Dear Mr President, Chairman Greenspan:

As you know, in May of 2001, members of an organization called the "Gold Anti-Trust Action Committee" has presented to Congress a document entitled "The Gold Derivatives Banking Crisis." The document presented detailed evidence of gold-price manipulation by officials at the highest levels of the Clinton Treasury department, US bullion banks, and Federal Reserve officials. The document was initially well received and spurred a lot of interest and sudden activity among members of Congress - but nothing came of it.

At the time it was most likely deemed politically unwise to do anything about the mounting problem. The plan was probably to let the steam out of this engine slowly, to let bullion banks such as J.P. Morgan Chase and others get out of their crushing gold short-positions slowly and painlessly in order to avoid what was feared would become a meltdown of the US banking system.

It is painfully clear to many citizens that officials at the highest levels of the US banking system probably have many political favors to cash in, and that this forms at least part of the reasons why the bullion banks that amassed such horrendous short positions during the second half of the Clinton administration were not exposed to the consequences of their actions. It appears to many that is was for this reason, and this reason alone, especially during the aftermath of the signing of the Washington Agreement, that these bullion banks were not allowed to bear the brunt of an, eventually unavoidable, change in US policy with respect to the dollar - and gold.

However, times have changed.

The trend of gold prices has firmly turned UP since the turn of the millennium, and continues to go higher, no matter what any US administration, federal reserve system, or banking conglomerate does or doesn’t do.

Even hypnotizing Americans with attractive economic figures and a rising stock market will not make this uncomfortable truth go away. Our current economic "boom" is fueled by Mr. Greenspan’s money-printing presses. Unnaturally low interest rates are driving this economy, and a collective desire to recoup the losses of 2000 to 2002 is what’s driving the stock indices. Running an economy this way is like feeding a steam engine with paper instead of coal. Paper burns too fast and provides too little heat.. This train won’t go very far.

We are witnessing, first hand, a period in human history where the rest of the world is moving toward a monetary standard that favors gold as the ultimate arbiter of economic value. This is a time in which Europe, comprising the majority of the G-7 nations, has developed, and successfully launched and internationally propagated, a new currency concept, the euro. The euro is not structurally threatened by high gold prices - as our current US dollar system unfortunately is.

The euro’s penetration of the world’s central bank reserves has happened at lightning speed, and is still gathering momentum. Even our closest neighbor, Canada, now has currency reserves in euros that almost match those it holds in US dollars.

But, as you know, it is not the euro that drives this new monetary concept that is developing outside the US: it is gold.

The euro’s strength and attractiveness to foreign investors lies in the fact that the euro-system of central banks (a) maintains a fifteen percent gold to other forex-reserves ratio, and (b) values its gold reserves quarterly at market prices. This gives their currency’s reserve position the distinct advantage of rising along with a climbing market price of gold.

And gold is indeed rising.

The US Treasury, on the other hand, values the American people’s gold stock at a measly $42.222 per ounce - no matter what the market says gold is worth. This causes the dollar to suffer from an undue weakness in the face of rising gold prices, and causes people, US citizens and foreigners alike, to progressively abandon the dollar for fear of a loss in purchasing power as a result of such rising gold prices.

And gold prices are in fact rising.

It is now time for the United States to re-evaluate its position relative to gold. In 1971, after then-president Nixon was forced to abrogate the international gold-exchange standard to avoid a total depletion of US gold reserves at the hands of our trading partners, the US was forced to make the world and the American people believe that the dollar was "as good as gold."

The world, and the American people went along with that claim - for the time being. An ever-increasing flood of dollars helped expand global trade - and US power and influence. The price-inflationary effects of such a massive expansion of the US money supply were not felt at home - because the dollar’s exclusive world-reserve and international trade currency status helped export that inflation to other countries.

The world agreed, and supported the dollar - and its quest for lower gold prices - because the dollar was "the only game in town." But since the creation and launch of the euro, this is no longer the case.

Gold is the foundation of all economic value. Even Chairman Greenspan testified before the Senate Banking Committee in 1999 that "gold is the ultimate form of payment."

The right to freely own and trade gold also forms the foundation of all individual property rights - and therefore of all economic individual Liberty. This is the reason our founding documents decree that the states must make nothing other than gold and silver their currency.

Unfortunately, the founding fathers did not foresee that a federal government of later years would find a way to exempt itself from that prohibition and gradually force its citizens to accept an unbacked paper currency that dilutes their right to own property, and leaves them at the mercy of an ever-inflating money supply - all at the behest and whim of politicians and bankers.

But now the price of gold is rising, and people all over the world are divesting themselves of US dollars in favor of gold or other, gold-friendly, currencies.

Communist China, whose brutal totalitarian leaders have only recently threatened to nuke Los Angeles if the US dares to interfere with it’s planned invasion of Taiwan, is allowing its citizens to freely own and trade gold. The thus-unleashed added demand for gold, estimated to be in the billions of dollars per year, will only further destabilize the gold-adverse dollar.

Muslim nations, many of whom are ardent supporters of terrorists, are using gold as an economic weapon against a United States they perceive as "the great Satan".

A gold-adverse, unbacked paper-dollar is defenseless against the onslaught of such forces - forces which, combined, essentially represent the entire rest of the world.

It is now time to reevaluate a US policy that attempts to buck this world-wide trend. It is now time to stop trying to protect bullion banks and heavily hedged producers like Barrick Corporation at the expense of the American people.