-Caveat Lector-

Kris:


FYI


Regards


xxxxx


**


The following letter was sent to Chris Powell, GATA Treasurer/Secretary,

from Martin Armstrong.


Dear Chris:


Obviously this latest bit of news posted by Bill has had its usual backlash

of inquiries and emails headed my way. Though this posting is interesting

and I would love to be free to comment on the current subject, I am

restricted by law. The receiver appointed by the court has also banned me

from writing and the US government now seems to have claimed that they now

control my First Amendment rights as well. I think things would have been

fairer if we didn't have a constitution.


In any event, I am at liberty to speak about subjects other than my own

case. To set the record straight, I have disagreed with GATA that the

depression of gold has been an organized manipulation on the part of central

banks. I have never denied that there is a cartel of "private" groups, funds

and individuals who do herd together to manipulate as many markets as they

possibly can.


At the start of the silver manipulation. I was flat. I had taken all profits

and closed out all short positions. Silver was trading around $4.29 when

PhiBro walked across the ring and handed to my broker an order to buy 1,000

lots of silver every penny down for as far as you could see. They

intentionally showed me the Buffet order. Later, Bob Gotlieb from Republic

Bank call me and tried to get me to join the manipulation. He said

"something big is coming down in silver" and when I asked who was behind its

he said "your friends in CT."


After being approached several times to join the manipulation, I reported to

our clients that "they" were back. I would not have used the term "they" if

it had been someone other than the same crew as in 1995. I was told that the

target was $7. I reported that information on our website. I was NOT short.

I knew what they were capable of doing. I left the country for my usual fall

tour. I was invited by the government of China to discuss the Asian Crisis.

I visited the government there in December of 1997. Upon my return, silver

was at $6.40 and everyone indeed had been led to believe it was me because

the orders were routed through Republic to give the marketplace the

impression that it was me buying the silver. In fact, it was Republic buying

the silver itself and moving it to London.


It is true that I was very mad. I did not like being accused of doing

something I did not. I would have to have been crazy to be short silver

after reporting to the world that a manipulation was underway and that the

target was $7 and then leave town for 3 months.


I was not short 700 tons of gold and never was. My own forecast called for a

June low and a rally into October. I made forecasts of hunreds of different

markets. I does not mean that I must also have a position in that market. I

have been bullish on stocks since the turn in 1994, but by law I am also

prohibited from owning any stock and have not owned anything since 1980.


Just because someone has a long-term forecast that disagrees with your own

does not mean that I must have been also short. I view the world from a

global correlation perspective and it just doesn't seem possible to achieve

a raging bull market in metals when stocks are the flavor of the month. Bull

markets are historically created when capital concentrates and that focus is

in the stock market for now. When that concentration breaks, capital will

then look around for the next great investment. That should be the commodity

cycle between 2002-2007 and perhaps extend out as late as 2012.


For now, either the metals make their final lows in 2001 or 2002. Either

way, they should be contrasted by a bubble top in stocks.


As it stands now, indeed the government intends to put me in jail tomorrow

because I am taking the 5th Amendment. I must do so to protect my defense

until trial. They are using a civil action of contempt arguing that I have

no 5th Amendment rights. I will go to jail tomorrow willingly before I bend

before this corrupt thing we call government.


Keep in mind one thing. If the government is intent upon silencing you, you

suddenly find that they are no better than Russia. They need no proof. They

strip you of your assets to prevent you from defending yourself. They attack

and threaten your attorneys with jail for contempt and try to take back any

money they have already spent even though it was unfrozen by a judge

previously. In other words, the US has become no better than Russia. They

even threaten your family, your employees and your friends. This is what

America is now all about.


They know my life has been threatened and quite frankly the government most

likely cheerishes the thought of me being killed while in prison. That way,

everybody wins. The truth will never come out and my name will be forever

tarnished as some two bit crook who defrauded clients but strangely never

diverted a single wire out of $3.1 billion.


Sincerely:


Martin A. Armstrong


-----
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
All My Relations.
Omnia Bona Bonis,
Adieu, Adios, Aloha.
Amen.
Roads End

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