Introduction: Bill Murphy grew up in Glen Ridge, New Jersey and graduated from the School of Hotel Administration at Cornell University in 1968. His senior year he broke all single season Ivy League pass receiving records and was Honorable Mention on the All-America Football team. He went on to become the starting wide receiver for the Boston Patriots in 1968. Bill went on to a career in the futures industry as a commodities broker. Early on he worked for Shearson Hayden Stone and Drexel Burnham before starting up his own introducing brokerage on 5th Avenue in New York. In 1998 he opened up LeMetropoleCafe.com, a financial market website geared to the gold market. In January 1999 Bill became chairman of the Gold Anti-Trust Action Committee (GATA) to expose the manipulation of the gold price by The Gold Cartel.
Daily Bell: Hello. It's been a while since we interviewed you. Give our readers the background on GATA once again to remind them how it came to be and what you've been doing.
Bill Murphy: The Gold Anti-Trust Action Committee (GATA) was formed in January 1999 by my colleague Chris Powell and myself to expose and oppose the manipulation and suppression of the price of gold.
Initially we thought that the manipulation of the gold market was undertaken as a coordinated profit scheme by certain bullion banks, like JPMorgan, Chase Bank and Goldman Sachs, and that it violated federal and state anti-trust laws. But we soon learned it was bigger than that. The scheme involved the U.S. Treasury, Exchange Stabilization Fund, the Federal Reserve, the Bank for International Settlements and other central banks … all making up The Gold Cartel.
GATA has held four international gold conferences:
We have been to Washington many times to press our case and have had meetings with the Speaker of the House, Dennis Hastert, Congressman James Saxon, Chairman of the Joint Economic Committee, Congressman Spencer Bachus, Chairman of the Subcommittee on Domestic and International Monetary Policy, Congressman Ron Paul, a gold advocate of note and a number of others.
There is much more, but that has been an essence of our thrusts.
Daily Bell: What is GATA doing right now? What's your most important current project?
Bill Murphy: We are always working on various undertakings behind the scenes. One of them is to try and wake up Germany about the true status of their gold holdings. The fact that US only sent them 5 tonnes of gold last year out of 300 tonnes supposed to be sent to them by 2020 ought to have set off all sorts of alarm bells. To send that small amount of gold is beyond pitiful. The odds are the gold was not sent because it is gone. The US has most likely sold most of the German gold as part of the gold price suppression scheme.
Most people don't realize the US cannot seld our gold reserves without an Act of Congress. But nothing prevents my country from swapping gold with another country and dumping their gold into the market.
Chris Powell went to Suriname recently to meet with top officials in that country to educate them how the gold price suppression scheme is damaging their country. While Chris was there, two major gold companies cancelled projects, meaning greater unemployment.
Chris is now off to Hong Kong to present at an Asian metals and mining conference.
Daily Bell: Do you feel vindicated by the investigations in England over the gold fix and public claims generally that gold is manipulated?
Bill Murphy: It is a step in the right direction, but only the tip of the iceberg. GATA's Adrian Douglas and GATA consultant James McShirley, as well as Dimitri Speck, have been all over that issue for years.
Daily Bell: We've had readers point out that the fix itself is not to blame for the manipulation, that it is a kind of red herring. Your response?
Bill Murphy: The Fix has been just one aspect of the manipulation. The BIG STORY is what the gold price suppression scheme is all about. It was a scheme concocted by The United States for reasons that have to do with the dollar, US interest rates and prestige. The US interest in rigging the price of gold is old stuff. Think way-back-when about the London Gold Pool. It is leading to the biggest financial scandal in US history, from a number of aspects. It will dwarf the Madoff and Enron scandals. You can take that to the bank.
Daily Bell: Explain for our readers again how the manipulations seem to work and why they are necessary from the standpoint of those who pursue them.
Bill Murphy: This week is a perfect example:
From GATA consultant James McShirley on Monday night…
Blatant cap job
Gold blatantly slammed at $1392.60, which of course is +1%. I didn't even get time to circle the number tonight.
Someday when time permits I'm going to compile the 1% capping data going back 5 years or more. It's just astonishing how many rallies have been killed there.
The Gold Cartel then went to their monotonous PLAN A hit in which they attack gold around 3 AM NY time. This led to their PLAN B mauling following the PM Fix, at which the physical pricing has concluded for the day, and finally they kept going with a PLAN C assault in the Access Market. These calculated plans have been articulated in my commentary for YEARS. The bums have been so predictable for a VERY long time.
That monstrous hit on gold has led to a price collapse of $72 in less than 3-½ days of trading … as of Thursday afternoon.
As a result of this attack, weak gold longs in the futures arenas have been forced to sell out their positions. Nothing new under the sun on that one. This is how The Gold Cartel and allies have made so much money over the years, even one 12-year bull market run.
Daily Bell: The recent move of the dollar against gold shocked people. How was that accomplished?
Bill Murphy: If you are referring to the dollar going DOWN since the last QE, while gold FELL from $1793 to $1182, it helps to explain GATA's case. During this same QE period, the price of oil rose 20% and the DOW went up 3,000 points. The QE was good for the goose, but not for the gander. NO ONE would have predicted this outcome 18 months ago before The Gold Cartel went into action.
Daily Bell: There have been various "banker suicides" recently. Are these related to gold manipulation?
Bill Murphy: Who knows? But it is wild. Another one was just reported, bringing the new total up to 11. Oops, I think it is 12 now. Nothing would surprise me related to what could happen regarding the gold price suppression scheme. My colleague CP is dead on when he says the US would rather reveal our nuclear secrets rather than reveal our gold secrets. It is THAT big a deal.
Daily Bell: Lawsuits are being filed regarding the gold fix. Should these be filed against JP Morgan instead?
Bill Murphy: The lawsuit issue is so complicated. JP Morgan is the Fed's bank and is also being investigated in eight or so market manipulation issues. They have recently been fined some $20 billion for wrongdoing, but their juggernaut continues on. Rip off people for that amount and make $100 billion in the process. They are not even blinking. Business as usual.
Suing JP Morgan when it comes to gold and silver is like suing the Federal Government. Why bother? They are in cahoots. Tied at the hip.
Daily Bell: What is the most common manipulation being run right now?
Bill Murphy: The Gold Cartel uses the silver market as a silent signal to its allies of what they have in mind for the gold market. Oftentimes it is imminent. Other times it is setting up a grander trade. The past few weeks when gold was flying, silver was unable to take out $22 on the upside, no matter what gold did. The silver trading action vis-a-vis gold was noticeably terrible. Then gold collapsed on Monday. The silver price action remained terrible all this week, no matter what any other market did. The Gold Cartel often communicates this way with those allies without using potentially incriminating phone calls or emails.
As I have maintained for over 10 years the 1% cartel rule is not only the most blatant, it is the most easily verifiable manipulation. IMO this is the granddaddy of all manipulative patterns. The insidious nature however goes far beyond daily capping. When you include not only the rally days when gold was stopped at 1% on a Comex closing basis, but additionally the days when the high tick for the day was +1%, regardless of the Comex closing price the figures are far more stunning. Recently on the evening of March 16 gold was knocking on the door of $1400, when it abruptly got capped at $1392.60, exactly +1.00%. What ensued was a swift $50 reversal down. That single 1% cap accounted for untold trading losses for gold longs, and a repelling of what at the time looked like an inevitable charge through $1400. Multiply this by hundreds upon hundreds of trading days over possibly 20 years and the 1% rule has been the leading edge to price subversion for gold investors. By never allowing a free market to determine gold's true rally point it has shut down hundreds of fair market price discoveries. The 1% rule is price control, plain and simple.
For a recent snapshot of how this has worked I have taken the 6-month period from October 1 of last year to the present. I included both the Comex closes that settled right near +1%, and the daily highs that were capped at +1%. I did the same for +2%. I then tallied all rallies that instead gained a random percentage between +1% and +2%, or between +2% and +3%. They are as follows:
+1%, closing basis or high tick : 29
+2%, closing basis or high tick : 9
Rally days with random percentages : 7
Incredibly, 38 out of 45 fall in either the +1% or +2% cap zones, with the majority, 29 in fact, capped at 1%. A whopping 84.5% of all rallies of at least $12 were in one way or another capped right at those 2 percentages! Game, set, match for manipulation evidence. As I have documented for years at LeMetropole this capping is so blatant I have been able to predict countless rally days in advance to the exact tick….
Daily Bell: How is it possible that with people lining up for gold in China and Japan the price remains where it is?
Bill Murphy: Because of The Gold Cartel. They continue to use whatever available central bank gold they have left to meet a huge supply/demand deficit. My bet is that supply is quickly running out. They are going to be forced to retreat again, as has been the case this year until Monday. Despite this week's success, The Gold Cartel is in trouble. The price of gold is going to soar this year. Eric Sprott and Jim Sinclair are both looking for $2,000 gold by year end. My bet is they will be right. Both gentlemen, each of whom spoke at our London conference, are legends for good reasons. Throw Sprott's John Embry in there, too. He is smart as they come.
Daily Bell: What should the price of the dollar be relative to gold – the "gold price," if you will? We've heard as high as $5,000 to $7,000.
Bill Murphy: According to numerous people outside of the GATA camp, the price of gold would be $2600 today if it had kept up with inflation. That does not include the myriad of factors which should put a major premium to that analysis.
Daily Bell: Does the cartel fear investigation at this point?
Bill Murphy: No. Why should they? There is no rule of law in America. We have no free press and no free markets. That is an illusion. I was interviewed by CNBC's Ron Insanna in February of 1999 and banned ever since once they heard what GATA had to say. Why we fought the Communists is beyond me. Why did so many brave Americans have to lose their lives in Vietnam and still are in other wars? What, so that the bankers and allies can get richer and richer? Al Capone might as well be running America.
There is a really good Bill Clinton quote out there in which he said he did not realize he would not be running the country when he became President. It is all about the money and power behind the scenes! THEY run the country.
Daily Bell: Why hasn't the SEC been more active regarding gold and silver market manipulations?
Bill Murphy: The SEC? You mean the same organization that Harry Markopolis sent facts to about the Madoff Ponzi scheme for TEN years? They are a joke, as is the CFTC.
Both those agencies are nothing more than entities who represent those rich and powerful in America. GATA has been taking on the rich and powerful for 15 years. The people in these agencies are bureaucrats. It is understood that if you really go after what these rich and powerful people are really doing, you will never get a decent-paying job in the financial sector, or maybe anywhere, because you get blackballed. Go with them and you are taken care of. Go against them and – well, just ask the CFTC's Bart Chilton.
Bart is a really good guy and made a huge effort to give the likes of GATA a fair shot. He is the only guy in his arena who answered emails from the public, at least as far as I know. Bart wanted to continue his role with the CFTC. President Obama said no way. Bart is history. The one guy who gave a crud will never be heard from again.
Daily Bell: Is GATA getting more press these days? Less blackballing?
Bill Murphy: Not really. While the manipulation issue has really gained traction because of "The Fix" thing, GATA is still a four letter word to the media. In 2010 Sprott's John Embry, CP and I met with Bloomberg gold reporter Claudia Carpenter in London. I met Claudia in May of 1999 in New York, but she has never mentioned GATA once. At least Claudia had the decency to tell us back then that her editors forbade her to say anything about the Gold Anti-Trust Action Committee.
Daily Bell: What's the status of gold these days regarding its physical allocation to central banks? Who has the most? The Chinese?
Bill Murphy: Nobody really knows anything when it comes to that question. Official reports say the world central banks have 29,000 tonnes of gold, but that is just not true. Much of that number has been lent out/swapped … and then sold. The central banks are lucky these days to have 10,000 tonnes left.
That does not include the Chinese who keep buying and buying and buying. Who knows how much they have accumulated by now? At my website, www.LeMetropoleCafe.com, I reported, via connected sources, that the Chinese were buying gold in 2003 and kept that reporting ongoing for five years. In 2008 they announced they had accumulated 450 more tonnes of physical gold. NONE of that gold was accounted for in the official supply/demand statistics of GFMS, The Gold Cartel industry sycophants. The sycophants offered no explanation.
Daily Bell: How much physical gold is in the hands of individuals, percentage-wise?
Bill Murphy: You got me. What I do know is that almost no one owns gold in America. It is a non-issue. There are some who are concerned about confiscation again. But from whom?
Daily Bell: Do we really know how much gold there is in the world?
Bill Murphy: No clue.
Daily Bell: Are we running out of gold?
Bill Murphy: Actually, we have more and more gold every day. The world has never had so much gold. What is important is that The Gold Cartel is running out of available central bank gold to suppress the price … and that gold is moving from West to East in massive amounts, led by the staggering buying of physical gold by the Chinese.
All that matters is The Gold Cartel running out of enough available central bank gold to maintain their gold price suppression scheme. IMO, they are gradually hitting the wall these days in their ability to do so. The big deal will be when they really hit that wall. We will finally see explosive days in both gold and silver.
Daily Bell: Why is gold so important?
Bill Murphy: Because it has been regarded as money and the store of value for, what, 5000 years. Time and time again fiat currencies have failed. The Gold Cartel considers it such a competitor to the dollar, they have been compelled to suppress, and manage, the price for a very long time … and especially during the years since GATA came into existence.
Daily Bell: Have you been threatened recently, or physically attacked? Wasn't whistleblower Andrew Maguire?
Bill Murphy: Yes, Andrew Maguire was attacked by a hit and run driver following my giving testimony on his behalf at an Internet-televised CFTC hearing on March 25, 2010. The driver hit two cars making his getaway and was tracked down by a police helicopter. Andrew's wife-to-be was also hit.
As for me, I had a weird experience about 13 years ago. Within a six-week period my car was stolen (found one month later, the day after my insurance company took the car … and it was found on a highway near me with cash still in the console), a fabricated email from my address was sent out that was loony, and I got beat up with a brass knuckles sucker punch one block from where I live (which is right next to Highland Park where President Bush lives). Nothing similar has happened to me before or since.
With all these bankers jumping out of windows, or dying for some reason, it might be disconcerting. But, the worst thing The Gold Cartel forces could do now would be to cause an "unfortunate accident" to me, as that would really open a can of worms. Are you reading this, Gold Cartel? Please pay attention.
Daily Bell: Have you been in touch with the CFTC recently? Are they finally giving more credence to you?
Bill Murphy: The CFTC cannot spell our name these days. Their five-year investigation into the manipulation of the silver price concluded last fall. They are beyond a joke. Market manipulation is a common topic today in the mainstream except for gold and silver. Yes, I know the subject has gone mainstream about the Fix issue, an important one, but it is Mickey Mouse compared to what is really going on.
Daily Bell: You told us back in 2010 that the "tide was turning." Why is it taking so long?
Bill Murphy: If I may, how right could that comment have been? Gold soared to $1920 in 2011. The tide HAD turned. The Gold Cartel then made a tactical decision to put their finger in the tide dike, and then planned their attack on gold last year. Gold was only off $130 of its highs after a year of capping before the bums coordinated the most massive attack on gold in history. Not one day went by that year we could not spot them doing something to further that campaign. I mean EVERY day.
Daily Bell: Give us an update on Ted Butler and silver. Silver is suppressed, too.
Bill Murphy: Ted has done superb work over the years. However, Ted puts the manipulation of the price of silver onto JP Morgan. GATA believes the US Government is behind it all.
Daily Bell: How have they been able to get away with it for so long?
Bill Murphy: The Gold Cartel represents all the money and power in the world. Anyone going against them is castigated as "conspiracy theorists" or worse. The financial market press counts on their money to support their news operations. They are bought and paid for. A joke! So is the gold/silver industry. They are a disgrace in that they let The Gold Cartel rule the day without making a peep … even as the low precious metals prices are making it difficult, or impossible, to make a profit.
Yes, they need bullion banks to extend them loans and cannot offend too many governments because they need mining permits. That is WHY any other industry would form a lobby organization to do their bidding, so they could not be singled out individually … like a World Gold Council. But, the WGC is in cahoots with The Gold Cartel. It is mind-boggling how corrupt that organization is. If I might say, I have been there and have spoken with them. Wish I could say more!
Daily Bell: Is the Internet helping to put pressure on them these days? Seems as if they have been so reckless for so long that they almost don't care.
Bill Murphy: They don't care. They are making too much money. Why should they care? We have no rule of law in America. The Fed and Treasury are backing their nefarious operations. The gold/silver CEO leaders just bend over. The World Gold Council is the anti-gold council.
GATA's Chris Powell, a veteran newspaper guy, has done a brilliant job exposing what The Gold Cartel is doing and has sent questions journalists ought to be asking The Gold Cartel. NONE of them ever do it. They are either too stupid or too afraid…
"The first rule of mainstream financial journalism and, particularly, financial journalism about gold is never to put a specific critical question about the monetary metal to any of the primary participants in the gold market, central banks. That is, nearly all gold market reporting is, by design, irrelevant distraction at best, disinformation at worst." … Chris Powell, Gold Anti-Trust Action Committee
Speaking of Chris, one of his great lines is that GATA is not a conspiracy group, but a fact-finding organization. His latest summary speech can be found here. It contains descriptions of and links to major documents supporting what GATA has to say.
Daily Bell: How close are we to seeing something major happen?
Bill Murphy: It is only a matter of time before the gold market blows up. I will be surprised and wrong if some explosive developments do not surface this year and send gold sharply higher to new all-time highs, or least approach them.
Daily Bell: We think the gold suppression players will hang in there as long as possible. We think, in fact, they are trying to inflate the markets for one last Wall Street Party, as we've been calling what we think is coming. What's your take?
Bill Murphy: You can count on us hanging in there because WE KNOW The Gold Cartel has kept the prices of gold and silver at artificially low prices. At our Gold Rush 21 conference in 2005 with the price of gold at $436, my call was that a gold price of $3,000 to $5,000 an ounce would be needed to clear the market. I stick with that.
Eric Sprott is looking at $100-plus silver. He will be right, as he has been so often for 40 years.
Fortunes are going to made, especially in the shares, for those who hang in there with companies that will still be around in the years ahead.
Daily Bell: We think in a year or two after this party that the entire system will be on its way to blowing up and that the plan is to install a global currency system complete with a global central bank. Your take?
Bill Murphy: There are a lot of savvy people out there talking about a "reset," which has to do with just what you are talking about.
Daily Bell: Give us your opinion on bitcoin. Good as gold? Do they have in mind trying to make bitcoin a true global currency for the masses?
Bill Murphy: I know some of the people promoting bitcoin in the early going. They are terrific guys and have cleaned up. Good for them. I have enough to deal with when it comes to gold and silver. As far as a comparison to gold … gold has been around in good standing a LONG time. Bitcoin is a newborn. Hope it works.
Daily Bell: What's going on with the Ukraine? Will the international tensions surrounding the Ukraine play into further manipulations?
Bill Murphy: During my role with GATA, the price of gold has never held its gains due to an international crisis. NOT ONE TIME! This is how obsessed The Gold Cartel is that gold never be seen as the safe haven, or go-to money play vis-à-vis the dollar. They are truly pathetic.
Daily Bell: Are Russia and China tired of the manipulations or are they a willing part?
Bill Murphy: Russia and China know what GATA knows and they have acted upon what we have had to say over the years. No hubris here. Let me explain…
I have had three conference calls with the Chinese Investment Corporation, a Chinese sovereign wealth fund. In addition, GATA has reported on official Chinese communiques, subsequently made public, which have made note of the gold price suppression scheme.
A GATA dispatch…
10:13p ET Sunday, October 3, 2004
Dear Friend of GATA and Gold:
Movements in the price of gold are sometimes "so enigmatic" and central banks and bullion banks are so involved with it that the gold market may be less than free, the deputy chairman of the Bank of Russia says.
The deputy chairman, Oleg V. Mozhaiskov, made the remarks in a speech at a meeting of the London Bullion Market Association in Moscow in June, but the LBMA and other participants in the meeting suppressed it, refusing repeated requests to release a copy. After months of negotiation, the Bank of Russia last week supplied the Gold Anti-Trust Action Committee with an English translation, which is appended.
In his speech to the LBMA Mozhaiskov cited GATA's work at length, and while not formally endorsing it, he showed that the Bank of Russia has been following it closely and knows that much more has been going on in the gold market than is widely acknowledged. Likening the central bank to a giraffe, Mozhaiskov quoted a poem well-known in Russia: "The giraffe is tall, and he sees all."
The central banker acknowledged that the great increase in the use of derivatives and central bank leasing of gold have depressed its price in recent years…
A year later one of President Putin's top economic consultants came to GATA's Gold Rush 21 conference in the Yukon. Andrey said it was the "finest conference" he ever attended. Gold was $436 and quiet as could be. Two days later the price took off and rallied for 9 months. Andrey then attended our London conference in 2011.
Daily Bell: What happens next? When does this finally end for gold – and for silver?
Bill Murphy: When The Gold Cartel runs out of enough physical gold and silver to maintain their market frauds. Make no mistake about it: This is a sanctioned criminal operation.
Daily Bell: If it unravels for gold will it for silver as well?
Bill Murphy: Silver is going to go bonkers! Even America's Mr. Gold, Jim Sinclair, is on the silver bandwagon.
Daily Bell: Will the perpetrators ever be caught and identified?
Bill Murphy: As mentioned, this is going to become the biggest financial scandal in American history. It will only become a scandal when the prices of gold and silver go nuts to the upside and various dealers are unable to deliver on their promises to do so. Even that might not be enough. But what will really bring the scandal to the forefront is if gold is going bonkers and our financial market and economic scene is in disarray. The public will want answers and that might force some serious discovery and more. Who knows? A banker or politician might even go to jail. Excuse me, but I just fainted.
Daily Bell: What's next for you and GATA?
Bill Murphy: We are ready and waiting to work on any angle to WIN THE DAY. Sometimes that requires patience as we look what to pounce on next to make a difference.
Daily Bell: Anything else you want to point out or publications you want to remind our viewers about?
Bill Murphy: Yes, I would like to thank you for your interest and taking the time to ask such appropriate questions. And if any of your readers are intrigued by all of this, please sign up for more info at the www.GATA.org email list. My colleague CP does a superb job covering issues related to GATA. And/or, sign up for a two-week free trial at www.LeMetropoleCafe.com to determine if my daily input can be of assistance.
This has been some battle, but WE KNOW what we are talking about. For those who can put up with The Gold Cartel nonsense, you will be very happy campers in terms of your investment portfolio in the years ahead.
Daily Bell: Thanks for your time. Keep up the good fight!
We've made a point about the ongoing Wall Street Party but it is important to note that all parties end. This era will surely be regarded as one of rampant – almost unbelievable – corruption. A time when a globalist cartel ran roughshod over decency and splintered honesty into pieces.
Murphy has been explaining this terrible time for a decade, at least – courageously too, given the mounting toll of dead people from major Wall Street and City firms that are piling up as various regulatory probes continue.
What we call the Internet Reformation is taking its toll, as we have long predicted. Business-as-usual is increasingly difficult in an era where one's actions are scrutinized in the alternative media on virtually a full-time basis.
There is something to be said for longevity. Many so-called conspiracy theories were easy to discount a decade ago when the Internet was coming into its own. But today, 10 years in, they are a good deal harder to dislodge. Could Murphy have been described as a crank 10 years ago? Perhaps, but surely not now. Year after year, he has pointed out the same maneuvers and documented the serial corruption. What was shocking once is routine today. What was unbelievable then is merely humdrum now.
First they ignore you, then they laugh at you, then they fight you, then you win. Murphy must surely be getting close.
People "get it" in a way they did not before. As the vastness of the corruption sinks in, as the reality of the criminality that pervades the system becomes evident, people finally surrender their preconceptions. The brainwashing of their education falls away. Even the mainstream media ceases to have the requisite effect.
The Internet has had time to mature and deliver a consistent message. Murphy, too, has been there from the beginning, fighting for an honest accounting.
And yet … the cartel remains unrepentant, obviously arrogant. But pride goeth before a fall. Murphy, given his stubbornness and persistence, will likely be there at the end, when the coverup finally unravels.
And he is correct. The unraveling will make Madoff's Ponzi scheme look like the grade-school machinations of a badly administered lemonade stand.