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GATA Army Pounds Away at CNBC
by Bill Murphy, Chairman
Gold Anti-Trust Action Committee
November1, 2004
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October 31 - Gold $428.20 - Silver $7.29 The GATA ARMY continues to pound away at CNBC and other media outlets to expose the flagrant manipulation of the gold market. Today, one of our ARMY connected with one of the brightest minds at CNBC who emailed me: Bill.. Send me simple bullet points, fleshing out your case. *** My response is as follows. Please DO NOT contact CNBC. Allow them time to do their homework. Why CNBC should ALLOW the GATA story to be told! The premise: The Gold Anti-Trust Action Committee, GATA, was formed in January 1999 by my colleague Chris Powell (editor of the Journal Inquirer in Manchester, Connecticut) and myself. Since then the GATA camp has gathered an enormous amount of evidence the gold market has been managed since the mid-1990’s by a Gold Cartel consisting of bullion banks (Goldman Sachs, JP Morgan Chase, etc.), the IMF, the Exchange Stabilization Fund, the Fed, and the Bank for International Settlements. All the evidence is there for the world to read at www.GATA.org and www.LeMetropoleCafe.com, my web site. Bullet points of interest: *GATA met with the Speaker of the House J. Dennis Hastert on May 10, 2000 and presented him with our Gold Derivatives Banking Crisis document. found at: We also met with Spencer Bachus, chairman of the Sub-Committee on Domestic and International Monetary Policy, and NINE of his staff at the request of the Speaker. Later we met with Dr. John Silvia, chief economist of the Senate Banking Committee (who seems to be a regular on CNBC these days). The next day I delivered a copy of the GDBC document to staff members of every member of the House and Senate Banking Committees. * Late January 2001 – Meeting with King Goodwill Zwelithini, leader of the Zulus. King Zwelithini is a direct descendant of the great warrior chieftain Shaka Zulu, Africa's greatest military leader. One hundred thousand SA miners, many of them Zulus, were out of work as a result of the gold price manipulation scheme. To expose and defeat the Gold Cartel, GATA adopted a strategy based upon Shaka’s “Enveloping Horn” battle tactic. For some press coverage of our meeting and mention of our battle plan: http://www.gata.org/first_south_africa_visit.html *The GATA African Gold Summit on May 10, 2001. It was prime time South African Broadcasting Company television for two days. Five nations attended, as did the major SA gold producers, the mining and trade unions, SA Reserve Bank, etc. It created quite a stir in that country. See: http://www.gata.org/durban_press.html *May 23, 2001: I met with Tom Craddick, a boyhood friend of President Bush from Midland, who now has become the most powerful State politician in Texas. The purpose was to warn the President of the building gold problem and how our country could be blackmailed by foreign countries in the financial (gold) markets in the years to come. The next day Mr. Craddick sent an Executive Summary to the President on his private fax. That very same day I received a postmarked letter from Lawrence Lindsay, his economic advisor at the time. *September 2001: GATA's Reg Howe filed a lawsuit against the entire Gold Cartel in Boston Federal Court. The judge did not disparage one bit of Reg's accusations. Instead, he declared the US has sovereign immunity against prosecution and that he did not believe Reg had proper legal standing to go forward - that the suit should be brought by a gold company - which is just what happened years later. The
Golden Sextant Howe
v. Bank for International Settlements, et al. *Blanchard Coin subsequently charged JP Morgan Chase with gold price manipulation in New Orleans Federal Court. The judge was so impressed with Blanchard’s case, she has allowed it do go to DISCOVERY. Blanchard is so pleased with what it has discovered, it just launched a class action suit against the same parties for all those who have lost money in the gold futures/options markets since 1998. See: http://groups.yahoo.com/group/gata/message/2389 * In August 2004 the highly regarded Sprott Asset Management in Toronto released its own publication, "Not Free, Not Fair: The Long-Term Manipulation of the Gold Price." http://groups.yahoo.com/group/gata/message/2338 Of special note in this report, and a comment by me: "(From the Sprott Report, page 25) "For the fourth quarter of 2001, GFMS (Gold Fields Mineral Services) reported that the delta-adjusted hedge book stood at 2924 tonnes. At this point, the notional value of gold derivatives reported to the BIS was $231 billion. However, as of December 31, 2003, the BIS reports gold derivatives of $344 billion. Producer hedging, meanwhile, declined from 2001 to reach 2166 tonnes at year-end 2003." _______Now remember, the gold establishment world (GFMS and World Gold Council) does not account for any gold lending other than to gold producers. Yet, a chimpanzee taking a quick glance at the BIS derivatives number would know that GFMS/WGC is wrong. Over a two-year period the BIS gold derivatives number went up by around 50%, while the official hedging numbers dropped by around 25%. The only logical explanation is this surge in gold derivatives was related to something other than gold hedging. The BIS numbers rose because of undisclosed gold mobilization activity to suppress the price." Have your staff go to anyone in the gold world – World Gold Council specifically, and have them refute, with facts, GATA’s contentions. *In early October, 2004 GATA received a translation of a speech made by the deputy chairman of the Russian Central Bank, Oleg V. Mozhaiskov, presented at the LBMA conference in Moscow on June 4, 2004. The speech was in Russian, yet the only words he spoke in English were of the Gold Anti-Trust Action Committee. Furthermore, they translated this extraordinary speech into English at our request (see For further reference, take note of my colleague Chris Powell’s GATA dispatch: 10:13p ET Sunday, October 3, 2004 Dear Friend of GATA and Gold: Movements in the price of gold are sometimes "so enigmatic" and central banks and bullion banks are so involved with it that the gold market may be less than free, the deputy chairman of the Bank of Russia says. The deputy chairman, Oleg V. Mozhaiskov, made the remarks in a speech at a meeting of the London Bullion Market Association in Moscow in June, but the LBMA and other participants in the meeting suppressed it, refusing repeated requests to release a copy. After months of negotiation, the Bank of Russia last week supplied the Gold Anti-Trust Action Committee with an English translation, which is appended. In his speech to the LBMA Mozhaiskov cited GATA's work at length, and while not formally endorsing it, he showed that the Bank of Russia has been following it closely and knows that much more has been going on in the gold market than is widely acknowledged. Likening the central bank to a giraffe, Mozhaiskov quoted a poem well-known in Russia: "The giraffe is tall, and he sees all." *** To read this remarkable speech, go to: http://www.mises.org/blog/archives/002648.asp#more. *Now for some of my own anecdotal bullet point inputs:
BILL MURPHY CHAIRMAN
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