Le Metropole Members,

I will be leaving this Tuesday for a quick trip to Vancouver in behalf of GATA - and will be staying at the Delta Vancouver Airport Hotel. If any Cafi members know of any Vancouver press, gold companies or individuals that would like to know more about the Gold Anti-Trust Action Committee, I will be available for dinner at the Pierre Restaurant next to the Delta Hotel at 6:30 Tuesday evening and at 8:00 o'clock the following morning at the Delta Club Lounge for breakfast. Then, I take off to return to Dallas, Texas.

GATA is stepping up it's probe into the manipulation of the gold market. I want all of you to know that all of our information presented to you thus far has come from individuals that I have known for many years and, or, from sources they have known for many years. We are investigating the manipulation of the gold market and on a search for the truth of all that is going on around this "collusive activity." As many of you know, we have been working nights and weekends, without pay, in an effort to get to the bottom of it all. The means doing our homework and running out a lot of ground balls.

We will continue to make a "relentless" effort to expose to the world what the gold market is all about these days and will do so until the "Hannibal Cannibals" have been sent scurrying through the back end of "the enveloping horn" - which will send the gold price soaring to its proper equilibrium price.

If any of you know reporters that would like to take the time and effort to know how logical and obvious our assessment of the manipulation of the gold market is, I suggest you urge them to go to the Library's at the James Joyce Table and the Matisse Table and cull out all the material pertinent regarding the bullion dealers, etc; the obvious nature of the "collusion" becomes very apparent when viewed in detail and over a period of time. It is one year's worth of gathering of info on my part. I am doing the same culling and will have it available in a packaged format in the weeks to come. It will take some time to review, but one cannot come away with any other conclusion that we have a big "scandal" here and staunch "cartel" activity that has permeated the gold market.

Meanwhile, back at the ranch, here is the latest: Bill Jamieson, the Economics Editor of the London Telegraph has written a story about GATA and our efforts to find out if the rumor we heard about Hillary Clinton/gold/ BOE story is true.

It might be helpful to keep two things in mind here when reading Bill's story. Watergate started out in the papers as a third rate burglary - a minor event. In the end, much of the entire Nixon administration was implicated and it brought down a President.

The idea that there could have a stained dress in the Lewinsky/Clinton matter was first said to be preposterous (nobody could be that stupid) and those that got the word out about "the dress" were initially scoffed at.

The London Telegraph

"Lawyer probes Clinton gold claims"

By Bill Jamieson

Sunday, September 12, 1999

"One of America's most senior lawyers has been hired to investigate unfounded allegations on the Internet that Hillary Clinton made huge profits from the recent slump in the price of gold.

The U.S. Gold Anti-Trust Action Committee (GATA) has hired one of America's biggest anti-trust law firms to investigate allegations that a blind trust set up for America's First Lady "shorted gold financial instruments" just before the Bank of England's announcement of gold sales on May 7. The announcement caused a slump in the gold price.

The allegation -- uncluttered by fact and bare of supporting evidence -- surfaced on a U.S. website for financial market aficionados last weekend. Bill Murphy, GATA's chairman, said: "If true, it is an outrage and is further anecdotal evidence of the conspiratorial nature of the Bank of England gold sales and of the high level nature of the manipulation of the gold market."

GATA has retained the Philadelphia firm of Berger & Montague to investigate the rumours. The lawyer on the case is Jerome Marcus, described by Murphy as "the silent brains" behind the Paula Jones case for five years.

Mr. Marcus said: "We have just begun our inquiries and there is little as yet to report. Even if there was any transaction through a blind trust, this would raise questions of credibility. These people all know each other. It is very tantalising but we have to establish first whether it happened."

The allegation is the latest twist in a series of wild conspiracy theories claiming massive gold market manipulation, and doubtless the fact that Clinton's recent down payment for a new home in Westchester County, New York, came from her blind trust will further fuel imaginations.

GATA has been campaigning for months for a halt to IMF and central bank gold sales and for an investigation into alleged gold market manipulation. Murphy has written to Sen. Phil Gramm, chairman of the Senate Banking Committee. His 21-page letter is testimony, if nothing else, to the fact that nothing and no one is being ruled out in GATA's global hunt for gold market manipulators.

This year the price of gold has fallen from more than $280 an ounce to $256.65 now, the bulk of this fall coming after the surprise announcement by Gordon Brown of a programme of Bank of England gold sales. The first of these auctions was held in July, and the second is due next week."

End.

Here is what we have so far regarding our probe into the matter from two diligent Cafi members. We have just begun and have found out through a White House Press release about a Clinton blind trust called, "Boston Harbor Trust Co." I checked the Massachusetts' government agencies and they have no record of it. If anyone on the internet has pertinent, reliable information and can help us in this matter, we would like to review what can be provided. If anyone would like to speak confidentially with our attorneys, that can be arranged.

Note 1:

"Bill -- a little checking on the net disclosed the following:

Boston Harbor Trust Co. is a subsidiary of Pell, Rudman & Co., a firm that runs money for rich people (minimum investment $1 million). Edward Rudman is the CEO. Pell Rudman is a subsidary of United Asset Management.

I'm not sure, but I suspect that Edward is the son of Warren, former U.S. Senator. (I think that because Warren's father was named Edward; he died a couple of years ago, and his obit came up in one of the searches I ran.) I can't say it would shock me.

Edward is (or was) on the board of something called the Northland Company, which was owned or controlled by a family called Danziger (father Robert was the CEO). He's also the chairman of Beth Israel Hospital's Board of Trustees. (Maybe he's Warren's brother instead of his son, since I doubt you get to be chairman of the board at Beth Israel if you're under 50.)

I didn't find anything on Pell, but if Edward is who I think he may be, perhaps Pell is related to the former Senator ofhatame.

Maybe you can see if any of these names rings any bells with any of your friends."

Email 2:

"I never give up. I found the following from The Congressional Record. Yes, THAT congress. It is very long so I am cutting and pasting a couple of snippets to wet your appetite.

1994 Memo: White House 'Task List'

------------------------------------------------------------------------ - ----

This is a memorandum prepared by a White House that has carefully outlined 39 separate scandals and the strategy for covering them up. ------------------------------------------------------------------------ - ----

Congressional Record Online September 11, 1996 Congressional Record pages H10207-H10215

[Congressional Record: September 11, 1996 (House)] [Page H10207-H10215]

From the Congressional Record Online via GPO Access wais.access.gpo.gov]

WHITE HOUSE TASK LIST ------------------------------------------------------------------------ - ----

The SPEAKER pro tempore (Mr. Roth). Under the Speaker's announced policy of May 12, 1995, the gentleman from California [Mr. Cox] is recognized for 60 minutes as the designee of the majority leader.

Mr. COX of California. Mr. Speaker, I rise this afternoon to talk about a document that was recently provided, very belatedly, by the White House to the Congress, a document now referred to as the task list. It is dated December 13, 1994, but it was just provided to the Congress in recent days.

The task list shows 39 scandals that the White House staff in the West Wing, taxpayer supported staff, decided that they needed to work on because there was now going to be a Republican Congress. This memo was prepared just after the November 1994 elections.

Now these are all admissions by the Clinton White House to themselves within the White House internally of what they were doing wrong. GSA. Value Partners. Now Value Partners was, of course, the partnership that Hillary Rodham Clinton invested in. Rather than putting their funds in a blind trust, they did not do so like President Bush did, like President Reagan did, like President Carter did; rather, ran their own investments, and Hillary Rodham Clinton was a partner in Value Partners, a hedge fund which sold short pharmaceutical stocks at a time that the pharmaceutical stock market was falling through the floor because of the Hillary Rodham Clinton [[Page H10208]]

Task Force, and that was, of course, scandal number 7 or so up here on the list. Presidential campaign, FEC audit. Commodities. Now of course we know what the commodities is all about. That is the miraculous fortune that Hillary Rodham Clinton made on the investment of a mere thousand dollars in the cattle futures market.

Hope this helps. The information is out there. We just have to keep digging."

GATA was mentioned in the most recent Forbes. It is another negative gold story from an establishment oriented writer. But at least John Dizard, is letting the world know we are out there. That is more than most of his ilk. Two excellent writers commenting on GATA in a couple of days. I might faint!

The Great Gold Price "Conspiracy";

Or, Read This Before You Invest In Gold

By John Dizard

Forbes Magazine

"The ideology of fanatic gold investors -- and that means most gold investors -- has always been a blend of libertarian and reactionary elements. They talk about Fed conspiracies. They loathe government and its "paper money." They scorn fools who believe in stocks and the dollar. Their feeling of superiority was reinforced in the '70s, as the price of gold zoomed up 1,462 percent while the equity and bond markets crumbled (along with, as they saw it, things like law and order).

But since 1980 gold-stock owners have lost more than 90% of the value of their holdings, measured against the S&P 500. The price of gold is down to a 20-year low of around $250 an ounce. Most economists blame the drop primarily on low inflation and the proliferation of other inflation hedges, especially derivatives. But to goldbugs there has to be a conspiracy. And they think they've found it: speculators -- along with mining companies and other members of the gold industry -- borrowing masses of gold, selling it on the spot market, investing the proceeds in higher-earning securities, then paying back their loans with cheaper gold. If this goes on, they warn, we're in for a financial crash because banks and dealers will have to pay an exorbitant price to cover their short positions.

The goldbugs have a point in that there is short- selling going on and it has helped depress the price of gold in the short term. But most of the short-sellers have offsetting long positions in real supplies for future delivery. Speculative selling is limited, partly because the market is so illiquid. The real problem is the huge pile of gold sitting in government and private vaults. And though there may be a temporary rally soon, the downward spiral in price is likely to continue.

Sniffs Randall Oliphant, president and CEO of giant Barrick Gold of Toronto: "I don't see how promoting a conspiracy theory encourages people to invest in gold."

Most of the selling is being done by mining companies such as Barrick, hoping to lock in a margin between production costs and prices -- a prudent, even routine practice in most industries They borrow gold from so- called bullion bankers (big-name banks and financial firms, which in turn borrow the metal from central banks) Then they sell the gold and use the proceeds to pay their production costs, eventually repaying the loan with their own product.

Why does that strategy infuriate gold fanatics? First, in the short run the hedging depresses the spot gold price as the borrowed metal is sold into the cash market. And as John Brimelow, a gold-stock analyst, points out, the mining companies are essentially forgoing "upside potential in the event of a big price rise -- since some future production will have already been sold at a lower price -- in return for a more predictable but limited earnings stream. This hurts the gold shareholders, who lose the potential from a higher gold price, though management pay is safer."

Says one goldbug: "Barrick Gold is evil. They have debauched this market."

Bad as the mining companies are -- in the goldbugs' eyes -- even worse are the hedge funds, dealers, and other speculators who have supposedly sold billions of dollars worth of gold into the spot market and invested the proceeds in equities, junk bonds, and other paper.

That only works, the goldbugs claim, if interest rates on the borrowed gold (now around 2 percent for six months) and gold prices both stay low. So the speculators supposedly collude to keep things that way.

We're not just talking about a few malcontents wearing T-shirts imprinted with a Glock 9mm pistol and the legend "I Don't Call 911." Listen to John Willson, president and CEO of Placer Dome, the second-largest North American gold producer: "I believe there are forces, such as the central banks, that can get together to modify or manipulate the gold market. They keep the price down."

(Of course, that sentiment hasn't stopped his company from selling short 5 million ounces, or about 1 1/2 years' production.)

Fueling the goldbugs' bitterness, former stalwarts such as the Bank of England and the Swiss National Bank have announced that they will sell a large part of their reserves over the next couple of years. (The former auctioned 25 metric tons -- or 61,600 pounds -- July 6.)

In January gold enthusiasts formed a lobbying group called Gold Anti-Trust Action Inc. and hired veteran Philadelphia tort specialists Berger & Montague to look into a case against "colluders" among the dealers and banks. The World Gold Council, an industry trade group headed by Willson, has its own investigation.

Says Bill Murphy, GATA's chairman: "It is clear that the shorts will blow up in the not too distant future."

How much gold is at issue here? The most extreme goldbugs say speculators alone are borrowing up to 8,000 metric tons, or about $68 billion worth. The more moderate, such as Willson, think the world's total short position is maybe 7,000 to 9,000 tons, divided roughly equally between speculators and industrial users such as mining companies and jewelry makers.

Phillip Klapwijk, managing director of Gold Fields Mineral Services Ltd., an industry economic research firm, puts the total short position at about 4,300 tons at the end of 1998, most sold by miners and industrial users. (Since then, perhaps 500 to 1,000 tons more have been sold short.)

Let's put this in context before we talk about a teetering inverted pyramid of speculation. There are about 137,400 tons -- about $1.1 trillion worth -- of gold above ground, some 31,400 of which is held in central banks, according to Gold Fields. All the "global macro" hedge funds combined have maybe $30 billion available for trades such as selling gold short, and most of that is committed to other positions.

The mines, for their part, are likely to slow their hedging in a couple of years because they and their banks will reach the limits of prudence. That probably means no more than 3,000 tons of producer hedging over the next two to three years -- a little over one year's production.

The capital and credit for a short-selling conspiracy simply aren't there.

"Gold is best looked on as a slowly depreciating currency. It is in the early stages of being turned into just another commodity," says Kevin Crisp, chief gold researcher for J.P. Morgan.

Once it's demoted to the status of pig iron and oats, you can expect to see the price falling to or below the cost of production. That could be a good $50 or more under even today's depressed level. Hard to see a comeback from here. And hard to see a conspiracy."

-END-

Chris Powell, GATA Secretary, has given us a "10" performance as e-group moderator. I highly recommend that Cafi members sign up for this "FREE" service to monitor some news relevant to GATA. This is the deal:

You will receive official GATA dispatches that are posted separately from those posted through the Cafe and will be advised of articles in other publications and at other Internet sites that are of interest to gold investors. You WON'T get junk mail by signing up for the GATA email list; it is absolutely confidential. To put yourself on the GATA email list, just send a request to GATA@eGroups.com, or enroll yourself by going to:

http://www.eGroups.com/group/gata

To rap up this weekend diatribe I would like to send you all this invitation in case anyone is in the Dallas, Texas area on Sep. 25. I will be there and would love to meet you:

THE FAIRMONT

Cordially invites you to the Grand Opening Reception of the ARTS DISTRICT GALLERY

Saturday, September 25th 6 P.M. - 8 P. M.

Featuring

"Masterpieces Revisited" by Alain Despert

A unique and colorful series of contemporary paintings inspired by master works of Picasso, Matisse, Monet, Gaugin, da Vinci, and many others.

Cocktail reception with music Artist in attendance

Address: At the Fairmont Hotel 1717 N. Akard at Ross Dallas, Texas 75201

Alain Despert has been great to GATA. You can still obtain a GATA print for $500 plus shipping. He is a terrific artist and a great fan of ours. I hope that some of you will consider supporting us by buying the GATA fine art print that can be reviewed at the Matisse Table. We are stepping up the pace and need all the support we can get.

All the best,

Bill Murphy Le Patron Chairman, Gold Anti-Trust Action Committee http://www.LeMetropoleCafe.com

-- Andy (2000EOD@prodigy.net), September 12, 1999

Answers

Gotta love that objective reporting in the London Telegraph! LOL! Does Rendon Group work across the pond? Bonuses for all. Bravo.

-- Linda (lwmb@psln.com), September 13, 1999.