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-- Posted Monday, 12 June 2006 | Digg This Article
(GATA presentation at 2006 World Gold, PGM & Diamond Investment Conference in Vancouver) Hello, everyone. It’s great to be back in Vancouver and see so many friends made over the years. Six months ago Joe Martin, the host of this conference, was cordial enough to be host for the premiere of the video of GATA’s historic Gold Rush 21 conference in Dawson City, Yukon Territory, in August 2005. We believe that Gold Rush 21 changed the gold market forever. GATA says this because we know the Russian government has been following our work for some time and sent an economic adviser to President Putin, Andrey Bykov, to Gold Rush 21. To come to Dawson City, Bykov skipped the simultaneous mainstream gold conference in Perth, Australia. Gold was trading at $436 at the time. Two days after the conference the gold price exploded, breaking what we had been calling the $6 rule. Gold has not looked back since. There can be little doubt that Bykov gave the sign to Russia to buy gold in earnest. It is no accident that the two heads of state who had mentioned gold in public since Gold Rush 21 have been the presidents of Russia and Iran, who are geopolitical strategic partners. Further, in recent months Iranians have been buying all the gold they can. Just this week NewsMax reported that Credit Suisse has sold hundreds of tonnes of gold to Iran, confirming what GATA continually reported via my commentary for more than six months. Bykov wasn’t the first representative of the Russian government to take note of GATA. On June 3, 2004, a year before Gold Rush 21, the deputy chairman of the Russian central bank, the Bank of Russia, Oleg Mozhaiskov, addressed the London Bullion Market Association at the Baltschug Kempinsky Hotel in Moscow. He said there was a "dualism" in the determination of the gold price that -- and I quote – "distinguishes it from other commodities and makes the movements in the price sometimes so enigmatic that market analysts need to invent fantastic intrigues to explain price dynamics. Many have heard of the group of economists who came together in the society known as the Gold Anti-Trust Action Committee and started a number of lawsuits against the U.S. government, accusing it of organizing an anti-gold conspiracy. They believe that with the assistance of a number of major financial institutions (they mention in particular the Bank for International Settlements, J.P. Morgan Chase, Citigroup, Deutsche Bank, and others), some senior officials have been manipulating the market since 1994. As a result, the price dropped below US$300 an ounce at a time when it should, if it had kept pace with inflation, reached US$740-760." http://www.gata.org/RCBTakesNote.html * * * Gold went from $436 at the time of Gold Rush 21 to $740 at its recent high, an increase of 70 percent in 10 months. Clearly, something decisive happened in Dawson City in August 2005. I am going to come back to the video of Gold Rush 21, but first I would like to highlight the public record of the gold price suppression scheme, a public record nervously overlooked by much of the gold industry. *To begin with, Federal Reserve Chairman Alan Greenspan confessed to the gold price suppression scheme in testimony to Congress on July 24, 1998. Greenspan said: "Central banks stand ready to lease gold in increasing quantities should the price rise." http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm
That is just what the central banks did. *The Reserve Bank of Australia confessed to the gold price suppression scheme in its annual report for 2003. "Foreign currency reserve assets and gold," the RBA said, "are held primarily to support intervention in the foreign exchange market. http://www.rba.gov.au/P
ublicationsAndResearch/RBAAnnualReports/2003/Pdf/opera
tions_financial_markets.pdf *The Bank for International Settlements, the central bank of the central banks, confessed to the gold price suppression scheme last June in a speech by the head of the bank's monetary and economic department, William R. White, to central bankers and academics gathered at the BIS' fourth annual conference, held in Basel, Switzerland. White's speech was titled, "Past and Future of Central Bank Cooperation." He said that a major purpose of central bank cooperation is -- quote -- "the provision of international credits and joint efforts to influence asset prices (especially gold and foreign exchange) in circumstances where this might be thought useful." http://www.iie.com/publications/author_bio.cfm?author_id=122 Now unless you are a member of the Flat Earth Society or believe that the BIS is lying to itself, White’s speech says the central banks manipulate the gold price when it suits them. *Even one of the most powerful and conservative banks in Europe, Cheuvreux, a division of France’s Credit Agricole, said GATA is correct regarding our gold manipulation claims in their Metals and Mining Report released in January. http://www.gata.org/latest.html *It gets better. Just last week GATA revealed an IMF paper which corroborates GATA’s claims much of the central bank gold has been double counted and that the central banks are not properly accounting for the gold no longer in their possession. ISSUES PAPER (RESTEG) # 11 TREATMENT OF GOLD SWAPS AND GOLD DEPOSITS (LOANS) "14. Regarding the statistical treatment of gold swaps, its treatment should be consistent with that of other reverse transactions, as presented in paragraph 7 above. Thus, swapped gold should be excluded from both reserve assets and IIP (demonetization). This is a logical consequence, and overstating of reserve assets can be avoided. On the other hand, this results in a decrease in the financial assets of the monetary authorities." http://www.gata.org/latest.html Ironically, is it the IMF itself that instructed member central banks to deceive the world about their gold holdings in the first place. GATA has been saying all along that the central banks do not have the gold they say they have -- most likely less than half the gold listed in their reserves. The missing gold has been swapped or lent out and is not being properly accounted for as the new IMF study says it should be. Why? Because the missing gold has been used to suppress the gold price. The link between Greenspan’s gold leasing statement and the present deceptive IMF accounting for gold could not be clearer. The more this suppression of the gold price is made known, the more countries and big financial interests will want to own gold -- and the faster gold will soar toward $3,000 and then $5,000 an ounce. *And just two weeks ago it was disclosed that the Oppenheimer group of mutual funds had agreed to lend J.P. Morgan Chase as much as 25 percent of the shares of companies held in Oppenheimer’s gold mining mutual fund. This would seem to mean only one thing -- Morgan Chase’s intense interest in selling gold mining shares short at strategic moments. That is, the Gold Cartel is manipulating not just the price of gold but also the price of gold mining shares. (page2)
https://www.oppenh
eimerfunds.com/pdf/prospectuses/gold
specialmineralsfund.pdf?_requestid=11068
This is collusion, and it is in violation of U.S. anti-trust laws. What happened at Enron is piker stuff compared to what Morgan Chase, Goldman Sachs, and the rest of the Gold Cartel have done to the gold investment world and to the people of gold-producing countries, particularly South Africa. Now back to Gold Rush 21. On August 8 and 9, 2005, GATA assembled 100 delegates from 14 countries to expose the manipulation of the gold market. If you have seen the 24-minute video summarizing Gold Rush 21, which was shown at this conference in January, you know why the Gold Rush 21 DVD is the road map to a fortune. All of you who have followed GATA for years already have made a great deal of money. Because you knew what was coming and why, many of you purchased the shares of smaller gold mining companies. Shares for which you paid pennies are now worth dollars. But the biggest money is still to be made. For that reason I am going to play the two-minute trailer of the Gold Rush 21 DVD, which can also be seen at www.GoldRush21.com. But before I do, I would like to address something that has bugged me for many years -- the notion that those who complain about the manipulation of the gold price are a bunch of kooks, crackpots, and conspiracy nuts. Nothing could be further from the truth. Indeed, the clueless ones are the mainstream gold world and the financial news media, tools of the powerful. Aside from myself, here are the backgrounds, in order of appearance, of those presented on this Gold Rush 21 DVD trailer: * Reg Howe -- a Harvard Law School graduate and former Boston trial attorney who sued the entire Gold Cartel in U.S. District Court in Boston. * Robert K. Landis -- a graduate of Princeton and Harvard Law and a former securities attorney. * Peter George -- a graduate of Oxford and South Africa’s "Mister Gold." * John Embry -- chief investment strategist for Sprott Asset Management in Toronto. There is no more liked and respected figure in the gold investment business in Canada. He is his country’s Mister Gold. * James Turk -- international investment adviser, author of "The Coming Collapse of the Dollar and How to Profit from It," editor of the Freemarket Gold & Money Report, and founder of www.GoldMoney.com. * John Brimelow -- a graduate of Stanford Business School, a gold broker specialist for more than 20 years, and now a hedge fund manager. * Adam Fleming -- former chairman of Harmony Gold, now chairman of Wits Gold in South Africa; related to Ian Fleming of James Bond note. * Hugo Salinas Price -- the renowned Mexican industrialist and president of the Mexican Civic Society for Silver, who is leading the struggle to remonetize the white metal in his country. * GATA’s co-founder, my good friend and colleague, Chris Powell, editor of the Journal Inquirer in Manchester, Connecticut. * While not seen in the trailer, who can forget J.P. Schumacher, manager of the Top-Gold Fund in Switzerland, who came to Gold Rush 21 to present the brilliant speech of his partner, our beloved Ferdinand Lips, the former Rothschild banker, author of "Gold Wars," and leader of the free gold movement. Ferdi died just after Gold Rush 21 but we will never forget this giant of a man. * A Gold Rush 21 speaker and member of GATA’s Board of Directors who is also not shown in the trailer is Catherine Austin Fitts -- a graduate of the Wharton Business School at the University of Pennsylvania, former managing partner at Wall Street giant Dillon Read, and former assistant secretary of the U.S. Department of Housing and Urban Development during the first Bush administration. So those are your "conspiracy nuts." Now for the Gold Rush 21 trailer. Please pay close attention to what was said by the speakers 10 months ago and think what has happened since then. http://www.goldrush21.com/small.html It's time to wrap up with a little fun, and also send a message to the Gold Cartel. The King And I (Bill Murphy and Zulu King Goodwill Zwelitini, great, great grandson to Africa's greatest general, Shaka): 
On December 20, 2000, as chairman of GATA, I wrote an essay titled "South Africa, COSATU, and Shaka." It went like this in part: "It was not long after the Gold Anti-Trust Action Committee was formed almost two years ago that I sent out a missive elucidating GATA's strategy to defeat the Gold Cartel: "‘The Gold Anti-Trust Action Committee has devised a strategy to take on and defeat those who are colluding to suppress the price of gold. ... GATA's strategy is patterned after that of the great South African Zulu chieftain warrior, Shaka. As a youth, he was shunned by his own people and went into exile. But he returned to become a leader of the Zulus and devised a plan to conquer their adversaries. "Previously, wars between tribes were more for show; there was no real fight. It reminds us of what is going on in the gold industry today. There is a lot of complaining but no one is acting against those in the industry who are helping to ruin it. "We are going to change that. "Shaka devised a strategy called the enveloping horn, or the buffalo horn. His attacking Zulu warriors massed in a diamond-shaped formation. The piercing point of the diamond struck first. While the enemy engaged in battling the Zulu warriors at the point of the diamond, the diamond's left and right flanks bolted out to the sides and enveloped the enemy in the shape of a horn. Before the enemy knew it, he was flanked, surrounded, confused, and beaten. "GATA's original version of the "enveloping horn" strategy was first to take on the Gold Cartel head on with legal firepower. Our left flank was to expose the gold scandal via the press and our right flank was to encourage the gold producers to support us and urge them to cut back on the excessive hedging that was putting pressure on the gold price. (Can be found in The James Joyce Library at http://www.lemetropolecafe.com/) *** Here is what has happened since then: *Building on Reg Howe's lawsuit against the Gold Cartel, Blanchard Coin & Bullion sued Barrick Gold and Morgan Chase in U.S. District Court in New Orleans for manipulating the gold price. Defending itself, Barrick proclaimed that it was immune from suit because it had become an agent of the central banks. http://www.lemetropolecafe.com/img2003/memoformotiontodis.pdf * On the right flank of GATA's enveloping horn: The Blanchard case caused Barrick to promise that it would stop hedging gold. This unexpected and dramatic reversal in company policy was the culmination of GATA's efforts over the years to expose the damage the hedgers were doing to their own product and industry. This damage was done at the behest of the bullion banks and central banks in the Gold Cartel. * As for our left flank, GATA lately has begun to receive some attention from the U.S. financial press after being blackballed for seven years … following my first and last appearance on CNBC. In the months ahead we expect more publicity, which will put more pressure on the Gold Cartel to retreat. GATA wants Morgan Chase, Goldman Sachs, and the rest of Gold Cartel to know we are accelerating our efforts to expose them. We want them to HEAR our message loud and clear. We also would like the gold mining companies like those in the next room to support us … at least by buying copies of our Gold Rush 21 DVDs for their major shareholders. We were stunned after our premiere that NONE of them did so, even as the general public has been all over our DVD. When I visited the Zulu king, Goodwill Zwelitini, during a blitzkrieg GATA tour of South Africa in early 2001, I explained to him what GATA was going to do, and why, to help the Zulu people, many of whom were miners out of work because of the suppression of the gold price. As we parted, I said he would hear from GATA again. A delegation from GATA brought the same message to the GATA African Gold Summit in Durban, South Africa, on May 10, 2001 -- a conference attended by representatives of five sub-Saharan African nations, major gold producers, the South African Reserve Bank, and trade unions such as COSATU. It received prime time TV coverage on SABC-TV. To spread GATA's message to The Gold Cartel, the gold companies in the next room, and to get back to King Zwelitini as promised, let’s have a little fun. I’m going to use an excerpt from the movie "Zulu" and will need your participation to make it work. I am going to run through the excerpt four times. The first to listen to and to learn where GATA is requesting you to participate. During the second run, we hope, the less shy will let loose and join in. The last two runs will be ramp-it-up time for all. Put yourself back in time and have some fun. The Zulu warriors of yesteryear are the GATA soldiers of today! Join GATA's Enveloping Horn Army for a moment and be as loud as you can be. IF you are loud enough today, I promise to back to South Africa and, in behalf of GATA, to do what I can to win the day for all of us. Join GATA's Enveloping Horn Army for a moment, from ZULU warrior to GATA soldier, and give it all you got. I do not think it inappropriate to say that SHAKA won his day, and created an empire, by offering an olive branch to all those who opposed him ... declaring that those who joined him would live a good life, while those who still opposed, faced extinction. http://www.lemetropolecafe.com/img2006/zulu.wmv Thank you.
-- Posted Monday, 12 June 2006 | Digg This Article
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