Sound Off 1 2... to be demonized not to be demonetized.
therepublic.com
Sound Off
Controlling gold
By Ed Stuart
Columbus
The government has determined that Microsoft is a trust.
That is interesting as it seems the government
of the U.S. and banking interests have colluded
to control the price of gold and silver,
making it unattractive as an investment vehicle.
They have removed international monetary systems
from the gold standard, but for 75 percent of the
world, gold is still the ultimate store of wealth.
Bill Murphy and Chris Powell are founders
of the Gold Anti-Trust Action. They maintain
a Web site named Le Metropole Caf‚. In the caf‚
are many articles written by experts in the economics
and financial fields. I also must give credit to the forum
at Gold Eagle for many hours of interesting reading.
When I discussed gold at work, the first statement
I heard was gold has been demonetized. As I have since
learned gold has been demonized, not demonetized.
The Russians and Chinese are buying gold
for their official gold holdings. Asia and
the Orient import a large quantity also,
mostly for private investment, and demand
is increasing. In India families will go
hungry before they sell their gold.
To these people gold is the ultimate storehouse of wealth.
Gold mine supply in 1999 was only 2,559 tons.
Frank Veneroso, an internationally recognized
financial consultant has determined the supply/demand
deficit is 1,500 to 2,000 tons annually.
This deficit is being made up by gold leasing
and gold sales from central banks.
The British and Swiss gold sales are designed
to be a negative reinforcement to the price of gold
as well as put supply into the market.
According to Ted Butler, silver is in extremely
short supply and could explode upwards at any time,
overwhelming those institutions that have capped
the silver price. This could create a hazard to
the international banking system. No one wants that
as this could totally devastate the international economy.
When I read in The Republic that Kuwait was loaning its gold,
I knew there would be a further official announcement.
Within two or three days, I read the U.S. was increasing
its military presence in Kuwait.
A few weeks ago in the Sunday edition
of The Republic, China announced the cost
of holding its silver was expensive (in China?)
and was allowing its silver producers to sell
their silver outside of China.
Again within a few days it was announced
that the U.S. supported the Chinese in its
One China policy, and more recently there was
no opposition to China's acceptance into
the WTO based on human rights violations.
Coincidence? I think not.
GATA has found that the Exchange Stabilization Fund (ESF),
a government agency headed by the secretary of the Treasury,
is responsible only to the president,
and has no reporting requirements to Congress,
the probable agency involved.
The ESF in collusion with major banks are capping
the price of gold regardless of the damage done
to the mining industry and the loss of jobs
in Third World countries.
From Greg Pickup of GATA, the top seven banks involved
in this gold suppression have gold financial derivatives
totaling 72.9 billion in place. I wondered why a BBC article
I read recently commented about the suppression of the gold price
and relating it to the mountain of derivatives, now I know.
Greg Pickup states the total assets of these seven banks
is $1.8 trillion, the total derivative position is 32.6 trillion.
Is it any wonder Greenspan said that financial derivatives
should not be regulated in a free market,
as did Secretary of the Treasury Summers.
It sounds to me as if the term should be manipulated market, not free.
GATA has a stack of evidence it will be taking to Congress soon.
This should be an interesting summer.
Portions 2000, The Republic, Columbus, Indiana
1998-2000 1UP! SOFTWARE, All Rights Reserved.
The Gold Anti-Trust Action Committee
is a non profit organization looking
into the how and the why of a gold market
being manipulated. Who loses and who gains,
and if criminal activity has occured.
Bill Murphy, Chairman
Gold Anti-Trust Action Committee (GATA)
gata.org
Lets un-demonize physical gold
and let its use as a store of value
be regarded as highly as its others uses.
For those who think gold is of a flavor
of a demonetized past metal,
then watch their eyes as at the same time
in front of them
appear
paper money and physical gold.
Doug |
