|
For Zorro
"Nor
shall he meanwhile suffer any evil or harm,
until he sets foot upon his own land; but thereafter he shall suffer
whatever
Fate and the dread Spinners spun with their thread for him at
his birth, when his mother bore him." [1]
Abstract
For
those who say that market intervention and manipulation does not occur,
they are either deaf, dumb, blind, or all three: the proverbial monkey
who hears no evil, sees no evil, and speaks no evil – oh how I wish it
were so. Perhaps one day soon it will be. Until then we remain
undaunted, ever vigilante, at our post.
Questions
often asked: who would intervene in the market? Why would they intervene
in the market? How could they intervene in the market? Even if they did
intervene would what they do actually manipulate the market? How could
this go undetected?
Is
there any precedent of market intervention and manipulation in the past
that would exhibit that such a pattern of behavior has previously
occurred and is therefore reasonably probable or at the least –
possible?
Precedents
We
will site ten (10) examples, as that is the number of appendages by
which we grasp, whatever it is that we seek.
Daniel
Drew
 “In
1857, Drew became a member of the board of directors of the Erie
Railroad and used his position to manipulate the firm's stock price.
“In
1864, Drew once again struggled with Vanderbilt, speculating on the
stock of the Harlem Railroad. Drew was selling the stock short, but
Vanderbilt and his associates bought every share he sold, ultimately
causing the stock price to rise from 90 to 285 in five months. Drew lost
$500,000.
Daniel
Drew>>>>
In
1866-1868, Drew engaged in the Erie War, in which Drew conspired along
with James Fisk (financier) and Jay Gould to issue fraudulent stock to
keep Vanderbilt from
gaining control of the Erie Railroad. Vanderbilt sustained heavy losses
and conceded control of the railroad to the trio.
In
1870, Fisk and Gould betrayed Drew, manipulating the stock price of the
Erie Railroad and causing him to lose $1.5 million. The Panic of 1873
cost him still more, and by 1876, Drew filed for bankruptcy, with debts
exceeding a million dollars and no viable assets. He died in 1879,
dependent on his son for support.”
[2]
James
Fisk
 “In
1864 he became a stockbroker in New York and was employed by Daniel Drew
as a buyer. He aided Drew in his war against Cornelius Vanderbilt for
control of the Erie Railroad, which resulted in Fisk and Jay Gould
becoming members of the Erie directorate. Subsequently, a well-planned
raid netted Fisk and Gould control of the railroad.
James
Fisk>>>>
The
association with Gould continued until his death. They carried financial
buccaneering to extremes, their program including open alliance with
Boss Tweed, the wholesale bribery of legislatures, and the buying of
judges.
Their
attempt to corner the gold market culminated in the fateful Black Friday
of September 24, 1869.
It
was during the same period that Gould and James Fisk became involved
with Tammany Hall; they made Boss Tweed a director of the Erie, and
Tweed, in turn, arranged favorable legislation for them. Tweed and Gould
became the subjects of political cartoons by Thomas Nast in 1869. In
October 1871, when Tweed was held on $1 million bail, Gould was the
chief bondsman.” [3]
 Black
Friday
“In
August 1869, Gould and Fisk began to buy gold in an attempt to corner
the market, hoping that the increase in price of gold would increase the
price of wheat such that western farmers would sell, causing a great
amount of shipping of breadstuffs eastward, increasing freight business
for the Erie railroad.
During
this time, Gould used contacts with President Ulysses S. Grant's
brother-in-law, A.H. Corbin, to try to influence the president and his
Secretary General Horace Porter.
These
speculations in gold culminated in the panic of Black Friday, on
September 24, 1869, when the premium over face value on a gold Double
Eagle fell from 62% to 35%. Gould made a nominal profit from this
operation, but lost it in the subsequent lawsuits. The affair also cost
him his reputation.” [4]
<<<<Jay
Gould
John
Rockefeller
 “By
1896, Rockefeller had shed most of his day-to-day involvement in the
affairs of Standard Oil, though he retained his title as president until
1911.
On
May 15, 1911, the Supreme Court of the United States held that Standard
Oil, which by then still held a 64% market share, originated in illegal
monopoly practices and ordered it to be broken up into 34 new
companies.” [5]
John
D. Rockefeller>>>>
Richard
Whitney
“Was
an American financier, president of the New York Stock Exchange
1930-1935, and a convicted embezzler. After obtaining loans from as many
people as he could, Richard Whitney turned to embezzlement to cover his
mounting business losses and to maintain his extravagant lifestyle. He
stole funds from the New York Stock Exchange Gratuity Fund as well as
from the New York Yacht Club where he served as the Treasurer. In
addition, he stole $800,000 worth of bonds from his father-in-law's
estate.
However,
the Pecora Commission uncovered a wide range of abusive practices
on the part of banks and bank affiliates and initiated a major process
for reform of the American financial system that saw the U.S. Congress
pass the Securities Act of 1933 and the Securities Exchange Act of 1934
as well as the 1935 formation of the U.S. Securities and Exchange
Commission as a mechanism to enforce the provisions of the new Acts.
While the new legislation made stock manipulation illegal, Whitney and
others were successful in keeping short selling, a market tool that U.S.
President Herbert Hoover had wanted banned.” [6]
Boss
Tweed
 “William
Marcy Tweed (April 3, 1823–April 12, 1878), commonly known as Boss
Tweed, or "The Big Dog," was an American politician and
political boss of Tammany Hall who became an icon of urban political
machines. Tweed and his cronies became known as the Tweed Ring. Tweed's
political machine gained numerous offices in New York City, and even to
the state legislature and judges' seats, often through illegal means.
Boss
Tweed >>>
From
1860–1870, Tweed controlled almost every single United States
Democratic Party nomination for the city and the state.
In
April 1870, at the age of 47, Tweed secured the passage of a city
charter putting the control of the city into the hands of the mayor (A.
Oakey Hall), the comptroller, and the commissioners of parks and public
works. He then set about to plunder the city. The total amount of money
stolen was never known, but was estimated to be about $200
million.
In
October 1871, when Tweed was held on $1,000,000 (USD) bail, Jay Gould
was the chief bondsman. The efforts of political reformers William H.
Wickham (1875 New York City mayor) and Samuel J. Tilden (later 1876
Democratic presidential nominee) resulted in Tweed's trial and
conviction in 1873. He was given a 12-year prison sentence, which was
reduced by a higher court and he served one year.” [6]
J.P.
Morgan
Brandeis'
main point of contention was that the large banking houses were
colluding with businessmen to create trusts in America's major
industries. The trusts not only strangled the competition, but they also
became so large that they no longer operated efficiently.
Brandeis
backed up his arguments with huge amounts of facts and data amassed
during his battles with J. P. Morgan and Charles Mellon in the New Haven
Railroad merger case and from the Pujo Committee Hearings - a
House committee report that investigated the abuses of the "Money
Trust."
President
Wilson, when Governor, made the following speech in 1911:
 <<<<
J.P. Morgan
"The
great monopoly in this country is the money monopoly. So long as that
exists, our old variety and freedom and individual energy of development
are out of the question. A great industrial nation is controlled by its
system of credit. Our system of credit is concentrated.
The
growth of the nation, therefore, and all our activities are in the hands
of a few men, who, even if their actions be honest and intended for the
public interest, are necessarily concentrated upon the great
undertakings in which their own money is involved and who, necessarily,
by every reason of their own limitations, chill and check and destroy
genuine economic freedom.
This
is the greatest question of all; and to this, statesmen must address
themselves with an earnest determination to serve the long future and
the true liberties of men." [7]
The
Pujo Committee—appointed
in 1912—found:
"Far
more dangerous than all that has happened to us in the past in the way
of elimination of competition in industry is the control of credit
through the domination of these groups over our banks and
industries."...
“The
Pujo Committee, a subcommittee of
the House Banking and Currency committee was created with the mandate to
investigate what was referred to as the Money Trust: an elite group of
well connected investment bankers and other financiers that were said to
run the entire country.” [8]
Supreme
Court Justice Louis D. Brandeis wrote a book about the entire issued
called Other People’s Money. All of the extracts
presented here are from his work.
As
the Honorable Justice most eloquently stated:
“The
facts, which the Pujo Investigating Committee and its able Counsel, Mr.
Samuel Untermyer, have laid before the country, show clearly the means
by which a few men control the business of America. The report proposes
measures, which promise some relief. Additional remedies will be
proposed. Congress will soon be called upon to act.
How
shall the emancipation be wrought? On what lines shall we proceed? The
facts, when fully understood, will teach us.” [9]
The
Facts
“But
wealth expressed in figures gives a wholly inadequate picture of the
allies' power. Their wealth is dynamic. It is wielded by geniuses in
combination. It finds its proper expression in means of control. To
comprehend the power of the allies we must try to visualize the
ramifications through which the forces operate.
Mr.
Baker is a director in 22 corporations having, with their many
subsidiaries, aggregate resources or capitalization of $7,272,000,000.
But the direct and visible power of the First National Bank, which Mr.
Baker dominates, extends further.
The
Pujo report shows that its directors are directors in at least 27 other
corporations with resources of $4,270,000,000. That is, the First
National is represented in 49 corporations, with aggregate resources or
capitalization of $11,542,000,000.
1.
Banks, Trust, and Life Insurance Companies: First National
Bank of New York; National Bank of Commerce; Farmers' Loan and Trust
Company; Mutual Life Insurance Company.
2.
Railroad Companies: New York Central Lines; New Haven,
Reading, Erie, Lackawanna, Lehigh Valley, Southern, Northern Pacific,
Chicago, Burlington & Quincy.
3.
Public Service Corporations: American Telegraph &
Telephone Company, Adams Express Company.
4.
Industrial Corporations: United States Steel Corporation,
Pullman Company
Mr.
Stillman is a director in only 7 corporations, with aggregate assets of
$2,476,000,000; but the directors in the National City Bank, which he
dominates, are directors in at least 41 other corporations, which, with
their subsidiaries, have an aggregate capitalization or resources of
$10,564,000,000.
The
members of the firm of J. P, Morgan & Co., the acknowledged leader
of the allied forces, hold 72 directorships in 47 of the largest
corporations of the country.
The
Pujo Committee finds that the members of J. P. Morgan & Co. and the
directors of their controlled trust companies and of the First National
and the National City Bank together hold:
One
hundred and eighteen directorships in 34 banks and trust companies
having total resources of $2,679,000,000 and total deposits of
$1,983,000,000. Thirty directorships in 10 insurance companies having
total assets of $2,293,000,000.
One
hundred and five directorships in 32 transportation systems having a
total capitalization of $11,784,000,000 and a total mileage (excluding
express companies and steamship lines) of 150,200.
Sixty-three
directorships in 24 producing and trading corporations having a total
capitalization of $3,339,000,000.
Twenty-five
directorships in 12 public-utility corporations having a total
capitalization of $2,150,000,000.
In
all, 341 directorships in 112 corporations having aggregate resources or
capitalization of $22,245,000,000
The
real managing directors of the New Haven system during the decade of its
decline were: J. Piermont Morgan, George F. Baker, and William
Rockefeller. Mr. Morgan was, until his death in 1913, the head of
perhaps the largest banking house in the world.
Mr.
Baker was, until 1909, President and then Chairman of the Board of
Directors of one of America's leading banks (the First National of New
York), and Mr. Rockefeller was, until 1911, President of the Standard
Oil Company.
Each
was well advanced in years. Yet each of these men, besides the duties of
his own vast business, and important private interests, undertook to
"guide, superintend, govern and manage," not only the New
Haven but also the following other corporations, some of which were
similarly complex: Mr. Morgan, 48 corporations, including 40 railroad
corporations, with at least 100 subsidiary companies, and 16,000 miles
of line; 3 banks and trust or insurance companies; 5 industrial and
public service companies.
Mr.
Baker, 48 corporations, including 15 railroad corporations, with at
least 158 subsidiaries; and 37,400 miles of track; 18 banks, and trust
or insurance companies; 15 public-service corporations and industrial
concerns. Mr. Rockefeller, 37 corporations, including 23 railroad
corporations with at least 117 subsidiary companies, and 26,400 miles of
line; 5 banks, trust or insurance companies; 9 public service companies
and industrial concerns.” [10]
President
Woodrow Wilson
President
Woodrow Wilson when asked during a press conference about the Money
Trust replied:
"No
country can afford to have its prosperity originated by a small
controlling class. The treasury of America does not lie in the brains of
the small body of men now in control of the great enterprises… It
depends upon the inventions of unknown men, upon the originations of
unknown men, upon the ambitions of unknown men. Every country is renewed
out of the ranks of the unknown, not out of the ranks of the already
famous and powerful in control." [11]
Gold
Confiscation
Last
week in our article Gold
Wars: Gibson's Paradox and the Gold Standard
we said:
“President
Roosevelt confiscated all of the people’s gold under the Trading with
the Enemy Act, which comes from The
War Powers Resolution.
At the time, the United States was not
at war with any foreign countries, which by process of elimination
leaves only one other party mentioned in the act: We The People. See
Presidential
Executive Order 6102.
Subsequent
legislation: Emergency
Banking Relief Act of 1933 US Statutes at Large
also made it illegal for private
citizens of the United States to own gold.
The
so-called dollar price of one ounce of gold increased from $20.67 to $35
dollars per ounce. This is a 69% devaluation of the dollar in one swell
swoop. See Presidential
Proclamation (no. 2072) of Franklin D ...The Gold Reserve Act.”
[12]
The
Hunt Brothers
“Nelson
Bunker and brother William Herbert Hunt, together with two wealthy Arab
investors, formed a company called International Metals Investment
Company Ltd. with the intent of cornering the world silver market.
Through their brokers on the Commodity Exchange (COMEX), Alvin Brodsky
and Mark Denberg, they quickly amassed more than 200 million ounces of
silver, equivalent to half the world's deliverable supply. When the Hunt
brothers began accumulating silver in 1973 the price was $1.95 per
ounce. Early in 1979 the price was about $5, and in 1980 the price
peaked at $49.45 per ounce.
Once
the silver market was cornered, outsiders joined the chase but a
combination of changed trading rules on the
New York Metals Market (COMEX) and the intervention of the Federal
Reserve put an end to the game. The price began to slide,
culminating in a 50% one-day decline, known as Silver Thursday, on March
27, 1980 as the price plummeted from $21.62 to $10.80.” [13]
“An
alliance between the central banks of Britain, Belgium, France, Italy,
the Netherlands, Switzerland, the United States and West Germany from
1961 to 1968 to try to maintain the gold price at $35 an ounce.” [14]
“The
Bank of England operated for the pool through a direct line to the
fixing in London, selling from their combined reserves if the price
threatened to breach $35.20 and buying back for the pool account when it
was weak.
The
pool finally collapsed in March 1968 when the run on gold, after the Tet
offensive in Vietnam undermined confidence in the dollar, overwhelmed
its resources. The pool lost nearly 3,000 tonnes (96 million ounces) of
its combined reserve of 24,000 tonnes (772 million ounces), including
1,000 tonnes (32 million ounces) between 8 and 15 March 1968, when the
London gold market was closed temporarily. When it re-opened two weeks,
later the pool had been disbanded and gold was left free to find its own
level.” [15]
Exchange
Stabilization Fund
J.
Virgil Mattingly’s 1995 statement to the FOMC:
“It's
pretty clear that these ESF (exchange stabilizing fund) operations are
authorized. I don't think there is a legal problem in terms of the
authority. The statute [31 U.S.C. s. 5302] is very broadly worded in
terms of words like 'credit' -- it has covered things like the gold
swaps -- and it confers broad authority.” [16]
US
TREASURY EXCHANGE STABILIZATION FUND
Introduction
“The
Exchange Stabilization Fund (ESF) consists of three types of assets:
U.S. dollars, foreign currencies, and Special Drawing Rights (SDRs)
Currently, the ESF has approximately $38 billion in these three assets.
The
ESF can be used to purchase or sell foreign currencies, to hold U.S.
foreign exchange and Special Drawing Rights (SDR) assets, and to provide
financing to foreign governments. All operations of the ESF require the
explicit authorization of the Secretary of the Treasury ("the
Secretary").
The
Secretary is responsible for the formulation and implementation of U.S.
international monetary and financial policy, including exchange market
intervention policy. The ESF helps the Secretary to carry out these
responsibilities. By law, the Secretary has considerable discretion in
the use of ESF resources.
The
legal basis of the ESF is the Gold Reserve Act of 1934. As amended in
the late 1970s, the Act provides in part that "the Department of
the Treasury has a stabilization fund …Consistent with the obligations
of the Government in the International Monetary Fund (IMF) on orderly
exchange arrangements and an orderly system of exchange rates, the
Secretary …, with the approval of the President, may deal
in gold, foreign exchange, and other instruments of credit and
securities." [17]
I
guess the part that reads “exchange market intervention”
would come under the heading of this paper: Gold Wars
Intervention & Manipulation.
I am
a bit perplexed on the part that says: “consistent with the
obligations of the Government in the International Monetary Fund...”
the Secretary “may deal (interesting choice of words) in gold,
foreign exchange, and other instruments of credit and securities.”
That
almost sounds like our Secretary does deals in gold, foreign exchange,
and other instruments of credit and securities to keep the International
Monetary Fund obliged, which begs the question: obliged how, by what
means, and to what extent – and for what purpose? Cui Bono?
The
Plunge Protection Team
For
those who have not heard of the plunge protection team we offer the
following Presidential Executive Order that created the
“team”.
For
further elucidation we recommend: washingtonpost.com:
Plunge Protection Team and
US
Treasury - Office of Domestic Finance
Executive
Order 12631 -- Working Group on Financial Markets
March
18, 1988
By
virtue of the authority vested in me as President by the Constitution
and laws of the United States of America, and in order to establish a
Working Group on Financial Markets, it is hereby ordered as follows: (it
is highly questionable if the Constitution vests any authority for such
action – comment mine)
Section
1. Establishment.
(a) There is hereby established a Working Group on Financial Markets
(Working Group). The Working Group shall be composed of:
(1)
The Secretary of the Treasury, or his designee;
(2)
The Chairman of the Board of Governors of the Federal Reserve System, or
his designee;
(3)
The Chairman of the Securities and Exchange Commission, or his designee;
and
(4)
The Chairman of the Commodity Futures Trading Commission, or her
designee.
(b)
The Secretary of the Treasury, or his designee, shall be the Chairman of
the Working Group.
Sec.
2. Purposes and Functions.
(a) Recognizing the goals of enhancing the integrity, efficiency,
orderliness, and competitiveness of our Nation's financial markets and
maintaining investor confidence, the Working Group shall identify and
consider:
(1)
the major issues raised by the numerous studies on the events in the
financial markets surrounding October 19, 1987, and any of those
recommendations that have the potential to achieve the goals noted
above; and
(2)
the actions, including governmental actions under existing laws and
regulations (such as policy coordination and contingency planning) that
are appropriate to carry out these recommendations.
(b)
The Working Group shall consult, as appropriate, with representatives of
the various exchanges, clearinghouses, self-regulatory bodies, and with
major market participants to determine private sector solutions wherever
possible.
(c)
The Working Group shall report to the President initially within 60 days
(and periodically thereafter) on its progress and, if appropriate, its
views on any recommended legislative changes.
Sec.
3. Administration.
(a) The heads of Executive departments, agencies, and independent
instrumentalities shall, to the extent permitted by law, provide the
Working Group such information as it may require for the purpose of
carrying out this Order.
(b)
Members of the Working Group shall serve without additional compensation
for their work on the Working Group.
(c)
To the extent permitted by law and subject to the availability of funds
therefore, the Department of the Treasury shall provide the Working
Group with such administrative and support services as may be necessary
for the performance of its functions.
Ronald
Reagan
The
White House,
March
18, 1988.
[Filed
with the Office of the Federal Register, 11:23 a.m., March 21, 1988] [18]
The
Present & The Future
The
following is from a recent speech by William R. White, Economic Adviser
and Head of the Monetary and Economic Department at the Bank for
International Settlements (BIS):
“Fourth,
the efficient international dissemination of both ideas and information
that can improve national policymaking. And last, the provision of
international credits and joint efforts to influence asset prices (especially
gold and foreign exchange) in circumstances where this
might be thought useful. [Emphasis added by author.] [19]
For a
much more detailed analysis than can be presented here, we suggest the
unsurpassed work by the members of GATA (Gold Anti-Trust Action
Committee) headed by Bill Murphy and Chris Powell, with one of the
greatest legal minds extent: Reggie Howe and the number one
interventional analyst – Michael Bolser: Interventional
Analysis: A New Investment Perspective.
Very
few understand what these gentlemen know – and usually they are on the
other side. We are fortunate to have them on our side – the side of We
The People.
For
the full story see: Now
They Tell Us: BIS Confirms Rigging Gold Prices at
the GoldenSextant
website, and further detailed analysis at www.gata.org.
And www.lemetropole.com.
For a
different type of analysis found anywhere, see Interventional
Analysis: A New Investment Perspective by
Michael Bolser. He goes where few dare to tread.
Testimony
to a Gold Warrior
Ferdinand
Lips was a gold warrior of the highest caliber. He understood the moral
and spiritual aspects of Honest Money of Gold and Silver Coin – of
Honest Weights & Measures.
In
1987, he opened his own Bank in Zurich. He retired in 1988 to dedicate
his life to the cause of Honest Money. He was a Trustee of The
Foundation for the Advancement of Monetary Education.
Mr.
Lips wielded a mighty pen in reply to the forces aligned against gold:
writing three books on gold – The last being his masterpiece: Gold
Wars. Recently Ferdinand passed to the other side. All will miss him. He
was an honorable and gracious man.
We
would like to quote a story of Ferdinand’s from his book Gold Wars, as
it cuts right to the bone.
“On
February 6, 1996, I visited J. Aron & Co. a well-established bullion
firm in London. It is a subsidiary of the prestigious Wall Street firm
Goldman, Sachs & Company. Robert Rubin, its former CEO, was serving
as U.S. Secretary of the Treasury at the time.
I
had a meeting that day with Neil R. Newitt, Managing Director, and
Philip Culliford, Executive Director...Newitt was outright bearish on
gold and said that the central banks would stop any increase in the
price of gold. Having been active in the gold market since 1968, he was
in regular contact with central banks and seemed to know what he was
talking about.
The
conclusion drawn from the discussion was that there could be no doubt
that the central banks were controlling prices.
Afterwards, I visited Deutsche Morgan Grenfell where Robert
Weinberg told me that the firm of J. Aron was a very active in
forward sales by gold mining companies.
One
result of my visit, however, was that I realized that the gentlemen at
J. Aron, who were acting for central banks, undoubtedly had better
information and advance knowledge that easily could be exploited. What I
did not yet realize was that these were
the people who actually advised the central banks.
And
so I found out, unfortunately belatedly, who had the biggest interest in
keeping the gold price down, or at least unchanged. It was not the
central banks – it was the bullion
banks. In the end, it is the banks that are in control of
the monetary system. They are the monetary system. [20]
So
here, we witness first hand evidence that the gold bullion
banks that specialize in gold bullion are deeply involved
with all things bullion –
including the short selling of a commodity of production in the
marketplace.
Common
sense alone offers the same result, providing both a fascinating and
most telling display of the reality of the dog eat dog business world of
gold – all in search of profit, whatever the cost, whomever stands in
the way. Collateral damage does not appear to be in term in their
vocabulary.
Nobel
Prize Laureate Speaks Out
The
following is from Gold Wars by Mr. Lips.
At a
conference organized by the World Gold Council in Paris on November 19,
1999, Robert Mundell, Professor at Columbia University and 1999 Nobel
Prize Laureate in Economics, made the following remarks during the
question and answer session after his speech on “The International
Monetary System at the Turn of the Millennium”:
‘Gold
is subject to a lot of elements of instability, not the least of which
is the attempt on the part of several big governments to make it
unstable. [...] If you notice what happened in the past 20 years in
government policy in respect to gold, nobody sold gold when the price
was soaring to $800 an ounce. It would have been a good deal and it
would have been stabilizing if they would have done so. But people sell
it when it hits bottom; the British have been selling gold now that it
seems to have hit the very bottom. That element – governments selling
when the price is low or not selling when the price is high – makes it
destabilizing. Governments should [...] buy low and sell high.” [21]
Ferdinand
then asks a very logical question: what are governments trying to
achieve if they are guilty of destabilizing or capping the price of gold
– what some would call manipulation by intervention, others have less
polite names for it.
As we
have repeatedly said – paper fiat debt-money rests upon a foundation
of illusion, delusion, and deception. It will only last as long as the
people have confidence that the funny money remains accepted as the
medium of exchange.
If
the con-fi-dence in the currency wanes, the acceptance of the money disappears
and with the non-acceptance the end of the currency occurs. Such has
been the history of all paper fiat debt-money.
Gold
is the Sovereign of Sovereigns or as J.P. Morgan answered when ask
during the Pujo Hearings what the role of gold was in the financial
system and if it could be a source of problems:
“Gold
is money, and nothing else.” [22]
In
other words, to perpetuate the illusion that paper fiat debt-money is a
sound and stable currency, the sentinel of Honest Money: Gold must be
hushed and kept quite.
Gold
is a barometer of funny money when allowed to function according to free
market dynamics. It will spike a rising temperature in a minute –
warning all of the debasement of paper fiat debt-money.
Nevertheless,
if subjected to intervention and manipulation gold’s warning appears
less noticeable yet, those who listen hear – and will increasingly
hear – the crying out from the watchtower.
“When
Gold Speaks – All Tongues Are Silent.”
[23]
Conclusion
Clearly
more than adequate precedent has been established. The evidence
presented appears irreproachable. The verdict we leave to the reader’s
discretion and sense of justice. The rest we will leave to the judgment
of providence, in the balance forged by time.
"We
claim to be just and upright.
No
wrath from us will come stealthily to the one
who
holds out clean hands, and he will go through life unharmed;
but whoever sins and hides his blood-stained hands, as avengers of
bloodshed we
appear against him to the end, presenting ourselves
as upright witnesses for the dead." [24]
© 2006 Douglas V. Gnazzo
All Rights Reserved
References
[1]
Alcinous on Odysseus. Homer, Odyssey 7.195
[2]
Wikipedia
[3]
Wikipedia
[4]
Wikipedia
[5]
Wikipedia
[6]
Wikipedia
[7]
President Wilson Other
People's Money and How the Bankers Use It
[8]
Other
People's Money and How the Bankers Use It by Justice Louis
Brandeis
[9]
Same
[10]
Other
People's Money and How the Bankers Use It.
[11]
President Wilson in Other
People's Money and How the Bankers Use It
[12]
Gold
Wars: Gibson's Paradox and the Gold Standard
[13]
Wikipedia
[14]
The London Bullion Market
Association
[15]
Gold
Pool
[16]
Gold
Wars: Gibson's Paradox and the Gold Standard
[17]
US
Treasury - Exchange Stabilization Fund
[18]
Executive
Order 12631 -- Working Group on Financial Markets
[19]
BIS
Paper No. 27, Past and Future of Central Bank Cooperation
[20]
Gold Wars by Ferdinand Lips pages 123-125
[21]
Same pg. 125
[22]
J.P. Morgan 1913 Pugo Hearings – Gold & Liberty and Gold Wars
[23]
Family Proverb From Italy
[24]
Alcinous on Odysseus.
Homer, Odyssey
7.195
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