Nexus - 0801 - New Times Magazine-pages

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THE SECRET GOLD TREATY SECRET GOLD THE TREATY Whichever side wins the financial war raging between the euro and the US dollar, the international bankers will be a step closer to establishing their global, cashless currency. n the last 18 months, a previously unheard-of action group has emerged onto the scene to dominate the front pages of the world's financial press. They are an inde- pendent group of financial experts called the Gold Anti-Trust Action group, or GATA. From a slow beginning, they have gathered a head of steam that has begun to rock the financial establishment of the entire world. The members of GATA are "gold- bugs"—a slang term for those who believe that gold is still king and that the money pow- ers should once again back currency with the "noble" metal, thereby eradicating fiat money. What is of significance about GATA is that its members have learned that the gold mar- ket is fixed and that the price of gold is artificially pegged below US$290 an ounce. Why is this important? Firstly, because the evidence GATA has collected emphatically points to the conclusion that the big Wall Street banks and their overseas kindred are operating a cartel. This is illegal in the USA. GATA calls the members of this cartel the "gold collu- sion crowd" and alleges that Goldman Sachs (whom they amusingly refer to as "Hannibal Lector") resides at the pinnacle of this group. A more important reason why you should take note of GATA is why its proponents say that the gold price has been fixed. Until fairly recently, gold banks could "lease" (borrow) gold from central banks at inter- est rates of around or below 1% per annum. This means that Goldman could, for exam- ple, borrow gold and sell it in the market, and the cash—the tens of billions of dollars it received in return—would be virtually interest-free. Thereafter, the collusion crowd could invest these cost-free funds anywhere they pleased. For example, they could buy US Treasury bonds paying over 6% interest and pocket the profit of 5%. Five per cent doesn't sound like much, but when multiplied by tens of billions of dollars it piles up. This is a typical Wall Street and international bankers' "wheeze". By selling assets belonging to the citizens of any given country and then ploughing back the cash they receive into the treasury market of that same country, the bankers are quite simply bilking taxpayers of billions of dollars a year. If you don't find this an outrage, I'd like to make an appointment to meet you and your wallet. But there is another angle that is even more alarming. Unsurprisingly, perhaps, this issue doesn't get into the newspapers despite its great importance. Those who keep abreast of current economic events will know that there is a bloody financial war raging between Europe and America. Who wins this war will determine who gains (or retains) control over the world's money during the next decades. It is a massive prize to be won, and the result will quite probably see global society becoming a vassal to the banking community. The European currency unit, the euro, is partly backed by gold. The US dollar is not. The Europeans plan to have their money fully digitised in the near future, resulting in a "cashless" society. The worldwide community of bankers is rather betrothed to the idea of digital money, it seems. After all, it was the boss of the hedge fund, Long Term Capital Management (LTCM), John Meriwether, who is said to have reached a rather private understanding with the Italian central bank. Meriwether had earlier been the senior bond salesman at Salomon Brothers, the Wall Street investment bank, until he got caught trying to rig an entire US Treasury bond issue in flagrant defiance of Securities and Exchange Commission (SEC) laws. Leaving the concrete jungle of Wall Street behind him, Meriwether set up LTCM in the leafy suburbs of Greenwich, Connecticut, leading Wall Street insiders to call it by David G. Guyatt © 2000 c/- NEXUS Office 55 Queens Road East Grinstead, W. Sussex RH19 1BG United Kingdom E-mail: goldbug@goldbug99. freeserve.co.uk Website: www.deepblacklies.co.uk NEXUS - 23 "GOLDBUGS" VERSUS THE GOLD CARTEL by David G. Guyatt © 2000 DECEMBER 2000 — JANUARY 2001