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Welcome to the USAGOLD Gold Discussion Archives. The archives of this gold discussion forum are a treasure trove of information to educate investors about protecting their wealth through portfolio diversification with private gold ownership. The discussion forum also covers the wider issues of the past, present, and future role of gold in international monetary policy and the dynamics of the modern gold markets...   (Discussion Forum Hall of Fame) (The Gold Trail) ("Thoughts!" by ANOTHER)   The opinions posted by all guests are expressly their own and do not necessarily represent the views of the management or staff of USAGOLD - Centennial Precious Metals. The hosting of the public discussion shall therefore not be construed as an endorsement by USAGOLD - Centennial Precious Metals of any of the opinions posted here.

FORUM ARCHIVES

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WELCOME TO THE ARCHIVES!

ARCHIVED DISCUSSION FROM 7/1/2000
All times are U.S. Mountain Time

(Yesterday's Discussion.)

Sierra Madre (07/01/00; 23:34:26MT - usagold.com msg#: 33091)
De Gaulle's reference to "extravagant privilege"
What the General was referring to, was the privilege which the U.S. and Britain granted to the U.S., of having its paper money (which was at that time fiduciary media, that is to say, notes PAYABLE in gold at one ounce per $35 U.S Dollars) to be considered as prima facie reserves on the books of whatever foreign Central Bank happened to acquire these promissory notes of the Federal Reserve,AS GOOD AS GOLD. The "extravagant privilege" comment referred to the fact that no other country in the world could send its promissory notes abroad, to be used as reserves,in the Central Banks of the World.
This meant that the U.S. could purchase whatever it pleased in the world, with money issued by the Federal Reserve, essentially only promises to pay gold; after purchasing whatever its citizens, corporations, banks, etc could wish to purchase, these purchases were (and still are!) paid only with promises. This "extravagant privilege" could be made a little easier to understand with a simmpler term: "FARMING THE WORLD".
The U.S. Dollar as reserve currency of the world, is the greatest scheme of looting ever devised by the mind of man.
At present, the U.S. is looting the world at the rate of over $400 billion a year (trade deficit), which is the Dollars that go abroad to "pay" for imports to the U.S. And now, of course, the Dollars are no longer redeemable in gold - just papers! So it's an even more "extravagant privilege". (From fiduciary media, to fiat money)
Actually, there is no payment until an equal amount of goods flows from the U.S. to the rest of the world. Until that time, this process is simply tribute collected from a largely willing, because ignorant, world. That's the great U.S. economy, whose experts attempt to show the rest of the world how to do things.
Well, they can't show the rest of the world, because the rest of the world has to take the Dollars as reserves, or else...devaluation, financial collapse, capital flight, political destabilization.
That's the "extravagant privilege". But, what goes around comes around: the result is similar to what happened to the Roman Empire: the looting from the rest of their conquered world displaced working people and destabilized their agriculture, and created masses of idle Romans who had no employment and relied on the imports of wheat (by the Imperial Government) from Egypt to eat. They didn't have T.V. but they had circuses...paid for by the State.
Hope this piece helps someone understand a little more!

Journeyman (07/01/00; 22:36:36MT - usagold.com msg#: 33090)
Why has the word "inflation" become confusing?
http://www.mises.org/humanaction.asp

Question 1: Why has the word "inflation" become confusing? What
are the results of this confusion?

The semantic revolution which is one of the
characteristic features of our day has also changed the
traditional connotation of the terms inflation and
deflation. What many people today call inflation or
deflation is no longer the great increase or decrease
in the supply of money, but its inexorable
consequences, the general tendency toward a rise or a
fall in commodity prices and wage rates. This
innovation is by no means harmless. It plays an
important role in fomenting the popular tendencies
toward inflationism.
+
First of all there is no longer any term available
to signify what inflation used to signify. It is
impossible to fight a policy which you cannot name.
Statesmen and writers no longer have the opportunity of
resorting to a terminology accepted and understood by
the public when they want to question the expediency of
issuing huge amounts of additional money. . . .
+
The second mischief is that those engaged in
futile and hopeless attempts to fight the inevitable
consequences of inflation--the rise in prices--are
disguising their endeavors as a fight against
inflation. While merely fighting symptoms, they pretend
to fight the root causes of the evil. Because they do
not comprehend the causal relation between the increase
in the quantity of money on the one hand and the rise
in prices on the other, they practically make things
worse. . . .
+
It is obvious that this new-fangled connotation of
the terms inflation and deflation is utterly confusing
and misleading and must be unconditionally rejected.

-Ludwig von Mises, Human Action A Treatise on Economics, Third
Revised Edition (Chicago, Illinois: Contemporary Books, Inc.
1966), pg. 423 [XVII. INDIRECT EXCHANGE 6. Cash-Induced and
Goods-Induced Changes in Purchasing Power -available also from
http://www.mises.org/humanaction.asp]

Regards,
Journeyman

In case you tuned in late, this post is Mises "answer" to
question 1. of the following six posed in an earlier post:

1. Why has the word "inflation" become confusing? What are the
results of this confusion?

2. What did Charles DeGaulle mean by "extravagant privilege?
What's another little-used word for it? What would happen if
"the privilege" were exercized world-wide?

3. Did markets and the people choose paper money over gold? If
not, who did?

4. Does government/Federal Reserve monetary control serve the
common good?

5. Is there enough gold for the world to go back on the gold
standard?

6. Is gold too expensive to be efficient for use as money?


Aristotle (07/01/00; 21:34:21MT - usagold.com msg#: 33089)
Excellent commentary, and excellent timing
Perplexed,
that was certainly one of the finest offerings I've seen at the forum, whether it be on or off the topic of Gold. Your post IS Gold! Seeing your political philosophy laid bare as such, I am even more pleased to have seen you weigh in during the past as a ***supporter*** of the FreeGold scenario.

All my best to you on this Independence Day weekend.

Gold. Get you some. ---Aristotle

Perplexed (07/01/00; 20:21:57MT - usagold.com msg#: 33088)
Lest we forget Thanks RAP for message 33057

DEMOCRACY--I WANT--THEREFORE I'M ENTITLED


Common sense, as well as experience tells us that:
# 1, everything, including government, must have a source, or creator. # 2, the created is forever subservient to
the creator. # 3, the human race, created in the likeness and after the image of a creator capable of self government and self determination, inherited these capabilities, and thus acquired the attendant responsibilities.

To Thomas Jefferson, the author of the Declaration of Independence, the absence of individual right to life, liberty and property, relegated birth to the status of an exercise in futility, he concluded therefore, that they must have been an endowment of our Creator.

The protection of these endowments became the basis of a radically new form of constitutional government. As an interpretive aid, our nations founders later spelled out
the philosophy behind this document in an addendum which came to be known as the Bill of Rights. However, because circumstances of the time precluded its establishment, the
complete government envisioned in the Declaration of Independence is still in our future.

The caterpillar must die, that the butterfly may emerge, and so it is with government. The human race, as beings created in the image of our creator, at any given time, are limited only by the scope of knowledge available at that particular time. We are on an endless and unlimited journey, and, at this time, neither perfect science, nor, perfect government is possible. As our level of knowledge multiples, so also does our options; in the interim, existing knowledge serves to meet the challenges of a particular time, place, and circumstances, in an ever changing present.

While the concept of self determination was, in my opinion, revealed by inspiration of God, the government required to fulfill this Godly mission was not miraculously created. It was to be a work in progress, constructed bit by bit, involving billions of people, with no time restraints, until it extended world wide. Though in constant, evolutionary flux, at any given time, the government required for the next step down the path will have evolved sufficiently to meet the continuing challenge.

As the government given birth by our nations founders comes of age, and gradually sheds its democratic cloak, mankind will take a giant step down the road of government evolution, toward a more perfect government.

But a democracy is the perfect government, our President glorifies it, our preachers create surmons around it, our teachers proclaim it in grade school, university degrees are bestowed upon it, and even Tom Brokaw confirms it from my television.

O.K, if they are right, then why was it, rather than the republican form of government, not guaranteed in our Constitution? I'll ask one of them: Mr. Madison,
we know that it was considered at the convention, so why didn't you just create a government of majority rule? His reply per the Federalist Papers: Democracies have ever
been spectacles of turbulence and contention and have been found incompatible with personal security or the rights of property, and have in general, been as short in their lives as they have been violent in their deaths."

This statement, based upon a long knowledge of history, was short and to the point; words of wisdom which have been with us for over two hundred years; an admonition which we apparently do not believe worth pondering, and certainly not worth following, as we continue to build "our democracy," and wonder why our nation is in turmoil.

As current conditions continue to validate Mr. Madison critique of democratic government, perhaps an analysis of our brief experience with it will tell us why he has
proven so successful a prophet. This analysis begins with (a.) the Constitutional guarantee of a republican form of government to every state; (b.) a determination of exactly what is comprised by the term" republican," and (c.) a reference to the first ten amendments to the Constitution.

The basis of our government is not the Constitution, it is the Declaration of Independence. According to this document, the protection of individual rights is the purpose of government, the Constitution was written to accomplish this task.

The amendments, known as the Bill of Rights, offers an absolutely infallible platform from which to determine exactly the definition accorded the term "republican
form of government" by the "experts" themselves, the founders of our nation. We find: Every one of these amendments takes power from the mass, and deposits it with the individual. They build upon the standards set forth by The Declaration of Independence which recognizes the existence of a creator and further states the purpose
of government to be the security of the endowment of rights, to life, liberty and the pursuit of happiness.

Because we are created individually, not in mass, these
endowments originate at the individual level, and apply to all mankind at this level. Just remember, they are not gifts, they are required elements for self determining
individuals, the purpose for which were created.

These principles are borne out by the Declaration of Independence, which states, that any government created to secure these endowed rights, is to be established, not by
the creator to rule the created individual, but by the created to govern themselves, deriving its just power from the consent of the governed. Because the endowments of
life, liberty and the pursuit of happiness, pertain to the created individual, the term, "governed", is imbodied, not in the mass, but, in full measure within each individual.
* This was considered blaspheme by the Christian Church of the time. They taught that government was a creation of God; they performed Coronations of Royalty,(and still do) and decreed that the individual was obligated to submit to those in government who had the "rule" over them.*

According to the government our founders selected, this consent, is delegated,not as surrendered rights, but as authority, to citizen representatives, chosen by majority ballot, who then comprise the government; thus, the will of the majority extends only to the selection of those hired to serve as our representatives. They then derive their just authority as well as limitations from their employment contract, the Constitution, (but only after taking an oath of obedience to that document).

Because individual rights existed prior to the Constitution the term Constitutional Rights is a misnomer, the individual citizen enjoys Prior Rights, Constitutionally guaranteed, there is a vast difference.

The only rights created by the Constitution, were those necessary for the function of government, which were then delegated to the representatives as authority. They become enhanced rights when exercised within the parameters set forth by the Constitution, in which case, those enumerated rights, do indeed take precedence over individual rights, voluntarily subjugated to government.

The responsibility of hiring those suited to the task, including education and character, rest with us, the governed. If, through usurped authority, or for other reasons, the government becomes detrimental to the welfare of the individual, the duty, to either alter or abolish it, and the establishment of another, which in our opinion, is suited to the task, also belongs to we, the governed:
Per The Declaration of Independence.

In essence, we are the governors--Governor.

Under this system, government is entitled only to the authority possessed by each individual citizen, that which doesn't exist individually cannot be delegated massively:
translation: If I personally cannot take your home, car, or gun, then neither I nor you possess anything to delegate to our representative. (1,000,000 x 0 equals 0)

This barrier to majority rule, represents the stabilizing factor necessary to fulfill the mission of a just, thus peaceful, governed society. Are these conclusions borne out
by actions of our nations founders? Yes! As previously noted, the first nine amendments to the Constitution were specifically written to deprive the government of rights, while the tenth was intended as unambiguous insurance against "interpretive" license.

Do circumstances arise within a Republic in which the welfare of the mass takes precedence? Yes. And they are provided for within the Constitution.

A COMPARISON TO WHAT WE NOW HAVE

Mr. Madison's statement recognizes the folly, and anticipates the answers to questions that cut to the very heart of direct democracy. As an example: In a democratic
nation, what percentage of the electorate should be required to empower the government to confiscate Private property? Private Industry? Private land? In the final analysis does
the initial figure really matter, it can always be changed by the will of the majority, right?

Our founding fathers were also aware of the fact, that the basic principles of democracy treat all created wealth as common wealth, to be used at the sole discretion of
those currently in power. Representatives of government thus must find the means of harvesting the wealth, as well as determining the amount to which each citizen is entitled.

It takes no genius to associate money spent at the right time and right place, and re-election. Ad the: "I'll vote for your pork if you vote for mine", and the "yes I know it
violates the Constitution but this is an emergency", plus the outright prostitution of the office to special interest, and you have four, of an endless list of causes, for the failure of the democratic form of government

Authority bestowed to selected individuals through the deferral of rights, is itself mitigated by restrictions, natural limitations, and common sense application, to be a given. Because self government of the mass must derive from self governing individuals, behavior, if abhorrent to the
individual citizen must also remain abhorrent to the citizen representative. Society, merely for convenience or desire, cannot exempt the mass, nor those formulating and enforcing the law, from that law, without also exempting the individual.

When was the last time any member of our "democratic" government was subjected to this standard? The last time I checked, it was being run according to "polls" taken to determine what exactly the citizens will allow the representatives, including the president, to get away with. The list included, but was not limited too, perjury, conflict of interest, coercion, witness tampering, bribery, breach of national security, immoral conduct, sexual harassment and influence peddling at every level and department of government.

The necessity of enforcing any law, although approved by the majority, with the effect of taking life, or appropriating the value of private property without just
compensation, precludes its universal acceptance. Regardless of the "democratic " approval percentage, because the law derives from authority which doesn't exist, it becomes a criminal act by society, compounded by enforcement procedures.

Any procedure, purposely designed to ensure the legality of the taking of life or property by individuals or society, is not only unlawful, but rather, by institutionalizing a precedent, serves to compound the act. After all the I's have been dotted, T's crossed, and the guns of " law enforcement " used to finalize the proceedings--theft remains theft--society's credibility and thus its viability is compromised--the individual assumes the same " might
makes right " attitude, and the rush toward oblivion accelerates. The events in Waco by government and the bombing in Oklahoma City by individuals are very vivid examples.

In a democracy the power belongs to those in the position to influence public opinion, the press in effect become the "King Makers". Is there any doubt that in a society which gets most of its news from television, that we are being "educated" as what to think, and what we want.

We are being offered our " choice " of purchased, packaged,
and merchandised politicians. According to our vote, or lack thereof, one of these "chosen " few becomes a part of our "leadership," and they in turn are influenced by the
polls to " give " us what we have been educated to won't, even if it requires taking it from someone else--this is "capitalist democracy" in action, the reality of majority rule.

Even in its limited form, it has crippled our government's ability to govern, as the escalating chaos,
violence, and barbarity attest.

Because trust is the glue which binds a free society. Just as society enjoys the right to expect the individual to honor the trust invested in them, the individual enjoys the
reciprocal right of being granted trust by society, until they, by their actions, prove unworthy of that trust. If the penalty for individual breach of trust is the loss of respect by society, then the opposite is also true. If failure to exercise individual self government constitutes a crime against society, necessarily resulting in the loss of individual sovereignty, then the stripping of individual rights without just cause or due process, constitutes a criminal act by society. Consequently, just as a criminal act by the individual results in status transformation, the same is true as it relates to society. As surely as the
advantages of obeying the rules of society is destroyed, chaos replaces tranquillity

One of the laws of physics states that for every action there is and equal and opposite reaction. This same principle applies to society. Every unlawful act, whether by the individual or government representative is replete with consequences. If the individual perpetrating the crime is not required to suffer the full consequences of his or her actions, then society picks up the tab. Every time some judge puts another criminal back into our midst, he is transferring the consequences of the crime, to the society.
How much more turmoil must we subject ourselves too before we recognize this fact? How much farther must our society deteriorate before we began to understand that
every time we utilize the "democratic shield" to shelter government representatives from the consequences of their actions, we tear another hole in the fabric of our society? How can we condemn our children for their lack of respect for the common laws of the land, while displaying our own contempt for these laws by disregarding them when perpetrated by "government"?

James Madison made the statement at the birth of this nation that: "This Constitution is suitable for governing a moral society, and is wholly inadaquate to govern any other." Again Mr. Madison has proven to be a very accurate prophet. Criminal activity within our society has become so prevasive, and our criminal justice system so complex and expensive, that we must now make "deals" with the most vile of criminals because we can no longer afford to prosecute them, nor to adaquately incarcerate those which we do manage to convict.

And Mr. Madisons Constitution? Well our judges just interpret it to accomodate the current situation and prevailing form of government. Even as our federal government grows progressively more powerful and exponentially more corrupt, a few of us were still
alarmed by an utterance of our "Vice" President "that he is bound by no controlling legal authority," however, most of our fellow citizens appear to have recognized and accepted this statement of truth, as old "news."

Unfortunately this truth is applicable to our entire federal government. No one in authority, is willing to hold another in authority, responsible for their conduct, a condition
which elicits and interesting question: In a nation whose welfare is predicated upon self government, if individuals elected to serve in government are devoid of this attribute,
and, additionally recognizes no external controls over his or her conduct, doesn't it follow that this conduct becomes a conduit, by which the poison of lawlessness is transmitted to the whole of society?
The culprit we are told is an outmoded Constitution which must be constantly re-interpreted. To a degree this is true, the Constitution was far from perfect, The flawed rendering of the term "all men", as contained in the
Declaration of Independence, in the restrictive gender connotation, rather than "mankind" the inclusive species interpretation cost us a war plus 140 years of evolution. This hypocritical failure to implement through government, the previously stated intent of the creator, that every individual, regardless of race, creed, color or gender, was created with the ability, and thus the responsibility, of self determination, guaranteed the war that was to follow 70 years later, as well as its result.

Until we are all entirely free to reach for the endowment of our creator, the brass ring of peace, will remain just out of reach of us all.

THE CATIPILLER IS DYING BEFORE OUR EYES, LETS PRAY FOR A SUCCESSFUL BIRTH OF THE BUTTERFLY!
Still perplexed

The Invisible Hand (07/01/00; 19:51:30MT - usagold.com msg#: 33087)
TG's return
Before he started travelling, TG told us that, upon his return, the gold trail would be red hot.
I would like to know when TG will return.

Aristotle (07/01/00; 19:28:55MT - usagold.com msg#: 33086)
Loose ends
http://www.usagold.com/hall/hallfame2.html
ORO, sorry for the poor continuity in my attempt to engage you in discussion regarding some of your comments. Over two weeks ago I had asked you to more clearly define the meaning of the lie that governments and banks sell to the public as stated in your latest Hall of Fame entry, and only now am I getting around to this intended follow up. I hate to come across as being nit-picky, but we have so thoroughly covered the fundamentals, discussion of nuances and details are seemingly all that's left to us.

As it is, I have misgivings about the applicability of this "selling a lie" notion of yours -- while at the same time I do certainly acknowledge that it makes for good copy ("sex appeal") here at a forum of gold advocates such as myself. As a reminder, you said, "The public has been sold both the fiduciary gold and the fiat debt money as supposedly workable monetary systems. Governments and banks know this is not the case." Unfortunately, in my specific case, this now falls on deaf ears. I have for a long enough time in years past beaten my head against the wall trying (in vain) to "expose the fraud" of paper money, and yet the unavoidable and "inconvenient" truth of the matter was that the relatively smooth functioning of the marketplace in modern days has proven this position to be wrong. Let's face it--every real Gold advocate would call for the immediate collapse of each and every paper currency, and must admit consternation or else claim some form of sorcery from the "powers that be" with each passing day that paper currencies continue to function. I used to be among this crowd. (I will offer some more posts on this topic later.)

This is not to say that paper currencies are as good as Gold. Far from it. But as I look around with untainted eye, I fail to see the masses that are accepting paper dollars against their will. To the contrary, most people would love to have many more of them. And as long as that is the case, the "lie" you propose to exist seems to have given way to something else. It would seem that each passing day for several decades would serve as testimony that "fiduciary gold and fiat debt money as supposedly workable monetary systems" have not only been "workable systems," but must in fact be declared as incredible successes in the minds of us sceptical Gold advocates in particular. [We see this as just cause for your own reevlauation, ORO, as you suggested in your HoF post--"Quite frankly, the detachment of gold from the currencies would eliminate the benefit of having them. Any attempt to inflate would destroy the currency values."] As it is, and as the world seems to function in modern times, I had to change the lenses through which I viewed the world in order to make sense of it all and to proceed forward with anything approaching a sane and rational existence. To insist daily that the Sun cannot workably rise in the East, contrary to daily observations, is to surely get oneself committed to an institution. Perhaps your own error is in thinking that a "workable" system has to be the BEST system, which it decidedly does not have to be, and currently is not.

To be sure, some "modern" currency systems have had better track records than others, but even the worst among them have worked, and the people using such systems quickly adapt to either use it to their advantage or else make the best of what it has to offer. But of course, you would have me believe instead that the following dictum is at work: "You can fool all of the people some of the time, and you can fool some of the people all of the time--and that is usually good enough." My personal view of the situation is that there is no "selling" and no outright "lying." Instead, we have various systems in use throughout the world, and as with any diverse population of people, we have diverse levels of understanding with regard to the nature of their currency system and its relationship to real wealth. Those with regular exposure to the most unstable of workable currency systems have had little trouble seeing things for what they are. Ask them if they are being "lied" to, and the answer will surely be, "No." Similarly, we are not being lied to in America. It's just that the general level of optimism or contentment regarding the "infallible dollar" is perilously high and firmly entrenched in the minds of many who would do well to recognize the potential for a downside. With such awareness comes the natural desire for individuals to diversify into Gold as their form of wealth savings. Herein rests Gold's untapped potential for an astounding rise in both price and relative value.

There were two other items I wanted to raise about your post. You wrote--"1. Gold IS THE MONEY: The core of the financial system is gold." Here I beg to differ. I would suggest that the core of the financial system is The Effort to Service Debts. As for what Gold is the "core" of, Gold is the core of the Wealth Universe--of all items it is most reliably accepted in trade at all places at all times for all things; it can even be swapped for any currency as needed. Hence, its value as savings.

You continued your point with the comments--"The profits of trade are placed in rarities and gold. Like all profit motive operations (the only motive) the 100% of the enterprise exists because of the expected 15%-20% gross margin, the gross margin is only important because it provides the profit which can be invested or stored. Investments earn a return, gold is what is returned and not reinvested. Traditionally, a 3% net profit is all that is necessary, thus 97% of trade can be done without gold, but the only justification for the 97% is the 3% that will be put into gold."

Again, I must beg to differ. To see otherwise, we need only to look at the wide world filled with practical experience to the contrary. How many millions of people are out there engaged in various enterprises with one motive or another who have absolutely never given any thought to Gold in their entire lives? Not only do I question the Gold motivation, I also question the reliability of the 3% net profit business. Whereas you say these "profits of trade are placed in rarities and gold," I would suggest that the motivation and profits of trade are represented by getting something ELSE that you need as a byproduct of your specialization to produce very efficiently more items of a single kind than you personally have any need for. That's what division of labor is all about. Seen this way, the notion of "profit" flys. We could conceivably all be content with "Break Even," getting precisely an equal value in return for our effort. We toil for shelter, food, and clothing as the "profit" (motive, actually) for our single-purpose efforts that modern division of labor and commerce allows. The Profit comes in where we toil and exchange in excess of our immediate personal needs. This becomes the Wealth that we accumulate. And where food spoils and storage of goods are problemmatic, we turn to Gold...or else many of our peers take their currency and turn to speculation or various investment schemes to, as they say in Vegas, "Let it ride!" Good luck. There's nothing wrong with that as long as they are fully aware that they are gambling with the product of their past efforts.

The second item I wanted to question you about was your comments regarding hyperinflation. You said rising prices causes less currency to be held in banks, leading to currency shortages, and with rising prices ultimately leading to loan defaults, whereby, "Defaults destroy bank assets and the banks must sell assets to obtain cash with which to settle. The defaulted loans are no longer a source of demand for currency, and so the value of the currency erodes further."

How do you rectify the logic and the outcome you've established in that example of defaults with what can be reasonably expected to occur with the value of Gold upon a similar default on Gold loans in the bullion banking sector? I'm sure we are all in agreement that the value of Gold would increase, yet you say the parallel with currency has an opposite effect. Are you neglecting the bank's own obligation to cover the defaulted loan in the first (currency) example?

And on the topic of maintaining similar logic between one banking system and another, Bill Murphy said upon his return from Paris --"There is much at stake. If the buildup in [Gold] derivatives is as significant as we think it is and the gold loans are as large as we think they are, the gold price will soar." While I don't question that outcome for Gold, why can't it also be argued under the same driving principles that "if the buildup in DOLLAR derivatives is as significant as we all know they are, and the DOLLAR loans are as massive as we know they are, then the DOLLAR will head for the stars."?

Just an effort to stimulate some additional quality thinking.

Gold. Get you some. ---Aristotle

SHIFTY (07/01/00; 17:08:21MT - usagold.com msg#: 33085)
Periodic ponzi update ( PPU )
Nasdaq 3966.11 + Dow 10,447.89 = 14,414.00 divide by 2 = 7,207.00 Ponzi

Up 81.96 ponzi points from last weeks close.

$hifty

TownCrier (07/01/00; 16:10:14MT - usagold.com msg#: 33084)
Sirs Henri, Javaman, and all others with an eye toward gold acquisition
When the topic of Harmony's own branded 10 tola (3-3/4 oz.) gold bars was brought up at the forum a couple months ago, Michael said at that time that if you good people expressed an interest or desire in acquiring some Harmony gold for your portfolios then Centennial would look into tapping into the supply line. It might be helpful if anyone with a serious potential interest would let us know (e-mail reaches me here at The Tower if you send it to the sitemaster's address listed at the top of the forum).

This situation is very much like the one in which the Bundesbank recently announced plans to mint one million 11.8 gram one-mark gold coins next year as part of a program to foster "monetary and currency stability consciousness" among the general public, according to the Bundesbank's press release. Based upon clientele demand, Centennial will look into offering these coins if they can in fact be had in the U.S.

I, for one, have an interest in both.

schippi (07/01/00; 15:57:52MT - usagold.com msg#: 33083)
Wavelet Chart of Select Gold
http://www.SelectSectors.com/wavelet.gif
All componets are pointing Up!
Have a GREAT 4'th


Farfel (07/01/00; 15:12:04MT - usagold.com msg#: 33082)
@STRAT and DISNEY@ Raving Lunacy Re: Gold Leasing
I still like to peruse Kitco, mostly for humor content, and today's posts on gold leasing are hysterical.

Now it seems Disney and Strat have come up with a methodology for Central Banks and Bullion Banks to make money in the gold market WITHOUT any gold leaving the CB vaults. Moreover, they assure us that this methodology is correct because bullion banker "expert", Lenny Kaplan attests to its validity. Yes, that's Lenny Kaplan, the very same man who periodically posts @Kitco to tell everyone that gold is no more than a mere industrial metal commodity today (yet assures us that he is just a trader with no negative bias toward gold???).

According to Diz and Strat, it seems that, in order to earn a whopping 1% on their gold reserves, CB's are happy to BUY gold (on paper) at spot price around $290 (a helluva lot of money to put up in order to earn a mere 1% ROI), thus allowing the BB's to earn 6%, while the CB's never part with a single ounce of gold through the entire process.

DUUUUH? So how does the 1500 ton annual global gold deficit get filled if the CB's are engaging in mere paper transactions without gold leaving their vaults????

Never a day goes by where gold investors don't receive healthy doses of negative gold propaganda from both gold shorts and plain simple idiots.

Still I enjoyed the laugh.

Thanks

F*



Leland (07/01/00; 14:50:28MT - usagold.com msg#: 33081)
Sir Journeyman, Your Test is Mind Stimulating
A good von Mises website..

Ludwig von Mises Papers Discovered in Moscow

In March 1938, the Nazis occupied Austria. They broke into the apartment of Ludwig von Mises,
who was away teaching in Geneva. The Nazis took all the papers and correspondence of this
Austrian economist they considered their most important intellectual enemy. At the end of the war,
the communists confiscated the papers (38 boxes, 20,000 items) and transported them to Moscow.
Now, more than 50 years later, the papers were discovered by 2 researchers in a secret Moscow
archive.

At a time when Socialism was the rage in Europe (1920s), Mises was its most vehement critic. In his
much talked about book, Socialism, Mises exposed socialism as a utopian scheme that is illogical,
uneconomic, and unworkable at its core. Because of his views, he was feared by European leaders
and was consequently denied an academic post at a major university. In 1940, he sought refuge in
the U.S. where he continued to write and teach until his death at age 88 in 1973.

Mises, the most famous economist of the Austrian School, was passionately committed
to freedom and to capitalism. He never stopped his fight against socialism, or any sort
of government intervention, which he concluded was unproductive, unstable and would
only lead to more government intervention.



"Ludwig von Mises did more to spread the fundamental ideas of free markets
than any other individual." -- Milton Friedman, Nobel Laureate


A champion of freedom, private property and free markets, Ludwig von Mises is
author to 25 books and over 250 articles, including his masterpieces: Human Action,
Socialism, Planned Chaos and The Theory of Money and Credit.

To find out more about Ludwig von Mises, contact The Ludwig von Mises Insitute
in Auburn, AL or visit their web site at www.mises.org, or email them at:
lvmises@mises.org.

JavaMan (07/01/00; 14:40:23MT - usagold.com msg#: 33080)
Henri...
No problemo...I thought MK was offering them. If not, maybe he should.

As an aside, there was a little known band, Osa Bisa, I think, in the early '70s that used the Pachiderm on their album covers. The ears where so big as to allow them to fly. Incredible art work.



Journeyman (07/01/00; 14:16:19MT - usagold.com msg#: 33079)
Test yourself against von Mises. Six questions for ALL

1. Why has the word "inflation" become confusing? What are the
results of this confusion?

2. What did Charles DeGaulle mean by "extravagant privilege?
What's another little-used word for it? What would happen if
"the privilege" were exercized world-wide?

3. Did markets and the people choose paper money over gold? If
not, who did?

4. Does government/Federal Reserve monetary control serve the
common good?

5. Is there enough gold for the world to go back on the gold
standard?

6. Is gold too expensive to be efficient for use as money?

See how your answers to these questions stack-up against Ludwig
von Mises, the esteemed founder of the Austrian School of
Economics. WARNING: Many of the "answers" von Mises gives are
NOT multiple choice. You may have to engage your mental gears.

I'm going to post Mises' quotes (with a bit of commentary on a
couple of them) one at a time at irregular intervals over the
next few days, so tune in often!

Regards,
Journeyman


Henri (07/01/00; 13:21:13MT - usagold.com msg#: 33078)
Java Man Msg 33068
I would love to tell more but alas, the "rules". If you were to find the link to Harmony Mines webpage there is another link there. Clues only lest I find myself deprived of the fellowship of my peers. I fear I may already be in transgression. If so, forgive my impertinance Michael.

Leland (7/1/2000; 11:15:06MT - usagold.com msg#: 33077)
And, There is Sadness This day....
Actor Walter Matthau Dies at 79

By Bob Thomas
Associated Press Writer
Saturday, July 1, 2000; 9:43 a.m. EDT

SANTA MONICA, Calif. –– Walter Matthau, the foghorn-voiced movie
villain who became a master of crotchety comedy with his Oscar-winning
"The Fortune Cookie" and followed with "The Odd Couple," "Grumpy
Old Men" and many other hits, died Saturday morning of a heart attack.
He was 79.

Matthau was pronounced dead at 1:42 a.m., shortly after being brought
into St. John's Health Center in Santa Monica, said hospital
spokeswoman Lindi Funston.

Often cast as a would-be con man foiled by life's travails, Matthau
bellowed complaints against his tormentors and moved his lean, 6-foot-3
frame in surprising ways.

Said his frequent costar, Jack Lemmon: "Walter walks like a child's
windup toy.

Matthau's performance as the shyster brother-in-law of Lemmon in "The
Fortune Cookie" won him the Academy Award as best supporting actor
of 1966. He was twice nominated for best actor: as the cantankerous
oldster in "Kotch," 1971 (directed by Lemmon); and as the feuding
vaudeville partner of George Burns in "The Sunshine Boys," 1975.

"The Odd Couple" provided the role that established Matthau's stardom.
In 1965 he appeared in New York as the slobby sportswriter Oscar
Madison in Neil Simon's play. Art Carney was the fastidious
photographer, Felix Unger, who shared an apartment with Madison after
both had been divorced.

Matthau repeated the role in the 1968 film, with Lemmon as Felix. They
reprised their roles 30 years later in the 1998 film "Odd Couple II."

"Every actor looks all his life for a part that will combine his talents with his
personality," Matthau told Time magazine in 1971. "'The Odd Couple'
was mine. That was the plutonium I needed. It all started happening after
that."

The actor could be as whimsically eccentric in interviews as he was on the
screen. Reporters had to exercise caution in separating fact from his flights
of fancy.

In responding to a form for Current Biography, he reported that his father
had been an Eastern Orthodox priest in czarist Russia who ran afoul with
church authorities by preaching the infallibility of the pope. His father was
actually a Kiev pedlar.

Matthau declared that he had married the former Carol
Wellington-Smythe Marcus. His wife was really Carol Marcus, who had
been twice married to playwright William Saroyan.

"That's my defense mechanism against pompous and ludicrous questions,"
Matthau explained. When he filled out his Social Security form in 1937, he
listed his middle name as Foghorn. He never corrected it.

Some of the facts about the actor's early life seem accurate. He was born
Walter Matuchanskayasky on Oct. 1, 1920, in New York City to
impoverished Russian-Jewish immigrants.

The father left home when Walter was 3. Walter and his older brother,
Henry, lived with their mother, a garment worker, in a series of cold water
flats on the lower East Side.

Young Walter showed a dramatic bent early, reading Shakespeare at 7
and reciting poems in school assemblies at 8. He was introduced to
Yiddish plays at 11, when he sold soft drinks at 2nd Avenue theaters. He
made occasional appearances onstage at 50 cents a performance.

He was already 6 feet tall at 10 and weighed 90 pounds. "When I drank
cherry soda, I looked like a thermometer," he once cracked.

Graduating from Seward Park High School during the Depression, he
took government jobs – as a forester in Montana, gym instructor for the
WPA, boxing coach for policemen. In World War II, he enlisted in the
Army Air Corps and served as radio cryptographer in a heavy bomber
unit in Europe.

Matthau ended the war a sergeant with six battle stars and a fistful of
money from poker winnings. Legends of his gambling followed him
throughout his life. While making a TV series in Florida before his movie
stardom, he lost $183,000 betting on spring-training baseball games.

The actor himself made no effort to quash the legends and even
contributed to them. In middle age he estimated his lifetime gambling
losses at $5 million.

After release from the Air Corps in October 1945, Matthau enrolled in
the dramatic workshop at New York's New School. Among his fellow
students: Gene Saks, Rod Steiger, Harry Guardino, Tony Curtis. He
stayed three years, living on the GI Bill and playing in regional stock during
the summer.

Matthau's first Broadway role came at the age of 28 when he was hired as
understudy for the role of an 83-year-old English bishop in "Anne of the
Thousand Days," starring Rex Harrison.

When the aged English actor playing the role became ill, Matthau went
onstage without a rehearsal. He liked to tell the story of how the surprised
Harrison looked at him and uttered an expletive. Matthau related: "People
in the audience began muttering to each other: 'Did he say "Oh, spit!"?'"

A series of flop plays followed, then Matthau hit a lucky streak with "Will
Success Spoil Rock Hunter?," "Once More with Feeling" and "A Shot in
the Dark." Hollywood took notice.

His first film, "The Kentuckian" starring and directed by Burt Lancaster in
1955, cast him as a villain, and more heavy roles followed. Among the
early films: "King Creole" (Elvis Presley), "A Face in the Crowd" (Andy
Griffith), "Lonely Are the Brave" (Kirk Douglas), "Charade" (Cary Grant,
Audrey Hepburn).

He also appeared on dramatic TV shows such as "Playhouse 90" and
"DuPont Show of the Week," and starred on the short-lived series
"Tallahassee 7000."

"The Odd Couple" and "The Fortune Cookie" elevated Matthau to
stardom, and he enjoyed a wide variety of roles for more than 30 years.
He appeared in action thrillers such as "The Taking of Pelham One Two
Three" and "The Laughing Policeman," and portrayed a U.S. Supreme
Court justice in "First Monday in October." He even did a musical, "Hello
Dolly!" costarring with Barbra Streisand, with whom he publicly feuded.

He was always identified with comedy, something that rankled him.

"When people come up to me and say, 'Aren't you that comedian who's in
the movies?' I want to throw up," he once complained. "I throw up a lot."

Matthau was often teamed with Lemmon, always as adversaries though
they were best friends offscreen. Their films included: "The Front Page,"
"Buddy Buddy," "Grumpier Old Men," "Out to Sea."

Among Matthau's other films: "Cactus Flower," "Plaza Suite," "Pete 'n'
Tilly," "Casey's Shadow," "California Suite," "Little Miss Marker," "I
Ought to Be in Pictures," "Pirates," "Dennis the Menace."

He was most recently on screen with Meg Ryan, Diane Keaton and Lisa
Kudrow in movie "Hanging Up," released in February.

Matthau was married to Grace Geraldine Johnson from 1948 until their
divorce in 1958. They had two children, David and Jenny. He married
Carol Marcus in 1959, and they had one son, Charles, who became a
filmmaker and directed his father in "The Grass Harp" in 1996.

The actor survived several serious health setbacks during his career. While
making "The Fortune Cookie" in 1966, he suffered a serious heart attack.
His doctor attributed it to smoking three packs a day and constant worry
about gambling and told him to give up both. Matthau stopped smoking.

In 1976, he underwent heart bypass surgery. After working in freezing
Minnesota weather for "Grumpy Old Men" in 1993, he was hospitalized
for double pneumonia. In December 1995 he had a colon tumor removed;
it tested benign.

He was also hospitalized in May 1999 for more than two months after
another bout with pneumonia.

Matthau attributed his various illnesses to his eating habits: "If you eat only
celery and lettuce, you won't get sick.... I like celery and lettuce, but I like
it with pickles, relish, corned beef, potatoes, peas. And I like Eskimo
Pies, vanilla ice cream with chocolate covering."

(A Great Loss! And Fair Use Protections Apply.)

SHIFTY (7/1/2000; 11:15:03MT - usagold.com msg#: 33076)
Goldfan
I just checked the Cafe and its working. I cant stay online due to my wife's mom having a by-pass this morning. Waiting for news. There is a new post by James Turk . I have not read it yet. Need to get off computer to keep phone line open.

$hifty :)

Leland (7/1/2000; 9:41:49MT - usagold.com msg#: 33075)
Appropriate for this Weekend's Musings...
The future of American
liberty rests in the hands of young people more familiar with the "Three Stooges" than the
three branches of government. According to a 1998 Luntz Research survey, 59 percent of
13- to 17-year-olds identified Moe, Larry and Curly while only 41 percent correctly cited the
legislative, executive and judicial branches.

As America celebrates 224 years of independence, one wonders if this nation's citizens are
equipped to defend their freedoms against the state's natural penchant for mischief. The
evidence should make you drop your hamburger.

The National Constitution Center interviewed 1,000 adults and found that 24 percent cannot
name a single right guaranteed by the First Amendment.

Only 6 percent can cite freedoms of speech, press, assembly and religion. Fifty-two percent
do not know the Senate has 100 members. One in six believes the Constitution created a
Christian nation.

Even well-educated adults seem confused about America's experiment in limited
self-government. The Rev. Joan Brown Campbell of the National Council of Churches
explained during the Elian Gonzalez saga that Juan Miguel Gonzalez planned "to simply ask
now that the attorney general issue a court order and that the boy be returned immediately to
him." Neither Campbell nor Brian Knowlton's April 13 International Herald Tribune story
observed that attorneys general may not issue court orders any more than judges may
prosecute suspects.

Indeed, no matter what people wished for Elian, one likely reason that two-thirds of Americans
applauded his abduction by a federal SWAT team is that they did not grasp the case's basic
legalities. The Justice Department should have secured a court order to transfer Elian from
his great-uncle to his father. Instead, Justice relied on a fraudulent search warrant that falsely
called Elian "an illegal alien" and "a concealed person," presumably hidden atop Lazaro
Gonzalez's backyard jungle gym.

Unaware of what the Constitution entails, affluent and disengaged Americans seem rather
comfortable with a kind of elective monarchy.

Every four years, they pick a king who governs largely as he wishes.

Members of Congress - like an American House of Lords - breezily conduct their own affairs.
The two divisions of the royal family occasionally cooperate, usually - but not always - within
the law.

Every other November, Americans decide which among them may keep their orbs and
scepters and continue ruling at their whim.

In August 1993, for instance, a Democratic Congress approved Bill Clinton's proposed hikes
in top income and estate tax rates retroactive to Jan. 1, 1993, despite the Constitution's
explicit instruction that "No Bill of Attainder or ex post facto Law shall be passed." Indeed,
Clinton's measure actually raised taxes on moneys earned during the final days of the Bush
Administration, before Clinton's inauguration!

Although the Constitution unambiguously states: "The Congress shall have the Power to lay
and collect Taxes," the Federal Communications Commission in 1998 imposed the $2.25
billion-per-year "Gore Tax" on telephones. Worse yet, the FCC forbids phone bills from
separately identifying this roughly 5 percent telephone tax as a tax, never mind the phone
companies' First Amendment freedom to communicate with their customers as they like.

Congress voted last July 15 to accept a 3.4 percent salary increase, effective Jan. 1,
regardless of the 27th Amendment's requirement that compensation changes commence
after "an election of Representatives shall have intervened." Lawmakers feathered their beds
by dubbing this unconstitutional pay hike a "cost-of-living adjustment." The media and
masses snored right through this shakedown.

America's public cluelessness begins in schools that teach little about English and the
sciences and less about government. Sen. Joseph Lieberman, D-Conn., joined members of
the American Council of Trustees and Alumni on June 27 to call on "educators at all levels to
redouble their efforts to bolster our children's knowledge of U.S. history and help us restore
the vitality of our civic memory." A major overhaul of America's classrooms - through charter
schools, vouchers or total privatization - would boost the odds that citizens will learn why this
country is so special and how to keep it that way.

Meanwhile, Americans would be wise to heed the man who penned the Declaration of
Independence on July 4, 1776. "If a nation expects to be ignorant and free," Thomas Jefferson
said, "it expects what never was and never will be."

New York commentator Deroy Murdock is a Senior Fellow with the Atlas Economic
Research Foundation in Fairfax, Va.

(Fair Use For Educational/Research Purposes Only!)

goldfan (7/1/2000; 9:26:30MT - usagold.com msg#: 33074)
LeMetropoleCafe.com
re my previous 330373, sorry, make that gbarnes@unicomp.net
goldfan

goldfan (7/1/2000; 9:19:44MT - usagold.com msg#: 33073)
Murphy's site LeMetropoleCafe
http://www.lemetropolecafe.com
I haven't been able to access this site for two days now. Is it being subjected to a span attack?? anyone else able to get through? Also I have the same problem trying to email Murphy's webmaster gbarnes@unicomp.org, can't get through.

grateful for a reply.
Goldfan

Leland (7/1/2000; 8:59:23MT - usagold.com msg#: 33072)
Some Good News! From the Fine Folks in South Carolina (I Have a lot of Respect..Having Been Stationed There)
COLUMBIA, S.C. (July 1, 2000 8:29 a.m. EDT http://www.nandotimes.com) - A prominent South
Carolina video gambling operator kept an ace up his sleeve but despite the last-minute legal
maneuvers, the high-stakes battle ended with the industry folding.

The plug was pulled on the $3 billion industry at midnight Friday as a statewide ban went into
effect 14 years after video gambling was legalized in South Carolina.

"Bored. That's what I'm going to be - bored," said Wanda Rose, playing at the Double
Diamond in Columbia. "I mean, it's my money. I think that I should be able to spend it however
I want."

The end came only after a late-night legal drama that reached the state Supreme Court less
than two hours before the midnight deadline.

Businessman Henry Ingram, who owns five casinos, won a temporary injunction from a
Circuit Court judge allowing him to keep his video poker machines running. However, the
state Supreme Court shot that down late Friday night and denied other requests for
emergency injunctions.

Operators were supposed to have their machines turned off by midnight Friday. Authorities
had no immediate reports of violations.

"The last player had $100 that I was able to pay him," said Linda Browder, manager of Airport
Bingo in Cayce, which closed about 30 minutes before the midnight deadline. "I gave him his
$100 and his ticket as a souvenir. He said he would keep it."

Video poker became legal in South Carolina after a lawmaker slipped a provision into a bill in
1986. Anti-gambling forces fought hard to outlaw the machines, a battle that came to a head
in 1998 when then-Gov. David Beasley, a Republican, called video gambling "a cancer on
South Carolina" and vowed to get rid of the industry.

Gambling operators helped defeat Beasley's re-election bid, pouring money into the campaign
of Democrat Jim Hodges, who won the governor's race with a promise to let voters decide
whether the games should remain legal.

Last year, the Legislature approved a bill that banned video gambling unless voters decided in
a referendum to keep the machines. A few months later, the state Supreme Court threw out
the referendum, but upheld the ban.

"I'm glad it's out," Margaret Perry said as she played at D J's Video Games in Columbia. "It's
caused a lot of problems in my life. It's been a detriment to my spiritual life."

(Fair Use Protections Apply.)

TheStranger (7/1/2000; 8:40:35MT - usagold.com msg#: 33071)
A Must Read
http://www.prudentbear.com/guest.htm

"So what is [the] real rate of inflation in the US? It probably approximates growth in
total money supply, or M3. Since 1959, M3 has grown at a frightening
compound annual rate of 7.9%, while the CPI has "only" indicated 4.4%
compound annual inflation. The real per capita GDP, in the same period,
grew at a compound annual rate of only 1.4%, indicating the annual growth in
the broad money supply exceeded per capita GDP growth by an incredible
6.5% annually. More money chasing fewer goods equals inflation. With money
supply growth far exceeding per capita GDP growth for over 40 years,
inflation will get much, much worse before it gets better in the United States.

As this month's BLS results made crystal clear, the CPI is not a valid measure
of inflation, but has devolved into a mathematical Frankenstein's monster.
Real inflation, by any measure, is much higher than official Labor Department
statistics indicate. Sooner or later, general price levels will rise high enough
so everyone will be able to see through the statistical smoke and mirrors the
BLS has deployed. When that day comes, international faith in the US dollar
will plummet like a meteor, and hundreds of billions of dollars will be
dumped in the international currency markets in nanoseconds. The only
investment that has always thrived in highly inflationary environments in the
past is gold. Gold always retains its inherent, intrinsic value through all
financial turbulence, and shines its brightest when the demons released from
the Pandora's Box of inflation are wreaking the most havoc."

Stranger's Note: Be sure to click on the link and get the whole story.

Leland (7/1/2000; 8:12:13MT - usagold.com msg#: 33070)
For Those Following Operation Sail 2000 This Weekend...
http://www.phillynews.com/content/inquirer/2000/06/23/front_page/sails23.htm
.

Journeyman (7/1/2000; 7:50:40MT - usagold.com msg#: 33069)
Re: Leland msg#: 33067 "Be Careful on the Highways This Holiday Weekend.."

Thank goodness they're protecting us from these-type vehicles!

Regards, j.


JavaMan (7/1/2000; 7:26:02MT - usagold.com msg#: 33068)
Henri, re: tolas...
Congratulations on your latest acquisition. I seem to recall some posts a while ago about tolas but, alas, I have a good memory...its just too short. Can you talk more about your tola? Specs, turnaround time, etc.?

Thanks.

Leland (7/1/2000; 7:24:12MT - usagold.com msg#: 33067)
Be Careful on the Highways This Holiday Weekend...
http://dailynews.yahoo.com/h/p/ap/20000630/en/earthling_traffic_oeo.html
There are a lot of crazy drivers out there.

Hill Billy Mitchell (7/1/2000; 6:32:10MT - usagold.com msg#: 33066)
Official release
http://www.bog.frb.fed.us/releases/H15/update/

Official: Federal Reserve Statistical Release

Release Date: June 30, 2000

Rates for Thursday, June 29, 2000

Federal funds 6.76

Treasury constant maturities:
3-month 5.85
10-year 6.04
20-year 6.24
30-year 5.88

upside-down spread FF vs long bond = (.88%)


Henri (7/1/2000; 6:28:51MT - usagold.com msg#: 33065)
Michael/Previously registered "Clink"
Just received my (first)10 tola bar. Long wait but what a beauty. Love the Pachiderm. Still waiting for my Uro's.

Michael have you had any luck in connecting with a supply of the Harmony issue's? I wish to add some more but am waiting to find out if our esteemed host can deliver. At these prices I don't want to wait too long.

canamami (7/1/2000; 5:38:30MT - usagold.com msg#: 33064)
Reply to RAP - #33057
RAP,

Compliments on an informative and craftily worded post.

Are you arguing that a violent response to the current constitutional/governmental arrangements in the US could be justified? If yes, (a) would the existing debt of the US government or state governments be honoured? (b) would you retain the current US as a form of legal tender? (c) if not the US dollar, would gold/silver play a role in the monetary system?

It is interesting to note how much of history turns on arguing over debt: which one's will be honoured, which one's won't, and how they will be paid.

Most modern thought, IMHO, is focused on the pursuit of this-worldly pleasure - wealth, status, etc. Would most modern thinkers view the US revolutionaries who lost everything in support of their cause as "losers" or "suckers"?

It would be interesting to study whether some of the revolutionaries managed to use the new arrangements to directly or indirectly "make good" their losses, or to enrich themselves outright.

In my own personal experience, when I was younger, I would allocate significant efforts to advance a cause, without pay. Later, I learned that some of my associates insured they received payment for their allegedly voluntary efforts. The quandry: No cynical society can survive because no one will undertake the collective efforts (with risk of individual death, suffering, or impoverishment) needed to keep the society going. But in being an idealist, one must ensure that one is not paying a disproportionate price to benefit others. However, the need to protect oneself from being used can inhibit necessary but non-remunerative action, which means the necessary collective tasks don't get done. What to do?

An aside: The United Empire Loyalists would look at how their property was stolen by the US revolutionaries. Why were not these signers of the Declaration of Independence compensated from the looted or abandoned property of the Loyalists? If they weren't, who was compensated, and why?


SHIFTY (7/1/2000; 0:10:41MT - usagold.com msg#: 33063)
NYPOST.com
From
NYPOST.COM



HOW INFLATION WILL WRECK THE ELECTION FOR AL GORE

By JOHN CRUDELE


--------------------------------------------------------------------------------



GET ready for a major collision between the Fed and the White House this fall.
As everyone knows by now, the Fed decided to leave interest rates unchanged at its latest Open Market Committee meeting this week. In doing so it said some things to make those who want rates to stay put feel good, and some things that left open the door for higher borrowing costs as the year progresses.

If the economy does slow and inflation shows no signs of picking up, then the U.S. will be able to move into the election season without the Fed and the White House bumping heads. And that will be the end of the story.

But if the signals of inflation get stronger - and I'll explain why that's a very good possibility - then this election year could see the meanest, ugliest confrontation ever between the executive branch of our government and monetary authorities.

And the repercussions from such a battle will not be controllable by our officials. That's because foreign investors will get to cast their vote for the way the American economy is being handled by their treatment of U.S. dollar and financial markets.

The Federal Reserve has increased interest rates a half dozen times in the past year, starting with one last June that caught every single Wall Street expert by surprise.

The second hike also shocked the markets, which were hoping that the Fed was just tapping on the breaks to slow the economy. Even when the third rate increase came in the fall, Wall Street was still in denial.

Because the Fed didn't raise rates this week, Wall Street again has its hopes up that the Fed is finished. But don't get too blasé about the future.

First, the only moderately troublesome inflation reports that have been coming out of the government recently are an aberration at best and fraud at worst.

The Fed has already publicly questioned the government's inflation data, which showed consumer prices up 0.1 percent in May and producer prices flat.

What bothered economists is that Washington seems to have missed the incredible run-up in energy prices. And without those price increases, it is impossible for the Fed or anyone else to figure out how much the higher cost of energy is filtering through to other products.

But here's the problem.

The statisticians who put together the inflation numbers - especially those on consumer-price rises - say that the jump in energy prices was missed simply because of a fluke in their surveying system.

And they expect that the higher inflation numbers will start re-appearing with June's numbers. I spoke with them about this, and so have others.

The Fed's Larry Meyers has already called the government's May employment statistics "not credible" when it showed a decline in private industry jobs, a rise in unemployment and an increase in overall jobs because the Census Department hired an extraordinary number of temporary workers.

And Fed officials are constantly telling a few key private economics firms that they need help because the government's numbers are so unreliable.

Even if inflation stayed at current levels, prices are still up about twice as much over the past 12 months as the previous year. That alone should worry the Fed but it's only half the problem.

As this column has been saying for years, the Fed is mainly concerned with the stock market bubble. The "asset inflation" being created on Wall Street has long been bleeding into the economy and the fear is that the U.S. will reach production limits and prices will rise uncontrollably.

Stocks had only a modest reaction on Wednesday to the Fed's decision to keep rates steady and fell yesterday.

But the next interest rate meeting isn't until late August.

Here's the worst case scenario, which also happens to be the most likely.

Over the summer the stock market rises, creating more bubble money that investors will use to put a further strain on the nation's production capacity. At the same time, the inflation already imbedded in the economy will start showing up in the government's numbers on top of whatever new inflation is created by a further inflating of the bubble.

The end result will be a strong need for the Fed to increase interest rates right through the presidential election. This will give the Democrats fits.* Please send e-mail to:

jcrudele@nypost.com




ViewYesterday's Discussion.

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Tuesday February 7
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