William,
Thank you for your insight. It is essencial that these observations be moved into the public's consciousness so that these injustices are addressed and remedied, not so much for our generation but for those of our posterity. In answer to the pivitol question <When will we reach a bottom for gold?> I submit the following . . .
Free markets in all commodities are dependent on the character of the buyer and the seller. When the character of the seller is questionable, the integrity of that commodity falls under the same scrutiny and caution as we would give to its owner.
When the Japanese tried to control the transistor market, they "dumped" transistors at prices so low that they drove profits motivated producers out of the market. In so doing they created for themselves a virtual monopoly freeing them to raise the price of transistors beyond what the competitive market could bear.
Modern day gold sales fall into the same category as "dumping" with one major difference.
Bank monopolies oblige us, as law-abiding citizens, to use debt instruments as the medium of exchange although the constitution does not arrange to mandate such a tyrannical demand. On the contrary, the Constitution provides the foundation for gold as the monetary instrument of choice in the settlement of debts. In transistors we broke the Japanese monopoly by making them better and cheaper. Nevertheless, we cannot make our own currency as we would be in defiance of the existing laws, however unlawful they may be.
Paper money is a derivative of monetary gold and silver designed to be used as a personal and commercial convenience. It was to be supported by a monetary equivalent held by the bank issuing the promissory paper. That paper was to be redeemed upon demand with the <backing> held by the bank.
Historically, governments and banks have always manipulated paper money in their own cause and to the impoverishment of the people. I personally see no difference between the scams perpetrated by Bre-X and Delgratia and the scam presently unfolding in the world's currencies with the dumping of gold on the world markets. The banks and politicians will always bring gold's value and integrity to question so they may increase and perpetuate their power and wealth. This is true for two fundamental reasons; Firstly, the printing of paper money creates wealth out of nothing. Secondly, paper money is a debt that puts us all in a state of perpetual dependency and a stake in the survival of the powers that created it.
Some reasons why banks and politicians wish to destroy gold's utility is because Gold carries its own value, it is independent of governments and politicians and it is the choice of people who value their independence. Gold keeps us free.
Paper derivatives (dollars, paper gold, or plastic conveniences) is nothing more than representations or abstracts of the real thing.
Most Americans have had gold and silver removed from their experience and erased from their memory. However, the one positive feature is that the populations of the rest of the world have not, and it will be from them that monetary reality will again reassert itself.
When will we reach a bottom for gold? When we see the "paper" structures for frauds that they are. Once that happens the collapse of monetary derivatives will be as rapid as the economic, monetary and market collapses in Japanese, Soviet, Mexican and Asian experiences have recently shown.
I believe that when any nation sells its gold for paper, it is an act of desperation. It is as though one would prefer to cannibalize its own body to survive within a lie, than to return whole, into reality.
Eakole |
