Battle for Financial Supremacy

November 5, 1999

The battle for supremacy pits Frankfurt against London. However, beneath the turbulent surface is fierce hand-to-hand combat of Gold vs the US$.

For several months I have been disturbed by numerous ludicrous actions of the Bank of England (BOE), which were devoid of even a smidgen of logic.

At first glance one is prone to rashly conclude these were mere examples of British Blunders. However, the "blundering" continued. This led me to believe there is much more here than meets the eye - as historically the British have never blundered for very long. Indeed, history is replete with insidious episodes of methodical British connivance, plotting and devious stealth actions to achieve their long-term goals.

In trying to ferret out the BOE's motives related to its heretofore "senseless" gold reserves sales via widely touted auctions, I was searching the web when I ran across the following article published on 1 January 1999. Frankly, I was dumb struck. What leapt to mind was, "Elementary, my dear Watson!"

FRANKFURT vs LONDON: THE BATTLE FOR SUPREMACY
(aka Gold vs the Greenback)

(BBC - L O N D O N)

"For hundreds of years London reigned supreme as Europe's financial capital.

Its dominant position in dealing in anything from foreign exchange to stocks and shares has never been in doubt.

           Until now.

The launch of the euro has seen the creation of a European Central Bank (ECB) that will set monetary policy across all 11 EU countries that have chosen to join up.

And the ECB is not located in London. Instead it has its headquarters in Germany's financial centre Frankfurt, which is now a serious pretender to London's crown.

A survey by property consultants Healey & Baker indicated that almost half of all senior executives in Europe believe Frankfurt could supersede London as Europe's financial capital.

So will the UK's decision not to adopt the euro in the near future leave London out in the cold?

Or will London be able to fight off the threat from Frankfurt and continue to eclipse continental capitals of finance?"

http://news2.thls.bbc.co.uk/hi/english/events/the%5Flaunch%5Fof%5Femu/in...

The above article aroused my curiosity. Perhaps there is a direct relationship between the illegal actions of the Gold Cabal, and Frankfurt's vying for financial control of Europe. Consequently, I began to delve further.

************************

Frankfurt vs London: The battle for supremacy

"LBMA TRADING 37 MILLION OUNCES OF GOLD DAILY"

Earlier this week the media announced the London Bullion Marketing Association (LBMA) is transacting the sales of 37 MILLION OUNCES OF GOLD... daily, I said DAILY.

Let's think about this. Apart from all the gold traded in New York, Zurich, Paris, Hong Kong, Singapore, Dubai, New Deli etc, LONDON TRANSACTS 37 MILLION ONCES OF GOLD DAILY. That's a little over 1150 metric tonnes each and every trading Day!!! Equivalent to approximately 44% of the entire WORLD'S ANNUAL MINE PRODUCTION !!!

Another way to express it is to say LONDON trades DAILY 155% more than the total amount of gold dug out of South African gold mines every single YEAR! Daily! DAILY!

This begs the questions: Who the hell is selling….
More importantly, who the hell is buying??!!

Not too many months ago an analyst - who uses the handle of RED BARON - published a series of reports about the mysterious machinations of the LBMA and its monumental daily gold trading. For those who have not yet read the series - called "THE GRAND LBMA EXPOSÉ: A Collective-Mind Analysis" - the series may be found at the URL below.

http://www.gold-eagle.com/research/redbaronndx.html

This is Financial and Monetary WAR!

My Internet investigations in the last few days obligate me to believe there exists a STATE OF FINANCIAL AND MONETARY WAR. Following are numerous documentations supporting my hypothesis that a "GOLD WAR" is being waged.

Uncannily, the participating combatants are eerily reminiscent of World War II: the US and England as 'allies' vs Germany et al as 'axis.' However, the sought after prize THIS TIME is not territorial acquisition nor human subjugation, but rather maintaining financial and monetary dominance.

Washington seeks to perpetuate the US Dollar Standard in the world, while London maintains financial control of all Europe. If the POG were allowed to rise, correspondingly the US dollar would rapidly lose its importance as international reserves, while the euro appreciates in relative value, thus becoming a reserves currency for many countries of the world.

It is imperative to recall that the Euro-block currency is backed by 15% gold. However, if the dollar price of the shiny metal rose to $500/oz, the euro gold backing would leap to 25%. Consequently, US monetary dominance would plummet as London's heretofore European financial control is transferred to Frankfurt (headquarters of the nascent European Central Bank). However, the dire consequences for the US and UK economies would not stop there.

A victory by the 'Euro-axis' would trigger a Crash in Wall Street and in its counterpart in London… which is already teetering at the abyss as I speak. On the other hand the dollar/gold status quo defended by the 'allies,' woud perpetuate US dollar dominance and London's financial control of Europe.

The stakes are so unbelievably high, the US is calling in markers from the likes of Kuwait, while the BOE continues wallowing in the embarrassing morass of seemingly illogical gold auctions - which are many times over-subscribed!

WHO ARE THE "RENEGADE" 15?

An interesting thought just hit me.

We have all read innumerable reports of the September 26, 1999 decision by 15 ECBs to dramatically limit gold sales and terminate all gold "leasing' during the next five years. HOWEVER, I personally have never seen the entire list naming the famous 15. Have you?

I would imagine the Golden-15 must necessarily must be composed of the 11-nation European Monetary Union: France, Germany, Italy, Belgium, the Netherlands, Luxembourg, Austria, Spain, Portugal, Finland and Ireland (the perennial thorn in England's side). BUT WHO, PRAY TELL, ARE THE OTHER FOUR?

The RENEGADE-15

The monumental decision which will affect the price of gold and FOREX values for the next five years was made by 15 ECBs. This 'Renegade-15 (from Uncle Sam's point of view) is composed of the original 11-nation charter members of the EMU, two aspirant members to the EMU (Greece and Sweden), and surprisingly, the Central Banks of England and Switzerland. Although early reports of the decision are still unclear, it is believed the BOE and the Swiss National Bank backed the accord, but exempting already planned gold sales from the decision.

In summary we list the 'Famous-15' who agreed to drastically curtail gold sales and to completely stop gold "leasing" during the next five years:

France, Germany, Italy, Belgium, the Netherlands, Luxembourg, Austria, Spain, Portugal, Finland, Ireland, England, Switzerland, Greece and Sweden.

In light of the BOE's heretofore blatantly obvious opposition to a rise in the POG, its joining the 'Famous-15' is highly suspicious. This writer suspects the BOE did so due to local political pressure groups (who do not want to risk being left out of the EMU), and to be privy to what goes on in the ECB chambers. Specifically, the BOE is there to SPY on the group of ECBs. And Switzerland is merely performing its vintage role of playing both ends against the middle (as it did in World War II).

War Lines Have Been Drawn

From the trenches of the 'allies,' there appear to be several distinct goals in this war. First, the US fervently desires to maintain greenback dominance as the world's prime reserve currency. This brings important benefits to the Americans. It postpones bursting Wall Street's Bubble. It allows for continued exportation of US inflation. Furthermore, it helps support the deteriorating value of the dollar. And finally, it helps keep the entire US economy afloat while the Democrats prepare for the presidential election. If Wall Street tanks and the greenback plummets before election time, Al Gore will not have a snowball chance in hell to carry the Democratic banner to the inauguration. And although England is deceptively wearing the colors of the European Monetary Union (EMU), clandestine support of its former colony (USA), will allow London to maintain financial control of continental Europe.

On the other front, the "axis" is dominated by Teutonic might and leadership (who else?). The EMU works to arrest US dollar's influence in European commercial operations. Moreover, it wants to exert its financial influence in global business, because it has earned the right to do so. In essence the euro is challenging the greenback's near monopoly as an international reserves currency.

Since the birth of the euro on January 1, 1999, it has been under attack from Uncle Sam's fiat currency. Until just weeks ago the euro had lost an embarrassing 15% vis-à-vis the US dollar. However, the 15-ECB decision was a mandate to the US Fed that "ENOUGH WAS ENOUGH!" It was the first salvo across the USS-Dollar bow.

"Arms" Capacity of both Combatants

Although the US is battling from advantageously higher ground, the EMU has significantly more "arms and ammunition." Of course, I am referring to gold reserves.

Whereas the USA counts upon gold reserves of reportedly 8,135 tones, the 15 ECBs can muster 13,131 tonnes (which includes England's gold, net of all the planned auctions). Following is a breakdown of EMU gold reserves.

European Central Bank Gold Holdings (tonnes)
EMU Holdings Non-EMU Participants
Germany     2,960
France         2,547
Italy              2,074
Netherlands    842
Portugal          500
Spain              486
Austria            369
Belgium          237
Finland              50
Ireland               11
Luxembourg       7
Switzerland    2,590
UK                     300
Greece              113
Sweden               47







 
Total EMU   10,083 Total Non-EMU   3,050
Total gold reserves of the "axis" --- 13,131 tonnes

The Euro-gold block counts upon substantially more gold "ammunition" than its Yankee opponent, which reportedly has only 8,135 tonnes. That is to say the 15-ECBs possess 61% more gold reserves than the US Fed.

Undeniably, the US Fed wants to continue to push the POG down for reasons already stated. On the other side of the Big Pond, the combined European forces under Teutonic command are determined to make the euro a world currency. One way to ensure this noble goal is to support the price of the noble metal. And if push comes to shove in this monetary and financial war, this writer believes the Fed will come up a day late and a dollar short -- especially because the 15-ECB's decision is supported by the Bank of Japan (albeit the Nippons have very little gold).

Greenspan's "allied" troops are DESERTING au masse

"General" Greenspan's threat to the Gold World:

"Nor can private counterparts restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise."

Mr. Greenspan said, "CENTRAL BANKS," …bankS, like in the plural. Without one iota of doubt he was referring to a collusion of Central Banks acting in concert with the specific objective of CONTROLLING THE PRICE OF GOLD, so it could not rise.

But alas, many of the central banks have seen the light, and consequently, deserted the ranks of Uncle Sam. 15 ECBs declared peace with the gold world when on last September 26 they announced gold sales would dry up to a trickle - and gold "leasing" would cease all together during the next 5 years.

Mr. Greenspan, give it up! Your allies are abandoning you au masse. Soon, your #1 mercenary (BOE) will also go AWOL, because the British people will finally realize they are getting a ROYAL SCREWING...literally. And the WHORE Kuwait will be forced by Arab brothers to bring home the family jewels (ie gold).

Mr. Greenspan, until now you have won only Pyrrhic Victories -- your War is lost! Best to sue for an honorable peace than to suffer a degrading unconditional surrender...lest you go down in monetary infamy.

78 percent of the yearly gold supply is made into jewelry.

Gold Eagle twitter                Like Gold Eagle on Facebook