You should ask Congress to give you the same option for your own transactions. Otherwise, you risk losing everything you’ve worked for.

Send another letter to Congress asking them to repeal the legal tender law that forces you to do business ONLY in Federal Reserve Notes. In your personal comments use the latest news about countries dropping the dollar for oil transactions.

Here’s what I wrote in my letter to Congress . . .

Several countries are making plans to stop using Federal Reserve Notes for oil purchases. I want the same freedom for my personal transactions.

The Fed has nearly doubled the money supply since last Fall. This will cut the future value of my savings in half and send my cost of living through the roof. Add to that . . .

* The $100 trillion in unfunded liabilities for Social Security and Medicare
* Your big bailout schemes,
* Your so-called stimulus package,
* Your cap and trade boondoggle,
* Your disastrous healthcare plans, and the result is . . .

I see no hope for the dollar. You guys have ruined our currency, and I WANT OUT.

If foreigners can stop using Federal Reserve Notes, I should have the same freedom. Why should foreigners have more right to control their own economic destiny than I do?

Many in Washington claim they want to protect the Fed’s independence. What about my independence? I just want you to repeal the legal tender law so I can use forms of money other than Federal Reserve Notes (like gold and silver for instance). Doing this would also moderate the Fed’s behavior. If they want me to keep using Federal Reserve Notes then they’ll have to stop their legalized counterfeiting activities.

Please represent me. Break the Federal Reserve’s money monopoly. Give me the same right that foreigners have.

You can send your own letter to Congress using DownsizeDC.org’s Educate the Powerful System.

Jim Babka, President
DownsizeDC.org, Inc.

Resources:

* A news report on plans to stop using the dollar for oil purchases
* The Federal Reserve’s report on the expanding size of the money supply
* Brother Can You Spare a FRAUD? (Federal Reserve Accounting Unit, the Dollar)

D o w n s i z e r – D i s p a t c h
is the official email list of DownsizeDC.org, Inc.

& Downsize DC Foundation

I apologize for the poor audio, but that’s how the stream came across.

by Jake, the Champion of the Constitution
Originally published on Sunday, March 29, 2009 at http://www.nolanchart.com/article6226.html

This article and charts is an update to an earlier article “18 Days and Counting – Silver Backwardation Persists in the London Market Place“. In “Silver and Gold ARE Money (PART 1/2)“, I charged that both silver and gold are money and shared information on the very important concept of gold’s “stocks-to-flow” ratio and the size of the LBMA markets for both metals.

[In case you do not yet understand futures markets, "backwardation" means that silver to be delivered today is now being priced higher than metal to be delivered later. This article refers to the LBMA, or London Bullion Market Association's futures market in London, England. For more details on backwardation, please refer to my five-part December series which starts here "The End for the Dollar and all Fiat Currencies (1/5)". Contango is the opposite of backwardation and exists when futures price is higher than the spot price as I explained for those new to futures terminology here "The Money Matrix - What the Heck Are Derivatives? (PART 10/15)". [As you read, please also note that I am NOT a commodities trader, I am just an engineer by trade, so feel free to help me out with my analysis or mistakes.] ( Photo) (2)

As we learned in “The Significance of Gold Backwardation Explained (4/5)“, backwardation is a sign of a very tight market, and a market that will be tight for sometime into the future either 1) current supply is very tight, 2) future supply is projected to be very tight, or 3) there is a severe distrust in counterparties that the short positions can deliver the goods on time per the contract, or vice versa that the long positions will not have the cash.

Please refer to the below graphs of LBMA’s silver mid rate, which is the midway point between the bid and offer prices. Here is what I note:

• Silver was in backwardation for the 47 trading days since January 21. On March 27, silver finally dipped out of backwardation.
• Most of this backwardation period was about three times more severe than the mild backwardation than existed from December 8 through December 24 in 2008.
• Although this backwardation was very long – most likely the longest in LBMA history – it was relatively mild. The 1-month contract was the most severe, but its average level of backwardation was only -0.20%, or about $3 USD per 1000 oz bar.
• Also, the disparity between the rates seen in 2006-2007 has largely disappeared; the market appears to be treating a trade on silver 12 months later as quite similar to a trade on silver 1 month later.

[All graphs in this article were created by me from this LBMA source and this US Mint source and my file is available by request.]

Let’s now also look at the LBMA Silver Fix price history for a 1000 troy ounce bar. Despite all of the tightness in the market as demonstrated by the SIFO chart, the Dollar price of silver is still well below the average price for 2006-2008, while the Pound is nearing a new high due to the FOREX market. The Pound price reached £995 within 5% of its March 2008 high. The current dollar price of $13.22/oz. is 37% below its $20.92/oz. high. From the chart, I speculate the Pound price may have been surreptitiously “capped” at £1000, or perhaps is a psychological barrier, similar to gold’s three recent tries at $1000/oz.

Let’s now take a quicker look at gold traded at LBMA. The GOFO, or Gold Forward Offered Rate, represents the rates at which dealers will lend gold on a swap basis against US dollars. From the below charts, I note:

• Recently, gold has only gone into minor backwardation once, in November 2008, for 3 days.
• As GOFO started its plummet in roughly September 2007, the prices began to diverge, and currently the 1-month GOFO rate is lower than the 12-month rate.
• The buckling of the British pound can be easily seen. The British pound set an all-time high of £690 per ounce of gold on February 23, 2009.
• The Euro set an all-time high of 782 Euros per ounce of gold on February 23, 2009 as well.
• Gold priced in Dollars is 10% below its 2008 high of $1,023, as of March 27.

It is simply too early to tell if we have seen the “Last Contango,” but as Dr. Fekete notes in “The Last Contango in Washington” (2006) and “Keeping Our Eyes Peeled for the Silver and Gold Basis” (2007), the consequences could be very stark for the dollar and hence all fiat currencies.

Now, of course, there are many other factors as silver guru Theodore Butler points out in “Tightening Production“. Industrial demand has been slammed by the economic fallout. However, since about 70% of all silver is typically mined as a by-product with other base metals like zinc, the supply is also greatly affected by the market conditions of zinc, copper, lead, and nickel. While the backlog in demand has greatly increased the inventories of these base metals causing a drop in their prices the inventory of silver is growing smaller while the price has increased over the past three months from $10 to $13/oz. Butler also relates that many of the base metal mines have been closing due since they are no longer profitable. At the same time, Butler reports that the American COMEX silver futures market is under investigation by the CFTC (Commodities and Futures Trading Commission) for market manipulation and price suppression. It is also possible the London market backwardation is temporary due to the severe loss of purchasing power (relative to others) of the British pound.

[For the Reader, NYMEX Gold Session Futures chart, Silver Session Futures chart. Gold spot price chart. Silver spot price chart. When the spot price is greater than the futures price, backwardation exists.]

There is some debate about whether backwardation is bullish for gold and silver. Due to the aboveground stocks-to-flow ratio of 60 years stock to 1 year of mine production, I maintain that LBMA backwardation in gold in is not only a bullish signal, but, more importantly it is blaring siren signaling trust in the Dollar is being lost. Since the aboveground stocks-to-flow ratio of silver (1.5) is more typical of other commodities and industrial metals, LBMA silver backwardation is also bullish, for the commodity but may not be as relevant to the Dollar unless the reasons for the backwardation are clearly understood. Up to roughly 12%, or 81 million troy ounces of silver are currented effected by strikes or slowdowns at Penoles, Hochschild’s, and Doe Run. As an amateur, I do not claim to know to what degree each of the aforementioned three possible causes (tight current supply, tight future supply, or counterparty distrust) effected the backwardation although the Pound’s recent relative devaluation and possible “capping” at £1000.  My educated guess is tight future supply combined with FOREX declines are the dominant factors, but I please remember I also subscribe to the price suppression theories of GATA and Ted Butler.  However we can look at what happened to the price of silver and gold during each of the three backwardation periods from 2006-2009 and we can see that backwardation has caused significant increases each time.

In addition to the annual supply-demand figures put together by the World Gold Council and the Silver Institute, another interesting item is US Mint-issued gold and silver bullion sales. As can be seen by the below, the 2008 gold demand quadrupled from its 2007 level, while silver demand doubled. In 2009 YTD, gold is on track to beat the 2008 mark, and silver demand is on track for roughly 24 million ounces, which would shatter its 2008 record level.

The inventory of SLV has leapt from 218 million ounces since January 1st, and reached 267 million ounces on March 26. This exceeds the limit of 264 Moz that the trust had set for the custodian, JP MorganChase (one of the “Pirates of the COMEX” as GATA’s Adrian Douglas recently wrote about here). In the new prospectus (pg 8/44), the text reads:

The custodian has no obligation to accept any additional delivery on behalf of the trust if, after giving effect to such delivery, the total amount of the trust’s silver held by the custodian exceeds 264,550,265 troy ounces. If this limit is exceeded, it is anticipated that the trustee, with the consent of the sponsor, will retain an additional custodian… As a result, the new agreement may differ from the current one with JPMorgan Chase Bank N.A., London branch, with respect to issues like duration, fees, maximum amount of silver that the additional custodian will hold on behalf of the trust, scope of the additional custodian’s liability and the additional custodian’s standard of care.

I have not been able to find out who SLV has named as the new custodian.  My flat-out guess is the new custodian will be HSBC since as Douglas highlights, they are the other big player in the paper gold and silver market.

For many reasons, I view SLV and GLD with distrust.  The Central Fund of Canada (third-party storage of gold and silver, CEF) and Central Gold-Trust (GTU, gold bullion only) are two ETF’s you could also check out, as well as goldmoney.com and bullionvault.com.  GTU and CEF currently traded at significant premiums compared to the spot price of the amount of bullion they store.  Physical metal can even be placed into an IRA and stored by a third party. All I can say on any of these options is to be VERY careful, there is no simply substitute for physical gold and silver in hand or even stored at a Brinks-type depository or safety deposit box. I view all of the above as simply ways to diversify storage.

As far as the immediate future, in manipulated markets it is impossible to tell.  Long-term, it is my belief the current fiat monetary system will fail, and this depression will likely not end until this occurs. Antal Fekete recently warned the quantitative easing phase of this Gold War could take quite a long time, but please prepare yourself and your family.

Let me close with a quote from Thomas Paine’s “Dissertations on Government.”

“When an assembly undertakes to issue paper as money, the whole system of safety and certainty is overturned, and property set afloat. Paper notes given and taken between individuals as a promise of payment is one thing, but paper issued by an assembly as money is another thing. It is like putting an apparition in the place of a man; it vanishes with looking at it, and nothing remains but the air.”

For the Republic,

Jake Towne, the Champion of the Constitution

[Reach the Author Here!] www.CampaignForLiberty.com (Banner courtesy Mike Burke)

___________________________________________________________________________

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings in part or full of this article to your blog or anywhere else in order to promote the Restoration of our Republic.

Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.

___________________________________________________________________________

Nolan Chart Facebook Group Page Created

Summary of Articles and Bibliography for Jake, the Champion of the Constitution (2/1/2009)

As a disclaimer of sorts, I am a supporter of owning physical gold, physical silver, www.gata.org and www.goldmoney.com. Any investment or financial views expressed in the article are mine and mine alone, so make your own financial decisions by educating yourself. All I am doing is sharing my views to help you decide, even if its just to become aware that you do have a decision to make. These articles reflect the my opinion and are by no means a guarantee of future economic conditions. My articles are provided for INFORMATIONAL PURPOSES ONLY and are actually NOT MEANT to provide investment advice to anyone. You can even say its a charitable but naive act, given the historical tendency of the US government to oppress and steal.

by Jake, the Champion of the Constitution
Originally published on Sunday, March 29, 2009 at http://www.nolanchart.com/article6228.html

While gold trades as a currency (or “medium of exchange”) and also is a “store of value,” and even a “unit of account” for some, and very little is actually consumed. Economically speaking, gold trades even in the modern world as money. Gold is a luxury good with insignificant industrial usage. Its major market as a luxury good is Indian women’s jewelry, but to these women gold is their money or insurance if their mate leaves, dies, or is disabled so the metal is not consumed – it can be easily recovered. ( Photo) (2)

To make my case that gold is money, what seems to be little known is that the gold market is also quite large – the LBMA in 2008 traded about $80 billion USD per trading DAY per the data collected by the IFSL 2009 Bullion Markets Report p3/8 – which I took the time to verify to be correct from its original sources – or $20.3 Trillion in turnover in 2008 and 254 LBMA trading days. However, the IFSL makes a significant note that this volume is quite likely three-to-five times larger since much of the transactions are increasingly netted out and cleared without appearing in the statistics. Please compare this to the 2008 GDP of the United States at $15 Trillion and understand the rough estimate that 75% of the world’s trade in gold (and half of the world’s silver) is traded via the LBMA.

Silver, on the other hand, serves as both an industrial metal and a “store of value” for silver investors. As we learned here, both silver and gold are precious metals since there is very little aboveground stock. All of the gold stock in the world would fit into a cube 20.5 meters to a side. Due to high amounts of industrial usage, the silver stock is even smaller, less than 14.5 meters to a side.

However, as seen below, the silver market size at $10 billion is minuscule – just a tiny fraction of a percent – compared to the gold market. What is really mind-blowing is that the LBMA traded the entire annual mine production of silver every 6 days, while the annual mine production of gold was traded every 4-5 days, despite the fact that silver is priced as if it were a commodity similar to wheat, corn, or copper. You see, the aboveground stock of gold valued at about $4100 billion is equivalent to roughly 5.2 billion troy ounces of gold, but the annual mine production is only 0.087 billion. The aboveground stock of silver valued at $10 billion is estimated at roughly 1.0 billion troy ounces of silver and the annual mine production of silver is about 0.671 billion. (IFSL report, pages 5-8/8)

So the annual “stocks-to-flow” ratio of gold is 60, meaning that there is the equivalent of ~60 years of production aboveground for every year of production. In contrast, for silver the ratio is about 1.5, which is much closer to typical commodities which all lie around one year of production in aboveground stocks for every year of production. Gold is not just another commodity; mankind will never achieve perfection in all things, but nature’s “metal of the sun” is as close to perfect money as mankind is going to get. Modern-day gold mines are lucky to exceed 1 gram of gold from each metric ton (24,250 pounds) ground and processed. If you never have, try holding a one troy ounce (31.1 gram) gold coin in your hand. It’s 2.5 times denser than steel and took a lot of effort and risk to mine.

So, the equivalent of the entire aboveground stock of gold is exchanged every 269 trading days while the equivalent of the entire aboveground stock of silver is exchanged every 9 trading days at the LBMA.

I interpret the all of the preceding information to mean that gold has never stopped being used as both a money and a currency, even in the last 38 years of floating fiat exchange rates. Silver is money as well, but is not traded in high enough volumes, in dollar terms since the price per ounce is too low, to be considered a currency. Jason Hommel reinforces my point in his recent speech “Why Silver is Money.”

Folks, this “stocks-to-flow” fact is well understood, but remains unstated, by the financial elite, most notably Obama’s chief economic advisor, Lawrence Summers. If the world population widely understands the above and begin to both acquire the physical metal and clamor for the restoration of gold and silver as honest money, governments and central bankers could very well lose what is amounting to a stranglehold over the global economy. The world would realize that central banks are not needed whatsoever.

“Financial crisis”? Screw that, this is an all-out Gold War. Go GATA!!

For the Republic,

Jake Towne, the Champion of the Constitution

Per the Constitution of the United States, Congress and all states are forbidden to “make any Thing but gold and silver Coin a Tender in Payment of Debts.”

Part 2 will be finished shortly on silver backwardation and yet another new concern on the ETF SLV.

PS I realize I have a strong stance on the subject but please offer any rebuttals or feel free to ask any questions. I suppose another conclusion is that since gold trades around a quarter-quadrillion dollars every day, if you have saved money, depending on your circumstances it may be extremely foolish to not at least have some gold.

[Reach the Author Here!] www.CampaignForLiberty.com www.EndTheFED.us (Below is mine, photos linked above, graphs created by me from the same data the IFSL used.  Feel free to use the below anywhere to promote Honest Money!)

___________________________________________________________________________

Nolan Chart Facebook Group Page Created

Summary of Articles and Bibliography for Jake, the Champion of the Constitution (1/1/2009)

___________________________________________________________________________

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings in part or full of this article to your blog or anywhere else in order to promote the Restoration of our Republic.

Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.

Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.

As a disclaimer of sorts, I am a supporter of owning physical gold, physical silver, www.gata.org and www.goldmoney.com. Any investment or financial views expressed in the article are mine and mine alone, so make your own financial decisions by educating yourself. All I am doing is sharing my views to help you decide, even if its just to become aware that you do have a decision to make. These articles reflect the my opinion and are by no means a guarantee of future economic conditions. My articles are provided for INFORMATIONAL PURPOSES ONLY and are actually NOT MEANT to provide investment advice to anyone. You can even say its a charitable but naive act, given the historical tendency of the US government to oppress and steal.

by Jake, the Champion of the Constitution

Originally published Saturday, February 14, 2009 at http://www.nolanchart.com/article5998.html

This article and charts is an update to an earlier article “Silver in Backwardation! Has the Last Contango Been Danced in Washington?“. The new text starts after the fourth paragraph.

[In case you do not yet understand futures markets, "backwardation" means that silver to be delivered today is now being priced higher than metal to be delivered later. This article refers to the LBMA, or London Bullion Market Association's futures market in London, England. For more details on backwardation, please refer to my five-part December series which starts here "The End for the Dollar and all Fiat Currencies (1/5)". Contango is the opposite of backwardation and exists when futures price is higher than the spot price as I explained for those new to futures terminology here "The Money Matrix - What the Heck Are Derivatives? (PART 10/15)". [As you read, please also note that I am NOT a commodities trader, I am just an engineer by trade, so feel free to help me out with my analysis or mistakes.] ( Photo) (2)

As we learned in “The Significance of Gold Backwardation Explained (4/5)“, backwardation is a sign of a very tight market, and a market that will be tight for sometime into the future either 1) current supply is very tight, 2) future supply is projected to be very tight, or 3) there is a severe distrust in counterparties that the short positions can deliver the goods on time per the contract, or vice-versa that the long positions will not have the cash.

While gold traded as a “store of value” (a currency, really), very little is actually consumed. Silver, on the other hand, serves as both an industrial metal and a “store of value” for silver investors. As we learned here, both silver and gold are precious metals since there is very little aboveground stock. All of the gold stock in the world would fit into a cube 20.5 meters to a side. Due to high amounts of industrial usage, the silver stock is even smaller, less than 14.5 meters to a side.]

Please refer to the below graphs of LBMA’s silver mid rate, which is the midway point between the bid and offer prices. Here is what I note:

• Silver has been in backwardation for the 18 trading days since January 21. The mid-rate for the longest contracts is now slightly positive.
• This backwardation is about three times more severe than the mild backwardation than existed from December 8 through December 24 in 2008.
• We can see that since 2006-2007 where rates were about 4-5%, this state of backwardation is fairly unusual. (The LBMA only lists data back to 2006, but I believe it is a fair comment to say that on an even longer timeline, this is unusual.)
• Furthermore, starting in roughly June 2008, the 12-month SIFO rate flipped over from being the lowest rate to, in general, the highest.
• Also, the disparity between the rates seen in 2006-2007 has largely disappeared; the market appears to be treating a trade on silver 12 months later as quite similar to a trade on silver 1 month later.

[All graphs in this article were created by me from this LBMA source and this US Mint source and my file is available by request.]

Let’s now also look at the LBMA Silver Fix price history for a 1000 troy ounce bar. Despite all of the tightness in the market as demonstrated by the SIFO chart, the Dollar price of silver is still well below the average price for 2006-2008, while Euro/Pound are nearing new highs due to FOREX market. During this latest backwardation, the Euro price is within 12% of its March 2008 high, while the Pound is within 23%. However, the dollar price of $13.37/oz. is 36% below its $20.92/oz. high.

It is simply too early to tell if we have seen the “Last Contango,” but as Dr. Fekete notes in “The Last Contango in Washington” (2006) and “Keeping Our Eyes Peeled for the Silver and Gold Basis” (2007), the consequences could be very stark for the dollar and hence all fiat currencies.

Now, of course, there are many other factors as silver guru Theodore Butler points out in “Tightening Production“. Industrial demand has been slammed by the economic fallout. However, since about 70% of all silver is typically mined as a by-product with other base metals like zinc, the supply is also greatly affected by the market conditions of zinc, copper, lead, and nickel. While the backlog in demand has greatly increased the inventories of these base metals causing a drop in their prices the inventory of silver is growing smaller while the price has increased over the past three months from $10 to $13/oz. Butler also relates that many of the base metal mines have been closing due since they are no longer profitable. At the same time, Butler reports that the American COMEX silver futures market is under investigation by the CFTC (Commodities and Futures Trading Commission) for market manipulation and price suppression. It is also possible the London market backwardation is temporary due to the severe loss of purchasing power (relative to others) of the British pound.

[For the Reader, NYMEX Gold Session Futures chart, Silver Session Futures chart. Gold spot price chart. Silver spot price chart. When the spot price is greater than the futures price, backwardation exists.]

Let’s now take a quicker look at gold traded at LBMA. The GOFO, or Gold Forward Offered Rate, represents the rates at which dealers will lend gold on a swap basis against US dollars. From the below charts, I note:

• Recently, gold has only gone into minor backwardation once, in November 2008, for 3 days.
• As GOFO started its plummet in roughly September 2007, the prices began to diverge, and currently the 1-month GOFO rate is lower than the 12-month rate.
• The buckling of the British pound can be easily seen. The British pound set an all-time high of 666 pounds per ounce of gold this week on February 12, 2009.
• The Euro set an all-time high of 740 Euros per ounce of gold on February 12, 2009 as well.
• Gold priced in Dollars is still 8% below its 2008 high of $1,023, as of February 13.

There is some debate about whether backwardation is bullish for gold and silver. Due to the aboveground stocks-to-flow ratio, I maintain that LBMA backwardation in gold in is not only a bullish signal, but, more importantly it is blaring siren signaling trust in the Dollar is being lost. Since the aboveground stocks-to-flow ratio of silver is more typical of other commodities and industrial metals, LBMA silver backwardation is also bullish, for the commodity but may not be as relevant to the Dollar unless the reasons for the backwardation are clearly understood. As an amateur, I do not know the root cause of the backwardation although I listed three possible causes earlier, plus the Pound’s recent relative devaluation. However we can look at what happened to the price of silver and gold during each of the three backwardation periods from 2006-2009.

In addition to the annual supply-demand figures put together by the World Gold Council and the Silver Institute, another interesting item is US Mint-issued gold and silver bullion sales. As can be seen by the below, the gold demand quadrupled from its 2007 level, and silver demand doubled. Adam Hamilton wrote an interesting article recently here.

Another sign of investor demand is the GLD and SLV ETF’s, which are probably fraudulent paper derivative scams as both James Turk and Jim Sinclair claim. The “inventory” of GLD has skyrocketed 205 tonnes to 985 tonnes since 2008 ended, which is within striking distance of the central bank reserves of Switzerland, the planet’s #6 holder of gold. The “inventory” of SLV has leapt from 218 million ounces to 244 million ounces since January 1. In several weeks SLV will likely hit its allotted maximum of 264 Moz per page 8/48 of the prospectus. Not sure what happens after that, but if there are any SLV experts out there, please assist!  I’ve also noted some erratic behavior with the ETFs while LBMA is in backwardation, but I profess I do not have the expertise to dissect it further.

From the latest COT report, non-Gold Cartel traders should be wary of another initial pullback-breakout-retest-blastoff in the COMEX market which is how gold historically trades, as shown by Jordan Roy-Bryne. Others (like myself) of humbler means who do not like to play with the fire of the “Gods of the Market Place” should be quite content with holding the mythological metals of the sun and moon in the palms of our hands. For did Rudyard Kipling not warn:

“As I pass through my incarnations in every age and race,
I make my proper prostrations to the Gods of the Market Place.
Peering through reverent fingers I watch them flourish and fall,
And the Gods of the Copybook Headings, I notice, outlast them all…

In the Carboniferous Epoch we were promised abundance for all,
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could buy,
And the Gods of the Copybook Headings said: “If you don’t work you die.”

Then the Gods of the Market tumbled, and their smooth-tongued wizards withdrew
And the hearts of the meanest were humbled and began to believe it was true
That All is not Gold that Glitters, and Two and Two make Four
And the Gods of the Copybook Headings limped up to explain it once more.

As it will be in the future, it was at the birth of Man
There are only four things certain since Social Progress began.
That the Dog returns to his Vomit and the Sow returns to her Mire,
And the burnt Fool’s bandaged finger goes wabbling back to the Fire;

And that after this is accomplished, and the brave new world begins
When all men are paid for existing and no man must pay for his sins,
As surely as Water will wet us, as surely as Fire will burn,
The Gods of the Copybook Headings with terror and slaughter return!”

Fortune favors the brave. GO GATA!

Jake, the Champion of the Constitution

[Reach the Author Here!] www.CampaignForLiberty.com www.EndTheFED.us (Below is mine courtesy me, photos linked above, feel free to use anywhere to promote Honest Money!)

___________________________________________________________________________

Nolan Chart Facebook Group Page Created

Summary of Articles and Bibliography for Jake, the Champion of the Constitution (1/1/2009)

___________________________________________________________________________

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings in part or full of this article to your blog or anywhere else in order to promote the Restoration of our Republic.

Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.

Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.

As a disclaimer of sorts, I am a supporter of owning physical gold, physical silver, www.gata.org and www.goldmoney.com. Any investment or financial views expressed in the article are mine and mine alone, so make your own financial decisions by educating yourself. All I am doing is sharing my views to help you decide, even if its just to become aware that you do have a decision to make. You can even say its a charitable but naive act, given the historical tendency of the US government to oppress and steal. Any questions, feel free to email me. [Reach the Author Here!]

___________________________________________________________________________

Other Related Articles by the Author

Silver in Backwardation! Has the Last Contango Been Danced in Washington?

The Money Matrix – Who Owns the FED (PART 7/15)

The Year of the Ox Arrives in China, Land of “Currency Manipulation” (PART 1/2)

GATA’s Message on Gold and Silver Manipulation to Barack Obama (PART 2/2)

Rioting at the Gates of Thermopylae: The Ramparts of the FED & Central Banks Shudder

• The “Great Slump” of 2008 (PART 1/2)
• Bernanke’s Great Lie – The “Gold Standard” and the Great Depression (PART 2/2)

___________________________________________________________

Gold and Silver Investigation Source List

The People’s Money – a Facebook group that I assist with news postings.

A Quick History of Gold

GO GATA! The premise of the Gold Anti-Trust Action Committee that the world gold market is artificially suppressed by central banks in order to make their currencies look stronger.  25 minute intro Part (1) (2) (3)

www.GoldMoney.com – GoldMoney is an international gold and silver warehouse with insured vaults in London and Zurich.  Ability to hold and pay interest on six major fiat currencies, issue payments in goldgrams, silver ounces, etc. Think of them as an alternative way to diversify where and how  your physical metal is stored, but I urge you to be wary and thoroughly investigate this and ANY method where someone else holds your metal for you before investing.  The best is always physical possession  (or pay for storage at a Brinks-type depository) although you should always be creative with your storage locations

The World Gold Council – A wealth of information on central bank holding, gold derivatives, supply and demand statistics and more.  Free login required.

Rothbard, Murray N. “What has the Government Done with Our Money?” (1990) A 50-page document that describes Austrian economics.  Rothbard has written a host of other great sources as well, like the 1994 work “The Case Against the Fed.”

www.jsmineset.com Expert Jim Sinclair shares his thoughts on gold investing, financial markets, and trading.  For free!

www.DollarCollapse.com This site’s main use is as a newsfeed for dollar, gold, and housing market current events.  They explain their dollar collapse theory here, which I partly agree with.

www.SilverSeek.com I particularly enjoy reading the columns of Theodore Butler and Jason Hommel

www.GoldSeek.com The sister site of SilverSeek.  The Mogambu Guru’s (aka Richard Daughty) column has tunnel vision but hilarious and educational..

www.professorfekete.com A seriously pro-gold scholar.

www.lemetropolecafe.com Offers timely gold market advice and a daily “Midas” column.  Try the 2-week free trial.

Paul, Ron. “Pillars of Prosperity.” (2008) A 400+ page compilation of Dr. Paul’s writings. After reading these, one realizes that Dr. Paul did very little recent work in putting together his best-selling “The Revolution” as most of this book was written 20+ years ago.

Millar, Peter. “The Relevance and Importance of Gold in the World Monetary System.” (2006). Self-explanatory title. Understanding Graph 2 on page 3 is key.

Greenspan, Alan. “Gold and Economic Freedom.” (1966) Interesting work from the Maestro prior to his conversion to inflationary Keynesian theory.

by Jake, the Champion of the Constitution
Originally published Friday, January 30, 2009 at http://www.nolanchart.com/article5916.html

[In case you do not yet understand futures markets, "backwardation" means that silver to be delivered today is now being priced higher than metal to be delivered later in the London Bullion Market Association's futures market in London, England. For more details on backwardation, please refer to my five-part December series which starts here "The End for the Dollar and all Fiat Currencies (1/5)". Contango is the opposite of backwardation and exists when futures price is higher than the spot price as I explained for those new to futures terminology here "The Money Matrix - What the Heck Are Derivatives? (PART 10/15)". [As you read, please also note that I am NOT a commodities trader, I am just an engineer by trade, so feel free to help me out with my analysis or mistakes.]  ( Photo) (2)

As we learned in “The Significance of Gold Backwardation Explained (4/5)“, backwardation is a sign of a very tight market, and a market that will be tight for sometime into the future either 1) current supply is very tight, 2) future supply is projected to be very tight, or 3) there is a severe distrust in counterparties that the short positions can deliver the goods on time per the contract, or vice versa that the long positions will not have the cash.]

While gold traded as a “store of value” (a currency, really), very little is actually consumed. Silver, on the other hand, serves as both an industrial metal and a “store of value” for silver investors. As we learned here, both silver and gold are precious metals since there is very little aboveground stock. All of the gold stock in the world would fit into a cube 20.5 meters to a side. Due to high amounts of industrial usage, the silver stock is even smaller, less than 14.5 meters to a side.

Please refer to the below graphs of LBMA’s silver mid rate, which is the midway point between the bid and offer prices. Here is what I note:

• Silver for all traded futures contracts (whether 1 month or 12 months) have been in backwardation for seven trading days since January 21.
• This backwardation is about three times more severe than the mild backwardation than existed from December 8 through December 24 in 2008.
• We can see that since 2006-2007 where rates were about 4-5%, this state of backwardation is fairly unusual. (The LBMA only lists data back to 2006, but I believe it is a fair comment to say that on an even longer timeline, this is unusual.)
• Furthermore, starting in roughly June 2008, the 12-month SIFO rate flipped over from being the lowest rate to, in general, the highest.
• Also, the disparity between the rates seen in 2006-2007 has largely disappeared; the market appears to be treating a trade on silver 12 months later as quite similar to a trade on silver 1 month later.

[All graphs in this article were created by me from this LBMA source. I'd be happy to provide my MSExcel file by email if you wish.]

Let’s now also look at the LBMA Silver Fix price history for a 1000 troy ounce bar. While at the end of the graph, the loss of purchasing power relative to the Euro and Dollar by the British Pound can easily be seen, I remark that despite all of the tightness in the market as demonstrated by the SIFO chart, the price of silver is still well below the average price for 2006-2008.

It is simply too early to tell if we have seen the “Last Contango,” but as Dr. Fekete notes in “The Last Contango in Washington” (2006) and “Keeping Our Eyes Peeled for the Silver and Gold Basis” (2007), the consequences could be very stark for the dollar and hence all fiat currencies.

Now, of course, there are many other factors as silver guru Theodore Butler points out in “Tightening Production“. Industrial demand has been slammed by the economic fallout. However, since about 70% of all silver is typically mined as a by-product with other base metals like zinc, the supply is also greatly affected by the market conditions of zinc, copper, lead, and nickel. While the backlog in demand has greatly increased the inventories of these base metals causing a drop in their prices the inventory of silver is growing smaller while the price has increased over the past three months from $10 to $12/oz. Butler also relates that many of the base metal mines have been closing due since they are no longer profitable. At the same time, Butler reports that the American COMEX silver futures market is under investigation by the CFTC (Commodities and Futures Trading Commission) for market manipulation and price suppression.

[For the Reader, NYMEX Gold Session Futures chart, Silver Session Futures chart. Gold spot price chart. Silver spot price chart. When the spot price is greater than the futures price, backwardation exists.]

Let’s now take a quicker look at gold traded at LBMA. The GOFO, or Gold Forward Offered Rate, represents the rates at which dealers will lend gold on a swap basis against US dollars.  From the below charts, I note:

• Gold has only gone into minor backwardation once, in November 2008, for 3 days.
• As GOFO started its plummet in roughly September 2007, the prices began to diverge, and currently the 1-month GOFO rate is lower than the 12-month rate.
• Again, the buckling of the British pound can be easily seen.
• The British pound set an all-time high of 656 pounds per ounce of gold this week on January 26, 2009.
• The Euro set an all-time high of just under 700 Euros per ounce of gold this week on January 26, 2009.
• The Dollar is still 14% below its 2008 high of $1,023, as of January 29.

The reader should be aware I highlighted in my last article “GATA’s Message on Gold and Silver Manipulation to Barack Obama (PART 2/2)” and support the group known as GATA in their battle to bring about an end to the suppression that I perceive exists from the evidence GATA has gathered. As the GOFO rate is just barely positive (+0.2%) as I write, I warn you of what will happen if gold lapses into permanent backwardation. Or rather, I will let James Turk of goldmoney.com warn you:

“If gold does trade in backwardation against US dollar for a protracted period…, it will mean that a collapse of the dollar has begun. Think about it. How could gold go into backwardation for any prolonged period? If it does, it would mean that no one is willing to take the risk of selling their hoard and instead hold US dollars. It would mean that no one is willing to accept the risks that come with holding dollars while waiting until they can be used at a future date to exchange back into gold.”

Got silver? Got gold? To those I believe who are suppressing free market of these two monetary metals, my message is from this Offspring video full of gold and silver coins:

“So dance, ******, dance!
…Hit ‘em right between the eyes!
Hit ‘em right between the eyes!
When you walk away,
Nothing more to say!
See the lightning in your eyes!
See ‘em running for their lives!”

Everyone else, get some while it is still cheap!

GO GATA!

Jake, the Champion of the Constitution

[Reach the Author Here!] www.CampaignForLiberty.com http://www.yaliberty.org/ endthefedusa.ning.com (Banner courtesy Mike Burke)

___________________________________________________________________________

Nolan Chart Facebook Group Page Created

Summary of Articles and Bibliography for Jake, the Champion of the Constitution (1/1/2009)

___________________________________________________________________________

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings in part or full of this article to your blog or anywhere else in order to promote the Restoration of our Republic.

Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.

Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.

As a disclaimer of sorts, I am a supporter of owning physical gold, physical silver, www.gata.org and www.goldmoney.com. Any investment or financial views expressed in the article are mine and mine alone, so make your own financial decisions by educating yourself. All I am doing is sharing my views to help you decide, even if its just to become aware that you do have a decision to make. You can even say its a charitable but naive act, given the historical tendency of the US government to oppress and steal. Any questions, feel free to email me. [Reach the Author Here!]

___________________________________________________________________________

Other Recommended Articles by the Author

Rioting at the Gates of Thermopylae: The Ramparts of the FED & Central Banks Shudder
Published: December 14, 2008
M1 hits 37% growth!! “Most of the significant American banks, the larger banks, are bankrupt, totally bankrupt.” – Jim Rogers, 12/11/2008

• The “Great Slump” of 2008 (PART 1/2)
• Bernanke’s Great Lie – The “Gold Standard” and the Great Depression (PART 2/2)

___________________________________________________________________________

The Money Matrix Series

1. America, Were Michael Phelps’ Eight Olympic Gold Medals Worth Winning?
2. The Money Matrix – Prelude (PART 1/15)
3. The Money Matrix – What is a Dollar Bill Worth? (PART 2/15)
4. The Money Matrix – What Makes Money Money? (PART 3/15)
5. The Money Matrix – What is Honest Money? (PART 4/15)
6. The Money Matrix on the Grand Deception of Seigniorage (PART 5/15)
7. The Money Matrix – How the FED Works (PART 6/15) (A must-read, this article’s content is important as I haven’t seen its information compactly put together in one place)
8. The Money Matrix – What the Heck Are Derivatives? (PART 10/15)
9. Save Ron Paul’s Voice – A Money Matrix Addendum
10. A Money Matrix Addendum: Citigroup and GATA Call for an End to the Suppression of the Gold Market
11. MY PROPHECY – The Federal Reserve Will End! A Money Matrix Addendum

___________________________________________________________

Gold and Silver Investigation Source List

The People’s Money – a Facebook group that I assist with news postings.

A Quick History of Gold

GO GATA! The premise of the Gold Anti-Trust Action Committee that the world gold market is artificially suppressed by central banks in order to make their currencies look stronger.  25 minute intro Part (1) (2) (3)

www.GoldMoney.com – GoldMoney is an international gold and silver warehouse with insured vaults in London and Zurich.  Ability to hold and pay interest on six major fiat currencies, issue payments in goldgrams, silver ounces, etc. Think of them as an alternative way to diversify where and how  your physical metal is stored, but I urge you to be wary and thoroughly investigate this and ANY method where someone else holds your metal for you before investing.  The best is always physical possession  (or pay for storage at a Brinks-type depository) although you should always be creative with your storage locations

The World Gold Council – A wealth of information on central bank holding, gold derivatives, supply and demand statistics and more.  Free login required.

Rothbard, Murray N. “What has the Government Done with Our Money?” (1990) A 50-page document that describes Austrian economics.  Rothbard has written a host of other great sources as well, like the 1994 work “The Case Against the Fed.”

www.jsmineset.com Expert Jim Sinclair shares his thoughts on gold investing, financial markets, and trading.  For free!

www.DollarCollapse.com This site’s main use is as a newsfeed for dollar, gold, and housing market current events.  They explain their dollar collapse theory here, which I partly agree with.

www.SilverSeek.com I particularly enjoy reading the columns of Theodore Butler and Jason Hommel

www.GoldSeek.com The sister site of SilverSeek.  The Mogambu Guru’s (aka Richard Daughty) column has tunnel vision but hilarious and educational..

www.professorfekete.com A seriously pro-gold scholar.

www.lemetropolecafe.com Offers timely gold market advice and a daily “Midas” column.  Try the 2-week free trial.

Paul, Ron. “Pillars of Prosperity.” (2008) A 400+ page compilation of Dr. Paul’s writings. After reading these, one realizes that Dr. Paul did very little recent work in putting together his best-selling “The Revolution” as most of this book was written 20+ years ago.

Millar, Peter. “The Relevance and Importance of Gold in the World Monetary System.” (2006). Self-explanatory title. Understanding Graph 2 on page 3 is key.

Greenspan, Alan. “Gold and Economic Freedom.” (1966) Interesting work from the Maestro prior to his conversion to inflationary Keynesian theory.

by Jake, the Champion of the Constitution
Originally published Thursday, January 29, 2009 at http://www.nolanchart.com/article5832.html

“Gold is Money, and Nothing Else.” – JP Morgan before Congress, 1914.  Notice he forgot to mention silver.  GO GATA!

In Part 1, I meandered a bit but one point I belabored was that the United States under Obama will refer to China as a “currency manipulator.”  In this article, please also me to meander again, but if you care to research any of the links I will introduce, you might agree with me that first Obama and “Turbo Tax” Tim have to defend my claim that America is itself a “currency manipulator.”

The Gold Anti-Trust Action Committee was organized in January 1999 to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities.  GATA opposes collusion against a free market in gold, other precious metals, currencies, and related securities.  Their main theories center around demonstrating that governments, central banks, bullion banks, and even some major miners have colluded to suppress the price of gold.  By doing so, they make their own fiat currencies appear stronger. ( photo) GATA’s evidence is summarized here and an 25-minute introductory movie is here Part (1) (2) (3)

My first two pieces of evidence are taken from a very upbeat letter celebrating the 10th anniversary of GATA written by Bill Murphy of lemetropolecafe.com.  You can read the full version here.  First is a description of Obama’s “new” Clinton-era, anti-gold central planners.  Second is a 1961 Federal Reserve document found by researcher Elaine Supkis that clearly outlines secretive currency manipulation as standard operating procedure for America’s quasi-private central bank.

______________________________________________________________________________

“Robert Rubin coined the phrase “US Strong Dollar Policy,” and flaunted the phrase. Rigging the price of gold was that policy’s lynchpin… Robert Rubin hatched the gold price suppression scheme while running Goldman Sachs’ operations in London. This was many years ago, when interest rates were very high (say from 6 to 12% in the US). Rubin had Goldman Sachs borrowed gold from the central banks at about a 1% interest rate. Then he sold the gold into the physical market, using the proceeds to fund their basic operations. This was like FREE money, as long as the price of gold did not rise to any sustained degree for any length of time.

“He continued his innovative money ploy as CEO of Goldman Sachs in New York and then put his Strong Dollar Policy ploy on steroids as Treasury Secretary under President Clinton.” (source Murphy letter)

[Rubin was forced to resign by Citigroup earlier this month, and was an Obama advisor during his election campaign, and is the current Chairman of the Council on Foreign Relations (CFR) - Jake]

______________________________________________________________________________

“Lawrence Summers followed Rubin as Clinton’s Treasury Secretary, and who could be more qualified to continue Rubin’s gold price suppression scheme than him? After all, while at Harvard he co-authored a paper,”Gibson’s Paradox and The Gold Standard.” The bottom line of Summers’ analysis is that “gold prices in a free market should move inversely to real interest rates.” Control gold and it will help to control interest rates.”  (source Murphy letter)

[Summers is now Obama's White House National Economic Council Director, or central planner.  He also was Chief Economist at the World Bank for 3 years.  Summers finished off the Glass-Steagal Act that was put in place to prevent another Great Depression, and was a big supporter of Greenspan's decision to deregulate derivatives.  - Jake]

______________________________________________________________________________

“Which brings us to Timothy Geithner, who is President-elect Obama’s nominee to be U. S. Treasury Secretary. Geithner was named president and chief executive officer of the Federal Reserve Bank of New York on November 17, 2003. In that capacity, he serves as the Vice Chairman and a permanent member of the Federal Open Market Committee, the group responsible for formulating the nation’s monetary policy.  ( Photo) (2)

“Mr. Geithner joined the Department of Treasury in 1988 and worked in three administrations for five Secretaries of the Treasury in a variety of positions. He served as Under Secretary of the Treasury for International Affairs from 1999 to 2001 under Secretaries Robert Rubin and Lawrence Summers.

“Geithner is also happens to be a member of the Bank for International Settlements and since 2005 has been Chairman of the Committee on Payment and Settlement Systems. You might want to see what the CPSS undertakes “at their own discretion” here.  (source Murphy letter)

______________________________________________________________________________

“Gary Gensler was nominated that day to be the new chairman of the CFTC. Gensler was Undersecretary of the Treasury (1999-2001) and Assistant Secretary of the Treasury (1997-1999).

“Gensler spent 18 years at Goldman Sachs, one of the ringleaders of The Gold Cartel, making partner when he was 30, becoming head of the company’s fixed income and currency operations in Tokyo by the mid-90’s.

“As the Treasury Department’s undersecretary for domestic finance in the last two years of the Clinton administration, Gensler found himself in the position of overseeing policies in the areas of U.S. financial markets, debt management, financial services, and community development. Gensler advocated the passage of the Commodity Futures Modernization Act of 2000, which exempted credit default swaps and other derivatives from regulation.

“… It is also important to keep in mind that chairman of the CFTC is one of the four members of the President’s Working Group on Financial Markets. Now why does a bureaucrat need to participate with the President and US Treasury Secretary on the markets? I thought the CFTC was supposed to regulate them, not be a part of policy.”  (source Murphy letter)

______________________________________________________________________________

Now, why is GATA so optimistic?  Well, their work has indicated that the gold suppression scheme will fail in this Obama term, and Murphy has given a full counter-proposal to the CFTC chairman with the message that Obama can find out whatever he wants to know by simply asking his current advisors.

Next, with perfect timing, FED researcher Elaine Supkis has uncovered an exciting document from the archives. The April 1961 document, which is marked “Confidential,” is from the papers of William McChesney Martin, Jr. The title of this confidential report is: Confidential – - (F.R.) U.S. Foreign Exchange Operations: Needs and Methods

GATA consultant James Turk (of goldmoney.com) has brilliantly dissected this document in an essay titled, “The Federal Reserve’s Blueprint for Market Intervention“  James Turk notes:

“In short, it lays out what the Treasury and Federal Reserve needed to do in order to begin intervening in the foreign exchange markets, but there is even more. This document plainly shows what happens when government operates behind closed doors. It also makes clear the motivations of the operators of dollar policy long described by the Gold Anti-Trust Action Committee and its supporters — namely, that the government would pursue intervention rather than a policy of free markets unfettered by government activity. The run to redeem dollars for gold had put the government at a crossroads, forcing it to make a decision about the future course of dollar policy. This paper describes what the government would need to do by choosing the interventionist alternative.

“This document provides primary, original source supporting evidence that GATA has been right all along.

“I have long hoped that a “confidential” document like this one would eventually emerge. There are no doubt countless more like it, as evidenced by the Federal Reserve’s and the Treasury’s refusal to provide all the documents requested by GATA under its recent Freedom of Information Act request. Maybe those documents will eventually see the light of day too.”

James makes a key points regarding one of the assertions of this report

“The basic purpose of such operations would be to maintain confidence in the dollar.”

“This statement confirms one of the basic planks of much of the work by me and others that has been published by GATA over the years. The efforts to cap the gold price have one aim. It is to make the dollar look worthy of being the world’s reserve currency when in fact it is not.”  (source Murphy letter)

______________________________________________________________________________

One response to Turk from Adrian Douglas:

“It got me thinking as to whether the heist they have pulled is bigger than we think. The BIS as we know, and as mentioned in this memo, is the organization that allows for cooperation behind the scenes of the Central banks. We know they went private to prevent any need for public disclosure seeding the opportunity for Reg Howe’s lawsuit. We have plenty of evidence that Central Bank gold holdings have been depleted. We keep saying that the gold is “gone”. But what do we mean by “the gold is gone”?

“Gold is not like crude oil, expensive wine, even silver it does not get consumed. It has not “gone”; it has changed ownership. The Central Banks leased out gold to the bullion banks. Now who did the the bullion banks sell the gold to? We know that the bullion banks can’t get the gold back. If the central banks ask for the gold back the bullion banks can declare bankruptcy or settle in cash. How convenient! The Central bank gold has gone into someone else’s hands that are unknown and the loss will eventually be written off.

“We know that Central Banks are owned or controlled by some of the richest families and/or entities in the world. Is it possible that these “bankers” can benefit from a fiat ponzi scheme while it can be maintained AND still end up with the gold in which case they can benefit from a return to a gold standard and when the gold standard eventually gets abused and abandoned in the future they will play the whole fiat game over again? It would certainly require cooperation between central banks to pull off such a heist.

“It would be great to have the whole world sitting in a room and ask those who own more than 10 million ozs of gold to raise their hands!

“The crime may be more than manipulating the price of gold to “defend the US dollar” and concealing the evidence from the public. The Cartel may well have aided and abetted embezzlement of the citizens’ gold of the Western world. And who ever has it, they bought it perfectly legally from the bullion banks with fiat currency.

“This seems to make sense because Central bankers and the “elitists” (Rockefellers, Rothchilds, Morgans, Mellons, Carnegies, Vanderbilts etc etc) are not stupid. They must know gold is real money. They can study monetary history too. The fiat money game in this context is a decoy for the theft of sovereign gold.

“It is not without precedent, the great inflationist, John Law, was arrested escaping with a coach loaded with gold and silver!”  (source Murphy letter)

Then from GATA Board member Catherine Austin Fitts:

“My hypothesis since 2001 is that the NWO is shifting assets out of sovereign governments and shifting liabilities back in. The goal is to reengineer global governance into the hands of private banks and corporations in a manner that dramatically centralizes control. This is why the creation of a genetically controlled seed and food supply, etc.

“If you use fiat currency to acquire ownership and control of all the real assets on the planet, then you need a gold standard to make sure you keep them. So, it would not surprise me to see G8 and GATA start to move into alignment, strange as it may sound.”  (source Murphy letter)

“To achieve such centralization requires the centralization of the gold and silver stores. Whoever has the gold has the most powerful financial asset. So if you want a new centralized currency, you need a monopoly on gold and silver. I think part of the end game is to shift back to something involving some kind of gold standard.“

______________________________________________________________________________

What?  This central banking cabal, this “New World Order” elite, or as GATA refers to them, the Gold Cartel, might have actually studied monetary history too?  Huh?  And actually they consist of two segments – one of the Keynesian/Monetarist brainwashed masses who have really have little clue, and an inner circle that has studied Austrian economics and is just doing whatever they believe necessary to defeat it for their own comparative advantage?  Cough! Cough! Reminds me, Cough! Of Alan Greenspan!  Cough, cough!  He wrote “Gold and Economic Freedom“!  Cough, cough!

Well, I am so sure that the above could never occur, so I have merrily continued my midnight studies of ancient economic texts in the hopes they will shed some further light on the future.  One such book is from 1894, called COIN’s Financial School by W. Hope Harvey.  [Recommend the B&W PDF since its well illustrated.]

In its heyday, COIN’s sold over 1 million copies, and was a key piece of propaganda for the silver populist movement.  It relates the story and dire effects of the demonetization of silver, which was causing Panics – the 1800s equivalent of recession and bank runs combined.  However, for the entire book (save parts of the conclusion) it aims to be solely a work of  flawless scholarly logic, and actually has me rethinking some aspects of bimetallism and the “Austrian standard” I introduced here.

Boy, was I surprised to see this big 1894 Rothschild spider thingey looking back at me!!  Darn it, didn’t we get RID OF the British in the 1700s?  The caption for this claims that the Rothschilds controlled over half of the global gold stock back then.  (photo from COIN’s Financial School, not in copyright)

I’ll probably refer to COIN’s in my later writings, but let me relate one pretty amazing fact, which is the relative amounts of gold in the world.  Per the World Gold Council (free subsciption required, see page 15/16), their widely accepted estimate of 5.3 billion troy ounces of aboveground gold stock may sound like a lot – current dollar value of $4.7 Trillion @ $890/oz, but its pretty much what the United States government will spend next year.

However, what is shocking is that ALL of the gold ever mined by mankind (very little has been been consumed) would fit inside of a cube that is only 20.5 meters to a side!! (Specific gravity of 19.3 grams per cubic centimeter, 31.1 grams per troy ounce)

What happens when we look at silver?  Well, there is no “World Silver Council” to look at what used to be known wide and far as “The People’s Money” and is a very special precious metal in its own right as I wrote about here. The best authority I have found on silver is not some elitist “Council” it’s just a smart dude named Ted Butler.  In a recent column, he reiterates his estimates of 40 billion troy ounces mined BUT ONLY about 1 billion ounces exists as unconsumed aboveground silver stock, and even grants his estimate is probably a bit high.  At about $11.90/oz., this amounts to a dollar value of just $11.9 Billion!  This is just a small fraction (0.25%!!!) of the dollar value of the world’s gold stock!

All of the world’s aboveground silver stock would fit inside of a cube that is only 14.5 meters to a side! (Specific gravity of 10.49 grams per cubic centimeter)

No wonder investors like Michael Maloney are heralding the possibility of the “Greatest Wealth Transfer Ever!”

It is also interesting to take a look at COIN’s view of what causes Panics.  He relates that although the value of silver and gold are insignificant when compared to the “Property of the World” and the “Debts of the World,” the world does more or less OK when the Debts are half the size of the Property.  However, he cautions that from his studies if the Debts ever reach two-thirds the value of the Property, wars and revolutions will ravage the planet. (photo from COIN’s Financial School, not in copyright)

Well, as a person living 115 years after COIN in the technologically advanced year of 2009, I can surely scoff at COIN’s naivety, right? It’s not as if the size of the world’s Debt – its debt-based fiat currencies and $684 Trillion of OTC “dark” derivatives does not now DWARF the value of its Property, right?  It’s not as if we are in the grips a global Depression, right?

I mean, its not AS IF the United States has launched a war for control of the oil supply like Iraq, right? Or attempted to place a total global blockade on  another major oil supplier like Iran, right?

Or has occupied and attacked countries like Afghanistan and Pakistan where the oil and natural gas pipelines from the Western-friendly former Soviet republic dictatorships could flow to our waiting oil tankers in the Indian Ocean protected by the US Navy right?  Or via the Georgia-Turkey pipeline, right?

It’s not AS IF major political rioting continues in Greece and Latvia, and a revolution has just toppled the government in Iceland, right?

It’s not AS IF the world is so scared of Somalian “pirates” that Blackwater is sending its mercenaries to protect merchantman vessels, right?  There are no other wars and revolutions in Africa besides Somalia, Sudan, Congo, the Ivory Coast and a few others, right?

It’s not AS IF a whole race of people have been barricaded inside a wall and are being shot at like some kind of a sick WWII Polish ghetto, right?

It’s not AS IF the whole British banking and equity markets weren’t just 3 hours from complete collapse in October 2008, right?

It’s not AS IF Edwin Vieira did not explain in 100 minutes of excruciating detail why our current crappy paper money is unconstitutional per  Article 1, Section 10, Clause 1 of the Constitution of the United States and what needs to be done to bring about change!!

And it’s not AS IF our government isn’t going to try to paper over the ravaging of our economy by passing a $850 Billion spending bill that will certainly not work while the banking system is helplessly insolvent… right?

Join the rEVOLution!  Restore the Republic!  My advice if you decide to buy precious metals is to buy some ounces of gold and buy a lot more ounces of silver!  No ETF or “paper metal” junk!

Jake, the Champion of the Constitution

[Reach the Author Here!] www.CampaignForLiberty.com http://www.yaliberty.org/ endthefedusa.ning.com (Banner courtesy Mike Burke)

___________________________________________________________________________

The Year of the Ox Arrives in China, Land of “Currency Manipulation” (PART 1/2)
Published: January 27, 2009
A few interesting contrasts between life in China and life in the United States as I ramble from the Chinese Yuan to Fireworks to Freedom of the Press to Global Warming

___________________________________________________________________________

Nolan Chart Facebook Group Page Created

Summary of Articles and Bibliography for Jake, the Champion of the Constitution (1/1/2009)

___________________________________________________________________________

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings in part or full of this article to your blog or anywhere else in order to promote the Restoration of our Republic.

Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.

Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.

As a disclaimer of sorts, I am a supporter of owning physical gold, physical silver, www.gata.org and www.goldmoney.com. Any investment or financial views expressed in the article are mine and mine alone, so make your own financial decisions by educating yourself. All I am doing is sharing my views to help you decide, even if its just to become aware that you do have a decision to make. You can even say its a charitable but naive act, given the historical tendency of the US government to oppress and steal. Any questions, feel free to email me. [Reach the Author Here!]

___________________________________________________________________________

Other Recommended Articles by the Author

Rioting at the Gates of Thermopylae: The Ramparts of the FED & Central Banks Shudder
Published: December 14, 2008
M1 hits 37% growth!! “Most of the significant American banks, the larger banks, are bankrupt, totally bankrupt.” – Jim Rogers, 12/11/2008

• The “Great Slump” of 2008 (PART 1/2)
• Bernanke’s Great Lie – The “Gold Standard” and the Great Depression (PART 2/2)

___________________________________________________________________________

The Money Matrix Series

1. America, Were Michael Phelps’ Eight Olympic Gold Medals Worth Winning?
2. The Money Matrix – Prelude (PART 1/15)
3. The Money Matrix – What is a Dollar Bill Worth? (PART 2/15)
4. The Money Matrix – What Makes Money Money? (PART 3/15)
5. The Money Matrix – If You Don’t Know Who the Sucker Is, Then It’s You! (PART 4/15)
6. The Money Matrix Explores Seigniorage – Do not give in to evil, but proceed ever more boldly against it. (PART 5/15)
7. The Money Matrix – How the FED Works (PART 6/15) (A must-read, this article’s content is important as I haven’t seen its information compactly put together in one place)
8. The Money Matrix – What the Heck Are Derivatives? (PART 10/15)
9. Save Ron Paul’s Voice – A Money Matrix Addendum
10. A Money Matrix Addendum: Citigroup and GATA Call for an End to the Suppression of the Gold Market
11. MY PROPHECY – The Federal Reserve Will End! A Money Matrix Addendum

___________________________________________________________

Gold and Silver Investigation Source List

The People’s Money – a Facebook group that I assist with news postings.

A Quick History of Gold

GO GATA! The premise of the Gold Anti-Trust Action Committee that the world gold market is artificially suppressed by central banks in order to make their currencies look stronger.  25 minute intro Part (1) (2) (3)

www.GoldMoney.com – GoldMoney is an international gold and silver warehouse with insured vaults in London and Zurich.  Ability to hold and pay interest on six major fiat currencies, issue payments in goldgrams, silver ounces, etc. Think of them as an alternative way to diversify where and how  your physical metal is stored, but I urge you to be wary and thoroughly investigate this and ANY method where someone else holds your metal for you before investing.  The best is always physical possession  (or pay for storage at a Brinks-type depository) although you should always be creative with your storage locations

The World Gold Council – A wealth of information on central bank holding, gold derivatives, supply and demand statistics and more.  Free login required.

Rothbard, Murray N. “What has the Government Done with Our Money?” (1990) A 50-page document that describes Austrian economics.  Rothbard has written a host of other great sources as well, like the 1994 work “The Case Against the Fed.”

www.jsmineset.com Expert Jim Sinclair shares his thoughts on gold investing, financial markets, and trading.  For free!

www.DollarCollapse.com This site’s main use is as a newsfeed for dollar, gold, and housing market current events.  They explain their dollar collapse theory here, which I partly agree with.

www.SilverSeek.com I particularly enjoy reading the columns of Theodore Butler and Jason Hommel

www.GoldSeek.com The sister site of SilverSeek.  The Mogambu Guru’s (aka Richard Daughty) column has tunnel vision but hilarious and educational..

www.professorfekete.com A seriously pro-gold scholar.

www.lemetropolecafe.com Offers timely gold market advice and a daily “Midas” column.  Try the 2-week free trial.

Paul, Ron. “Pillars of Prosperity.” (2008) A 400+ page compilation of Dr. Paul’s writings. After reading these, one realizes that Dr. Paul did very little recent work in putting together his best-selling “The Revolution” as most of this book was written 20+ years ago.

Millar, Peter. “The Relevance and Importance of Gold in the World Monetary System.” (2006). Self-explanatory title. Understanding Graph 2 on page 3 is key.

Greenspan, Alan. “Gold and Economic Freedom.” (1966) Interesting work from the Maestro prior to his conversion to inflationary Keynesian theory.