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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.

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ARCHIVED DISCUSSION FROM 12/19/1998
All times are U.S. Mountain Time

JA (12/19/98; 23:50:08MDT - Msg ID:1439)
Media Bias
Michael
This is actually my third post but apparently my timing has not been such to make me eligible for one of your free books.

Here are a few thoughts on your media manipulation question.
The Mainstream media is not independent and has a bias in favor or international bankers which means in most cases they have a bias against gold. I would agree with Pete's post which shows the relationships between the major networks.

John Swinton, Editor of New York Times @ American Press Assoc. 1914 said
"There is no such thing as an independent press in America…. Not a man among you dares to utter his honest opinion….You know beforehand that it would never appear in print. It is the duty of New York journalists to lie, to revile, to toady at the feet of MAMMON, and to SELL his country and his race for his daily bread. We are the tools ant the vassals of the rich behind the scenes. We are marionettes. These men pull the strings and we dance. Our time, our talents our lives, and our capacities are all the property of these men, we are intellectual prostitutes."

The following would indicate the powers that be thought about how to control the media a long time ago.
In March, 1915, the J.P. Morgan interests got together 12 men high up in the newspaper world and employed them to select the most influential newspapers in the United States, and sufficient number of them to Control generally the policy of the daily press of the U.S.
These 12 men worked the problem out by selecting 179 newspapers, and then began by an elimination process to retain only those necessary for the purpose of controlling. They found it was necessary to purchase control of 25 of the greatest papers.
An editor was furnished for each paper to properly supervise and edit information regarding the questions of prepardness, militarism, financial policies, and other things of national and international nature considered vital to the interests of the purchasers. (International Bankers- Ed. Note)
Congressman Oscar Callaway - Congressional Record, Feb 9, 1917
(Unseen Hand p 200)
In our day the major media is even more centralized and controlled by the international bankers, and they are thanked for their cooperation as we see below.

"We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meeting and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been Subject to the bright lights of publicity during those years. But, The world is now more sophisticated and prepared to march towards a world government: The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national autodetermination practiced in past centuries."
David Rockefeller, CFR, & TC, International Banker, speaking to the Bilderbergers Conference June 1991 in Germany
(see H du B Reports Sept 1991 Issue)

In our day the media has been very successful in discrediting anyone who attempts to expose world what is going on.

What the Trilaterals truly intend is the creation of a worldwide economic (World Banking) power superior to the political government of the nation-states involved. As managers and creators of the system they will rule the world.
Senator Barry Goldwater - With no Apologies 1980 pg. 229

The most powerful cliques in these elitist groups (Council on Foreign Relations, Trailateral commission, and others) have one objective—to bring about the surrender of the sovereignty and independence of the United States of America.
A second clique of international members in the CFR comprises the Wall street international bankers and their key agents. Primarily, they want the world banking monopoly from whatever power ends up in the control of global government.
They would probably prefer that this be an all powerful united nations organization; but they are also prepared to deal with and for a one-world government controlled by the soviet communists if U.S. sovereignty is ever surrendered to them.
Rear Admiral Chester Ward - former CFR member, Review of the News April 9, 1980 pg. 37 (Unseen Hand pg. 197)

The Trilateral commission's most immediate concern is the creation of a new world monetary system to replace gold and the dollar as the international exhange with a new currency called special drawing rights (SDR's) (It looks like that may be the euro in the near term?)
Jeremiah Novak, American Opinion July 1977 pg. 12 (Unseen Hand pg. 238)

"The Trilateral Commission doesn't secretly run the world. The Council on Foreign Relations does that."
Sir Winston Lord, President of Council on Foreign Relations, 1978
(see Aid & Abet Vol 2 No. 2 pg. 7)
If a small group of bankers can create all the money in the world our of thin air and make everyone pay interest on it they basically can control the world by financing all worldly events including wars. As we see below others would agree with this concept.

"Whoever controls the volume of money in any country is absolute master of all industry and commerce."
Pres. James A. Garfield

The people must be helped to think naturally about money. They must be told what it is, and what makes it money, and what are the possible tricks of the present system which put nations and peoples under control of the few.
Henry Ford, Sr. - American Developer of the Automobile

Permit me to issue and control the money of a nation, and I care not who makes its laws:
Mayer Anselm Rothschild

Unfortunately governments allowed the Rothschild's and a few of their closest friends do just that!

The aim of the international bankers is " nothing less than to create a world system of financial control in private hands able to dominate the political system of each country, and the economy of the world as a whole. The system will be controlled in a feudal fashion, by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences."
The individual's "freedom and choice will be controlled within very narrow alternatives by the fact that he will be numbered from birth and followed, as a number, through his educational training, his required military or other public service, his tax contributions, his health and medical requirements, and his final retirement and death benefits."
Professor Carroll Quiqley - Tragedy and Hope Pg. 324

When the Federal Reserve Act was passed, the people of these United States did not perceive that a world banking system was being set up here. A super-state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure. Every effort has been made by the Fed (Reserve) to conceal its powers but the truth is - The fed has usurped the government:
Congressman Louis McFadden, Chairman of House Committee on Banking & Currency
from 1920 to 1931 (Shadows of Power, pg. 23)

The world is governed by very different personages form what is imagined by those who are not behind the scenes.
Sir Benjamin Disraeli, England's Stateman

The rulers in Washington are invisible, and exercise power from behind the scenes.
Felix Frankfurter, Justice of the U.S. Supreme Court

The real menace of our republic is the invisible government which, like a giant octobus, sprawls its slimy length over our city, state and nation. At the hear is a small group of banking houses generally referred to as "international bankers". This little coterie of powerful international bankers virtually run our government for their own selfish ends.
Mayor John F. Hylan, of New York city - March 26, 1922 (Shadows of Power Pg. 3)


The real truth of the matter is, as you and I Know, that a financial element in the large centers has owned the government ever since the days of Andrew Jackson.

Pres. Franklin D. Roosevelt, Nov. 21, 1933 (Shadows of Power, Pg 4)

So the world bankers control and manipulate both governments and the media to protect and keep their fiat money system safe from the light of day. However there are times when I think the internet may possess the power to shine the light of day on their system.



Peter Asher (12/19/98; 23:16:49MDT - Msg ID:1438)
WELCOME
Just want to take a moment to acknowledge our new posters. Backlash and Critical Mass; lots of good points and North of 49; great adventure tales, I'm sure we are all waiting with bated breath for that last story to unfold, especially as you apparently found the first successful Alchemist; he turned lead into gold!!

NORTH OF 49 (12/19/98; 22:00:23MDT - Msg ID:1437)
Some Things Don't Change
THIS SEEMS TO BE THE WEEKEND OF THE "NEW POSTERS"--HERE'S MY SHOT.

I have been "lurking" about this Forum for about 3 months now, and given the intellectual horsepower involved here, have been quite content to just try and educate myself, compliments of the players that make up this unique family. To your credit, my friends, your input is somewhat overwhelming. I have condeded that I will never attain the international understanding of the interactive principals of the IMF,CB's, and BIS's that make up this monetary "Phantom Of The Opera", however, if I may, I would like to offer a "street level" view from an international oilfield consultants perspective (maybe that's more information than you care to know--in that case, I apologise)
My view comes from what would make up a major populas that constitutes a multinational, large (very large) group of people that acquire and hold gold for one reason and one reason only. It is the only stable element (save Lunar cycles) in their, and their forefathers lives.
I can recall, while envolved in a siesmic operation near Bandar Abbas, Iran, finding myself hopelessly lost with a Landrover devoid of fuel, trying to trade 10,000 Rials (at that time, as I recall 200-300 US$) for two jerry cans of gas. NO DEAL!! However, when I produced a British gold coin (which I had won in a poker game--and which I was later informed was counterfiet--and had a total value to me of about 30 bucks US),--I was topped up on the spot, along with my two jerry cans. As a bouus, I also received a gallon of mast, which I was informed was a buttermilk version of goat's milk. $US200-300 cash in local currancy versus $30US in counterfiet gold--what's wrong with this picture??
A similar situation occured to me in Huff Huff (pronounced Hoof Hoof) Saudi Arabia when I had the misfortune of sending a Bedouins' prise ram to the promised land due to a MVSA (motor vehicle/sheep accident). Of course, it just had to be the stud ram of the fleet, so again, negotiations prevailed. The options were: go to jail, my new company Chevy pick-up, or the 1 oz. 99.99% Suisse wafer that I had hanging on a chain around my neck. Now, I admit, that was 1982, and gold had become a significant player in the world's commodity arena, however, still not worth a new Chevy pick-up!! So again, I was off the hook, with 1 oz of the international bail money known as gold. I had to throw in the chain (nearly 1 oz itself) just to keep the local Ahmir (Mayor/Judge) out of the picture, as I felt it was still a pretty cheap pick-up, although damned expensive mutton!!!
I have had several similar experineces over the years, in which "old yeller" has bailed me out, but enough for now. The point I'm trying to put in place here, is that this gold thing has been around for just a whole long time. It is constant. It is consistant. It's just everything else that changes. To the people who live as their ancesters did hundreds of years ago, it is their "stake in the ground" as "backlash" eluded to.
Perhaps, in a later post, I'll explain how in Angola, I traded 1 Troy oz. of gold for my life (or at least the 110 grains of 9mm lead that was destined to end it)

regards
North of 49

Goldfly (12/19/98; 21:17:52MDT - Msg ID:1436)
Not as good as the original, but at least as fantastic………
With many apologies to Clement C. Moore


T’was just weeks before Euro
and howling 'round the nation
Were the dogs of war
and the winds of inflation

The markets were sleepy
and stood unawares
of all the harsh turmoil
that soon would be theirs

My wife took the checkbook
she unloaded the cash
Whilst I took my strong-box
and counted my cache

When from my front porch
there came such a roar
I reached for my pistol
and dashed to the door.

I flew as I ran,
my feet scarce touched the ground
I undid the latch
and I chambered a round

But who to my wondering
eyes should appear?
But Alan Greenspan
With a six-pack of beer!
[Illustrator note: St. Pauli Girl]

"Goldfly," said he
"I've been at it all night
I was just cruising by
When I spied-out your light"

He stepped in the door
looked me straight in the eye
Saying "Things are a mess"
I could make no reply

Putting a hand to his forehead
much furrowed with care
With a sigh of relief
he sank down in a chair

His eyes had no humor
as he passed out the brews
He put an end to the small talk
and gave me the news

He told me of meetings
and word going 'round
The price of the Dollar
would soon slump to the ground

"Those boys with their Euro
they're coming on strong
I fear that our money
will soon equal the Yuan"

But a wink of his eye
and a nod of his head
Soon told me much more
than any word he had said

"I can win this" he muttered
rising to the occasion
"I'll give it a standard
make the Dollar's foundation--

"Not paper, not palladium,
but something to hold
Not platinum, not copper,
not silver, GO GOLD!"

Like a man on a mission
he sprang from his chair
In his eye was a sparkle
while fairly floating on air--

He went to my kitchen
and he ran a great bill
Calling all the Fed bankers
to make known his will

When at last he had finished
quite pleased, I could tell
He went out the front stairs
and he bade us farewell

As he ambled into the night
his voice came to my ear--
"A merry Christmas to all,
with an exuberant New Year!"

-GF






jinx44 (12/19/98; 20:27:20MDT - Msg ID:1435)
MK---Extra Euros to sate the Orient
Since I'm too lazy to do the research, I thought I'd make a suggestion to classify the calculation for the increase in ECB gold backing to handle euro creation from expected Asian demand.

The Asian CBs should have published or approximated data on their FX reserves. The ECB and member CBs have certain gold holdings that allow for XXXXEuros at 15%. That is the potential number of Euros that can be issued. Whatever a "substanial" portion of $US connotes times 15% (assumed fractional multiplier) times POG yields gold to be bought to keep the 15% fractional ratio. That will give you one point in the range--don't forget the euro conversion rate.

Any takers???

Pete (12/19/98; 16:10:25MDT - Msg ID:1434)
Dishonest money
Dear Mike,
When someone can lend you money that doesn't exist(credit & fractional reserve) and charge you interest on it, what more can one want. This is precisely what constitutes our present banking system. If they used gold, then they would have to lend you true wealth. Which would you prefer if you were in their shoes?

Many people, governments and corporations are drowning in debt. This gives them the power to determine who lives and dies by credit and thereby control of the economic and social system.

Best regards,

Pete

backlash (12/19/98; 15:53:51MDT - Msg ID:1433)
CONFIRMATION
Mike, Marie got it right. 'backlash' (small letters for me, but it will be all Captital letters later when IT happens) as in what is going to happen when the public finally wakes up and figures out what is going on with the US Govt., Politics, etc.

There are a few other subjects that deserve some attention as soon as time allows. Cheers

USAGOLD (12/19/98; 15:33:31MDT - Msg ID:1432)
Pete...A very interesting post
Can you explain how "big monied interests" reap a "bonanza from the fiat money system"? Would they not reap a bonanza from a gold backed money as well?

Pete (12/19/98; 14:49:39MDT - Msg ID:1431)
The true facts no one believes.
"We seek the free flow of information...a nation that is afraid to let the people judge the truth and falsehood in an open market is a nation afraid of its people." John F. Kennedy, Feb, 1962


To use an old axiom, "follow the money". To start let's use the three major media networks in the USA; NBC, ABC and CBS as examples. All supposedly independent and in competition and it is this very competition that is part of the independence which ensures we enjoy unbiased news. Sounds great doesn't it? Let us look at the true facts;

1) NBC is a subsiduary of RCA, a media conglomerate with connections to many members in the CFR, Trilateral commission and Bilderburgers. NBC directors, John Brademas(CFR, TC, BIL) and also of the Rockefeller Foundation; Peter G. Peterson(CFR) and former head of Kuhn, Loeb, and co.(owned by Rothschilds); Robert Cizik, chairman of RCA and 1st City Bancorp; Thornton Bradshaw, chairman of RCA, director of The Rockefeller Bros. Fund, Atlantic Richfield Oil;

2) ABC directors, Ray Adam, also director of J.P.Morgan, Met Life and Morgan Guarantee Trust; Frank Cary, also chairman of IBM, J.P. Morgan and Morgan Guarantee Trust; Donald C. Cook(CFR, BIL), general partner of Lazard Freres; John T. Conner(CFR) of the Kuhn, Loeb(Rothschild) law firm; Alan Greenspan(CFR, TC, BIL) chaiman of the FRB. ABC was taken over by Cities Communications whose major director is Robert Roosa(CFR, BIL), senior partner of Brown Bros. Harriman with ties to the Bank of England.

3) CBS directors, William S. Paley(comm 300), Harold Brown(CFR) and executive director of the TC; Henry B. Schnact, also a director of Chase M. Bank; Newton D. Minow(CFR), also director of the Rand Corp. and Ditchley Foundation with ties to The Tavistock Institute, a think tank with research into how the public reacts to news and information.(In other words, PROPAGANDA)

The above is by far not a complete list of directors. There are many more with the same or similar credentials with interlocking relationships that begs the question, are they truly independent? Methinks not!

Let us extend this further by considering that these organisations are interlocked on a world wide basis of the media, banking interests, governmental and political influence and multinational conglomerates. Farfetched? Methinks not again!

One can not deny that there are many interlocking relationships between these organisations that makes one wonder, is it just coincidence or is it by design? One can assume that because of these relationships that many coordinated plans by and between these interests are hatched to their benefit.

The fiat money system, which is a bonanza to these big monied interests, can not endure unless GOLD, a threat to their very existance, was controlled and manipulated. These are the reasons for denigrating GOLD at every twist and turn. IMHO.



USAGOLD (12/19/98; 13:52:42MDT - Msg ID:1430)
Good to See You Here, backslash
Great first post, backslash....I think Marie got you entered wrong. Isn't it supposed to be "backslash"? Let me know. If so, we'll get it fixed.

As for "the stake in the ground"...a strong metaphor. Per my earlier post, all nations may be forced to tie their future's to that stake in the ground...and sooner than we might think given the ominous rise of Europe....

I think you will add much to this FORUM. Happy Holidays my fellow traveller. As Another says: We watch this gold market together, yes? With this FORUM as our meeting place............

pa kua (12/19/98; 13:22:59MDT - Msg ID:1429)
Gold Disinformation
Disinformation, often timed to counter or obscure the public's understanding of the monetary role of gold has been a policy of our government and the Federal Reserve for many years. Any questioning of our fiat monetary system is not desired by them. The biased reporting in the media originates here. They lobby in the same way that trade organizations, as the medical and military industrial complex do. Well researched reporting in the media is hard to find. It is actively discouraged and discredited, while a flood of information from academic and financial institutions supporting the "approved" policies is disseminated to the media. As drug companies support medical schools and scientific research; and lobby Federal agencies , so do interests favoring fiat monetary policy support their cause. Media control is just one aspect of the war against gold.

Regarding the sophisticated campaign against "gold as money," the case of the American Institute for Economic Research is instructive. They were harassed and attacked by various government agencies and the founder, E C Harwood, virtually slandered in the media because of their splendid research and many publications concerning the role of gold and the fiat dollar. At one point, in the early 1970's, the IRS took control of the gold sovereign holdings of investors held abroad through an investment company, American Investment Counselors run by the principles of the American Institute for Economic Research ( AIC was not legally affiliated, for the AIER is a non-profit, educational institution). This was justified to protect investors from a possible scam. After a lengthy investigation, the charges were thrown out of court by Judge Gesell in NY, and the frozen sovereigns were distributed to their owners. There had been no scam and nothing disreputable done by AIC.

backlash (12/19/98; 12:08:48MDT - Msg ID:1428)
GOLD - The Stake
WARNING ! WARNING ! ! ! First time poster. All that follows can be taken with a grain of salt, - - - but, then just maybe. . . .

My most profound thanks to all who have been posting to this forum during the past several months that I have been monitoring it. 'Specially to Another and FOA ! The old brain has been in overload trying to absorb the wisdom in the postings. Thank you all very much.

With much encouragement from MK, it is time to join the fray.

The issue that just seems to continue to rear its ugly head is the proposition of the price of GOLD in US$'s. Going back over the past few months, there have been sporadic postings as to the 'value' of gold in US$'s ranging from $35/oz. to $3,000.00 and even more in some wild 'what if' scenarios. This whole discussion is fascinating.

Regarding the relationship between GOLD and the USD, whether it be $35, 300, or 3,000; tying the two together begs the question of just what is represented by each and in what ratio. I.e. If five hours of productive work is worth one twaddle and ten hours work is required to produce one oz of gold, then the value of gold would logically be two twaddles. The common denominator being work, or productivity, if you wish.

(Definition of work and/or productivity is a topic for a totally different discourse.)

Back to the issue at hand. Politics, economic controllers, etc. can arbitrarily set the relationship between gold and twaddles, Yen, US$, and all other currencies that would represent some sort of production. Setting the relationship between gold and any one of the is really not that difficult. The hard part is trying to build a relationship between the various currencies which have been set at different levels as regards to work or production. Ah, yes. Now the devil is in the deal ! How might this be done ?

A relationship between numerous different items absolutely requires one thing in all circumstances ! That one thing is: a common denominator.

As so eloquently expressed by others in previous posts, GOLD possesses the qualities that enable it to become that 'common denominator'. In brief, it is constant, has unique properties, is readily recognized, and serves well in coinage.

Specifically, GOLD becomes the stake in the ground (or constant) to which everything else (monetarily speaking) can be referenced. When everything is allowed to float to whatever anyone wants it to be, chaos results. Just look around at various currencies that are not tied to anything for a wonderful example. THEREFORE - Is not GOLD 'THE' reference point ? Regardless of kingdoms, economic systems, politicos, goods, services, or commodities; SOMETHING has to serve as the absolute (or reference point, or stake in the ground) whereby everything else can then be properly compared to each other.

Viva la GOLD.

Thank you for your patience. PEACE.

USAGOLD (12/19/98; 10:08:35MDT - Msg ID:1427)
USAGOLD FORUM BUSINES......CONTEST REPOST....CONTEST CONTEST
We have had a good response so far to the contest with some very worthy entries posted already. This is just to inform those who are unaware that we have a contest going for the weekend. Here is a repost from Thursday providing the details:

This morning's London Reuters report reads as follows:

"Gold dropped more than a dollar during late European trade on news that Switzerland's lower house of parliament voted for a constitutional
amendment to sever their currency's peg to gold and allow gold reserve sales.

The National Council in Berne adopted the amendment by a vote of 95 to 57, the latest step in a process which could lead to the eventual sale of
1300 tonnes of excess reserves.

The amendment now moves to the upper house for a vote next year and could face a popular referendum in 2000...

Gold had already drifted lower through European hours shrugging off any idea of safe-haven buying after the U.S.-led air strikes on Iraq overnight."

***************************

USAGOLD NOTE:

Here are the facts that Reuters failed to mention about the Swiss referendum:

1.An opinion poll commissioned by the World Gold Council earlier this year showed that 69% of the Swiss public "believes that (gold) reserves
are an important element of the country's monetary system

2. If the referendum measure passes the upper house and then somehow miraculously passes a vote of the Swiss people -- among which many are gold owners -- the gold will be SOLD ACCORDING TO THE REFERENDUM OVER A TEN YEAR PERIOD! That amounts to 130 tons per year. It will have a negligible effect on the market per Swiss intentions when they drafted the legislation right from the very start.
***************************

Why is it that, whenever something happens in the international arena that would cause nervous investors to
flock to gold, these worn out, stale stories about gold sales are trotted out for public consumption?

Last week when the impeachment proceedings gathered steam, the potential for International Monetary Fund sales was trotted out. Before that there has been an endless stream of bogus gold sales stories including the almost steady cacophony over the past year about European central bank gold sales, which by and large, have never occurred. The story above is an excellent example of what I am talking about. The Reuters story could very well have included the rest of the story on Swiss gold sales; they cannot beg off that they didn't know about it. If they had an interest in being fair, they would have pulled out the file on the Swiss referendum and the rest of the story would have been there.

The question is this:

Why didn't they? Does the mainstream media have a bias against gold? If so why? What is it about gold that offends, or worries, the people who are charged with passing along the news?

The winner gets a one-tenth ounce Philharmonic. There will be two runner-up one ounce silver eagles awarded as well.

All first time posters will receive either of the following books: The ABCs of Gold Investing or In the Footsteps of Giants free of charge. Your choice. Post and its out the door to you. We will be monitoring the e-mail.

Off subject posts will also be considered.

USAGOLD (12/19/98; 09:32:49MDT - Msg ID:1426)
Correction....
In the second paragraph, first sentence I meant to say "the model currency for the 21st Century." If this post and picked up and posted elseshere please include the change. Thank you.

USAGOLD (12/19/98; 09:28:08MDT - Msg ID:1425)
JINX......THE NITTY-GRITTY
You bring up a central and extremely important point.

In my view, the Europeans upped the number of ounces in ECB reserves as a result of China and Japan coming out during virtually the same weekend to say that they would convert a significant portion of their foreign exchange reserves from dollars to euros. The following week the ECB conspicuoulsy and tellingly followed with an announcement that they were looking into increasing the weight of their gold reserve. However, I do not know what formula they are using, and it would be good to find out. If any of our posters out there have a feel for this formulation, it would be an important contribution to the on-going discussion.

The euro, as I have said before in my daily reports and our newsletter, is the first modern currency...the model currency for the Twentieth Century monetary system -- as such it is a pilot program for the rest of the world. To keep their currency from being attacked, they put gold behind it -- a ingenious use of the yellow and appropriate for the modern, highly computerized financial system. I believe that the Orient will follow hence the rumblings of increased gold reserves from China, and the advise by Japanese monetary experts to their Eastern neighbors that they begin to look at gold as a reserve asset.

Someday the United States will have to do the same necessitating an accounting/audit at Fort Knox to salve international concerns and a re-establishment of a dollar price more in line with the international dollar float (M3). To get an idea what that price would, we need to analyze what proportion of reserves Europe will keep in reserve vs. its currency float (M3). (By the way this will also give us an range of expectation on future euro/dollar exchange rates.) Eventually, these percentages will be solidified vis a vis an international agreement so that the internatioanal monetary system can function with all parties having the same expectations. As the United States constitution was a political beacon for the establishment of republic/democratic institutions throughout the world, so the European monetary model first embodied in the Maastricht arrangement will be used as a beacon and model for the new international currency system.

It should be our goal here at USAGOLD FORUM to define the fundamental nature of this new system for our own benefit as well as all those who visit here to learn something. In my view there could be no more important undertaking and it needs to be undertaken seriously -- befitting the type of people we have posting here.

A starting point, in my view, would be determine what formula the Europeans intend to use. In other words, what percentage of their money supply (M3) will be in gold reserves by weight. Unless I misinterpret their response to Chinese and Japanese euro demand, they do have a formula in mind. Perhaps it has been published and I am unaware of it. (??)

In the end, we may find that a 25% backing of our currency would be sufficient to stem speculative attack, thus a $5000 gold price, but we need to do our homework. It could be crucial. I do not doubt for a minute that Maastrict is the direction in which the world is headed.

jinx44 (12/19/98; 01:18:16MDT - Msg ID:1424)
POG
Seems to me a range for golds' revaluation could be based on currency in circulation for the low range and total M1+2+3 for the high range. That would be without recognizing the TRILLIONS of unfunded liabilities and off-balance sheet items the USG has created with promises and lies.......let's see........

260M oz x $300 = about $80B , with about $500B currency in circulation (globally) the multiplier for gold is 500/80=6.25 6.25 x $300 = $1875/oz That's the low end!

Total debt admitted is $5,500B so, $5,500B/$80B = $20,625/oz
which could be argued as the high end. If Jude Wanninskis' recent article is correct about the role of liquidity on the gold market, AG and the FED shouldn't have to do anything!

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