This writer will present the entire situation via a chronicle of all the news publications about the subject, providing dates sources and authors - where possible. Nearly all available information was researched from Internet sources. Most comments are verbatim from respective authors. Occasionally, this writer added comments of clarification and/or conclusions where the research leaves off.
Internet Commentary #67 -
Posted on the Internet October 22, 1997 by "ZARDOZ"
Oil, Gold and US dollar -
JTF re: your post of Oct. 21@19:04...I think we are getting closer to understanding what at first seemed like a riddle wrapped in an enigma. I agree that the word "conspiracy" is not necessarily the correct word to describe the relationship which as the Sheik has described has been nurtured between the Americans and Middle East respecting oil and gold. As you correctly point out is the inability for us, despite our healthy intuition, to point to any evidence which supports our theory that the Central Banks have in fact "sold" or transacted gold for oil. We may never have such information nor do "official" statistics reveal such truths. This is unfortunate. My concern is that we lack confidence in any of the so-called "official" gold statistics produced by the World Gold Council and can even question those of the more respectable Gold Field Mineral Services in London.
Our challenge is to attempt to reveal the connection between gold, oil and the US dollar with the little statistical evidence at our disposal. As you suggest, no one on Kitco or Gold Eagle has done this to date...
Nevertheless, even without such analysis, if we (you, I and other astute analysts on Kitco) are correct in our intuition, we can then benefit from positioning our megre portfolios to take advantage over the "cat being let out of the bag" revelations on the LBMA.
No matter how you slice this issue there is little question that enormous pressure has been built up on both gold and oil prices to rise and rise in a very significant way. The interests of the powerful oligarchy is of course to maintain the illusion of stability knowing full well the vulnerability of the present system to "inflation" on both scare commodities of gold and oil.
Internet Commentary #68 -
Posted on the Internet October 22, 1997 by "Eldorado"
Golden Cheesehead -- Got your 'foxhole' dug? If not, you better get real busy doing so, 'cause the Tsunami ain't gonna wait on nobody to move before it comes ashore! And, it WILL be BIG! Food, clothing, housing, healthcare, transportation, work, ---- everything being affected drastically. Kind of like a hurricane coming through your area, but the problems lasting very, very much longer, and the impact of it being world wide! Who's left outside of it to help pick up the pieces? Just the Jack-Boots of the world?
As to the question of the LMBA, oil for gold, etc., I find the question becoming rather irrelevant in the sense that in the end, it just doesn't matter; An exercise in futility. The crap hits the fan anyway and if one isn't prepared, then one can say that you got crapped upon. You know the Tsunami is on its way. Do you really stand on the beach, scratch your beard, and ask what caused it? I'd rather think that there would be more 'important' things to be doing at that time, like MOVING your butt along, and quickly! We are at the point in time of 'shooting first and asking the what and why' later. A month or a year too early beats the H__L out of being one day too late! Besides, if you get the job done early, perhaps you'll have a 'bit' more time to stand on the beach scratching your beard and pondering the imponderables, if you even then care.
Internet Commentary #69 -
Posted on the Internet October 25, 1997 by "ANOTHER"
Why do the Swiss want to sell gold over many years when they could sell the entire lot in a week? Yes, the worldwide trading volume in gold could take the whole load and not drop the price below Fridays close! The reason for the "many long term selling announcements" is to keep the price down over time. The CBs would have you think that their selling would "crush the price"! The real effect would be exactly the opposite. The major world buyers would line up at the door to buy "the last sale of the century! Have you heard any CBs putting out "Proposals to Sell" for their entire stock of gold? Of course not, the response to buy would give off the absolute wrong signal and cause a revaluation of gold.
It is a far better use of a public asset when they use a small anount of it over time to ensure a reasonable price for OIL! If all gold was sold quickly, there would be no trading medium for deals! How far do you think an IOU would go if it didn't have gold in the background worth perhaps a 1,000 times it's current commodity price?
So what good is this information to the small investor? Not much if you run out and buy gold options, gold stocks, gold futures, etc.! Did you think the following quotes were good for those assets:
"That is why some "Big Traders" are holding ONLY gold as events unfold."
" One last note: No form of paper wealth will survive the financial crush once the CBs stop selling! NOTHING! "
"The market is changing now,,, it will go up but you will not be happy with the outcome."
"What is happening now is far, far larger than the interest of a few traders or mining companies. They will be stepped on!"
Gold bullion is being accumulated and cornered on a worldwide scale not seen before! UNDERSTAND THIS: The people who are buying do not expect the price to rise until the CBs slow their selling. They do expect the value of gold to increase in the future even as the banks sell into a rising market. This will happen as the sheer volume of trading completely overwhelms the entire worldwide market! The big buyers fully well expect gold to stop all trading as the governments enact DRACONIAN MEASURES to deal with a worldwide currency problem. The public in general will ask for these measures and to that effect, all paper connected to bullion will become "fair game"!
My projections and -----: The gold market is not the same as it was in the past, so throw your charts and TA away! Nor will the gold market be the same in the future as it is today, so don't use paper substitutes! Today, gold is much more valuable than it has ever been! During your time a straight forward investment in "bullion only ' will far surpass any other asset you could hold!
Internet Commentary #70 -
Posted on the Internet October 25, 1997 by "Pedro"
Reflecting on Another's latest It seems to me that any conspiracy concerning Gold is aimed at officially re-instating it as the international currency for World trade purposes (Read Oracle @ http://gold-eagle.com/ ) And a certain"co-operation" between major Government and financial players is necessary to lay the groundwork (accumulation of Gold) to achieve this aim. The purpose is to relieve the problems caused by having an individual currency as the facilitator for International Trade. (i.e whats good for the US$ at home often conflicts with its international reserve asset function). This conspiracy theory also helps explain the apparent contradiction of trumpeting CB Gold sales beforehand. Unless of course it is a psychological ploy to aid the short sellers for their "co-operation" to achieve lower prices for the unnamed buyers of those CB sales. This theory might also help explain Another"s warning about "not liking the final outcome "of this exercise because all currencies will eventually be related to the international trading unit Gold but their creation and management will continue in much the same manner as they are now, aided by the electronic factor. Gold, therefore, will disappear into the underground Vaults that it usually inhabits when not being used for jewelry or industrial purposes. I am certainly no expert in this highly complex area as the above comments may reveal but I offer these thots especially in the light of Gold's most recent disquieting performance.
Internet Commentary #71 -
Posted on the Internet October 25, 1997 by "ZARDOZ"
Thoughts..Single World Currency -
ANOTHER, Vronsky, Pedro: Welcome back ANOTHER...your timing is perfect! Vronsky's reference to Oracle of Alberta's hypothesis about colluding powers orchestrating the demise of the multiple fiat currencies and yet elimination of the only alternative store of value, gold, is worth considerable debate on Kitco. Yesterday's events are stunning but I would suggest not surprising if the Oracle's hypothesis is correct. This is a confidence game...pure illusion...the Swiss haven't even sold gold but SOMEONE is intentionally manufacturing a depressed sentiment. As the Oracle asks: "who and to what end?". The question of who is buying the gold remains unanswered and perhaps we will never know. The Chinese (in a patient game to out last the Americans)?; the Rothschilds ( N.M. Rothschilds through the LBMA ) and other colluding merchant banking interests (the offspring of the J.P. Morgan dynasty, the Rockefellers) working under the fraternity of the Council of Foreign Relations (CFR) and the Tri-Lateral Commission towards the goal of global union (with key pieces of the puzzle now being put in place, the MAI, Free Trade Agreements, the Euro, etc.) and ultimately not the former code word "One World Order" (Novus Ordum Seclorum...which appears on the US $1 bill) but rather a new code word: Global Union.
We must not forget that if such oligarchies of power exist (carry overs of the powerful dynasties of the 19th and early 20th century) they can and will play a very patient game towards a most worthy goal: global union. Moreover, they are smart enough and experienced enough to know that secrecy is their greatest weapon and thus they will never be revealed in the main stream press or media. One only need examine the history of the Rothschild family to understand that maintaining such secrecy is the key to the longevity of wealth and power.
Such an objective for a global union must require a level playing field and the illusion that all men (and women) must become one family (homogenous) ...the Tower of Babel if you like. On the surface a move to a homogenous global "system" of currency, trade, language and even religon seems attractive, almost utopian. But is it? Is not the irony that heterogenity (i.e. our differences) which is ultimately our strength and creates resiliency. One has to seriously contemplate why the world has been stampeded into free trade agreements, agreements on multilateral investment, single common currencies, when intuitively we know that our local economies and societies will and are ultimately suffering. The tragedy is that when such a union is constructed, you and I will be beholden to the powers which control and "manage" those global systems.
I am in agreement with ANOTHER that what I believe we saw yesterday with Gold is a deliberate next step towards a worldwide confidence game (if ever one studies game theory one can envision what is being planned by viewing each progressive chess move) ...ultimately the game requires not only the collapse of the fiat currency system but also the collapse in confidence in gold (the only alternative store of value). Having cornered the supply of gold, those powers colluding towards the goals of global union will as ANOTHER suggests have corned most of supply of gold as to render it "worthless"....as a King of old might have collected all the gold (as they did in Germany in the great inflation) and thus rendered its value worthless and issued instead an alternative currency. The Oracle of Alberta and ANOTHER might be correct that with the orchestrated demise of both fiat currencies and destroyed confidence in gold (and a capture of majority supply holdings from CBs from all countries, excepting perhaps the US) that from the ensuing chaos, the PUBLIC will ask for extreme measures, a new currency, a new system...and low and behold, it shall be given on to them by the very powers who orchestrated the illusion.
My hypothesis is this for goldbugs and in response to ANOTHER's suggestion that bullion will be the preferred asset: neither stocks nor bullion will be of any use with the chaos that will ensue. I believe that neither stocks, options, or gold bullion will be worth anything should the markets and fiat currencies collapse. There may be a small window in which gold bullion prices soar, but if the powers to be render a market in gold bullion "valueless" as they have done in the US before (under Roosevelt, I believe ) then gold will simply be a black market commodity... those who have gold will be asked to turn it in (as they were asked in Germany and in the US) in exchange for another worthless form of a new global currency.
I leave you with these draconian thoughts....but are they preposterous?
Internet Commentary #72 -
Posted on the Internet October 25, 1997 by "JTF"
ANOTHER: Saw your post today -- I think there is a slighly different way to describe Swiss gold sales. The Swiss probably do have too much gold to support their currency - one of the strongest in the world. They are also very conservative, and treat gold the same way the Rothschild's do or Big Trader, et al. I submit that they will slowly sell some of their gold over the next ten or twenty years (if the public referendum passes). This way they will get the best price. No matter how you look at it there is a connection between the dollar, gold and oil, and recent charts show this. You are right that the gold paradigm has changed, and older historical gold charts are worthless to predict any future trends. The gold indicator of the "flight to safety" is being suppressed. I invite you to explain to us how gold (or its paper equivalent, or gold stocks) will fail to go up in value. I grant you that we may have a paper crisis -- the worldwide derivatives markets are trading at 60Trillion annually and doubling every two years. Kondratiev wave cycles cannot be ignored! Why don't you clarify your thoughts to us about the coming currency crisis? Is the ECU coming to the rescue, or do you agree with George Soros?
Internet Commentary #73 -
Posted on the Internet October 25, 1997 by "ZARDOZ"
A SINGLE WORLD CURRENCY...?
Are the dramatic market upheavals WORLDWIDE in recent weeks trying to tell us something that is NOT YET apparent?
The once mighty Tiger stock markets of Asia have seen securities prices plummet -- on Thursday Hong Kong's Hang Seng Stock Market Average losing more than 10% in ONE TRADING SESSION! The Nikkei penetrated the psychologically important 17000 level - purportedly the sacrosanct value where the Japanese banking system begins to come apart at the seams. Many South Sea currencies lambasted, and financial institutions beginning to crumble. And this last week the selling panic spilled over into Wall Street, which is dragging down most European stock indices.
For some time prior to this gold has inexorably been wasting away... that is until yesterday when it suffered a coup d'grace - diving more than $16 in a single day for a loss of 5%. It is painfully obvious a draconian change is taking place... but what is the prime motive force... and its purpose?
I cannot discard the helpless feeling something is going on that is not readily apparent... at least not to me. Last night in shifting through all the world's debris in search of some rhyme or reason for the cause of these dramatic market moves worldwide I reread the June report, "SEVEN GOLDEN THREADS OF THE GLOBAL QUILT" by the Oracle of Alberta - in which he alludes to the possibility of A SINGLE WORLD CURRENCY.
A Single World Currency? To contemplate such a scenario of power and control seems almost preposterous. But is it? Consider for a moment the events that would usher in a single world currency in an electronic medium. These might include: financial and stock market chaos; the collapse of the U.S. dollar, Yen or the stillbirth of the Euro; war in the Middle East; a worldwide banking crisis; or other global unrest.
Is the worldwide financial paradigm changing as we speak? Are global market forces reacting simply to imbalances, or is there a specific force orchestrating the financial and monetary machinations... and if the latter, what is their game-plan and purpose?
THE RED BARON
(November 10, 1997)
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