Thai Guru's Gold und Silber ... (Informationen und Vermutungen)

Reports of what the Chinese are going to do with their currency have become so boring. Here is another one:

Premier says China may surprise on yuan reform
By Scott Hillis

BEIJING, March 14 (Reuters) - China could spring a surprise on financial markets in deciding when and how it reforms the yuan, Premier Wen Jiabao said on Monday in comments seen as warning speculators trying to guess what the country might do.

"Our goal has been to let market supply and demand determine the exchange rate," Wen told a news briefing at the close of the annual session of parliament.

"We are carrying out such work now, and as for the timing and what measures will be adopted, this could be unexpected."

-END-

The Café and GATA have developed quite the information network around the world. On that note I am passing on what I am hearing from a solid source. None of this can go in the verified camp, so it all must be treated as RUMOR until we receive proper verification:

*Russia is preparing for possible war and its actions on the dollar indicate just that; they are going to back Syria, Iran. China will back Iran.

*Russia has made deals on oil and gas projects and opened its minerals to trading. This should show soon in response to Chinese raw materials buying.

*Russia has also abandoned efforts to tie the ruble's movement closely to the dollar and switched to shadowing both the euro and the US currency. This is the first step to war. Other countries operating de facto dollar pegs will follow suit. With 81 per cent of Russia's oil exports currently sold to Europe, the move means that Russia will eventually denominate its oil in euros.

*Remember Russia is the world's second-largest oil exporter, behind Saudi Arabia.

*Asia is following Russia, or should I say leading, and is about to dump dollars in sizeable chunks; they believe that the U.S. dollar is no longer seen as a stable currency and it appears that Malaysia will be the first major Asian economy to dump the dollar. China has already calculated when they will optimize the dumping of the dollar to provide the greatest strength to a newly un-pegged Yuan. Both events will occur very close together and it will be planned to do the most damage to the US.

As you know Bush had a record budget deficit forecast of $427 billion for this fiscal year. All this has other investors turning to the euro and when Asian central banks turn; the dollar's problem will worsen. Dumping dollars will result in stronger Asian currencies and by un-pegging the Chinese currency from the dollar will most certainly trigger the wholesale dismemberment of America's middle class. These developments, when they happen, will be the financial equivalent of a nuclear first strike. When Asians pull the plug, U.S. rates will skyrocket this will be followed by Russia, Germany and maybe France. The Mexican Peso will have more value than the US dollar."

* Halliburton is all over Alaska and probing mining companies there.

*There will be an eventual cutoff of oil to the U.S once an attack on Bushehr occurs. The situation in the US will be worse than 1973.

* The US is going to war and Syria and Iran will be hit. Field commanders have the authority and a green light to go any time.

*Iran has had nuclear weapons since 1991.

*"I'm told in a specific time frame, 36 months or less, the central banks will be completely diversified in currencies and out of the U.S dollar. Be advised they are buyers of gold. When I learned this I was astounded by it."

*"I believe our troops to north of Iraq are all in danger. They will have to have a draft. There is no question about it as they are short people despite U.S officials/congress comments. I have the stats and I know this for a fact that they can not go longer with out doing a draft. They are well over 100,000 short of personnel which was said directly to me; massive preparation like that of WW2 would have to take effect immediately."

-END-

Just food for thought for you. Take it or leave it. Time will tell on all counts.

Valuable insight:

Bill,
These notes may be of interest to you and your readers.

The recent major breakout in the CRB, violated a long-term cycle.

It has been my belief that the primary tool of the interventionists has been utilizing certain long-term cycles.

It is the utilization of these long-term cycles (natural laws), which has allowed the interventionists to engineer the markets more efficiently (heavy handedly) than they did in the 70's and 80's and to conserve their precious physical resources (gold, silver, oil, etc.).

The CRB's long-term cycle violation indicates to me that some leaks in the proverbial dike are getting bigger.

As more long-term cycle violations occur, the crumbling structure of the dike will accelerate.

Currently, I believe the commodities that scares them the most are primarily the energy products with silver and copper secondary.

Many commodities (i.e., precious metals & energy products) are nearing violation of long-term cycles, not the least of which is the CRB trading within 6% of an all-time high and the energy products trading within 4% of all-time highs.

It is my belief that the pressure overnight and today in gold, silver and other commodities is precisely because of these long-term cycle violations.

One of the recent violations of the long-term cycles has been coffee. The fundamentals of coffee have been bullish, and the recent droughts in the Vietnamese and Brazilian crops, which has reduced production by at least 15% and 10%, respectively, has substantially added to coffee's bullishness. As a result, much higher prices are needed to ration current and future coffee inventories.

However, there is a problem for the interventionists.

The CRB index is equally weighted with several commodities, including coffee. In othe rwords, coffee has the same weighting as crude oil.

http://www.crbtrader.com/crbindex/futures_current.asp

Currently, NY coffee is the greatest percentage mover in commodities having appreciated more than 100% in less than 6 months.

As one would expect in today's heavy handed markets (intervention), coffee, in spite of its price rise, has taken on the characteristics of intervention.

Coffee, like gold, is not allowed to have at least 2 consecutive days of upside volatility. After the initial day, the market is either muted or has a reversal day. In May coffee there have been at least 10 days with upside price movement greater than 3% without follow through. The odds of this happening with bullish fundamentals and technicals aligned with long-term bullish cycles is basically impossible without the force of an outside agency.

Additionally, for the past couple of week, the London coffee market has been hit lower 2% to 3% lower on several occasions just prior to NY's opening. This is another sign of attempts to engineer the price of NY coffee. Normally, the London market will get quiet prior to NY's opening. This is similar to gold being hit prior to NY's opening.

One of these day's a leak will get bigger and the dike will break. What will be the leak that breaks the dike? I am not sure, but it could be the leak in attempting to cap higher coffee prices.
All the best,
Raymond Green
RGreen@ilnk.com

More insight in an action-packed MIDAS:

Hi Bill,
Exxon Mobil Chairman and CEO Lee Raymond was interviewed on CNBC last week and stated that "The supply demand fundamentals of oil do not justify the current high price of crude. "

Yet every day we are hearing about Peak Oil, Chinese demand, cold weather (see the BBC article from Friday which states that world price drivers keeping oil expensive in 2005 will be Chinese demand and "freezing weather" ; BBC: Oil demand 'set to soar in 2005' link: http://news.bbc.co.uk/1/hi/business/4339347.stm ).

Treasury Secretary Snow (job) is forever talking on about a "terrorism premium" on oil driving the price higher.

Yet the oil story is nowhere near as interesting when priced in Euros. I guess there is no terrorism premium for Euro denominated oil.

So what is driving the price? I suspect the above play a role but the prime driver is investors (especially those hedge funds awash in greenbacks) seeking returns and/or protection against an eroding US dollar. The weakening US dollar is the big story in the increase of the US dollar price of oil as is the projection of a future rise in the oil price as the US dollar is further projected to weaken. The math is simple. Meanwhile, CNBC rants on about peak oil and Chinese demand.

This raises an interesting question. What about Gold? As you can see in the attached chart from a previous Metropole contributor, the gold / oil price ratio is near a recent history (15 year) low.

http://stockcharts.com/def/servlet/SC.web?c=$GOLD:$WTIC,uu%5br,a%5ddellyyay%5bd19890322,20050314%5d%5bpb50!b200%5d%5bvc60%5d%5bi%5d%5bJ10994849,Y%5d&listNum=29

Yet we know that the mine supply of physical gold is in deficit to the tune of 40% compared to world demand (roughly 2,500 ton mine supply vs. 4,500 ton annual demand) and the mine supply is decreasing each year. As the US dollar declines, the price of gold will only go up further as the dollar diversifiers increase the supply demand deficit of gold. You hear zero about that on CNBC.

There is one factor with gold that is not present with oil and that is the fact that central banks, to date, have been willing to off-load their gold holdings through leasing onto the market. With the recent comments by Korea, China, Japan and India that they are looking at diversifying their currency reserves out of USD, look for the physical gold demand to become excruciatingly high – so high that Western central banks say " ENOUGH ! ".

Central banks are ultimately going to move to protect themselves and given the above announcements from Asian countries, the point that Western central banks are finished subsidizing the purchase of THEIR gold by Asian dollar diversifiers is near. Didn’t Johnny Cash have a song about " I hear the train a comin’ " ? Well it’s a screaming freight train and the wheels are red hot.
Regards,
Dave

The gold shares retreated some more with the XAU losing 1.06 to 100.13 and the HUI giving up 2.34 to 219.22 and dropping below 220 support.

I want to "rap" up by reiterating that the coming move in gold, silver and the shares will certainly be one of the most spectacular in history. Fortunes will be made. Except for some gold coins, every penny I have is invested in gold and silver shares and will remain that way.

The only question is when the volcano blows. The beauty of what GATA is doing is you can expedite the eruption. You can do so by writing, and or calling your gold companies and urge them to support GATA and come to Gold Rush 21. Many of you HAVE done so. ALL of you should do so.

Don’t just sit there and stew over what The Gold Cartel is doing. Go after them. For crying out loud, Ed Steer spent close to two months on his Call To Arms piece at The Matisse Table, making it easy for you to take action. Time to get with the program. Help YOURSELF!

Two points of thought. When speaking to a gold company CEO, ask them what he thinks his share price would be with gold $200 higher at $640 per pounce. Then inform him of the CRB/gold analysis and where gold should be today if it weren’t for The Gold Cartel. The difference in the share price of $600+ gold and today’s price is how much The Gold Cartel is cheating both you and the company.

When speaking to a silver company CEO, let him know he will have the privilege of meeting Hugo Salinas Price, the influential Mexican businessman who is leading the fight to re-monetize silver in Mexico.

GATA BE IN IT TO WIN IT!

MIDAS

Appendix

Rich Caccavale mentioned the following in Sunday’s MIDAS:

"Unfortunately, I believe that in this era of litigation, the only action these useless cowards will understand is a shareholders lawsuit. I believe there is a basis for such a course of action, because their continual failure to formally protest the blatant price fixing, which has been substantiated by GATA to an extremely high legal standard, makes them complicit through negligent retention. At some point there is an industry standard for expectations, which defines reasonable action versus negligence and whether prudent behavior was undertaken."

I believe Rich is correct. There is NOTHING more important to the share prices of the gold and silver companies than the price of their products. With all the evidence surfacing of obvious illegal price-fixing, a failure to take any course of action in response to your letters constitutes gross negligence in my book.

More on this tomorrow. What is important is GATA is out there FOR THEM and THEIR SHAREHOLDERS. What are they doing for the shareholders in this regard?

***

Hi Bill,
I just read Rich Caccavale's letter in your Sunday Midas Commentary . Perhaps in your next Midas Commentary you can ask members to please retain letters sent to gold/silver company executives and directors for evidence for use in a future class action lawsuit against executives and directors.

Canada has some pretty good shareholder rights laws that should be utilized by an aggressive lawyer. An example is Canada Business Corporations Act section 120 (1) Disclosure of Interest. How many officers and directors have personally been short gold or silver futures, options or shares at any time during the past ten years while being an officer or director of a gold or silver mining or exploration company and not made timely disclosure of this? And if they had made disclosure why did they not resign? Section 120 (6.1) Access to Disclosures gives shareholders the right to access any minutes of directors or committee meetings that contain disclosures under this section and any other related documents. There is some good stuff in the Canada Business Corporations Act and similar provincial Acts that can put pressure on officers and directors to begin acting in the shareholders' best interests. We need a sharp lawyer to run with this.
Regards,
Ron Lutka

Dear Chris:
I love it! Finally, something I can do other than get angry about this situation (and load up while the price is still low).

I suggest you tell people to delete the old contacts first, then paste the new ones in; revise the number of years you've held their stock to the personal situation, and also to customize the (silver or gold) statement for their main product to the one that applies. Print it out and read it before sending.

I have 7 companies I'm writing to; one of whom is PAAS for silver. I think there could be a different letter for silver. I have a lot of Ted Butler's writings and am manic about silver's potential, and the huge meltdown in store as the world actually runs out of this historic metal just when we need it the most for automation. Perhaps I'll add that sentence to my letter to customize it more for silver. Ted has shown us these guys are naked under their "shorts," and there are no bank reserves to cover it up once the panic starts. Anyway, take my comments or leave them in your communication to the troops.

Love and blessings,

Beverly Brodsky
Founder, All One Light
Heart-centered life coach, and inspirational speaker and writer

http://www.gata.org/ACallToArms.html

March 15 – Gold $440 down 40 cents – Silver $7.35 down 1 cent

Judge's Order To Barrick/Morgan Is More Vindication For GATA

"The world wishes to be deceived." -- Sebastian Franck

This morning was something else. When I turned on CNBC to find out what gold was doing, it was up over $3. I thought it was a mirage, so I went over to my computer. No it wasn’t. Oops! Yes, it was. By the time I took a shower, ate breakfast and returned to the computer almost $4 in gold gains evaporated with bullion falling into the minus column. Yep, a mirage.

Then, following last night’s MIDAS about Halliburton all over Alaska setting up oil drilling deals, I saw President Bush on the tube mentioning drilling for oil in Alaska. Been trying to find out more on that one.

Then, this word surfaced from New Orleans:

From Bloomberg News Service
The Globe and Mail, Toronto
Tuesday, March 15, 2005

http://www.theglobeandmail.com…/TPBusiness/International

A judge ordered Barrick Gold Corp. and J.P. Morgan Chase & Co. to try to settle a 2-year-old lawsuit filed by coin dealer Blanchard & Co. to avoid a 10-day trial scheduled to start in July.

Blanchard accused the miner and the banker of illegally profiting from the manipulation of gold prices.

Judge Helen Berrigan in New Orleans scheduled a meeting to negotiate a settlement with the companies March 30.

"The court feels that the record has developed sufficiently to allow for meaningful settlement discussions," Judge Berrigan said in a ruling posted yesterday on the court's Web site.

Blanchard sued Toronto-based Barrick and New York-based Morgan, accusing them of taking part in an antitrust scheme to suppress the price of gold and making more than $2 billion (U.S.) in profits from the decline through a hedging program.

-END-

Just last night Kitco posted an interview I did last Friday with Al Korelin and Paul Warren of Vancouver on this very subject:

John Perkins (Author of "Confessions of An Economic Hitman") James Turk (Author of "The Coming Collapse of the Dollar and How to Profit from It") and Bill Murphy (GATA) Provide Lively Discussion

…Bill Murphy of GATA joined us in the fifth segment. Regular listeners know how passionate Bill is when it comes to the issue of "gold price manipulation". His interview this week provided an update on the Blanchard lawsuit and summarized his group's contention that central banks have conspired to rig markets to suppress gold prices, primarily because rising gold causes alarm in the financial community…

http://www.kitco.com/ind/korelin/mar142005.html

-END-

What I focused on was how the case would have to be settled because, from what little I know, should what Blanchard has on Barrick and Morgan surface in the public domain it could lead to the end of the financial world in the US as we presently know it. Thus, it has to be settled out of court.

While the mainstream won’t give this development the time of day or serious meaning, the judge’s order is HUGE for GATA and our camp. WHY:

*The Tim Woods of the world and Barrick itself have trivialized the lawsuit for years, mocking it as "frivolous" and one brought to the New Orleans Federal Court by a bunch of conspiracy nuts.

*The judge’s order is a slap in the face to the critics of both the suit and GATA. This is an ENORMOUS vindication for our ARMY.

*Do you think the New Orleans judge would order one of the most powerful financial institutions in the world to try and SETTLE a lawsuit brought on my some Louisiana coin dealer unless Blanchard had them nailed, or because the case was frivolous? Just from what I know (in general, not specifics) Blanchard has bombshells to drop on both Barrick and Morgan. No way The Gold Cartel can allow what Blanchard most likely has to circulate in the public domain. God forbid the investment world should come to realize what the gold market has really been about for years. God forbid the public should know the truth.

While GATA would dearly love to have what Blanchard has come across during the Discovery process become public information, I certainly can understand why Don Doyle, Blanchard CEO, will settle. He has spent years and millions in legal fees to take on the richest and most powerful people in the world. His effort to get this far is extraordinary. He owes it to himself and his firm to do what is in their best interest. What would you do (after spending millions of your own money) if the richest and most powerful people around offered you $5, $10, $50 million to go away?

One thing is clear based on the judge’s order: All Blanchard has to do is come up with a reasonable number for Barrick and Morgan and the case will be settled with the amount and facts in the case sealed, which is just what I expected all along.

Who knows if this will lead to other lawsuits down the road. If (when) a settlement is reached, I have no idea how it will affect Blanchard’s class action suit against Barrick and Morgan. Perhaps that will be settled at the same time.

Don’t be bummed by this. Think how far GATA (and our argument) has advanced since day one when we retained one of the most prestigious anti-trust litigation firms in the US - that being Berger & Montague in Philadelphia. This led to the valiant suit by Reg Howe, who took on the world all by himself (with financial support from GATA):

UNITED STATES DISTRICT COURT
District of Massachusetts
Civil Action No.
00-CV-12485-RCL
______________________________________
)
Reginald H. Howe, )
Plaintiff, )
)
v. )
)
Bank for International Settlements, )
Alan Greenspan, )
William J. McDonough, )
J.P. Morgan & Co. Inc., )
Chase Manhattan Corp., )
Citigroup, Inc., )
Goldman Sachs Group, Inc., )
Deutsche Bank AG and )
Lawrence H. Summers, )
Secretary of the Treasury, )
Defendants. )
______________________________________)
COMPLAINT

I. Jurisdiction
This is a complaint for damages and injunctive relief arising out of manipulative activities in the gold market from 1994 to the present time orchestrated by government officials acting outside the scope of their legal or constitutional authority and certain large bullion banks active in the over-the-counter gold derivatives markets and on the Commodities Exchange ("COMEX") in New York. The complaint alleges horizontal price fixing in violation of Section 1 of the Sherman Act, securities fraud in violation of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 ("Exchange Act"), common law fraud and breach of fiduciary duty by the directors of the Bank for International Settlements with regard to holders of its American issue, and violations of the Constitution by federal officials acting under color of federal law but wholly outside the scope of their legal or constitutional authority. Subject matter jurisdiction of the federal claims is based on 15 U.S.C. s. 15(a) (antitrust) and s. 78aa (violations of the Exchange Act), 28 U.S.C. s. 1331 (federal question), s. 1337 (commerce and antitrust) and s. 2201 (declaratory relief), and 12 U.S.C. s. 632 (international banking and financial transactions). Supplemental jurisdiction of the common law claims is based on 28 U.S.C. s. 1367…...
-END-

Chris Powell wrote a stirring recap of Reg in court, who represented all of us in our effort to right a terrible wrong:

11:26p ET Monday, November 5, 2001

Dear Friend of GATA and Gold:

The case of Howe vs. Bank for International Settlements et al. -- I like to call it Howe vs. All the Money in the World -- was roughed up a little today but survived its first day of hearing in federal court in Boston.

During 2 1/2 hours of oral argument, U.S. District Judge Reginald C. Lindsay dismissed two counts of the lawsuit involving securities fraud charges against defendant J.P. Morgan/Chase, and ruled that the plaintiff's method of serving lawsuit notice papers against the BIS -- by mail in English instead of by personal service in German -- was insufficient.

But the two dismissed securities fraud counts were secondary to the lawsuit's substance, and the problem with the lawsuit notice probably can be fixed by a pricey translator if the lawsuit is allowed to proceed.

The judge took the remainder of the case back to his chambers for drafting a written decision on the plaintiffs' motions to dismiss the rest of the lawsuit. That could take weeks or months.

The case was called at 2:30 p.m. in a beautiful and huge courtroom in the opulent new U.S. courthouse just across Fort Point Channel from gleaming downtown Boston. About 30 people sat in the audience section at the back of the courtroom, some of them GATA supporters, including a few who had come quite a long way to watch.

Plaintiff Howe sat alone at the counsel's table on the audience's left. At the counsel's table on the right sat his opponents, nine lawyers representing the BIS, Goldman Sachs, Deutsche Bank, J.P. Morgan/Chase, Citigroup, the U.S. Treasury Department, the Federal Reserve Board, and the New York Federal Reserve Bank. Behind them in the gallery were still a few more defendants' lawyers. The defendants' lawyers seemed to be smirking over their having had to come all this way just to confront a mere pro-se litigant, but they seemed to be smirking less when it was over.

About two-thirds of the hearing consisted of Judge Lindsay's questioning Howe about the case and its likely weaknesses. The judge was exceptionally well-informed about both the legal technicalities and the broader issues behind them. While he sought to move the hearing along, he also was pretty indulgent in letting Howe explain things.

The hearing wasn't really about whether the gold market is manipulated. It was about whether there is any basis in law for the suit. Thus it turns on legal issues and technicalities that will interest few of the partisans of gold and free markets -- issues like the very limited circumstances under which the government and government officials may be sued for official acts. But a few observations from this partisan may be of interest:

* The judge had trouble seeing in the lawsuit's claims possible evidence that the bullion banks had conspired with each other rather than with the federal government, other than what was called "parallel conduct" -- their doing the same things in the market at the same times. I thought Howe answered this well by noting that the bullion bank defendants had issued the overwhelming majority of gold and interest rate derivatives and essentially were themselves the markets for those instruments.

* The judge seemed almost obtuse in not understanding Howe's claim that there was fraud in the BIS' forcibly redeeming the shares of its private shareholders at less than fair value when there had never been any indication to the private shareholders that their shares could be taken this way.

* One of the lawyers for the government asserted the government's right, under the laws establishing the Federal Reserve Board and the U.S. Treasury Department's Exchange Stabilization Fund, to trade in gold in a way affecting gold's price. That is, he almost seemed to be claiming, on behalf of the government, the right to do exactly what the lawsuit complains of, without actually admitting that this was happening. (Whether he is right is exactly the legal issue the suit seeks to settle.) Howe was excellent in rebutting this claim. He argued that prior to 1974 Congress had fixed the gold price, but since then has left gold's price to the market. Thus, Howe said, any government trading in gold cannot constitutionally aim to fix the price, and certainly not surreptitiously. (I thought Howe got by far the better of this exchange, at least establishing a point worth litigating. Unfortunately I was sitting on the wrong side of the courtroom. We'll just have to wait to find out what the judge thinks.)

* Howe was just as effective in describing the unfairness of the BIS' liquidating its private shareholders without recourse and without arbitration. While the judge at first had wanted to skip argument on the arbitration issue, considering it examined adequately in the legal briefs, Howe managed to get his approval to make one point and then another and another, and the effect was very strong politically -- it gave the impression of ordinary small investors getting screwed by arrogant and powerful people. This happened to be the last issue discussed, so Howe finished strong, the other side weak.

When it was over, the courtroom cleared out quickly, and Howe was left alone at the counsel table packing his books andpapers into his briefcases. Forgive the editorializing, but I couldn't help but think of the scene at the end of the trial in that wonderful movie, "To Kill a Mockingbird," when Gregory Peck, playing the quietly heroic defense lawyer, Atticus Finch, does the same thing, seemingly alone -- and yet he is not alone, but rather watched by the oppressed people in the gallery with awe, admiration, and respect for standing up against the most hateful and vicious power. What I saw today was really not so different.

I won't guess what will happen with this case; anything can. Maybe the essence of what has happened today is that we could have lost the whole case but didn't. (I spent some time later with Howe and his business associate, Bob Landis, and, analyzing the day clinically, almost as a sport, they seemed ready to be hopeful.)

We still may lose the case on the technicalities in a few weeks and should be prepared for that.

But two things:

* Enough of the cursed cynicism that the courts are as rigged as the markets, that there is no fighting the power. We know some things about market rigging but there is no evidence that anything in court today was rigged. We got a day in court ifnot quite yet OUR day in court. And for all its faults this remains a country where one brave man pleading his own case can summon the representatives of all the money in the world and put the bastards in danger of having to answer for themselves.

* The lawsuit is an important front in our struggle for free markets and honest dealing but it is not the only front, and, win or lose here, our strategy and plan will be, in Churchill's words, KBO: Keep buggering on. Thanks to GATA Chairman Bill Murphy and Howe and those who have come to their assistance, we have discovered that the scheme against gold is only part of a bigger scheme involving interest rates and currencies to deprive the financial markets of any standards of value and to expropriate the world for the benefit of certain Wall Street interests and to make the world the slave of the U.S. dollar. This deeply shames Americans who understand it. That is why they will continue to oppose it as best they can regardless of what happens in court. It is an anti-imperialist cause and thus a great cause. And, as Churchill said, "When great causes are on the move in the world, we find that we are spirits, not animals, and that something is going on space and time, and beyond space and time, which, whether we like it or not, spells duty."

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

That was over three years ago and we are still following Churchill's advice. The judge eventually ruled against Reg – on technicalities only. Without getting into it all, he did not disparage what Reg presented to the court. His basic ruling was against Reg on a legal standing issue. He said a gold company ought to be the one bringing this case to court.

Which is just what Blanchard did. Learning from Reg, Blanchard went after Barrick and Morgan and left the US government, et al, out of it.

Here it is so many years later and "GATA’s Enveloping Horn" (more on that soon) is still on the march. Reg’s heroic effort is paying off in many ways. Certainly, when Barrick and Morgan settle, any reasonable person will know Blanchard had the goods on Barrick and Morgan. They will know GATA has been right all along.

More importantly, GATA is only warming up. As mentioned yesterday, GATA is on some roll. This just extends this "roll." We are going to get these Orwellian creeps and expose the bums for what they are. GATA’s credibility is soaring all over the world and we are going to utilize this increasing credibility to bury the bad guys. We have been at this longer than WW II lasted. No matter. We will stay the course until we win.

GATA asks you to help us to help you by writing your gold companies to support GATA by attending Gold Rush 21. Have you done so yet?

Back to the farce of a gold market. The CRB went bananas again today. It closed at 320.50, up 3.26. It has gone parabolic. Soybeans and the grains were on fire. Oil closed at $55.05, up ten cents and a new high for the move.

April CRB
http://futures.tradingcharts.com/chart/RB/45

How about them beans?

http://futures.tradingcharts.com/chart/SB/35

Gold?…. Suppressed by The Gold Cartel all day long again. Their obvious price-capping is beyond absurd at this point with the disparity between gold and commodity prices widening to ludicrously incongruous price points.

To give you some idea how desperate the pathetic Orwellians are these days, the gold open interest rose a whopping 10,862 contracts to 327,940. The funds are buying like no tomorrow and The Gold Cartel is stopping the price from advancing at all visible costs to maintain their fraud. Houston’s Dan Norcini sums up the OI situation nicely:

Hey Bill:
I suppose by now you've seen the open interest and volume figures for yesterday. Another whopping increase of 10,000+ new longs completely absorbed by fresh selling. In the last two days alone (Friday & Monday), a total of nearly 25,000 new longs have been added (24,878 to be exact) with the result that the front month gold price has gone from 443.40 as of the close on Thursday to 441.60 as of yesterday's close, a LOSS of nearly $2.00.

To put things in perspective, for the entirety of last week, 24,183 fresh longs were added; 10,167 of those added on Monday thru Thursday. That buying was able to move the price up from a close on Friday, March 4 of 435.10 to 443.40 on Thursday, March 10 or a $8.30 gain. In the last two sessions as I mentioned above, we have had MORE THAN TWICE the increase in TWO DAYS in open interest than the first four days of last week combined and prices have gone DOWN!

It should be obvious to even the most unbiased of observers that a determined seller is absorbing the entirety of the buying coming into the gold pit. No one, and I will say it again until the cows come home, no one in their right mind sells like this to maximize their profits when it is so apparent that speculators want to take prices much higher. If this is not official sector intervention, then let's just shut down the entire commodity futures markets because I have no idea who else could be so utterly stupid as to work crosswires to their own interests. NORMAL sellers LOVE HIGHER PRICES; whoever is doing the capping, and we know who it is, DESPISES Higher prices and is doing their infernal worst to bring them down.

As an additional side note - The recent peak in open interest was made back on November 22 last year at 370,786. We are now $18.90 below the peak price at 460.50 for the April contract and only 42,846 contracts shy of that open interest total. At the rate these clowns are absorbing the buying coming into the pit, we could conceivably reach that in a matter of 4-5 more days!
Dan

I can’t recall the funds adding so many new positions one day after another when the price dropped $5 on that second day. Normally, a number of funds would liquidate on such pronounced weakness. Word to me is the funds are drooling, delighted at the setback – looking at it as an opportunity to buy cheap gold. They are watching what the commodity markets are doing too. More importantly, they are cleaning up and making a great deal of money in those markets – money which is flowing into gold. 'Course most don’t realize they are playing in RIGGED CASINO, with the US Government and bullion bank allies prohibiting gold from rising no matter what goes on in the world.

One thing for sure. We have a giant move coming soon, up or down. While the odds and historic probability greater favor the bums, I think, as usual, up. However, we need some help for this to occur. In addition to a surging physical market, which we have, we need the funds (and all the money in the world) to overpower the crooks who are throwing all their Mafia muscle behind capping the price. What a showdown we have here!

No matter what happens short-term, a historic move to the upside is in the works. The Gold Cartel is huffing and puffing against nature. The end result is inevitable. The windbags are going to run out of available air as they are blowing against the winds of nature and, eventually, money from those all over the world who want to buy cheap gold.

The John Brimelow Report

Stunning Comex data

Tuesday, March, 15 2005

Indian ex-duty premiums: AM $7.32, PM $6.82, with world gold at $440.75 and $441.90.Ample, and adequate, for legal imports. Once again, the Indian Reserve Bank intervened heavily towards the end of the day to force the rupee down, so the afternoon data may well understate the strength of the Indian bid for world gold during their business day.

Reuters from Singapore this morning carried a story saying that

"…"buying was brisk in…Singapore and Thailand, said Ronald Leung, director of Lee Cheong Gold Dealers…"…Premiums for gold bars were steady at 60 U.S. cents…"

and stating that firm demand in this region contrasted with discounts in Hong Kong, reported as 20c compared to 30c premiums a week ago. Curiously, Shanghai premiums jumped $2 over yesterday – perhaps some bureaucrat hit the wrong button – the whole question of gold pricing in China looks increasingly odd.

The ECB captive Central Banks sold E89Mm worth of gold last week, which eyeballs at about 8.4 tonnes compared to 6.5 tonnes last week, an immaterial change in the context of the world gold trade.

World gold went out static in Tokyo – up 5 c from NY. Activity slumped; volume fell 47% to only equal 14,420 NY contracts and open interest was also comatose – up 175 Comex lots.( NY yesterday traded 59,118 contracts; open interest rose an astonishing 10,862 lots – 33.78 tones! – to 327,940.)

Yesterday, world gold had to absorb some liquidation from Japan. But on the opening in NY, a spirited effort was made to move gold up. UBS comments:

"Gold tried to fill the previous day’s COMEX closing gap by some fund type of buying. The transparent pre-opening market prepared the participants for this to happen and a lot of sellers met the demand right away."

Subsequently, gold was smashed down on steady selling. ScotiaMocatta observes:

"Good physical demand was seen near the lows and some fund buying lifted us to a close of 440.60/441.10."

If the Comex data is to be credited, 80 tonnes of net buying – 24,878 contracts or 8.2% – in the last two business days has resulted in a $1.80 decline in the April contract. It is difficult to know whether to be more impressed by the seller or the buyer.

JB

Don’t want to miss this one:

Is the Gold Price Being Managed?

By James Turk
March 15, 2005

http://www.kitcocasey.com/displayArticle.php?id=49