By Bill Murphy www.LeMetropoleCafe.com September 6, 2001 Gold $272.90 up $1.10 Silver $4.16 Early this morning I returned from my third trip to Washington in behalf of GATA during the past three years. The first two first visits were most inspiring and filled with excitement/expectations of correcting the terrible wrong that the GATA camp had uncovered regarding the gold market. I will never forget the day that House Speaker Dennis Hastert asked Chris Powell, Reg Howe, Frank Veneroso, and me to step into the awesome Lincoln Room in his office while he conferred with powerful Republican Rep. Dick Armey and Rep. Spencer Bachus, chairman of the Subcommittee on Domestic and International Monetary Policy, about meeting with us that afternoon. This trip to Washington was emotionally much different. This time, I felt like a scout on a reconnaissance mission into enemy territory. "Enemy" in the sense that it has become clear over the past three years that GATA is taking on "The Establishment" -- Democrats, Republicans, the mainstream press, the big money power brokers, Wall Street, the bullion banks, etc. -- who can be further described as the U.S. power structure elite. Washington IS establishment -- defined as such in that Washington is all about politics and it is the ensconced incumbents that rule the day -- which is what the U.S. campaign finance reform flap has been all about. They don't become ex-incumbents very easily. The first rule of the establishment to stay in power in Washington is to protect the status quo and for most of the politicians that means protecting their fund raisers. Exposing the gold scandal will affect big money interests all over the U.S. These interests would rather not know about the gold fraud or even acknowledge hearing about it. All of us are aware of the serious financial implications which will result once the GATA camp revelations are understood by the mainstream. There are even some in our camp that say that GATA's revelations should not be revealed for those very reasons. I say just the opposite. On May 10, 2000, when the above-mentioned GATA delegation met with the speaker, we told him that we had found a malignant cancer that was spreading. It would be curable by chemotherapy type of treatments which would be very painful and that the side effects would be most unpleasant, but the patient would live. We explained to Speaker Hastert that to do nothing and go into denial could be fatal. We also offered that if the Republicans won the White House and they did nothing, that it would most likely blow up on their watch and they would be blamed. They had their chance and it now appears the Republicans have blown the opportunity to rectify the inappropriate gold scheme upon taking over the Administration and placing the blame where it should most go - to the Clinton Administration for ramping up the gold manipulation, as if they were on gold-capping steroids. Almost a year and a half later since GATA's visit to the U.S. Capitol, the problem is that much worse as the U.S. stock market bubble has broken and our equity markets face devastation. Worse, it has taken an additional 1800 to 2400 tonnes of central bank gold to be supplied to the physical market to keep the gold price from rising. That gold is gone, which means the gold problem has worsened to the amount of that expended tonnage and it continues to worsen daily. That is part of the reason why 40 to 60 tonnes of "earmarked" gold has left the N.Y. Fed every month this year. There is no way that President Bush is not aware of what is going on. Without getting into details, an executive summary of the GATA allegations was sent to him via his private fax last May, over 4 months ago. On the very day he received the fax, his economic advisor, Lawrence Lindsey, sent me a letter on White House stationary stating that he could not comment further because of the Reg Howe complaint. Lawrence Lindsey was on the Fed Board of Governors when the "officially denied" gold swaps were discussed during FOMC meetings. What kind of scoop is he feeding the President on the gold issue? The president has been either been given bum advice or he has made a terrible blunder by not acting swiftly to end the gold market deception. So this trip to Washington was one of no illusions. GATA and its supporters must win the day in spite of the Washington crowd, not because we expect to find the good soul politicians that want the truth to rule the day. This was a mission to lay out the overwhelming evidence of a coming scandal and to let the media know that not to cover what we had to say was inexcusable and that they would be held accountable in the future for not doing so. Ironically, as I traveled all over Washington, then to Arlington and Alexandria, Va., I reflected back to the Continental Army of the American colonists and their fight to break away from the tyrannous British and their imperial rule. Almost no one gave them the chance to defeat the oppressors. The same is true of Washington today. The establishment Gold Cartel seriously underestimated the GATA army, while most of the powers in Washington do not even realize yet what their own leaders have done and what consequences they are going to be paying financially for their tyranny. Strangely, almost no one in Washington even realizes what is about to be exposed in the weeks and months ahead. The do not know about our army because their press refused to let them know we were advancing and why. Yet, the gold scandal will effect most every person in Washington because it will have international and financial market impact. That is inescapable. That is why I found it both amusing and sad that the GATA army was surrounding the Washington establishment while few in the establishment, or those that live in the area, even know what is going on. That is going to change soon. Those on the wrong side of the truth, or exposed trying to cover-up the gold scandal, are going to be in deep trouble. The public is going to be enraged that their early warning system (a rising gold price) of financial and stock market problems was taken away from them. As the gold fraud story is exposed, the public will blame the establishment for letting this happen -- they will want to take their rage out on someone else for their personal, financial misfortune. As the press exposes the scandal (or is forced to expose the scandal), GATA's army will grow exponentially as our explanation of what has happened will be an outlet for their rage. And make no mistake about it: the bullion banks, the mainstream gold world, the U.S. Treasury, the Fed, most of the mainstream press and wire services and the politicians have been at war with GATA. That war has been about exposing the truth. They have fought to keep the truth in the dark for years by mocking our efforts. And that is where the "tyrannists" have a big problem. They have the Werewolf "Dracula" problem in that they cannot stand the light of day -- the light of day being the truth about the gold market. They cannot even engage GATA publicly on this issue because they have no retorts to combat our documented evidence. Meanwhile, the more the world sees the details of what we have, the more they say our case is "extremely compelling," at minimum. The GATA story will be all over the world press in the weeks to come. One story will lead to another. As the Reg Howe complaint hearing on October 9 approaches, "Read All About It" type of stories will surface more in the financial press. The more the facts are checked out, the greater the aspersions will be cast on The Gold Cartel and on their apologists. They will no longer be able to hide what they have done and to keep the gold truth in the dark -- where vampires like them thrive on the blood of innocents. Polemics won't be necessary in the weeks to come. My guess is that the next time a GATA delegation goes to Washington, it will be at the invitation of some newly concerned politicians, etc. In a sense, it will be acknowledging that the GATA colonial army has won the day and the establishment will then offer surrender terms. As far as GATA is concerned, those terms must include allowing the gold truth to surface, freeing up the gold market, disclosing in detail all that has occurred and vilifying the arrogant crooks that perpetuated the fraud. What could be more reasonable? Now, why do I feel this way and why do I say this? GATA's Mike Bolser, who flew up from Florida to attend the Washington meetings, and I were most encouraged by our visit. The meetings that we had with the press there were a "10." Then, when I returned home, I had calls waiting for me from the British and Canadian press. On Tuesday I taped a one-hour television show at an elaborate studio for the Free Congress Foundation and their "Endangered Liberties" TV show. Bradley Jansen, U.S. Rep. Ron Paul's main man assistant in Washington for many years, was the show's alert moderator. Bradley is very aware of GATA's issues and agrees that what we have uncovered is a threat to the liberties that the average American now takes for granted. The airing of the show varies, but is scheduled for this coming Sunday morning and is webcast on America One's website at 11 p.m. Sunday. To view the webcast or for more information on America One you can visit their website at: http://www.americaone.com The show may be viewed by millions of Americans. I found it of interest that WVVH in South Hampton, N.Y., ranks the show No. 1. A big thanks to Mike Bolser, whose evidentiary discoveries and chart preparations in the presentation were most helpful from a visual perspective. They enlighten the viewer as to the potential financial market dangers that lie ahead as a result of the manipulation of the gold market and unstable, interest rate derivative structure now in place in the United States. On Tuesday Mike and I went to a luncheon at the Free Congress Foundation, attended by various U.S. senators and representatives, chief aides, the press, political candidates, lobbyists, et. al. The luncheons are held every Tuesday when Congress is in session and it would seem that anybody who is anybody in Washington connected to the Religious Right and the Conservative camp attends a few luncheons during the year. To give you some idea of what I am referring to, handouts were passed out by: * The Eagle Forum and the Traditional Values Coalition. * The Heritage Foundation. * Gun rights groups. * The Ronald Reagan Award group. * The Insider (a Heritage Foundation publication). * Insight Magazine (a publication of the Washington Times Corp.) As most of the attendees need to return to Capitol Hill after lunch, the meeting moved swiftly along and was very informative. There were many speakers, but it was bing, bang, boom, with the next one spieling out his or her two cents' worth in rapid- fire fashion. The speaker who spoke longest was Sen. James M. Inhofe of Oklahoma. Senator Inhofe is the ranking member of the Armed Services Committee, serves on the Armed Services Subcommittee on Readiness and Management as support chair, and is on the Intelligence Committee. The most significant part of his presentation was an alert about the Chinese military buildup. The senator told us that the Chinese now possess certain weapons that even the United States does not have. On his way back to the Senate, I introduced myself and suggested that the United States faces a bigger threat from the Chinese than their military buildup, and that it was gold market blackmail due to the vulnerability of our major bullion banks and their uncoverable short positions. We discussed a few other aspects of GATA's agenda and he asked me to go over it all with his press secretary, Gary Hoitsma. So I did and then told Hoitsma to expect to be hearing from many people on this subject. Senator Inhofe can be reached through Hoitsma as follows: voice 202-224-4721, fax 202-228-0380, email [EMAIL PROTECTED] Senator Inhofe ought to be brought fully up to speed about what GATA has to say. Better for him to be on the case now than have to say he did nothing when the crud hits the fan. I will be faxing Senator Inhofe and Gary Hoitsma tomorrow. For reference purposes I will let him know that I watched the 1989 Super Bowl at the home (ranch) of Sen. John Warner, a member of his Armed Services Committee. It was right after he and Elizabeth Taylor were divorced. I don't think Warner will forget, as he was most interested in the game, being a friend of the owner of the Redskins at the time, Jack Kent Cook. In addition, there were only three others there: my wife at the time, and polo star/businessman Manuel Rojas and his girlfriend, polo player Mary Muldoon. Next I will be calling Jeffrey H. Coors, chairman of the board of the Free Congress Foundation. Jeff, of Coors Beer note, and I knew each other at Cornell University and were classmates. During our senior year he was president of the Conservative Club at Cornell and I went to several meetings. I think about 20 of us attended (practically in hiding at this Ivy League campus) as it was the height of the protest about Vietnam. CARTEL CAPITULATION WATCH The Dow closed today at 9840, down 192, while the Nasdaq submarined to 1705, down 53. You having been hearing what was going to happen to the U.S. stock market and why from the Caf� contributors for a very long time. The analysis does not get any better, any where. The disappearing stock market means contracting bullion bank balance sheets. While banks assets dwindle, loan defaults and credit problems will continue to rise. The risk managers are going to be more nervous by the day about the size of the gold loan exposures at various bullion banks. Unless they are seriously cut back, they will grow in significance as the Fall months roll in. Pressure, pressure, pressure on the bullion banks. It is here. Perhaps that is why the share price of JP Morgan Chase is being trashed. Last I looked it was breaking down technically to around $36 per share. With their interest rate and derivative exposure, $3.60 per share might be more like it someday! The Wall Street crowd and bull market apologists just studder when asked to explain their outlook about the market these days on network business TV. It is pitiful. Batten down the hatches. What you are witnessing is the painful aftermath of the "bubble" bursting. It is ugly now and will get much worse. >From Richard Russell's Sept. 5 commentary: "The US consumer is still buying, buying and more buying -- but for the first time in history the debt burden of American households is equal to their after- tax income. "The talk, the blather, the obfuscations, the baloney, are so thick today that the average investors has to be confused. Consider price/earnings ratios on the widely- watched S&Ps. You can take your choice. Barron's says the P/E are around 25. But standard accounting without all the fiddling and fudging says the P/E of the S&P is around 36. The average over the years have been about 14.5. But at bear market lows the S&P has sold at less than 8 times earnings. "So any way you look at it, the S&P is expensive, very expensive.... "The collapse of the some of the main tech stocks is amazing. Many are losing 75 to 90 percent of their peak value, and this has to be costing investors billions of dollars. "Remember, each day when the sun goes down every stock on every exchange is owned by some one or some institutions. It all adds up to trillions of dollars in losses. "And those losses have to affect the economy. Eventually, the true story will emerge, but so far Washington and the Fed and Wall Street have done a good job of hiding the truth of this bear market." >From Bill King and the King Report: "Yesterday Cisco CEO John Chambers, normally a roaring bull, shocked the tech stocks when he confirmed the worst fears of the HWP-CPQ shotgun marriage by stating, 'You will see very rapid consolidation of IT-related companies.'" This is what Frank Veneroso told the Cafe the past year or two. Chambers is just getting it. Frank Veneroso has been right all along. Veneroso also tells us that the gold loans are 11,000 to 16,000 tonnes, the gold market has been rigged and the price of gold must go many hundreds of dollars higher to ration future supply. Frank tells us the shorts are prisoners of their own positions, cornered by the females of India and other countries in Asia. They are trapped by these gold jewelry wearing dames. A feminist delight. You can verify in the Dos Passos Library and past Midas commentaries what Frank told us what was going to happen to high tech and the stock market. Before the gold market was rigged, Frank was a Wall Street hot shot, a legendary figure -- almost always early, almost always right. The gold fix tarnished his remarkable reputation. That was yesterday. Today all is changing. He will be proved right on gold too. A fortune is there to be made for those long gold and the right gold shares. Get long, be strong. Our time is coming. We will be laughing and scratching, while so many are moaning and groaning. Spread the word to others you know and like. They can be a-winnin' and smilin' too. -END- ------------------------ Yahoo! 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