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To: Clappy who wrote (48934)	3/25/2002 10:47:00 AM
From: Jim Willie CB	Respond to of 65232

I believe commercials include JPMorgan, Citibank, GoldSachs sure, they are short... they are tools of Fed and central bankers I read Paplava's excellent Ch 9 on Perfect Storms last night it makes more sense now I was wrong about how much gold is consumed apparently the net gold short position by the gamers amounts to about 80% of entire central bank holdings !!! and net silver short position by gamers amounts now to about 20-30% of one year's supply (central banks dont have any more silver to lease) I learned another key fact on bones tossed to bullion bankers Congress passed a law last year to benefit derivative traders the bullion bankers like JPMorgan, Citibank, Goldman smell trouble they might have seen visions of their own demise Congress passed a law allowing failures to come clean on a net basis it is called "netting" and the Comex is APPALLED at the law so if they go under, exposure in one market like precious metals will be offset by positive positions elsewhere in other words, some gold and silver defaults will result in dead futures contracts that technically are profitable we are not only seeing "fractional bullion banking" with multiple lending of the same metals, but preparing for partial recovery by creditors in the futures markets wow here is an email I sent this morning to John Mauldin my first email to him / jim silverback ---------- Mr Mauldin, thank you immensely for your philanthropic editorials been a reader for almost a full year I propose to you that your views are converging with Jim Paplava of www.FinancialSense.com his Perfect Storm scenario seems to be unfolding slowly I contend that your adept perception of DEFLATION is on target but it must be coordinated with more emphasis given to two central INFLATION forces, plus one more on the horizon 1. US Money Supply increases since June2000 are now in the $1700-1800 billion area (25-30%) which goes far beyond counterbalancing of burned capital from bad debt and bankruptcies 2. imminent and building energy price rises, from neglected capital investment, malinvestment in technology, constricted infrastructure for delivery, and lack of excess capacity soon 3. sliding USdollar which thus imports inflation via trade deficit as Paplava points out, a serious risk lies in the jet stream of currency markets turning the tide against the USdollar, thus creating the energy behind a monstrous gradient from inflation and deflation forces, resulting in a potential perfect storm in the economy, financial markets, and currencies the last bubbles are the USdollar, USTBonds, and lest we forget -- REAL ESTATE the technology stock bubble merely shifted location to the real estate industry, by virtue of the Federal Reserve's lowered interest rates the spending recovery since last autumn appears to be based largely on more consumer debt you have pointed this Stephen Roche view nicely the problem is carefully outlined by Paplava in a bigger picture of debt expansion from 1990 onward money supply has doubled since 1990 I dont mean to sound superior to you in any way, rather I am humbled by the last two years but I think you might want to avoid the exclusive possibilities of deflation or inflation... and focus on the rising likelihood of BOTH deflation AND inflation we have come to appreciate strong arguments from each camp, wondering which "wins" but as economic sectors experience separate distinct forces, we have the potential for more separation precious metals benefit from each extreme phase and each extreme pulling force the day is nigh for the world to turn its back on the Almighty Dollar, but slowly thanks again for all your brilliant work / Jim

To: Clappy who wrote (48934)	3/25/2002 11:16:11 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 65232

forgot to clarify, gold is consumed in large amounts in jewelry the argument that 99% of all gold mined since the pharoahs still rests in a vault somewhere in the world ... is pure shit my sister alone has $25,000 worth of jewelry check your wife's jewel box (it is not below her waist) jewelry is consumed in large amounts also, gold is now being parsed into small bars Japan is buying them up like celery sticks a tidbit: Goldman Sachs is not a moneycenter bank so they do NOT report any derivatives to Comptroller of Currency JPMorganChase and Citibank do report all derivative books lastly, a note on pullbacks for gold and silver since early March, we have seen gold back down from 300 but bear in mind that Japan's Repatriation ends March 31st their gold demand should rise very soon into April I expect pullback forces to be tempered by unwinding of Repatriation when gold gets and stays over 320-335, watch the short squeeze IT WILL BE HUGE AND GRAB HEADLINES the monstrous staggering colossal huge suppression game is taking place within a narrowly defined range when gold breaks above 325, they risk ruin when silver breaks above 4.75, they risk ruin the covering will be fun to watch this game will break down in waves, with retracement periodically those are the entry points, after retracement stages I expect gold to get to 600 quickly by next winter and silver to get to 25 by that same time energy inflation will combine with Japan to light the fuse our energy problem did not go away with the recession it rested / jim