SF Chronicle smashes gold-carry trade

12:30a EDT Monday, October 4, 1999

Dear Friend of GATA and Gold:

GATA Chairman Bill quot;Midasquot; Murphy has been working
all weekend as usual, collecting intelligence on the
precious metals markets from around the world, and
has filed two more dispatches.

They are very long and I'm not going to post them
here to you, but I'll summarize them and you can
read them in their entirely without charge by taking
a free trial subscription to www.lemetropolecafe.com.

Bill's first dispatch of the weekend puts together the
interesting coincidences surrounding the bailout and
imminent dissolution of the infamous hedge fund,
Long-Term Capital Management. You may remember
that LTCM started fighting with GATA a few months
ago, but the firm's lawyer took off when we asked
him to document his assertions, and now it seems
that the whole firm is about to take off. At least
that's what the firm's de-facto agent, New York
Federal Reserve President William McDonough,
announced in Chicago on Friday night.

Bill's second dispatch is a compendium of the
latest indications about gold from around the
world, and a warning to the big and desperate
shorts that GATA now has them surrounded
and offers them a dishonorable surrender:

Cover or die.

Bill disclosed Friday that some shorts are
already defaulting. He has another big scoop
in the second weekend dispatch: South
African gold producers are about to unite to
restrict production and thereby apply the
fatal pressure to the already faltering gold-
leasing business. This will create a bit of
an OPEC for gold.

Asian gold is being quoted at this hour at
US$309, almost $4 above Friday's close.

May we all have another interesting week
as we carry the gold cause toward the
victory of working people and honest money
worldwide.

Please post this as seems useful.

CHRIS POWELL, Secretary