John, John, John.. how many times must we hint to you. DON'T ENCOURAGE DOUGAK. We don't want a lunatic who cultivates watermelon for its propensity to be capable of rind distillation to dental floss to come out and say, "I told you so, it's a quasi jewish conspiracy, run in part by non jews, but that doesn't count, to keep the price of gold down." Listen to Hutch. It's supply and demand. There are 2000 tons being mined, and no one wants to buy it. Besides the South Africans want the price to be low, so that it is less profitable to mine their reserves, forcing them to borrow money to keep their currency afloat. You could convince Mandela to borrow money. An insulated economy that owed nobody anything would not be attractive to the IMF and Worldbank, or the US/BOL trust. If you ask me they overthrew white control of SA more for the money, because they could convince the new boys to borrow money off them. The lender always wins, if he get the right to always charge interest, and to always be able to collect in some satisfactory way.
What you are trying to say, which is typical of people with fr. last names, I might add, is that a few people in some big banks, we shall not say of any particular nationality lest we be seen as people who would insult some race of another as being capable of that degree of co-operation, are actually (ha! ha! ha!) trying to (he! hee! hee!) get this.. make sure that gold price does not exceed the sold-forward-price of the mines in production.. or they (the mines) will get all their sold-forward loans called. (As selling forward "naked" is actually loaning money on the price of gold.) It is callable and is therefore unprotected, as if the call is naked. What CFSB wants is the right to get delivery at 370 or whatever price of the gold they "bought the call on". Why not? because Ashanti could not deliver. They would have to borrow gold, at a much higher price to fulfill the "call". Ergo financial disaster.
So what do the Rothschilds do? They simply loan the company more money in order that they can buy gold to fulfill their contracts. So what does this loan do? It makes the Rothschilds the eventual owner of the Ashanti. As more and more money gets loaned, the owner of the loan, the bank, sits back and relaxes more and more. He relaxes as he knows that the lendee will have to borrow more money on a rising price of gold. As it soars upward, the lendee will scramble to get more gold loans filled. He already has the money poured into production, maintenance and/or development, and no money. If the price rises and the loan is called for delivery, then he cannot supply the gold, and must buy it. Unless the country does something Hitlerian, (dare we say the word) and closes the country's assets off from siezure, and forgives Ashanti of its loans, the bank will eventually accrue enough principle and interest to take the mine over lock stock and barrel. The next step is to up the loan, and get shares paid as a collateral. On the other hand, it may take the gold produced at today's payment as good enough collateral. Why do this? Because a gold price accrual from $290 to 400 dollars represents 38%, which in the short term is far better than present interest. Either shares or gold, it could equal the pound of flesh they are after. That may seem pejorative, so we back off a bit. Ordinary interest is the equal to any pound of flesh. Eventually, since the interest to pay it back is not created, the loan must be paid back in inflation, increased production, or other economies. If you cannot produce these then the IRR must exceed the interest rate. This is not always guaranteed.
As we found before in Africa, the cost of maintenance is high. The tropics is hard on machinery in mills. Cost of spares is high and the cheques must leave the country to countries that make spares or engineering services. This money is not always allowed out of the country, so the mills gradually fall apart. Then the company goes back to the banks for more money for buying offshore spares, loaned offshore on share collateral, or gold sold forward. At low prices. At low prices it is far more dangerous than at high. The cycle continues, until the company is bankrupt. Sound a bit far fetched? We have merely to look at the Congo and 79 years of copper production and all the different companies in there. Even without forward sales, the new companies would flock to England, Canada or New York with new management looking for money and technical assistance. Always the question of how the loan was to be paid back loomed. Eventually out of London would come the 200 million or so to get the copper miner back in business, with alisting curiously on an English exchange and revolving credit door offshore, to purchase more spares. Pay it back? Don't be silly. We will take shares, or copper at favourable rates. Cannot get money out of an African country to save your life. And sometimes as in Katanga, for the fr. mining technicians that was the payment.
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