- Q. Little Bear is in the 'doghouse'. Which table do you
think he'd be under ? A. Gold, of course. But he is hopeful.
- The Enveloping Horn Will Advance Under The Cover of Darkness
- First Alert: Australia
- Many battles have been won throughout history using the
element of surprise. As long time www.LeMetropoleCafe.com members know,
the Gold Anti-Trust Action Committee has employed the "Enveloping
Horn" battle tactic of the great South African Zulu Chieftain warrior,
- Tonight, the allied "pro gold" forces will
be on the move and will strike at the very heart of our adversaries, those
malign "axis" forces that have been manipulating the gold market
and not allowing it to rise in price no matter how much wage and commodity
prices accelerate in the United States and around the world, and regardless
of the fact that the natural supply/demand gold deficit exceeds1500 tonnes
- Tomorrow, our center spread, full page open letter to
the U.S. Senate and House banking committee members will appear in Roll
Call, the most widely read newspaper of the Washington political elite.
It is a 4 color open letter addressed to all of these banking members that
explains to them the reason why they were handed a 90 page document. The
Gold Anti-Trust Action Committee's research strongly suggests it is the
machinations of certain government officials and certain bullion banks
that have allowed a gold derivative problem to develop that could create
an international banking crisis at any time.
- This 90 page GATA delegation "Gold Derivative Banking
Crisis" document is filled with evidence that supports GATA's case.
We only ask the banking committee members in Congress to ask certain questions
of the bullion bankers. They can have their answers in weeks and those
answers will determine if we are correct or not. No big deal. These same
banks report their consumer loan books, their mortgage loan books and their
corporate loan books. They brag about the growth of these loans. Yet, they
say nothing about their gold loan books or the growth of their gold loans.
That is what Frank Veneroso explained to the politicians and economists
that the GATA delegation met with in Washington.
- All of the Senate and House banking committee members
are mentioned in our open letter by name and state. The insinuation is
clear. Our delegation has delivered an incendiary document to them with
specific questions that they can ask the bullion bankers to find out if
we are correct in our assertions. If they do not at least get some answers
to those questions, and GATA is correct about a potentially serious international
banking crisis, then their future individual political lives should be
- How many times do we have to experience a crisis first
and then learn of political committees being formed to investigate who
is at fault AFTER that crisis developed? We have suggested to Congress
that this time they do their homework BEFORE one develops!
- Congressional staffers are underpaid and overworked.
That is why we have, and will continue to provide, an exact road map of
who to talk to and what to ask, so that they do not get bamboozled by the
bullion banking crowd. The GATA delegation and GATA committee are working
on these in-depth questions for the banking committees as this commentary
is being written to you.
- The final 3 paragraphs in our open Roll Call letter to
the individually named Senators and House banking committee members reads
- "*Too much gold is being consumed at too cheap a
price. Massive amounts of derivatives are being used to suppress the gold
price. If this situation is not corrected soon, there will be a gold derivative
credit and default crisis of epic proportions that will threaten the solvency
of the largest international banks and the world standing of the dollar.
- "As you are aware, a 90 page document of our extraordinary
findings was personally delivered to your offices last Thursday.
- "The Gold Anti-Trust Action Committee requests that
a full and complete investigation be launched into this matter as soon
as possible. The longer the gold price is artificially held down, the bigger
the eventual banking crisis." End.
- Since I personally dropped off the document at the staff
of all of the banking members, they cannot say that they did not receive
"evidentiary" notice of our claims. All of Washington will know
that the "banking politicos" have been presented with overwhelming
evidence of a significant gold derivative problem. If they do not at least
make the effort to follow up on our allegations and a crisis does develop
down the road, they will have no one to blame but themselves. You can be
sure that is the message that their future political opponents will send
to all of THEIR CONSTITUENTS if nothing is done.
- So, why the announcement that "allied" GATA
forces are on the move?
- First, the Roll Call open letter seeps through Washington
tomorrow morning. We hope to have some sort of presentation of the open
letter for you at the CafÈ and at the www.GATA.org. web site sometime
during the day on Monday. It is a powerful presentation and highlights
the burgeoning gold derivative positions of JUST the commercial banks.
Hello investment bank Goldman Sachs!
- Second, a well known reporter of one of the most respected
newspapers in the world, emailed a GATA supporter asking him if I would
immediately send a copy of the Roll Call open letter. I have no clue if
anything will come out of it. Just in case nothing does, GATA will issue
a press release about our recent activities.
- Mysteriously third, John Hathaway's brilliant commentary,
"J P Morgan To The Rescue," has suddenly disappeared from his
own www.tocqueville.com Web site and that of www.gold-eagle.com, at which
it was recently posted. The Gold Anti-Trust Action Committee has long decried
that it is the real big money powers in the United States that are trying
to silence the real facts about the gold market and any written commentary
of worth that goes against their PROPAGANDA. Is this just one more common
sense example that we are right?
- I strongly suggest that it is.
- The Gold Anti-Trust Action Committee has been told by
very informed sources that JP Morgan had no idea until Friday that their
derivative book was in the public domain and uncovered by GATA's investigator.
It is obvious JP Morgan was very upset to learn about this and got to Tocqueville!
- This is further evidence that GATA's contentions are
correct. Otherwise, JP Morgan would have just ho hummed the news of their
$38 billion dollar derivative gold position at the end of last year!
- John Hathaway's "piece de resistance" can now
only be read at the Dos Passos Table at www. LeMetropoleCafe.com. or the
GATA e-group site. I don't care who calls; this insightful commentary will
not be politically corrected and taken down from the CafÈ, for any
reason. Besides, I have already forwarded John's commentary to two banking
committee staff members who have acknowledged receipt of his essay. Whoever
wants to silence this wonderful commentary is too late. THE ENVELOPING
HORN IS WAY AHEAD OF THEM!
- Finally, we have all of YOU to help our ARMY advance
with unprecedented speed and precision. Roll Call is published on Mondays
and Thursdays. That means it will be on the desks of the Congressmen for
- If you like what you read in our open letter, we urge
each CafÈ member and every American who believes in "free markets,"
to contact their Senator or Representative about the Roll Call open letter.
JUST ask them to read it and consider what we have to say! Email is great,
but a phone call and, even better, a fax, will do the trick more effectively.
That is what our allies in Washington told the GATA delegation this past
- The GATA delegation was received in Washington with more
courtesy and attention than any of us believed possible before we arrived
at the Capitol. Some of the most influential men in Congress had read our
biographies. We were all stunned. Tomorrow morning, the essence of what
our team conveyed to those same members of the United States Congress will
be revealed to the Washington political world.
- The signatures of the Gold Anti-Trust Action Committee
on the open letter to the banking committee members reads:
- Bill Murphy Chairman
- Chris Powell Secretary/Treasurer
- Ethan B. Stroud Attorney at law, formerly Justice Department,
- John R. Feather Attorney at law, formerly legal staff,
Federal Reserve Bank
- Ethan and John are two of the most highly respected attorneys
in Texas and stoutly stand behind what the Gold Anti-Trust Action Committee
has to say.
- Now for the kicker. GATA is not a political organization.
We have just as many Democrat supporters as Republicans. The Gold Anti-Trust
Action Committee's goal is only out to find out the truth about the gold
market and expose the reckless manipulation that we believe is flagrantly
occurring. Keep that in mind as you proceed from here on.
- At the same time, we KNOW we are in a WAR. To win that
war one must understand and appreciate certain dynamics. We have no power
and little money, much as the Colonists in 1776 must have felt versus the
overbearing British tyrants at the time. The manipulators of the gold market
have almost ALL the money, power and influence. WE have only the truth,
the internet and many of you inspired supporters that are behind our efforts.
- That in mind, it might surprise you that on our visit
to Washington we learned that Democrat Congressman, Patrick Kennedy, has
launched a RICO type of action against one of the most esteemed Republican
leaders in Congress, Tom DeLay - Congressman from Texas. From what the
GATA delegation could ascertain, this flagrant political assault is one
of extreme provocation. WHY?:
- Yesterday's Chicago Tribune story might offer a clue:
- CARETAKER OF THE HOUSE' HASTERT IS ON A MISSION
- By William Neikirk Washington Bureau Chicago Tribune
May 13, 2000
- WASHINGTON -- In an unexpected blow to Speaker Dennis
Hastert's daunting campaign to keep Republicans in charge of the House
of Representatives, Rep. Amo Houghton stunned Hastert a little over a month
ago with the news he was going to retire.
- At 73, Houghton said it was time for him to go.
- "I'm the oldest Marine here," he said. "I'm
cranky. I forget."
- But, he said, the Illinois Republican told him: "You
said that if you ever got out, you'd have someone in the wings. You don't.
Amo, you can't leave me hanging here. There is too much at stake."
- And so Houghton (R-N.Y.) said he reluctantly backed down.
"He was right," the congressman said. "If anyone else had
said that to me, including [former Speaker] Newt Gingrich, I would not
have stayed. He's so decent."
- With only a five-seat margin and 23 open seats to defend
as the result of other GOP members quitting Congress, Hastert is leaving
nothing to chance in a campaign in which a single race could determine
which party controls the House next year and whether he keeps his powerful
- Hastert's job includes talking people like Houghton and
Rep. J.C. Watts (R-Okla.) out of retiring, or persuading a former district
attorney in Jackson, Miss., Dunne Lampton, to jump into the race against
first-term Democratic Rep. Ronnie Shows. It has also included traveling
to 100 districts this year and raising nearly $12 million for Republican
- Hastert said that from now until November, he will concentrate
on the 40 to 50 truly competitive races.
- Since taking control, Hastert has had to endure characterizations
such as "the accidental speaker" and "caretaker of the House."
Violently disagreeing with depictions of him as weak, Hastert is also on
a mission in this race--establishing his own personal legitimacy as Speaker.
- Yet in this endeavor, Hastert inspires comparisons with
Gingrich, the man who engineered the GOP victory in 1994 and resigned after
the 1998 elections narrowed his party's majority. To many Republicans,
Hastert's strength is that he is nothing like the fiery visionary Gingrich,
who became a favorite target of Democrats.
- "Denny doesn't think that fast," said Houghton.
"It's an asset. He doesn't dart around like a pea on a hot griddle.
He's a thinking politician, not one of those Roman candles."
- To Democrats, he is so plain vanilla that they are looking
past him and to the holdovers from Gingrich's regime, Majority Leader Dick
Armey and Majority Whip Tom DeLay, both Texas Republicans, to brand the
party as being out of step with Americans.
- Rep. Patrick Kennedy (D-R.I.), the Democrats' chief fund
raiser in the House, said Hastert is only in his job at the sufferance
of DeLay and Armey, and that DeLay "is still the one running the show."
- The Gold Anti-Trust Action Committee is not about a political
agenda. However, we firmly believe that it is the current Democratic administration
that has buffaloed the gold price and engendered a life of financial MISERY
for so many of us. That will become clear when the Roll Call add is presented
to the thinking world. Patrick Kennedy has taken the gloves off, very unnecessarily,
to belittle the Republican opposition in an attempt to influence a few
influential political races in the coming, close political election. We
are only presenting what is evident.
- Something is clearly "rotten in the State of Denmark"
when it comes to the gold market AND the fund raising activities of the
present U.S. administration.
- Johnny Chung, who was much apart of the China Gate Scandal
and who visited the White House 57 times to support Hillary and Bill Clinton's
fund raising activities, responded to my GATA's allegations over the phone
this past week with this comment, "that FITS the pattern of the present
administration." By the way, Johnny could not have been more classy
on the phone.
- This is a Democrat talking, CafÈ members, not
a right wing Republican zealot!
- The GATA delegation was advised of this outrageous Kennedy
claim during our visit in the Nation's Capitol. The claim is a scurrilous
one and at cursory review, baseless. But, with the control of the Nation's
legislative agenda for the years to come at stake, all the gloves are off.
- PERHAPS, that is why the GATA delegation was so attentively
listened to. We received feedback right away that what we wanted to talk
about was already making a few rounds in Washington financial circles in
a soft spoken way. But, it is all so complicated. Then, out of nowhere,
we show up with a 90 page document of credible evidence of serious manipulation
of the gold market by present administration personnel and allied bullion
banks. If what we have to say has merit, Goldgate could rival Watergate
because of its eventual financial and political ramifications.
- Long Live the Enveloping Horn
- Bill Murphy
- GATA Delegation Makes Significant Progress in Washington
- On Wednesday at 11:30, the Gold Anti-Trust Action Committee
consisting of Chris Powell, Reginald Howe, Frank Veneroso, a State Senator
and myself met with one of the most powerful politicians in Washington.
It was only going to be a 15 minute meeting. It lasted 45 minutes.
- At the end of the meeting, we were excused from the room
for several minutes. When the people we met with returned, we were told
that they were going to try and set up a meeting with another influential
politician at 2 o'clock, but that we would have to call at 1:30 to confirm.
- We were stunned to learn at 1:30 that this politician
had said, "I am aware of the issue," and that he wanted to meet
with the GATA delegation. The meeting took place and six members of his
staff also attended. What was most remarkable is that this politician left
the floor of Congress to attend our hastily arranged, unscheduled meeting.
- This politician asked many questions and was very focused
on what we had to say. So much so, that he was annoyed when a staff member
left to deal with some other pending issue, saying that this was more important.
He told us he had read our biographies before coming to the meeting and
was a bit taken aback when he was handed the "Gold Derivative Banking
Crisis" document to him with his name and state on it.
- This knowledgeable politician said that he and his staff
would look into our contentions and suggested that we might meet again.
After this very intense one hour meeting, he returned to Congress which
was in session.
- From there, we went on to meet with Dr. John Silvia,
the Chief Economist of the Senate Banking Committee. I could tell he had
spent some time on our presentation because he had highlighted material
that I had sent to him. Frank, Reg and Chris did a terrific job (as they
did in all the meetings) explaining what we have learned through our extensive
research. That meeting also lasted an hour and Dr. Silvia took copious
- Yesterday, I passed out 88 of the documents to the staff
of all the Senators and Representatives on the banking committees. They
were told to look for an open letter to all of them in Monday's Roll Call.
- That was some schlep. For the Senate I went to the Dirksen,
Russell and Hart buildings. For the House I went to the Rayburn, Longworth
and Cannon buildings. It took me the entire day, but was well worth it.
Congressman Lee Terry of Nebraska could not have been nicer and said he
would read the document on his way back to his native state this weekend.
- I was struck by how different all the buildings were.
AND HOW BIG. Most were about 100 yards long and were circular for traffic
flow. I made the mistake of buying new shoes for the trip. Now, my feet
are all blistered. Big booboo.
- My last stop was the Rayburn Building and I smiled as
I went by The Gold Room.
- It was the opinion of the entire Gold Anti-Trust Action
Committee delegation that the trip was far more fruitful than any one of
us dreamed possible. However, as we all know, that was just our first salvo.
There is much to be done to win the day and we are already planning our
next course of action.
- When our adversaries realize how far we have come, we
know that they will go all out to discredit us. If yesterday's meetings
were any indication of making a serious impact on those who count in Washington,
the other side has their work cut out for them!
- Bill Murphy
- William J. Murphy III is the Chairman of the Gold Anti-Trust
Action Committee and owner of www.LeMetropoleCafe.com. A graduate of the
School of Hotel Administration at Cornell University in 1968, he went to
become a starting wide receiver with the Boston Patriots of the American
Football League. Mr. Murphy, who now resides in Dallas, Texas, spent much
of his business career in the Futures Industry with such firms as Drexel
Burnham and Shearson Hayden Stone. Today, he writes gold market commentary
for his financial web site that features the precious metals and contrarian
- Disclaimer notice: Midas du Metropole does not look like
an investment advisor, nor is he one. Any comments about any gold and silver
shares by Midas or any of the Cafe members are for your information and
entertainment only. They should not be regarded as advice and should be
treated like comments passed on at any other Cafe. We are only relating
as to what we like for our own accounts.
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