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ARCHIVED DISCUSSION FROM 6/28/2001
All times are U.S. Mountain Time

(Yesterday's Discussion.)

ji (06/28/01; 23:59:23MT - usagold.com msg#: 57139)
More on trading with the enemy
http://www.barefootsworld.net/srwep.html
Going now to another section of 48 Statute 1 (Exhibit 35):


"Whenever in the judgment of the Secretary of the Treasury such action is necessary to protect the currency system of the (U)nited States, the Secretary of the Treasury, in his discretion, may require any or all individuals, partnerships, associations and corporations to pay and deliver to the Treasurer of the United States any or all gold coin, gold bullion, and gold certificates owned by such individuals, partnerships, associations and corporations." Notice now to whom we refer as "owning" the money!

By this Statute, everyone was required to turn in their gold. Failure to do so would constitute a violation of this provision, such violation to be punishable by a fine of not more than $10,000.00 and imprisonment for not more than ten years. It was a seizure. Whose property may be seized without due process of law under the Trading With the Enemy Act? The enemy's. Whose gold was seized? Ours -- the gold of the people of the united States. Are you seeing the fraud here now?

Could this be the beginning of a new deal? Possibly a one-sided deal. How long can this type of action continue? Let's find out.

"Now, therefore, I, Franklin D. Roosevelt, President of the United States of America, in view of such continuing national emergency and by virtue of the authority vested in me by Section 5 (b) of the Act of October 6, 1917 (40 Stat. L. 411) as amended by the Act of March 9, 1933, do hereby proclaim, order, direct and declare that all the terms and provisions of said Proclamation of March 6,1933, and the regulations and orders issued thereunder are hereby continued in full force and effect until further proclamation by the President."

We now understand that the Proclamation 2039, of March 6, 1933 and Proclamation 2040 of March 9, 1933, will continue until such time as another proclamation is made by "the President". Note that the term "the President" is not specific to President Roosevelt; it is a generic term which can equally apply to any President from Roosevelt to the present, and beyond.

So here we have President Roosevelt declaring a national emergency (we are now beginning to realize the full significance of those words) and closing the national banks for two days, by Executive Order. Further, he states that the Proclamations bringing about these actions will to continue "in full force and effect" until such time as the President, and only the President, changes the situation.

Has the termination of the national emergency ever been considered? In Public Law 94412, September 14, 1976 (Exhibit 70), we find that Congress had finally finished their exhaustive study on the national emergencies, and the words of their findings were that they would terminate the existing national emergencies. We should be able to heave a sigh of relief at this decision, for with the termination of the national emergencies will come the corresponding termination of extraordinary Presidential power, won't it?

But yet we have learned two difficult lessons: that we are still in the national emergency, and that power, once grasped, is difficult to let go. And so now it should come as no surprise when we read, in the last section of the Act, Section 502 (Exhibit 71), the following words:


"(a): The provisions of this Act shall not apply to the following provisions of law, the powers and authorities conferred thereby and actions taken thereunder (1) Section 5 (b) of the Act of October 6, 1917, as amended (1 2 U. S. C. 95a; 50 U. S. C. App. 5b)"


The bleak reality is, the situation has not changed at all. The Act of October 6, 1917( The Trading with The Enemy Act), as amended is current law.


SHIFTY (06/28/01; 22:48:17MT - usagold.com msg#: 57138)
ax , Black Blade, all
USAGOLD All the news a goldbug could use!
If you scroll down to The Stranger (06/28/01; 10:52:53MT - usagold.com msg#: 57073) you will see the Kemp piece posted right here at home.
:-)
$hifty


ji (06/28/01; 22:24:12MT - usagold.com msg#: 57137)
@Crossroads Are we operating under the Constitution?
http://www.barefootsworld.net/srwep.html
The link above is a report on how we became a constitutional dictatorship and our gold was confiscated. Believe it or not.

Excerpt from report:

A Special Report on the National
Emergency in the United States of America

On the next day, March 6 ,1933, President Roosevelt issued Proclamation 2039, which has been included in this report, starting at the bottom of Exhibit 8. In Exhibit 32, we find the following:

"Whereas there have been heavy and unwarranted withdrawals of gold and currency from our banking institutions for the purpose of hoarding . . ."

Right at the beginning, we have a problem. And the problem rests in the question of who should be the judge of whether or not my gold, on deposit at the Federal Reserve, with which I have a contract which says, in effect, that I may withdraw my gold at my discretion, is being withdrawn by me in an "unwarranted" manner. Remember, the people of the united States were in dire economic straits at this point. If I had gold at the Federal Reserve, I would consider withdrawing as much of my gold as I needed for my family and myself a "warranted" action. But the decision was not left up to We, the People.

It is also important to note that it is stated that the gold is being withdrawn for the "purpose of hoarding". The significance of this phrase becomes clearer when we reach Proclamation 2039, wherein the term "hoarding" is inserted into the amended version of Section 5 (b). The term, "hoarding", was not to be found in the original version of Section 5(b) of the Act of October 6, 1917. It was a term which was used by President Roosevelt to help support his contention that the United States was in the middle of a national emergency, and his assertion that the extraordinary powers conferred to him by the War Powers Act were needed to deal with that emergency.


ax (06/28/01; 22:19:38MT - usagold.com msg#: 57136)
WSJ Kemp Gold Article
http://www.polyconomics.com

Dear Forum Readers:

The above web site has the WSJ Kemp Gold Article preceeded
by a letter to Alan Greenspan from Jude Wanniski today on
the same subject.

Ax


Black Blade (06/28/01; 22:17:43MT - usagold.com msg#: 57135)
Grasshoppers swarming California farms
http://www.cnn.com/2001/TECH/science/06/28/grasshopper.invasion.ap/index.html

Snippit:

"They're coming in droves. For every one we control with pesticides, a thousand more are on the way," said George Cooper, owner of Central Valley Trees, a 40-acre retail nursery in rural Fresno County just outside of Clovis.

Black Blade: "...and they danced, sang and..." OK, OK, I won't say anything!


Black Blade (06/28/01; 21:57:46MT - usagold.com msg#: 57133)
RE: SHIFTY, Stranger, Leigh, ... All!
http://www.freerepublic.com/forum/a3b3b649a0c7b.htm
Our Economy Needs A Golden Anchor by Jack Kemp

Snippit:

The Fed may yet get lucky with its rate cuts, although the Bank of Japan never did. The only certain way to end this deflation is to have the Fed stop targeting interest rates and begin targeting gold directly -- not by "fixing" the price of gold by administrative fiat as some people mistakenly characterize it, but rather by calibrating the level of liquidity in the economy, over which the Fed has exclusive and precise control, to keep the market price of gold stable within a narrow band closer to $325 than $275.

Black Blade: A good article from the WSJ and also posted at the site above.


ax (06/28/01; 21:47:54MT - usagold.com msg#: 57132)
Jack Kemp / WSJ/ Shifty

Shifty, if you are talking about the Jack Kemp gold article
in the WSJ you can get the text from today's www.polyeconomics.com ( Jude Wanniski).

Ax


SHIFTY (06/28/01; 21:36:00MT - usagold.com msg#: 57131)
The Stranger
Thanks for the info. I left the paper drying on a chair at my aunts house.

$hifty


Black Blade (06/28/01; 21:34:44MT - usagold.com msg#: 57130)
Body Count Update
http://www.forbes.com/2001/01/30/layoffs.html
More layoffs coming.

RE: JMB - You got me. The author does not provide much of a reference point. At first I assumed that he used growth and GDP percentages interchangably. On further reading, it is clear as mud. Cheers!

- Black Blade


ji (06/28/01; 21:27:50MT - usagold.com msg#: 57129)
The obscurities of a concept called "money"
Money. In usual and ordinary acceptation it means coins and paper currency used as circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate. Lane v. Railey, 280 Ky. 319, 133 S.W.2d 74, 79, 81. (Black's Law Dictionary, Fifth Edition, page 906)

Real money. Money which has real metalic, intrinsic value as distinguished from paper currency, checks and drafts. (Black's Law Dictionary, Fifth Edition, page 1137)

Are we discussing the concept of money or real money?


The Stranger (06/28/01; 21:27:42MT - usagold.com msg#: 57128)
Shifty
Sorry, I didn't see your request until just now. If you haven't already found it, it is on page 16, section A.

JMB (06/28/01; 20:37:27MT - usagold.com msg#: 57127)
BLACK BLADE
Mr. Martin Wolf's, "The fed's race against time"/Your #57124
Great work BB.

I do not understand the following...brain cramp??

"The financial deficit of the private sector also was an unprecedented 6.5 per cent of gross domestic product in 2000 - a shift of 12 percentage points since 1992."

How do the numbers work?


Black Blade (06/28/01; 20:19:12MT - usagold.com msg#: 57126)
RE: CoBra(too) (06/28/01; 18:01:36MT - usagold.com msg#: 57114)

The Cortez - Pipeline project is PDG's flagship. Rio Tinto or RTZ has an interest acquired through the Kennacott merger. I understand that you are aquatinted with Coral Gold's interests. They also were fortunate that Amax did a bit of exploration and then let the whole thing lapse, leaving Coral a nice bit of exploration data gratis. Good deal! Isn't Coral Gold's position on the Robinson Ranch property? Anyway, PDG is working the South Pipeline area now. Getchell will require a lot of capital such as a new mill, autoclaves (lots of sulfide mineralization - orpiment, realgar, stibnite, getchellite, etc.), extensive underground development (geologically unstable), etc. Last week they had another fatality due to a rock fall. However, Getchell is high-grade and has lots of potential when gold prices become reasonable again. CEO jay Taylor had announced that PDG would unwind hedges shortly after the WA and the POG took off. Then the next trading day, ABX in an act of desperation said that they would hedge like the blazes and then the POG tanked again. Unfortunately, PDG reneged on their hedging stance and caved in to certain influences.

I only invest in profitable reasonably priced unhedged (no forward sales) gold miners like HGMCY, GOLD, and FN. In light of the South Africans unwillingness to allow the merger of GOLD and FN, it looks as if mergers between SA golds and hedge funds like ABX and AU are out of the question. Other prime targets for desperate hedgers are MDG, AEM, and GG.


ET (06/28/01; 20:12:24MT - usagold.com msg#: 57125)
Randy

Hey Randy, you write;

"...it has been a GOLD discussion forum; and the only sound you'll hear echoing in your ears if you pursue dialog
on such off-topic items as AIDS is the sound of your posting code being tossed onto the bone pile. As always,
your "fate" is in your own hands. Act wisely."

Where is the warning that posts advocating socialistic solutions to everyday affairs are not to be a subject of discussion here? Aren't those "solutions" historically the antithesis of gold ownership? Are you declaring this no longer a forum but rather just another form of propaganda?

Act wisely!


Black Blade (06/28/01; 19:59:57MT - usagold.com msg#: 57124)
The Fed's race against time
http://markets.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3XDK11GOC&live=true

Snippit:

Reality hurts. The extent of the pain and the ability of the Federal Reserve to relieve it will determine what happens not just to the US, but to the world economy, over the next few years. Most analysts still forecast nothing worse than a modest slowdown. They are likely to be disappointed. The short-run possibilities seem quite distinct: either the US will tumble into a deep recession or the Fed will persuade the consumer to save the day. What is most unlikely is continued stagnation. Yet this is just the short run. If the Fed persuaded US households to spend, there would be a further deterioration in their balance sheets. That would be fine as long as interest rates remained low. But what if there were to be a subsequent resurgence of inflation? Then the Fed would face a dilemma: monetary tightening might trigger a recession more terrible than the one it is trying to prevent today. If the gathering downturn is to be halted, the Fed has to persuade consumers to keep on spending. This just might work, though the success of central banks in rescuing post-bubble economies has been decidedly limited. But it may also merely postpone the economy's day of reckoning. The central bank risks making the world safe in the short run by rendering it still more dangerous in the longer run.

Black Blade: The answer is to spend? Oh boy - Storm Clouds on the Horizon! Consumers are tapped out, worried about unemployment, and trying to get out of debt, trying to salt away a little savings. Spending is the last thing they should be doing.


Black Blade (06/28/01; 19:48:16MT - usagold.com msg#: 57123)
Experts See Warning Signs of Recession
http://dailynews.yahoo.com/h/nm/20010626/bs/economy_recession_dc_1.html

Snippit:

NEW YORK (Reuters) - A New Economy recession will probably look a lot like an Old Economy recession, according to U.S. business cycle experts who are now seeing many of the classic warning signs of a such a downturn. A prolonged decline in industrial output, steadily rising unemployment and the bust of a boom in business investment are all adding up to the same type of weakening that characterized virtually every recession since World War II, analysts said. ``Either we are in a recession or this is the worst non-recession ever,'' said Anirvan Banerji, director of research at the Economic Cycle Research Institute (ECRI). ``It's not different this time. It is following the classic pattern with minor variations.''

Black Blade: And every postwar recession was preceded by an energy crisis. Still possible to get a Gold parachute (Gold insurance).


Black Blade (06/28/01; 19:41:39MT - usagold.com msg#: 57122)
Is Asia Heading for a Perfect Storm?
http://www.bloomberg.com/feature/feature993652159.html

Snippit:

Critics pointed out that Asian governments, made complacent by the rebound, had begun shelving the financial reforms that economists had warned were needed to ward off future crises. What if the U.S. economy slowed? Wouldn't Asia be vulnerable again? Now, with the U.S. economy growing at only a fraction of its earlier pace, Asia's income from exports has fallen off dramatically. Many Asian governments have given up on financial restructuring, saying their economies can't cope with it now. "All the weaknesses that got covered up in the recent boom are once again exposed,'' said Gregory B. Fager, Asian expert at the Institute of International Finance, an umbrella organization for banks that lend to emerging-market countries.

Black Blade: Now if anyone ever needed to hedge with gold...


nickel62 (06/28/01; 19:36:58MT - usagold.com msg#: 57121)
Musings
Ten years ago as a confirmed gold believer, I would get a sinking in my stomach at the thought of the worlds central banks flooding the world markets with their apparently unwanted gold. I guess the nightmare has come true and I have lived through it I think. The other fear I have had is that their was a mistake in my calculations for the total supply of gold in the world and that there would actually be an endless glut of cheap gold produced by a wave of new mining companies. Each sprung from the hip of some investment banker with the ability to raise capital quickly and using some new technology to either find deposits more easily or process gold more efficently(heap leaching, bio leaching etc.) Well having lived through the last ten years, I guess we have seen the central banks sell off more gold than we feared in our worse nightmare and every other major hoard from Marco's fabled gold treasure, to Russia's dismantling of an entire countries mineral wealth, to whatever has been able to be created from the forward sales of all the hedged producers. Now gold is still standing, bowed , beaten and manipulated but still in demand. The current price appears to be the world clearing price for the excess of all these various hoards being dumped at once on the market. What better valuation could we as investors have then the resilience of the gold market over the last several months. Let's hope the bastards have finally run low on their ability to weave gold from paper. It has been a very long time and I think we are finally there.

JMB (06/28/01; 19:24:40MT - usagold.com msg#: 57120)
KarenSue
Greetings and welcome Karen Sue. Hopefully SECTOR will have a moment to read your #57066 and direct you properly. A "friend" of his has done a "little work" on the very subject you have discussed.

To any and all: "A major bull market in the dollar." If so, I unequivocally state that we have A MAJOR BULL MARKET IN UNEMPLOYMENT!


Tree in the Forest (06/28/01; 19:12:03MT - usagold.com msg#: 57118)
Max Rabbitz
In answer to your first question, the time for "stopping" for delivery for the June gold contract was over today. Last delivery day is Friday. The purpose in dropping the price is so that the "boys" can take delivery at a lower price. They make up all kinds of excuses like an Australian gold mine wanted to dump some gold. As if anyone who made a product would intentionally dump it to drive his profits down! Some 510,000 oz are being stopped with only around 900,000 oz total available at Comex. However, we have been here before with seemingly large deliveries of metal having little or no effect on Comex stocks. A certain amount of metal may just go around in circles. Whether this month will be any different remains to be seen.

auspec (06/28/01; 18:52:10MT - usagold.com msg#: 57117)
cb2-dini
Do you know if Rio Tinto has much precious metal work going besides what you mentioned? I always figured they were at least 75% in the base metals. Yes, PDG was left off the 'list' of gold advocate stocks. Must have been some horible oversight on my part {snicker}. Placer Dumb will survive off of connections if not smarts.
Hoping these guys reach really deep into your larder and pick up a few commonly owned gems for the lift off! Make it happen cb2-dini!


Christian (06/28/01; 18:38:08MT - usagold.com msg#: 57116)
HR4541 + S2697
HR4541 has passed the house, which removes the energy and metals market from public scrutiny and regulatory oversight. Barrick Gold is a banking entity with mining opersations on the side. A few days ago the FED purchased a lot of gold and silver with its freshly printed money and during the last few days dumped it and used the proceeds to buy todays stock market. Yesterday's interest cut did nothing to bolster the stock market so today the FED stepped in and moved the market up. It won't last. Internet excecutives and wall street insiders still have mountains of stock to sell they had accumulated for pennies on the dollar. As long as the FED can print $1000 at a cost of 15 cents and buy gold with it and then dump it to support the stock market I just can not see gold being able to make a large move. Especially when gold is purchased for $270+or- and dumped at BIS for trade settlement dollars worth $540 per oz of gold. We the common people can not do that nor ever will be able to do so with HR4541 + S2697 passed. We the people are screwed, period.....

Randy (@ The Tower) (06/28/01; 18:07:52MT - usagold.com msg#: 57115)
Sierra Madre and the obscurities of a concept called "money"
http://www.usagold.com/cpmforum/archives/2720016/default.html
Yesterday I continued with progress on a particular presentation of thought that I had actually begun at the beginning of June. I had asked our visitors for their input on what the term "sound money" meant to them. I have archived their many answers, and shall elaborate on that in due course.

But in the process, a strange notion occurred to me. How could I possibly embark upon a discourse of "sound money" if we did not first establish what money is. It is not what people here might superficially think it is (or rather WANT to think it is.)

Gold is definitely wealth; its a highly liquid, immutable, tradable tangible asset. For that reason some of us can never have too much of the stuff. But is it "money"? In your comment to von Braun, you indicated that our units of "dollars" were once upon a time defined as a definite quantity of gold. Clear as a bell, a gram of gold is a gram of gold, just like a dollar of gold would be a dollar of gold!

But soon after, the bell ceased its clear peals, and somehow gold (under the bulk of its dollar weight <ha ha!>) got unfortunately mired down in the concept we call "money". As it turns out in the end, the "dollar" could morph itself into the "right shape" for money, but despite gold's supreme ductility and malleability, the metal could not.

"Money" is one of those things that lots of folks talk about, though few people really REALLY understand. It's kinda like this: do you REALLY know the back of your hand as well as the saying goes -- "like the back of your hand"? Literally, yes; but figuratively, probably not. Some of life's most basic mundane items regularly pass below our noses with very little focused scrutiny.

It's one thing to discuss money or monetary systems generically, but it's time we give the actual concept of "money" (in and of itself) some of the intense attention it deserves, particularly here at a gold discussion forum. And for that, I'll slowly but surely try to suitably piece together for this format a rather challenging presentation on the concept of money that we all live with whether we like it or not. Because the notion of "value" is also an importantly player, I introduced the initial food for thought yesterday (click URL) in msg#: 57004.

Have a look, give it some thought, and stay tuned....


CoBra(too) (06/28/01; 18:01:36MT - usagold.com msg#: 57114)
@ auspec - re - Rio Tinto Zinc ...
Before it becomes an obsession I would like to point out and I hope that I'm correct-"The Zinc Co." dates back to the early 1900's and was founded by Herbert Hoover, a geologist, who later became President of the USA, in 1929? - anyway he was the forerunner of FDR - too bad, since he was a real philantropist.
The same co. became Rio Tinto Zinc, then RTZ and back to Rio Tinto - and they still hold 40% in the Cortez JV in Nevada, which is essentially the famed "Pipeline Deposit", Gold Acres and some, with PDG holding 60%, after squeezing out Goldfields interests for peanuts!
As the Cortez JV may be peanuts for RTZ - it's probably the lifeline for PDG - and you have to wonder about their recent takeovers - Western Areas (50% for cash) and Getchell Gold (100% for stock)and the latter doesn't even produce now, due to new evaluation and interpretation of geolical and technological overhaul. Though the potential is great ... as PDG did not really add to the reserves of late.

Oh, well it's too late to debate the fate of PDG, reminding me of a mouse, wanting to be - an elephant and turned a louse! ... What a waste of brilliancy, talent and ability by a management writing down successibly, excessively Mt. Milligans, Las Christinas and others agressively! ....

An ounce in the ground ... may be encumbered not by hedging alone - no, it may be also prone to belong in the end to someone, who's able to contest this conquest.

... and then, we're talking again at the same amount of ounces in the ground - as mergers are only consolidating known reserves into fewer players - ... and playing 'em into the hands of the betrayers, who are willing and able to put some cash on the table ... though, in the end they're only the strong arm of the BB's - even if they pretend to abhor these.

The ABX/HM absurdity of a mismatch - is that what you've got to understand as an oxymoron? - proves this thesis? - No? ... Just wait for the next (ba)hedger to raid my long haul larder ... as vultures try harder to rip out a scrap from the same carcass ... as new ones will be hard to find - in kind.

HM - it's sad to see you go, though you've had your day and I'm sad to say I couldn't wait for your last decay - so I've boldly sold and didn't wait for the final bait of your scavengers ... R.I.P.

I've loved you too - cb2

PS: and I've made an annualized 200% too - thank you ... and you know it's only a token of what I've invested in you - in terms of trust -fare-well or go to hell!


Leigh (06/28/01; 17:40:01MT - usagold.com msg#: 57113)
Wrong Link
http://www.newsmax.com
Sorry, misspelled the link.

Leigh (06/28/01; 17:38:50MT - usagold.com msg#: 57112)
"Go Back to Gold" in NewsMax
http://www.newmax.com
Newsmax has a story on called "Jack Kemp Says Go Back to Gold." It's listed on the left-hand side of the home page.

Gold Trail Update (06/28/01; 17:36:01MDT - Msg ID:57111)
The Gold Trail Discussion has been Updated
The Gold Trail Discussion has been updated. Click on the link to read the latest updates.

auspec (06/28/01; 17:06:17MT - usagold.com msg#: 57110)
Out of Franco-Nevada's Annual Report
Outlook For Gold

"We firmly believe that gold prices will move higher but have no strong view as to when this will happen. Our studies, and those of our peers, indicate that 90% of gold projects require at least US$350 per ounce of gold to generate after-tax returns of 10%. Gold has been in a bear market for over 20 years!"
"The best predictor of higher commodity prices is a sustained period where prices are well below the all-in cost of production. This situation currently exists in the gold industry. The industry has been driven down to the point where its total global market capitalization is below US$32 billion."
"We believe tremendous bargains can be obtained by buying out of favor cmmodities that have long-term development potential."

Comment: Hold out Franco!


auspec (06/28/01; 16:35:16MT - usagold.com msg#: 57109)
nickel62
Barrick and Homesteak per Robt Bishop
Thought you might be interested in the perspective from Robt Bishop and his Gold Mining Stock Report as it relates to Barrick and Homesteak. How did it come about that 2 entities as "culturally different" as these 2 could end up together? Homesteak basically "capitulated at the bottom of the market", and will in the end be known for taking the 'golden parachute' for management, as opposed to looking out after shareholders. Bishop reports from what he calls a 'quality source' that homesteak and Newmont were in advanced discussions prior to Barrick coming into the picture. Homesteak's Jack Thompson then made a call to Barrick for purposes of courtesy or improving the deal, then ended up in Barrick's hands. This may be how your Homesteak got taken out 'so quickly'. Bishop is in agreement with many that the new Barrick is largely a banking entity with "mining operations on the side."
Yes, the juniors are a 'burning match', subject to extinguishment or brilliant flame, sometimes both. I like your statement "Gold producers and gold investors have found themselves as pawns in a much larger game that has run for a very long time and now threatens to consume those who are unaware of its implications." How{e} often does one see a pawn capture the King? Stay tuned! Nothing lasts forever, especially a sham taken to such an extreme. Might I add that the 'cabal' has made the fatal mistake of underestimating their enemies? Trying to do away with market cyclicality, such foolishment.
Since you're into 'nickel', what do you think of Aurora Platinum looking for nickel in Canada and finding diamond kimberlite? An interesting twist on Diamond Fields looking for diamonds and finding one of the world's largest nickel mine. Hope they work out the same. I follow the junior explorers even more than the junior producers you mention, they are at current give away prices. Quickly burning matches!
A fascinating confluence of events leading to today's gold market imbalance. The Child King's banker, the Russian smeltdown, Japanese doldrums, South African politics, and CBs going to the extreme, even for them; leads to quite the opportunity from this angle.
Regards,
auspec


Sierra Madre (06/28/01; 16:25:46MT - usagold.com msg#: 57108)
Just a little note to Prof. von Braun....

It is incorrect to speak of a fixed "gold price".

What was actually fixed, or it was attempted to fix, was not the "price of gold", most definitely.

It was the price of the "dollar" or the "pound" or the "mark" or the "franc", etc., in terms of how many of those units it should take, to purchase one ounce of gold.

Big difference, sometimes obscured.

Sierra


Centennial Precious Metals, Inc. / USAGOLD (06/28/01; 16:17:15MT - usagold.com msg#: 57107)
Thanks to derivative pricing, this is our lowest price yet on the Chervonetz!
http://www.usagold.com/onlinestore/special.html


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SHIFTY (06/28/01; 16:07:42MT - usagold.com msg#: 57106)
The Stranger
From The Wall Street Journal
Commentary
Our Economy Needs
A Golden Anchor
By Jack Kemp

Stranger: I picked up a soggy /wet copy of the WSJ(last one in the box) and could not find the story. Do you know what section / page I can find it?

Thanks
$hifty


Randy (@ The Tower) (06/28/01; 16:00:06MT - usagold.com msg#: 57105)
Another excerpt from the Gilded Opinion's "Rocket School of Economics"
http://www.usagold.com/gildedopinion/RocketSchool/20010514.html
By Professor von Braun

Title: "The Coming Bull Market in Gold Stocks?"

There is these days much comment around about the traditional role of gold and gold stocks during periods of economic downturns. Personally I am opposed to the word traditional when I see it used both in relation to gold and as an attempt to explain today's gold market.

What we do know is that gold has a tradition of being at a price fixed by a central bank and traditionally one could redeem ones paper "whatevers" for gold. Traditionally this redemption process has proven problematic, especially when the issuing of paper became a tad overdone. During a period of crisis the Bank of England suspended redemption of the pound for gold in 1797. President Nixon closed the gold window in 1971 and the US dollar was no longer redeemable in gold. Governments and central banks traditionally tend to monopolize the gold market and change the rules to suit themselves.

The value of an ounce of gold does not of itself change. It is what it is. The price it commands is dependant upon how it, in relation to its alternative, the local coin of the realm, is perceived. For many years (from 1834 to 1933) that price was set at $20.67 per ounce. That's what gold miners received for every ounce they mined and sold. It was a simple equation.

On January 31st, 1934 President Roosevelt "proclaimed" the official price of gold to be $35.00 per ounce, a fixed price that lasted through to 1970, when unofficially gold was trading on the London market closer to $40 per ounce. This proclamation devalued the US dollar by 59.06 per cent. It was not the content of an ounce of gold that changed, it was the value of the local currency that changed. Quite a large change actually.[OK, let's see a show of hands...Who still wants a gold standard? "Governments" haven't changed!]

[...skipping foward a bit for another excerpt regarding gold stocks...]

A collapsing dollar and a rising gold price will be the first clue that the cupboards are nearly bare but not an indication that the war against gold has been lost. At that point however this event won't be far away.

Now back to the bull market in gold stocks brigade with some questions:

### If you have a collapsed stock market as in 1929, then where is the interest in gold stocks going to come from and what sort of gold stocks are we talking about?

### If the mutual fund industry gets decimated, what will that do to their respective gold mutual funds? Could they be redeemed because of a desperate need for cash?

### What will the effect of a rising gold price have on heavily hedged gold mining companies?

### If you are looking at unhedged producers do you know what their ability to maintain production actually is, given that most miners are not replacing reserves at these price levels and new production will take time?

### Where will the value in junior exploration stocks actually be? Owning a gold resource may be great but what good is it if it cannot be turned into cash flow or if it is in some exotic location?

### Will the stock brokering community, especially the more speculative side of it, be able to absorb a serious stock market crash and be able to promote gold stocks at the same time?

### A rising gold price may increase the risk of nationalization of mines in poorer countries, especially if there is a backlash against the US dollar and American economics. Do you understand sovereign risk?

### Will gold stocks return to their more traditional role of being a source of reliable dividends and end up with relatively low P/E ratios?

Yes, an interesting market in gold stocks will arise once the gold price bottoms, and this 21-year bear market ends, but to assume that it will take the same shape as the run up in gold stocks from 1979 through to 1986 may be a mistake. We believe that the key will be in gold mining companies that have unencumbered production, coupled with good existing producible reserves and/or projects that can be brought into production relatively quickly. From a speculative standpoint one would look for "juniors" that have projects that have completed the permit process and are currently on hold.

We firmly believe that owning physical metal is the key to taking advantage of the coming bull market in gold. No question. At these price levels gold is a gift. Our next choice is in owning companies that have unencumbered production, followed by companies that own a permitted mine that has strong cash flow potential.
---END---

OK, given the percentage of excerpted material, there might not be much incentive left for you to visit the URL, but at least you've now been exposed to some important issues right here, right now.


nickel62 (06/28/01; 15:43:24MT - usagold.com msg#: 57104)
auspic you are correct I overstated Horatio's openness to additional factors.
As a large shareholder in HM, I have been searching for a suitable insight into the current merger. I was quite surprised that Thompsen sold out so quickly to ABX and after having stayed somewhat pure over the years. I can imagine that the pressures on all the unhedged producers has been incredible for the last several years. To have your credit providing bankers and advisors trying to constantly get you to hedge at the same time they are providing you with needed credit must have been an excruciating experience for these companies and their managements. I share your distaste for ABX but as an old man I have learned to try and not allow my anger to keep me from being in the right place when the market finally comes my way. Because of this the question of what is really going on is very crucial at this point in time, since as you point out there are really very few viable unhedged producers left to invest in. If they are about to be eaten one by one to force a capitualization of their unhedged reserves then the pressure will be all the more excruciating for all of us gold share investors. The juniors are really an entirely different kettle of fish and are often many years away from returning to successful production. Dayton Mining and several others from the past come to mind. THe investor in these juniors also always stand the risk that they will be severely dilluted by a needed new round of financing to restart the idled mine or finish the property development. Newmont and Goldfields stand alone now with a few multi mineral producers like Freeport McMoran Copper and Gold and Agnico Eagle. The dozens of juniors that were around five years ago have breakeven prices a hundred dollars or more above current market and would need prices far above that to be economic in many cases and whole new financings to ever get anywhere. The number of world class gold deposits that are available in the short term can most likely be counted on two hands and many of them appear to be targeted for a fire sale acquisition by the very companies that helped create this ridiculously low gold price. The factors that led up to this situation are as complex as the possible outcomes but clearly the desire of a small group of people to use their power to control fiat money and thereby effect the world economies to their advantage was at the root of it. GOld producers and gold investors have found themselves as pawns in a much larger game that has run for a very long time and now threatens to consume those who are unaware of its implications. My excitement at Horatio's insight was my hope that perhaps he had provided an unthought of piece in the puzzle that allowed this situation to unfold. Clearly no one would have the arrogance to take on such massive risk without the full cooperation of those who could destroy them. The governments of the world wanted this to happen and were able to do it for many reasons. The russian dismantling and selling off of their entire countries mineral wealth provided part of the cover and the financial bankruptcy of the Japanese economy and their zero interest rate strategy played a role. Also the desire of the white gold mining interests in South Africa to monetize their otherwise politically vulnerable gold reserves by the use of central bank gold and the creation of paper gold dirivatives certainly played a critical part. Who cooked it up and who allowed it to happen will probably be as difficult to find out going forward as understanding what is happening has been heretofore.

Max Rabbitz (06/28/01; 15:42:22MT - usagold.com msg#: 57103)
Two Questions
1) Isn't this the time of the month when paper gold holders have to decide if they want delivery? The manipulators go all out now to try to drop the gold price hard now in an effort to dissuade them from taking physical delivery. The surprise is the strength of the attack. Perhaps reflecting the desperate need to get below a certain price? Seems like the end of the month is the best time to buy.

2) Doesn't ABX have to find an a source of above ground gold willing to be lent before they can forward sell the Homestake gold? Or can they do it all with paper?


Randy (@ The Tower) (06/28/01; 15:16:52MT - usagold.com msg#: 57102)
A Nov'99 tidbit from the archives of our Gilded Opinion by Hans Sennholz
http://www.usagold.com/SennholzPerilDollar.html
TITLE: "A Perilous Dollar Standard"

"The world monetary system is about to change again. ...failure to prevent the numerous crises, which put nearly all countries in serious jeopardy, is casting serious doubt.... The precarious condition of the very dollar base and chronic foreign account deficits of the United States at the expense of all creditor countries are discrediting the dollar authorities. This explains why governments and central banks throughout the world are becoming ever more reluctant to grant the U.S. government a permanent monopolistic position in matters of world money. In crisis and despair the world may choose gold."
----------

Although written many months ago, this one does a fine job pointing out the weakness inherent in our legacy international monetary structure. As the "yesterday's" system morphs into "tomorrow's" successor via an evolutionary process of self-adjustments, (most imperceptible, some shocking) Mr. Sennholz says, "the world may choose gold." True indeed. But at issue, and the focus of much debate by many of us here is in regard to the outcome of that choice for the specific and crucial ROLE to be played by gold within the overall monetary/banking system.

See the link above for some background on the problems, and stay tuned here for the frontrunning "solution" (or should I say, the "next step") for individuals and mankind together.


Max Rabbitz (06/28/01; 14:12:40MT - usagold.com msg#: 57101)
Oops, I missed the warning.
Guess I'm still on. It was a topic much too far removed from gold. Enough said on that.

Rockgrabber (06/28/01; 13:26:08MT - usagold.com msg#: 57100)
USAGOLD... Whats going on?
Holy Cow. I know this is a gold site, but many roads turn off from this one. Often times they come up. They are discussed here by those who wish to participate, and I appreciate those who do. Freedom on this site is being taken away. Randy, Sir, post 57074 scares me, as did the one that kicked journeyman off from MK. People are going to be scared to even discuss another topic. Yes this is a gold site, but many topics spring to mind. Would you like Black Blade to stop posting about the energy sittuation, or some to stop posting about the Mid-East? Or even the Euro. Gold has many relevent discussions to be discussed, not all have the word gold. Sometimes some might get carried away, but I can scroll past. If they are getting carried away, then think why they might be getting carried away? Dont worry they have gold on their mind. I just dislike so much controll being displayed with no appreciation for what is being discussed.

Peter Asher (06/28/01; 13:13:21MT - usagold.com msg#: 57099)
auspec
Thanks for the news I was wondering what could cause this morning's opening spike in the SM. Perhaps this is what the trigger was.

auspec (06/28/01; 12:55:13MT - usagold.com msg#: 57098)
Microsoft Breakup Ruling Overturned
http://www.msnbc.com/news/563498.asp?pne=msn
"....actions of the trial judge seriously tainted the proceedings before the District Court and called into question the integrity of the judicial process."
Stay tuned.


Peter Asher (06/28/01; 12:48:10MT - usagold.com msg#: 57097)
Pragmatic, speaking of DJB

When both this Forum and GE were contemplating what would transpire if Twelve Trillion dollars of Japanese savings were to be directed toward gold accumulation the following exchange occurred. -----

(Diogenes) @ (watashi-wa) Jun 13, 14
------------- Today, Japanese savings well over $12 TRILLION US dollars - US$12,000,000,000,000 is much buying power, yes? --------

It would be if it were there to spend.

What escapes most folks is that you don't SAVE money in a bank, you LEND it to them. Other then the very minor reserve requirements, that money has been loaned out to others or invested in whatever else the bank chooses to use as a paper profit via.

This is why Japan's economy is so dismal. Instead of taking the earnings received for their labors and hiring their fellows in kind (That's what consumer spending IS) they sent 12 trillion off to the banks, which money then went to borrowers or security sellers and from there to whatever they purchased with it. A good portion of that 12 trillion nest-egg may have gone into our T-bonds to finance our welfare state.

What the savers have is an IOU demand on bank-book journal entries that in turn are either earning interest on loans or can reclaim invested funds by selling the respective securities. The 'buying power' therefore exists only to the degree that 'other peoples money' stands ready to buy back those various stocks, bonds, or whatever other instruments the banks invested in.

As 12 trillion is 'real money' on a global scale, given the current state of the international debt bubble, there may not be much of that 'other peoples money' out there to liquidate the investments should all those savers decide to go on a spending spree.

Back in school days I knew a guy who never paid back money that other kids loaned him. When they persisted he would reply; "I'd rather owe it to you, than do you out of it!"

This is the primary reason to 'save' by purchasing gold. You may not have any monetary 'growth' but you are never dependent on other people or their government's money to be made whole.




Alot of Japanese savings are under the mattress or in money market funds..
(TheReturnOfDJB)
Jun 14, 12:30 that figure is not purely made up of savings accounts, which is really money lent to the bank, which then tries to earn a higher return by lending those funds out at a higher rate on those funds and profiting from the spread. Japanese also have trillion in us bonds which can be sold and they have trillion in marketable securities
which can be sold easily. The Japanese, even if you exclude savings accounts, have trillions of dollars that are liquid. The Japanese have billions upon billion of US real estate and real estate around the world. Basically, the Japanese have so much money, outside of pure savings accounts, that its will stupid too argue the point. They got more money stashed then the rest of the world if all the banks in japan collapsed and allloans went bad.

Don't mess with the Japanese, their buying sets the long-term trend in the financial markets. They buy gold
long-term, gold is going to go up long-term until they
decide to sell.

(Diogenes) @ DJB

Re- your << The Japanese also have trillion in us bonds which can be sold and they have trillion in marketable securities which can be sold easily.------- The Japanese have billions upon billion of US real estate and real estate around the world.>>

Permit me to repeat "The 'buying power' therefore exists only to the degree that 'other peoples money' stands ready to buy back those various stocks, bonds, or whatever other instruments the banks invested in. ----- there may not be much of that 'other peoples money' out there to liquidate the investments should all those savers decide to go on a spending spree."

They don't "got more money stashed then the rest of the world " They may have more 'claims' on money than the rest of the world. My point is that if that large a quantity of securities "hit the bid" that bid fall on a like the second half of a ballistic curve.

Think of it in terms of Bill Gates' "Wealth." What percentage of his paper worth do you suppose would convert money if he sold all his shares at once?

@ Diogenes....excellent comeback with your post at 14:23 (TheReturnOfDJB)

Your point about bonds being a claim etc. is understood.You have proven your point, i understand. u the man, Diogenes. thanks for the clarification. I
thought about your response when u said and I quote....."My point is that if that large a quantity of securities "hit the bid" that bid fall on a like the second half of a ballistic curve"... and i said to myself, YA know what, Diogenes is right. your right, good job
the bubble


Randy (@ The Tower) (06/28/01; 12:45:03MT - usagold.com msg#: 57096)
While we're on the euroland/gold subject...
I would be remiss if I failed to mention that on June 29th (this Friday) the eyes of the ECB will turn toward a discreet room done up with Rothschildesque decor. The reason is that this is currently the Eurosystem's best mechanism with which to fairly determine the value placed on gold by the "free market", meaning, all of us humans. With results of the London fix on Friday as the representative voice of the market, the Eurosystem will mark its gold reserves to this market value for accounting purposes for the duration of the following quarter.

Now you know.


auspec (06/28/01; 12:42:04MT - usagold.com msg#: 57095)
nickel62
Nickel62: "Neither Horatio nor I made any claims that this explained the entire process."

Horatio: "This whole gold decline was caused by SA companies desperate to get their wealth out of the ground before they were thrown out on their ears by the mandela people."

Nickel62, I am in complete agreement with the general message of your post #57076, and in fact could have written it myself. What it all comes down to in this current gold merger environment is..........Who can you trust to uphold gold's honor? Horatio seems to think that the new Barrick is something to celebrate, but that will be like having Freddy Kreuger come to spend the night with your kids. There will be a reason to get the entire family together, but it won't be to a joyous occasion.
This good guy/bad guy gold miner labelling is not exactly science, and also subject to sudden change. Please indulge my opinion on this matter. Barrick has now eaten the Homesteak and will continue looking for the next meal. Barrick and anyone they digest will be proven to be against a free trading gold market. Same with Anglo. These are clearly the elitist controlled entities. As per other large miners, I would include FN, GOLD, Harmony, and Durby as more 'independent' companies. Are they really, or do they also have their price? Will they find a way to stay 'on sides' and maybe even merge themselves? Can they withstand the presure coming their way?
You know, if the Barricks and Anglos get somewhat larger, one will have to start thinking in terms of what DeBeers accomplished in their field. Rio Tinto can certainly pull its own weight with Barrick and Anglo.
It has been many years now that the gold market has been withering, many of the survivors are hanging by a thread. Homesteak was quite vulnerable in this market and cannot feel very good about a 30% premium for their company. That is a few day's movement in the soon coming gold express. What I'm saying is that it is time to start picking over the 'scraps' of remaining miners, they are at the bottom, and if you wait longer someone else will grab them. This is starting with Seniors, and will spread to the mid tier producers, then finally to any surviving Juniors. I doubt a remaining junior is going to be snatched up for a paltry 30% premium.
How do you see the division of gold producers?
Regards,
auspec


Netking (06/28/01; 12:39:51MT - usagold.com msg#: 57094)
US Hits China, North Korea With Sanctions
http://www.7am.com/cgi-bin/catwire.cgi?POLITICS_1000_2001062801.htm
Excerpt:
The U.S. State Department has slapped sanctions on Chinese and North Korean companies for selling chemical weapons materials and missile motors to Iran, the Washington Times reported Thursday . . . .While the sanctions are in place, no U.S. firm or company may conduct business with the Chinese and North Korean companies, or assist them in any way.


Netking (06/28/01; 12:33:30MT - usagold.com msg#: 57093)
Sierra Madre
As well as distribution outlets you've already mentioned can you give us the amounts of Ag coins minted for this? TIA - Netking

Tree in the Forest (06/28/01; 12:32:48MT - usagold.com msg#: 57092)
"wheels come off the Federal Reserve"
I have to agree with Megatron. The wheels must come off the Federal Reserve. What do we need banks for anyway? With your savings in physical gold and electronic gold, most bank functions are fulfilled and without all of the inflation. Want income? Invest in corporate debt or equity. Banks are like casinos. They are run for the benefit of the owners, not the players. At least at a casino, you get free drinks and a floor show!

Crossroads (06/28/01; 12:31:26MT - usagold.com msg#: 57091)
Are we operating under the Constitution?
http://www.etherzone.com/sees070501.shtml
Interesting article for those who think we have constitutional rights at Etherzone.

Peter Asher (06/28/01; 12:30:20MT - usagold.com msg#: 57090)
J-Man

Good to see you back. Glad you got some extra time in on income producing work. Re-check msg#55076 5/31 to figure out how to compute the negotiation fee. I prefer Sovereigns but if CPM is having still having the special on German Marks that will be OK also.


Pragmatic (06/28/01; 12:25:57MT - usagold.com msg#: 57089)
Welcome back Journeyman
Journeyman: You found out how respected you are here.. did you not?

Sector: Yes, that is the point but I did not say for how long it would be at 140 only that a grossly overvalued $ is untenable.

Tree in the Forest: DJB is underestimating the ability of a market to go to extremes. Look only as far as NASDAQ and other markets that went to insane levels- the $ is no exception. As to the stock market? I begged my friends to exit their stock positions at DOW 9500 only to have them grin at each other and switch to "growth " stocks at NASDAQ 5000. I was premature but they are, sad to say, broke. So, not to say DJB is incorrect but to say I would be uncomfortable shorting the SM at this time. My prediction of $140 is simply my guess at an extrapolation of a great bull market and where it's reasonable blow off point is. My contention is it will end in from concerted intervention has historical precedent and makes market sense. Also, it makes sense to me that there is only one alternative (certainly not the Euro) to the $ and that is gold. If DJB is making a mistake I believe it is allowing himself to read into the market that what makes sense to him.. often a fatal mistake. Then again he may become very accurate and call these markets exactly. We shall see.

Well, as to me... why am I taking nickels from gold when I could have been cleaning up on the $, my own strong belief. Well, interestingly enough because I do not feel comfortable with longing the $.



Randy (@ The Tower) (06/28/01; 12:23:50MT - usagold.com msg#: 57088)
The Netherlands or Austria... or Greece(?). Someone shed (*GASP!!*) one tonne last week.
Of the 15 signatories to the 1999 Washington Agreement, the Dutch and Austrian CBs are the only two gold sellers that are members of the EMU. While Greece is a new member of the monetary union this year, they were not a signatory to the WA.

As we stand today, Austria has designs to reallocate 60 tonnes while the Netherlands have 200 tonnes remaining on their reallocation platter. Greece is a free agent, unbound by the WA, although the ECB is now a guiding force in the disposition of gold reserves.

So, whodunnit?

In reproting that its consolidated financial statement had declined by 10 million euros (leaving 118.454 billion) in the "gold and gold receivables" line item, the ECB announced that the one tonne sale last week by a member central bank was "consistent" with the WA.

Given the background as I've presented it, I'll leave it to you to speculate.

Perhaps the Deutsche Bundesbank is making tangible progress on its earlier proposal to issue a 12 gram commemorative "one mark" bullion coin this year? For as surely as I sit here in The Tower, the gold would have to come from somewhere!


Sierra Madre (06/28/01; 12:23:11MT - usagold.com msg#: 57087)
Randy @ the Tower
Hi Randy!

This is a Forum which provides an intellectual outlet and also intellectual ammunition for an extraordinary group of thinkers. The very top "movers and shakers" would do well to monitor it daily.

People with above average intelligence are interested in many things, and their natural curiosity may lead them, occasionally, to topics not strictly limited to precious metals and general monetary and financial affairs.

However, I am sure that all are well aware that they must not stray too often from what is the legitimate purpose of this Forum, so kindly provided by USAGOLD. Thanks for your patience!!

Here's a tidbit for today:

Yesterday, Elektra, a chain of stores, launched its program of silver sales in Mexico, of the 1 oz. .999 silver coin "Libertad", in a pilot program of 5 stores, which will increase to 11 stores over the weekend; the objective is 550 stores in four months.

T.V. coverage will begin shortly.

Sierra


megatron (06/28/01; 12:10:39MT - usagold.com msg#: 57086)
Good luck
The odds are near mathematical zero for the Fed to remove it's choke hold on gold. Voluntarily. There have always been 'rabble rousers' in the US congress and they get NOWHERE. First they ran through a bill to create an unconstitutional central bank, then they made an executive order to steal all the gold, then they ordered the president to sign a bill removing the gold link to the currency. Does anyone here actually think they will listen to the 'ramblings' of Jack Kemp, et al?!? I'm sorry but it's all interesting speculation until the wheels come off of the $US reserve system. Until then you and I will witness the most brazen criminal hideous insane monetary acts the world has ever seen. Like a vampier with a stake above its heart.

auspec (06/28/01; 11:54:21MT - usagold.com msg#: 57084)
Jman
Hope you're tanned, well rested, and ready to go after your 'vacation'. Welcome back and kudos to PA, MK, and you for working this out. Now if you can work out the small gold issue..........! (There, Randy, GOLD mentioned in this post, count it}.
Regards


sector (06/28/01; 11:48:01MT - usagold.com msg#: 57083)
@Pragmatic If the Dollar Index Goes to 140...
..with a 25% competitive disadvantage today, How many of our heavy industries will survive such a lofty Dollar Index?...Not many.

Speculation in currencies does not happen in a vacuum. Real companies with real debts are impacted...many will fail. Others will opt for escape offshore. Foster Wheeler, our only remaining refinery manufacturer and only coal power plant manufacturer has mover to Bermuda to escape onerous taxation and recoup some profitability.

If your prediction comes true, don't be surprised to wake up and see Boeing, Caterpillar and others escape the madness of the Federal Reserve's Monster.


Tree in the Forest (06/28/01; 11:46:21MT - usagold.com msg#: 57082)
Journeyman, Pragmatic
Journeyman: Great to see you back.

Pragmatic: I was wondering how you might respond to DJB's contention that the dollar has little upside potential beyond 120. He also seems to feel that a stock market decline will precede a dollar decline and that these are very close now. What do you think?


Stocks, Lies, and Ticker Tape (06/28/01; 11:32:06MT - usagold.com msg#: 57081)
The Stranger
I see all the Kemp hoopla, as a response to his using the word "gold" in a positive manner. Kemp enjoys the attention. IMHO

The Stranger (06/28/01; 11:20:32MT - usagold.com msg#: 57080)
Kemp
Kemp takes an awfull lot of column space to propose the very system we've already got. In short, he proposes a "defacto" gold standard where people buy and sell the metal in a market place which is rigged by central banks. Is this not precisely the basis for Reg Howe's law suit, that the PRETENSE of a free market in gold defrauds those innocents who choose to participate?

No thanks, Mr. Kemp. Either set gold free or set your standard in stone.

And what about that deflation? Last I looked, the CPI was climbing at an annualized 5%. It has risen, in fact, in each of the past two years.


Stocks, Lies, and Ticker Tape (06/28/01; 11:18:51MT - usagold.com msg#: 57079)
Journeyman
Great to see you're back!

Journeyman (06/28/01; 11:17:23MT - usagold.com msg#: 57078)
Interesting! @ALL

Well,

That was a most interesting experience!! Thanks to all you folks who put in a good word for me!!

It's amazing how much more of "my own" work I got done during my "vacation!"

Sorry about that pop-up. Really obnoxious. That turns out to be part of the true cost of a "free" website. Originally there were just a few relatively discreet ads, top and bottom. I guess the dot.coms are worried about joining the ranks of the "dot.gones" and are getting more desperate for some bottom line.

Regards and thanks again,
Journeyman


Stocks, Lies, and Ticker Tape (06/28/01; 11:15:24MT - usagold.com msg#: 57077)
Hill Billy Mitchell
Are you still out there?
I hope your code is not part of that big bone pile.

nickel62 (06/28/01; 11:08:53MT - usagold.com msg#: 57076)
auspic I agree that it is only a piece of the puzzle but maybe not as insignificant as you imply!
The world is a very complicated place as we all will acknowledge. If there was a desire by the South Africans to move their gold reserves to a safer haven in light of the political changes that have occurred in South Africa over the last ten years, it would be a backdrop for other events and not necessarily the prime mover. Neither Horatio nor I made any claims that this explained the entire process. At the beginning of this last decade the world was in a tremendous banking crisis in the US and elsewhere that necessitated the use of extrodinary measures to resusitate the moribund large banks in the US and elsewhere. The South African gold reserves overhung the physical gold market much like the Central Bank party line of Gold is a non interest bearing relic overhung the physical gold market. Enter this scenario a smart young treasury secretary with a strong dollar policy and the need to stave off the monetary problems of the middle part of the ninties and you have a backdrop that allowed the smart well connected gold carry trade to create or monetize the stored physical gold of the Central banks and the as yet unmined reserves of South Africa and other producers who saw the hand writing on the wall(or were more likely wispered to by their friendly bankers) and you created a one way direction for the gold price. Driven down by relentless selling of paper gold made riskless by the availablity of huge reserves at producers like American Barrick and Anglogold and the willing cooperation of the Central Bankers who were more than happy to see the major inflation indicator suppressed so successfully and for so long. The gold carry investors made billions. The central banks lent and then looked to future gold production to replace their non interest bearing asset, and benefited with the paper money creating power that the low inflation eviroment made possible. Rubin gets to make sure the dollar stays strong by insisting that foreign central banks send there US dollar trade earnings right back to be invested in our US treasury market, resulting in lower than normal interest rates, in our wildly speculative stock markets which results in wealth effect for millions of american consumers, and the investment community resuffles the world's savings with much of it ending up in their accounts. South Africa was but one of the sources that allowed this manipulation to have the teeth to make any amount of gold dirivative selling virtually riskless..

The Invisible Hand (06/28/01; 11:06:05MT - usagold.com msg#: 57075)
Timing?
Last Saturday the FT, today the WSJ.
What's happening?


Randy (@ The Tower) (06/28/01; 10:57:01MT - usagold.com msg#: 57074)
For as long as this has been a Discussion Forum...
...it has been a GOLD discussion forum; and the only sound you'll hear echoing in your ears if you pursue dialog on such off-topic items as AIDS is the sound of your posting code being tossed onto the bone pile. As always, your "fate" is in your own hands. Act wisely.

The Stranger (06/28/01; 10:52:53MT - usagold.com msg#: 57073)
From The Wall Street Journal
June 28, 2001

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


Commentary
Our Economy Needs
A Golden Anchor
By Jack Kemp. Mr. Kemp, co-director of Empower America, was the Republican vice-presidential nominee in 1996.

How many more dashed hopes and false recoveries must we experience before politicians and monetary authorities accept the fact that our inability to manage fiat currencies is causing the global economic slowdown? They keep waiting for interest-rate reductions to kick in, yet more than six months after the Fed began lowering rates the economy continues to weaken. Waiting for the recently enacted tax cuts to provide "stimulus" will prove futile as well. The economy does not suffer a lack of consumer demand, and more money in people's pockets will not revive the supply side of the economy.

Unprecedented Experiment

Ronald Reagan once said he knew of no great nation in history that went off the gold standard and remained great. Since Aug. 15, 1971, when the U.S. ceased to redeem dollars held by foreign governments for gold, we have put that thesis to the test. For the first time in human history, not a single major currency in the world was linked to a commodity. Economist Milton Friedman called the situation "unprecedented" and said it is "not a long-term viable alternative." "The world," he said, "needs a long-term anchor of some kind."


In the short term, at least, he was vindicated. In creating a world monetary system of floating fiat currencies with the stroke of a pen, President Nixon touched off world-wide inflation that lasted through the '70s and early '80s.

Yet America recovered to preside over the demise of world communism, and overcame the rising inflation and unemployment of "stagflation" to enjoy an unparalleled 18-year economic expansion. Today, the U.S. is at the pinnacle of its power and enjoying its greatest prosperity ever.

Were Messrs. Reagan and Friedman wrong? I don't think so. If the U.S. has so far come out on top in this experiment, it is only because other countries' economies have suffered even more from floating currencies.

Once the U.S. government ceased redeeming gold at $35 an ounce, its price quadrupled on world markets to $140 to reflect the dollar's diminished value. By breaking the gold link, the Nixon economic team forced the unwanted liquidity pouring out of the Fed -- which had thus far built up in the Eurodollar market and the portfolios of foreign central banks -- to remain inside the U.S. economy where it would manifest itself in price inflation. Robert Mundell was the first to predict, in January 1972, there would soon be a dramatic rise in the price of oil, with general inflation to follow.

Where the rest of the economics profession blamed the Arab oil-producing states for quadrupling the oil price in 1973, Mr. Mundell and those supply-siders who followed his intellectual lead knew that gold's quadrupling had led the way. Tax rates rose through "bracket creep," capital formation stopped in its tracks, and it soon took two workers to produce the same income that one had brought home before the experiment. The stagflation that had its roots in leaving the gold standard was compounded when Congress and three different presidents tried to fight it with wage and price controls and high marginal tax rates.

But discretionary monetary policy is Janus-faced, and instead of too much liquidity in the world economy we now have too little. Deflation began in 1996 when the Fed tightened monetary policy to combat some inflation it had created attempting to offset the economic drag of the Clinton tax hikes. A rising dollar then caused the dollar pegs of emerging economies to snap, set off the Asian, Brazilian and Russian economic meltdowns, and caused the price of oil and other commodities to collapse. Oil producers took a two-year holiday from drilling, which in turn created an oil shortage and drove energy prices sky high.

Now, the energy-price hikes are working their way through the economy and are misconstrued by the Fed as inflation. Once again, central bank errors in the discretionary management of floating fiat currencies have put the entire world economy at risk.

The Fed has cut interest rates 275 basis points since the start of the year, but the price of gold is still down to about $272 from $385 in 1996, having fallen $5 yesterday alone on the Fed's announcement that it was lowering the fed funds rate another 25 basis points. Commodity prices are near their lowest levels in 15 years, and the foreign-exchange value of the dollar has risen against all major currencies since the Fed began its interest-rate-easing cycle.

Without a gold standard, the Fed has no means of determining how much liquidity markets demand, and all it does by targeting interest rates is guess how much liquidity to inject or withdraw to counteract mistakes it made earlier. The Fed may be on its way to mimicking the mistakes the Bank of Japan made when it lowered interest rates to zero, all the while prolonging and deepening Japan's monetary deflation.

This is no way to manage a currency. It's obvious that we have accumulated a long series of small deflationary errors by the Fed that are dragging down the U.S. economy and helping depress world commerce. It's time to restore a golden anchor to the dollar before our luck runs out and we suffer a real economic calamity.

The Fed may yet get lucky with its rate cuts, although the Bank of Japan never did. The only certain way to end this deflation is to have the Fed stop targeting interest rates and begin targeting gold directly -- not by "fixing" the price of gold by administrative fiat as some people mistakenly characterize it, but rather by calibrating the level of liquidity in the economy, over which the Fed has exclusive and precise control, to keep the market price of gold stable within a narrow band closer to $325 than $275.

There is nothing mysterious about how gold could be used as a reference point or how a new monetary standard for a new millennium would work. It would simply mean the Fed would stop guessing how much liquidity is good for the economy and allow the market to make that decision for it. With the dollar defined in terms of gold and with American citizens free to buy and sell gold at will, the Fed would forget about raising or lowering interest rates and simply add liquidity (buy bonds) when the price of gold tries to fall and subtract liquidity (sell bonds) when it tries to rise. Markets would determine interest rates.

The paper dollar would once again be as good as gold -- no more, no less. There would be no need for the U.S. government to maintain a large stock of gold or to redeem gold and dollars on demand since people would be free to do so on their own in the marketplace. As long as the Fed calibrated its infusions and withdrawals of liquidity by the market price of gold, the world would be free of monetary inflations and deflations caused by the whims and errors of central bank governors, as was the case for more than 200 years when the private Bank of England managed the pound sterling in exactly that way.

Nothing Simpler

The good news is that this could all be done easily, if President Bush and Treasury Secretary Paul O'Neill could work out an accord with Alan Greenspan. That accomplished, I believe Britain would soon follow to make the pound as good as gold and avoid having to adopt a sinking euro.

There is nothing simpler than a gold standard, as Alexander Hamilton pointed out when he persuaded the first Congress to adopt one. Just as President Nixon took us off with an executive order, President Bush can put us back on with the stroke of a pen. It would be politically popular, as ordinary people benefit most. At Camp David in 1971, as President Nixon signed the papers, he is reported to have said: "I don't know why I'm doing this. William Jennings Bryan ran against gold three times and he lost three times."



Centennial Precious Metals, Inc. / USAGOLD (06/28/01; 10:47:57MT - usagold.com msg#: 57072)
Hard assets... Easy access!
http://www.usagold.com/gold/coins/buy.html



"For as long as cannons have thundered,
they have echoed with the sound of men yearning for gold."

-- R. Strauss




Pragmatic (06/28/01; 10:39:16MT - usagold.com msg#: 57071)
Clarification
Not so much new lows in the Euro... that is too soon! Ever currency I track is in a bear market relative to the $. Yen, Euro, SF, Brit # and less extent Aust $ and Canadian 4. The weighted $ at 140 is what I am looking at.


Pragmatic (06/28/01; 10:32:59MT - usagold.com msg#: 57070)
Tree in the Forest
Yes, but beyond that our own fed will be involved. The runaway $ will be perceived as a threat to the world.


Tree in the Forest (06/28/01; 10:26:03MT - usagold.com msg#: 57069)
Pragmatic
Hello Pragmatic. So what are you saying? That the ECB will step in and crash the dollar when the euro starts making some new lows? Is that how you see gold taking off? Thanks.

Tree in the Forest (06/28/01; 10:18:17MT - usagold.com msg#: 57068)
Oro - a worthy repost

"To end this comparison, we must also view the attempts of EU representatives to squelch the internet by assignment of liabilities to carriers for web content they can't control. The complain that the internet is "out of control". This means that the internet is largely free of political control, which is what they are complaining about. They protest about "hate speech" which, as indicated by the EU suit against Bernard Connolly, the former high EU bureaucrat who wrote "The Rotten Heart of Europe : The Dirty War for Europe's Money ", is defined by them as anything that constitutes a criticism of them; which in court they claimed was "blasphemy"."

It would seem that the EU is giving socialism a bad name. Perhaps fascism would be a more suitable description of EU policies. I assume that they don't like free markets either because they would also be "out of control". For that matter, free people would be "out of control" too. And if criticising them is "blasphemy", then I guess they think they're God. Doesn't make living or investing in Europe sound very appealing does it? Well, at least the trains will run on time.


Pragmatic (06/28/01; 10:13:35MT - usagold.com msg#: 57067)
A strong $
There is a particularly prolific poster at GE who is a staunch $ bear. He seems a likable chap and should not be discouraged.. indeed I think he has the potential to become a good TA. But the point is that he is the point. All his rationale for a weak $ is correct but the $ is in a major bull market in the face of his rationale which makes it even more formidable. I know, I have been so bullish on the $ that I should change my nick to $bull, but the importance of the $ for us gold bugs cannot be overstated. There are two contenders, $ and gold- and presently the $ is winning. Yes, I was stopped out of my gold position with "running around town" profits but that does not change my idea of gold now being in a bull market. I predicted 140 $ by 2002 several months ago and I stand by that. And I repeat content of previous posts- the $ bull market will end by heavy CB intervention at the proper speculative moment. And that is not 120 but at least 130 when the $ is being bought with panicky enthusiasm where a nominal show of resolution by the CB's will cause massive profit taking and a watershed change in the idea of store of wealth to the favor of gold.

KarenSue (06/28/01; 10:00:51MT - usagold.com msg#: 57066)
Who's in charge
http://www.kitco.com/charts/livegold.html
It seems that in the last several weeks the New York market dictates gold direction. Gold seems to remain flat except when the New York market is open. Most of the new volatility occurs only when the New York market is open and especially during the time period between the London close and the New York close. The same is true with silver. No volatility except when the New York market is open.

I haven't watched silver much until lately and do not know how long this has been the case for silver, but it appears to be a relatively new phenomenon for gold.

Of course my observations are those of a novice and I may not be seeing the correct picture. Someone please tell me 1) am I hallucinating 2) If I am not hallucinating is there any significance to a change in leadership like this: - i.e. physical supply and demand dynamics changing in the U.S. but not in the rest of the world. Could it have anything to do with the speed of movement in electronic positions as opposed to the speed of movement in physical positions?

Only me, wanting to learn.

KS


auspec (06/28/01; 09:33:30MT - usagold.com msg#: 57064)
Horatio/nickel62
SA Centered Cabal?
May I point out a few flaws in your theory that "This whole decline was caused by SA companies desperate to get their wealth out of the ground before they were thrown out on their ears by the Mandela people"?
First of all, let's look at the 3 big miners in SA; Anglo, Gold Fields, and Harmony. Anglo is approx 20% hedged, which is entirely 'reasonable' according to their overall production. We gold advocates may not like any hedging, but it can and has been a prudent method of operation when not overdone. So there are reasonable hedges and there are kami-kazi hedges, ala Ashanti. I am not a fan of Anglo tactics, but their hedging is nonetheless not reckless. Gold Fields and Harmony are largely unhedged, and philosophically prefer it that way. So 2/3 of large SA miners are unhedged and the one that is hedged has done so in a reasonable manner. Not much of an epicenter here for a cabal.
There are clear links between SA and London, in that you are right, but this is only a fragment of the picture. You've got SA, London, and US as in the cabal and yet Canada is a safe haven? That idea falls far short of the mark imho. The US Govt would go to all this trouble, even using the ESF, just to help SA mine owners get some money to safety? Not hardly. Let's also not forget that Mandela is not currently President of SA.
How does your theory account for the massive Barrick short position? How does AGs statement that "Central Banks stand ready to lease gold......" stack up against a 'rescue' of some SA players? Quite a lot of effort for little result. You know if they really wanted to get some money out of these companies they might just consider a SELL???????? As opposed to some hedging which depresses the POG and makes the whole lot worth less?
There are much more plausible explanations for what has happened. Fiat vs. Gold has been the battleground for decades, Rosie Scenario at gold's expense, or simple greed via crony capitalism doing what it does best. There are cabal connections in SA, but it is only a piece of the puzzle.
Regards,
auspec


USAGOLD (06/28/01; 09:01:37MT - usagold.com msg#: 57063)
On Kemp, van Eck, and Dogs Who Know When a Storm Is Approaching
Thanks for that story FOA and the summary. It prompts me to post here this morning instead of at the Commentary & Review page.

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

Seems like Mr. Kemp has come around. It wasn't that long ago that Jude Wanniski (his associate) was still stuck on this idea of fixing gold at $300 or some such nonsense. When you blend Randy's updates on the on-going astronomical money growth and the realization that one man, Bill Gates (Net Worth $58.7 billion), could purchase nearly all of the U.S. gold reserve (approx. $70 billion), you begin to understand just how undervalued gold really is in terms of dollars.

I have Adrian van Eck's latest by e-mail and here's his take on interest rate maneuvering by the Fed:

JUST LAST WEEK WE TOLD YOU THIS: "WE DO NOT THINK EVEN ALAN GREENSPAN BELIEVES ANY LONGER THAT INTEREST RATE CUTS HOLD THE KEY TO ECONOMIC ACTIVITY. HE GOES ALONG WITH THEM BECAUSE THEY OFFER HIM A HANDY FIG LEAF TO COVER THE TRUE FED EASING POLICY...NAMELY THE FAST CREATION OF BETTER THAN $25 BILLION A WEEK OF NEW MONEY, WEEK AFTER WEEK. ($110,000,000,000 IN JUST THE LAST FOUR WEEKS.)"

AFTER THE FED VOTED TO "COMPROMISE" WEDNESDAY WITH A QUARTER-POINT CUT IN THE OVERNIGHT FEDERAL FUNDS RATE, WE ARE MORE CONVINCED THAN EVER THAT GREENSPAN IS AWARE OF THE FACT THAT CUTTING INTEREST RATES HAS NO EFFECT ON THE
ECONOMY. HE KNOWS THAT JAPAN HAS NOW ABANDONED THE TAYLOR RULE (CUTTING RATES TO BOOST THE ECONOMY). AFTER TEN YEARS OF SLAVISHLY FOLLOWING THIS RULE, TAKING RATES DOWN SO CLOSE TO ZERO THAT JAPAN CALLED IT A ZERO RATE, JAPAN IS HURTING AS MUCH AS IT HAS IN THE WHOLE DECADE.

Mr. Van Eck is forecasting an inflationary boom as a result of this money creation. Quite often he alludes in his writings to movies as almost a primal, psychic weathervane revealing the innermost understandings held by the public (along the lines of How Do Some Dogs Always Know When a Storm Is Approaching?):

O WHY DO I BRING UP "GONE WITH THE WIND" AND "A PERFECT STORM". IS THERE PERHAPS A NEW SURPRISE HIT MOVIE THAT HAS COME OUT OF NOWHERE AND - DESPITE BEING PANNED BY 100% OF THE MOVIE CRITICS - HAS BLOWN AWAY SUCH EXPENSIVE AND HUGELY PUBLICIZED DISNEY MOVIES AS "PEARL HARBOR" AND "ATLANTIS: THE LOST EMPIRE"? WHY YES, AS A MATTER OF FACT THERE IS SUCH A MOVIE.

YOU MAY NOT HAVE HEARD ABOUT IT YET, BECAUSE THERE HAS BEEN LITTLE ADVERTISING. YET THE PEOPLE WHO FLOCKED TO MOVIE HOUSES LAST WEEKEND WERE DRAWN TO BUY TICKETS - A NEAR-RECORD $41 MILLION WORTH OF TICKETS - WHEN THEY SAW THE POSTERS WAITING THERE FOR THEM. IT IS CALLED "THE FAST AND THE FURIOUS". IT ENDS IN A CAR CHASE THROUGH CITY STREETS BY TWO RACE CARS...WITH WHAT ONE CRITIC CALLS "HIGH-DECIBEL VROOMS." THERE IS PLENTY OF ACTION AND NOISE. WHY HAS IT CAPTURED AUDIENCES? I DON'T THINK PEOPLE ARE BUYING INTO WALL STREET'S HOPE FOR A RECESSION WITH FALLING LONG RATES AND HIGHER BOND PRICES. I SAY YOU WILL NEXT SEE A ROARING, NOISY NEW BOOM LEAPING FROM THE STARTING LINE, DRIVING AMERICAN BUSINESS UP "FAST AND FURIOUS". LOOK FOR MORE DETAILS HERE NEXT WEEK.

With permission of Money Forecast Letter/Adrian van Eck/Subcription Info: 1-800-219-1333 Please excuse the caps. It's the way I receive Mr. van Eck's astute observations.


Peter Asher (06/28/01; 08:25:34MT - usagold.com msg#: 57061)
Test
Test

Trail Guide (06/28/01; 07:43:10MT - usagold.com msg#: 57060)
Big Scoop!

ALL,

I had (and have) a number of things to cover today but this article in the WSJ needs attention more than anything. Please get a copy and read "Our Economy Needs a Golden Anchor" by Jack Kemp. Read the whole thing, right to the end. The subtle expressions clearly hint that someone "up
there" has read the "Euro vision" on gold and how it will impact the Euro Project! Not to mention the dollar.

MK, Randy, be sure to note the shift to a "Free Gold" anchor as expressed in:

"There is nothing mysterious about how gold would be used as a reference point or how a NEW MONEY STANDARD FOR A NEW MILLENNIUM would work."

and

""With the dollar defined in TERMS of gold and with American citizens FREE to buy and sell gold at will"

(note: he said terms,,,, as in gold's value,,,,,, as in gold's market price,,,,,, as in not fixed to gold!!)

and

""the fed would forget about raising or lowering interest rates --------- Markets would determine interest rates"

and

"There would be no need for the government to maintain a large stock of gold ---------- people would be FREE to do so on their own in the marketplace"

(note: opening the door for a transition of US gold to cover past dollar expansion)

and

"I believe Britain would soon follow to make the pound as good as gold and AVOID HAVING TO ADOPT A SINKING EURO"

(NOTE: It's almost as if we are trying to stop England from joining the EMU by adopting some of the evolving EMU qualities! Currency war in progress!)

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

Ha! Ha!
Can any Western Hard Money Advocate imagine such a system (smile)???
Taking gold out of official price fixing hands and allowing it to trade FREE next to the currency!!

Boy,,,oh,,,,Boy!
After this trial balloon the next step would be in trying to fully copy the whole project.
The only trouble is that if we try this,,,, and don't dismantle our anglo gold market's connection to "paper credits in gold",,,,,,, the Euro free market in physical would fully rob all the US government's bullion.

And most of it's private bullion. Mostly by using dollar reserves outside the USA to buy it.

The upshot would be a "bullion-less" paper dollar gold market and a surging dollar price for physical. Who in the world could have seen something like this comming?

You would almost think someone(s) was thinking about all of this (smile)

(Robert, we are almost there!)

TrailGuide


nickel62 (06/28/01; 06:14:17MT - usagold.com msg#: 57057)
Goldman get caught with it's thumb on the scales and is slapped by the Japanese authorities, Tip of the iceberg I am sure and the "severity of the fines" are laughable....



Japan bars Goldman Sachs
By Gillian Tett in Tokyo
Published: June 27 2001 18:13GMT | Last Updated: June 28 2001 10:07GMT



Japanese regulators on Wednesday slapped unexpectedly heavy penalties on Goldman Sachs, after the US bank admitted that it had misquoted prices in the online warrants market in Tokyo.

The Financial Services Agency, the main banking watchdog, said that it would bar Goldman Sachs from the covered warrants market for two weeks from July 2, and prevent it from issuing warrants for four weeks. Covered warrants carry the right to buy existing shares at a fixed price.

The finance ministry later also banned the US bank it from Japanese government bond auctions for a month from Thursday. This marks one of the heavier penalties that has been imposed on a foreign bank in Tokyo.

Separately, the FSA also banned SociÈtÈ GÈnÈrale the French bank, from equities broking for three days, from July 4, and the ministry excluded it from JGB auctions in that period. The French bank had told a customer that it would change the terms of a financial instrument to cover up losses, breaking local rules, the FSA said.

Since 1999 the FSA has also reprimanded foreign brokers such as Deutsche Bank and Lehman Brothers - and it completely closed the derivatives operations of Credit Suisse after uncovering serious irregularities in 1999.

Some foreign bankers have welcomed these penalties as a sign that the FSA is trying to clean up Japan's notoriously murky markets. However, others fear that the FSA is becoming too heavy handed, and harming Japan's credibility with foreign investors. Chris Wells, a lawyer with the US group White and Case argues that there is "growing concern" among foreign banks about the manner in which the FSA was policing the markets.

The FSA said on Wednesday it had imposed a heavy penalty because Goldman Sachs accounted for almost 80 per cent of market making in the covered warrants sector in Japan. This meant that a pricing error by Goldman Sachs could seriously distort the market, leaving the US bank with a "serious responsibility", officials said.

However, Goldman Sachs argued that the FSA punishment was deeply unfair. "This was a simple, human error. The penalty is both harsh and disproportionate," Lucas Van Praag, a Goldman spokesman said.

Goldman Sachs entered Japan's online warrants market last year, and posts about 6m prices each month. In late May it posted a price 24 times higher than the "normal" price, and left this on-screen for half an hour, concluding deals worth about Y157m with 28 clients. When the US bank discovered the error, it persuaded most of its clients to unwind the trades; however, some clients refused, citing material damage, and this triggered the FSA action.

The warrants market represents only a tiny proportion of Goldman Sachs' revenue in Japan. However, the JGB auction ban is slightly more painful, because Goldman Sachs is one of the largest foreign participants in this sector, and derives considerable revenue from fixed income business.

In the last two years the US bank has faced sporadic criticism from politicians over other financial matters, such as its handling of Japanese privatisations. Japanese regulators have never discovered evidence of wrongdoing before.




nickel62 (06/28/01; 06:12:27MT - usagold.com msg#: 57056)
ORO , brilliant and insightfull as usual....thanks
The comments you added below are magnificent and I wanted to let you know that like many of your insights they have illuminated my perceptions and greatly clarified my understand of this crazy and confusing world of finance we currently live in. Thanks.

nickel62 (06/28/01; 06:09:15MT - usagold.com msg#: 57055)
Horatio I think yiou have the correct answer to the entire situation we all have been confused by....
It appears obvious now that you point it out, but frankly this insight had not occurred to me before,in spite of the fact that I have seen some evidence that would tend to support your analysis. The various canadian gold investment bankers that I used to do business with occassionally were floating through my investment offices seven or eight years ago and happened to be compiling a list of Anglogold's true reserves. It was a thirty page printout of the actual gold in the reserves of this particular South African company broken down by economic recoverability and by geographic location within each mine. I thought it was rather strange that they seemed interested in showing it to me, but was basically clueless about the significance. Now with the advantage of hindsight I think they were warning me as several other also very much in the "know" friends tried to warn me, that making a bullish case for gold as I was at the time was futile since the massive reserves of the South African producers could be effectively mobilized by the introduction of modern dirivatives. I was too dense to understand any of this and am still paying the price but I think you have added a touchstone of insight to the mystery of what is actually driving the world gold markets currently and over the last ten years. Cheers

Netking (6/28/01; 04:21:37MT - usagold.com msg#: 57054)
and in India . . . . Banks to resume gold trading in Ahmedabad
http://www.brecorder.com/story/000022/200106/20010628/200106280046.shtml?Metals:~Gold,~Palladium~Group
". . .India's state-run Bank of India and Punjab National Bank say they plan to resume bullion trading in India's largest gold centre, Ahmedabad, after suspending dealings in March following a payments crisis. "We're in the process of beginning the bullion business afresh. It should happen in about a month . . ."

Randy (@ The Tower) (06/28/01; 03:25:57MT - usagold.com msg#: 57053)
"reality checks -R- us"
http://www.feer.com/_0107_05/p060current.html
Reasons why you should "expect the best" regarding the future effects of the liberalized gold market coming soon to a China near you.

Be skeptical at your own peril.


Netking (06/28/01; 02:05:27MT - usagold.com msg#: 57052)
"Gold mining mergers?, get used to it ! - says Franco-Nevada
http://biz.yahoo.com/rf/010627/n27368333.html
Snippits:

ON CONSOLIDATION:

"Consolidation is good for the industry. It has to happen," said Lassonde. "It's good for us. It reduces the number of names out there and makes our franchise worth a great deal more. It makes our investment in Normandy worth a whole lot more. So, all around, we believe it's a good thing."


ON HOMESTAKE

"We thought Homestake was a very attractive asset and had it remained independent it is one that we would have considered doing something with, certainly down the road,'' he said. "It was certainly on our radar screens and very high on our radar screens."


ON THE PRICE OF GOLD

Schulich and Lassonde, both widely respected in the industry for their knowledge of the markets, are bullish about the price of gold, which Lassonde said could hit $500 an ounce over the next three to five years as market supply diminishes.
------------------------------------------------------------
Friends, remember that this is Centennial Precious Metals forum and not an entity with 10,000 individual shareholder owners(ie us). It happens to be the best(easily) PM forum on the net. Let's honor & respect the parameters & decesions MK & his staff make without challenge & dispute whilst we are their guests. - Thanks & regards Murray.


Netking (06/28/01; 01:47:19MT - usagold.com msg#: 57051)
PRC Gold Exchange - Approved by council - Operational in 2 months
http://sg.biz.yahoo.com/010628/15/16mnh.html
Snippit:
". . . The State Council made its decision soon after the Chinese Lunar New Year, which was in late January, but didn't publicize its decision then, said Cui Jinlin, a researcher at the Gold Economic Development Research Center, which is under the State Economic Trade Commission.

According to Cui, the gold exchange could be set up in Shanghai within the next two months. . . ."

Do not underestimate the effect this will have short & long term upon the gold market.


Just waking up (06/28/01; 01:38:53MT - usagold.com msg#: 57050)
Journeyman, Journeyman, wherefore art thou Journeyman?
....a rose by any other name would smell as sweet.
MK - Journeyman has a long history of high moral character and integrity here on USAGOLD, please consider that. His return would be loudly cheered ...and much appreciated.

Thank you,

Bob


ORO (06/28/01; 00:42:42MT - usagold.com msg#: 57049)
Stranger - Marty Mayer and the Historical Fed - repost
http://www.usagold.com/cpmforum/archives/2720016/default.html
(see yesterday msg#: 57046)

Horatio (06/28/01; 00:21:45MT - usagold.com msg#: 57048)
South Africas War On Gold
IMHO England is Laundering gold for South African companies.This is the gold borrowed from central banks and sold for cash.Then the cash can be invested in safe countries away from the black communist government.
This whole gold decline was caused by SA companies desperate to get thier wealth out of the ground before they were thrown out on thier ears by the Mandela people. .Its impossible to mine a mine that has 20 years of reserves in the ground'so you do the next best thing you borrow above ground gold and sell it,giving the bank the title or mortgage on the gold still in the ground and yet to be mined in the future.That way if the mine is nationalized or restricted in any way the NEW mine operators must give the banks thier gold back.The BANKS can inforce thier contracts even in a communist country.
I stated this opinion months ago here,and I have seen nothing yet to disprove my theory.
Why the sudden interest in SA by this BUSH administration and Colin Powell?The US and England are in this CABAL together it goes to the very top of gouvernment.
They intend to use US military if necessary to keep this thing going until all the gold in the GROUND is sold.
Additional evidence of this was the SA gouvernments recent denial of merger of a SA gold company with Franco-Nevada of Toronto 'stateing there was no benefit to SA.Of coarse they would deny moving headquarters of SA gold co to Canada where the money could be siphoned off.
Now another coup against SA companies is Barrick and Homestake becoming the investment of choice for mutual funds
instead of SA.The center for gold is moving from SA to Canada for political safety.Canada will be the gold center of the world.Control will remain under British and US flags.
This was necessary when the US could no longer support SA white gouvernment because of Aparthied .The large black population in the US made it impossible to save the gold mines'so this method of forward selling was used to get the wealth out of the ground.This CABAL was not intended to hurt US gold producers, this was an unintended consequence but necessary to rescue SA gold mine owners.
Barrick and Homestake have decided the CABAL has had enough time ,this has gone far enough and too much hurt on other mine owners has happened.The cost of saving thier asses in SA is getting to be too much.Time for it to end.
just my humble opinion and thanks to Homestake for the courage to take action.


ORO (06/28/01; 00:02:28MT - usagold.com msg#: 57047)
Turnaround - Pol Pot to replace Duisenberg
Perhaps Pol Pot would be the appropriate replacement, like his friends left of reason; Greens and commies morphed into social democrats.



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