11:55p ET Wednesday, February 28, 2001 Dear Friend of GATA and Gold: I'm stealing and sending to you below excerpts from GATA Chairman Bill Murphy's "Midas" commentary tonight, sent by email to his subscribers at www.LeMetropoleCafe.com, because it has important news and may encourage our side after a seemingly bad day. If you want to see all this stuff -- and make me feel less guilty -- visit the Cafe and consider a free trial membership. The price is right CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. * * * MIDAS COMMENTARY FOR FEBRUARY 28, 2001 By Bill Murphy http://www.LeMetropoleCafe.com Gold was bashed $3 in Asia last night as the Bank for International Settlements commenced a new lending operation via Dresdner Bank and others. That caused the one-month lease rate to plunge from 5 to 2 percent. Still, 2 percent is almost triple what it was two weeks ago. It is amazing lately how the BIS shows up wherever GATA pokes its head. The good news is that it shows how right Reg Howe is. Reg, the bloodhound, has the fox in his sights. Trading on the Comex today was furious, with about 49,000 contracts changing hands. The big buyer was Hannibal Lecter (Goldman Sachs) himself. That brought gold back all the way back from a sharp early deficit, as it closed down only 60 cents at $267.10. Word from the spot market was of a significant struggle between buyers and sellers going on all day. Indian gold demand is very firm, as the Indian government today revealed a decision in its budget to cut the import duty on gold to 250 rupees per 10 grams from 400 rupees, in a move to discourage smuggling. Silver was strong all day and finished at $4.46, up 5 cents. The gold bullish consensus is only 27, silver only 20. Both are extraordinarily low from a historic perspective. The CRB appears to have put in a near-term double bottom around 220. The short-term CRB technicals are very bullish. How about that foot-in-mouth Bear Stearns chief economist and former Fed Governor Wayne Angell! It was eat-crow time on CNBC, as he had to backtrack on his prediction of an interest rate cut. Fed Chairman Alan Greenspan killed that idea in his testimony before Congress this morning. This email from a fellow Cafe member may be of special interest, as I now can tell you for sure that GATA's revelations have reached the highest levels of the U.S. government: * * * Good day, Bill: I was watching CNBC on Tuesday, slightly amused at the incessant commentary from the talking heads over the "imminent" rate cut. But this is not the reason for my e-mail. Yet again yesterday they were interviewing Wayne Angell from Bear Stearns, trying to pin him down on a date for the rate cut and/or any other "bullish" info he could divulge. In the couple of minutes he was on, Angell basically said that the Fed has the power to create the "V bottom" recovery in the economy by ensuring that ample liquidity is provided to the markets. His rather crude definition was that if enough liquidity was pumped into the economy, the "value" of everything from equity prices to house prices would rise -- though he did fail to mention that this would be relative to a falling dollar -- including a broad spectrum of commodity prices..... Insert here various inane questions from CNBC and a reiteration of above info by Angell.... And now for the shot.... Just before CNBC cut away and in Angell's last comment, he said that in such a high-liquidity environment, the price of everything would rise.... INCLUDING THE PRICE OF GOLD. The emphasis was added by him, not me. Now why even mention gold, seeing as the likes of him and all the other establishment members seem to go out of their way not to mention that four-letter word? Was this the first in a series of warning shots that the price of gold is about to be set free? I don`t know, but just thought i would bring this interview to your attention in case you missed it. * * * Wayne Angell has been as vociferous a gold basher as any I can recall for six years. Now he has changed his tune. There is no doubt in my mind that he has been told that the gold game is changing -- forever. -END- Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/