Commentary - 07/17/09

Gartman vs GATA (Gold Anti-Trust Action Committee)

On August 16th, 2007, the Gartman Letter contained the following statement:
Gartman Letter: Gold rigging by central banks is only to be expected
Given the gold sales that are still permissible under the Washington Agreement, and given the lack of such sales in recent weeks, the central banks have more than adequate "ammunition" upon which to draw to keep gold from breaking to the upside. We suspect they shall use that ammunition if needed, not to nefariously keep gold from rising, but to keep it from rising in order to keep gold from sending a signal of panic to the world's investors in equities and debt.

If the Fed, the European Central Bank, the Bank of Japan, the Bank of China, et al. are prepared to push liquidity into the system, it is reasonable to expect them to sell gold in small or even large sums in order to keep gold from rising, for should gold push upward through these resistance levels at a time when stocks are falling, the public at large will properly take that as an ominous sign. Certainly we would!

"An ominous sign." Exactly!

GATA had been saying for eight years, prior to this Gartman letter, that governments must not deactivate tsunami warning bells.
Great harm will come to many if the gold and silver alarm bells are silenced.

Well, here's what happened since that letter: (GSPC is S&P 500)

So with this hindsight, why would Gartman continue to disparage GATA, unless the folks at GATA were doing something right?

The simplest reason may lie on Gartman's web site. (2nd page)

The Gartman Letter is a daily commentary on the global capital markets subscribed to by leading banks, broking firms, hedge funds, mutual funds, energy and grain trading companies around the world.
. . .
Mr Gartman has been producing his commentary on a continuous basis since 1987, and has taught courses on capital markets creation and derivatives for banks, broking firms, governments and central banks all the while.
So if these are his clients and we're out here trying to defend our future, our savings and our labor from being pilfered by those entities, then obviously Gartman wishes folks like GATA would simply disappear and quit interfering with their fleecing of the public.

Fortunately, for over forty years I've been able to collect and study OLD economic and business books, most prior to 1960 when serious efforts were begun in order to bring America down. Some books date back to the 1800s. The old books show that GATA's efforts are solidly based, and that we have no other choice than to re-educate ourselves. As stated in a previous commentary, There's No Place To Run.

We are indeed fortunate that folks at GATA and many other groups continue to speak their minds and help us fight the good fight.
There is nothing more patriotic.

Sometimes The Dragon Wins entirely too often.

2009 by Edward Ulysses Cate
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