Why is Gold so low when currently a large new demand for gold exists in Jewelry, electronics products, and other items needing gold? For example, Pakistan, India, China, South Korea, and other Asian coun- tries are moving to gold possession in jewelry as their currencies weaken.
- Because, central banks have secretly been, for over ten years, loaning gold to investors at 81% lease rate.
- Investors sell the gold to market, gambling that gold with drop even further.
- And, with the gold going down, they buy it back at a lower price.
- Then, the investors replace the gold they bought with cheaper gold and make a hugh profit with the lower price gold recently purchased from the central banks.
What this all does is drive the price of gold further down as the central banks "sell" it off. They are not dumb! They know what they are doing: causing gold to drop in value and price before the big gold panic of 1998 strikes and they can make a killing too.
Now, here's the difficulty: The gold lease rate is the highest it has ever been in history! What does this mean? Simply, the worlds central bankers know that a gold panic is imminent. And what does a gold panic mean; it means that world currencies may devalue even more as gold skyrockets in price--that's what it means. Because there'll be a rush to gold.
And here's the reasons why:
- When the least rates go up, it means lower profits for gold borrowers.
- With the gold lease rates at 81%, less gold can afford to be borrowed, except by the very, very wealthy, and then sold to market. By this very action, less gold is available to the market. Yet, the demand is up.
- Therefore, those who need the gold for exacting electronic parts, such as computer circuit boards, embedded chips, or other industrial buyers of gold for necklesses and jewelry, cause the price to go up since they have to have it inorder to stay in business.
With the supply down--mining companies are not producing as much for one; and it is a very tedious process to mind gold, then the price of gold rises since the damand is very high now.
- Gold investors knowing this (knowing that gold must rise in price soon, are literally pushed into this market climate to buy now, before the gold price shoots through the ceiling; or they will be buying high and selling it back high and making little or no profit. Simply put: They must replace the borrowed gold now before the gold market price skyrockets.
You have three things working to drive the price of gold up:
- Rising Lease Rates
- Increasing Consummer Demand
- Gold Investors Needing Gold
What is inflation? The government says we have no inflation, however, they now use a different definition than they once did. Everyone thinks inflation is "rising prices." That is a symptom of inflation.
Here's how it works: Once, in America--around the 1800s, everyone, and in the world knew that inflation was the printing of more money. Yes, that's right, more dollars, more Deutchmarks, pounds, Yen, you name it. An increase in the money units of exchange meant and was defined as inflation.
However, as times changed in the world, so did the definition of inflation, but the actual facts events didn't. That is, when governments print more money, the value of that money goes down. And when the value of that money goes down, prices must go up in order to com- pensate for the drop in the value of money. Simply put: In order to get the same value of money that is now worth less, you must charge more to get more dollars to equal what less dollars once had in buying power.
We export our inflation abroad. We also hide it in the Consumer Price Index. This is a means by which the U.S. attempts to quantify the prices consumers pay for things. Are they going up...or down...or holding? That is always the question.
By now, if you have been reading these pages and subscribing to the newsletters we recommend, you know that the average citizen is paying too much for stocks. That's right! The stocks are inflated! Also, more than ever in the history of the U.S. stock market, over 74% of Americans are invested there. They have their savings, their retirements, their schemes, etc. They are even borrowing on their credit cards to invest in mutual funds. WOW! A plan for disaster. And the American citizen has the highest bankruptcy rate ever.
But...and here's the rub... the CPI does not include the price of stocks! Get it! Practically all America is invested in stocks and mutual funds. They are overpriced. Yet, Mr. & Mrs. U.S.A do not realize they are in an inflationary economy because of the CPI and the way our government does the tally.
Fractional Demoninational Gold Pieces:
There are four characteristics of money:
- It must be divisible.
- It must have high value in relation to its volume and weight.
- There must be recognizability, and ...
- It must have transportability. What money may lack for in recognizability, it is readily made up for in demand.
Gold satisfies all these requirements. For portability, we recommend fractional gold pieces, especially for barter on small items but larger than that for which you would barter for with your silver.
Follow the advice given above for gold and silver purchases, but also get 1/4 ounce gold coins, non-bullion, such as the $5 dollar American gold piece. However, this piece cost around $128 per coin. Earlier mintages cost approximately $163 per coin.
We thus recommend the non-bullion Argentina coin, containing 1/4 ounce gold, same as the U. S. five-dollar gold coin, but cost only $90 per coin. You can get these from Investment Rarieties, Inc. Ask for Ellen Petty--1-800-328-1860.
Get as many as you can afford. You will need this fractional denomination when things heat up. You don't want to be flashing $20 U.S Gold Pieces, such as Augustus Saint Guadens or Liberties.
"To avoid outright economic collapse-Asian governments are devaluing currencies. Currency devaluation is a hidden form of hyper-inflation--the last desperate act before outright economic collapse. How do you protect yourself from currency devaluation? Gold & Silver."
--The Economic Outlook; Vol. 7. #1. January 1998.
"By the IMF's [International Monetary Fun] own documentation, the international banking community is trying to create a new global currency that will be backed by gold valued at between $3,000 to $5,000 per ounce." --The Economic Outlook; Vol. 7. #1. January 1998.
"The idea that the Mexican loans went well is a myth.The press bally- hooed that Mexico repaid the money the U.S. loaned them. In reality Mexico simply borrowed more money from the IMF, to pay back the U. S. Now Mexico owes far more money -- 2 1/2 times as much -- and is in worse shape than ever.
"Korean problems are not limited to the peninsula. 70% of Korea's foreign debt is held by Japan. As bad as Korea's problems are, Japan's are far worse. Japan is cash-starved. A Korean default would lead to a Japanese crisis, the likes of which the wold has not experienced."-- The Wall Street Underground, January, 1998; Vol. 3. No.9.
"Korea has defaulted." -- The Wall Street Underground, January, 1998; Vol. 3. No.9. Call 612-890-3553 for subscription
If Japan, China, etc., call in their loans to the U.S., or sell their treasury bonds,a Total Collapse is looming around the corner for America.
|What Devaluing The Currency Means |
Thailand, Indonesia, Taipan, South Korea, Greece, Brazil, Russia, and as of this writing tonight (01/12/98), our sources say China is considering to, or will devalue their currency.
- When the above countries devalue their currencies, this makes their goods cheaper in the U.S. and Europe.
- This means goods and raw products cost less with devalued currency to manufacture, and you pay cheaper wages.
- You devalue a currency by having the central banks print more money, make notations in bank entries, computer blips on a screen, and half a dozen or more ways to create more money. When you have more money, you have inflated the currency.
- Now, the glut of cheaper goods flowing into the U.S. will create severe competition for U.S. manufacturers. These firms will storm Washington, D.C. They will scream three things:
- You levy trade restrictions, which Washington won't do; or,
- Devalue the dollar to raise prices of imported goods.
- When you devalue the dollar, you (the Federal Reserve, which is our Central Bank) injects more money into the system.
- More money means prices rise.
- This means more money in circulation to buy more goods, means goods go up in price.
- But, if the market crashes, you have bank runs, which implies you must inflate (print more money) currency, but the U.S Bureau of Engraving and Printing can't do it fast enough because of physical limitations. That's the way the system is set up. In other words, most "currency" is in the form of checks, CDs, computer blips, etc. The Feds can't cover all this with real money.
- ...and what do you want in Bank Runs? Physical cash, you know, that stuff that is green with some old dead president's picture or statesmen on it; and copper clad coins.
- Do the above, or expect huge layoffs and unemployment.
Are you prepared for whatever they do? Do you have food-storage; Gold and Silver Coins; Cash on hand; and copper-clad coins? See more on this site for how to survive in good shape for The Coming Chastisement.
However, Be Warned of The Following From 1933!
UNDER THE EXECUTIVE ORDER OF THE PRESIDENT
Issued April 5, 1933
All persons are required to deliver
ON OR BEFORE MAY 1, 1933
all GOLD COIN, GOLD BULLION AND GOLD CERTIFICATES now owned by them to a Federal Reserve Bank, branch or agency,
or to any member bank of the Federal Reserve System.
FORBIDDING THE HOARDING OF GOLD COIN, GOLD BULLION, AND GOLD CERTIFICATES
By virtue of the authority vested in me by Section 5(b) of the Act of October 6, 1917 as amended by Section 2 of the Act of March 9, 1933, entitled " An Act to provide relief in the existing national emergency in banking and for other purposes" in which amenditory Act Congress declared that a serious emergency exists. I, Franklin Delano Roosevelt, President of the United States of America, do declare that said emergency still continues to exist and persuant to said section do hereby prohibit the hoarding of gold coin, gold bullion and gold certificates within the United States by individuals, partnerships, associations and corporations and hereby prescribe the following regulations for carrying out the purpose of this order:
Section 1. For the purpose of this regulation, the term "hoarding" means the withdrawal and withholding of gold coin, gold bullion or gold certificates from the recognized and customary channels of trade. The term "person" means any individual, partnership, association or corporation.
Section 2. All persons are hereby required to deliver on or before May 1, 1933, to a Federal Reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all of the gold coin, gold bullion and gold certificates now owned by them or coming into their ownership on or before April 25, 1933, except the following:
(a) Such amount of gold as may be required for legitimate and customary use in industry, profession or art within a reasonable time, including gold prior to refining and stocks of gold in reasonable amounts for the usual trade requirements of owners mining and refining such gold.
(b) Gold coin or gold certificates not exceeding in the aggregate $100.00 belonging to any one person; and gold coins having a recognized special value to collectors of rare and unusual coins.
(c) Gold coin and gold bullion earmarked or held in trust for a recognized foreign government or for a foreign central bank or the Bank for International Settlements.
(d) Gold coin or gold bullion licensed for other transaction (not involving hoarding) including gold coin and gold bullion imported for re-export or held pending action on applications for export licenses.
Section 3. Until otherwise order, any person becoming the owner of any gold coin, gold bullion or gold certificates after April 28, 1933, shall, within three days after receipt thereof, deliver the same in the manner prescribed in Section 2; unless such gold coin, gold bullion or gold certificates are held for the purposes specified in paragraphs (a), (b) or (c) of Section 2; or unless such gold coin or gold bullion is held for purposes specified in paragraph (d) of Section 2 and the person holding it is, with respect to such gold coin or gold bullion, is a licensee or an applicant for license pending action thereon.
Section 4. Upon receipt of gold coin, gold bullion or gold certificates delivered to it in accordance with Section 2 or 3, the Federal reserve bank or member bank will pay therefor an equivalent amount of any other form of coin or currency coined or issued under the laws of the United States.
Section 5. Member banks shall deliver all gold coin, gold bullion and gold certificates owned or received by them (other than as exempted under the provisions of section 2) to the Federal Reserve Banks of their respective districts and receive credit or payment therefore.
Section 6. The Secretary of the Treasury, out of the sum made available to the President by Section 501 of the Act of March 9, 1933, will in all proper cases pay the reasonable costs of transportation of gold coin, gold bullion and gold certificates delivered to a member bank or a Federal Reserve Bank in accordance with Sections 2, 3 or 5 hereof, including the cost of insurance, protection and such other incidental costs as may be necessary, upon production of satisfactory evidence of such costs. Voucher forms for this purpose may be procured from Federal Reserve Banks.
Section 7. In cases where delivery of gold coin, gold bullion or gold certificates by the owners thereof within the time set forth above will involve extraordinary hardship or difficulty, the Secretary of the Treasury may, in his discretion, extend the time within such delivery must be made. Applications for such extensions must be made in writing under oath addressed to the Secretary of the Treasury and filed with a Federal Reserve Bank. Each application must state the date to which the extension is desired, the amount and location of the gold coin, gold bullion or gold certificates in respect to which such application is madeand the facts showing extension to be necessary to avoid extraordinary hardship or difficulty.
Section 8. The Secretary of the Treasury is hereby authorized and empowered to issue such further regulations as he may deem necessary to carry out the purpose of this order and to issue licenses thereunder, through such officers or agencies as he may designate, including licenses permitting the Federal Reserve Banks and member banks of the Federal Reserve System, in return for an equivalent amount of coin, currency or credit, to deliver, earmark or hold in trust gold coin or gold bullion to or for persons showing the need for the same for any of the purposes specified in paragraphs (a), (c) and (d) of Section 2 of these regulations.
Section 9. Whoever willfully violates any provision of this Executive Order or of these regulations or of any rule, regulation or license issued hereunder may be fined not more than $10,000.00 or if a natural person, may be imprisoned for not more than ten years, or both; and any officer, director or agent of any corporation who knowingly participates in any such violations may be punished by a like fine, imprisionment, or both.
This order and these regulations may be modified or revoked at any time.
FRANKLIN D. ROOSEVELT
For Further Information Consult Your Local Bank
GOLD CERTIFICATES may be identified by the words "GOLD CERTIFICATE" appearing thereon. The serial number and the Treasury seal on the face of a GOLD CERTIFICATE are printed in YELLOW. Be careful not to confuse GOLD CERTIFICATES with other issues which are redeemable in gold but are not GOLD CERTIFICATES. Federal Reserve Notes and United States Notes are "redeemable in gold" but are not "GOLD CERTIFICATES" and are not required to be surrendered.
Special attention is directed to the exceptions allowed under Section 2 of the Executive Order
CRIMINAL PENALTIES FOR VIOLATION OF EXECUTIVE ORDER
$10,000 fine or 10 years imprisonment, or both, as provided in section 9 of this order
Secretary of the Treasury
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