA and Gold:

In quot;The Bears' Last Stand,quot; Gold Strategies Review editor
Clif Droke sounds a lot like GATA statistician Mike
Bolser, whose nightly analysis is quoted in Bill Murphy's
quot;Midasquot; commentary at LeMetropoleCafe.com. Bolser
says the Federal Reserve is providing enough money to
Wall Street to keep the Dow Jones Industrial Average on
an upward plane through Election Day. Droke writes:

quot;The Fed recently announced that the broader M3 money
supply had exploded upward by $42.1 billion, the biggest
one-week increase of the year, to a record $9.043 trillion.
Since the beginning of 2004, the M3 money supply has
increased by $223.4 billion, or an average weekly increase
of $17.2 billion, according to Donald Rowe of The Wall Street
Digest. At the current pace, M3 will grow by almost $1
trillion in 2004.

quot;As Rowe suggests, this is really the story of the year and
yet almost no mainstream news outlets have covered it. This,
friends, is what is keeping the U.S. economy afloat. It's
also what will help stimulate the job growth that so many are
wringing their hands over.

quot;Already, half a million jobs were created in the first
quarter alone. To quote Rowe, 'Faster M3 money supply growth
produces faster GDP growth.'

quot;The Federal Reserve indicators I follow suggest the Fed is
laying down a massive line of support underneath the stock
market, one that will be extremely difficult if not impossible
for the bears to break. We could well be witnessing the
bears' swan song in 2004.quot;

Droke's essay may be of special interest to gold share
owners who fear that a general market crash will take
gold equities down with it. You can find Droke's essay at
Gold-Eagle here:

a href=http://www.gold-eagle.com/gold_digest_04/droke050504.htmlhttp://www.gold...

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

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