It All Starts Here- ANOTHER (THOUGHTS!)

[Red3y3]

Date: Sun Oct 05 1997 21:29
ANOTHER ( THOUGHTS! ) ID#60253:

Everyone knows where we have been. Let's see where we are going!

It was once said that "gold and oil can never flow in the same direction". If the current price of oil doesn't change soon we will no doubt run out of gold.

This line of thinking is very real in the world today but it is never discussed openly. You see oil flow is the key to gold flow. It is the movement of gold in the hidden background that has kept oil at these low prices. Not military might, not a strong US dollar, not political pressure, no it was real gold. In very large amounts. Oil is the only commodity in the world that was large enough forgold to hide in. Noone could make the South African / Asian connection when the question was asked, "how could LBMA do so many gold deals and not impact the price". That's because oil is being partially used to pay for gold! We are going to find out that the price of gold, in terms of real money ( oil ) has gone thru the roof over these last few years. People wondered how the physical gold market could be "cornered" when it's currency price wasn't rising and no shortages were showing up? The CBs were becoming the primary suppliers by replacing openly held gold with CB certificates. This action has helped keep gold flowing during a time that trading would have locked up.

(Gold has always been funny in that way. So many people worldwide think of it as money, it tends to dry up as the price rises.) Westerners should not be too upset with the CBs actions, they are buying you time!

So why has this played out this way? In the real world some people know that gold is real wealth no matter what currency price is put on it. Around the world it is traded in huge volumes that never show up on bank statements, govt. stats., or trading graph paper.

The Western governments needed to keep the price of gold down so it could flow where they needed it to flow. The key to free up gold was simple. The Western public will not hold an asset that going nowhere, at least in currency terms. ( if one can only see value in paper currency terms then one cannot see value at all ) The problem for the CBs was that the third world has kept the gold market "bought up" by working thru South Africa! To avoid a spiking oil price the CBs first freed up the publics gold thru the issuance of various types of "paper future gold". As that selling dried up they did the only thing they could, become primary suppliers! And here we are today. In the early 1990s oil went to $30++ for reasons we all know. What isn't known is that it's price didn't drop that much. You see the trading medium changed. Oil went from $30++ to $19 + X amount of gold! Today it costs $19 + XXX amount of gold! Yes, gold has gone up and oil has stayed the same in most eyes.

Now all govts. don't get gold for oil, just a few. That's all it takes. For now! When everyone that has exchanged gold for paper finds out it's real price, in oil terms they will try to get it back. The great scramble that "Big Trader" understood may be very, very close.

Now my friends you know where we are at and with a little thought , where we are going.

Another (Thoughts!): The Profound Story of Gold and Oil

The inside story on the gold for oil deal that could rock the financial centers of the world.

web.archive.org

 

[Red3y3]

Date: Tue Oct 07 1997 22:37
ANOTHER (THOUGHTS!) ID#60253:

Why did LBMA go public?

Ever notice how many important middle eastern people keep a residence in London. It's not because of the climate. The most powerful banks in the world today are the ones that trade oil and gold. It is in the "city" that the deals are done by people who understand "value"! Westerners should be happy that they do because the free flow of oil and gold has allowed this economic expansion to continue this past few years.

Understand that oil is still traded for a certain number of US$ but after the deal is done a certain amount of gold is also purchased "with the future flow of oil as collateral". If the world price of gold gets to high then the oil price is falling. So long as gold stays cheap in currency terms oil will be in good supply.

Too hard to follow? If real physical gold trading dries up it's price will rise forcing down the value of oil. All this year physical gold volume kept drying up as paper short volume exploded. But,each time before a squeeze started to run the price the CBs would sell thru LBMA . You see, when paper trading ( of anything ) volume dries up it's a bearish sign but when real physical gold volume drops it's bullish! Thats because gold is being cornered on a scale never seen in history. LBMA is doing it's best to show real volume exists! The problem is, "if the CBs don't expand their roll as "primary suppliers" LBMA will implode and in the process create the greatest bull market in oil and gold the world has ever seen. That is why some "Big Traders" are holding ONLY gold as events unfold. Interesting, don't you think?

 

[Red3y3]

Date: Thu Oct 09 1997 19:00
ANOTHER ( THOUGHTS! ) ID#60253:

"Gold is the only money the world has ever known" Sounds like a simple thought but it isn't .

" Money is whatever people say it is" - Not true!

"Currency is whatever a government says it is" - True!

"The LBMA problem"

I can now make clear for all to see.

Background; to understand the following you must rethink your basic knowledge of money and investments. Get your aspirin ready.

Some time ago gold not only was used as money but also circulated as currency. It had always been money and people had no use for a separate currency to represent "gold money" so they stamped the gold itself and used it as circulating currency. From the start, one thing most thinkers can't quite grasp is that "money does not have to circulate"! The first "world money", gold money that is, could stay locked up and still represent value and wealth. People had but to agree on who owned it in exchange for goods and services. You have all read the articles about how paper receipts for "gold money" were later circulated and became paper currency receipts, then paper currency, then just currency.

The western world today, as we know it does not use money ! They use "paper currency". To fully understand what that really means you must come to terms with this fact. " When you use paper currency you are placing a value using another persons concept of value" You are using a thought as a means of value! When an investment in stocks, bonds, bank accounts, CASH, businesses etc. is priced in US$ currency you are really holding the "intentions of providing value" locked away in the thoughts of another mind.

This type of human interaction works well for a time, as the last 100 years or so proves. But, it is highly unstable to say the least. It has it's own self distruct code written inside each mind. One day ( it has already started ) a type of nuclear chain reaction will occur in the currency markets as people start "unvalueing" the thoughts of others. Little by little all debts owed will be marked down .

Now that we understand that concept let's move on:

One of the great money troubles facing the western currency system today is that many third world people are starting to put a "mind value" on real money, gold. These people don't know the true value of gold money but they know it's worth a whole lot more than the world paper currency price now placed on it. And that brings us to the next problem; how can paper currency that represents "the thoughts of a nation blowing in the wind" be used to value real money of ancient world class proportions, gold? It cannot! Any price you can think of will do, as in no price will work!

How did we come to this unworkable mess?

The best way to rework the publics mind about gold money was by changing the way it was viewed.

"It's money of course but let's also call it a "commodity! Then we can place a "paper" value on it and denominate it in all forms of future contracts. It will lose it's true value as money in peoples minds and be priced in an unrealistic paper format." And here we are today!

The banks must sell all the gold they have to keep the system togeather. And once it is all sold and the financial markets implode the nations will use "whatever force is necessary" to pull the gold back in! That action in and of itself would show the true value of gold money!

What of the LBMA mess?

Gold is cornered. Plain and simple. No complicated theories, no options problems. The commodity value of gold was forced so low in paper currency terms that all of the new mined gold, going out some 10 years is spoken for. Between the third world buying physical gold and the jewelry industry ( same people buying ) there is none left for the oil states! They do value oil in terms of gold, but not IN the paper currency price of gold! How much is gold worth in terms of oil value? Just stop supplying gold to them in ultra cheep US$ terms and you will find out by watching the currency price of oil! In any event, LBMA has traded so much paper/oil/gold that any rise in the currency price of gold will implode them. The CBs must become the full primary suppliers of gold or the system as we know it is done.

One last note: No form of paper wealth will survive the financial crush once the CBs stop selling!

NOTHING!

 

[Red3y3]

Date: Fri Oct 10 1997 17:26
ANOTHER (THOUGHTS!) ID#60253:

Yes, we could go into details about the LBMA mess. But why? They are in way over their heads and the final outcome is on it's way.

A big change in the gold market actually started last spring. You couldn't tell by the charts or news stories but it had the CB trading rooms going nuts. Up untill then they were using 3rd party transactions to sell, then the boomshell hit that the Merchant Banks were doing deals for 10 to 20 times what was offered! Well "boys will be boys" and someone is now stuck, big time! That's why "Big Trader" and his bunch closed out all paper and pulled in bullion. Don't worry about the CBs selling everything, the market is huge compared TO WHAT THEY HAVE! And Comex is nothing, if "only a silly game". Worldwide trading in gold could be cut in half and still equal all the metal in existance!

The CBs will have to sell outright now even as the currency price of gold starts to run away from them!

The market is changing now,,, it will go up but you will not be happy with the outcome.

 

[Red3y3]

Date: Sun Oct 12 1997 10:42
ANOTHER (THOUGHTS!) ID#60253:

How DO they do it?

It's more complicated than this but here is a close explanation. In the beginning the CBs didn't sell their own gold. They ( thru third party ) found someone else who had bullion. That "party" sold to a broker who sold forward for a mine or speculator or government ) . In the end the 3rd party had the backing from the broker that he had backing from the CB to supply physical if needed to put out a fire. The CB held a very private note from the broker as insurance and was paid a small fee. This process mobilized free standing bullion outside the government stockpiles. The world currency gold price was kept down as large existing physical stockpiles were replaced by notes of future delivery from the merchant banks ( and anyone else who wanted to play ) .

This whole game was not lost on some very large buyers WHO WANTED GOLD BUT DIDN'T WANT IT'S MOVEMENT TO BE SEEN! Why not move a little closer to the action by offering cash directly to the broker/bank ( to be lent out ) in return for a future gold note that was indirectly backed by the CBs. That "paper gold" was just like gold in the bank. The CBs liked it because no one had to move gold and it took BIG buying power off the market that would have gunned the price! It also worked well as a vehicle to cycle oil wealth for gold as a complete paper deal.

Are you with me?

Well a funny thing happened right after the Gulf war ended. What looked like big money before turned out to be little money as some HK people, I'll call them "Big Trader" for short, moved in and started buying all the notes and physical the market offered. The rub was that they only bought low, and lower and cheaper. They never ran the price and they never ran out of money. Seeing this, some people ( middle east ) started to exchange their existing paper gold for the real stuff. From that time, early 1997 LBMA was running full speed just to stay in one spot! In other words paper volume had to increase to the physical volume on a worldwide scale, and that was going to be one hell of a jump. It could not be hidden from the news any longer.

This was not far from the time that "Big Trader" said that "if gold drops below $370 the world would see trading volume like never before seen". The rest is history. Now the CBs will have to sell 1/3 to 1/2 of their gold just to cover whats out there. To use the Queens English "it ain't gona happen dude"!

Everything is now upside down and reversed. The more the CBs sell outright the more the price will rise.

It's not a bearish sign anymore. They will now sell to keep the price rising slowly.

What of those T-bonds and the US$?

More later.

 

[Red3y3]

Date: Wed Oct 15 1997 21:48
ANOTHER (REPLY?) ID#60253:

Reprint from post:

" Now all govts. don't get gold for oil, just a few. That's all it takes. For now!"

 

[Red3y3]

Date: Sat Oct 18 1997 21:04
ANOTHER (THOUGHTS!) ID#60253:

I ask you now: " Is it hard to believe or hard to understand"? When it comes to money it's usually both.

Know this: "gold transcends human valuations thru time and life". . Take your time on this one!

Gold is now caught in a crossfire of world thought. The traders are viewing it as a commodity and trying to make money on it's moves using various paper trading vehicles. Their opinion of the market is flawed because the "real value buyers" would never deal with these people or let anyone in that circle know they are buying gold as "money"! The major buying and selling is between CBs, nations, merchant banks, "the super rich" and the hordes of small buyers in forgotten places. That is one of the small many reasons wall street hates gold, they are not part of the real action. Comex is a side show!

Let me fill in the Xs.

First a reprint;
"You see the trading medium changed. Oil went from $30++ to $19 + X amount of gold!
Today it costs $19 + XXX amount of gold! "

If you owned a commodity in the ground that had to be sold for paper currency in order to realize value what would do? Yes, the oil in the ground may last another 50+ years but will the bonds and currencies of other governments last that long? One thing you don't do is buy gold outright, it would cause it to stop trading as a commodity and start trading as money! You learned that in the late 70s. Nor do you acquire "real gold money" in any fashion that would allow a comparison of price trends ( graphs ) ! There must be a way to convert the true wealth of oil into the outright wealth of gold. We know that oil is a consumed wealth of a momentary value that is lost in the heat of fire.

The stars blink and it is oil wealth no more!

It has become "the debt of nations " now owed to you. Gold on the other hand is not a commodity as many assume, as it is truly "the wealth of nations " meant to last thru the ages! A wise oil nation can strike a deal with the paper printers and in doing so come out on top. Go back a few years to the early 90s. Oil is very high, you offer to lower the US$ price in return for X amount of gold purchasing power. You don't care what the current commodity price of gold is, your future generations will keep it as real wealth to replace the oil that is lost. Before the future arrives gold will be, once again valued as money and can be truly counted on to appropriately represent all oil wealth!

The Deal:

We ( an oil state ) now value gold in trade far higher than currencies. We are willing to use gold as a partial payment for the future use of "all oil" and value it at $1,000 US. ( only a small amount of oil is in this deal ) And take a very small amount of gold out of circulation each month using it's present commodity price.

If the world price can be maintained in the $300s it would be a small price for the west to pay for cheap oil and monetary stability.

The battle is now between CBs trying to keep gold in the $300s and the "others" buying it up. In effect the governments are selling gold in any form to "KEEP IT" being used as 'REAL MONEY" in oil deals! Some people know this, that is why they aren't trading it,, they are buying it.

Not all oil producers can take advantage of this deal as it is done "where noone can see". And, they know not what has happened for gold does not change in price! But I tell you, gold has been moved and it's price has changed in terms of oil! For the monthly amount to be taken off the market has changed from $10 in gold ( valued at $1,000 ) /per barrel to the current $30 in gold /per barrel still valued at $1,000! Much of this gold was in the form of deals in London to launder it's movement. Because of some Asians, these deals are no longer being rolled over as paper!

What is happening now is far, far larger than the interest of a few traders or mining companies. They will be stepped on!

more on US$ and T-bills.

 

[Red3y3]

Date: Sun Oct 19 1997 09:42
ANOTHER (THOUGHTS!) ID#60253:

There is only one oil state that counts! Only one! They have made it very clear how important gold is to them. If they had started buying outright, gold would have gone to $5,000+ in days. And only a very few million ozs. would have been purchased! The message has been for some years, "we will accumulate thru the back door, using paper deals if you keep the price at or below the cost of production". Do this and oil will remain THE driving force of the world economy!

FAIL THIS AND WE WILL PRICE GOLD IN DOLLARS AT THE TRUE VALUE OF OIL TO THE WORLD!

You see, gold is not a commodity. The CBs have used every weapon to keep it's price low . Understand me, Gold is now, today, a devalued currency being used in world trade!

Do you think the CBs are selling gold to keep the dollar strong? They don't have to sell to accomplish that feat! CB gold ( one billion ozs.? ) valued at it's current commodity price is only worth 300 billion, it's nothing in that price range! They know what it's US$ price is worth in terms of oil! They are not stupid as they show.

You should not think they are dumb! Invest in gold mines, will you? Notice how quick the Australian CB hinted at taking "gold in the ground" if needed. This was said after their sale! The nature of the coming crisis will make the taking of investor property a piece of cake. You see, because gold is a commodity, you will be compensated at the commodity price of return + a fair profit, of course.

How much further can they take this? The world private stockpiles that could be sold have been. The CBs are heavy into their own stuff now and are over their heads if they had to make good on all the private deals ( read my other posts ) . The economic game is ending now and has been from the start of 1997! Watch closely as the world currencies and markets fall one by one. Watch in absolute wonder as the demand for oil plunges and it's price goes thru the roof. Yes, oil stocks will crash with the markets. And gold? You will never know it's price. It will stop all trading as it slices thru $10,000+.

Who am I? As I will not be around for long so I am noone. But, follow with me as all of this takes place in your time!

 

[Red3y3]

Date: Sun Oct 19 1997 13:41
ANOTHER (THOUGHTS!) ID#60253:

If you are searching for facts you will find them, but the items you find will not be true! Did you think that the high powered world of the LBMA would operate in a fishbowl for all to see? We cannot take what is on the outside as evidence for what is on the inside. To find the answer work with inside assumptions and extrapolate them to the outside!

Think now:

Would the world CBs really have kept gold this long if they only valued it at it's ongoing commodity price? Cannot only the offer of gold have some value in a deal? Can paper gold that has a commodity face value of, say $300 be traded for it's true value of many thousands? Indeed, if your worldly investments ( US stock market? ) are valued in the long run by a full supply of oil, would not future gold in a Swiss acct. make a good trade?

Do the oil states think our military is there to protect them or protect oil?

Fact: If the world bids up the price of gold, all deals will be off! It would be every nation for themselves.Oil would explode in price!

 

[Red3y3]

Date: Sun Oct 19 1997 17:26
ANOTHER (THOUGHTS!) ID#60253:

Where are my THOUGHTS leading?

Yes, Mr. Cole you are correct. The Central Banks have known for quite some time the true value of gold in today's paper world. In a very real sense they are on our side. Let's take their side if you will. They are not dumb or stupid, in fact many of them are the best of the best! You see, the world grew up and ran away from them, totally out of control. It has left in it's wake a money system of colossal debt and political mismanagement. They know it is over.

We are all at a giant poker table and the CBs act as the dealer. One day soon the game will end and the players will try to cash in the chips. In that day the dealer will act in our own best interest. They will not pay out gold for the chips. The money system will start over, from scratch.

Also:
It is easy to know that gold could not have been traded for all oil sold. This was never the intent. They only wanted to pull a small amount out of circulation on a regular basis. Using a small amount of oil as a partial trading vehicle gold could be purchased in an all paper deal to hide it's price. As I said before, if they walked up to the plate and started buying outright it would run the price. It is working. They only need 200 million ozs. When the system breaks that gold would be worth all the oil in Arabia and then some.

The Asians are the problem, by buying up bullion worldwide and thru South Africa they created a default situation on all the paper for the oil / gold trade! Now the CBs are selling in the open to calm nerves but it's known that they will never sell enough. It was never their intent to provide the gold, only the backing until new mining technology could increase production. Over time the forward sales, such as ABX's should have worked. But LBMA went nuts with the game and the whole mess has now accelerated.

 

[Red3y3]

---

Date: Sun Oct 19 1997 23:08
ANOTHER (THOUGHTS!) ID#60253:

Mr. Cole,
The Central Banks could hold gold down for some time, even with massive buying. Watch oil! If it rises much and gold isn't sold off then the game is over.

A reprint from an earlier post:

The Deal:
We ( an oil state ) now value gold in trade far higher than currencies. We are willing to use gold as a partial payment for the future use of "all oil" and value it at $1,000 US. ( only a small amount of oil is in this deal ) And take a very small amount of gold out of circulation each month using it's present commodity price.
If the world price can be maintained in the $300s it would be a small price for the west to pay for cheap oil and monetary stability. The battle is now between CBs trying to keep gold in the $300s and the "others" buying it up. In effect the governments are selling gold in any form to "KEEP IT" being used as 'REAL MONEY" in oil deals! Some people know this, that is why they aren't trading it,, they are buying it.
Not all oil producers can take advantage of this deal as it is done "where noone can see". And, they know not what has happened for gold does not change in price! But I tell you, gold has been moved and it's price has changed in terms of oil! For the monthly amount to be taken off the market has changed from $10 in gold ( valued at $1,000 ) /per barrel to the current $30 in gold /per barrel still valued at $1,000! Much of this gold was in the form of deals in London to launder it's movement. Because of some Asians, these deals are no longer being rolled over as paper!

 

[Red3y3]

Date: Sat Oct 25 1997 10:24
ANOTHER (THOUGHTS!) ID#60253:

Why do the Swiss want to sell gold over many years when they could sell the entire lot in a week? Yes, the worldwide trading volume in gold could take the whole load and not drop the price below Fridays close! The reason for the "many long term selling announcements" is to keep the price down over time. The CBs would have you think that their selling would "crush the price"! The real effect would be exactly the opposite. The major world buyers would line up at the door to buy "the last sale of the century! Have you heard any CBs putting out "Proposals to Sell" for their entire stock of gold? Of course not, the response to buy would give off the absolute wrong signal and cause a revaluation of gold .

It is a far better use of a public asset when they use a small anount of it over time to ensure a reasonable price for OIL! If all gold was sold quickly, there would be no trading medium for deals! How far do you think an IOU would go if it didn't have gold in the background worth perhaps a 1,000 times it's current commodity price?

So what good is this information to the small investor? Not much if you run out and buy gold options, gold stocks, gold futures, etc.! Did you think the following quotes were good for those assets:

"That is why some "Big Traders" are holding ONLY gold as events unfold."

" One last note: No form of paper wealth will survive the financial crush once the CBs stop selling! NOTHING! "

"The market is changing now,,, it will go up but you will not be happy with the outcome."

"What is happening now is far, far larger than the interest of a few traders or mining companies. They will be stepped on!"

Gold bullion is being accumulated and cornered on a worldwide scale not seen before! UNDERSTAND THIS: The people who are buying do not expect the price to rise until the CBs slow their selling. They do expect the value of gold to increase in the future even as the banks sell into a rising market. This will happen as the sheer volume of trading completely overwhelms the entire worldwide market! The big buyers fully well expect gold to stop all trading as the governments enact DRACONIAN MEASURES to deal with a worldwide currency problem. The public in general will ask for these measures and to that effect, all paper connected to bullion will become "fair game"!

My projections and -----:

The gold market is not the same as it was in the past, so throw your charts and TA away! Nor will the gold market be the same in the future as it is today, so don't use paper substitutes! Today, gold is much more valuable than it has ever been! During your time a straight forward investment in "bullion only ' will far surpass any other asset you could hold!

 

[Red3y3]

Date: Sun Nov 02 1997 21:52
ANOTHER (THOUGHTS!) ID#60253:

Western thought is still linked to gold as a commodity. That thinking is going to change! The world will witness an almost instantaneous run into this commodity the likes of we have never seen before! It will not be "a trading rally" or "a two way street". Bullion will have become a holding for "the lifetime" never to be sold. "Sell and spend everything but not gold"!

Do you think in these terms: "if gold goes up $100+ next week I'll sell my futures, gold stocks and 10 K-rands for a fat profit and laugh all the way to the bank" If the gold market was the same as in the 70s and 80s, that might be a good move. But this market is not the same. The world has changed and left most goldbugs fighting the last war! Only this time they are much smarter and have many more tools to work with. But, what if you do battle with your modern missiles pointing the wrong direction?

For us to understand what is about to happen we must pull our minds out of the paper trading world. Instead enter the world of real things! Here we will see concepts more clearly.

All currencies and most treasury debt are little more than digital units of perceived value. You don't own them, your account is "credited" with this value. Foreign governments, such as Japan are no better off than American citizens, they don't own anything either! What is really owned is "the right to offer what is credited to you, to a bidder in exchange for real things or other credits". It is a strange way to hold wealth. One might say "my net worth is the intention of others to pay me a credit from someone else". This thinking has worked well until the late 80s. It was at this time that a few wealthy and very smart people started to see the end of this. They understood that the US$ was not going to crash, it already had. It, along with all major currencies would lose all sense of value and become only trading digits of account. The treasury debts were little more than the same thing.

You see, all currencies now compete with each other, not for value of wealth but for "USAGE". The game has now become "whose currency gets used the most for trading" not for value against goods! It was easy to know the currency that got used for oil would win this game. Today, all currencies are traded against the dollar for it's usage as a medium of oil exchange! Take away that link and the entire currency/ debt exchange system, as we know it will collapse! The US$ must be maintained as the "most used" if the other currencies are to have a chance to survive.

Will Japan sell US treasury debt and risk taking dollars out of "usage"? Not in your life! Nor will any other CB! They will talk about it. They will sell a little. But sell a lot? It will not happen. You see oil is the key and that connection to the dollar is changing. Foreign CBs will even sell some gold to try and keep the US$ in play ( see my other posts ) . Ever wonder why the US treasury has not sold gold, it would have the opposite effect! The oil that sense the early 70s, held together the world monetary system is now causing it to slide apart! We are not going to see inflation or deflation again. What we are now seeing is the "destruction" of our paper monetary system.

Someone once asked "if the currency/ banking system breaks down, how will we know what gold is worth?". My answer, gold above ground will be worth a lot more than gold below ground, a lot MORE!

 

[Red3y3]

Date: Sat Nov 22 1997 23:32
ANOTHER (THOUGHTS!) ID#60253:

One new day gold will begin a rise that will end it's use as a trading medium. This reevaluation will end a tradition in London. No gold house will make a market that has no sellers, official world gold trade will end for many years! And with it will go the last true value to trade for oil. Oil will skyrocket in all currencies. Those who have metal will learn it's value in oil. All things in life change, the world will not be the same.

 

[Red3y3]

Date: Sun Nov 23 1997 09:18
ANOTHER (THOUGHTS!) ID#60253:

Many wait for the next great bull market in gold to begin before they buy. Why buy now and lose interest or stock market gains? They will miss the greatest investment ever to come in ones lifetime! The powers of this world have already begun this motion. People of simple thought have but to buy physical gold and make low as the financial wars begin! You see, gold was cornered this year. It is done. No Central Bank will sell it's 50, 100, 200 million ozs gold when 600 million is needed! I ask you, how can currency price gold? Indeed, no price will work! You think any form of "paper gold" will stand this fire? Can we do battle with lions? When oil will not take currency without gold the havenots will not sit still!

"When a thousand hungry lions fight over one scrap of food, small dogs should hide with whats in their belly".

A world waits for something to happen that is done.

Read my

Date: Sat Nov 22 1997 23:13
ANOTHER ( THOUGHTS! ) ID#60253:

and

Date: Sat Nov 22 1997 23:32
ANOTHER ( THOUGHTS! ) ID#60253:

then be very sure to read Mr. Mr. Markus Angelicus, on Gold Eagle! Then you will know!

 

[Red3y3]

Anonymous 01/30/19 (Wed) 03:36:3611ce99 No.4962176>>4962200


>>4962096

https://www.tfmetalsreport.com/blog/6887/guest-post-introducing-freegold-torgny-persson-bullion-star
"Introducing FreeGold"

by, Torgny Persson, CEO of BullionStar

What is FreeGold?

FreeGold is not a single theory but an understanding of how past events have formed a gold trail which will significantly change our monetary system in the future. It’s a set of all-encompassing explanations tying together trade and geopolitics with the monetary system. The foundation of the ideas constituting FreeGold was laid by two writers, Another and Friend of Another (FOA) and is built upon today by a third contributor, FOFOA.

One of the key tenets of FreeGold is that the monetary functions of Medium of Exchange (MoE) and Store of Value (SoV) can, should and will split, where:
1. Fiat currency will continue to be used as Medium of Exchange.
2. Gold will be used as Store of Value.

In my previous post, Gold or Fiat? That is the question…, I described how lending expands the money supply, whether in gold or fiat. When savers save in the same medium as is used for the Medium of Exchange, a collapse always follows money expansion.

Under gold standards, fiat and gold are always tied together in some way. Reintroducing gold as the international settlement medium for net debts doesn’t however necessitate fiat to be tied to gold.

Under FreeGold, gold is reintroduced as Store of Value but without being tied to fiat. By using scrip money/fiat/debt for short term settling but using freely floating gold for long term settling, the horrendously skewed trade balances we see today will be a memory of the past. Gold is thus set free from its role as medium of exchange, thus the name “FreeGold”.

Under a FreeGold system, politicians will still be able to overpromise and overspend in the short term but the value of their monetized debt (money) after fiat has hyperinflated, as measured in gold, will be minuscule compared to today.

Debt is the Essence of Fiat

Fiat money is created as debt out of thin air. And there’s a lot of it created.

The US Dollar has already been hyperinflated monetarily but it isn’t visible yet in terms of consumer price inflation as the excess money created has been saved rather than spent on consumption. As long as the (non-US) world is buying roughly the same amount of US Dollar investments as the US trade deficit, there’s no price inflation.

Capital flows can and will turn on a dime though. Just imagine how much (little) the US Dollar would be worth if the US Dollar depreciated to balance the US trade deficit.

The cause of the low price inflation we see today, despite the high monetary inflation, is the hoarding of credit. Credit implies future production revenue. What’s the chance of future production living up to the debt it’s built upon?

Put another way, saving of credit increases the purchasing power of money that isn’t saved. The saved credit causes bubbles whereas price inflation is delayed.

The absence of price inflation is incorrectly interpreted by central banks as too little money supply when there is already too much. Their knee-jerk reaction is to lower interest rates further and inject even more money through QE, thus increasing the underlying problem even more. Banks are complementing this by lowering lending standards to expand their fractional reserve lending as much as possible.

The problem of too much credit competing for a limited pool of credible borrowers can’t be solved by lowering lending standards and flooding the market with even more credit.

The credit must find vehicles to be hoarded into. This is creating massive demand for passive investments without adding any sort of productivity or innovation to the economy – a more realistic determinant of the health of the economy. Instead – to the detriment of the economy – we get bubbles, malinvestment, misallocations, debt saturation and unprofitability. Entrepreneurs which would have been successful in a sound meritocratic economic system are punished. Creating new innovative products have become secondary to putting companies on the investment markets. Companies even operate at a loss just to service debt, often with government stimulus as a substitution for keeping people off the dole.

Hyperdeflationary head fake

Governments around the world are fighting deflation labelled as
…
Hyperinflation is Guaranteed

…

 

[Violette]

Date: Sun Oct 19 1997 09:42
ANOTHER (THOUGHTS!) ID#60253:

There is only one oil state that counts! Only one! They have made it very clear how important gold is to them. If they had started buying outright, gold would have gone to $5,000+ in days. And only a very few million ozs. would have been purchased! The message has been for some years, "we will accumulate thru the back door, using paper deals if you keep the price at or below the cost of production". Do this and oil will remain THE driving force of the world economy!

FAIL THIS AND WE WILL PRICE GOLD IN DOLLARS AT THE TRUE VALUE OF OIL TO THE WORLD!

You see, gold is not a commodity. The CBs have used every weapon to keep it's price low . Understand me, Gold is now, today, a devalued currency being used in world trade!

Do you think the CBs are selling gold to keep the dollar strong? They don't have to sell to accomplish that feat! CB gold ( one billion ozs.? ) valued at it's current commodity price is only worth 300 billion, it's nothing in that price range! They know what it's US$ price is worth in terms of oil! They are not stupid as they show.

You should not think they are dumb! Invest in gold mines, will you? Notice how quick the Australian CB hinted at taking "gold in the ground" if needed. This was said after their sale! The nature of the coming crisis will make the taking of investor property a piece of cake. You see, because gold is a commodity, you will be compensated at the commodity price of return + a fair profit, of course.

How much further can they take this? The world private stockpiles that could be sold have been. The CBs are heavy into their own stuff now and are over their heads if they had to make good on all the private deals ( read my other posts ) . The economic game is ending now and has been from the start of 1997! Watch closely as the world currencies and markets fall one by one. Watch in absolute wonder as the demand for oil plunges and it's price goes thru the roof. Yes, oil stocks will crash with the markets. And gold? You will never know it's price. It will stop all trading as it slices thru $10,000+.

Who am I? As I will not be around for long so I am noone. But, follow with me as all of this takes place in your time!

I don't have time to read more atm but tyvm! Marking my place to come back. As a mutualist (anarchist) politically, this is refreshing. Don't go away too soon whoever you are nobody!

 

[Red3y3]

I don't have time to read more atm but tyvm! Marking my place to come back. As a mutualist (anarchist) politically, this is refreshing. Don't go away too soon whoever you are nobody!

Thanks violette. I hope you get a chance to look into this. Important to digest and fully understand!