REPORTS, ETC

"Things that you expect to happen usually take longer than you expect; but, once they get under way, they unfold much more quickly." Doug Casey (International Speculator)

"The biggest conspiracy of all is the claim that there are no conspiracies."

The sordid trail of official government corruption in this rig job leads all the way to Alan Greenspan, Lawrence Summers [Chancellor of Harvard University, former Treasury Secretary] President Clinton and both Presidents Bush.The reason they rig the gold and silver price is to hide inflation and their artificial paper money's weaknesses. They do this by selling US gold bullion to crooks at JP Morgan Chase Bank [JPM]. These crooks then make paper gold and silver and sell it on the gold markets to keep gold down. The rest of the World is happy to buy this cheap gold while the US treasury is drained. Alan Greenspan says we have $11 Billion in gold...it is a lie. His own top lawyer, Mattingky admitted to swaps of gold in official transcripts at the Fed's FOMC committee meetting in Feb 1995 [Available at the link above].

"If governments should refrain from regulation..... the worthlessness of the money becomes apparent and the fraud upon the public can be concealed no longer" -----JOHN MAYNARD KEYNES

A boom engineered by monetary and credit expansion cannot last.If Banks/Enron transactions reflected "normal financing arrangement the US and world financial systems are at HIGH RISK.

Two Interesting Reports, (Not recommending buying their products but it's on the same report)Silver, Loose Money and bubbles

Have PMs in hand, do not trust your bank with everything. Banks can change the rules in a heartbeat, leaving you with funds locked up or with nothingYou should keep enough money in the bank to cover monthly expenses for say 2 months, then keep the rest at home in cash. Our banking system has rules in place to block access to your money in the event of an emergency. They can trigger these rules at a moments notice. You don't want your lifestyle to be effected by these rules. So, concentrate your excess funds in cash at home or precious metals at home.

Martin Armstrong the man with the evidence of Gold & Silver Price Manipulation...'There should be a public OutCry over his Government Incarceration to keep him "SILENT"

Where is Robert Rubin?They should put the entire Clinton Administration in jail for what they have done to the country.

What the government owes is ten times larger than official federal debtWhen combined with publicly held debt in 2001, the total burden equals $33.1 trillion, or more than 10 times the official debt measure-and 3 times the size of the nation's output.

I was hoping for one more "DIP" to buyU.S. and world investors have learned not to trust either government or corporate accounting practices. But they have not yet learned not to trust the fiancial and monetary structure which underpins it all. They will. When they do, watch Gold's smoke."

"We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied soon." - Robert H. Hemphill, Credit Manager of the Federal Reserve Bank, Atlanta, GA

Unconstitutional Transfer of Power, in 1913, Congress voted to transfer their control of our financial system to this private corporation, "The Federal Reserve""This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements, a private bank owned and controlled by the world's central banks which were themselves private corporations."

Bank for International Settlements"Freedom is greater than silver and gold"!

Which Is Worse, the fraud in Enron & WorldCom or that of Congress?"...as of 2001 the accumulated federal obligations to all people who've earned Social Security and Medicare benefits are $12.9 trillion for Social Security and $16.9 trillion for Medicare. Combined with the public and intragovernmental debt, the total federal debt burden is an unimaginable $35 trillion. That amounts to roughly $120,000 for every man, woman and child in America."

(Federal Reserve Chairman Alan Greenspan announced today ) ID#234220: Copyright © 2002 Pyrite/Kitco Inc. All rights reserved that the new fed policy of releasing unfounded rumors that don't happen is just as effective in removing liquidity from the system as are interest rate manipulations. The Fed plans to release monthly "horrible" predictions which will be followed up by a total "ALL CLEAR" several months later after a good roller coaster ride for in and out investors which in his opinion will draw the last nickel into the stock market and THEN they will really blow something up and remove any inflationary fuel once and for all. http://proliberty.com/observer/20020501.htm">The ill-named Federal Reserve Bank was created in 1913 by a devious and unconstitutional act of Congress controlled by foreign financial elite

It's really a great detailed list of the Power Brokers and Bankers connections threw out the corp world as to their control over everthing. Really a big spiderweb of control & manipulation over the peopleBlacl Out by major media on Silver

Why you own NOTHING you buyThe Bankruptcy of The United States INC

AYN RAND'S HYMN TO MONEY..............Antal FeketeThe Only Substitute for Gold Money is the Muzzle of the Gun

Free markey moneyMoney according to the Constitution = Gold

Barter has replaced the cash economy for many ArgentinesIs Ameica next?

The 5 Keys to a Long Term Bull Market in GoldAt some point in the career of this new long term gold bull market the huge short position (gold short spread derivatives) will impact the market and overvalue gold. That price could establish a new all time high for gold.

Propagand heats up - they all espouse the politically correct as our government operates in secret and lies to America.JP Morgan's derivative position increased from $63.413 billion in the fourth quarter to $71.174 billion in the first quarter. Citibank increased from $7.843 to $11,246 billion. 372 other banks were relatively unchanged. It's our suspicion the increases were implemented to stop the gold price from rising and to offset the hedge buybacks. We also believe the two gold bullion houses were representing the Exchange Stabilization Fund and its clandestine manipulation of gold prices. It is also interesting to note that the BIS had a large increase in derivatives from $203 to $231 billion. The gold is gone and JP Morgan, Citibank and the BIS may get paid in dollars if they are lucky. Sooner or later the scam will be exposed and heads will roll. We believe there is now no question that the US government has sold and or leased all its gold belonging to the American People.

"Major US government budget deficits loom. Tax cuts ganged up with the economic downturn to decrease federal (and state, county, and city) revenues. Then came the increases in government expenditures related to September 11: billions for bailing out airlines, federalizing airline security, and measures against bio-terrorism. Billions for the war in Afghanistan and payments to Pakistan and other countries to bolster the anti-terrorist coalition. "Faced with a plunge in tax receipts," reports the Washington Post, "the Bush administration will run out of ways to maneuver around the federal debt ceiling and could default on payments to bondholders on June 28….On that date, the government must make more than $60 billion in semiannual interest payments to trust funds, primarily Social Security. While that is a paper transaction, consisting of new bonds, it counts against the government's $5.95 trillion debt limit. Officials said the Treasury plans to start using a variety of budget tricks later this month to keep the government below the debt limit, but that will not be enough to prevent default on June 28 if Congress does not raise the limit."

Gary North's REALITY CHECK - Issue 149 June 14, 2002

MICAWBER'S AGREEMENT

Charles Dickens created a character for DAVID COPPERFIELD, Mr. Micawber. And macabre he was! He was a promoter, a blower of bubbles, a schemer, a spinner of dreams. Nothing ever quite worked for him as planned, but he was always hopeful. His philosophy of life has come down to us in his famous phrase, "Something will turn up."

In the 1935 movie, W. C. Fields played Micawber. This was an example of flawless casting.

Dickens identified the mind-set of the huckster, the man who substitutes schemes on paper for productivity. Dickens was convinced that capitalism is basically little more than a gigantic system of schemes. He saw the system as a bubble. He was wrong about capitalism, but he was correct about the central institution of capitalism, fractional reserve banking. This institution, from the creation of the Bank of England in 1694 until the present, has been the creation of government. It could not exist without The Agreement: "You license our monopoly over money, and we'll guarantee a market for government debt." I call it Micawber's Agreement.

The Agreement is at the heart of the modern world's economy. Only one thing has ever proven successful in exposing this agreement as a Micawberesque scheme: a rising price of gold. This is why, above all else, central bankers strive to keep down the price of gold.

The price of no other commodity attracts as much attention. The price of no other commodity is the subject of extended editorials in financial publications. Gold is not just another commodity, despite what the gold-haters in the media assure us. If it were, then they would not have to keep writing their articles that assure us that it is.

I realize that expert opinion can be awe-inspiring. I fully understand that when Alan Greenspan appears on Capitol Hill, Congressmen, Senators, and WALL STREET JOURNAL columnists are impressed by rhetoric that is matched only by Dwight Eisenhower's and Professor Irwin Corey's. (http://www.professor.irwincorey.com) But, as I listen to his presentations and read them on-line, I keep in mind an image of W. C. Fields. This helps me to put things in their proper perspective.

DISHONOR AMONG THIEVES

Prior to the outbreak of World War I in 1914, gold coins served as money for the masses of the West. Gold bullion is still money within the closed fraternity known as central banking. It is money for central bankers because they do not trust each other. They expect each other to cheat, to debase their currencies, to defer payment, to lie without embarrassment, and to stiff their brethren if they think they can get away with it on the cheap. They know from experience over centuries that debtors cheat creditors. The modern economy is based on massive debt, and every debt is denominated in a means of payment: a currency.

Central bankers want to be able to cheat the public. Cheating the public is the number-one goal of all central banking. The system has always rested on monopoly and deception. At the same time, the number-two goal of central bankers is to avoid being cheated by each other. These goals are always in conflict. That which best protects the central bankers from each other -- a gold coin standard -- also protects the public from central bankers.

In 1914, all central banks except the Federal Reserve System stole the gold that three generations of citizens who had dutifully and foolishly handed over to commercial bankers. The only people who were not big losers were those who had not been rich enough to open a bank account. The "best and the brightest" were the biggest losers. After 1914, shell-shocked European depositors trusted the words -- no longer redeemable in gold -- of the commercial bankers' official representatives, central bankers.

In 1933, Franklin Roosevelt acted as the agent of the Federal Reserve, and confiscated Americans' gold, hiking its price in 1934 by 75%, after the government was in possession of the stolen goods. The government turns over the stolen gold to the central bank. This is how the system has always worked. This is The Agreement.

Central bankers are like most other debtors: they want to be able to escape their creditors if bad times arrive. They want to be able to get out of their obligations. They did this in 1914. The FED did it in 1933. Central bankers cheated millions of depositors, who had naively believed the commercial bankers' original promise: "Invest your gold with us, and we'll pay interest to you. You can get your gold back on demand at any time (you dumb clucks)."

Central bankers are also like creditors: they don't want to be cheated by their debtors. They wanted protection. They trusted gold. So, having stolen the public's gold with the politicians' blessing, they created an inter-bank gold standard for themselves: the gold- exchange standard. It began in 1922 (the Genoa agreement). They extended it in 1944 (the Bretton Woods agreement). By these agreements, the Bank of England and the FED promised to pay other central banks -- but not the general public -- gold on demand. By 1944, the Federal Reserve System had most of the world's gold. The FED then persuaded the United States government to extend a promise to other central bankers on its behalf: "Invest your gold with us, the United States government, and we'll pay interest to you. You can get your gold back on demand at any time (you dumb clucks)." It worked like a charm. It always does. The market for U.S. government debt became the largest debt market on earth.

On August 15, 1971, President Nixon did to the world's central bankers what all of the central banks and their governments had done in 1914 to their equally naive citizens. Without warning on a Sunday afternoon, he revoked the promise and closed the gold window. "Suckers!"

From that time on, the price of gold in relation to any national currency was set by the law of supply and demand. But, then again, it had always been set by supply and demand. The question of the gold value of any currency is always settled by supply and demand. How much currency is coming out of some central bank? How much gold is being made available by suppliers? Will existing monetary policies be continued?

LIAR, LIAR

The larger the debt, the more tempting the lie. "You're check is in the mail." This is because the present threat of the future costs of defaulting on a loan pale in comparison to the present cost of repaying. Bankruptcy looms. Deferral now looks like a reasonable policy. If the debtor can defer the day of reckoning, he will be sorely tempted to do this. Bankruptcy tomorrow is a greater threat than losing access to the credit markets in a year. Maybe the lie will work. "Something may turn up."

If the creditors keep pushing for payment, the debtor's lie become obvious. At that point, the debtor admits the truth: "I can't repay." When the debtor is a sovereign government, nobody can do much about it. What's gone is gone. It was nice while it lasted.

Creditors may threaten to cut off future loans, but everyone knows that's also a lie. Latin American governments have been playing the default game with gringo bankers ever since the 1830's. Argentina is only the latest example. Brazil will probably follow.

Do foreigners still loan money to the United States government? Of course. Did our government stiff them in 1971? It stiffed their central bankers, but politically speaking, central banking is not a big issue. The public doesn't understand international economics and currency markets, so voters don't toss out governments because their governments have stiffed foreign creditors, including foreign central bankers. If anything, the Senior Liar of the existing government is likely to be re-elected. Nixon was overwhelmingly re-elected in 1972.

The public ought to care. It pays for losses sustained by the nation's bankers. Taxes bail out recently stiffed bankers. The central bank says, "If we win, you get to keep more of your money. So do we. If we lose, you will pay for our losses." Nice work if you can get it.

The way the public pays is through higher taxes, especially the inflation tax. Consider the year of the great confiscation in the United States: 1933. To match the purchasing power of the dollar of 1933, a person needed over $3 in 1971. That is, the purchasing power of the dollar fell by two-thirds. That's what President Roosevelt's unilateral abolition of the gold standard did to trusting Americans who had naively believed the government's promise to redeem the public's gold at $20.67/oz. This depreciation took 38 years. Suckers!

Ever since Nixon's unilateral abolition of the gold- exchange standard in 1971 -- refusing to sell gold at $35/oz to central bankers -- the dollar has fallen in value by almost 80%. It takes $4.44 to buy today what it took $1 to buy in 1971. This depreciation took 31 years. Suckers! See the inflation calculator: http://www.bls.gov

The falling value of the dollar is the irrefutable evidence of the effects of government lies. But hardly anyone cares. Everyone thinks he is getting richer. Through politics, the over-65 crowd has gotten a cost-of- living escalator written into the Social Security law. This is why the government uses the standard Consumer Price Index to calculate inflation rather than the more accurate Median CPI, which today indicates that price inflation is three times higher than the CPI says. http://www.clev.frb.org/research/mcpi.txt

UPDATE ON ARGENTINAWill this happen in the US when the markets collaspe & the dollar is devalued?

Gold prices are up 18 percent over last year, year to date, producing the best returns since 1987. Gold stocks are the best-performing group in the Standard & Poor's 500 index. The Philadelphia Stock Exchange Gold and Silver Index is up 63 percent in 2002. So much for Smart Investment Managers & Wall Street analysts"The anti-gold crowd. They just don’t get it. They would rather hold money losing stocks and other paper assets than hold onto gold while it is rallying higher. When Gold punches through $850 an ounce and the DOW is sitting at 5,000 - NASDAQ at 700, they will still be wondering what is happening while they fret over their vaporizing IRA's and 401K's."BB

(11/05/99; 03:17:20MDT - Msg ID:18379) Thanks for asking the question that's on millions of minds...HOW DOES IT WORK AND WHERE HAS MY WEALTH GONE?

Repo operations are where you traded your wealth in on some sure-bet paper investment strategy as recommended by a slick broker or CNBC commentator. When the laws of nature in a closed system regain the upper hand, and the card houses built to the sky on a leveraged foundation come crashing earthward, these repo operations are what the Fed uses when you can't make the next payments on your two SUV's and bass boat all parked in your three stall garage.

To start with, you must understand that banks have the distinct privilege to create money from "thin air" as needed to give to a borrower rather than to be limited by the fact that what "real" money they have is often owed to someone else that might choose to claim it back at any given time. This is what fractional reserve lending is all about, and arguably is the biggest culprit to the boom and bust business cycle. (Many varied opinions on that claim, you can be sure.)

Banks are limited in their ability to expand the money supply, however, by legal reserve requirements...a minimum percentage of the bank's liabilities to its depositors (bankspeak for money deposited with the bank by its customers, particularly money held in checking accounts) that must be kept on hand to meet any anticipated immediate demand of withdrawals. If the reserve requirement were 10% and the bank had one customer who had placed $10,000 in a checking account, the bank would be required to keep 10% of this ($1,000) in readily obtainable form (cash in their own vault, for example). So while this one customer "owns" this full $10,000, and has the ability to spend it at will, the bank also has the green light from congress to lend out up to $9,000 to a borrower, who might use it to pay for a remodeled kitchen.

Let's say the contractor takes his $9,000 payment from this borrower, and he also places it on deposit in a checking account with this same bank. The bank may then set aside 10% ($900) of this additional deposit and be free to lend out $8,100 to someone else. At this point, from the original deposit of $10,000, you can see that the bank now miraculously has $19,000 (called "liabilities" because the bank owes this money to its depositors) on deposit in two checking accounts. On the other side of the balance sheet, the "asset" side, the bank has $1,000+$900=$1,900 in vault cash as mandated by the reserve requirements, it has an outstanding loan written to that borrower (for his new kitchen) for $9,000 (which the banks expects to be repaid with interest), and at the moment, the bank also has the remaining $8,100 in available funds from the second deposit (after setting aside $900 from the second deposit of $9,000). So in total assets, the bank has $1,900 (vault cash) + $8,100 (available funds) + $9,000 (loan) = $19,000. Assets are seen to be equal to liabilities on the balance sheet. (Recall, only $10,000 was originally introduced into the banking system as "seed" money to start this inflationary process.)

The bank looks to that $9,000 loan as a profit maker for their own pockets because it gets to keep the interest when the loan is paid back. (Because the bank "temporarily" *created* 9,000 new dollars that didn't originally exist (inflation), the bank has an obligation to destroy (strike from the ledger) this $9,000 as the principle of the loan is repaid...deflation.) Clearly, the bank would like to make similar profits on its remaining $8,100 in available funds. And if these fund get redeposited with this bank, they will be able to yet further expand the money supply from that original $10,000 checking account deposit.

Let's say that there is no one else in town that wants to borrow money. The bank still wants to earn "profits" on these available funds, so the bank does the natural, next best thing and purchases U.S. Treasury bills that pays interest at 5.5% with a maturity of three months. Now, let's say that first depositor is reading this, and is now keenly aware of the shortcomings of this financial system. He decides to pull out $6,000 in order to swap it with MK for an independent monetary asset, gold.

The bank has only $1,900 in vault cash with which to pay this smart customer. Obviously, the terms of that $9,000 outstanding loan are such that it isn't going to be of any help in this matter. The bank must use its Treasury bill as collateral to seek a loan from another bank for two piles of money. First, the bank needs $4,100 to meet their vault cash shortfall on the $6,000 withdrawal. Second, the bank still has a total checking account liability of $4,000 + $9,000 = $13,000, so it must also borrow another $1,300 cash in order to meet the 10% reserve requirement on this remaining level of checking deposits.

That is a simple example of a traumatic turn of events for a bank. They don't net out much "profit" on their assets (outstanding loans and T-bills) when they are forced to be borrowers themselves from other banks, paying the Fed Funds target rate (decided by the Fed at the FOMC meetings) which is currently 5.25%.

More often, the adjustments needed to maintain reserves are small and short term. The reserve requirements are calculated on a daily average basis over a two-week reserve-maintenance period, from Thursday to Wednesday. Yesterday, for example, marked the first day in a new two-week period. In a more typical situation, let's assume one of our depositors withdraws or writes a check on $1,000. As the bank pays the $1,000 out of the vault funds, it is left with only $900 in reserves. However, that amount is only half of the 10% required on the remaining checking deposits of $18,000. They must make arrangements to borrow 900 more dollars to meet their $1,800 reserve requirement until such time as new deposits arrive from customers, or else until their 3-month Treasury bill matures (or perhaps they sell it outright on the open market for cash.)

This is where the Fed repo operations come in handy...simply put, the Fed is writing a short term loan. Repo is jargon for repurchase agreements. The two parties, the Fed and the bank in need, both agree to an effective yield that will be realized when the bank "sells" its collateral (in this case the T-bill) to the Fed for a set short period of time, and then "buys" it back at a slightly higher price that produces the agreed-upon yield. Time periods are short, from overnight, to the special 3 month period in use for Y2K liquidity needs. (Also by special concession for Y2K liquidity shortage is the Fed's willingness to accept "crap collateral," referred to in my news reports as "tri-party" operations because there is a potentially dubious third party in these operations that ultimately stands behind the credit-worthiness of the asset/collateral. The Fed isn't generally worried about the US Treasury as the third party behind T-bill repo operations, but when you start scraping the barrel on agency bonds and whatnot because the bank has already sold or borrowed against all of its prime collateral, well, you can see the recipe for disaster with the Fed left holding the bag on defaulted bonds if the bank fails to buy it back as agreed followed by the third party failing to honor their own payment on the bond.)

Now you know more than 99.995% of all Americans about much of the banking system, and about overnight (three-day, weekend, 7-day, etc) system repos in particular, although in truth, we only scratched the surface on repo operations, and Fed Funds, and discount rates, and a whole host of ways to play musical chairs to find and create money as needs. Some people say that gold is manipulated. Well, insofar as it is also a financial asset that must endure these same banking practices, and further, that it must endure the indignity of bogus "price discovery" through futures markets. That whole game finds its limit, however, where the call is made for the "virtual metal" (paper gold) beyond the ability of the system to deliver. Notice how the European central banks have backed safely away from the coming implosion of that degree of artificial-supply manipulation. On the other hand, The Tower submits to you that the dollar is subject to unlimited manipulation...like Quasimodo at a chiropractic clinic. There's no practical ceiling at which the artificial supply of the artificial dollar may be held in check, and worse, no practical floor at which its value may be held at any meaningful point above worthless.(In 2000 a 1950 DOLLAR WAS WORTH 5’)

A note on hyperinflation:

Hyperinflation in debt money systems is a result of a previous overexpansion debt collapsing. It is, paradoxically, a deflationary phenomenon. In a hyperinflationary currency collapse, the cause for the price rises is the injection of funds by the central bank. The reason such apparently foolish action is taken is the danger of a deflationary collapse of banking due to loan defaults. In the attempt to keep the banking system afloat, the central bank can inject enormous amounts of currency to replace currency that could "evaporate" with the accounts held at weaker banks. Once the price rise process begins, people hold less and less in currency and currency accounts relative to their incomes and expenditures. The reason for this is the tendency to avoid holding a significant portion of their assets in a devaluing medium. As a result, they are unprepared for income loss and for the rise in price of basic necessities for business and personal purposes. This causes deterioration in credit performance and eliminates bank assets.

The process is self-reinforcing as the speed of price rises causes lesser purchasing power to be held in currency and associated assets. Less currency results in a cash shortage and therefore will result in defaults. Defaults destroy bank assets and the banks must sell assets to obtain cash with which to settle. The defaulted loans are no longer a source of demand for currency, and so the value of the currency erodes further. The low cash levels cause a reduction in actual sales as inflation progresses. The central bank tries to replace lost funds from the banking system so as to maintain the ability of depositors to spend.

BACK TO THE PRESENT Tar & Feathers, Rope & Ammo

ER Forin 1 - 12:19:53 05/23/02 Thu

Silver Market Outlook for 2002 Looks Brighter - After Global Economic Downturn Affects 2001 Silver Market [The official press release from The Silver Institute.]

".....The U.S. Mint is now exploring legislative authority to purchase silver from the open market for its silver coinage programs....." [This will be really interesting, don't leave it too long guys]

".....In 2001, the structural deficit between fabrication demand and conventional supply (mine production and recycled scrap) was 89.4 Moz. This gap was almost entirely filled by the net government stock sales....." Silver Institute Release

"...America is not normal and is not composed of normal, rational, educated people. Therefore, we greedy, socialist Americans will just keep on buying the usual full complement of imported goodies, PLUS the higher-priced oil, and just rack up a bigger credit card balance to pay for it. We figure the government will do something to deal with backbreaking debt loads. That is the philosophy of America nowadays..."

from the "Mogambo Guru" over on the "Daily Reckoning" (http://www.dailyreckoning.com./) May 24,02

(5/23/02; 00:25:12MT - usagold.com msg#: 76343)

Banks report big increase in bad loans, foreclosures

http://www.uniontrib.com/news/business/20020521-9999_1b21banks.html

Nationwide, nonperforming loans – meaning loans where the borrower has stopped making payments – jumped 28 percent last year, rising from $48.8 billion in 2000 to $62.5 billion in 2001. Bad loans accounted for 9.4 percent of banks' capital and reserves at year-end, the highest level in eight years.

FOREIGN AID - Another shame for the IMF and other international donor agencies to STEAL taxpayers dollars

(05/21/02; 10:25:40MT - usagold.com msg#: 76130)

The Color of Money...Goldquest, All...

I find it very interesting that the U.S. is changing the color of their currency to protect against counterfeit. The following quote is taken from pages 22 and 23 of Mahendra Sharma's book, "2002 World Prophecies:"

Snippit: " After mid 2001, the Dollar will lose its charm against many more currencies in the world. The new century does not favour the U.S. currency very much in the long run. At the end of December 2001 the U.S. Dollar will try to move up, but will fail. During 2002, the Dollar will start a downward slide again and hit a low against major currencies of the world, and at the same time sophisticated counterfeit U.S. dollar notes will flood the market and that will bring additional instability to the Dollar because many countries will refuse to accept the Dollar note." Mahendra Sharma

Mon May 20 2002 10:25- ( do count on your July SSI) ID#269119: Copyright © 2002 Dave/Kitco Inc. All rights reserved

On June 28, the Treasury expects to blow through the existing limit and its current arsenal of stopgap measures when the government must make interest payments to the Social Security trust funds. If Congress hasn't raised the limit by then, the Treasury has said it would have difficulty sending out Social Security checks to beneficiaries in early July.

http://www.international.nasdaq.com/asp/quotes_news.asp?lang=eng&loc=HeadLines&URL=D:\www\Nasdaq\news\35\2002\05\20\200205200840DOWJONESDJONLINE000332.html&usymbol=9999&logo=False&companyname=Market

(05/19/02; 09:12:12MT - usagold.com msg#: 75986)

Global Tax, One World Gov & International Criminal Court

http://www.mediabypass.com/feature.htm EXCERPT:

The Global Tax Plan Extreme left and Communist forces at home and abroad are mobilizing to pressure the Bush administration to endorse even more foreign aid spending. Their ultimate goal is implementation of the Tobin Tax, named after the late Yale University economist James Tobin, who signed a letter before the November 2000 presidential election claiming that the proposed Bush tax cuts for the American people were too large. James Tobin wants higher taxes. His Tobin Tax is a tax on international currency transactions in the foreign currency markets. This has been called the world's largest financial market - between $1.2 trillion and $2 trillion a day is exchanged. Proponents call the Tobin Tax the "Robin Hood Tax" because it supposedly taxes the rich to benefit the poor. But it would affect ordinary Americans' IRAs, Mutual Funds and pensions - any vehicle with money that is invested abroad.

In a letter, the office of U.S. Ambassador to the United Nations, John Negroponte, said that, "The U.S. delegation opposed global taxation" and worked to eliminate references to that item in the final "Financing for Development" conference document. But the U.S. delegation was not completely successful. The final conference document includes language recognizing the value of exploring "innovative sources of finance." This opens the door for global taxes and a global IRS.

This means that the "last remaining superpower," the U.S., didn't have the power to resist international pressure for more foreign aid. This is a dangerous precedent. The American people have to understand that what is being proposed is a massive expansion of foreign aid to the tune of trillions of dollars.

In the U.S., welfare reform has reduced the number of loafers and deadbeats on the public payroll. But reform of the global welfare system hasn't even been attempted yet.

President Bush recently said, "We need to make sure that work is an integral part of any welfare reauthorization; that the cornerstone of a good bill understands that when we help somebody find work... that leads to more independence, more self-esteem, and more joy and hope." But the current foreign aid program creates dependence and more poverty. And now he wants to spend more on it.

Bush speaks of "conditions" attached to the aid but we don't know what they are. The odds are that the UN/NGOs themselves will continue to monitor and distribute the aid, reporting back that everything is going as planned.

Like addicts and freeloaders, the foreign aid recipients have to go through a "cold turkey" process of achieving independence on their own. At the same time, the global tax schemes have to be confronted and defeated.

Former UN Secretary-General Boutros Boutros-Ghali endorsed global taxes, including an international tax on airline travel. The U.S. General Accounting Office (GAO) in 1996 published a report on how both the Clinton Administration and the UN were promoting "alternative revenue raising proposals."

Many members of Congress were outraged and introduced various bills to stop it. But the bills never passed and the UN moved forward with its plans, which are reminiscent of King George's foreign taxes on the American colonists. That caused a revolution.

Today, the American people have to rekindle that revolutionary spirit and "throw the bums out" at the UN scheming to steal more of our income and spend it on global welfare.

UN promotion of a global tax dates back to 1994, when the UNDP "Human Development Report" featured an article by Tobin himself describing the idea. The same document included an article declaring:

"Mankind's problems can no longer by solved by national governments. What is needed is a world government." The UN intention is to become a world government with a world army and an International Criminal Court (ICC) that could put Americans in jail for various "crimes," including not paying their "fair share" of global taxes. The ICC will have universal jurisdiction, even over countries that don't sign or ratify the ICC treaty.

NEW MONEY = DEVALUATION OF THE DOLLARS = ENTER THE NEW WORLD ORDER !

Gold and the Kingdom of the Beast

* "According to the Order, after the crash (of the stock market) the first thing necessary to return prosperity to all will be a new currency. The dollar has to go. This is, for instance, the view held by the Aspen Institute which has solid ties to the CFR (Council on Foreign Relations), TLC (Trilateral Commission), and the United Nations through its membership. This group's financial supporters include the Rockefellers, the Carnegie Corporation, the Ford Foundation, and others." - Texe Marrs"

* "Historically, once a nation removes the link (gold standard) from its currency which had restricted its ability to expand its currency at will, eventually that fiat currency is destroyed and replaced." - Steven C. Kennedy

* "Get ready in the near future for what is being called the New Money to be issued… Everyone will be required to…exchange their green dollars for the new dollars which will be of a totally new color… Frighteningly, there is also going to be a small space left blank on the dollar. In fact, this is already the case in the currency of many other countries. Newer currency overseas in these countries has been issued in which a small blank space, a white area, has been left vacant on the currency notes… Nobody is fully revealing what this blank area is to be used for....."

* "In a shocking revelation, the U.S. Treasury has announced it will soon issue a new paper currency. The Wall Street Journal of March 19 reported that the Treasury will maintain the design of the old currency but will introduce 'subtle colors'…so what does this portend for the future of the U.S. Dollar? Devaluation!… The colored money is due out in 12 months or so according to the WSJ, but may be introduced sooner....."

* ".....the motive behind the issuance of this new currency is devaluation......we will soon see if the rest is true when the new currency comes out within a year."

(5/17/02; 22:26:20MT - usagold.com msg#: 75911)

The Shape of Things to Come...Multi Priced Gold Values

http://www.gold-eagle.com/editorials_02/salinas052002.html

EXCERPT: THE SHAPE OF THINGS TO COME by Hugo Salinas Price

It seems that there are two different possible types of dollar devaluation.

One is a coordinated devaluation, where the big players all agree on a new dollar value in terms of their own currencies. This new value would be hammered out behind closed doors - and ratified later at a meeting of the G-7.

It appears to me, from reading what we have all been reading on the subject of the problems in Europe and in Japan, and not to mention those of the inscrutable Chinese, that it would be extremely difficult for the major players in the world economy to arrive at any agreement to a substantial devaluation of the dollar in order to reduce the U.S. trade deficit, running at some $400 billion a year. The rest of the world is hooked on exports to the U.S. Consequently, reducing its trade surplus means killing off a substantial percentage of exports to the U.S. To put it mildly it seems to me very difficult for a group of nations to agree to that.

So, this first type of devaluation, a concerted and agreed-to devaluation, is hardly possible.

The second type of devaluation is your good old chaotic, traumatic devaluation, the kind that destroys the lives of enormous numbers of innocent citizens. The rest of the world has seen plenty of these devaluations in the last 25 years, but the U.S. has not. The American people do not understand what devaluation means, because they have not physically suffered from the phenomenon…as yet.

A devaluation of the dollar means the dollar will be worth less in terms of most of the other currencies in the world.

There is only one way that such a devaluation can occur: and that is, with regard to a superior currency, in which all currencies, including the dollar, are denominated. And that superior currency (the numeraire as it used to be called) is, of course, gold.

The Biggest Bear Market Rally of All Time! - May 20 - Elkins

http://www.gold-eagle.com/editorials_02/elkins052002.html

***************************************************

Gold is up - so what ? - May 20 - Leopold

http://www.gold-eagle.com/editorials_02/leopold052002.html

***************************************************

The Final Illusion - May 20 - McIntosh

http://www.gold-eagle.com/gold_digest_02/mcintosh052002.html

*************************************************** http://www.futuresource.com/news/news.asp?story=i4253766609932124224

"Substantial Technical Correction Possible In Gold" - J.P. Morgan

JPM Snippet:"J.P. Morgan technical analysts question gold's potential for further gains and declare that overbought weekly and monthly momentum measures suggest that a substantial correction will soon be inevitable....."

IMHO (JP MORGAN/CHASE - Hold 66% of the Metal Derivatives (paper gold & Silver) there is enough paper out there to control the market and JPM/C, Citibank, Hedged Mines, and other derivative holders stand to loose billions on upward price moves in the metals. If your buying metals by the dips & hold tight. If they push it down it will regain it's value because the big money funds are buying because of the falling dollar.) Also, Read the linked page on Derivatives.) ******************************************************

NEW MONEY - Another view

http://www.knoxstudio.com/shns/story.cfm?pk=MONEYCOLOR-05-17-02&cat=AN

U.S. currency going for gold and other colors (I wonder if it's a first step to join the Euro for a world dollar? Even before the Euro hit the streets the counterfeiting was in the millions. So I don't see the color change stopping the counterfeiting) ******************************************************

The War On Cash Gold and Silver will really put them in a panic!

(05/16/02; 16:03:12MT - usagold.com msg#: 75828) Debt Maturities

http://www.fms.treas.gov/bulletin/b12.html

Under "Public Debt", "Maturity Schedules . . . ." it appears that just the maturing of current debt is over 400 billion this year and next, with almost 200 billion between now and the end of September. YGM, Congress can't decide if we should be able to borrow more, and I'm wondering at what interest rate we're going to be able to refinance what we've got maturing.

I wonder if we keep screwing around with the retirees that sooneror later they are finally going to realize there's no money - period.

Another thing to consider, which I haven't dug into yet, but suspect - If Social Security is tapped out (and the fact that they may have to hold SS checks for an increase in the debt ceiling is a good indication)a goodly portion of this refunding over the next 6 quarters (+ our current deficit needs) is going to have to have to come from private and foreign sources.

I'm sure Japan is in good enough shape for a few billion, and the oil money is bound to be willing to invest in more paper, the funds have billions in spare cash - right!!!!

Maybe I'm just an excentric doomsdayer, but this is starting to appear to be the biggest cash flow crunch in the history of the world. ••••••••••••••••••••••••••••••••••••••••••••••••••••••

(5/16/02; 10:17:49MT - usagold.com msg#: 75808) Federal Debt

http://www.fms.treas.gov/bulletin/b12fd.pdf

Been doing a little research on our debt. Wasn't quite finished, but I think what I surmise may be revelant to a couple posts I've seen next door and Goldquest's link to the war on cash.

The above link breaks down the ownership of the public debt (treasury securities). Here's a summarry of my concern.

1991 Total debt: 3,465.2 billion

Privately Held: 2,360.6 billion

Federal Reserve and Government Accounts 1,104.6 billion

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

2001 Total debt: 5,943.4 billion up 2,478.2 billion

Privately held: 2,819.5 billion up 458.9 billion

Federal Reserve and Government Accounts 3,123.9 billion up 2,019.3 billion

Now, the privately held includes banks, funds, pensions, insurance companies, etc. and foreign holders. Foreign holders have increased about 700 billion in 10 years to about 1,216 billion. The rest of the privately held therefore have reduced about 250 billion.

Now a 700 billion increase in investment by foreigners is nothing to sneeze at and if reduced creates a very large problem, but the 2,019.3 increase by the FED and Government accounts really concerns me. I always thought that the FED held the bulk of our debt and issued our money - currency and digital. Now I'm not so sure, because on table OFS-1 it lists Public issues held by the FED from 1997 thru 2001 and it goes from about 436 billion to about 559 billion. the rest 2,468 billion (all most all are nonmarketable securities - book entries???) and held by US Government Accounts.

Now, it appears to me that the FED only permanently holds what may be the securities to back our hard currency. (Repo's are not included in the FED figure - those are swapped back and forth). So, what government entity(s) are holding nearly 2,500 billion of our debt in nonmarketable securities. I can think of only one, and that's OUR social security trust fund.

Foreigners have supported an increase of 700 billion, and what I think our retirement funds another increase of 2,000+ billion DURING THE GREATEST BOOM IN MODERN HISTORY. Now, with depression in the wings, the Euro block, etc., where is the money going to come from? The FED? I'm not so sure.

The rumors that the treasury is going to take over the money creation monopoly - if I'm thinking right bet on it. The FED is going to run from this as quick as possible. It doesn't appear they've stepped to the plate for anything more than our hard currency, and as foreigners cut back, other private investors already have, who in their right mind would take enough of our debt to support the deficit? For the last 10 years the government has been the lender of last resort to it's self. (Prosecute Enron???

I now may understand "the war on cash" posts seen here and next door this morning. Also next door someone picked up a rumor that there is a major banking change in the works. The piggy bank of retirement funds is probably gone (for good) and going after the cash economy is a last ditch effort that won't provide near enough money quick enough. Raise the debt ceiling? Won't do too much good if there's no money to borrow.

WHERE IS THE MONEY GOING TO COME FROM??? We've pilfered all we can and issueing debt for more doesn't appear doable, something has got to change real quick. More thought is needed, and I'm right at the limit of my ability to comprehend this mess. Thoughts anyone? ••••••••••••••••••••••••••••••••••••••••••••••••••••••

More on Derivatives. Derivatives and Speculation - The job of a derivatives trader is like that of a bookie once removed, taking bets on people making bets.

(05/14/02; 19:07:22MT - usagold.com msg#: 75694) There is One and Only One Reason Gold is not Over $400

It has to do with the government's desire to keep it suppressed... ...by the sale of US bullion reserve from the US Treasury. Why should the government care? Because they built a $16Trillion interest Rate derivative book that is in mortal jeapardy because if gold pops up the dollar gets hammered and then interest rates MUST rise to protect the dollar. So EVERYTHING the FED does is linked to gold. This is why they lie about gold so frequently...their very existence depends upon maintaining the charade that gold's price action is "Benign".

The real question should not be why gold went down today or any day but how much does the cabal have left? The answer to that question has up until now been very hard to crack. It is now clear that the famous quotation "Absolute power corrupts and absolute power corrupts absolutely" should be followed. By that I mean that the cabal has been operating [For 6 years] in a domain of absolute power over the markets. That power has waned. So too has the power over the gold markets.

Is it 1000 tonnes... 5,000 tonnes that they have left? I don't know exactly. However, I know they are on a rationing program...as if they were lost in an aircraft...conserving "fuel". ******************************************************

(05/14/02; 19:04:51MT - usagold.com msg#: 75693) Breaking News in Worldnetdaily

The US Government is really shuffling the papers now. Will be broke by June 28th. Isn't the ESF part of the gold reserves?

Snippit... Treasury's plans to tap the two trust funds, suspend issuance of state and local government securities, use its cash reserves held with large banks, and potentially resort to the Exchange Stabilization Fund and Federal Financing Bank for stopgap cash, will add a total of roughly $80 billion to the government's borrowing capacity. ****************************************************** ••HOT••

Remember the "Surplus" that turned into deficit?

Well the TRUTH is....it's 5 times what they said!

Here's the text of O'Neil Letter cited in John Crudele's 5/14 article

A MESSAGE FROM THE SECRETARY OF THE TREASURY

I am pleased to present the fiscal year 2001 Financial Report of the United States Government. The Report includes audited financial statements that cover the executive branch, as well as parts of the legislative and judicial branches of the U.S. Government. In five years, we have made considerable progress but still have much to accomplish in order to reach our goal of timely and useful financial reporting.

Accrual based financial reporting is critical to gaining a comprehensive understanding of the U.S. Government's operations. For fiscal year 2001, our results were an accrual-based deficit of $515 billion in contrast to a $127 billion budget surplus reported last fall. The primary difference between the accrual deficit and the budget surplus is the recognition of expanded military retiree health benefit costs provided by the National Defense Authorization Act, which was signed into law on October 30, 2000, and other actuarial expenses. In fact, these expenses caused the government's future obligations to its military and civilian retirees to exceed the federal debt held by the public. As with other future obligations of the federal government, only accrual-based financial reporting provides this information in context to the public.

The drive to produce financial reports that better disclose our activities to the Congress and the public continues. This year, for the first time, we are presenting two years of data to facilitate comparative analysis. In addition, we have added two new financial statements. The Reconciliation of Net Operating Revenue/(Cost) to the Budget Surplus (unaudited) explains the differences between the accrual and budget results. The Disposition of the Budget Surplus (unaudited) explains how the budgetary surplus was utilized. We have made progress toward the three goals I laid out last year.

For fiscal year 2004, agencies' financial statements are due 45 days after the fiscal year-end with the consolidated Financial Report due by December 15th. This accelerated timing will finally allow adequate time to have the financial statements considered in the budget process. The ultimate goal of the financial information in this report is for it to be used by decision-makers to improve the management and programs of me Federal government.

After completing our review, we are implementing a new process, developed in consultation with the Office of Management and Budget and the General Accounting Office, for preparing future financial statements which will enhance their integrity.

The Treasury Department continues to develop a govemmentwide accounting system that will greatly improve the agencies' access to data, reduce redundant data reporting, and eliminate reconciliations between the cash amounts shown on agency and Treasury books. I believe that the American people deserve the highest standards of accountability and professionalism from their Government and I will not rest until we achieve them.

Paul H. O'Neill ****************************************************** clues to a rising Euro and Pound Sterling -- offal, 01:19:06 05/13/02 Mon http://www.dawn.com/2002/05/12/ebr6.htm Bankers also trace the reason for fall of the dollar in the international market in the past one month to the Middle East crisis that prompted many Arab investors to switch over their dollar holdings into euro and pound. But they say only time will tell whether this change in the Arab investors attitude is going to last or it is just a temporary phenomenon. (Note- If they pull 5% out of the US the dollar is gone so is the US Market) ******************************************************

Are Derivatives the Bankers secret weapon to control the peoples value of fiat papers while stealing the Worlds gold and saying it is of no value?

A Inside look

Sharefin, 19:57:06 05/09/02 Thu - http://www.voy.com/65437/

A interesting look at answers to the Question - BOTTOM LINE WHY GOLD WILL RALLY ?

Will Gold Ever Rally? Yes Because: Unsustainable supply/demand imbalance ·1 Mine production has flattened out at 2,600 tonnes annually ·2 Scrap supply is flat at about 600 tonnes annually ·3 Current annual demand is about 4,900 tonnes (85% jewelry) and continues to grow ·4 Growing deficit of about 2,500 tonnes annually -5 Remaining gold - loans/swaps in the central banks have to be 14,000 to 15,000 tonnes. The Central banks have about 32,000 tonnes. That leaves about 17,000 tonnes left

Will Gold Ever Rally? Yes Because: Unsustainable short position ·1 Central banks have loaned gold to earn income on reserves ·2 Bullion banks have borrowed gold for their own account (carry trade) and for producers (hedging) and used derivatives to limit their risk and generate additional income ·3 Loaned gold has been sold into physical market and now is jewelry ·4 Size of short position ( estimated over 3 times available supply) cannot be covered in the derivative market all at once; rapid covering would lead to much higher gold prices

Will Gold Ever Rally? Yes Because: Unsustainable low inflation ·1 The gold price rises with inflation ·2 CPI inflation has been very low due to strong dollar (Asian collapse and investment flows) ·3 Aggressive interest rate cuts and monetary expansion to avoid recession/deflation by re-inflating. "The race to the bottom" ·4 YTD Fed liquidity injection = $1 trillion ·5 CPI inflation inevitable: the Fed must inflate away excess debt or see debt defaults ·6 War is historically inflationary

Will Gold Ever Rally? Yes Because: Unsustainable U.S. dollar ·1 Historically high U.S. current account deficit (> $400 billion annually) ·2 Deficit recycled primarily into U.S. debt securities ·3 U.S. now world’s largest debtor nation ·4 Foreign demand for U.S. securities declining and U.S. Dollar beginning major reversal ·5 Gold is only down in U.S. Dollars ·6 Since 1995 the U.S. Dollar is up 30% vs gold, 33% vs French Franc and 50% vs German Mark ·7 The Canadian dollar, French Franc and German Mark all buy as much gold today as in 1991

Will Gold Ever Rally? Yes Because: Unsustainable pricing for financial assets ·1 Investment demand drives the gold price ·2 Gold is counter-cyclical, investors buy it when financial assets are out of favor ·3 Ownership and pricing (P/Es) of financial assets are at historic highs ·4 If financial assets continue to decline, investors will shift to gold The ratio of the Dow Jones Industrial Average to the price of gold reached an all time high in 2000 and is now declining rapidly, reflecting a major turn in the relative values of financial assets and gold.

Will Gold Ever Rally? Yes Because: Unsustainable gold price manipulation EVIDENCE OF GOLD PRICE MANIPULATION ·1 Aggressive gold lending has filled supply/demand gap ·2 NY Fed gold has been mobilized when gold price is rising ·3 Timing of ESF gains/losses corresponds to gold price movements ·4 Audited reports of U.S. gold reserves show unexplained variances ·5 Fed minutes confirm officially denied gold swaps ·6 IMF rules on swaps revised but denied ·7 U.S. gold reserve recently re-designated as “deep storage gold” ·8 Statistical analysis of unusual gold price movements since 1994 indicates high probability of price suppression ·9 NY gold price movements versus London defy odds 10 Timing of huge increases in bullion bank gold derivatives consistent with gold price declines 11 Rapid decline of U.S. Treasury holdings of SDR certificates not explained

Will Gold Ever Rally? Yes Because: Gold is money again ·1 September 11 attack: The world is not the same ·2 Only gold is final settlement ·3 Return on gold is catching up to the dollar deposits ·4 Negative real U.S. interest rates (now 0.5%) undercut dollar, always gold bullish

Gold Price Now Poised to Move Higher? ·1 Falling interest rates are removing the incentive to short (hedge) gold, that could lead to a major short covering squeeze in the derivatives market ·2 Monetary inflation is on the rise ·3 Gold supply/demand imbalance growing ·4 Production is set to decline abruptly at the current gold price ·5 Veneroso estimates true gold equilibrium price of US$600 ******************************************************

(5/10/02; 00:32:01MT - usagold.com msg#: 75317) JPM...from that one cafe place...

"The Dinsa Mehta/J.P. Morgan story has begun to circulate in the gold/investment world and should have a dramatic effect on the gold price in the very near future. A different and very knowledgeable Canadian source called me this morning and said:

*You are correct.

*Dinsa Mehta is the fall guy for the senior J.P. Morgan Chase people who encouraged him to do various gold deals with Enron.

*Mehta was most likely given a golden parachute of sorts and told to sign a confidentiality agreement that he will say nothing.

*This is a clear sign that something is very wrong at Morgan. It can be likened to the Bre-X geologist falling out of the helicopter over Borneo. That told you something was VERY wrong at Bre-X.

*The J.P. Morgan gold derivative book is a complete mess. One might even be able to equate it to the esteemed Barings Bank situation in the future. That bank blew up because of one rogue trader.

Later today a completely different source called to say a conservative banker friend says a rumor is going around Wall Street there is derivative book blow-up and the likely culprit is J.P. Morgan Chase.

Another calling Cafe member told me that on a Bloomberg radio financial call-in show this morning, a woman asked the financial experts why gold went down yesterday when J.P. Morgan Chase was closing its gold derivative operations and had gold derivative problems. The woman would not let the financial commentators run from it and kept at them. The Cafι member who called wanted to find out who it was and go give her a big kiss.

Which brings me to some additional points on the Murphy/Mehta/Morgan matter:

*I stated that Mehta was fired. Yes, he is still there, but fired. When I first heard "the rumor," I was told it was "Enron" related. That becomes more plausible when you read the Congressional request for information from Mehta since 1997.

*Mehta's spiel to Wall Street is that he is leaving to spend more time with his family. When did he announce that? How long ago? Skilling left Enron in August to be with his family too. In the middle of August Enron closed at $40.35. How would you liked to have understood what was going on at Enron then and to comprehend the real significance of the Skilling retirement?

*Let us go back. The Enron analysts continued to tout Enron way after Skilling left. Enron was blowing up. Those that dared say there was a problem at Enron were fired or silenced. The stock plummeted to practically zero. Where are the gold analysts on the Morgan/Mehta story, or on the gold manipulation story? They are useless, just like the Enron analysts were.

*Bullion dealers are prejudiced to pitch the sell side, obviously because that is where their fee money is. No hedging, no business - except for project financing and futures/option business. If the bullion dealers make their big money pitching the sell side of gold, how can they be objective with their analysis? Sound familiar? Like Enron, the Internet farce and the NASDOG fraud et al!

* The bullion bank advice to gold producers and the investing public is similar to the stock analysts touting the stocks that the investment bankers make large fees on. Same thing. Gold just has not blown yet. The scandal comes after the disaster and the obvious conflict of interest will be revealed.

*J.P. Morgan Chase has made billions rigging the gold market during the gold bear market. They have structured all kinds of hedge deals with various producers. Now they are walking away. What do the gold producers do that are stuck with their complicated hedge programs that could blow up? Their advisor is gone!

*I promise you we have a derivative blow ups coming with some big hedgers a la Ashanti. A few Australians are in deep trouble. Chase got Placer to be more aggressive with their hedging the past two years. If I were a Placer shareholder, I would be down the throat of Placer CEO Taylor day and night.

*A strong suggestion to shareholders of hedged gold producers: Show them what Jim Sinclair wrote at The Matisse Table. Ask them to find out if what Midas/GATA says about Morgan and Mehta is true. Put them on notice that if the gold price explodes causing their hedge book to blow up and they did nothing about what you explained to them, you will sue their butts off and hold them PERSONALLY responsible. ••••••••••••••••••••••••••••••••••••••••••••••••••••••

http://energycommerce.house.gov/107/news/03072002_508.htm

THOSE BEING INVESTIGATED>>>>>>> Energy Commerce Inquiry MERRILL LYNCH, CITIGROUP, GOLDMAN SACHS, CREDIT SUISSE BOSTON, JP MORGAN CHASE, LEHMAN BROS, MORGAN STANLEY, DEUTSCHE BANK, STANDARD & POORS, MOODY'S, UBS PAINE WEBBER.

***Also noteworthy is the Bush Whitehouse is in full support of hearings/inquiries and of criminal charges of "ANY" Manipulations......ENRON is/was involved the the Gold Markets Manipulation scam as sure as there's sky above! There was just too much collusion for them to resist! (Maybe they have a better chance to cover up matters if they control the investigations?) ••••••••••••••••••••••••••••••••••••••••••••••••••••••

••••••••

HOT - JPMORGAN/CHASE- DERIVATIVES !

Midas update -- Shadowfax, 10:01:19 05/08/02 Wed

Le Metropole Members, Two sources in various parts of the world informed me today that J.P. Morgan Chase is closing down its gold derivative operations. It appears that GATA has run them out of town. I will have more on this in Midas tonite.

Just a thought on this - (I wonder how they can do that without making the tax payers pick up the tab? JP MORGAN controls 66% of the derivates (something like 41 BILLION DOLLARS WORTH AS OF DEC 2001) with more total paper then there is metal. Who will be "the dumbest in the guy in the room" to take the JP Morgan derivatives?

With JP MORGAN/CHASE CLOSING OUT DERIVATES the other main players like Barrick and AngloGold have to get out faster or become the principal patsy.) ******************************************************

(With JP Morgan in trouble who's taking up the slack?) ID#441257: Copyright © 2002 GoldFleeced/Kitco Inc. All rights reserved

AIG, Citibank, Goldman-Sachs? Here's a theory, the banksters keep selling while the producers keep unwinding. Government steps in and bails out the banksters and takes those other "extraordinary" measures to keep the POG down. Keep an open mind and remember the 30 year bond.

(Inflation) ID#304198: Copyright © 2002 Fatty/Kitco Inc. All rights reserved

If you want to know where inflation really went, you can look to the massive derivatives programs. There is a huge amount of money tied up into complex schemes designed to hold prices down and hide money creation. Ironic isn't it? (Oh yes inflation = devaluation of paper money by way of loss of buying power in paper fiat call dollars) ••••••••••••••••••••••••••••••••••••••••••••••••••••••

(05/07/02; 19:36:10MT - usagold.com msg#: 75136) Excerpt from MIDAS Report @ the Cafe.......JP Morgan Chase etc.

Everyone knows how to get there I'm sure........ ***Here's hoping this doesn't get me in trouble, but my excitement is too much to bear....This is part of the Cartel that cost me $350K & a wife....So s---- Them...

Excerpt...

J.P. Morgan Chase Gold Department In Serious Trouble

This morning I received a phone call from the best of sources in South Africa. The source has a friend who spent some time recently with two J.P. Morgan Chase senior bankers. The friend was told by the Morgan people that they have "lost control of the gold market and that the gold derivative department was a mess." The two Morgan people felt it was so bad that J.P. Morgan Chase (the bank itself) might not make it through the year. They suggested my source buy $330 Feb gold calls.

Separate from these two Morgan bankers, my source received the following from a futures and options broker in London who works for one of The Gold Cartel bullion banks:

*There is an investigation now being conducted on the gold derivative department of J.P. Morgan Chase.

*The man who ran the department was fired.

*This was discussed on CNBC Europe, but was called "still a rumor" by the CNBC host.

*It appears the conspiracy guys were right all along.

A Canadian source of mine later confirmed that the man who ran Morgan's gold derivative department had indeed left the firm. Morgan is putting a different spin on the reason for his departure. What you expect from a bunch of lying crooks?

Subsequently, another outstanding source informs me he hears Dinsa Mehta, former long-time chief bullion dealer at Chase Bank, was fired two weeks ago. Mehta was the one who went nuts when Reg Howe revealed their OCC gold derivative position a couple of years ago. He called in his accountants, etc, to find out how that happened. It was that discovery that led to GATA's Gold Derivative Banking Crisis document. Frank Veneroso, Reg Howe, Chris Powell and I presented that document to the Speaker of the House, Denny Hastert. Then, I delivered it to every member of the House and Senate banking committees the following day.

Too bad they did not pay more attention to what we had to say.

This is a bombshell and confirms what Midas and Jim Sinclair have alerted Cafι members to:

*The Gold Cartel is not in control of the gold market. The longs, led by Hung Fat and Dr. No., are teasing the Gold Cartel and eating their lunch, buying the dips.

*A gold derivative banking crisis is not far off.

*Panic gold producer buy-backs cannot be too far off either.

*The price of gold is going to explode.

*There is no telling what can happen to those bullion bankers and gold producers that have too much gold derivative exposure.

The Gold Cartel, Working Group on Financial Markets and the Fed must all be in a state of sheer panic over gold. There is a feeling by some in the GATA camp that they will orchestrate a massive bailout - like request the IMF to sell their gold. Anything is possible, but to do anything now might be sheer folly and tip their hand that GATA was right all along. Why should anyone care if gold goes to $400 or $500, much less $350? All that would do is be a boon for the sub-Saharan Africa, a bonanza for their economies. The Gold Anti-Trust Action Committee's credibility is very good in Africa. If The Gold Cartel comes up with some trumped up reason to sell gold, I shall try and see some of the leaders of the gold producing countries and point out what has been done to them and why. I shall refocus their attention on the following matter (courtesy of the Charleston Voice):

"GO GATA" "GO GATA" "GO GATA" & GO PHYSICAL!!!!! BUY ALL CPM'S GOLD & LEAVE NONE FOR THE CROOKS!

MORE TO COME WHEN IT'S POSTED - READ BELOW ON THE DERIVATIVES ******************************************************
http://www.gold-eagle.com/cgi-bin/gn/get/forum.html?date=2002%3A05%3A04%3A10%3A00%3A00">Gold-Eagle Forum

Dollar's draconian decline...look for $405 gold (8x8--) May 04, 10:06

The greenback has only just begun to fall. The major part of its decline lies ahead. Here are my reasons.

The first weekly chart shows overt negative divergence in the MACD vis-ΰ-vis the dollar index value, thus heralding further weakness going forward.

Furthermore, the two Fibonacci period moving averages (8 and 89 weeks) will soon cross downside, which will be the coup de grace for the buck.

http://stockcharts.com/def/servlet/SC.web?c=$USD,uu[d,a]wahaynay[pb8!b40][iut!La12,26,9!Lh14,3]&pref=G

The $64 question is WHERE will the greenback find its final nadir?

IMHO the cardinal cause of today's US economic malaise is the over-valuation of the dollar, which is the lingering legacy of the Clinton reign. In 1995 Clinton tapped Robert Rubin (the then president of Goldman Sachs) as Secretary of the US Treasury. It was no secret the quintessential representative of Wall Street fanatically favored a strong dollar. Consequently, subsequent monetary policy was to methodically and relentlessly institute policies to enhance the buck’s value. The momentum of these mis-directed policies fueled the dollar advance to its 121 peak in July 2001.

> NOW BUSH IS HOLDING THE BAG

A dollar too dear has crucified the US economy, and Bush is holding the bag. I feel certain the President has already instituted a covert policy via the Fed and US Treasury to slowly but surely push the greenback value to 'Pre-Rubin' levels...ie its value in mid-1995.

kimmer's chart displays this all too well. It is my considered opinion the dollar decline will come to bottom out in the neighborhood of 80 (it closed Friday at 113.54). This obviously implies the dollar will cascade another 30%. (see kimmer chart)

http://stockcharts.com/def/servlet/SC.web?c=$USD,uu[d,a]wicaynay[d19900101,20020504][pb50!b200][iut!La12,26,9]&pref=G

President Bush is staring at an alarming increase in UNEMPLOYMENT, and all its dire ripple effects on the American economy. THEREFORE, he is literally obliged to slowly allow the dollar to fall in order that US business can again be competitive in world markets.

Indeed a '1995-dollar' is the target sought by the Administration...and it appears to be right on course (having already shed 6.6% of its peak value).

http://stockcharts.com/def/servlet/SC.web?c=$USD,uu[d,a]wahaynay[pb8!b40][iut!La12,26,9!Lh14,3]&pref=G

Time Horizon to Reach 80 Goal - The US dollar has been forced lower 6.6% since early February. That equates to 2.2%/month. And if indeed the Administration's goal is a Dollar Index value of 80, it will take another 14 months to reach the 1995 target. July 2003 is when the dollar will have reached Pre-Rubin levels.

Meanwhile back at the Gold Ranch - The dollar drop will certainly be reflected in the POG. I am convinced the dollar decline will be matched by an equal percentage increase in the POG. From Friday's close ($312) I would expect the shiny yellow to peak at $405/oz by July 2003.

What will happen to gold stocks?

Naturally, precious metal stocks will reflect gold's rise in spades. Historically, the XAU rises 3-5 times the increase inthe POG. Consequently, we would be watching for the XAU to increase 90% to 150% from recent 79 close. That would put the Gold & Silver Index between 150 and 200. CURIOUSLY, THE XAU REACHED 150 in 1996 (at the very beginning of the Rubin affair).

http://www.gold-eagle.com/intra-day/XAUmy.html

This is the first time in memory we can count on the US Government to help goldbugs. ******************************************************

(5/2/02; 01:57:59MT - usagold.com msg#: 74728)

"Bush administration... could default..."

http://www.washingtonpost.com/wp-dyn/articles/A17885-2002May1.html

"Faced with a plunge in tax receipts, the Bush administration will run out of ways to maneuver around the federal debt ceiling and could default on payments to bondholders on June 28, sooner than previously expected, a senior Treasury official said yesterday" ******************************************************

(5/2/02; 01:50:09MT - usagold.com msg#: 74727)

British funds cut U.S. holdings, go euro http://biz.yahoo.com/rb/020430/markets_britain_allocation_2.html

LONDON, April 30 (Reuters) - British fund managers are shaving back exposure to U.S. assets in favour of the euro zone, driven by concerns that despite an economic recovery U.S. profits will not grow fast enough to justify valuations. ******************************************************

(5/2/02; 04:51:45MT - usagold.com msg#: 74733)

Dollar Stays on Defensive

http://biz.yahoo.com/rb/020502/markets_forex_2.html

Snippit:

LONDON (Reuters) - The dollar struggled to pull off multi-month lows against the euro and the yen on Thursday as doubts over the United States' commitment to a strong currency persisted.

"We have seen a complete sea-change in sentiment toward the dollar, and people are now just looking for excuses to sell," said Neal Kimberley, manager at Bank of Tokyo-Mitsubishi in London.

The greenback, already reeling on concerns over the pace of U.S. recovery, suffered one of its biggest one-day falls this year on Wednesday after U.S. Treasury Secretary Paul O'Neill failed to convince markets over his country's commitment to a strong dollar policy.

Black Blade: The USD must weaken in order to narrow the booming trade deficit. Exporters can not compete in foreign markets and at the same time the recession deepens. ******************************************************

(5/2/02; 04:14:21MT - usagold.com msg#: 74730)

the Indian gold market

http://www.321gold.com/editorials/walker/walker050202.html

Gold Shortage Now

George Walker - May 02, 2002

--It is absolutely fascinating to observe what is currently occurring in the world gold markets, as suddenly there seems to be a notable gold shortage. I estimate the shortage to be somewhere in the neighborhood of a 300 plus tonne annual deficit range. That is a rate of 25 tonnes per month. This shortage can be readily confirmed by monitoring the Indian gold market.--

Question is - Are the Elite Bankers hoarding it? ******************************************************

Robert Chapman - Gold Commentary -- Sharefin, 22:54:11 04/29/02 Mon

We also do not believe that gold is higher because of eminent inflation. It’s higher due to several other reasons. It’s the dollar. Other major countries are raising rates and the FED can’t. If it does we go straight back into inflation so the dollar will drop 5-15% this year, yields will climb due to less payout and gold will move higher. If gold breaks over $330 - $340 and ounce there is nothing to stop it until it hits $512 an ounce. We believe this will happen. We are still in stage two with two or three more stages to go. Soon large amounts of foreign capital in the US will move to other currencies and gold. When that move picks up steam the FED will raise rates. The recovery will officially abort and gold will rocket.

Japanese March gold sales were one-third less from the gain in February purchases but at 13.18 tons was equal to the strongest months in the past 15 years.

We believe the resignation of Bill Demchak, head of global structed finance and credit at JP Morgan Chase has a great deal to do with the inevitable collapse of the company’s gold derivative positions. We could be very close to a major scandal and a major breakout in gold.

One thing for sure England is through selling gold. They have about 300 tons left and they may well need that to join the Euro.

Barry Cooper at CIBC World Markets in Toronto favorite gold stock is the unhedged *Goldcorp (GG-NYSE). The Canadian producer’s shares are up 41% this year. Most of Goldcorp’s gold comes from the Red Lake district of N. W. Ontario, an area that has produced some 16 million ounces of gold since the 1930’s. Goldcorp’s average grade from its underground Red Lake mine was about two ounces per ton versus a worldwide underground average of .25 ounces per ton. Cooper estimates Goldcorp will be able to pull as many as six million ounces of gold from the mine. Production this year will approach 500,000 ounces. With Goldcorp shares, which sell for about 28 times current earnings, you are buying an option to participate in future gold rallies and on their expanding their reserves through discovery.

The bottom in gold has now firmly been set. The next phase will take us to the old high of $850 an ounce. You’ve seen the gold shares have led the way with outsized gains while bullion has simply set a bottom support level. The gains in shares during the next phase should be simply astronomical. We believe that *Agnico-Eagle (AEM-NYSE) and *Goldcorp (GG-NYSE) will lead the charge.

Mega hedger Barrick Gold announced a 3.5 million ounce gold discovery at its Alto Chicama property in north-central Peru. That is 110 tons of gold that might show up in six years.

Gold continues to hold over $300 an ounce as the Japanese, Arabs, Russians, Chinese and others continue to buy physical gold.

Gold funds were up 37% in the first quarter while the S&P 500 was flat. Gold funds are up 72% in the last 12 months. In spite of this, cash flows into gold funds are at a trickle. The investor is in denial. They’ll join us somewhere near the top.

The ESF, Exchange Stabilization Fund, continues to sell gold into the market to suppress its price. We’d guess soon they’ll have no more to sell. AIG is now the designated seller taking the dubious mantel from Goldman Sachs, Citigroup and JP Morgan Chase. That’s Mr. Greenberg and his CFR cohorts.

Eight months ago we recommended Kinross at $.36, then we recommended it again at $.49 a share. It recently traded at $1.72. As we said several months ago this is an anxious buyout candidate. We hadn’t said much about the company in the ensuing months because in that production category we felt AEM and GG were better quality long-term holds.

We get weary listening to the garbage that passes for news or objective opinion. Philip Klapwijk, managing director of Gold Fields Minerals Services said, it will take much worse political crisis to send gold higher. We do not quote GFMS figures in our publication because they are not worth the paper they are written on. We believe GFMS is in the back pocket of the gold manipulation cartel. This is just another effort to talk gold down. Every industry has its meatheads like GFMS, Barrick, Placer Dome and AngloGold. It’s difficult having the enemy within the gates, but we can overcome their derision.

The gold cartel must be having fits. Resistance at $305.00 and $307.00 have been broken. The Cartel is doing its best to beat back the charge. On the enemy front line is The Exchange Stabilization Fund, but it will be to no avail. The dollar has come unglued and it hasn’t even dropped much versus the pound, euro and Swiss franc. They will be back Thursday night in Asia and in Europe fighting to save their hides. All indices except the Dow have broken and the Dow will follow in spite of the intercession of The Plunge Protection Team. After $310.00, its $313.00 then $325.00 to $330.00. They even dragged out GFMS to trash gold, but that didn’t work. We then saw other comments that gold shares were overpriced by a newsletter writer. We guess being old and having been involved in gold and silver shares for 42 years gives you a leg up. We can remember when it was common for gold and silver shares to sell at 150 times earnings. Thus, we find the overpriced comment stupid. We are in a battle for our freedom and gold is the key to that freedom. It is imperative that gold moves higher because as it does it will expose the entire elitist scheme for world government. They can’t make their plan work at $500, $850 or $1,500 an ounce. It will expose the dollar as a fiat currency and all currencies not backed by gold as fiat. Who would want a world currency with no backing after seeing gold climb in a classic flight to quality? Make no mistake the stakes are enormous and we are at war. We shall win. When the public finds out what’s been done to them the carnage of the French Revolution will look like child’s play. Billions of dollars have been lost by investors due to this criminality. Right now there are so many factors that are positive for gold and silver it is overwhelming. Also, keep in mind that the dollar is at 115.76, support is at 114.64. The dollar is already down 10% versus a few currencies. The key currencies that have to break and thus far are only up slightly are the pound, euro and Swiss franc. If they break further 114.64 will be broken and the dollar will go into freefall. We also expect as the dollar falls interest rates will move higher as foreigners recognize there will be no further recovery and move out of dollar assets into other currencies and gold. Are the Japanese really going to sit idle as the Japanese economy and the dollar collapse? We don’t think so. They’ll spend more of those now uninsured funds to buy other assets, some $500 - $700 billion worth. The FED can’t raise interest rates because there will be no recovery and all those interest rate swaps have put corporations into short-term paper. This is a classic trap. While this plays out the demand for physical gold has exploded. That is in spite of the protestations of The World Gold Fantasy Council and GFMS. They are either bought and paid for by the elitists or they are incredibly stupid. How can the stock market stay at such lofty prices with unbelievably bad news? We recommended shorts on AOL, Tyco, Dynegy and many others months ago. They are collapsing, yet the market doesn’t go down. It doesn’t go down because the FED and our government are manipulating the market. We see scandal after scandal and the market stays the same. Now you know where your tax dollars are going. Wait until the reckoning.

NOTE- SEE Quarterly Derivatives Report below & other reports. (If JPM/CHASE fail with their derivates the hold fait system will come down because there IS NOT that much gold & silver in the world for delivery to cover the fait paper they hold. The equity market, stock market & the fait dollars will go under along with the whole banking system. Argentina is a prime example) ******************************************************

(04/28/02; 02:17:34MT - usagold.com msg#: 74473)

The dollar's precarious perch

http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3D5FJDI0D&live=true

Snippit:

So long predicted yet so elusive, the prospect of a significant fall in the US dollar is exciting currency markets again. Since it began to rise in 1995 the greenback has looked vulnerable to speculative attack but year after year it has proved immune.

Triggers for a dollar decline - the enduring Japanese trade surplus, the launch of the euro, the US recession - have come and gone. None has impeded its steady rise against the currencies of the US's trading partners.

That should not come as a great surprise: forecasting short-term currency movements has always been a mug's game. That the dollar has defied gravity for so long does not invalidate the view that it is overvalued. It simply means we cannot predict when it will fall. But fall it almost certainly will, for the US has spent more than it has earned for the past six years.

Sorry performance

US equity returns this year have performed worse than those in other industrial countries' markets; this sorry performance has not been mitigated by a rising dollar; fears regarding the fragility of US corporate profits in spite of high productivity growth have been realised; and US equities remain highly valued against all usual benchmarks.

If sufficient capital flows are not forthcoming, any dollar decline will be far from limited or orderly. Portfolio investment flows pushed the dollar ever higher. These can reverse just as quickly. If they did, dollar investments would perform considerably worse than equivalent assets elsewhere, redoubling any flight from the greenback.

Moreover, there is no doubt that the dollar would have to decline significantly to bring the US current account back close to balance. With exports representing just about 10 per cent of GDP, the US would need to increase their volume by 40 per cent to eliminate its 4 percentage point current account gap. But as it is by far the largest economy in the world, such a change would require a significant drop in US export prices - so the real increase in exports required would have to be larger and hence the dollar fall bigger. The same logic would apply, were the adjustment to take place via reduced imports.

Black Blade: The USD is falling and if it should fall rapidly as it should, then we could see the POG rocket higher. The conditions are ripe for a collapse in the USD. The strong dollar policy has hurt many US businesses and imports are so much cheaper and therefore displace similar domestic goods. The strong US dollar also hurts domestic businesses as the can not compete in foreign markets. As the article points out, US equities are grossly overvalued and these equities markets are falling causing Trillions of dollars of investor wealth to vanish into the ether. I would expect that the USD will fall in tandem as the markets continue to crash. The future looks “Golden”. ******************************************************

(04/28/02; 03:14:40MT - usagold.com msg#: 74477) 1970 >>> 2002

Having studied the statistical charts (long term) on display in the contraryinvestor's archives...inspired to some conclusions : The charts of ALL macro-economic data of past 30 years do show 2 very distinct periods : 1970 to 1980 (I) and 1980 and present (II).

I / Ten years of expansion. Year on year Growth, nominal + real. 1970 > 1980 was the culminative result of policy-options taken during the sixties. 1971 POG exploded (x 25).

II/ 1980 was the year where lots of all time highs were registered and the global managers realised that ALL economical policies had the effect of running things out of hand. They decided to change dramatically. They wanted ANOTHER kind of *growth* (and expansion)! A more genuine and sustainable growth ? A more disciplined expansion ? POG was *used* and confirmed the policies that were decided on.

Today we start realising that both periods (I and II) are nothing more than *periods*, where homo economicus has been experimenting with the up until now, known, economic policy options. And both systems don't work to our satisfaction. Both lead to deathpoints.

The reason for this is simple : We always want to grow too fast and much too unbalanced. Therefore a lot of artificiality needs to be build into the system. Too much management, over-engeneering to be compared with artificial insemination.

Much More than 25 trillion $ (last know total Bond-Debt) were necessary to arrive at a global GDP (nominal or real) of 40 trillion $. Now we are reaching another ATH with 5 $ on debt for each 1 $ of GDP expansion ! Very close to another deathpoint (surely not the last one).

Period *I* was inflationary growth, period *II* is/was deflationarygrowth...period *III* will go HYPERINFLATIONARY WITH DESTRUCTION in anticipation of a new set of economic policies/options to be started from ground zero. Global economy has to land (crash) and can't be refueled in the air whilst flying. The floating (flying) currency and Debt parts of the economic jumbo need complete overhaul/replacement. Hyperinflation is the diving trajectory of the plane.

This is exactly what GOLD has been waiting for ! Gold will be related to currencies and trade settlements in yet another fashion as the ones that preceded during the past milleniums. Gold will remain *ABSOLUTE* and everything else will remain "relative" to it. Ready to withdraw this statement, immediately, as soon as anyone can come up with another absolute (tangible) to wich can be refered to relativate everything else of Value. Gold is not oil !!! Gold is NOT consumed. Even land/water/air, can become worthless when intoxicated.

Gold has been put on reserve (not sacked/discarded) for the past 20 years and will soon be re-employed for that same old job it has been doing for millenia. THE ABSOLUTE VALUATOR OF ALL RELATIVES ! ******************************************************

Update on Argentina -

(4/30/02; 00:20:22MT - usagold.com msg#: 74586)

Chaos as Argentine banks re-open

http://news.bbc.co.uk/hi/english/business/newsid_1957000/1957796.stm

Snippit:

Argentina's banks and financial markets reopened on Monday after a 10-day emergency shutdown. The first day of business as normal was predictably chaotic. The peso surged almost 9% due to the cash shortage and rumoured action by the central bank to prevent collapse. And the leading stock market closed the day 7% lower as investors showed increased nerves about the corporate outlook in the recession-stricken country.

Today's Argentina looks very different, with unemployment rates topping 25%, millions now relying on barter to feed and clothe their families, and shanty towns multiplying. The once-prosperous middle class is now protesting in the streets, and 27 people have died in food riots and other disturbances. Inflation in April is likely to run at 10%, boosted by the effects of the plummeting currency, while the economy is likely to contract as much as 15% this year. Four presidents and five economy ministers have come and gone, and Argentines appear to see no sign of improvement.

Black Blade: This is only the beginning. Japan will soon follow, perhaps as early as next year. Japanese are being setup just as the Argentines in order to salvage the insolvent bankers. Oh those poor people, if only they took personal responsibility and held Gold and Silver and kept enough cash on hand for several months expenses. ******************************************************

http://www.occ.treas.gov/deriv/deriv.htm

JP Morgan -- Sharefin, 05:35:17 04/27/02 Sat

Quarterly Derivatives Report -

Of note is the Precious Metals derivatives exposure of JP Morgan.In the last quarter of 2001 their notional exposure climbed from approx 30 billion up to just under 42 billion.

During this period they have stopped reporting the exposure of Morgan Guarantee so presumedly they are pooling the gold derivatives under one house.

JP Morgan now controls approx 63% (up from 33% a year earlier) of all notional derivatives on gold. (Now some 41.7 billion out of a total pool of 66 billion - a year earlier they controlled 30.2 billion out of a total pool of 90 billion.) ******************************************************

Latest Market Reports from GOLD-EAGLE (vronsky) Apr 28, 07:06

Lessons from the NASDAQ Bust - April 29 - Zelotes

http://www.gold-eagle.com/gold_digest_02/hamilton042902.html *****************************************

Most Americans Are Stupid - April 29 - Stott

http://www.gold-eagle.com/gold_digest_02/stott042902.html ****************************************

The Power & Message of Gold - Aptil 29 - Vaughn

http://www.gold-eagle.com/gold_digest_02/vaughn042902.html ***************************

The REAPER Market Comments - April 29

http://www.gold-eagle.com/gold_digest_02/consensus042902.html *******************************

Behind The Curve - April 29 - Willett

http://www.gold-eagle.com/editorials_02/willettalway042902.html *********************************

Momentum Preceded Targeted Price-Break & Turn - April 26 - Inger

http://www.gold-eagle.com/gold_digest_02/inger042602.html ______________________________________________________

THE ABOVE REPORTS COME FROM -