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ARCHIVED DISCUSSION FROM 10/30/2001 All times are U.S. Mountain Time (Yesterday's Discussion.) Black Blade (10/30/01; 22:37:37MT - usagold.com msg#: 64406) Economic Data This Week http://www.briefing.com/dlj/ecdata/chi.htm There have been a number of dismal economic reports so far this week. Today consumer confidence data plummeted to lows not seen since February 1994. Tomorrow is third quarter GDP data. If the BEA does not filter the data with statistical "Pixie Dust" the doubting Thomases will whimper, wail, and snivel about the US recession (as if we here did not already know). Chicago PMI should show that we are still wallowing in a deepening recession and I would not be surprised if the situation deteriorates rather rapidly (see link). On Thursday we see the Weekly Jobless Claims (very grim indeed), NAPM index (essentially just a poll with dubious validity), and Construction Spending (who knows - lower spending due to economic contraction or more spending as cash seeks out hard assets?). On Friday the Jobs Report (should be very ugly), and factory orders. Then there is the threat of more terrorist acts this week according to AG John Ashcroft. It also looks as if the US effort in Afghanistan has bogged down. So far this week the US stock market indices have been rocked. This week could prove to be "Interesting." USAGOLD (10/30/01; 22:14:32MT - usagold.com msg#: 64405) Introducing Holger Jensen's "Inside Foreign Affairs" http://www.usagold.com/gildedopinion/Jensen/index.html Holger Jensen is a foreign affairs expert and syndicated columnist for the Rocky Mountain News and the Scripps Howard newspapers. As a foreign correspondent for Time magazine over many years, fifty-four of his articles ended up cover stories for that notable publication. I have read his columns for a number of years and consider him to be one of the top foreign affairs experts in the country. But rather than going by anything I might have to say about his observations and insights, I invite you to read his columns and see for yourself -- starting with our first entry (linked above) titled "Cause for Optimism in Afghan Campaign." I think you'll be hooked.Mr. Jensen's columns will appear at the Gilded Opinion on a regular basis. A couple examples of the insights to which I refer:"There have been some dramatic foreign policy realignments at home and abroad, and one can safely say that bin Laden hasachieved none of his purported goals. In the words of British Prime Minister Tony Blair, "Out of the shadow of this evil shouldemerge lasting good.""Bin Laden's greatest mistake, perhaps, was in creating an alliance that no collection of religious zealots or Muslim states can hope to defeat. ..."He may or may not yet prove able to foment a Muslim uprising of great breadth but, by inadvertence, he seems to have made a far more potent alliance nearly inevitable. Only a strategic blunder even greater than his own will prevent the United States, China and Russia from joining now in common cause to protect the order and security of which they uniquely are guarantors."Since this is a departure from our normal fare, please let me know what you think of Holger Jensen and his column. I would like to thank our Gilded Opinion editor for lining up his columns (at my request). I would also like to thank Randy Strauss, our sitemaster, for doing the set-up and design work. Black Blade (10/30/01; 22:09:57MT - usagold.com msg#: 64404) U.S. credit card losses may hit record-S&P http://biz.yahoo.com/rf/011030/n30312903_2.html Snippit:NEW YORK, Oct 30 (Reuters) - Americans could default on their credit card loans in record numbers, as more people lose their jobs and have a tough time paying their credit card bills, bond rating service Standard & Poor's said on Tuesday. ``We're going to see them go straight up,'' S&P chief economist David Wyss said of the growing volume of bad loans that credit card issuers could face in the coming months.``Even before Sept. 11, an increasing number of consumers were defaulting on their credit card debts,'' Wyss said. ``When people lose their jobs, they can't pay their bills. This is even more disconcerting since American consumers are very highly leveraged, with debt at a record share of disposable income.'' Americans are saddled with debt levels not seen in about 15 years.Black Blade: This is just the tip of the iceberg. Unemployment is poised to move much higher as corporate earnings fall, corporate debt rises and equities that are extremely overvalued eventually revert to "the mean." The current fundamentals simply do not support any rational basis for such high stock valuations. Certainly not based on growth - we are and have been in a recession that is poised to create economic turmoil that will probably rival the Great Depression. This economy is a house of cards that has no foundation. Get out of debt if at all possible, anchor your portfolio with gold and silver insurance, have enough cash for several months expenses, and store basic necessities such as food, water and dry goods. If anything you'll sleep better. Besides, you never know who's name is on that "pink slip." "Interesting Times" goldquest (10/30/01; 22:06:42MT - usagold.com msg#: 64403) Portugal Gold http://www.jewishsf.com/bk970801/ibank.htm If they lost their gold, it was probably gold that didn't belong to them anyway. Netking (10/30/01; 21:41:37MT - usagold.com msg#: 64402) Gold, Banks and Tsunami's A good afternoon to you all. Some snippets from the latest on Au's golden prospects by Mr Clif Droke;". . . There is talk of a mass banking withdrawal shortly after the New Year in order to avoid paying taxes in the current year. We warned of this earlier this year. A massive draw down on bank funds in the early part of 2002 fits our forecast perfectly since at least two major stock market cycles are due to peak at that time, leading to a sliding-board effect in the financial markets in early 2002. Also, several leading bank stocks have the look of equities on the brink of disaster. From the looks of things, January 2002 may be the "Y2K" crisis delayed by two years.How very interesting that the same people who in 1999 would not think of buying gold and silver are now beginning to run the coin shops in 2001. Again, this is a fundamental confirmation of our ongoing technical forecast of a runaway gold bull market that will soon begin . . . .The long-term cycles are indeed pointed downward for the next 3-4 years, and there is nothing the FED can do to change that. One apt analogy is that of a person standing on the ocean shore as a 100-foot tsunami approaches-the best that can be done under such a circumstance is prepare for the inevitable crash. The worst response would be to try and stop the killer wave, which would be nothing short of impossible. Along this line, SineScope Bud Kress wrote in a recent letter, "One must remember that natural forces cannot be negated-the best man can do is temporarily defer or delay the inevitable."------------------------------------------------------------Gold and Silver in the hand . . . Insurance for LIFE! - Netking uponroof (10/30/01; 21:36:47MT - usagold.com msg#: 64401) Anduril I prefer the latin version:entia non sunt multiplicanda praeter necessitatem: "entities are not to be multiplied beyond necessity". In the economy of the moment I'll add that perhaps Mr Ockham had a bad experience with derivatives? auspec (10/30/01; 21:17:45MT - usagold.com msg#: 64400) uponroof/Anduril Thank you uor!Anduril--- You may be more into 'nobility' than I am. uponroof (10/30/01; 21:07:06MT - usagold.com msg#: 64399) auspec ockham's razor (ockam's, occam's)aka: the principle of simplicity, the principle of economyentia non sunt multiplicanda praeter necessitatem:"entities are not to be multiplied beyond necessity"or "the number of entities used to explain phenomena should not be increased unnecessarily"This principle implies:1. of two or more possible explanations for phenomena choose the one that (a)explains what is to be explained with the fewest assumptions and explanatory principles; and (b) explains all, or most, of the facts that need explaining as satisfactorily as any other theory2. the simplest explanation is the one most likely to be true.*******************Anduril- We Americans have an acronym for this.... 'KISS' (Keep It Simple Stupid). How about stating your message in simple terms my friend. auspec (10/30/01; 21:05:04MT - usagold.com msg#: 64398) Anduril The beard works for me until I can stand to be apart from my dismayed wife no more. Problem not that simple. Andúril (10/30/01; 21:00:11MT - usagold.com msg#: 64397) Some problems are more easily solved than others Grow a beard. auspec (10/30/01; 20:49:22MT - usagold.com msg#: 64396) Anduril My Gillette Sensor doesn't even leave me 'whole'.Ockham? auspec (10/30/01; 20:45:05MT - usagold.com msg#: 64395) USAGOLD Sad Commentary Yes, MK, this entire analysis is 'spot on' in regards to 3rd world countries/CB's. You are certainly correct to believe that the 3rd world banks 'have been bled dry', that is hardly disputable, imho. Personally, I think the 1st world banks are also at least 'compromised', if not impaired by loss of their financial 'reality', also. I would certainly like to know what the relationship/links are BETWEEN the various CB's. For example; what common ownership does China's CB have with UK CB? Who owns Ecuador's CB? We know who owns our 'independent' Fed. Very little of this is even 'uncommon' knowledge. Who owns the CB of Sri Lanka {for the moment}, and who will own it in the long run?How can a 3rd world CB have less world financial acumen than what is available on this fine site?????? That in itself is mind boggling. We rape and pillage with dollar hegemony as well as loot the crown jewels, not a bad act for starters. From someone who owns property in a 3rd world country, and greatly enjoys the gracious people there, this is unconscionable. "Most of the perpetrators who gave up the national gold don't care, though. I'll let you imagine {with me} the reason why." The Quid Pro Quo comes in many forms, no? They probably didn't give up ALL the national gold."Dollarized", "Euroized"........?? NWOized?Yes, a most distasteful commentary for our current feudal system. BUT, this IS wonderful news for gold advocates, truly big picture! The 3rd world needs many more Hugo{?}..Salinas to stop the pillaging.Thank you MK! Old Yeller (10/30/01; 20:41:29MT - usagold.com msg#: 64394) Scary talk on the telecom debacle http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&middle=ad_frame2_topfin&s=AO940LRXbVGVsZWNv From the former CEO of Global Crossing.Is it really going to make the S&L crisis look tame?It would appear so. Many formerly well-paid bones for Black Blade's pile. USAGOLD (10/30/01; 20:32:56MT - usagold.com msg#: 64393) Black Blade. . . . If I remember correctly Portugal lent gold to Drexel-Burnham and Drexel Burnham bellied-up the next day. No one know what happened to the gold -- and believe it: Portugal experienced a reduction in its reserves. It used to be that in these swap schemes the IMF forced the central banks to reduce their gold holdings on the books so everyone knew what was going on. What's interesting here is that the IMF apparently changed its bookeeping procedures so that the gold could exist in two places at once. What the central banks have to understand is what they have on the books is "golden ghost" -- Existence One. The real thing is sitting in the portfolio holdings of USAGOLD clientele (smile) -- Existence Two. Which of the two is the more perfected form of ownerhship?Thanks again for your stalwart efforts here, Black Blade. Andúril (10/30/01; 20:32:00MT - usagold.com msg#: 64392) Ask not "who" but "what" The answer becomes the greater Good. Done in respectful service at the will of a noble one, of that you may be sure.Live that Ockham's razor may leave you whole. Black Blade (10/30/01; 20:22:47MT - usagold.com msg#: 64391) MK (anyone) - Portuguese Gold I don't remember all the gory details, but didn't Portugal go through this once before? If I recall correctly, the Portuguese Central Bank loaned out the country's gold a few years ago and the counter-party defaulted and the bank effectively lost the gold. Some people never learn. Anyone remember this? Cheers!- Black Blade RS (10/30/01; 20:19:14MT - usagold.com msg#: 64390) Recession ??? According to a gentleman from A.G. Edwards on CNN today, the U.S. economy "may already be in recession" !!!I had to wonder if this guy has ever heard the old saying-"When your neighbor is laid off it's a recession, but when the pink-slip shows up in YOUR in-box, it's a depression". auspec (10/30/01; 20:02:18MT - usagold.com msg#: 64389) Anduril And who do you work for? Andúril (10/30/01; 19:54:41MT - usagold.com msg#: 64388) "Crashmaker" and "Creatures from JI" Much wind and it will not fly a kite.Same could be said of the IMF and swap speculation being irresponsibly tossed about. If not the blind being led by the blind, this is close. The lazy are letting themselves be pulled around by their ears at the hands others who are themselves mystified in their own fanciful fog of delusion.You may find that the walking becomes easier with an application of personal effort commensurate with the task at hand. USAGOLD (10/30/01; 19:51:35MT - usagold.com msg#: 64387) auspec. . . . Bill Muphy's latest revelations in conjunction with Andrew Hepburn are some of the most important yet. What they have uncovered is the mechanism by which the gold is brought to market to hold the price down. I still doubt that much of this is coming from first world central banks, but I do believe the third world banks have been bled dry. What is incredible about these revelations is that the Portugese and Finn central banks actually believe that the paper they have on file is equal to the metal the bullion banks took on deposit and lent to the mining companies and hedge funds. The first world banks, if they have swapped out gold, will likely get it back to avoid the ultimate scandal and bunch of boys in the club facing charges in the swapping countries. The third world, as always, is expendable in this. What are they going to do? Deploy their navies to enforce the contracts? And the IMF repeatedly goes before the third world posturing about its commitment to eradicate poverty in the third world. Let the music play! What happens when they find out that piece of paper isn't worth the paper it's printed on? I'll lay you a bet they could care less, since they have no one to answer to. One thing is certain: Once the gold is let loose by these central banks, it will be loaned again and again in a fractional reserve system wherein the claims on a limited gold pool are constantly ratcheted up by aggressive lenders who make a constantly growing list of depositors all believe they own they same gold. Ultimately, there will be a run on the gold bank that will make the bank runs in the 1930s look like fun and games. That's what the major central banks tried to curtail through the Washington Agreement. ( I believe ultimately they will be successful.) They wanted to pinch the fractional reserve lending game at the source, because they saw a major problem coming. And that's why the lead-dog Rothschild bank came out about a year ago saying that the third world should join the first in bringing the game to an end. If the third worlders haven't figured it out yet, they will, but in my estimation, it's already too late. They'll never see their gold again -- just a promise to pay. When the dollar goes, their gold reserve goes. . . .and that's what's at stake here. Most of the perpetrators who gave up the national gold don't care, though. I'll let you imagine (with me) the reason why. That's the way the world works, my friends. Politics. Business. But fear not, the market will have its revenge -- revenge which will beneift all that hold the hard metal and punish those who believe that any type of paper promise is akin to the real thing, including the various central bankers who fell for (or benefited from) this scheme in the first place. The worst part is the citizenries who commited this gold to their central bank for safe keeping and took paper script in return will never see their money again -- not even in diluted form. And history condemns the Pizarro for stealing a few tonnes of gold from the Inca. The third world gold is gone -- along with the third world financial freedom -- though most will never understand what hit them. They'll be looking at being dollarized, euroized. . . . .or simply throwing in the towel. Argentina becomes a case in point. . . . . .It all comes back to haunt you. Sooner or later, the well runs dry -- and waaaddaya gonna do?Congratulations Bill and Andrew. . . .These tacit admissions by Portugal and Finland come closer to a smoking gun than anything we've seen. What is incredible is that these posturing G-7 policiticians who constantly harp about the injustices imposed on the third world, ignore that swapped out gold for paper promises is an abrogation of the social contract that allowed the gold to flow to those central banks in the first place. All for what? To keep a bunch of bullion banks from accepting their gold lending losses? To prop up the dollar?P.S. Let me remind our readers that a swap involves a spot sale of gold (in this case by the central bank) executed simultaneously with a forward transaction to buy the same amount of gold back in the forward market at a later date. (It helps to know how these deals are actually structured -- simple but effective.) The bullion bank usually gaurantees the repayment. That's why Portugal and Finland make such a major point of the gold "still being on the books." All works nicely as long as (a) international gold demand can be curtailed, and (b) the price can be held in check. It all comes apart at the seams if either one or the other, or both, throws a wrench in the scheme. (And by the way points to why gold confiscation is a potentiality in every nation in the world.)What the third world banks will have to come to grips with is that they've sold their gold in reality, and up until the final coup de grace --when the market has its way -- they will be told that everything's under control. As we have preached here for years, own the actual metal and watch the world go by -- third, first or in between. auspec (10/30/01; 19:43:44MT - usagold.com msg#: 64386) Galearis Thank you, will investigate. auspec (10/30/01; 19:42:18MT - usagold.com msg#: 64385) Quid Pro Quo From Jim at Cafe Chat: New brothers in arms - and cash and intelligence How the US and Britain reward countries offering support in war against Taliban http://www.guardian.co.uk/waronterror/story/0,1361,577569,00.html Jamie Wilson, Suzanne Goldenberg, Ewen MacAskill and Jonathan Steele Saturday October 20, 2001 The Guardian The US is expected to release shipments of advanced rocket artillery to Egypt and supply helicopter gunship spares to China - where both President George Bush and secretary of state Colin Powell are currently in negotiations - in the latest of a long list of arms, intelligence and cash deals struck to obtain the support of surrounding countries for its war against terrorism and the Taliban. Britain's contribution is expected to include the granting of Russian demands that a hard line be taken against Chechen exiles in London, and the offer to Malaysia of sophisticated intelligence surveillance kit to use against internal dissent. The feudal sultanate of Oman is being promised more than $1bn worth of US arms. The nuclear-armed Pakistan military regime is expecting not only large sums of cash and removal of sanctions, but also American diplomatic support over its long-running feud with India over Kashmir. Turkey is hoping to get a big increase in loans to escape its economic crisis. And Iran, the former "terrorist state" has seen the US government this week move to block an unwelcome lawsuit against them. James Lindsay, a former director of global issues on the US national security council under President Clinton, says the acquisition by the US of intelligence material from neighbouring states is important, alongside overflying rights and military facilities. "Intelligence sharing is going on. The US wants to get intelligence from these governments, but the way it is trading intelligence is unknown." We list below some of the deals struck in the last month, often to regimes whose democratic and human rights records had made them virtual international pariahs before September 11. Iran Initially condemned the bombing of Afghanistan: but its agreement to rescue American personnel in distress in its territory suggests relations might not be too frosty. Iran is also believed to be providing the US with intelligence and has expelled Imad Mughniyeh, a Lebanese on the FBI's "most wanted" list. The return? Tehran's views on the shape of a future Afghanistan are being given greater weight by the US. There is already a channel open for quasi-military western co-operation: Iran receives night vision goggles and four-wheel drive vehicles from Britain "to fight the drugs trade". The EU council of foreign ministers pledged consultations with a view to negotiating a trade agreement. On the same day that it was revealed that Iran agreed to help downed pilots, the US administration asked a federal judge to throw out a $10bn lawsuit brought against Iran by Americans taken hostage in 1979. Palestinians Yasser Arafat has backed Mr Bush. Now he hears the US president speak positively about the possibility of a Palestinian state. A proposal by a US senator, Diane Feinstein, to ban funding to the Palestinian Authority because of the suicide bombings in Israel was withdrawn after a request from Colin Powell. Syria Last week this former "terrorist state" was made a non-permanent member of the UN security council. This elevation passed without America using its veto. Egypt Israeli intelligence sources say that Tel Aviv is particularly worried about the likely sale of 26 rocket artillery systems to Egypt. Israeli lobbyists previously managed to block the sale in the US Congress before September 11. Oman Thousands of western troops are deployed there. On the day the defence secretary Donald Rumsfeld arrived for talks, the US announced the sale of 12 late-model F-16C fighters; plus night-attack navigation and laser-bomb targeting devices; advanced air-to-air missiles; kits to make laser-guided weapons out of bombs; Harpoon anti-ship missiles and radar equipment. Pakistan US sources see four elements to the deal with Pakistan: complete lifting of sanctions; increased aid and restructuring of its loans; a promise that Pakistan will have a say in the future shape of the next Afghan government and, finally, Kashmir. The Pakistani leader, General Pervez Musharraf, is understood to have demanded formal recognition of the existing Kashmir boundary with India. The US Senate foreign relations committee approved a bill enabling Pakistan to receive emergency military assistance to combat terrorism - a useful tool should Gen Musharraf find himself facing a pro-Taliban insurgency. The international development secretary Clare Short offered another £15m in British aid and spoke of cancelling interest payments. The EU council of foreign ministers is to boost aid. The European commission has rushed through trade concessions worth about $1.35bn. Russia Chechnya has been a constant source of awkward questions from foreign governments. The west now accepts that Russia is confronting "terrorism" with regard to bombings in Moscow. President Vladimir Putin has already won a change of wording from the White House, which referred the participation of al-Qaida terrorists in Chechnya. Russia will also be expecting a clampdown on the alleged flow of young UK Muslims to fight in Chechnya. It also received a promise that the west will soften its attitude over Russia's behaviour towards unstable Muslim countries on its southern flank: where there is fighting, especially over water rights. China US government sources say the Bush administration wants to promote exchanges of anti-terrorist intelligence. Sanctions bar the sale of military-related equipment to Chinese security forces: they were imposed after the 1989 crackdown on Tiananmen Square demonstrators. But Mr Bush is reported to be considering clearing the way for the sale of spare parts for Black Hawk helicopter gunships the US sold to China during the 1980s. Uzbekistan US forces are being given the use of bases in the former Soviet republic. When Mr Rumsfeld visited there he carried a letter from Mr Bush underscoring Washington's interests in a new relationship. The authoritarian president, Islam Karimov, is known to be keen to run an oil pipeline through Afghanistan to a port in Pakistan. With a friendly US-controlled government in Kabul the pipeline could finally become a reality. US oil companies would no doubt be willing to get involved. EU foreign ministers have also agreed to boost cooperation with Uzbekistan. Turkey Nato's sole Muslim member and a key US ally - airbases in Turkey have been a key staging post for the attacks on Afghanistan - has been offered IMF and World Bank loans totalling $1.7bn and is seeking a further $9bn to help shore up its crumbling export and tourism industries in the wake of the attacks. Malaysia The US has been seeking assistance to provide intelligence and arrest Bin Laden terrorist suspects from lists provided by the FBI. British intelligence sources say interception and surveillance equipment to enable regimes to spy on their own people is being offered as a sweetener to states such as Malaysia offering information about Bin Laden and al-Qaida. Saudi Arabia Saudi Arabia is under fierce criticism in Washington for its refusal to allow the unrestricted use of US airbases there and apparent refusal to share intelligence and act against al-Qaida supporters. Members of the US intelligence community have been briefing journalists including the New Yorker magazine about the contents of some of their unsavoury national security agency phone taps involving members of the Saudi royal family and prostitutes. The threat to the Saudi elite is clear: help us or else. ISRAEL The shaft. Galearis (10/30/01; 19:39:22MT - usagold.com msg#: 64384) @auspec and Canuck sorry to "bust "in on a delightful conversation but... I wonder what TVX's hedge book looks like right now in silver. The last time I looked, it was in a LOT of trouble should silver go boom... I am looking to unload this one at my earliest and least dollar loss point.Can you shed any light on this... Sorry to post and run but duty calls...Regards,G. auspec (10/30/01; 19:28:29MT - usagold.com msg#: 64383) Canuck http://www.crashmaker.com Let's swap books when you're done. Crashmaker for Creature. I need about 4 more weeks to finish Crashmaker, which is a fabulous read. auspec (10/30/01; 19:24:26MT - usagold.com msg#: 64382) Canuck While we're still not talking about specific gold stocks, which could cost us $15,000 per USAGOLD 'advertising' per our gracious host; I like TVX! I don't own it {yet} so am not advertising MK {smile}. If you notice from uponroof's post that TVX has been around a while {actually much longer than I would have ever guessed}, and this lends a degree of comfort to owning this stock. It certainly could be considered in the 'moonshot' category according to past history, yet it is not what I personally would consider a 'moonshot'. It's actually too solid for that, as it probably now has little downside, and will only take a good move from the metals to reach orbit.My 'moonshots' are a bit more 'on the edge' than TVX, as TVX is proven, well capitalized, and not likely to go away any time soon. Mine are undercapitalized, selling at near bankruptcy levels {for good reason}, and sitting on mineral dynamite. They would certainly prosper from a POG or POS move, but it is NOT essential. Rank speculation, nothing less. I love the Canadian juniors and own a stable full of them, also have a good amount of CPM shipped precious and most grateful for it. That mistake is in the past!TVX would more likely be considered mid-tier in the gold stock classification, not quite a major, but certainly not an unknown exploration company. Canada is the place to be, Sire Canuck, hockey as well as mining, plus so much more.Bottom line on TVX: I still hope to own some in the not too distant future. I really don't know a lot about their management except they have SURVIVED these last 5 years {which says a lot}, and my sources that I have good respect for like the co. All must really calculate their own risk level comfort.We should take this conversation off-site if you want to further it, and you are welcome to ask CPM for my e-mail, permission granted. Canuck (10/30/01; 18:59:19MT - usagold.com msg#: 64381) Creature from Jekyll Island I'm about a 10th way through the book; some at the top are really slimmy. It's unbelievable how the quest for 'wealth' and propserity has caused the cancerous crookedness in the elite financial officaldom. Black Blade (10/30/01; 18:57:44MT - usagold.com msg#: 64380) "Bones" Are Piling Up Everywhere! Oh my, Adobe clips 150 Digital "bones", MTV bumps off 450 Musical "Bones", CIBC dumps 2,000 Invested "Bones", Sun (Microsystems) sets on 3,900 "Bones", Acterna breaks 500 "Bones", Fidelity fires 760 bankers "Bones", Voight Aircraft ground 1,200 "Bones", R.G. Barry has no sole (they make slippers) - lay off 70 "Bones", Search company Heidrick & Struggles can't find room for 335 nonessential "Bones", Openwave disconnects 300 "Bones", etc. The list is almost endless. Look for a dismal unemployment number this week.- Black Blade auspec (10/30/01; 18:57:29MT - usagold.com msg#: 64379) For Those Hot on the JPM Trail More from tonight's Midas:"JP Morgan Chase has a BUY rating on Enron. I wonder why? Enron is a partner with the very humble Goldman Sachs in their electronic gold exchange venture.""Its {Enron's} ties to the Bush administration ensured that its views would be heard in Washington." ENDComment: When I get brave enough I am going to ask for resources pertinent to research into the Bush/Prescott Family history, having voted for 1 and 2. Looked like GWB threw a knuckleball on the first pitch tonight, not bad from that angle anyway. What is he throwing the American people? Does he even know himself? Canuck (10/30/01; 18:55:07MT - usagold.com msg#: 64378) @ auspec Nice post re: IMF. Canuck (10/30/01; 18:53:49MT - usagold.com msg#: 64377) @ auspec, uponroof I know very little about TVX.I have myself postioned correctly (IMHO), about 30% of my 'reserves' are in gold. Of this portion approximately 2/3rds is physical and 20% is major (or intermediate) unhedged producers. I have about 13% left to blow. I am looking for a 'moonshot'. If I blow the cash I'm not worried; it's not really all that much. I've seached through through the juniors and noticed TVX, hey from 65 cents CDN to $95.00 sounds good to me. Thoughts? Black Blade (10/30/01; 18:37:19MT - usagold.com msg#: 64376) Forbes Body Count http://www.forbes.com/2001/01/30/layoffs.html Looking rather ugly as the "Bones" keep piling up.BTW, I just saw that fat cow - Madeleine Albright trying to defend the Clinton administration's lackadaisical approach to Osama Bin Laden. Then she says that we should not pursue domestic oil exploration and production. Hmmm… Black Blade (10/30/01; 18:32:33MT - usagold.com msg#: 64375) Here today, gone tomorrow http://cbs.marketwatch.com/news/story.asp?guid=%7B24160ADC%2D0FCC%2D4193%2DA33C%2D3FB789392A4B%7D&siteid=mktw Snippit:Commentary: Budget surplus was nice while it lasted.Black Blade: Only an idiot would believe that there ever was a budget surplus. There never was one. Funds were stolen from Social Security and Medicare and moved to the General Accounting fund. Those funds were then replaced with Treasury paper specially printed to replace the stolen funds. This Treasury paper has to be serviced and therefore a cost is incurred to the American taxpayer. Like magic - poof! A surplus. Like I said, only an idiot could possibly believe that there ever was a budget surplus. Netking (10/30/01; 18:20:32MT - usagold.com msg#: 64374) The Bigger They Are, The Harder They Fall http://www.321gold.com/editorials/peterson/peterson103001.html An interesting read, snippet: "If the Dow Jones Industrials were to fall back to 5000, the implied gold price would be roughly $7,575"(and Ag to $118/Oz by implication if a 64 POG:POS ratio maintained) auspec (10/30/01; 17:57:56MT - usagold.com msg#: 64373) Old Yeller www.thoseAholeswillpaysoon.com Is the 'undertoad' R. Rubin? auspec (10/30/01; 17:55:58MT - usagold.com msg#: 64372) From Tonight's Midas: The IMF has been caught. The central banks are not recording their gold swaps as part of their reserve assets on a whim. The IMF had a meeting with all of the member central banks in Santiago, Chile in October 1999 and told them exactly what to do. And, that is what they are doing!This is further proof that the IMF has instructed its member banks to conceal the truth about the gold on its books. It also confirms that they lied to all of you that asked them the very same question that Andrew Hepburn did.What it means is that the IMF banks are counting swapped gold that they no longer have possession of as a reserve asset. We now know for a fact that is the case with the Philippine, Finnish and Portuguese central banks. It must be the same for all the other IMF member central banks too. This means that the central banks do not have anywhere near the gold that they say they have. It strongly suggests that the Frank Veneroso gold loan/swap number of 10,500 to 16,500 tonnes are more likely the right numbers. These numbers are two to three times the official gold loan numbers acknowledged by the BIS and GFMS.That means that the central banks are going to run out of gold faster than anyone thinks and that The Gold Cartel is going to run out of physical gold to continue their fraud. Maybe some already have. For example, the GATA camp has heard rumors that the Bundesbank has lent out all its gold. The Bundesbank says that is not true and that it still has all its gold as a reserve asset, except for a small amount that has been lent. Yet, if the gold is swapped, the gold is, for all practical purposes , gone - even while the Germans are counting it a reserve on their books.What a scandal we could have brewing here. The German public could go berserk if the German gold is no longer theirs. No one is more concerned about inflation issues than the Germans. If their gold is gone, what do they have to back up their paper?This is the kind of discovery that should have the gold producers jumping up and down for joy. They ought to be all over the IMF, for when the investment world realizes that the central banks of the world may have as much as 10,500 less tonnes of gold that is presently acknowledged, it could set off a gold buying panic. ENDComment: Wish I had that guy's energy! I would hate to think where this gold market would be w/o GATA's brain trust and persistence. Exposing elitist lies is victory in its own right.Go SNAKES! Old Yeller (10/30/01; 15:47:32MT - usagold.com msg#: 64371) First Andy Smith http://www.elliottwave.com/features/marketreport/default.htm Now another group of old grizzlies change their outlook.The surf's coming up,prepare thy golden boards.Keep an eye out for the undertoad,though. Old Yeller (10/30/01; 15:03:56MT - usagold.com msg#: 64370) Randy: re contest on ECB reserves Another suggestion would be a chart of the divergence of these two figures.Something to present in black and white the subtle changes in the ECB's reserve holdings vis-a-vis the dollar supporting,complicent(if I may be so bold) central banks of the ROW. site steward (10/30/01; 13:18:06MT - usagold.com msg#: 64369) Fading the paper I've been given today's release of the Eurosystem's consolidated financial statement for the week just ended (Oct 26th).The prevailing trend regarding reserve assets continues. Very small adjustments continue to be seen among the vast holdings of gold assets while paper assets are being diminished.Transactions reduced the size of the Eurosystem's net position in foreign currency by a value of EUR 600 million (similar to last week), ending the week at EUR 257.5 billion.Meanwhile, over the course of the week the gold and gold receivable account of the Eurosystem declined by only 1 million euros in value, corresponding to "a sale of gold coins" by one of the euroland national central banks. (My initial hunch is that this would be something in conjuction with Philharmoniker program of the Münze ... sterreich.) Whatever the actual case may be, it was not explicitly indicated (as is usual) to have been an allocation consistent with the Central Bank Gold Agreement of 26 September 1999. Make of that what you will.At the end of the day, this EUR 1 million figure is only one-tenth of a tonne while the Eurosystem holds gold assets of 12,521.5 tonnes, currently valued at EUR 128.234 billion.Maybe MK should host a contest to predict the day at which the Eurosystem gold and foreign currency assets will be present in equal values as they move past each other on the course to their future destinations?R. Netking (10/30/01; 11:48:02MT - usagold.com msg#: 64368) A mountain of cash . . . http://www.nationalpost.com/financialpost/investing/story.html?f=/stories/20011030/760610.html Snippet:". . . Wall Street's bullish strategists keep telling investors there's a mountain of cash on the sidelines waiting to be poured back into the stock market . . . "This is cash out there for sure, but as the "waves" keep hitting the cash will start heading more our (PM's) way . . . look for the trickle to become a river & then a flood over the 1-12 months.- Netking Centennial Precious Metals, Inc. / USAGOLD (10/30/01; 11:44:31MT - usagold.com msg#: 64367) 'Tis the Season...
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