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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsnow who wrote (35941)	6/26/1999 5:47:00 PM
From: Rarebird	Read Replies (2) \| Respond to of 116815

Re-Monetarization of Gold as the De-Monetarization Of Gold? Date: 1999-06-25 11:56:56 Subject: Erdman Sees the Re-Monetization of Gold as the De-Monetization of Gold Link: cbs.marketwatch.com. Comment: Paul Erdman says that the fall in the price of gold is the result of the central banks' dumping of gold. He's wrong. It is the result of yet another threat by central bankers to sell gold one of these days. Gold was stolen from private holders in this century by means of subterfuge or coercion. In the case of the United States, it was coercion: Roosevelt's unilateral confiscation in 1933, under the legal cover of wartime powers. The central banks wound up with the world's gold. They created fiat money to buy it from the governments, which had acted as the agents of the central banks. They bought it at fixed prices -- low -- without having to enter the free market to buy it, which would have raised gold's price. Now central banks -- quasi-private associations of commercial banks -- hold it for their purposes. If you want to know how this was done, and how the game goes on, read the book by economist Murray Rothbard, The Case Against the Fed. Y2K threatens this arrangement. It threatens central banking. The bankers have bet the future of their operations on computers. That bet is about to go sour. A tiny percentage of the public will register its vote of no confidence in central bankers by buying gold. Gold is the ultimate liquid asset in a world where computers are down. So, to keep the futures traders from bidding up gold before January, the central banks threaten to sell their gold -- the only asset worth holding by a central bank in a y2k breakdown. It's bunk. They will not sell their gold. But military regimes will probably confiscate it anyway, under martial law conditions. In a conflict between bankers and the military, bet on the military. Commanders have always seen to it that the troops get paid. The army will spend the gold back into circulation. This will re-monetize gold. If the banks sell it, gold will slowly be re-monetized, but without y2k, this might take a generation. Y2K will speed up this re-monetization process. When I speak of re-monetization, I mean money in use by the general public. When Erdman speaks of it, he means money in use by the central banks. There is a difference. It is the difference between the free market and a government grant of monopoly privilege. Karl Marx quoted Hegel on the relationship between grand social theories and historical conditions. Great theories of how a society functions become accepted in the final stages of the society in question. Hegel said, "The owl of Minerva flies only at dusk." The owl of Minerva was ancient Athens' symbol of reason. Erdman is flying high. Don't get under him. garynorth.com