- To: Central Banks, Secretariats, Governeurs, Concerned
Others
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- For 44 months it has been the contention of The Gold
Anti-Trust Action Committee that bullion banks J.P. Morgan and Chase Manhattan
(now J.P. Morgan Chase) manipulated the price of gold in violation of the
anti-trust laws of the United States. The evidence is overwhelming, as
is their revealing financial track record of misbehavior over the recent
years. The following quote taken from an <http://www.nytimes.com/2002/08/25/opinion/25SUN1.html>article
below says it all:
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- By Bill Murphy Chairman - Gold Anti-Trust Action Committe
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- "Arguing against the bank in both cases is Alan
Levine, a lawyer at Kronish, Lieb, Weiner & Hellman in New York, who
hopes to strengthen the Enron case by arguing that there has been a pattern
at J.P. Morgan Chase."
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- The gold derivatives on the books of J.P. Morgan Chase
are enormous, their notional value last reported at $45.2 billion. Those
derivatives are derived from gold borrowed from central banks. It is GATA,s
contention that a good amount of those derivatives represent gold loans/swaps
that are used to manipulate the gold price and keep it at artificially
low levels.
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- According to CEO William Harrison (who was paid $21 million
last year), J.P. Morgan Chase is a funding operation. For the last 7 years
there has been no cheaper source of funding than gold loans. Gold is borrowed
from the central banks at .5% to 1% and sold into the physical market.
The proceeds from the sale are then used as the borrower sees fit. The
fly-in-the-ointment is the gold price. It MUST be kept steady, or in a
downtrend. Gold borrowed at $300 per ounce and paid back at $400 per ounce
would be disastrous to the borrower. Imagine if gold were to fly to $500!
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- Think of the money made these past 7 years by those who
were in on the gold fix. It is astronomical! In essence, they have had
almost free money to invest as they so chose. How would you have done investment-wise
these past 7 years if you could have borrowed money from your local banker
at a 1% interest rate?
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- Yes, you will see a J.P. Morgan Chase loan/ commodity
price manipulation pattern in the stories below. [to follow...Ed] First,
it was in copper. They ended up paying a $125 million fine for that caper,
but they made so much money in these schemes that did not stop them. They
graduated to the more lucrative oil/natural gas price-fixing schemes, etc,
with Enron.
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- That blew up.
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- That was not enough for Morgan and fellow bullion banker
Citibank, whose firm is now caught in another commodity scam of sorts:
that being telecommunications.
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- That is now blowing up.
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- How long is it going to take the regulators to get to
the biggest outrage of all, the gold scandal? A fraud that has hurt so
many innocent people around the world.
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- The irony is that unlike many of the other scandals,
the evidence of bullion banker misconduct has been in the public domain
for years.
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- Someday, probably after the price of gold explodes, the
asleep regulators will wake up. The gold scandal, the mother of all the
bullion banking frauds, will be front-page news around the world for many
months. The outrage will be like no other when the world realizes what
occurred, by whom and why.
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- --Bill Murphy
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