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ARCHIVED DISCUSSION FROM 5/31/2003
All times are U.S. Mountain Time

(Yesterday's Discussion.)

timbervision (05/31/03; 22:42:30MT - usagold.com msg#: 103895)
Liberty Head
http://www.skolnicksreport.com/greenspan1.html
While you are on the topic of "the limit of tyrants" Skolnick presents a story of oppression that we don't even know we are enduring, because the crime is so concealed.

"... secret Federal Reserve wire transfer records show how the Chairman of America's private central bank has apparently bribed and aided in corrupt deeds George Herbert Walker Bush and his family....derived a horrific benefit in a major gold swindle.

"Some of the records purport to have the wire transfer signature of A. Greenspan whose term as Commissar of the Federal Reserve was renewed in the new century. Because he is like a corrupt Soviet dictator, answerable to no one, we coined the term, "Alan Redspan"."
_____


Liberty Head (05/31/03; 22:32:52MT - usagold.com msg#: 103894)
Golden Words of Wisdom

"Find out just what people will submit to, and you have found out the exact amount of injustice and wrong which will be imposed upon them; ... The limits of tyrants are prescribed by the endurance of those whom they oppress."

-- Frederick Douglass
------

If one could chart the limits of our endurance for injustice and oppression over time, I beleive it would be inverse to the POG.

If so, than the party is over. The tyrants will leave after we flush the fiat filled punchbowl they drink from.

Cheers




cyberbat (05/31/03; 21:57:54MT - usagold.com msg#: 103893)
Thank you
Thanks, Ray and Steady for the info.
Cyberbat


steady (05/31/03; 21:41:39MT - usagold.com msg#: 103891)
e dinar
http://www.e-dinar.com/en/
link to the electronic dinar or the e dinar .

Aristotle (05/31/03; 21:38:59MT - usagold.com msg#: 103890)
Dollar Bill (103877)
I hear you.

Let me ramble for a minute along those lines of thought.

No one should want to eliminate our ability and desire to grant credit. (Fortunately we have a *money system* geared to satisfy those needs.)

At the same time, we must all strive to eliminate any residual confusion between ownership of tangible property (Wealth) versus accounts of credit or other insturments of financially structured promises for the same thing.

I'm trying to stimulate some parallel thinking about Gold Metal and Gold credit/derivatives with this exercise.

A bird in the hand draws its real value from a fundamentally different source than the two birds in the bush. Everyone should think about that for just a bit.

It would be unfortunate to let ourselves think that each single bird, regardless of location (in hand or in bush,) could trade against each other at par (one-to-one) value. Wealth birds and credit birds may indeed sing similar songs, but it's only the wealth bird that is truly the food on our table.

Our money system is built on our pledges to each other of the trillions of birds in a forest of trees and bushes. Lots of folks might be smiling along with the birdsong sounds of abundant money, but they're not gonna be getting any calories outta dem birds way up there in the canopy. Trade up (getting wealth for accumulated credit) whenever you have access to the means and resources. Make the exchange of credit for Tangible Wealth a part of your regular habits and you'll not go hungry. Thanks to the enduring market confusion -- the bubble in credit confidence that I mentioned in my Duisenberg post a couple days back -- the value of a bird in the hand is mispriced and can be bought at par by a single credit birdie way up there in the bush. So whaddaya standing there for?! Confidently load up your table with underpriced Wealth!!

Gold. Get you some. --- Aristotle


Gold Standard (05/31/03; 21:35:07MT - usagold.com msg#: 103889)
Snow on a $500 bill?
I thought that it was law in the U.S.A. that a person had to be DEAD before their image could be placed upon notes or coins of the nation.

A flat line on the machine that goes "ping" (indicating brain activity) would not suffice in my opinion.

A Snow job?


Goldilox (05/31/03; 21:00:20MT - usagold.com msg#: 103888)
Snow on the $500 bill?
AOL News
snippit:

WASHINGTON (May 29) - Treasury Secretary John Snow is the nation's top money man, but he might need a refresher course on the greenbacks the United States makes these days.

Snow was asked during an online "chat'' Wednesday what form of currency he would like to have his image on.

"I would put it on the $500 bill,'' Snow replied. It has the least circulation. That way I wouldn't have to see myself too often.''

Oops. Circulation of the $500 bill was discontinued in 1974.

Goldilox:

Given the current currency inflation, it might be a useful demonination.
The current design of the $500 bill has William McKinley on the obverse. The official whitehouse.gov history of ol' Mac says:

"When McKinley became President, the depression of 1893 had almost run its course and with it the extreme agitation over silver. Deferring action on the money question, he called Congress into special session to enact the highest tariff in history.

His second term, which had begun auspiciously, came to a tragic end in September 1901. He was standing in a receiving line at the Buffalo Pan-American Exposition when a deranged anarchist shot him twice. He died eight days later."

Maybe Mr. Snow ought to rethink his wish to something else in low circulation, like the 50 cent piece. Oops, that president was assasinated, too.


cyberbat (05/31/03; 20:43:54MT - usagold.com msg#: 103887)
Steady, Steady, come back!!!
Steady, you remind me of a scripture in the Bible (Old Testament) about having eyes, but can't see, ears but can't hear, and mouths that do not speak.
I don't know if you know it or not but the post you made about a clearing house for gold dinars is the grand post of the month. Do you not realize the potential bomb shell for the U.S. Government and the avalanche of opportunity to the small invester in such a game? There will be no bi-lateral agreements with the U.S. in this business. Are you listening? Can you hear what I saying/asking. NO BI-LATERAL AGREEMENTS!!! Unseen buying and selling from prying eyes. Please, please get us more info on this freedom of opportunity for us all------quickly. Such as where will the clearing houses be. Will they sell gold on the internet. Can customer have codes to peer at their accounts. Can physical delivery be made if you show up in person to BUY and SELL--anonymously. Quick now, I need more info. PLEASE.
Thanks,
Cyberbat


Goldilox (05/31/03; 20:28:26MT - usagold.com msg#: 103886)
Bush leaves G-8 early
http://www.foxnews.com/story/0,2933,88089,00.html
snippit:

WASHINGTON -- President Bush's decision to leave this year'sÝGroup of Eight (search)Ýsummit in France earlyÝmay be a sharp reminder of remaining differences after the war in Iraq.

In an interview with foreign journalists, Bush said the summit in Evian ? a French alpine spa ? provided an opportunity for him to talk with leaders "whether they are in agreement with the United States or have differences."


Goldilox:

After telling journalists that the G-8 "would not be a controversial event", Bush made it clear that there are higher priorities on his agenda.


"The Evian summit will not be a confrontational summit," the French newspaper Le Figaro quoted Bush as saying.

But the White House announced that Bush will cut his own time in Evian to a little over 24 hours


silvercollector (05/31/03; 19:48:21MT - usagold.com msg#: 103884)
More "Beggar thy neighbor " pains
http://money.cnn.com/2003/05/30/commentary/bidask/bidask/index.htm
"The European Central Bank, for instance, looks set to finally cut rates next week, and Llewellyn forecasts that it will continue to cut substantially through the year. Japan, no longer having even the hope of depending on export-led growth , may finally let bad businesses fail."


Cometose (05/31/03; 19:39:11MT - usagold.com msg#: 103883)
@steady //dinar dirham discussion
thank you for your post.....it makes somewhat of a bridge...
for me in my understanding of the nearing finanicial landscape and the bridge that the EURO may now be forming toward the future.......


NOW let me see here.....

If someone offered me the alternative of banking in an institution in which I knew there was to be no credit creation and that all the deposits in that system were backed by gold and silver.......

it might appear to me a more attractive alternative to the current (derivitive cesspool / fed reserve cesspool) system......all paper redeemable in silver in gold....
sounds mighty damn good to me......where do I sign up for a neighborhood franchise?????????????????????????????????

You meand someone wants to compete with the fed........

like FED EX going into business to compete with UPS.....
will the world also return to free competition and free markets.......this is sounding better by the moment.....

and the internet will provide us with global anonimity....

we'll see...........!!!!!!!!


silvercollector (05/31/03; 19:19:42MT - usagold.com msg#: 103882)
For BB, All : Panic for NG
http://www.prudentbear.com/internationalperspective.asp
"I don't believe I'll ever see gas below $4.50 again." -- T. Boone Pickens, Grant's Spring Conference 2003

Goldilox (05/31/03; 18:34:46MT - usagold.com msg#: 103881)
Policy reversal
@ silvercollector:

Perhaps we should not confuse "statement reversal" with "policy reversal." The best way to determine that a politician is lying is still to verify movement of his lips.


silvercollector (05/31/03; 18:28:16MT - usagold.com msg#: 103880)
Boilermaker
Reading your comments for message 103871 I have to ask what "ultimate release of the dollar" means?

Secondly, are we not already in "policy reversal"?


silvercollector (05/31/03; 18:18:14MT - usagold.com msg#: 103879)
Invisible Hand
Canada's cenral bank shifting reserves to Euros? Are you sure, wow that's close to home!

From their site:

"As at 31 December 2000, about US$21.7 billion of liquid
reserves (75 per cent of the total) was held in
assets denominated in U.S. dollars, the remainder,
equivalent to US$7.1 billion, was denominated in
euros and yen"

We shall watch and see.


Goldilox (5/31/03; 18:12:54MT - usagold.com msg#: 103878)
Firm adds insult to personal injury as it sacks workers by text message
http://www.guardian.co.uk/business/story/0,3604,967698,00.html
snippit:

Staff at Britain's biggest personal injury claims firm, The Accident Group, were told they had been sacked by an early hours text message when the company went out of business yesterday, leaving 2,500 people jobless.

...Clive Entwistle, head of corporate affairs at the company until yesterday, explained the manner in which many staff were sacked by saying: "It was considered by them [the administrators] that the best way to inform them that salaries were not being paid would be to send a text message. Because people had received their pay slips, they would expect that money to go into their accounts today, and because that was not going to happen, they took the decision to inform staff by text message."

Goldilox:

Damn, now that's cold . . . laid off via phone messaging. I guess the administrators decided that since they were also getting the axe, they were definitely NOT going to suffer the pain of laying off 2500 workers. This would truly be an infuriorating way to enter the bone pile!


Dollar Bill (5/31/03; 17:53:03MT - usagold.com msg#: 103877)
Steady
Hi Steady, thanks for posting that.
Since they get thier ideas from the Koran,
Am I wrong to think, well, let me not mention my thoughts after actually reading the Koran. Let me reccomend next time you go to the bookstore you read say, the first 25 pages of the Koran.

Am I wrong to think that the system, which doesnt allow for credit creation, is a disaster for poor folks in need?
Any disaster, say a crop failure, leaves the locals with no possibility of getting help from anyone.
How would anyone buy a home? Save up enough gold and pay
up front? A farmer would need to have saved enough grains from last years harvest, assumeing he could in spite of weather, bugs, thieves(too harsh a word for your hungry neighbors also frozen in poverty by this no credit system),
hungry kids eating the "profits", what would EVER compell the rich to sell the land to the goldless? No credit system?
We have done that ! Dark ages comes to mind.



The Invisible Hand (5/31/03; 17:46:42MT - usagold.com msg#: 103876)
The euro's fan club
http://www.observer.co.uk/business/story/0,6903,967764,00.html

All hail the conquering euro

The dollar's loss has been the single currency's gain as Wim's baby gains a new international fan club, says Faisal Islam

SNIPS:
The Malaysian Prime Minister, Mahathir Mohamad, has urged Petronas, the state oil company, to trade in euros rather than dollars. In March the owners of Airbus began lobbying Boeing to adopt the euro as benchmark currency for the commercial aircraft market. When the central bank of Iraq was cleaned out by Saddam Hussein's son ahead of the war, there were EURO100 million with the dollars. Saddam had bought into the euro at the bottom of the market.
Currency traders say that the People's Bank of China, the Central Bank of Taiwan, and the Bank of Canada have shifted their portfolios towards the European currency. The euro bulls predict that the single currency could make up 20 per cent of global foreign currency reserves by the end of this year, or half a trillion out of$2.4 trillion. This is far below the 68 per cent held in dollars but well up on the 10 per cent held in euros early last year.
...
The mere possibility of this fundamental shift in portfolios is likely to be supportive to the single currency, regardless of the effect on the eurozone economy. The strong dollar is dead. The strong euro may have come at an inopportune moment. But it is here to stay.


21mabry (5/31/03; 17:37:07MT - usagold.com msg#: 103875)
Ben Graham
In reading Benjamin Grahams memoirs if I am understanding him correctly.He suggests gold mine stocks preformed so well during the great depression because goverments bought their products at a set price required by law and their labor costs were greatly reduced as well as their other costs associated with buisness.If I have misinterpeted these thoughts I would appreciate someone letting me know.

steady (5/31/03; 17:28:19MT - usagold.com msg#: 103874)
no credit. means gold and SILVER
The new Islamic Money System is a major component of the Diwan al Caliph and has already reached an advanced stage of development as far as its four principal institutions are concerned, namely the Islamic Mint, the Islamic Wakala, the e-Dinar system and the Office of the Muhtasib.


Islamic Mint


The functions of the Islamic Mint are:


… To mint the Islamic Dinar and Dirham in all its denominations

… To maintain the standards of the Dinar and Dirham

… To mint the Fulus


Wakala


The functions of the Islamic Wakala are:


… Holding accounts in Dinars and Dirhams

… Executing payments on behalf of account holders

… Transporting Dinars and Dirhams to any location in the world

… Buying, selling and exchanging Dinars and Dirhams


e-Dinar


The functions of the e-Dinar system are:


… Providing a 24 hour worldwide public interface for the services of the Wakala via the internet

… Networking all the Wakala institutions



Muhtasib (Auditors Office)


In the Islamic Money System there can be absolutely no creation of credit. For every dinar or dirham in an account there must be the equivalent physical gold dinars or silver dirhams in the Wakala at any time. The Wakala is not a bank or a lending institution. There is and can be absolutely no element of credit creation. The Wakil is simply an agent for the owner of the dinars and dirhams. The e-Dinar system is only an interface between individuals and the Wakala. The Muhtasib will be entrusted with, and given the necessary authority and powers of enforcement to ensure that this is always the case.


A network of Wakalas integrated by the e-Dinar will form the operational core of the Islamic money system and will eventually enable it to function entirely independently of the current banking system. The Wakala network will operate a worldwide Dinar account and payment system which is 100% gold backed. The Islamic Wakala of Dubai has been established as the first clearing house and main gold deposit for the entire network.


Boilermaker (5/31/03; 17:18:32MT - usagold.com msg#: 103873)
Cometose msg#: 103868
Well said.

The erosion of freedom is proportional to the growth of government and debt.


steady (5/31/03; 17:17:09MT - usagold.com msg#: 103872)
dinar dirham. link shows what the coins look like.
http://www.islamicmint.com/islamicdinar/whatrthey.html
Under what was known as the coin standard of the Khalif Umar Ibn al-Khattab, the weight of 10 dirhams was equivalent to 7 dinars (mithqals)

The Islamic Dinar is a specific weight
of 22k gold equivalent to 4.25 grammes.
The Islamic Dirham is a specific weight
of pure silver equivalent to 3.0 grammes.


Boilermaker (5/31/03; 17:13:05MT - usagold.com msg#: 103871)
Strong Dollar Policy
http://story.news.yahoo.com/news?tmpl=story&cid=580&ncid=580&e=1&u=/nm/20030531/bs_nm/forex_bush_dollar_dc
Snip;
KRAKOW, Poland (Reuters) - President Bush (news - web sites) said the "devalued" level of the dollar on global markets runs contrary to U.S. policy in favor of a strong dollar, according to an interview transcript released on Saturday.
Bush was interviewed by Russia's RTR TV on Thursday. The transcript was released by the White House on Saturday as Bush headed to St. Petersburg.
Asked about U.S. dollar policy, Bush replied: "The policy of my administration is for there to be a strong U.S. dollar."
When the reporter told Bush the dollar was not strong at the moment, Bush replied:
"Well, I understand that. And the marketplace is making decisions as to whether the dollar should be strong or not. Our policy is a strong dollar. And we believe that good fiscal and monetary policy will cause our economy to grow and that the marketplace will see a growing economy and therefore strengthen the dollar," he said.
"But you're right, the market, at this point in time, has devalued the dollar, which is contrary to our policy," he said.
Bush's remarks were released on the eve of a Group of Eight summit in the French town of Evian, where any coordinated statement on volatile currencies could be treated as a sign that the dollar's sharp decline has gone too far, analysts say.

comment;
It has occurred to me that the Administration has established a code for public pronouncements relating to the defense and ultimate release of the dollar. Insiders who know the code will be forwarned and be prepared to act in advance of "policy reversal".


Dollar Bill (5/31/03; 17:12:11MT - usagold.com msg#: 103870)
Nolan sez
..By pegging short-term rates at low levels, the Fed can easily manipulate a steep yield curve that basically guarantees profits for our troubled banking system.

..The Fed has gone out and designed a trough that can feed all takers. ultra-low short-rates, and basically "pegged" long-term yields. The Fed has created an extraordinary environment for the financial sector.

..The normal interaction of supply and demand impacting the price of Credit has been completely repudiated. The Credit spigot is being turned wide open.


USAGOLD / Centennial Precious Metals, Inc. (5/31/03; 14:56:40MT - usagold.com msg#: 103869)
Your understanding of gold may well be your North Star as you navigate the future
http://www.usagold.com/cpm/abcs.html

ABCs of Au by MK

The ABCs of Gold Investing

"Gold will play a critically important role in American investment portfolios in the years to come. This book provides investors a basic education on private gold ownership from one of the nation's top experts." --Rep. Ron Paul, Texas, U.S. House of Representatives

Please Remember: It is your purchase from USAGOLD - Centennial Precious Metals that nourishes these pages.



Cometose (5/31/03; 14:06:18MT - usagold.com msg#: 103868)
@KILO re VALUE OF SILVER
Silver is artificially worth less (vis a vis the dollar) compared with a year ago.....indicating non monetary standing......

Perhaps it's easier to manipulate than the price of GOLD in spite of the supply demand relationship.....

It is said that we are in a deflationary environment.....
the price of silver seems to be telling us this is so ...

What is not said is often more important that what is being told in the media.....

There is an interesting equation that the Islamic peopls think of when they value silver durhams in relation to gold dinars....I don't know where they get the standard but it seems that it would come from the KORAN the standard for their laws in a THEOCRATIC SOCIETY....
this isn't a widespread notion that a Durham according to their exchange is above market price.....of silver

Another thing.....the fiat system is a ghost....which today only represents an idea and is only propped up by confidence of everyone....

THE ECONOMY SUCKS>.......THE BIG BOYS RUINED IT>.......
the manifestation of the cancer inside is not yet visible...
WHEN all paper burns : those who own the mines and those that sell will let you know the true intrinsic value of the metal....

I had lunch with my son and two younger boys in GRAND JUNCTION on wednesday .....they said that they both wanted to be RANGERS because their fathers are militarily and survivalistically inclined....(not a bad foundation) ...
So I told them that we were headed to WWIII and I also told them that they had never seen anything at all resembling all out war....and that it will be very ugly...
THen I asked them if they knew how many people were killed in WWII.....including collateral damage.....they hadn't a clue.....the number I told them opened their eyes......up until that time their perception had been limited as to what they thought being a warrior entailed....

IT"S ABOUT PERCEPTION.......

THE ECONOMY is about PERCEPTION.....

IN the normal business cycle we have many elements that come and go in a circle.....and then a new beginning....
IN THAT CYCLE at some point GREED TURNS INTO FEAR IN MASS PSYCHOLOGY >>>>> and with that change a change in perception of what the REALITY IS>>>>>

THIS TIME IT WILL BE DIFFERENT......because during the next down turn as the dollar burns ..... and the comex is cleared of its stocks .....of GOLD AND PERHAPS SILVER>...

GEORGE SOROS, BILL GATES , WARREN BUFFET , et al will have to apply very little pressure at the right time to make the fourth of JULY in these precious metals come and stay for several months......

Warren BUffet has a legacy for buying low and selling high,
because that is what he has given his soul to for his life's career.......He is real .....HE SAID SOMETHING ABOUT DERIVITIVES>...for some mathmeticians ....the stuff just gets inside them and they synthesize data and info and they " KNOW " we should pay attention to the financial signs and wonders that are put in our paths and know
also that Warren BUffet earned the name he has been given :
"ORACLE"

His father was a congressman....who had some intersting comments and insights on "MONEY"....

Their are some other things that he said in the past 6 months that I won't repeat that have a greater bearing on the price of silver.....and GOLD than anything else stated above......

IF THE DOLLAR IS deemed worthless by the rest of the world then the rest of the world will decide what has value and bid it's value to the sky if they wish....

THIS IS NOT THE WORLD YOU GREW UP IN.....
DO not be suprised by the events that follow ....
prepare.....for the worst because that may be what is coming to us...

.....It is very easy for me to show you if you open your eyes the depths to which we as a nation have already fallen.
spiritually........

HOMELAND SECURITY WAS PASSED over a weekend....
it was 437 pages long....and was almost unanimously supported by your and my congressmen........

THEY all SWOAR AN OATHE TO DEFEND THE CONSTITUTION WHEN THEY TOOK OFFICE>>>>>
THEY ARE ALL GUILTY OF TREASON !!!!

THEY DIDN"T READ 437 pages of lawyer talk in three days!!!!

THE MASSES DON't care .......WHY? because they are not vested in what freedom is ....;they had it handed to them on a silver platter and they have never appreciated it cause they never knew it ............slaves to their TV INDUCED GOALS AND DREAMS AND MORTGAGE BACKED DEBT BACKED TREADMILL>...

When we fall spiritually like me must have done to get a group of congressmen so asleep that they first don't read and then sign a bill that gives away our contitutional rights followed by PATRIOT ACT I and Patriot ACT 2 , our physical bondage is surely not far off.......

FIRST we fall spiritually,

and then comes our physical calamity.....
YOu don't believe me.....search history.....
then write your congressmen a letter .....

THE CONSTITUTION was a weaving of honor and sacrifice of the lives of many generations tied into a document to build a new edifice to FREEDOM......YOUR CONGRESSMEN HAVE DISHONORED THE blood of thousands of contributors....who seeded the ground of many battlefields to make your way of life available.......Say goodbye to the AMERICAN DREAM ...

where have all the flowers gone....

I THINK I'll keep my silver,
thank you very much......


Kilo (5/31/03; 13:05:41MT - usagold.com msg#: 103867)
Will the REAL monetary metal please stand up....
Looking back at Antipodean Bug (5/31/03; 02:06:55MT - usagold.com msg#: 103851), those thinking of silver as a "monetary metal" might have some second thoughts.
____________________________________

>>>>>>If silver was priced @ $4.50 a year ago and the dollar has slipped 25% against a basket of international
currencies (DXY 120 down to 92 ish) then ergo why hasn't the nominal price of silver adjusted the same way as gold
has responded ?<<<<<<

>>>>>Because the dollar has slid, we could have expected
silver to have risen by something equivalent to the
fall in the value of the measuring stick.........
The nominal price should be $5.60ish in today's dollars
if silver were priced fairly a year ago.<<<<<
_____________________________________

So if gold "IS NOT" a monetary metal as claimed by the barbarous relic crowd, why did it adjust to the falling dollar ?

And if silver "IS" a monetary metal, why did it not adjust also ?


Kilo (5/31/03; 12:45:43MT - usagold.com msg#: 103866)
Antipodean Bug - Apples to Apples, or Dollars to Dollars
Hello Sir,

Points well made. My mental block was stranded on the dollar, though what you are suggesting is as much a comparison of currencies as a comparison of the dollar vs. silver price. "Technically" the silver price is "down" in Euro and other currencies while static in relation to the dollar (not considering inflation). If we had bought silver last year in dollars, and sold this year in Euros, we are basically trading the currencies as well as the silver. On the other hand, if looking at dollars to silver and back into dollars, we're still in dollars. The yardstick to me, appears to be on the currency play rather than the silver play. Most of us tend to think in linear terms as far as the currencies we trade in and out of, dollars to x and back to dollars again. One of the disadvantages we have here in the states is not being able to swap currencies and actually use them in everyday commerce. I sometimes think it would be nice, in a way, to return to our colonial days when most all world currencies could be interchanged in trade. But then again, most of "those" were real money of gold and silver at the time.

Thanks for your comments..... much appreciated.


Goldendome (5/31/03; 11:52:59MT - usagold.com msg#: 103865)
Link to Financial Sense Newshour
http://www.netcastdaily.com/fsnewshour.htm

If you want a pep-talk on physical Gold accumulation, Murphey gets on a roll in hour two of Financial Sense Newshour. He, and fellow guest Michael Bolser, describe how the manipulators are running out of physical, physical demand is going up, and the derivitives markets are becoming increasingly unstable (we of course realized this), but the show today is worth listening to, if you have the on-line capability. I include the web-link above and hope that it works for anyone who tries it. Remember-- you can listen to this show anytime, as it is recorded on MP3's.----Gdome.


turkey hunter (5/31/03; 11:34:09MT - usagold.com msg#: 103864)
Central Bank decides to keep part of Russia's gold and hard currency reserves in euros
http://newsfromrussia.com/main/2003/05/31/47705.html
Snip......

In Putin's words, at the time when he became Russia's president 3 years ago, the gold and hard currency reserves stood at 11 billion dollars. "Now they amount to over 61 billion," Putin added, noting that these reserves were constantly growing.

The European Union is a major trade and economic partner of Russia, Putin pointed out. "As the EU expands, in case we overcome difficulties in economic interaction, our trade turnover will be growing," he stressed.



Goldendome (5/31/03; 11:19:54MT - usagold.com msg#: 103863)
Bill Murphey, fans

Bill Murphey, of the Gold Anti-Trust organization appears in hour 2 today on Puplava's Financial Sense Newshour. Anyone with MP3 listening capability can tune in to this show in entirety on your own timeline.

They talk about Fed intervention in all the markets...Not sure where it leads as I'm listining currently.
--------Gdome


Goldendome (5/31/03; 10:46:12MT - usagold.com msg#: 103862)
For the SILVER INVESTOR
This morning on Puplava's Financial Sense Newshour, Dave Morgan (Runs a Silver investment Website), stated a rather unusual occurence happened yesterday in the Silver Futures Pit.

...The May contract went off the board 6.6 cents higher than the June contract. Morgan stated that any time the current month goes off higher than a trailing month the term used to describe it is "Backwardation". Morgan went on to say this indicates that the real metal is wanted, wanted badly, and that you have to "pay-up" to get it. He doubted anyone would be reporting this unusual happen-stance on any of the mainstream finance shows.

Maybe this could be evidence of the reported Silver shortage; evidence of the 14 year or so annual production shortage?? -------Gdome


misetich (5/31/03; 09:38:12MT - usagold.com msg#: 103861)
Global: The Lessons of Japan - S. Roach
http://www.morganstanley.com/GEFdata/digests/latest-digest.html
Snip:

Second, I would heed the warnings of America's Federal Reserve. Sure, the public utterances of senior Fed officials about deflation all contain the codeword "remote" in assessing the likelihood of such an outcome. But they have no choice in their spin -- the authorities want to convince the public that the odds of deflation are extremely low. To do otherwise would strike fear into the hearts of the masses, reinforcing the very expectations they are trying to quash. My advice: Listen less to the rhetoric of a public relations campaign and pay more attention to the Fed's role in providing legitimacy to the deflation debate. The Fed's policy statement after its 6 May meeting dispels any lingering doubts -- it states explicitly that the risks are now skewed more to deflation than inflation
.................
Those lessons are especially appropriate for financial markets. Interestingly enough, for all this talk about deflation, financial markets are not priced for such an outcome. Inflation-indexed bond markets tell us that long-term inflationary expectations remain stuck in the 1.5% to 2.0% range. And rebounding equity markets speak of an earnings optimism that all but dismisses deflationary perils. Some fascinating work by our US equity strategist, Steve Galbraith, bears directly on this point, suggesting that the US stock market may even be discounting rising inflation -- from 2% to 3% -- over the next six months. Steve gleans that insight by looking at the recently improved price action of a basket of around 100 stocks that have the tightest historical correlation with inflation. The bottom line: Investors are all fascinated with the great inflation debate. But when push comes to shove, the broad consensus is still leaning the other way when putting real money to work. Should the case for deflation gain greater mindshare in shaping actionable investment conclusions, financial markets could be in for a rude awakening.
.............
************
Misetich

Most investors are gambling - as the deflation time bomb led by China exports, sluggish (recession territory) global economies and ovevalued stock markets

This stubborn denial of accepting reality will cause more pain later on as fiat paper burns

Wise investors protect themselves with some insurance - GOLD

All On Board The Gold Bull Express


misetich (5/31/03; 08:55:00MT - usagold.com msg#: 103860)
Bush's Hands-Off Dollar Policy May Pressure Allies
http://www.reuters.com/newsArticle.jhtml?type=reutersEdge&storyID=2855468
Snip:

WASHINGTON (Reuters) - A revamped and resolutely hands-off attitude within the Bush administration toward dollar policy appears designed in part to pressure industrial allies in Europe and Japan to step up the pace of economic reform.

As President Bush prepared for a weekend summit with Group of Eight allies in Evian, France, he said he will assure them the United States has a strong-dollar policy, something they want to hear.

But Bush's insistence that markets should determine currencies' value also underlined a U.S. view that government intervention is not an effective way to reinvigorate a struggling global economy and that reforms are overdue.

"We believe that correct financial policies will lead to growth in the economy and that the market will respond to economic growth by strengthening the dollar," Bush said on Russian television on Friday.
.............
The Bush administration initiated a shift in its dollar policy in recent weeks during a series of calibrated remarks by Treasury Secretary John Snow, who said in Deauville, France, two weeks ago that value was not one of a series of qualities that he saw defining a strong dollar.
.............
ndirectly, the declining dollar ratchets pressure up for measures abroad that the Bush administration considers necessary to invigorate global growth, like interest-rate cuts in Europe and banking reforms in Japan.

Privately, U.S. officials fret that Japan has spent tens of billions of dollars in the past year in largely futile interventions, buying dollars and selling yen to try to cheapen its value, money that might have used for real reforms.
**********
Misetich

Great "spin" by the spinmasters - How exactly is the US "shifting" its strong dollar policy? What did they do to maintain a strong US $ policy in the past, when the Fed Reserve statistics do not show US markets intervention?

If global economies are slowing and the Chinese Yaun is pegged to the US $ trending down - How will it help US exports? How can increased import prices assist US debt laden consumers?

How can US corporations increase capital spending if cashflow earnings are declining?

Or could it be that the "spin" is used to cover up the reality of market adjustments in the valuation of the US $ as defrauded investors worlwide have taken a kicking in US investments in recent years and the needed capital of $1.5 billion daily is not forthcoming

All On Board The Gold Bull Express


misetich (5/31/03; 07:38:32MT - usagold.com msg#: 103859)
First Quarter Corporate Profits And Cash Flow Weaken
http://www.ntrs.com/library/econ_research/daily/us/030529.html
Snip:

The key to a vibrant economy is vibrant corporate profits. And the first-quarter data on NIPA profits from current production were none too vibrant. Before-tax profits from current production eked out a gain of only 0.99% after last year's fourth-quarter increase of 3.26%, as shown in the chart below. Current-production cash flow - the stuff of capital spending - declined by 1.18% in the first quarter after having increased 1.47% in the previous quarter. In the past five quarters, cash flow has been positive only once. With corporations under pressure to use more of their cash flow to pay down debt and top-up underfunded pension plans, declining cash flow is a definite negative for capital spending.
**********
Misetich

Stock Markets are rising anticipating another Greenspan interest rate cut - yet the economy is performing poorly

The Big Bad Bear is licking its chops ready to pounce...stay tuned

All On Board The Gold Bull Express


misetich (5/31/03; 06:49:21MT - usagold.com msg#: 103858)
Motorola's Turkish Telecom Feud -A Fight Over Billions In Loans Goes Ballistic
http://www.washingtonpost.com/wp-dyn/articles/A60058-2003May30.html
Snip:

NEW YORK, May 30 -- Motorola Inc. and one of Turkey's wealthiest families are engaged in a globe-straddling drama that involves seized planes, charges of computer hacking and physical threats, accusations that billions of dollars have been stolen and nasty court fights and media campaigns.

The latest twist in the byzantine three -year legal disputeoccurred this week when Motorola, a global telecommunications company, found itself on the receiving end of blistering full-page newspaper ads accusing it of misleading its shareholders. The ads were paid for by Telsim Mobile Telecommunications Services Inc., a Turkish company controlled by the Uzan family, one of the best-known families in Turkey.
..............
Telsim also says much of the Motorola equipment purchased with the loan was defective and some of it was forced on the company so that Motorola could inflate its sales figures. Motorola denies both accusations.
...........
Because of Telsim's refusal to appear for depositions or comply with court orders, courts in New York and London have ordered Uzan family assets frozen and held family members in contempt. A London court sentenced to prison terms four Uzan family members, including patriarch Kemal Uzan, with a net worth of $1.3 billion listed by Forbes magazine as one of the richest men in the world.

Spokesmen for Telsim say because the company does not recognize the jurisdiction of the U.S. or U.K. courts, the contempt rulings and prison sentences are meaningless.
...........
The ads, prepared with the help of a New York-based public relations firm, Abernathy MacGregor Group Inc., say that Motorola failed to properly disclose to shareholders that between 1998 and 2000 it loaned $1.9 billion to Telsim to purchase cell phone equipment. The ad says Motorola then booked some of the loans as sales, inflating its revenue.

The ads assert that Motorola has misled its investors for years, bragging about the potential revenue of the deal with Telsim in press releases but not disclosing the loans. The ads note that 19 shareholder lawsuits have been filed against Motorola regarding the loan disclosure and cite comments made by former Securities and Exchange Commission chairman Arthur Levitt critical of the "vendor financing" arrangement.

Levitt declined today to comment on the dispute.

******************
Misetich

The knives are out - and investors once again will witness the corrupt practices of the "new economy" created by accounting manipulations to deceive and defraud investors

All On Board The Gold Bull Express



Usul (5/31/03; 06:44:20MT - usagold.com msg#: 103857)
Mortgage payouts slump
http://www.dailytelegraph.co.uk/money/main.jhtml?xml=/money/2003/05/31/cmmor31.xml&menuId=244&sSheet=/money/2003/05/31/ixfrontperson.html
"More than one in three with-profits endowments issued by Britain's biggest insurer will fail to repay mortgage debts when the policies mature this year..."

Usul (5/31/03; 06:40:45MT - usagold.com msg#: 103856)
Dow's super week
http://www.nypost.com/business/35952.htm
"Wall Street is holding its breath, hoping stocks will keep some of their gains from the week...

"It's more dangerous now for investors than it was during the 2000 mess," portfolio manager Bill King said..."


misetich (5/31/03; 06:38:10MT - usagold.com msg#: 103855)
Bernanke Sees No U.S. Deflation Threat
http://www.washingtonpost.com/wp-dyn/articles/A61075-2003May31.html
Snip:

"There is no immediate threat of deflation in the U.S. economy," Fed Board Governor Ben Bernanke told reporters in Tokyo after a speech at an academic gathering. "The concern is that inflation may become uncomfortably low."
...........

U.S. analysts are refocusing on the threat after figures on Friday showed the central bank's favored measure of core inflation eased in April to just a 1.3 percent annual rate -- its slowest clip since the mid-1960s, excluding a few errant months.

Bernanke, giving his own views that do not reflect an official Fed position, as is customary with Fed speakers, said U.S. inflation below one percent would be uncomfortable because it takes the economy close to levels where deflation may become more likely.

"It's an issue of making sure that the inflation rate stays within an appropriate range," he said.

Bernanke added that the prospects for the U.S. economy were good and expected growth in the second half of this year of between 3.0 and 3.5 percent, rising to four percent in 2004.
............

"Specifically, the Bank of Japan should consider increasing still further its purchases of government debt, preferably in explicit conjunction with a program of tax cuts or other fiscal stimulus," he said.

One possible method would be for the BOJ and the Finance Ministry to enter into a fixed rate-floating interest rate swap for government securities owned by the BOJ. Such a move, Bernanke said, would ease pressures on the BOJ's balance sheet at relatively little cost to the Japanese treasury.
***************
Misetich

What if Bernanke is wrong in his MaÒana economics and US growth stays in the present anemic pace as a few economists (who have been right on for the last 3 years) have forecasted?

The Bush tax cut will do little for the economy - instead it will balloon the projected deficit.

Japan's economic problems are increasing and Bernake KNOWS that - and its only a matter of time before the Japanese throw in the towel and let the Yen appreciate as US $ keeps on tumbling down to its fair value

What better reason for the world central bankers and investors to diversify their currency portfolio and add gold and euros!

All On Board The Gold Bull Express






Belgian (5/31/03; 06:19:41MT - usagold.com msg#: 103854)
1998 article fromThe Red Baron
http://www.gold-eagle.com/gold_digest_98/baron112098.html
It is a pity that this chap, Red Baron, isn't posting anymore. Maybe because he said it all, already.
After reading the article, one must realise how obscenely low, all the sugar-Gold in the world, is priced in the face of that new 44 TRILLION DOLLARDEBT figure !

Bear in mind that 100 tonnes of Gold = 1 Billion (NOT trillion) $. The IMF, for instance, with its 3,000 tonnes, has a maneuver-space with this stash of 30 billion dollars.
1 trillion = 1,000 (one thousand) billion !!!
Trillions of debt against billions of presently priced Goldreserves versus debts : a factor 1,000 making the difference !!!

30,000 tonnes of central bank goldreserves = 300 billion dollars (1/3 of a trillion$) : Is less than 1 year US trade deficit.

When you read Randy's confetti-creation reports...replace every billion $ with its equivalent of 100 tonnes of Gold !

What if Gold "must" be revalued on one given day !!!-???
I want to relativate the imo, ridicule projections of POG = 600$/Oz. The double (600$) of nothing (300$) is two times nothing ! What would be achieved with a POG=600$ ?

Nice, sunny weekend to all.


Belgian (5/31/03; 04:53:59MT - usagold.com msg#: 103853)
How will EMU change the Global Financial Architecture ?
http://www.cato.org/events/monoconf16/connolly.pdf
Google for html version.
A 5 yrs old ('98) article, Bernard Connolly - Cato Institute - Annual monetary conference cosponsered The Economist (!!!)
In the mean time we saw an euro from minus 30% to the dollar to a plus 19% ! The euro, a real "force de frappe", Chirac !

Snippet : Gold would recover some of its lost attributes a a good - perhaps the best available - inflation hedge...
But good news for the goldmarket would be little consolation for the overall sheme of things.

And in the light of the current EURO-$ evolving exchange rates, go to http://www.usagold.com/gildedopinion/mundellprague.html...
"Exchange rates, currency areas and the International Financial Architecture".

A bit of lefty counterbalance at http://www.villageorpillage.org/Articles/our_new_financial_architecture_a.html
"Our New Financial Architecture and Theirs".

Point is : What kind of conclusions do we have to pull if the EURO-$ exchange rate goes to, beyond 1,40 ??? What is your guess Sir Kosares ?


The Invisible Hand (5/31/03; 02:17:01MT - usagold.com msg#: 103852)
House of cards -- Another bubble revisited
http://www.economist.com/displaystory.cfm?story_id=1794873

From THE ECONOMIST

SNIPS:

Many property analysts scoff at the suggestion that another bubble is in the making. House prices may have fallen after previous booms, but "this time is different", they insist. That is precisely what equity analysts said when share prices soared in the late 1990s. They were proved wrong. Will the property experts suffer the same fate?
...
A lot more people own homes than own shares.
...
Yet, curiously, there has been much less economic research into the property market than into the stockmarket, the bond market or the foreign-exchange market.
....
How long can the party last? Estate agents, builders, lenders, many economists and even Alan Greenspan, chairman of America's Federal Reserve, have all insisted that there is no house-price bubble. Rising house prices, the argument goes, are fully justified by low interest rates, rising real incomes, growing populations and a fixed supply of land. But this sounds a little like the "wall of money" argument used to defend inflated share prices in the late 1990s. Prices had to rise, it was said, because the number of shares in which pension funds could invest their billions was limited. Investors mistakenly came to believe that the traditional link between share prices and profits no longer mattered. Home-owners may be making a similar mistake today.
...


Antipodean Bug (5/31/03; 02:06:55MT - usagold.com msg#: 103851)
Silver price $3.27 Reply to Kilo
When we equate the price of silver to nominal dollars we are comparing two variables. It just so happens that many commodities like silver are quoted in dollars.

To those of us living outside the US, the fluid nature
of the measuring stick (the dollar) has been only too
obvious over this past 12 months.
So the calculation is simple.

If silver was priced @ $4.50 a year ago and the dollar
has slipped 25% against a basket of international
currencies (DXY 120 down to 92 ish) then ergo why hasn't the
nominal price of silver adjusted the same way as gold
has responded. That is simply my point.

Because the dollar has slid, we could have expected
silver to have risen by something equivalent to the
fall in the value of the measuring stick (supply and
demand and rigging issues remaining the same.)
The nominal price should be $5.60ish in today's dollars
if silver were priced fairly a year ago.

The fact that it languishes below $5 in today's dollars
simply confirms that in absolute terms the price has
retreated backwards substantially.

Put simply, there is a lot of catch up in the price
of silver to register in the markets - further evidenced
by the gold/silver ratio - out to an extreme level in
excess of 80 !!

To respond to your other question, a simple investment
in euros would have yielded +30% return in the last year
relative to dollar denominated assets.


Topaz (5/31/03; 01:48:03MT - usagold.com msg#: 103850)
The Protagonists.
http://www.futuresource.com/charts/multicharts.asp?symbols=TnXY%2CDXM03%2CGCM03&period=D&varminutes=&bartype=line&bardensity=LOW&r=&go.x=15&go.y=10
Well the contest has been run and won and on a glorious Autumn eve here in Sydney, may I extend my congratulations to the winners...it was indeed a hairy ride!

The charts show the 10Yr Bond Yield, The $PoG and Dollar Index. The correlation is imo quite apparent. A weak (or weakening) Dollar relates to a rising PoG and lower Bond Yields.
Now lets look at which moved first this week and we get a heirachy of Bonds-Dollar-Gold, however in correction we got Dollar-Bonds-Gold. A two day Bond sell-off translated into a one day Dollar spike...and Gold whipsawed between the two. Those who see a Gold breakout from here (in it's current livery) are not being supported by the facts imo.

Whats of a more critical nature is the inability of the Dollar to rise @ these yields...not inability but unacceptability, WHY?...because the Cash Dollar is the BIGGEST threat to the System at this IR (inflation) level.
A foreign Bondholder will suffer a slightly negative Yield if his Capital component is increasing at a greater rate (including yield) than it's $Cash equivalent. Once $Cash (index) rises, he's better to move to Cash.
We appear to be at the juncture now where Cash Dollar can't go up or down and Bonds are on the floor, without the promised Jobless, Profitless Recovery as touted on CNBC I'd say things are pretty bleak.


Mr Gresham (5/31/03; 00:10:11MT - usagold.com msg#: 103849)
Great Albino Bat!
A thoughtful post (on Japan) after a thoughtful day for me.

Samurai Yakuza: Return of the Repressed, is what you're saying?

Maybe I should locate my childhood Daniel Boone coonskin hat? Or is it my Nantucket ancestors' harpoon? (Hopefully not the Salem guys' pyro thing about, ah, impressionable women.)

Well, anyway, I think you're right. About what may happen in a lot of places. This "modern" paper and kilo-digits order of smoothing over a lot of chicanery, while the people act like children (spoiled or otherwise) has got to end. And there are no recognizable grown-ups to set it back aright.

I really suspect that a lot of thinking people will have personal decisions to make on how to confront (or make a smart endrun around) whatever form of fascism takes hold in hard times. Every case is different, yes, but some things repeat. I used to be so much more sure about my opinions, but now (and I appreciate, I do!) I can see how much Guano has passed under the Guano Processor.

Thank the Great Bat I did not sacrifice my Batness for any of it. I'm still here, to hang around, and occasionally fly (by night, naturally).

What is Temporal Guano, and what is for all time? Learning more each day...




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