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barrack obama and gata .......................

  1. 3,360 Posts.
    Taken from Le Metropole Cafe. This is another significant effort from GATA to end the supression of the precious metals.

    Barack Obama and GATA

    If Barack Obama can become President of the United States, then GATA ought to be able to win our battle against The Gold Cartel and their price suppression scheme. As veteran Café members know, we, and many of you, have made all sorts of efforts to win that day … from international conferences, to trips to Washington, to fax campaigns to the gold producer CEOs, to letter writing campaigns to members of Congress, to PR releases, and Chris Powell’s superb efforts with his GATA emails, and so on.

    Every month a suggestion comes my way about something we can do. It is all positive, but, as mentioned above, we have visited most of them over the past decade. And, from my experience, it is best for ALL of us to go all out on one idea and do what we can to make it happen. So here IT is.

    In the summer of 2001 I met with two of President Bush’s Midland, Texas boyhood friends. One of them was the top state politician in Texas, Tom Craddick, so we met at the Texas Capital building. Tom was very cordial and receptive to what I presented about the gold price suppression scheme. He suggested I take GATA’s voluminous information and edit it down to a one or two page executive summary, which he would send to the President on his private fax. Encouraged, I flew home and Chris P and I put together that summary, faxing it to Tom the next morning.

    Don’t know whether President Bush ever saw it, but somebody sure did in the White House, as I received a letter postmarked the very same day from Lawrence Lindsay, his economic advisor at the time, saying he could not comment as the Fed and Treasury were in litigation with GATA’s Reg Howe.

    That was over 7 years ago and since then The Gold Cartel has gone through a considerable amount of central bank gold in implementing their price suppression scheme. The yearly supply/demand deficit (physical market demand over mine and scrap supply) runs somewhere between 1,000 and 1,500 tonnes per year. During that time the hedgers have returned around 2500 tonnes of borrowed gold (guesstimate). Therefore, a ballpark net number of central bank gold which has left their vaults should be around an additional 6500 tonnes.

    When we started GATA, our consultant Frank Veneroso, via his extensive proprietary work, was convinced the central banks had gone through at least 8,000 tonnes of gold in excess of what was commonly thought. Today the general number thrown around for central bank gold reserves is about 30,000 tonnes. Due to surreptitious dishoarding, the GATA number is half of that, or about 15,000 tonnes. It could be a lot less, but better to err on the conservative side.

    Of that amount, a fair number of those reserves remaining in central bank vaults are not going anywhere. Recently the European banks aren’t really selling ANY gold when they could be selling nearly 10 tonnes per week as per the terms of the extended Washington Agreement. This week they actually added to their gold reserves…

    ECB-Gold reserves rise by 1 mln euros in week

    How much of the departed 15,000 tonnes of gold is US or IMF gold is another story for the moment, but one which may be pertinent to where GATA is headed. Two years ago the IMF requested its member central banks properly account for their gold, meaning classify loaned gold (gold not in the central banker coffer) for what it is. The request seems to have gone into a black hole, and I have heard nothing about it in some time.

    At the GATA African Gold Summit on May 10,2001 Frank Veneroso explained that, based on his work, the central banks would start hitting the way re available central bank gold to suppress the price in 7 to 10 years. Well, we are there … that time period. PERHAPS, the amount of melt gold showing up all over the place is an indication we are there. Don’t know, but it fits.

    Two other significant points to make…

    *Gold mine supply is going DOWN for years to come. It has dropped 20% over the past two years from 2500 tonnes to 2250 tonnes. This drop, an ongoing one, is increasing the supply/demand deficit.

    *As a result of financial market stress and capital preservation concerns, demand for gold among the public, all over, is increasing to a significant degree. This too will exacerbate the deficit in the months ahead.

    The point is the price of gold is going to blow sky high. President Bush decided to go with the gold price suppression flow, following Clinton’s lead. As a result, the ammo required to continue their operation has been greatly depleted. If we are even remotely correct, the price of gold will GO BANANAS to the upside before President Obama finishes his term. He can pull a Bush and go with The Gold Cartel and put the day of guaranteed reckoning off, in which he will deservedly receive the blame. (As we all know, when the price of gold soars, the pundits always talk of financial crisis, mismanagement, inflation, dollar problems … all negative for Wall Street and Washington). Or, he can choose to bite the bullet early next year and let the blame rightly fall on the Bush Administration.

    If YOU believed what GATA had to say, what would you do? And that is the key factor for Obama, and his staff, to address. What better way to get right to it than ask two of his top advisors, former Treasury Secretary’s Robert Rubin and Lawrence Summers, to answer specific questions (in writing) GATA will formulate for them. No big discovery issues, investigation as to our claims, etc., just ask the people who have been responsible for the price suppression scheme for the truth, privately just between them. I don’t believe either former Treasury Secretary would lie to the President because they know they will be found out during Obama’s tenure.

    To get the attention of the Obama people, our presentation will include our activities over the years in this manner, including the Bush efforts, my trip to meet with James Saxton, vice-chairman of the Joint Economic Committee and GATA’s visit with the Speaker of the House, Dennis Hastert, and Spencer Bachus, vice-chairman of the Subcommittee on Domestic and International Monetary policy, including gold oversight.

    We will also present our $264,400 full-page color ad which ran in the WSJ on January 31 of this year in which we publicly predicted financial market "disaster" and "catastrophe" … pointing out the suppression of the price of gold led to abnormally low interest rates, etc, which led directly to the excesses of the day which now are causing our country such distress.

    AND, we will also bring to President Obama’s attention the damage the price suppression scheme has done to the people in the mining countries of Southern Africa, especially South Africa itself. This was a feature of our GATA African Gold Summit, which received prime time coverage by the South African Broadcasting Corporation. President Bush and Clinton receive acclaim for their efforts to assist the poor in Africa, yet behind the scenes they fostered a policy which has done the Africans more damage than good. Does the new President want to do the same?

    What better time to make the effort than in December? A USA Today article yesterday:

    PRESIDENTIAL TRANSITION

    Obama team looking to undo Bush policies

    Advisors have compiled a list of actions that can be reversed

    ***

    GATA is having our annual Board meeting this Saturday in New Orleans and we will be discussing this idea at length and refining it further. The key to getting the job done will be to get our polished presentation into the hands of the right people who can get it into the hands of the right Obama people … which is a reason I am getting this out now. Some of you might have some contacts in that regard and GATA would like you to sound some of them out.

    For example, I met with someone yesterday whose cousin is a second term, newly re-elected Democratic Congressmen AND he is on the banking committee. I told this person I would be most grateful if he could contact this man and set up a short meeting in Washington with the Congressman and a staff member. Perhaps a number of meetings could be arranged to give our odds of success a higher probability.

    Any assistance you can give GATA in this regard is greatly appreciated.

    One final note … should Timothy Geithner get the Treasury job, it would fit right into our efforts, for he knows The Gold Cartel all too well. In 1999, he was promoted to Under Secretary of the Treasury for International Affairs and served under Treasury Secretaries Robert Rubin and Lawrence Summers.

    This is only a heads up for the moment to let you know what one of our plans are to end the gold price suppression scheme travesty.

    Bill Murphy

 
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