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ARCHIVED DISCUSSION FROM 6/2/2002 All times are U.S. Mountain Time (Yesterday's Discussion.) GoldnSilver2002 (06/02/02; 23:44:41MT - usagold.com msg#: 77304) JUne should be a big month for gold and the cabal I guess in my attempt to keep it brief i became confusing.Jimbo with so many world events favorable to gold,i think it is highly likely this is the month the gold shorts blink.At gold's current rate of growth June should be the month gold cracks the 354 to 360 marker,at which point many belive gold will be set free to climb upwards and cracks in the financial sytem become exposed as a result.Many far wiser than me have written about the gold derivatives mess,June could be the month the fireworks go off so to speak.As for monday its the first day of june and one has to believe the powers that be will try and take a firm stand at 325.As a result monday could be a very tryingday for the old boys of the cabal as they frantically try and bring the p.o.g down.So i said to them "watch out boys " JUne is bound to have some surprises,or should i say "the expected unexpected".June being a hot month,it should start to bring matters as they pertain to gold,to a nice boil.Should be interesting to watch,as Black Blade often says "interesting times" and i think June will be a very interesting month. Black Blade (06/02/02; 23:10:33MT - usagold.com msg#: 77303) Coming tidal wave of gold demand http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=27803 Snippit:It's a scenario that's taken time to unfold but is now becoming crystal clear. At its center are gold and the dollar. The scenario is this: The dollar, the once mighty symbol of American might and global dominance, is no longer perceived internationally as being bulletproof – due largely to America's continuing role as the world's leading debtor nation – and, as a result, dollar-holders are beginning to quietly exchange their positions for gold. For years, due to an artificially low price of gold, there's been a contraction in exploration and new gold mine development. Most mines are geared only to make nominal profits and get by. Significant production from new mines wouldn't realistically take hold for another five, maybe 10 years. So a sudden monster gold move would be compounded by unusually feeble production. Climbing gold prices would then be a lot like the driver of a speeding car … that hits a concrete wall. Most investments are haunted by nagging questions. Gold no longer is. Not only are the fundamentals solidly in place, not only does demand already exceed supply by some 40 million ounces, and not only is there a 14 percent profit potential virtually built in and a Dow/gold ratio that's still way overbalanced at 27 to 1 (in 1980, that ratio was "normal" at 1 to 1), but with peaking world tensions, rising oil prices and a weakening dollar, do you really feel comfortable not maintaining a 20 to 30 percent gold position in your portfolio? Better think about it. Black Blade: Interesting article. I saw David Tice of Prudent Bear Fund on a finance show today. He stated his case for a continuing bear market and said that he was still bullish on Gold. The other guests were not as upbeat about Gold, however, the usual statements like "barbarous relic" and "sterile asset" were not mentioned and they seemed anxious to move on to another topic. Black Blade (06/02/02; 22:49:50MT - usagold.com msg#: 77302) Re: mikal The point for Middle Eastern and Venezuelan OPEC producers is to make their oil last at as best price as possible. ME producers have no other natural resource to exploit. The Saudi producers for example can produce oil at about $2.00/bbl and the Russians can produce oil at about $8.00/bbl for example (before transportation, refining and other costs). Recently the US through President Bush during his visit with Putin and earlier contacts with through the administartion, plans were set in motion to acquire a larger share of Russian oil. However, this oil is of lower grade and more expensive to extract. Over the last several years the average annual per capita income of Saudi citizens has fallen from about $27,000 to roughly $8,000. The Saudis also payoff the Wahabbi clerics and other Islamists in order to keep a lid on possible upheaval in the Kingdom. Now that the oil income has fallen there exists the real possibility for political unrest. Add to all this the rapid population growth in the region and the lack of government jobs along with rising costs of social programs. The Saudis know that they have a finite resource and it has been suspected that the large ME oil fields are near their "Hubbert Peak" of oil production. There is an Arab saying: "My grandfather rode a camel, my father rode a car, I ride a jet, and my son will ride a camel". - Black Blade Around The Corner (06/02/02; 22:44:58MT - usagold.com msg#: 77301) RE: Loss of Confidence...Loss of Faith...The CIA/FBI Meltdown The question I'd like to see asked is:"Mr. Tenent, were you instructed by either George H. W. Bush, George W. Bush or Dick Cheney to "back off" investigating al-qaida, and if so, when was this instruction given to you?"It's blatantly obvious that early on, the Bush administration wanted to befriend the Taliban and do business with them, which was a 180 degree turn from the Clinton policy.Until just after September 11, 2001, the Bush's were business partners with the Saudi based bin Ladens. Amazing, no? Further, George W. Bush gave the Taliban $43 million of our tax dollars in August of 2001.You see, there was this issue of building an oil/gas pipeline through Afghanistan, worth trillions of dollars to his campaign contributors and, coincendently, once built, it would help Bush's #1 campaign contributor, "Kenny Boy", out of a $3 billion dollar jam in India.Maybe this is why Cheney refuses to release the notes of the U.S. Energy Policy meetings that "Kenny Boy" (and others situated to benefit from the Afghanistan pipeline) attended.Obvious dots?If this was their plan, then all I have to say is...buy gold and silver, and buy as much as you can, and be quick about it. The dog WILL be wagged. Black Blade (06/02/02; 22:20:59MT - usagold.com msg#: 77300) Gold guru sees price above $1,000 ounce http://www.globeandmail.com/servlet/GIS.Servlets.HTMLTemplate?tf=tgam/common/FullStory.html&cf=tgam/common/FullStory.cfg&configFileLoc=tgam/config&vg=BigAdVariableGenerator&date=20020601&dateOffset=&hub=business&title=Business&cache_key=businessCanadianHeadline¤t_row=3&start_row=3&num_rows=1 Snippit:VANCOUVER -- Veteran gold bug Jim Dines says he was once called "a moron" by U.S. Federal Reserve Board chairman Alan Greenspan for predicting that gold would break out above $35 (U.S.) an ounce -- now he's calling for $1,000. "He has never come back and apologized," said the San Francisco newsletter writer as he recalled a conversation that occurred in 1964 while he and Mr. Greenspan were watching Barry Goldwater campaign for the U.S. presidency. "Killings and fortunes are going to be made on this one."Black Blade: Alan Greenspan has calmed down with age, now he just says "irrational exuberance". mikal (06/02/02; 22:13:52MT - usagold.com msg#: 77299) OPEC Oil Income Seen Threatened, Changes Proposed http://www.reuters.com/news_article.jhtml?type=businessnews&StoryID=103... OPEC Oil Income in DangerJune 02, 2002 11:29 AM ET By Tom Ashby .........Since then [1960], the oil price debate has focused on production quotas to set prices. But as foreign operators return to the cartel's oilfields, the key to government revenues will increasingly become the price companies pay for access to the oil, which Mommer seeks to defend. He says OPEC, popularly known as a cartel of oil exporters, is better defined as an association of landlords, extracting rent in return for access to their territory. "OPEC is able to restrict the flow of investment, which determines the long-term level of production," Mommer writes. "The power of OPEC is deeply rooted in its 'underground'. Quotas are only a kind of fine-tuning." By increasing the cost of production through royalties, Mommer believes OPEC can set a "fiscal floor" to oil prices worldwide including a good margin for budgetary needs in exporting nations. While output management has succeeded in raising prices over the past three years, Mommer says maintaining those prices will depend on staunch defense of sovereign property rights in oil exporting countries as foreign capital returns.....click link for more ~~~~~~~~~ Black Blade, is their concern over prices overlooking serious global supply problems, increased global demand, commodity "price" explosions, etc.? Carl H (06/02/02; 21:20:20MT - usagold.com msg#: 77298) Morgan Stanely Rocket Scientists I have seen mention here that Morgan Stanley is part of the cabal. They have been our broker for a while (by merger, not by choice). I just received 8 other individuals statements sent with their names to my address. If the same rocket scientist programmers that handle their address database handle their derivatives programs -- then I would say these guys are an accident waiting to happen.BTW, I am transferring my accounts to a small local brokerage that actually seems to want my business. sector (06/02/02; 20:42:10MT - usagold.com msg#: 77297) Loss of Confidence...Loss of Faith...The CIA/FBI Meltdown Taking a lottery for George Tenet's Last Minute as CIA Director Opening time is 9:01 AM tomorrow morning.Imagine the conversation between GWB and Mr. Tenet early tomorrow AM.Uhmmm...Mr. Tenet...Exactly WHEN did you learn that these hijackers attended the Al Qaeda "Summit" in Malaysia?And did you just FORGET about them when they came back to the US? And about the flight training you knew they were taking...when did your WIRE TAPS reveal their intended targets?...Oh? ....You didn't issue wiretaps?...I see...so...[GWB slowly drinking from a glass of water] you and your crack analysts...what exactly DID you guess they were trying to do with that turbo-jet flight training...the training that included NO LANDING provisions? ...Cat got your tongue? So...Mr. Tenet, would you please explain exactly HOW you tracked these known terrorists in the US?You DID have their driver's license numbers and credit card and phone info…right?… You know...the guys that you had already linked to the attack on the USS Cole?Let's see...did you pick up the phone and tell the FBI?...Nope?...I see.... Well maybe you had a "Pressing engagement" ...or something like that.Well...Mr. Tenet you know these same guys...the guys that you SAY you "LOST" when you let them back into the US...weren't they the SAME ONES gunning for ME and my WIFE at the White House?Only they couldn't FIND the White House with their "Bomb" so they slaughtered hundreds over at the pentagon....Do you remember THAT part?Funny don't you think....Mr. Tenet…they didn't choose the CIA HQ in Vienna? After ALL, Mr. Tenet, the CIA in Vienna IS on the way from where they were coming....isn't it? And BOY you just CAN’T MISS that building…can you. And we all know how they HATE the CIA.Perhaps you can explain WHY these terrorists chose to pass up the juicy CIA HQ, in-plain-view target? …By the way, were YOU THERE on 9/11?...you WERE?… My, my, my...what a COINCIDENCE!Now...about a few tiny little, silly questions I will have to answer this morning...Would you, Mr. Tenet, please explain how I can answer the logical questions:"Mr. President, did YOU know about these terrorists by name too? ..for openers, and…"How could you just let these known terrorists back into the US AFTER you knew they attended an Al Qaeda Summit?"Mr. Tenet...Mr. Tenet?…Perhaps a glass of water... Aristotle (06/02/02; 20:29:48MT - usagold.com msg#: 77296) Interstate, unless I'm mistaken, when Sir Belgian replies then we'll both know I'm trying to interpret this, not to be picky but to clarify. You said, "I don't see how your reply relates to his concerns."To be sure, I wasn't "replying" per se to Belgian's post, nor was I trying to address his "concerns." As I see it, his post stands as an impressive monument upon high ground. It warrants no attempt at alteration from the likes of me. In fact, I opened my post to him with a compliment, and then when promply onward to build a common base of understanding from which I could inquire whether he might be inclined to support my suspicion. That being a conception that dollar bills in the sweaty hands of the world's international toilers have become not part of their mental "monetary language" (the notional sense of Money proper) but rather they've become part of their "commodity associations" and barter.The key point, which I left unsaid and for the deduction of any individual reader, was that in this overseas capacity -- as a savings commodity -- the dollar might suddenly fail and be dishoarded/repatriated as quickly as confidence can be lost on the merits of any given printed object. As dollar-denominated Gold price perceptions can no longer be held in check through a preponderance of derivative substitutes, my suggestion is that owners of sweaty "Personal Dollar Standards" will en masse seek to shift them into sweaty "Personal Gold Standards." A shifting of one "commodity" for another, yet each of them existing locally although outside of the local monetary system. Although a dollar may represent money to us in the land of its creation, to them it may represent property -- as good as Gold for only so long as the Gold price doesn't rise and give up the game!Granted, it's perhaps a subtle and obscure business, but that's why I posed it to Belgian, singling him out so as not to distract the other participants from their comings and goings. Were FOA making his mind available, you can be sure I'd have sought him out to hang some flesh on my outline.So, Interstate, I think there may not be a "relationship" between the "social" point of Belgian's morning comments and the "technical/philosophical" point of my own. The players in the tale, however, remain a point in common, and ultimately its all an analysis of the same game. And an important one at that.Gold. Get you some. -- Aristotle Cavan Man (06/02/02; 19:56:14MT - usagold.com msg#: 77295) Bloomberg "Stories" I posted a link earlier that was favorable to the Euro and very negative on the dollar outlook. Go to the site now and see a 180. Typical stockbrokers; say one thing today and then reverse yourself tomorrow. In that way, you're never wrong. Well, observe the big picture with regards to gold. We are definitely in a bull market that isn't going the other way anytime soon. Believe it! Stay the course and go long. Jimbo (06/02/02; 19:47:53MT - usagold.com msg#: 77294) @GoldnSilver2002: Explain, please Just got back from the Austin, TX, area, where 30,000 Harley owners converged for the weekend, and read GoldnSilver2002's Saturday post about "Looking into the future." For newcomers to gold investing such as myself, please explain what you think is going to happen on Monday (you said "Monday should get real interesting") and what you predict for June (you said "Its June boys watch out."). slingshot (06/02/02; 19:33:55MT - usagold.com msg#: 77293) Siege Engine Gold Above $300.00 The archers have long left the castle under the cover of darkness. One by one they past through the slit in the main entrance on their way to the appointed spot to await the charge of those upon horse. They carry with them impliments of destruction and will conceal themselves untill it is time to deliver the death blow. In the courtyard the Knights assemble on horseback with jars of oil to bathe the trebuchet to set it alight. The tourches are put out and the gate opens and the riders slowly exit. They can see their foe across the field and that the goldbugs are unaware of what is to come. The moon is cresent and clouds help shield them from detection as the distance of the field shortens.They see the trebuchet as clear as day for the fire that helps the goldbugs also gives the riders a beacon. The horses are quiet and the ground soft to muffle both weight of horse and rider. They are now more than half way and spread out in a line as the pace quickens. The horsemen now can see a stone ready to be thrown. They come to full gallop. Startled by the sound of thundering hoofs the goldbugs sound alarm and those asleep awake to being attacked. They run to pick up their long pikes to repell the invaders and see the charge come upon them. Swordsmen fall in behind to strenghten the line. They raise their pikes to show the defense is strong but the horsemen press on and all at once a short distance away come become two lines. There is no time to move the pikes and the first horses with breast shields collide. Sounds of men in battle ensue. Horses and man are put to ground yet two penetrate the defense and throw the deadly poison upon the machine. Those in hiding have watch the breach and let lose the flaming arrows to the target. At the same time the last stone is set to flight. One crashing against the citadle and the other engulfing its prey in fire.Upon the wall the Lord of the castle smiles and retires to his room. Cavan Man (06/02/02; 19:26:08MT - usagold.com msg#: 77292) Russia's Oil sold to US If SA loses market share and perhaps this is a "we call your bluff"; then, I would expect a trend to settlement in Euro to begin to gather momentum. Interstate (06/02/02; 19:19:34MT - usagold.com msg#: 77291) Aristotle and Belgian I have read the posts of both of you. I sense the frustration of Belgian and agree with him. It is a passionately stated thought, but, in all due respect Mr. Aristotle, I don't see how your reply relates to his concerns. If you have the time, and the inclination to explain the relationship, in simple terms, I would be most grateful, because I believe it is important to further my knowledge by understanding.TIAInterstate Aristotle (06/02/02; 18:25:00MT - usagold.com msg#: 77290) Belgian, on the toils and choices of "others" You'll notice that I included the word "sweat" out of respect for your latest offering.I've got a quick question for you regarding these many places "outside the consuming West" (Euroland included) where the dollar is used as you eloquently say "as the ultimate store of tiny small surpluses out of all this billion gallons of new producer's sweat."These places have their own national currency, yet due perhaps largely to the inflationary failings of their local monetary system, the locals have sought shelter through the saving of dollars instead of saving local currency, much to the singular benefit of us dollar creators. As you know, the past two decades of Gold's "nonperformance" when priced in U.S. dollars has propped up this international complacency, even *desire*, to hold dollars instead of Gold for the better "yield" on the savings they've stuffed under their mattresses.A rising dollar-denominated price for Gold certainly won't do anything to make these locals have more confidence in savings denominated with their local currency. They will still want to have a form of savings that are safely "outside" of the local monetary system. Ignoring for now the comparative sizes and particular timing of the movements in any given currency, the price of Gold in ALL currencies should ultimately be seen as rising -- dollars, euros, pesos, you name it. What it will do is alter their choice away from significant savings in dollars or any other currencies for that matter. Gold should become the primary beneficiary of this mental realignment in attitude toward savings.Here's my question, and I'm hoping you can draw upon the FOA school of thought as you conjure up an answer if possible. As an American, it is very natural for me to use the dollar as the denominator of my monetary thinking. On my Personal Gold Standard, which is what I call my standard of savings built upon Gold (see Aristotle (5/13/02; msg#: 75556),) I know the wealth of my savings is real, but it does not participate directly in my monetary thinking; that is to say, my mental associations of relative values between all things as expressed through measurement with a thing called "price" in which, for me as an American, the Dollar is my arbiter -- my money.If at any time I want to assess the purchasing power of my savings, I look at the going market price (in dollars) for each ounce of my Gold holdings, and then with my daily and ongoing exposure to the dollar price of SUVs, lawnmowers, gasoline, bread, garden supplies, beer, etc, I can come to a reasonable understanding of my savings/wealth as measured through this notional concept of money (being units of dollars in my American mind.)QUESTION: In the minds of the millions in distant lands who have sweated billions of gallons over the past two decades to put themselves (temporarily) on a Personal *Dollar* Standard of savings, is their monetary thoughts and mental value associations still conducted in terms of their own national currency such that they ultimately understand the value of their savings through the local money/price associations as a translator?If so, then it should be easy for many of us to see how the dollar has risen to the precious status of an actual "commodity" in these placed rather than merely another notional monetary unit. It should also help us to understand how natural it is for people to set aside a precious commodity to function as secure savings outside of their monetary system.Gold. More and more of us gettin' us some. --- Aristotle Black Blade (06/02/02; 18:14:35MT - usagold.com msg#: 77289) Rising rand and gold locked in a wrestle for control of JSE http://www.busrep.co.za/html/busrep/br_frame_decider.php?click_id=343&art_id=ct20020601194832263S512139&set_id=60 Snippit:Johannesburg - A rising rand and bounding bullion prices are expected to wrestle for control of South Africa's stock market direction in the coming week, while an interest rate policy meeting will keep bank shares in limbo. During the week the rand raced to six-month highs against the dollar as Middle East violence, tension in Pakistan and India, and fears of attacks in the US drove jittery investors away from dollars and into the haven of gold. South Africa, the world's biggest gold producer, takes strength from any gains in bullion, still one of its main foreign exchange earners. Black Blade: The USD should continue to weaken even as the Japanese devalue the Yen. The equities markets look sickly with extremely low trading volume. Corporate profits are not materializing. The Federal Reserve will raise interest rates. The Middle East is likely to flare up in violence again. The prospect of a nuclear exchange between Pakistan and India looks quite possible. The masses will continue to seek out "safe havens" such as Gold. The outlook for Gold is "VERY STRONGLY BULLISH" (in spite of what a certain consistently wrong analyst claims). JCTex (06/02/02; 17:44:44MT - usagold.com msg#: 77288) Aristotle (06/02/02; 16:49:43MT - usagold.com msg#: 77284) You put a big nail in it. I remember when Jimmah said that those were obscene profits & declared a "windfall" [confiscatory] tax.Funny, I don't remember it coming back the other way when oil was $10 a barrell.I have a newsflash for the American [so-called] press, it wasn't the American oil man that did it; the King of the House of Saud set the price.At any rate, most of the rough necks, drillers, and tool pushers are "selling shoes in Minneapolis", rigs were sold by the pound, and the industry is no longer what it used to be [vibrant].......BUT our government showed the American oil-man......... and we still depend on the Mid-East for our oil. Smart, hunh?? Black Blade (06/02/02; 17:44:03MT - usagold.com msg#: 77287) Gold Regains Its Shine As Safe Haven In Unstable Times http://www.timesonline.co.uk/article/0,,5-313107,00.html Snippit:Dismissed as a barbarous relic of the past by a generation of young traders who have never witnessed a bull market in the precious metal, gold's reputation as a safe haven in times of crisis was openly scoffed at. Nobody wanted it. The stuff was seen as only good for wedding rings and flashy tooth fillings. Suddenly, the world has been turned on its head. The price of gold has soared to well over $320 an ounce, with some producers predicting that it could break the $400 or even the $500 thresholds in the coming months. Companies that have been happy to fix the price of gold not yet mined, effectively putting a ceiling on prices, are dumping their hedging strategies as fast as they can to let the price run wild on the open market. In addition, there is mounting concern that the much-vaunted US economic recovery is likely to be a false dawn. The dollar is looking increasingly vulnerable under the twin weight of the American foreign trade deficit and the newly emerged budget deficit. Black Blade: It is a bit difficult to wipe out 9,000 years of history by mere words such as "barbarous relic". Traders of stocks and bonds are having an eye-opening experience these days as their faith in Keynesian economics is shaken to the core. Fundamentals are important – so much for the speculative barbaric claims of the "New Economy". Can you say: "the emperor wears no clothes"? I knew you could. Gold is insurance when things go bad. mikal (06/02/02; 17:11:11MT - usagold.com msg#: 77286) @Randy, All Cavan Man and I noticed a change in the above, INO gold quote after Friday's NY close. Almost $2.00 higher. It is the nearby futures, forward contract month of July now, that INO quotes- But their Friday's quote would seem to have been for June, since it was May 31. Did a switchover affect the price we see? Or is there an Asian or Arab market(s), small or large, open on Saturday for futures and/or physical trading? TIA Sierra Madre (06/02/02; 17:09:57MT - usagold.com msg#: 77285) Other quotes from "Gold Wars" by Ferdinand Lips... On page 120, Mr. Lips quotes some crucial passages from Charles Mackay's classic. "Extraordinary Popular Delusions and the Madness of Crowds, Money Mania - the Mississippi Scheme, 1719 and 1720."...People of every age and sex and condition of life speculated in the rise and fall of the Mississippi bonds.1719: ".....The warnings of the Parliament, that too great a creation of paper money would, sooner or later, bring the country to bankruptcy were disregarded. The regent who knew nothing of finance, thought that a system which had produced such good effects could never be carried to excess."(Sierra comments: and who were those idiots and scoundrels who were saying, three years ago in 1999, that the Dow would go to 36,000? I hope somebody has been keeping track of how those quacks and traitors to the public were deceiving the people just three years ago!)"One year later, in 1720:"....But the alarm once sounded, no art could make the people feel the slightest confidence in paper, which was not exchangeable for metal. M. Lambert, the president of the Parliament of Paris, told the regent to his face that he would rather have a hundred thousand livres in gold and silver than five million in the notes of his bank."Gentle Knights and Ladies:May, 2002, THE ALARM HAS BEEN SOUNDED!Fear begins to stalk the world. "No art could make the people feel the slightest confidence in paper, which was not exchangeable for metal." - Can you say, "Argentina"?Yes, the alarm has been sounded. This is a whole new ball game. The previous game is over, although many don't realize that, yet.I am no prophet or market forecaster, but I have a feeling that $400/oz may be the price before June is over. Not that it is important - gold is going to rip all expectations to shreds, but the market will take its own sweet time doing so.It's going to be a most interesting week.Sierra. Aristotle (06/02/02; 16:49:43MT - usagold.com msg#: 77284) Plausible parallels point toward possibilities A key item from Black Blade's 77279 article jumped out at me:"Oil is Russia's chief export and oil export taxes are a big part of the national budget."Throughout the many regimes of the world, the business of taxation to fund government operations make for a richly storied tale of history. There has always been an unholy standoff between countermeasure efforts at tax collection and tax avoidance, with shifts in social structures tipping the balance from time to time to variously favor the efforts of one side or the other.For example, a shift from a largely self-sufficient ("self-employed") agrarian lifestyle to an employer/employee dominated money-culture brought about in the Industrial Revolution made it much easier for the tax collector to tap reliably into the currency stream with income taxes. Factories could not easily hide their doings, thus making for easy pickings.Not to be outdone, independent-minded modern citizens have taken the opportunities of the instant electronic banking and Information Age to move deftly out of harms way from the heavy-handed tax man toward shelter in more favorable "residences" -- however digitally intangible they may be. Even under the auspices of open international trade and mass shipping Old Industry seeks to locate its new factories, tangible operations, to regions offering tax advantage.Looking ahead with the mind of a frustrated tax man, a vision takes shape akin to the factories of yesteryear. A nation's natural resources cannot dodge. Oil in Texas and Gold in Nevada cannot be extracted in the New Republic of Banania where workers are willing to sweat for low pay (in dollar equivalent) and corporate taxes are lower.No, oil and Gold is where you find it, and that's where the holes must be. Easy targets. Sitting ducks, actually. The tax man in this age of modern banking and open economies will have no difficulty getting his due, always claimed in the name of "the Greater Good for the great People of this great Nation." Mineral taxes, extraction taxes, special inventive licenses and fees, corporate taxes, and as status of the diminishing resource may become elevated to that of strategic national asset, production limits can be reasonably expected.What? You can't believe in such specialized taxation treatment? Just talk to any smoker who pays cigarette taxes with each purchase, taxes that don't apply to the bread he buys at the same time. And production quotas? Just talk to any old Texas oilman.Corresponding with a massive launch in the street price of physical Gold, it is all too easy to see how the net after-tax earnings of any given GroundGold DeepMine Corp (NYSE ticker: A.HOLE) could be left not significantly greater than any given Wal-Store Inc retailer, General Engines manufacturer, or MicroSmart Corp technology company.If you invest in A.HOLE with the proper mindset as being a partial owner of this Gold mining operation, you'll know him well -- over daily lunches you'll smile and shake your tax man's hand even as he reaches in to lift your wallet. And if you invest in A.HOLE at the exclusion of any holdings in Gold, in the fullness of time you will see that it offers precisely none of the benefits of Gold ownership.Boiling it all down, looking into the latest countermoves of the epic and eternal taxation standoff, with A.HOLE you are buying exposure. With Gold, you are buying security.Plausible parallels? Let's see that again. "Oil is Russia's chief export and oil export taxes are a big part of the national budget."Gold. Get you some... if it pleases you. --- Aristotle YGM (06/02/02; 16:46:10MT - usagold.com msg#: 77283) In the thread of my previous post..... A Quote from Gold Wars..Ferdinand Lips... I don't yet have a copy, but a friend does and provided this excerpt.....YGMQuote:"Based on 50 years of experience and study of the markets and the history of money, it is my conviction that the abandonment of the gold standard of the nineteenth century is the greatest tragedy of all time. It is an event that has led the world into almost 100 years of monetary no-man's land and could ultimately lead into total loss of freedom for mankind. Since then, most economists have blinders over their eyes, but whoever takes the time and work to study the decisive events in history will find that gold is the decisive fulcrum of the world economy and world destiny. The monetary standard is closely linked to the moral standard and, as such, determines the fate of humanity"F Lips... YGM (06/02/02; 15:52:40MT - usagold.com msg#: 77282) slingshot....& All.... Pervasiveness of Banker/Banksters & Mass Complacency.. When I stand in the middle of a typical suburban city block and look up and down the street I get (as of late) a sense or feeling of despair in some dark corner of my mind.Why...because I'm overwhelmed at the knowledge that almost all I survey, be it homes, cars, trucks, boats, ATV's, motorhomes or riding lawn mowers, they are mostly owned by a Bank, sans down payment. What is wrong with this picture?Most of us here and other forums have discussed at one time or another how we dread the hardship that is sure to come down upon an unsuspecting society when this corrupt evil Fiat dollar system collapses as surely it will/must do.We can speculate and theorize and review history all we want and even while listening to those few elders still around that experienced the crash and the dirty thirties depression we can not (I feel) totally grasp the enormity of what changes this perverse Fiat system collapse would bring about. From the cradle to the grave we have become so indoctrinated to accept debt as an integral part of life, that few question or rebel against it.Well I must say in all honesty that my views have changed along with a few others here as to worrying about the result or hardship of a dramatic day of reckoning. Now I almost welcome it as surely as it will happen. As you say we must all "get on board" and ride the train and if it goes thru Hells Canyon along the way, so be it. Be aware, be prepared, and lets get on with it and hopefully the worlds system of finance will change for the better......There is only hope for peaceful change in these respects, for God help the world if we must bear arms to take back the financial control of our lives.....Maybe we are witnessing this peaceful change right now thru the all encompassing war over Gold and all that it entails. If mankind cannot even control it's own financial system then what hope remains for the control of the political system?How else can mankind hope to even begin to unravel the stranglehold that the Banker/Banksters have choked society with other than by holding and hoarding Gold and Silver, paying cash for what we posess and excluding as much Bank control over our lives as the times permit. Sure we need currency to function, but we are falling into the NWO plan by using Plastic and thinking we deserve all we see even if it means a loan from that friendly Bank. (hey a toaster or airmiles) Like I say there's nothing more pervasive than the Banks and human nature dictates complacency. To 'Live Small' is to live happy & adds a little more freedom to ones' life.....IMHO....YGM."GO GATA"..............."Go Physical" Pippin (06/02/02; 15:32:09MT - usagold.com msg#: 77281) Japan's rating worsens again http://www.guardian.co.uk/japan/story/0,7369,725707,00.html Quote"The agency said the level of government indebtedness "will approach levels unprecedented in the postwar era in the developed world, and that as such Japan will be entering 'uncharted territory'." ..."Moody's predicted that domestic debt would worsen over the next few years but that several features would prevent Japan from plunging into a medium-term crisis. Among them were Japan's high household savings rate and the small scale of the government's exposure to foreign creditors."UnQuoteThe last point is interesting: I don't clearly understand how a high household savings rate can prevent a country to face crisis and deflation. Till now, in fact, I believed that it was part of the problem - in Japan's case at least.Can somebody explain this to me please ? Tnx. Black Blade (06/02/02; 14:25:07MT - usagold.com msg#: 77280) US recovery seems lost in the anxieties http://www.smh.com.au/articles/2002/06/02/1022982650200.html Snippit:The data may be there but the investors aren't, Caroline Overington reports from New York. There is no shortage of dopey analysts on TV in the United States. Take the psychologist who was last week called upon to explain where, oh where, was the recovery in stock prices that normally came with the end of a recession? "Well," he said, while stroking his long chin, "I think investors have issues."He is absolutely right, of course. Investors have issues with the fortune - about $US2 trillion ($3,515 billion) - they have lost on tech stocks and telecoms over the past 18 months.They have issues with analysts who tell them to buy stocks that they secretly believe are dogs or "pieces of crap".They have issues with accountants who fiddle the figures and then try to burn the books (or, in the modern equivalent, shred the evidence) when regulators come calling.But even before that, investors had issues with the dodgy advice they get. Indeed, some had reached the conclusion that many stock market analysts had no idea what they were talking about.Black Blade: As I have said repeatedly over the years, analysts are nothing by paid shills who work for companies that pump and dump shares – in short they work for legalized "Boiler Rooms". The phoney recovery touted on Wall Street is not translating into earnings. The USD keeps falling, foreigners are fleeing with their cash, the consumer and corporation is buried under crushing debt, and corporate profits have failed to materialize. No wonder Gold and Silver is steadily rising. Black Blade (06/02/02; 13:50:36MT - usagold.com msg#: 77279) Russian oil giant to deliver first crude to U.S. this summer http://www.signonsandiego.com/news/business/20020530-1224-russia-oil.html Snippit:MOSCOW – Russia's No. 2 oil producer Yukos will send its first tankers to the United States this summer, a top executive said Thursday, as part of a Russian effort to offer U.S. consumers an alternative to Persian Gulf oil. Russia currently supplies a tiny percentage of U.S. imports, but U.S. officials have expressed interest in increasing Russia's share of the market. Oil is Russia's chief export and oil export taxes are a big part of the national budget. "We plan to start pilot oil shipments to the U.S. East Coast or the Gulf of Mexico," Mikhail Brudno, first vice president of Yukos, was quoted by the Interfax news agency as saying at an investor conference. "For Russia to become a primary supplier to the U.S., it probably requires some additional infrastructure," Yukos chief financial officer Bruce Misamore said. "Some of the facilities that we need such as deep-water ports don't even exist." Black Blade: As stated in the article "….the move was largely symbolic and it is still far too expensive for them to ship large amounts of crude to American consumers." Also, "…. Russian producers can sell all their crude closer to home, it makes no sense to lose money by paying extra transportation costs." Besides, ME oil is much cheaper to produce and therefore the costs of transport more easily absorbed. WW Oracle (06/02/02; 13:31:12MT - usagold.com msg#: 77278) Gold and Silver return as money? Won't be long now! http://biz.yahoo.com/rf/020531/economy_argentina_cenbank_2.html Argentine companies now have to sell dollars over one million to the central bank. What can they do other than buy gold and silver with their rapidly-depreciating pesos? If Argentina had bullion coins they'd be on a pm standard already. All that's needed now is for someone to start bartering onzas for exports. slingshot (06/02/02; 12:46:08MT - usagold.com msg#: 77277) YGM MSGS.#77276/77275 Get on board. We are going to the POOR HOUSE! Read both your posts and the link attached. What more do you need to know for you to invest in Gold. What is fueling the economy? Image and Got to Have It syndrome. Don't worry about how much it cost, we can finance it at easy payments. Today people ride around in SUV's and can't make their house payments. But they sure look good in that SUV. In some cases the SUV cost more than their house. Misplaced consumerism. Two hundred dollar sneakers. Three hundred dollar video games. Got to have it.Years of TV advertisments. Easy credit at every turn.Somewhere along the line we lost it. Was it just parents trying to give the children a better life while imprinting they can pay for it all later? Well, this is turning into a rant. Enjoyed your posts.Slingshot---------------------<> YGM (06/02/02; 11:36:15MT - usagold.com msg#: 77276) Sunday Reading Room..... http://www.biblicaleconomics.com/ **Click Recent Articles Bar & Scroll down.Excerpt:A BIT OF LITTLE KNOWN MONETARY HISTORY Mar 2, 2001 Author: Tom Rose A BIT OF LITTLE KNOWN MONETARY HISTORYIt was the early sixties, the Kennedy Administration was in full swing with its pro-Keynesian monetary and fiscal policies, and the country still enjoyed the sparkling tinkle of real silver coins. We were not yet cursed with those clunky cupra-nickel dimes, quarters, and half-dollars. Anyone who wished could still go to their bank and trade a paper Federal Reserve Note for a real silver dollar that weighed a full three-quarters of an ounce of 90-percent pure silver. At that time I was serving as director of economic education for a state manufacturers' organization called the Associated Industries of Missouri, located in St. Louis, Missouri. The Monsanto Company, whose home office was also in St. Louis, had sponsored a two-week long economics seminar for mid-level executives to which I had been invited. There were 26 attendees, with the lecturer being a professor of economics from the University of Chicago, the citadel of modern monetarism. Things went well during the first week of lectures, while the topics centered on basic economics and labor relations. But when the discussion turned to monetary and fiscal policy during the second week, a deep difference in philosophy began to divide those in the meeting. I found myself pitted against the professor and the other 25 young executives. They all favored a high degree of governmental involvement in the economy and a steady policy of gradual monetary inflation to "keep the economy stimulated towards full employment." One day in the heat of discussion I pointed out that the federal government was at that very moment in the process of steadily inflating the money supply, and that this would eventually erode the purchasing power of the US dollar. The other attendees scoffed at this by claiming that the dollar would always be worth 100 cents! Agreeing that a dollar will always have 100 cents because it is officially denominated as being composed of 100 cents, nevertheless I pointed out that it did not necessarily follow that those 100 cents would buy as many goods and services ten years in the future if the federal government continued the inflationary monetary policy it was then following. In the early 1960s the money supply was expanding at approximately two percent per year, and the general price level was also rising at about the same rate. Today, of course, the money supply is being inflated somewhere between 8-12 percent per year (this still holds true in the year 2001, depending upon which monetary statistic one chooses as a guide! And the US dollar, as a result, has been falling in value relative to foreign currencies. It is interesting to note that, as this article was being written in the fall of 1994, the Federal Reserve Bank and the central banks of the other leading nations recently purchased some three billion of American dollars in the foreign exchange market in a vain attempt to prop up the price of the Dollar internationally. The long-continued monetary inflation pursued by the Federal Reserve since the early 1960s has slowly but surely served to weaken the desire of investors and monetary speculators to hold dollar-denominated bonds. For many years Federal Reserve officials have been wearing "false whiskers" when making public pronouncements: To the public, Federal Reserve officials have consistently posed as great defenders of the purchasing power of the dollar, but, in practice, they have insidiously served as compliant accomodators to a spendthrift Congress through the Fed's willingness to purchase more and more government bonds to monetize the federal government's spiraling debt. When both the lecturer and the other young executives hooted at the idea that the dollar would ever lose its purchasing power, I responded by telling them that I had been hoarding silver coins for some time and also had been taking silver certificates to the Federal Reserve Bank in St. Louis to exchange them for silver dollars. At this, the other attendees and the lecturer scoffed and retorted that I was engaging in a useless exercise. My reply was simple and direct: That the price of silver had been steadily rising. That soon the price of silver would reach the point where it would be profitable to take silver dollars and subsidiary silver coins and melt them down for sale as bulion. That at that point, we would see silver coins begin disappearing from circulation. My recommendation to them was to start hoarding silver coins and silver dollars too, for the day was soon coming when the silver coins would no longer be in circulation. This advice generated hoots of derision, to which I replied, "Remember this discussion ten years from now, then we'll know who is right and who is wrong!" ..........Cont'd YGM (06/02/02; 11:19:21MT - usagold.com msg#: 77275) Sunday's Daily Reckoning The Daily ReckoningWeekend EditionJune 1-2, 2002 Paris, FranceBy Addison WigginMARKET REVIEW: The Recovery IS Right On Track, Isn't It?The recession is over. Everyone who's anyone agrees. Your gloomy sourpuss editors might even be tempted to do the same. After all, who are we to stem the tides of progress?Still it's a funny recovery, indeed. While official reports for "productivity" put the economy on the speed train to Impressiveville... a short look at the balance sheets of America's household show that whatever gains might be had from increased productivity are lost on the American consumer.A report from the Labor Department released on Friday suggests US productivity grew at its fastest pace in almost two decades. "Strong productivity growth means that corporate profits are rebounding," Mark Vitner of Wachovia Securities told Bloomberg, "and that is probably the most critical element in a recovery right now." Still, according to Financial Times, the number of Americans "on the dole" this week reached a 19-year high this week. Nearly 4 million people are collecting unemployment on an ongoing basis, the highest number since January 15th, 1983.Likewise, if the economy is on the rebound what do you make of these figures: "The average U.S. household carries credit card debt of $8,367," writes colleague and friend James Boric. "Late payments on credit cards reached a five-year high in April 2002. And Write-offs by banks of uncollectable credit card debt have reached an 11-year high. Meanwhile, "personal bankruptcy filings are expected to hit an all-time high this year. Household debt for those 65 and older is up 164% over the last eight years. And according the Consumer Bankruptcy Project, about 82,000 Americans 65 or older filed for bankruptcy in 2001, up 244% from 1991." At this rate America's private balance sheets will have a dog's night in hell trying to get back to zero... let alone reach the positive wealth-building side of the ledger. And, suggests Dr. Kurt Richebacher, that throws a bit of a wrench into the recovery scenario.Dr. Richebacher: "In America, traditional economic thinking has it that the most important element of the economy's demand is consumer spending. There is an underlying view that as long as there is sufficient consumer demand, everything else, like profit and investment spending, will take care of itself. "Taken literally, this perception of the overriding role of consumption in the economic growth process implies reasonable disregard of anything else. In fact, disregard of profits and capital investment is the essence of American economics. Profits and the prospect for profits are almost solely of interest with respect to the stock market."The trouble with the recession-recovery scenario as proposed by this week's "news" is this: At the expense of consumer paychecks, corporations have made themselves lean, mean productivity machines. But when the mountains of debt begin to collapse and consumers are left gasping beneath them jobless - who's going to buy all the "stuff" we've produced?Okay, so I'm being a bit melodramatic. Besides there's always stocks to make the consumer whole again, right? The 'buy and hold' crowd seem to think so, at least. The Dow closed up slightly on Friday and managed to keep itself within an earshot of the 10,000 range. The Nasdaq only lost 45 for the week closing at 1,615 and the S&P 500 stayed in the game by trading sideways itself. The old lady of Wall Street closed down 16 for the week at 1,067.It's just... well, too bad... or at least aggravating... that corporate insiders don't agree. A report from Floyd Norris at the NYTimes reveals during over the last 8 weeks there have been 4.2 insiders sells for every insider purchase reported - the highest ratio on record than at any time since the bull market began in earnest during the '90s. So let me ask you this, if insiders are aren't buying the productivity-goosed recovery story... should you?Bon weekend,Addison WigginThe Daily Reckoning sector (06/02/02; 10:13:11MT - usagold.com msg#: 77274) The Hijackers We Let Escape Really Big Credibility Problems at CIA The CIA tracked two suspected terrorists to a Qaeda summit in Malaysia in January 2000, then looked on as they re-entered America and began preparations for September 11. Inside what may be the worst intelligence failure of all. A NEWSWEEK exclusive: By Michael Isikoff and Daniel KlaidmanJune 10 — Kuala Lumpur is an easy choice if you're looking to lie low. Clean and modern, with reliable telephones, banks and Internet service, the Malaysian city is a painless flight from most world capitals—and Muslim visitors don't need visas to enter the Islamic country. THAT MAY EXPLAIN WHY Al Qaeda chose the sprawling metropolis for a secret planning summit in early January 2000. Tucked away in a posh suburban condominium overlooking a Jack Nicklaus-designed golf course, nearly a dozen of Osama bin Laden's trusted followers, posing as tourists, plotted future terrorist strikes against the United States.At the time, the men had no idea that they were being closely watched—or that the CIA already knew some of their names. A few days earlier, U.S. intelligence had gotten wind of the Qaeda gathering. Special Branch, Malaysia's security service, agreed to follow and photograph the suspected terrorists. They snapped pictures of the men sightseeing and ducking into cybercafes to check Arabic Web sites.What happened next, some U.S. counterterrorism officials say, may be the most puzzling, and devastating, intelligence failure in the critical months before September 11. A few days after the Kuala Lumpur meeting, NEWSWEEK has learned, the CIA tracked one of the terrorists, Nawaf Alhazmi, as he flew from the meeting to Los Angeles. Agents discovered that another of the men, Khalid Almihdhar, had already obtained a multiple-entry visa that allowed him to enter and leave the United States as he pleased. (They later learned that he had in fact arrived in the United States on the same flight as Alhazmi.) Yet astonishingly, the CIA did nothing with this information. Agency officials didn't tell the INS, which could have turned them away at the border, nor did they notify the FBI, which could have covertly tracked them to find out their mission. Instead, during the year and nine months after the CIA identified them as terrorists, Alhazmi and Almihdhar lived openly in the United States, using their real names, obtaining driver's licenses, opening bank accounts and enrolling in flight schools—until the morning of September 11, when they walked aboard American Airlines Flight 77 and crashed it into the Pentagon. CLEAR FAILURE Until now, the many questions about intelligence shortcomings leading up to the attacks have focused on the FBI's clear failure to connect various vague clues that might have put them on the trail of the terrorists. Last week, in the aftermath of Minnesota agent Coleen Rowley's scathing letter ripping the FBI for ignoring warnings from the field, Director Robert Mueller announced a series of reforms aimed at modernizing the bureau.All along, however, the CIA's Counterterrorism Center—base camp for the agency's war on bin Laden—was sitting on information that could have led federal agents right to the terrorists’ doorstep. Almihdhar and Alhazmi, parading across America in plain sight, could not have been easier to find. NEWSWEEK has learned that when Almihdhar's visa expired, the State Department, not knowing any better, simply issued him a new one in June 2001—even though by then the CIA had linked him to one of the suspected bombers of the USS Cole in October 2000. The two terrorists’ frequent meetings with the other September 11 perpetrators could have provided federal agents with a road map to the entire cast of 9-11 hijackers. sector (06/02/02; 09:51:07MT - usagold.com msg#: 77273) Reginald Howe's Comments at the May 23, 2002 Association of Mining Analysts Conference: http://www.goldensextant.com/commentary21.html#anchor22027 "Money in Court…Paving the Road to Ruin"[…Where does that leave us? What's ahead? Three observations:POWER OF THE INTERNET. First, although the case was dismissed, the point was made. Even without pre-trial discovery under court procedures, the GATA army has produced ample evidence. It may never be presented in court, but much of it has been presented on the Internet. Facts speak for themselves. The allegations of the complaint are widely accepted because all the assembled evidence permits no other reasonable conclusion. We may never know all the details, but we do know to a virtual certainty that gold prices have been officially suppressed in a major way since sometime beginning around 1995. What's more, they have been rising steadily since the judge's March 26 decision, hardly a vote of no confidence in the truth of the basic allegations.POWER OF GOLD. Second, if gold were not permanent, natural money, I would have had antitrust standing just like the copper users and the soybean farmers did. What's more, if gold were the barbarous monetary relic that many like to claim, the G-10 central bankers would not have been so interested in rigging the gold market. Nor would they have tried to have their cake and eat it too by leasing huge amounts of gold for sale into the market rather than selling it outright.POWER OF THE CONSTITUTION. Third, the American Constitution is neither a technical legal document nor simply a declaration of rights. It is a plan of government. But it is not self-executing. Its power rests on the fidelity of the governed to the plan and to the wisdom that it embodies. The proof of Gladstone's statement lies in the results, which have been pretty good when the Constitution is followed, as happens most of the time, but not so good on the few occasions when it has been seriously violated.The nation's greatest constitutional convulsion -- the battle over slavery -- came in the one area where the plan could not be perfected at the time of its adoption due to irreconcilable sectional differences. More recently, the Vietnam experience demonstrated the folly of sending an army of half a million men, mostly draftees, to fight on the other side of the world without obtaining at least the practical equivalent of what the Constitution expressly requires: a declaration of war by Congress.At its most fundamental level, the Constitution provides for three branches of government -- legislative, executive, and judicial -- not four. It does not confer a separate banking power -- and certainly not the power to issue unlimited amounts of paper money -- on an independent central bank, let alone one that is effectively exempt from any serious judicial review. Yet in the real world, that is what exists today.The road ahead is the road we are on -- a road paved by the courts and already taken too far. It is, and it has always been, the royal road to ruin: the well-worn path which, as the framers of the Constitution knew from both history and personal experience, is traveled by all who chose government paper over gold or silver as their standard of value. ] mikal (06/02/02; 09:37:15MT - usagold.com msg#: 77272) Another Al Queda threat? http:/www.reuters.com/news_article.jhtml?type=topnews&StoryID=1038617 Report: Al Qaeda Tells U.S. to Get Ready for AttackJune 02, 2002 CAIRO (Reuters) - The pan-Arab daily al-Hayat published Sunday what it said was a statement from an al Qaeda spokesman warning the United States to get ready for another attack. "What is coming to the Americans will not, by the will of God, be less than what has come," the newspaper quoted al Qaeda spokesman Sulaiman bu Ghaith as saying in a statement. "So beware, America. Get ready. Get prepared. Put on the safety belt," he said in a statement al-Hayat said was published on the www.alneda.com Web site. The Web site, which has in the past regularly carried news on Afghanistan and statements it said came from Taliban leaders, could not be accessed immediately by Reuters. The site published a statement in April it said was from Taliban leader Mullah Mohammad Omar. Bu Ghaith, a Kuwaiti-born cleric who emerged as an al Qaeda spokesman after the Sept. 11 attacks on New York and Washington, said al Qaeda would continue to hit Americans, Jews and their targets, either "individuals or institutions." .....click link for more...... This story appears fabricated in the growing tradition of intelligence agency disinformation. What it lacks in details, it definitely doesn't compensate for in originality. Chrusos (06/02/02; 09:28:53MT - usagold.com msg#: 77271) Sippets and gold humour www.dailyreckoning.com Been so busy I am about 100 emails behind. Thought the forum would enjoy these extracts from the abve free newsletter. Bill Bonner and Eric Fry are as entertaining as ever!Best wishes to all fellow goldbugsChrusosFor all the fireworks in the gold market, it remains a remarkably petite sector. The global gold share market is only about $70 billion, and that's after the massive rally that has occurred over the last few months. What's more, the open interest of all gold futures contracts currently trading on the Comex totals little more than $6 billion.- The universe of gold stocks and Comex open interest combined totals less than $80 billion - or less than half of Intel's $191 billion market capitalization. ********"At the end of 2001, outstanding credit in the United States totaled almost $29 trillion," Dr. Kurt Richebacher observes. See:******- Part of gold's growing appeal is that it has no CEO. It has no chairman of the board, and most of all, it has no option-laden management team. It is simply "Gold." And that's a refreshing change for investors who have grown tired of suffering abuse from self-serving corporate managements **********Everyone's talking about gold...still, only 1% of mutual fund industry assets are in gold. Who knows what would happen if mutual fund investors ever wanted 2% of their assets in gold! Or Japanese investors, even... "Japanese buying of gold is tiny," writes Marc Faber, "when compared to the country's GDP per capita. Japan currently imports only about 100 tons of gold annually for a population of 120 million with a GDP per capita of more than US$35,000. Compare this to India, which imports close to 900 tons of gold for a population of one billion but with a GDP per capita of only around US$300! "Compared to India's purchases with a far lower purchasing power, Japan's gold buying has so far been very small, but it could rise significantly in the future and become a price-driving factor in the gold market - The buzz these days is about gold, and the higher its price climbs, the louder the buzz. Yesterday, the yellow metal coasted to its sixth straight winning session - up $2.20 to $318.30.- Most of the buzz about gold focuses on that age-old debate: Is the rally almost over or just beginning? No one knows, of course. But everyone has an opinion. Even CNBC is spewing nonstop nonsensical blather about the gold market. From a contrarian standpoint, CNBC's 24/7 gold market coverage is bad news for the gold price. The good news, however, is that almost all the "experts" appearing on TV dismiss the gold rally as a fleeting event.- In the eyes of most CNBC talking heads, the gold market's recent strength is freakish - like a two-headed billy goat. Gold stocks may be more popular than they used to be, but they are far from popular.- It's been a lot of fun to watch mutual fund managers and financial journalists try to grapple with something as alien as a gold rally. Much of the "analysis" is comically uninformed. One financial commentator mentioned gold "ig-nots" a couple of times, when he meant to say "ingots." We would have to assume, therefore, that the commentator is an "ig-not-ramus" about the gold market. He seems to have plenty of company. mikal (06/02/02; 09:17:03MT - usagold.com msg#: 77270) From USAGOLD News Feed http://quote.bloomberg.com/fgcgi.cgi?mnu=news&ptitle=To... Employment Rises, Manufacturing Expands: U.S. Economy By Carlos Torres and Terry BarrettWashington, June 2 (Bloomberg) -- U.S. companies added workers for a straight second month and manufacturing expanded in May, evidence the economic recovery is taking hold, reports this week will probably show................ ``The economic recovery does appear to be developing staying power and even gaining momentum,´´ Lynn Reaser, chief economist at Banc of America Capital Management in St. Louis, said. At the same time, the jobless rate probably rose last month to 6.1 percent, the highest in almost eight years, from 6 percent in April. Unemployment often increases at the start of a recovery because people start looking for jobs and companies remain cautious about hiring. The economy is likely to expand at a 3.1 percent annual pace this quarter after growing at a 5.6 percent rate from January through March, according to the latest Blue Chip Economic Indicators forecast. For the year, the economy will probably expand 2.8 percent, compared with 1.2 percent in 2001......................... -- The Commerce Department will probably report on Friday that inventories at wholesalers rose 0.1 percent in April, the first increase in 16 months, as distributors replenished depleted stockpiles. -- Also on Friday, the Federal Reserve is expected to report that consumer borrowing rose by $6 billion in April after a $4.6 billion increase the previous month.....Tuesday, June 4 Montreal: Federal Reserve Chairman Alan Greenspan participates in a panel discussion on central banking at the International Monetary Conference....(click link for more) EVERYTHING'S fine, now didn't we tell you, WHAT recession?, not in the world's superpower, now just lay back down on that couch. mikal (06/02/02; 07:48:06MT - usagold.com msg#: 77269) @CavanMan I noticed that too. The INO gold quote, on top of this page, is the nearby contract month, the July futures price. The change from Friday's NY close must have occurred in an Asian (Singapore?) or an Arab market on Saturday. Clint H (06/02/02; 07:26:54MT - usagold.com msg#: 77268) Golden Bear (06/02/02; 06:50:43MT - usagold.com msg#: 77266 --Explained beautifully by Greg Pallast at link above... Everything written is not necessarily true. Half truths sell. DYODD. Cavan Man (06/02/02; 07:11:48MT - usagold.com msg#: 77267) POG Where is POG rising at this hour? Golden Bear (06/02/02; 06:50:43MT - usagold.com msg#: 77266) Nomad (msg#: 77265) Argentina to Slowly End Bank Freeze http://www.gregpalast.com/detail.cfm?artid=125&row=1 The article states that the Argentines are about to strike a deal with the IMF for emergency funding to "ease" the crisis.Looks like they want another dose of destructive IMF idiocy at the their expense, and the IMF cronies will pick up Argentine assets for even cheaper than they are now.Explained beautifully by Greg Pallast at link above... and the name Enron reappears, and the jigsaw fits into place why Cheney will not disclose documents to congress regarding the meetings with the energy executives... welcome to our brave new fascist world.snippit:"....GP: Yea, gregpalast.com. So then they backed off and said yea those documents are authentic but we are not going to discuss them with you and we are going to keep you off the air anyway. So, that's that. But what they were saying is look, you take a country like Argentina, which is, you know, in flames now. And it has had five presidents in five weeks because their economy is completely destroyed.AJ: Isn't it six now?GP: Yea, it's like the weekly president because they can't hold the nation together. And this happened because they started out in the end of the 80s with orders from the IMF and World Bank to sell-off all their assets, public assets. I mean, things we wouldn't think of doing in the US, like selling off their water system.AJ: So they tax the people. They create big government and big government hands it off to the private IMF/World Bank. And when we get back, I want to get to the four-parts that you elegantly lay out here where they actually pay off the politicians billions to their Swiss bank accounts to do this transfer.GP: That's right.AJ: This is like one of the biggest stories ever, Sir. I'm sorry, please continue.GP: So what's happening is - this is just one of them. And by the way, it's not just anyone who gets a piece of the action. The water system of Buenos Aires was sold off for a song to a company called Enron. A pipeline was sold off, that runs between Argentina and Chile, was sold off to a company called Enron.AJ: And then the globalists blow out the Enron after transferring the assets to another dummy corporation and then they just roll the theft items off.GP: You've got it. And by the way, you know why they moved the pipeline to Enron is that they got a call from somebody named George W. Bush in 1988..." Nomad (06/02/02; 04:42:28MT - usagold.com msg#: 77265) Argentina to Slowly End Bank Freeze http://story.news.yahoo.com/news?tmpl=story&cid=&ncid=721&e=6&u=/ap/20020601/ap_on_re_la_am_ca/argentina_banking_freeze_6 Excuse MY French but ... What complete B*llsh*t !!!The title should read :Argentina Bank Deposits are History !Snippit :BUENOS AIRES, Argentina (AP) - Argentina announced an ambitious plan Saturday to slowly phase out a hated banking freeze, offering savings-account holders a choice of bonds maturing in between three and 10 years. Belgian (06/02/02; 02:41:38MT - usagold.com msg#: 77264) The US$ The US$ has been but will not remain, the practical confetti,used to settle trade between those who produce *REAL* products and those who consume this products. The gap between these two different groups of dollar-exchangers is widening dramatically. Real Production of Real goods has shifted out of the hands of those (westerners) who represented (backed) the intrinsic value of this US$-practical. This enormous discrepancy goes much further than the US trade deficit alone. The complacent capitalistic West (Euroland included) has nested itself into this *systemic*, "one" way street. In so many places on this globe, tonnes of sweat, humidify disgracefull poverty.This deepening contrast between real producers and drunken consumers, remains relatively invisible. WAT is instrumental for adding more and more cover producing more of this opaque "invisibility". Modern enslavement and subtle exploitation only to be realized by world-citizens with a gifted minimum of objectivity. This tactical play (?) is still loudly covered with that old culture of paternalistic "do good" blahblahblah. But MUCH more is taken than is given. A dramatic dis-proportion. An explosive dis-harmony.Gold and the possession of it, is easely understandable for those producing "new" masses of real goods of today. That makes Gold such a very dangerous competitor for our substitutional confetti. The dollar, as reserve currency in an expanding trading world, has been condemned to raise all efforts possible for maintaining a certain degree of "blind" confidence in it. A dollar-paper, outside the consuming West has a dramatic other meaning. It is considered as the ultimate store of tiny small surplusses out of all this billion gallons of new producer's sweat.When the POG, should only give one little universal signal, that there should be a reason to doubt about its "real" value...the systemic construction of modern slavery would collapse. All those so very, very different "dollar-holdings" would be put into question. Yes, indeed the US$ is "overowned" by officials and individuals as well! And it is on a dangerous global scale. Those broadly dispersed "trillions" of dollar-savings/unfunctional surplusses (???) do NOT represent future value for future REAL products. Too much paper for a disproportionate amount of real products still to be (impossibly) produced by the new majority of new producing dollar holders.All these dollar - holders, worldwide, don't dare to stare this threat into the eyes. No one dreams of getting Argentinized. But we already are !Euroland continues to work on its escape from the final resulting dollar distrust and collapse. The majority of Real producers has no such escape valve, other than the universal refuge into Gold. Some have already embrased Gold's refuge against their respective sweat-currencies.But the worst has still to come with the dollar-collapse, where I do suspect that all other currencies will lose purchasing power within that reckoning global hyperinflation, Yes HYPER !.The underlying fundamental for this intuitive prediction is the arrogant complacency of *consumerism* exploiting honest productive sweat (blood will be added soon). Being sincerely honest with oneself...we are getting more and more for less and less effort. Great...but NOT sustainable ad infinitum ! Timing, Belgian...do we have a clue on timing ? Yes we have ! Almost zero interest rates in the dollar-block and $ confetti almost for free on condition you do something/anything with it ...whatever...consume or start another nonsense (not real productive) enterprise!When we capitulate (hughe rising interest rates), Gold will automatically break FREE ! Capitulate, when the "system" breaks down under its own weight. When REAL GOODS start to value the confetti in use. When the fata morgana of "free trade" has been unmasked, by the means of unrevivable, dying global contraction and hyper-concentration for the mighty few. It is n this global context that China/Russia/Eurasia and the Middle East are going to be extremely important to decide on our future. WAT is a very, very BAD starter for an integrated future of new versus old!This will / must and shall go WRONG ! A nice weekend, nevertheless. Waverider (06/02/02; 00:20:03MT - usagold.com msg#: 77263) Survey sees strong recovery for silver in 2002 http://www.bday.co.za/bday/content/direct/1,3523,1092476-49567233-0,00.html Snippit:"Global demand for silver is expected to recover strongly over the rest of 2002, thanks to the global economic recovery, according to the World Silver Survey 2002, which was released on Thursday. Although the structural deficit between fabrication demand and conventional supply (mine production and recycled scrap) was 89.4 million ounces in 2001, the survey noted that this gap was almost entirely filled by the net government stock sales. Chinese government sales accounted for 75% of the world's total of official stock sales, but the survey concluded that China does not have the capacity to supply indefinitely the market at the kind of levels seen in the past three years. Moreover, the U.S. Defense Logistics Agency transferred its remaining silver stockpile to the U.S. Mint for its coinage programs during the course of 2001. The U.S. Mint is now exploring legislative authority to purchase silver from the open market for its silver coinage programmes." Waverider: Interesting fundamentals for Silver...does anyone know how much silver the US Mint uses each year? TIA! ViewYesterday's Discussion.
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