(Bill) They should get behind what JP Morgan Chase and HSBC claim as to be hedge positions and ask for specific evidence that their monstrous positions are really hedged and that they are not encumbered to other paper positions. They should be sworn under oath so that if it is proved they are lying, they go to jail.
(Q) What happens next? What would GATA like to see as the next event in this chain of activity?
(Bill) We would like the gold price suppression scheme to be exposed around the world, let the free market go to work, and have those culpable for this hideous fraud be punished. The Enron fraudsters went to jail and what they did pails compared to the gold fraudsters.
(Q) Do you think that when Thomas Jefferson was writing the Constitution of the United States he expressly wanted any Bank or government agency to have this much power over the world?
(Bill) It is exactly what he warned against!
(Q) When Mr. Christian, during the CFTC hearing said that Comex contracts could just be settled by cash, isn't that in reality and legal terms a default in delivery? Were you shocked to hear him make such a statement in such a casual manner?
(Bill) Yes, Adrian Douglas (on our Board of Directors, an international oil consultant and as smart as they come) and I almost fell off our chairs.
(Q) Before the March CFTC hearing, did anyone in your organization, GATA, even contemplate that the market was trading 100 times more in paper contract than there is actual metal in a vault? Aren't regular commercial banks like Bank of America required to keep more cash on hand than this ration? Don't they keep 3-5% in cash on hand, while the Comex is trading with just 1% metal on hand?
(Bill) Great question! Yes, Adrian has been jumping up and down about this issue for some time. Adrian has been saying it was 50 to 1. When Jeff Christian, of the CMP group and one of our most vocal critics, said it was 100 to 1 at the CFTC hearing, we both almost fell off our chairs again. Christian said that Adrian was too conservative. The funny thing is that Christian, who was speaking by satellite feed, didn't realize that when he was referring to the prior speaker (Adrian) that he was a GATA guy. It was a CATASTROPHIC blunder by Christian, who has been completely discredited based on his testimony, part of which was challenged by CFTC Chairman Gary Gensler. All of what I say is on the record.
(Q) Ok, so last weekend, the Average Joe American and his wife drove their SUV to Costco for cheap shrimp, had lunch at Applebees and on the way home stopped at Wal-Mart charging it all to their VISA card (28% per year interest)...they have no idea what you are talking about with "this gold price thing"! Basically, if I try to talk to them about it, they feel it does not effect their daily life. Give me two BIG reasons why Joe American and his family should drop what they is doing and make this their business.
Because, IMO, their standard of living is going to do down about a third and they should start making preparations for what is coming, rather than be surprised like they have been the past couple of years. GATA has been right about the direction of the gold price for the last decade, while most of Wall Street has been wrong. Their price predictions can all be checked out on the public record. They are still BEARISH, for the most part. At GATA's historic Gold Rush 21 conference in the Yukon, I stated (with gold at $436 per ounce) that it would take a $3,000 to $5,000 price of gold to clear the market in the years ahead. GATA made the same comment in our WSJ ad. THEY SHOULD BUY ALL THE GOLD AND SILVER they care comfortable with NOW!
(Q) Your job and Adrian's job at GATA, they are not million dollar a year salaries....why is GATA a passionate subject for you? Why do you do this?
(Bill) Why do people climb mountains? Because they are there. This is what Chris Powell, my brilliant Treasurer/Secretary colleague, Adrian, and I do. Not for nothing, once this story is fully reflected in the financial mainstream press all over the world, I believe it will eventually change the world. It won't be pretty at first, but it will lead us all to a better place.
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