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South Africa, COSATU and Shaka

December 20, 2000

It was not long after the Gold Anti-Trust Action Committee was formed almost two years ago that I sent out a missive elucidating GATA's strategy to defeat the Gold Cartel:

"The Gold Anti-Trust Action Committee has devised a strategy to take on and defeat those who are colluding to suppress the price of gold...

"GATA's strategy is patterned after that of the great South African Zulu Chieftain warrior, Shaka. As a youth, he was shunned by his own people and went into exile. But, he returned to become a leader of the Zulus and devised a plan to conquer their adversaries. Previously, wars between tribes were more for show; there was no real fight. It reminds us of what is going on in the gold industry today. There is a lot of complaining but no one is acting against those in the industry who are helping to ruin it.

"We are going to change that.

Shaka devised a strategy called "The Enveloping Horn." His attacking Zulu warriors massed in a diamond-like formation. The piercing point of the diamond struck first. While the enemy engaged in battling the Zulu warriors at the point of the diamond, the diamond's left and right flanks bolted out to the sides and enveloped the enemy in the shape of a horn. Before the enemy knew it, he was flanked, surrounded, confused, and beaten."

GATA's original version of this "Enveloping Horn" strategy was first to take on the Gold Cartel head on with legal firepower. Our left flank was to expose the gold scandal via the press and our right flank was to encourage the gold producers to support us and urge them to cut back on excessive hedging that was putting pressure on the gold price.

It is now time to turn up the heat on the Gold Cabal by implementing GATA's latest version of "The Enveloping Horn" battle tactic by moving against the gold market manipulators where they are most vulnerable:


The economy in South Africa has been severely effected by the low gold price. Not only are over 100,000 miners out of work, but the low price has effected hundreds of auxiliary industries that are not needed at the moment. It is a daisy chain of misery.

Worse, there is a growing, terrible HIV/AIDS problem among the black population in South Africa as well as in other poor gold producing counties. There is just not enough money at the moment to deal with this tragic problem effectively.

The tragedy, and it is a scandalous tragedy, is that this should not be. If it were not for the Gold Cartel, the gold price would be north of $600 per ounce! South Africa and the other gold producing countries in Africa would now be experiencing a boom.

Zulu warrior Shaka was brutal because he needlessly killed so many innocent people. Yet, indirectly, the sanctimonious BULLION BANKER BUTCHERS are responsible for far more deaths than Shaka. That will become clear when the Gold Cartel is defeated and the gold price explodes. Blacks in African countries, and their brothers and sisters in the US, will become enraged that the present US Administration and NY bullion banks made billions why many of them died for lack of funds to treat deadly infectious diseases.

It was not that long ago that I met with New Jersey Congressman James Saxton, Chairman of the House Joint Economic Committee, in Washington to encourage him to do what he could to defeat the IMF proposal, backed by President Clinton/Rubin/Summers, to sell its gold to fund debt relief for poor countries.

As Deutsche Bundesbank President, Ernst Welke said in Central Banking magazine recently:

"It is somewhat disturbing that, on the one hand, we have the poverty-reduction plans of the World Bank and the IMF and yet, on the other hand, we damage poor gold producing countries by selling gold and reducing the price."

There was vast criticism of the IMF gold sale proposal at the time.

"We are unalterably persuaded that selling IMF gold reserves would adversely affect the very countries the (Clinton) administration intends to assist and further damage the U.S. domestic gold industry," Jesse Helms, a North Carolina Republican, and Sen. Chuck Hagel, a Nebraska Republican, said in a letter to then Deputy Treasury Secretary Lawrence Summers.

They were not alone. In one of the most unusual alliances in Congressional history, Tom Daschel (D), Senate Minority Leader; Dick Armey (R), House Majority Leader; Tom Delay (R), House Majority Whip; and Democratic Senators such as Richard Bryan (D), Tim Johnson (D), Harry Reid (D) all warned outgoing Treasury Secretary Robert Rubin in a letter that they would oppose the proposal.

In addition, 36 of the 41 nations were gold producers themselves who would benefit from the IMF's debt relief program, but they urged the US Congress not to approve the debt relief, fearing that more gold selling would depress gold prices and do more damage than the debt relief itself.

The IMF gold sale proposal was finally defeated, but GATA queries whether, after all that hullabaloo, the IMF is not pulling an end run on the US Congress and lending gold via a deposit with the BIS?

Enough is enough. It is time for GATA to go to South Africa to gain the support from those most negatively effected by the illegal Gold Cartel collusive activity.

"The Enveloping Horn" to South Africa

Phase ONE - The point of the horn strikes
Phase TWO - The right and left flanks flare out to encircle the Cabal
Phase THREE - The back end of the horn is sealed off and the Gold Cartel is defeated

Reg Howe and GATA have made first strike by filing a Complaint on December 7, 2000, in the United States District Court for the District of Massachusetts, Boston, Massachusetts versus Defendants: Bank for International Settlements, Alan Greenspan, William J. McDonough, J.P. Morgan & Co. Inc., Chase Manhattan Corp., Citigroup, Inc., Goldman Sachs Group, Inc., Deutsche Bank AG and Lawrence H. Summers, Secretary of the Treasury.

The right and left flanks are flaring out right now and on the move. GATA's objective is to hook up concerned politicians in the U.S with the mining unions and interested politicians in South Africa.

I spoke with the following and sent them Reg Howe's Complaint, James Turk's 'Smoking Gun', and a copy of our press release (all of which may viewed at

*Ralph Nader's top staff aide, Jake Lewis, at the Center for Responsive Law

*Jack Horner and Elroy Saylor, senior staff members for influential black Republican Congressman J.C. Watts of Oklahoma. They are aware that on May 10, 2000 a GATA delegation met with The Speaker of the House, The Honorable Dennis Hastert, Alabama Congressman Spencer Bachus, Chairman of the House Subcommittee on Domestic and International Monetary Policy and Dr. John Silvia, Chief Economist of the Senate Banking Committee. They were each presented personalized copies of GATA's "Gold Derivative Banking Crisis" document ("GDBC Report" at

I will soon be in touch with certain Democratic leaders of the Black Caucus.

All of them will know that I leave for Capetown, South Africa in early February to attend the "Investing in African Mining / Indaba 2001" conference hosted by International Investment Conferences, Inc. Not only will most of the world's gold producers be in attendance, but so will certain South African Government officials.

Prior to the meeting, I hope to meet with Willy Madisha, President of COSATU. The National Union of Mineworkers is under COSATU's jurisdiction. We spoke recently and he could not have been nicer or more receptive. The Howe/GATA material was also sent to Mr. Madisha.

Former Mineworker's President, Marcel Golding, is a friend of a prominent member and of government consultant Frank Veneroso of Veneroso Associates. As Marcel has a place in Capetown, I hope to visit with him too.

My trip to South Africa will take me to Johannesburg and I would like to meet with some members of the South African press. A radio interview is already being scheduled this coming week with Christopher Verrijgt of 567 MW Cape Talk in Cape Town.

And, of course, if at all possible, I would love to meet one of the truly great heroes in the world, Nelson Mandella, to let him know how important this issue is for the welfare of the people he sacrificed a good part of his "free" life to fight for.

One of the original GATA supporters, Boudewijn Wegerif, was brought up in South Africa and in December 1997 he completed a two and a half year, 12,300 km walk from Kiruna in North Sweden to Cape Town at the tip of Africa. "The walk through 17 countries was undertaken as "a prayer for the earth" and to draw attention to the suffering caused by the prevailing debt-based money system."

Boudewijn is introducing me to Sheena Duncan, President of the Black Sash, a leading opponent of apartheid. In that era, the Black sash members, women all, stood outside the house of parliament at openings, etc., in disciplined silence, wearing black sashes. They also opened advice centers in the townships, which are still going strong and are very important regarding legal and other advice for the poor.

The Gold Cabal are the richest and most powerful people in the world, but we have the truth and the internet going for us. If there is anyway that anyone can assist GATA with any of the people mentioned regarding our South African trip, it would be greatly appreciated.

There is much we can all do. It is time for the gold fraud to end.

Long Live "The Enveloping Horn!"

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The first use of gold as money occurred around 700 B.C., when Lydian merchants (western Turkey) produced the first coins
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