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Power of the
Scepter - A word about silver...
Paul had heard that
Roman soldiers were paid in silver, so he began researching
this on the Net. Before long, he found his answer.
Unbelievable. An average Roman soldier was paid about ten
ounces of silver per year in 100 A.D., and they had to pay
for their own uniform, weapons, and rations. Using an
average soldiers salary of forty thousand dollars per year
today, Paul determined that silver was worth four thousand
dollars per ounce in the Roman Empire.
With the discovery of the Americas and the large silver
deposits, silver became more prevalent and the price was
naturally reduced. But Paul was hearing that with the last
fifty years of the technological revolution, above ground
reserves of silver were less than gold; silver was
used up in many
processes such as photography and sophisticated electronic
circuitry, whereas gold was hoarded, often too expensive and
rare to be used in practical applications.
So if analysts said that silver was adjusting for
inflation, Paul wondered, do they mean a return to thousands
of dollars per ounce? And what about the value of gold?
Was it trending to its historical average of sixteen times
the value of silver?
Eye of the
Pyramid - A word about gold...
Excellent Brian, you
have touched on one of the most important things I wanted to
mention. The accounting for our gold assets has been
horrible the last twenty years. Just lately, it has become
drastically worse. About twelve months ago, the gold at West
Point and a few other places was renamed from gold
reserves to custodial gold.
Brian interrupted and asked, Custodial gold, does that
mean someone else owns it?
Good question but it gets even more puzzling. Just six
months ago, it was again renamed, this time from custodial
gold to deep storage gold.
Deep storage gold? That sounds like an odd choice of
words. Maybe it means it hasnt been mined yet. Then, what
happened to our gold reserves?
Chris responded, All right. I see you are getting a
sense of the same questions I have. Formal enquiries from
this office have so far met with resistance. It is as if
someone is trying to stall us.
There is one more thing. My office has recently
become aware of a one hundred billion dollar transaction
involving the Federal Reserve and an offshore bank. It has
really been a series of transactions over the last ten
years. It may be innocent but once again, our enquiries have
gone unanswered. The Reserve certainly doesnt tell us
everything about their day-to-day activity. However, when
taken together with our gold discussion, I think you can see
that some questions need to be answered.
Power of the
Scepter - A word about manipulation...
With a nod from Helop,
Jackson picked up the conversation. We have been accruing
large short positions on the metals, the source of our
growing losses. In the last several trading days, however,
we have almost doubled our net short position on both the
COMEX and the TOCOM the Japanese futures exchange. If we
could muster enough selling pressure, we could get the hedge
funds and the small traders to sell off their long
positions, causing a significant downward spiral. Then, if
we could close out most of our short positions at two
dollars under current market for silver and fifty dollars
under market for gold, our reporting losses would be nominal
and not raise any eyebrows. Jackson paused, staring at Sir
Markham and obviously waiting for some response.
Sir Markham did not receive control of the Societys
interests in England by making slow assessments of complex
issues; he knew exactly where the conversation was leading.
Although still fighting to purge his mind from the painful
images of his recent ordeal, he was able to muster some
cogent comments directed towards Jackson. Obviously, the
one starting the longs running for cover cant be your
group, as this would simply dig you a deeper hole. We both
know the precious metals are going to explode upwards in
price once we step out of the exchanges. So you want my
banking interests in the Caribbean to step up. Of course,
then these offshore banks will be left holding the bag when
you cover your short positions and leave these markets for
good.
Helop offered the denouement. Yes, the losses will be
transferred to the Caribbean banks. But either we will
default on our obligation to deliver the metals and close
our doors, or we will force the counterparties to accept ten
cents on the dollar. As a worst case, we will just run the
printing presses in Europe and offer them full value of
paper for the metal. |
