by Bill Murphy, Chairman
Gold Anti-Trust Action Committee
August 31, 2005
August 30 - Gold $430.10 down $6.10 - Silver $6.69 down 3 cents
New ideas pass through three periods:
can't be done.
*It probably can be done, but it's not worth doing.
*I knew it was a good idea all along !
...Arthur C. Clarke
The London AM Gold Fix was $436.15, down just 15 cents from Monday afternoon�s Comex close.
The Gold Cartel has played out its orchestrated script once again. What you have here on the Comex is a cabal owned Casino that rigs the roulette wheel and steals money from its patrons. It is nothing more than white-collar theft. Salute these bums for making money? Why, do you salute the Mafia? When caught, the Mafiosi are thrown in jail. Why should it be any different for the Gold Cartel crooks? GATA has caught them. The Comex has become nothing more than a racketeering operation and has been that way for many years now.
Yesterday MIDAS went into very specific detail on The Gold Cartel�s Sunday evening activities and how they were moving in to butcher the gold price with their ramping up of the dollar (when the news was overwhelmingly dollar negative). It has been so obvious what The Gold Cartel was trying to accomplish, I didn't think they could get away it for the fifth time in less than a year. Wrong on this score MIDAS.
Last evening the Working Group on Financial Markets and The Gold Cartel began chipping away again at the foreign currencies like they did on Sunday night in preparation for this morning�s rape of the gold bulls. With oil headed for the moon and the damage in the US Gulf catastrophic (and quite negative for the US economy), the cabal forces went in for the kill and moved further to flush out the heavily long funds. The cabal�s motive was obvious and they used their usual See Spot Run tactic again. Look kindergarten American public:
"Oil is soaring to $70 per barrel, natural gas is going bananas and commodity prices are making new 25-year highs. However, this is not inflationary and of no real concern, just look at the falling gold price."�
Is that retarded, or what? The sick part is this is just how Planet Wall Street will report all of this. In addition, they will blame the speculators for the collapse of the gold price. It is beyond absurd.
Yet, it is even more Machiavellian than that. The last thing the Orwellians want is the US intermediate and long-term interest rates to soar in reaction to soaring inflation in the US.
They want to prevent, as much as possible, an economic/stock market debacle � which could easily kick in due to recent developments. Not only will sharply higher interest rates hurt the stock market, they will bury the real estate market with energy prices surging. Were gold to have soared above $440, it would�ve confirmed the inflation scenario and affected the interest rate picture, perhaps dramatically so. With gold collapsing, they can point to how these recent developments are negative for the economy and thus justify LOWER rates, which is what happened.
Today's interest rate vehicle moves were most likely affected by early buying from the Caribbean Pirates, a.k.a. known as Fed monetization.
The ten-year note rose � to 111 22/32.
The 30-year bond gained 26/32 to 117 �.
Both are substantial moves higher (lower rates) with US inflation rocketing.
What no one is explaining is that if the case for rates to fall was expected US economic weakness, why is the dollar so strong? There is no plausible explanation for the euro trashing except the one put forth by GATA � meaning its lowering was effected to bash gold and keep investors from fleeing US financial markets. It makes no sense to have the dollar rally so much with such economic turmoil in the Gulf and US interest rates sinking as they are.
This morning the Working Group on Financial Markets took the euro down to 121.70. This induced heavy fund gold selling on the opening, turning most all the gold moving averages bearish. The spec funds sold their longs with a vengeance. Gold Cartel Mission Accomplished. That is all they had to do. Once the gold selling deluge was under way, the euro rallied back to unchanged. When gold rallied $2 off its low and threatened to recover, they sent the euro right back .25 points. Once gold closed on the Comex, the euro rallied again. It was clear as could be.
It is now 2:29 CDT and the euro is on its high of the day at 122.24, up .03, with gold closed. This information re the dollar and gold (yesterday) was compiled for two reasons:
*It clearly lays out exactly how The Gold Cartel maneuvered their scam and is an FYI for you.
*When the US markets fall apart the public (and Congress) will be screaming for an explanation of what happened and why. MIDAS will hand them all the sordid details (who and when) over a seven year period which led to the market collapses. It will be handed to the Congressional investigating committees on a gold platter.
Yesterday gold printed $440 and was ready to rocket. Had gold been close to $440 today the price might be $455 right now with what oil and commodity prices did. Instead the lowlifes orchestrated an illegal raid to make sure gold would be annihilated just when it should have roared.
Worth repeating from yesterday's MIDAS:
The bottom line for us:
The more reason for the gold price to go up, the more The Gold Cartel swings into action to make sure it does not do so. This latest obnoxious ramping up of the dollar, when all the news was negative for days, is proof of point.
Also as mentioned the past week, gold will not go through $440 like a normal market, because gold is a rigged market. It will blow through $440 or not at all. Today, it was the latter.
One other reason for The Gold Cartel moving on the longs without mercy is that THEY wanted to buy back their shorts, not wanting to be vulnerably short when the price of gold ought to be $1,000 per ounce. Without the fund selling, they could not cover without driving the price sky high.
This makes a lot of sense:
crude oil ($69.81, up $2.61 per barrel)
unleaded gasoline ($2.1875, up 22 cents and went limit up at one
natural gas (11.659, up .52)
copper ($1.7095, up 3.3 cents and right at its all-time high)
http://futures.tradingcharts.com/chart/CP/95The spot CRB closed at 336.21, up 7.98. The CRB is only 6 points from making an all-time high set in 1980.
By Alden Bentley (who refuses to give GATA the time of day)
NEW YORK (Reuters) - Prices for energy, cotton copper and grains surged on Tuesday, as skies began clearing on stunning losses to homeowners, business and commodity production a day after Hurricane Katrina devastated coastal areas of three Gulf states.
For the second day, leading indicators of commodity prices like the Reuters/Jefferies CRB Index (RJ/CRB) and the Goldman Sach Commodities Index reached new highs.
Katrina closed oil rigs, ports and refineries in the Gulf of Mexico, flooded New Orleans where millions of bags of coffee are stored and soaked cotton fields in the Delta when open bolls on many plants exposed the fibers, perhaps ruinously.
Yet this storm was just another in a long list of factors this year that have lifted raw materials prices to their highest since the end of the last commodities boom in 1980.
The RJ/CRB, which is based on 19 commodity futures and widely watched by economists and investors, rose to 333.45 Tuesday morning, led by a 5 percent surge in crude oil, which hit a record at $70.85 a barrel at the New York Mercantile Exchange.
But oil traders are even more worried about gasoline prices. Years of underinvestment in refining capacity already had U.S. drivers paying sky-high prices at the pump, and consumers now face more than $3 a gallon for unleaded gas.
"Right now the market is reacting to what cash gasoline prices are. They are up 60 cents on the Gulf coast," said a commodity trader at a large trading firm. "The products markets are the primary drivers of this."
Trading in NYMEX gasoline was halted when futures went up the 25-cent-a-gallon daily limit on Tuesday.
The New York Board of Trade late Monday declared force majeure for its certified coffee stocks warehoused at the Port of New Orleans, allowing delivery contracts to be broken until the conditions of the warehouses and the coffee located there can be determined.
The December contract for Arabica futures at the NYBOT was up 2.6 percent at 98.30 cents a lb at midday.
U.S. grain exports from the Gulf of Mexico were paralyzed. Barges laden with corn, soybeans and wheat were stranded on the lower reaches of the Mississippi River since Saturday.................
All of that, then regard what the cretins did to gold to bail themselves out of a number of jams:
http://futures.tradingcharts.com/chart/GD/A5While the dimwits in the mainstream gold world will continue to refuse to acknowledge the manipulation of the gold price and GATA, The Gold Cartel has finally gone too far. It won't be long until more and more mega-investors around the world realize what these bullies have done and buy up all the physical gold they can at these bargain-basement prices.
The gold open interest fell 926 contracts to 323,876. The silver open interest dropped 2247 contracts to 119,150. See below for some sort of rationale for silver�s confusing market performance of late.
Would like to touch on one more significant point. You might wonder what is wrong with this:
�They want to prevent, as much as possible, an economic/stock market debacle � which could easily kick in due to recent developments.�
Nothing if the PPT and friends were doing so in an extreme situation such at the 1987 stock market crash. The problem is they have gravitated (like all addicts to) to the point where they are intervening in ALL US financial markets on a daily basis, when they feel like it.
As a result, they have completely distorted the markets and eliminated investor fear. The way I see it they are operating like the Soviets of old. What did you think of their system? Look at what eventually happened to that system. It collapsed.
This is where US markets are headed, for the same reasons � helped by the fact that the US financial market press is no freer than that of the Soviet Communists. Our financial press will not even mention the name GATA, much less rationally present what we have to say and why.
Americans are not going to know what hit them! ...
© 2005 Bill Murphy
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