first majestic silver

Greenspan will Become A Verb

October 26, 2001

As the economy weakens, and almost exactly duplicates the horror of 1929-31, many rightfully blame a lot of the mess on Alan Greenspan. Greenspan, a one-time member of an intimate group of Any Rand's, seems to have forgotten all he ever thought and believed. (If you have never read ATLAS SHRUGGED, you must do so immediately, as it will change your life) The Randian philosophy of gold money, small, almost non-existent government, logic, freedom, initiative, and in short…unfettered capitalism, seems to have evaded his thought and actions. By running up the interest rates, injecting "liquidity" into the currency supply, and thereby causing the stock market, and most pointedly the NASDAQ to run up to unheard of P.E. ratios and prices, the calamity was certain to happen. It did, and lowering rates nine times won't help. In the future, when this happens, it will be known as "Greenspaning."

Greenspan's federal reserve is not a Constitutional item. (I won't capitalize it) It is a private institution, mostly owned by foreigners, such as the Rothschilds, and should be abolished immediately. It was founded at the same time as the income tax, and both have proven to be the ultimate freedom, personal income, and net worth abolishment devices. Nothing in our history has had such a ghastly effect on our freedoms and ability to be solvent, as has the income tax and the federal reserve. The manipulation of the gold market by central banks and others, pales in comparison to the trillions of dollars lost and unrecoverable, due to the income tax and federal reserve. The federal reserve is controlled by a "board of governors" technically, but it is Alan that has the final say. His unconstitutional interest manipulations, (Greenspaning) have caused millions to literally go from wealth to poverty. His "Greenspaning" have caused millions to lose their jobs, and tens of thousands to declare bankruptcy so far, with tens of thousands more that will be unable to avoid it in the near future.

Brutus saw Caesar's Ghost twice, and died by his own dagger. I wonder if Greenspan, as he lays in bed at night, is visited by the ghosts of Ayn Rand and Ludwig von Mises. Insiders say that when bathing, Queen Elizabeth plays with rubber duckies that have crowns on them. Maybe Alan plays with crowned rubber duckies also, as he seems to be the king of the American economy. Greenspan, who can use a thousand words to say nothing, must have a guilty conscience. How sad it is, that one tiny little man can wield so much influence. Unconstitutional influence at that. Suppose, and it will never happen with the airheads that inhabit the halls of Congress, but suppose anyway, that there was no "central bank," and the treasury issued currency only as was backed by gold. Suppose no bank could loan dollars it did not have on deposit. Suppose all coins had to have value, and be made of silver and copper. Just suppose.

That would only be a starter for me. I'd additionally bring the troops home, declare neutrality, abolish the CIA, stop the millions of illegals, nullify NAFTA, declare a 50% tariff on oriental goods, and tariffs on others that import government subsidized items, such as, but not limited to, Canadian wheat or New Zealand beef, and encourage states to require point of origin labels on all foodstuffs. I'd abolish the IRS, and 90% of the bureaucracy in D.C. and make it into a ghost town until all those fancy shmancy, ugly bureaucrat headquarters buildings could be sold to entrepreneurs. I'd return all "public lands" to the states to which they Constitutionally belong, make airlines be responsible for their own safety and airports, with no government subsidies. I'd abolish all federal welfare and subsidy of any kind, including foreign aid. This would bring on an economic boom as the world has never seen or contemplated in their rosiest of dreams.

America would once again have money, rather than unbacked currency. Americans could keep what they earned, and the tariffs would pay for what was left of the federal government. "Capital gains," would be a word in Webster's, rather than a nightmare. No more would foreigners land here and disappear into the countryside, never to be heard from again, until they destroyed something such as the World Trade Centers. If a state wanted to be so foolish and continue welfare and high taxes, they'd witness the productive class moving to other states. The states, under the Constitution, were supposed to compete with each other, and not all be rolled into a federally controlled mass, with no economic individuality. But getting back to economics, after my flight of fancy:

When will the above happen? When pigs fly. When will gold manipulation end? Everything in business or economics ends when there is no longer any profit to be made. Governments are selling their gold, in the vain hope that: (1) the public will believe it is valueless, old fashioned, and a pain in the butt to mess with, and (2) when they sell their gold for paper currency, they will have to print less, forestalling the inevitable. Does the federal government own any gold? They buy gold to make the Gold Eagles. The last inventory made at Ft. Knox, was during the Eisenhower administration. After that inventory, locals around Ft. Knox reported that a large number of heavy vans were seen leaving the area. Was that the American gold? I believe it was. Gold stored in New York is titled as being on deposit "for" some entity other than the US government. England is almost out, as are other governments that have been selling…always to anxious buyers. When governments have no more to sell, that part of the manipulation will be over.

The lease manipulation will cease, when it no longer is profitable, and that time is pretty close. When those leasing want their gold back, those who have leased will be forced to buy it on the open market to repay their loans. The borrowed gold has long ago disappeared into jewelry, or other items. When you "short" something, or "lease" it, it is with the hope that the loan can be repaid at a lower price, and the difference is the profit. When banks or governments had gold sitting in their vaults, earning no interest, they put it to work with 1% interest. The gold was carted off and sold by the borrowers, leaving the vaults empty other than for a lease. A piece of paper taking the place of gold. Now, the piece of paper probably demands back that which was borrowed. Those that borrowed, find that the price is higher than when they borrowed. They then manipulate the price so the repayment will be less painful. Prices can be lowered by buying a thousand 'puts' perhaps, or other means that a powerful entity can use to manipulate a market. It hasn't worked too well. Gold is about $20 higher than a couple of months ago, in spite of all their efforts.

Silver is actually scarce, and why the short supply isn't reflected in its price is an unknown. When the price of an item is far below the cost of production, as silver is, can this false price last long? As I write this, silver is about $4.25 per ounce, and at no location in the world, that I know of, can it be mined at that cost. Nowhere. Silver is often a by-product of copper smelting, but that can't be the reason for low prices. Take advantage of it, regardless of the reason. Silver and gold are beautiful, historic money, and need no backing. It requires wealth, expenditure, exploration, and huge risk, to produce silver and gold. It is said it costs a couple of cents to run off a hundred dollar bill. The same cost as with a dollar bill. The only difference is the imprimatur. How shallow we have become. How trusting, and foolish the majority are, when they save what little they have left in paper currency denominated devices.

The Euro officially is aborning. By Feb 17th, all French francs must be turned in, or they will be worthless. French, by the thousands, are taking out their sequestered paper francs, and turning them in. These are usually francs on which no taxes were paid. If you convert to less than 8,000 Euros, the government will overlook the transaction. Thousands of French are scurrying from bank to bank converting their francs to Euros.

Suppose one day, you went to the super market, and paid with green dollars, and got in change, a red, white, or blue dollar? "Sorry, we have to take your green dollars and substitute the new dollar" the clerk may say. Then America will do the same as the Frogs are now doing, and which action has happened everywhere in the world, over and over again. Why not here? Why are Americans so bedazzled with the dollar, that they refuse to admit it is virtually worthless, compared to a half century ago, and continues to decline in purchasing power daily? Habit, I suppose.

Hundreds of billions of dollars are now being injected into the system. The lag time between huge injections and prices going through the roof isn't too long. While inflation is an increase in the currency supply, and always results in prices going "up," there is a lag time, which we are experiencing now. It requires a bit of time for the increase in currency to chase goods and services, and for the goods and services to go up in dollars, but it in 100% of the cases, it happens. It is an irrefutable law of economics, that prices HAVE to go up, when the currency supply is inflated. You'll see. The terrorists aren't through. When they attack us the next time, the stock market will go down, and precious metals will go up. Anyone know when that will happen? I don't…but it will. No one knows what will happen tomorrow. Don't get caught. Protect yourself.

In the Aztec language the name for gold is teocuitlatl which means "excrement of the gods."
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