Correcting Antal Fekete's Historical Silver Errors
Published : February 25th, 2013
8357 words - Reading time : 20 - 33 minutes
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Presented February 2013 by Charles Savoie
In "The Double Whammy of Geopolitical Gold Games reposted in
February 2013 (from January 31, 2008) by Antal Fekete he
stated some errors of fact! Marco Polo, guide us on this excursion to China!
Bruce Lee, help our reflexes to be as fast as yours! May we not be slap happy
like Jackie Chan! Wo Fat, do not mislead us! Antal mentioned China's silver
money system going back to the 16th century, then stated"
"CHINA'S EXTERNAL TRADE WAS INSIGNIFICANT, but the volume of
silver currency for domestic use must have been enormous. There was an
avalanche of silver from abroad raining on China."
China's external trade was insignificant? Where did they get the
silver from for their silver system? Primarily from mines in Mexico and Peru;
probably 85% of it or more. Some also came from the Iwami Ginzan silver mine
in Japan which operated for 397 years. He says there was an avalanche of
silver from abroad raining on China. Why should other nations send enormous
volumes of silver to China? What would their motive be, something for
nothing? Resolving this we find Mister Fekete in serious error claiming that
"China's external trade was insignificant."
Here (visit the page
, read the article) we find mention (16th to 19th
centuries) of China's "STAGGERINGLY LARGE EXPORT SECTOR"
Export of silks, spices, artistic
porcelain, jade carvings, tea, rice and other trade goods was paid for by
Europe and Britain in silver. Insignificant and staggeringly large don't
reconcile; one of them is wrong; Fekete is wide of the mark. Why don't people
check for certification before making claims? Before the silver mines of
Mexico and Peru opened and large amounts of silver flowed to Spain, England
and Europe,
China had copper and bronze coins, and its own paper currency debacle.
Fekete rolled his off balance dice
again:
"As far as it is known, SILVER
NEVER FIGURED IN CHINA'S EXPORTS (except re-exporting foreign-owned refined
silver). China is the only country in the world that has consistently run
trade surpluses since 1950. WHY SHOULD THE CHINESE EXPORT SILVER, WHEN THEY
COULD EXPORT ALMOST ANYTHING ELSE?"
Gee! We already saw that Chinese
trade goods were paid for in silver; we'll see more of this as we progress.
Silver was most of what China used to pay for imported goods over a
multi-century span, after they had accumulated meaningful stores of silver;
their silver system ran from sometime in the year 1571 when it started out on
a smaller scale to an official end on November 3, 1935. The New York Times,
November 4, 1935, speaking of China going off the silver standard, said:
"Banknotes issued by the
government owned Central Bank of China become legal tender---debts payable in
silver may be settled in the new legal tender and all holders of silver must
surrender it to the Central Bank and accept notes in exchange at face
value."
First China had to accumulate
silver in exchange for goods they had to offer, which they did; secondly,
they were able to use silver acquired for exports to pay for imported goods.
Here's some historical data on the
silver for opium business the British were leaders of (some Americans like
the very dirty fur trader, central banker and real estate magnate John Jacob
Astor, and French were involved):
"In 1729, its import was 200
chests, and by 1790 it amounted to over 4,000 chests (256 tons) annually. In
1858, about twenty years after the first opium war, the annual import rose to
70,000 chests (4,480 tons)." ~ http://en.wikipedia.org/wiki/Opium_Wars
Next we
see:
 
It seems
incredible that Fekete didn't mention the British opium "trade" run
out of British India, which was a scheme the British hatched to
"recover" British silver, and silver paid to China by other
nations. Speaking of the early 18th century:
"Western
nations are experiencing an outflow of silver bullion to China as a result of
the imbalance of trade in China's favor, and they bring opium into China as a
commodity to trade to reverse the flow of silver." ~ http://afe.easia.columbia.edu/main
China banned opium in 1726, but
that was some 35 years before the British East India Company, with a charter
from the Crown, undertook to initiate mass exportation of opium into China.
Opium addiction soon spread to other areas of China as more ports opened to
trade with Westerners. Imports of opium rose from
15 tons in 1730 to over 75 tons in 1773. The article also
mentions:
"By
1830-31, the number of chests of opium brought into China increased fourfold
to 18,956 chests. In 1836, the figure exceeded 30,000 chests. In financial
terms, trade figures made available by both the British and Chinese
governments showed that between 1829-1840, a total of 7 million silver
dollars entered China, WHILE 56 MILLION SILVER DOLLARS WERE SUCKED OUT BY THE
SOARING OPIUM TRADE. Opium once supported the economies of several nations
and that Britain in particular was responsible for the enslavement of
millions of Chinese through their addiction to opium. It's hard to imagine that
not one, but two wars were fought to force a sovereign nation to open its
ports to accept opium. In one of the more shameful episodes of the British
Empire, opium was used to balance their trade deficit with China - regardless
of the human toll caused by their imports. The Emperor did not want European
goods in exchange for tea, porcelain, silks and spices that the English
imported from China. The only form of trade that China would accept was
silver; but because Britain operated on the gold standard, they had to buy
silver on the open market at great expense. This created a trade imbalance
that was heavily weighted toward the Chinese. One of the largest opium
traders of the day was Jardine-Matheson, a company still in existence
today."
This huge conglomerate is today a
$60 billion + annual enterprise in luxury hotels, supermarkets, real estate,
auto parts, financial services and other sectors. The company has an
impressive skyscraper in Hong Kong. It's controlled by various Pilgrims
Society dynasties---the Keswicks, Sassoons, Rothschilds and Warburgs of
Federal Reserve fame. The Sassoons were originally opium dealers from
medieval Persia who linked by marriage to the Rothschilds. It has banking
relationships with the old Hong Kong & Shanghai Banking Corporation---now
known as HSBC, a top tier global banking powerhouse whose U.S. subsidiary has
been listed on the roster of the Silver Users Association! The Jardine
emblem, by God, is that of an opium poppy!
According to John Francis Davis in
"The Chinese--A General Description of the Empire of China and its
Inhabitants" (London, 1857), page 24:
"The rapid growth
of the trade in opium, and the CONTINUED DRAIN OF SILVER, have greatly
alarmed the government."
The New York Daily News, October
15, 1858 made reference to the "Parliamentary Blue Book" which
claimed that British export-import trade with just the two cities of Canton
and Shanghai, for the years 1844 through 1856, amounted to more than
437,700,000 pounds sterling, a truly fantastic sum on the part of certain
antecedents of founders of The Pilgrims Society of Great Britain, who are the
paper money cartel! British opium exports into China peaked in 1880 with
105,580 chests! An opium chest weighed 150 pounds according to the aggressively bigoted.
None of these
figures are as verifiable as the silver Mr. XYZ investor has in his personal
vault; but then, only he can verify it and that's as it should be. The point
is, however, there was AN ENORMOUS DELETION OF SILVER FROM CHINA due to the
opium trade. Chinese called opium the "heavenly demon."
With
typical tea and crumpets British arrogance, the terms of the Treaty of
Tientsin after the second opium war included China allowing foreign
missionaries in the country for purposes of "converting the heathen
Chinese;" more likely, peddling more dope!
The Chinese
eventually took large scale action against the "traders;" this led
to the "gunboat diplomacy" of the Opium Wars (1839-1842 and
1856-1860) under which the British, who remain as of 2013 of the persuasion
that their destiny is to rule the world through the United Nations
organization, got control of Hong Kong.
From the University of Wisconsin
Press we note:
"The
main catalyst for this downfall of the economy was THE LOSS OF SILVER TO
BRITAIN. In 1839, Lin sent a memorial to the Emperor that explained the
amount of taels spent on opium, an estimated 100 million annually. The Qing
government functioned on annual revenue of approximately 40 million taels;
this demonstrates the extreme amounts of silver leaving China. The Qing
treasury took an enormous hit from the opium trade. In 1793, it contained
roughly 70 million taels of silver. By the year 1820, the treasury was
reduced to a mere 10 million taels of silver. This large export of Chinese
silver and depletion of the Qing reserves ballooned
the exchange rate. GREAT AMOUNTS OF SILVER FLOODED OUT OF THE EMPIRE TO PAY
FOR THE FOREIGN DRUG."
Apart from
wanting the world to be poor so as to be in control of the globe, the power
crazed British wanted the silver back so as to have hard currency to pay
troops in wartime, and Britain---not Germany--- is easily history's leading
warmonger. In "The Opium Trade," which appeared in Merchants
Magazine & Commercial Review, New York, August 1850 (pages 147-159) in
particular we see in reference to China:
"...a
heavy drain of silver---the VAST QUANTITY OF SILVER THAT LEFT THE TERRITORY
to pay for opium."
According
to John Francis Davis in "The Chinese--A General Description of the
Empire of China and its Inhabitants" (London, 1857), page 24:
"The
rapid growth of the trade in opium, and the continued drain
of silver, have greatly alarmed the government."
It's well
established that British "merchants" forced Chinese into opium
addiction at gunpoint:
The opium
addict, eyes bulging out of his head!
We take tea and crumpets before we go to bed!
Sooner or later he drops stone cold dead!
For him, not one British tear is shed!
The Bombay
Telegraph & Courier for May 17, 1852 remarked:
"We
sell them opium, whereby sooner or later they destroy themselves. As an
article of commerce opium stands out without a parallel. From the skilful
management and cultivation of about 100,000 acres of land, the East India
Company produces an article which, sold at a profit of several hundred per
cent, yields to them net revenue annually, of nearly three millions sterling.
We do not here include the Malwa opium, seventh of the whole revenue of the
country, raised from an extent of more than a million of square miles. From
the transport of this drug by a few vessels named opium clippers, a few
mercantile houses are also realizing magnificent profits, while the Chinese
themselves, the grand consumers of the drug, part with five or six millions
pounds sterling per annum. The most astounding fact of the opium trade needs
yet to be specified, that Christian sensibilities have not yet been
adequately roused in relation to its iniquities and horrors. That a
professedly Christian government should, by its sole authority and on its
sole responsibility, produce a drug which is not only contraband, but
essentially detrimental to the best interests of humanity; that it should
annually receive into its treasury crores of rupees, which, if they cannot,
save by a too licentious figure, be termed the price of blood, yet are
demonstrably the price of the physical waste, the social wretchedness and
moral destruction of the Chinese; and yet that no sustained remonstrances
from the press, secular or spiritual, nor from society, should issue forth
against, the unrighteous system, is surely an astonishing fact in the history
of our Christian ethics. This fact can, however, be easily explained. There
is a prestige about this great trade which serves to hide its intrinsic
repulsiveness. On the principle whereby the slayer of an individual is
execrated as a murderer, and the slayer of ten thousand is treated as a hero
and half deified, we can understand how a trade, which, if carried on by one
or two of the baser sort, would be denounced as smuggling and piracy, is
divested of its illegal and immoral characteristics by the patronage which
emblazons it, the numbers connected with it, the immense capital embarked in
its prosecution, the glittering private fortunes realized by it, and more
than all, the immense addition to government finances. We find it very
difficult to entertain the idea that a traffic whose mainspring is in
government regulations, whose affairs are conducted by government officials,
whose sales are in the flush of day, at public auctions in a city of palaces,
whose dealers are princely merchants; which employs as its transports
splendid clippers, whose commanders are educated men, and, still more, WHOSE
RETURN FREIGHTS ARE SOLID, WEIGHTY SILVER; and, to crown the whole, whose
operations from beginning to end are sanctioned by the explicit enactments of
the Imperial Parliament, can best we dare venture to say it may be demonstrated
to be commercially suicidal, politically inexpedient, nationally dangerous,
judicially contrary to the law of nations, ethically unjust, and, in relation
to that God who desires mercy and not sacrifice, wholly iniquitous and
abominable."
Let's
evaluate some possible statistics based on the figures referenced in the
Bombay Telegraph:
5 or 6
million pounds Sterling = 60 to 72 million ounces x Sterling conversion
factor of .925 = 55.5 to 66.6 million ounces per year x how many years? Over
a period of just under 16 and one half years (until the opium trade allegedly
eased off), at an average silver outflow of 61 million ounces per annum,
gives the figure of over 1 billion ounces! Certainly the rate of silver lost
from China because of opium would not have been constant, but then the opium
trade was ongoing for over two generations as of 1852, and it positively
extended on a large scale past 1870. The year 1881 is referenced here
http://www.sycee-on-line.com/Opium_tax.htm in regard to opium taxes payable
in silver and 20 years later we still find:
The Boxer Protocol of
September 1901 resulted from China again being
invaded by Westerners who imposed reparations on them:
"450
million taels of silver were to be paid as indemnity over a course of 39
years to the eight nations involved. Under the exchange rates at the time,
450 million taels was equal to US$ 335 million gold dollars or £67 million,
approximately equal to US$6.653 billion today. The Chinese paid the indemnity
in gold on a rising scale with a 4% interest charge until the debt was
amortized on December 31, 1940."
Part of the reparations from the second opium war that ended in 1860 was
forfeiture of 16 million silver bars ("taels.") A measure of
weight, the tael varied. The Canton tael was 37.5 grams (1.20565oz troy)
whereas the Shanghai tael was 33.9 grams (1.08991oz). The thrifty British
would not have missed the trick of holding China to heavier silver taels. By
way of flashback in this chronology, the site mentioned the 1830s:
"The export of tea,
silk and chinaware was not able to cover the costs for opium imports: the
Chinese trade balance tended negative, silver money left the country. The
economical impact of the Opium Wars and the penetration of the Western powers
in the Chinese trade system was mainly seen in
currency problems. The huge amount of opium import could not be balanced by
an equal amount of exports of Chinese goods. According to the treaties, China
had to pay tens of millions of silver Dollars as war damage reparations to
the Western powers. China's trade balance was critically endangered by these
facts, and moreover by an inflation of the silver currency against the gold
standard that was adopted by the Western countries."
I sincerely hope we've
answered Fekete's question, "Why should the Chinese export silver, when
they could export almost anything else?" Drug addicts will do anything
to get a fix; and silver was the only payment the British accepted! However,
there's another reason totally apart from opium as to why China should export
silver since the Maoist takeover; we'll cover this also, with documentation.
Sucking silver out of
China, pushing opium over there!
Demonetize silver in America, Rothschild's a billionaire!
Let all the world's little people sink into despair!
We're the world's bankers, you're in our crosshair!
This film
from 1934 is of interest, as is the fact of a Rothschild being on the
governing board of the silver trading New York Commodity Exchange (New York
Times, July 5, 1933, page 27). No question vast amounts of Chinese and Indian
silver must have been in the COMEX whirlpool before silver trading migrated
to Canada after the Silver Purchase Act of 1934 and FDR's EO 6814 on August
9, 1934 due to a 50% profits tax. Today the Hong Kong Mercantile Exchange has
the usual names found at its site---Bache, Warburg, Morgan, HSBC; and
Rothschild in the background.
Tthe Rothschilds established
a presence in China in 1838, and again in 1953 less
than 4 years after the Red takeover. See the image of the silver bar cast
with Chinese lettering, at this page! Franco Bernabe, chairman
of Telecom Italia, is a director of Petro China (552,810 employees) and is
vice chairman of Rothschild Europe.
We won't cover details of the Latin
Monetary Union except to note that as of 1870, only Britain wasn't on a
silver standard. But, with British subversion ever attacking silver, in
1871-1872 a series of European nations demonetized
silver. One excuse was that the Papal States debased silver coins and
exchanged them elsewhere in the continent for standard silver coins. To amend
Fekete's statement about silver being rained down on China; more correctly,
China was a silver sponge that Britain and Europe first exported silver to;
then recaptured much of it by turning tens of millions of Chinese into opium
addicts at gunpoint; then China was hit by recurring waves of silver
demonetization, 1871-1878; it's highly likely that after the Spanish American
War of 1896 when we took over administration of the Philippine Islands, that
Philippine silver started being dumped on world markets, especially since
Charles Conant, a highly placed man, advised the Philippines to "go cold" on
its circulating silver money; and before that silver already took another hit
from New York banks who boycotted Morgan dollars in 1878; then in 1920, the
British debased their own silver coins from .925 to .500, and dumped a flood
of silver onto the Shanghai market, seriously shrinking prices. In
"Silver At The Crossroads," Mining Congress Journal, February 1947,
pages 85-86 we see:
"The
effect of this unfortunate move was to REDUCE THE WORLD PRICE OF SILVER BY AT
LEAST 50 PERCENT within a period of about a year. THE SHANGHAI SILVER MARKET
WAS SWAMPED WITH BRITISH SILVER. Auction sales of silver followed which had a
far-reaching effect upon the economy of China, then on a silver standard. THE
MOMENTUM OF THE PRICE DECLINE THAT ENSUED CARRIED THE WORLD PRICE TO AN ALL
TIME LOW OF 24.5 CENTS PER OUNCE."
The all
time low wasn't 25 cents as Fekete says in 1932; it was 24.5 cents and
occurred in February 1931. Silver may have even pushed lower than this! See
Commercial & Financial Chronicle, New York, February 14, 1931, page 1136;
the British Valentine's Day gift to silver was a nightmare from hell. Nevada
Senator Pittman also referenced the all time low silver price as 24.5 cents
at a speech in Denver at the Metals Mining Convention (Mining Congress
Journal, February 1937, start page 38). The next huge hit to silver, and
larger still, was when Britain demonetized Indian silver in 1926 and
commenced dumping melted silver rupees on world markets, especially China, by
1928. The New York Evening Sun, August 6, 1926 reported that world silver
markets plunged into panic on news on England's intent to dump 400 million
ounces onto world markets! By early 1930 China was suffering terribly due to
the British attack against silver. The China Weekly Review (Shanghai) January
11, 1930, page 200 reported:
"The
entire business machinery of China is in chaos."
Chinese
export trade was devastated by the drop in the silver price; then, pretending
to come to silver's rescue, in summer 1934 Congress passed the Silver
Purchase Act of June 19, 1934 (it did help Western states mining interests)
which had the larger outcome of sucking so much silver out of China in
alarming quantities, that the Commercial & Financial Chronicle, April 13,
1935, page 2453, said the loss "disrupted China's entire monetary
system." The C & FC, May 18, 1935, page 3307 stated:
"The
Chinese Ministry of Finance said on May 12 from Shanghai, that the silver
purchasing policy of the United States is causing a severe drain on China's
silver reserves and a sharp contraction of the nation's currency and
credit."
In the Commercial
& Financial Chronicle, March 23, 1940, we note on page 1859, in testimony
of Secretary of the Treasury Henry Morgenthau Jr. before the Senate Committee
on Banking and Currency on March 19, 1940:
"As
you know, the Treasury has made special arrangements with various foreign
countries relating to the purchase of silver. The first and most important of
such arrangements was made with China. In June 1936 and from time to time
thereafter the Treasury entered into arrangements with China pursuant to
which it acquired approximately 565,855,000 ounces of Chinese silver."
Over a 46
month period---all of it AFTER China hemorrhaged so much silver that it was
shoved off its silver standard---the United States Treasury continued TO
VORTEX ANOTHER HALF BILLION PLUS OUNCES of the element with 61 neutrons out
of China. This was also referenced in China Weekly Review, January 15, 1938,
page 183, "Huge Sales of Silver Under Kung-Morgenthau Agreement."
Before this period, the Treasury during 1935 absorbed 494MOZ from foreign
sources, and we are fair to assume this was predominantly Chinese silver
(Mining Congress Journal, December 1943, page 22). In the first 36 months
after the Silver Purchase Act of 1934, the Treasury took in from all sources
a per annum average of 426,892,333 fine ounces (Mining Congress Journal,
November 1937, page 45). That's an average of 179,316,333 ounces more than
world production of 247.576MOZ in 1936. Another point--- according to Frank
Fetter in "China And the Flow of Silver" (Geographical Review, New
York, January 1936) page 40:
"Shanghai
stocks of silver reached an all time high of 449,840,000 ounces in June
1934."
The
Shanghai was China's largest silver market; the peak figure for its hoards of
silver was LESS THAN 80% of the 19,409 tons of silver (565.855MOZ) referenced
by Morgenthau that he sucked from China in just ONE particular episode he
became specific about! Frank Fetter of the anti-silver money American
Economic Association (secretary-treasurer 1901-1906, president 1912) and held
professorships at such Pilgrims Society universities as Cornell, Stanford and
Princeton, received a Guggenheim fellowship (grant) in 1937-1938 and was an
"economic advisor" to the Central Bank of Ecuador in 1940; with the
Lend-Lease Administration in 1943-1944 then with the State Department till
1946. Fetter was also a member of the American Commission of Financial
Advisors, a banker front through which he had direct dealings with China in
1929, possibly touring its silver vaults. If we could know roughly how much
silver--- (in Indian crores, Chinese taels and sycee---bullion bars shaped
like a boat--- or any other measurement) was drained out of China by Hong
Kong & Shanghai bank from the close of the second Opium War to the end of
1935, it would be very revealing. Fetter was a member of the elite Cosmos
Club in D.C., facilitating discreet meetings of politicians with Wall
Streeters. See Fetter in Who's
Who, 1947, page 751.
H.H. Kung
was an agent of the Anglo-American bankers who became Finance Minister of
China, 1933-1944. In 1935 he declared private ownership of silver officially
illegal (so as to be able to export more to the U.S. Treasury) and he started
issuing the "pinyin" paper note; the word means "legal
tender." The British-American financiers, who formally organized
themselves into "The Pilgrims Society" in 1902-1903 for world
monetary cartelization, literally played silver ping-pong ball with China for
generations! There was nothing wrong with Britain and Europe originally
paying for Chinese exports with silver. Certainly however the opium addiction
stratagem for recovering silver from China, with probably over 100 million
Chinese over the years suffering the torments of the damned and passing away
early because of it, was as immoral as "business" gets. For long
periods, the Anglo-American financiers sucked
immense volumes of silver out of China; then suddenly dumped titanic amounts,
whipsawing their silver system; then finally, sucking silver out of China
again with the Silver Purchase Act of 1934 and still later, by other means,
which we shall touch on with documentation, unlike professor (?) Fekete. I
don't get the validity of scholarship without documentation! Neither should
you! They destabilized silver in China by wicked intent!
There was a
"popularity champ" I knew in high school who insisted that
Greenland was a Canadian province; that it was larger than Brazil; and that
George Wallace was governor of Georgia. I countered that Denmark owned
Greenland; that it equals less than a third Brazil's territory and that
Wallace was governor of Alabama. The onlookers sided with the popular fellow
and dismissed my counter claims due to mere personality issues. He was a
football player and I was not! And did I ever get looks of condemnation! One
of his pals even showed me a world map depicting Greenland as larger than
Brazil (many maps show this distortion!) I sincerely hope, friends, that
documentation matters more to you than the cult of metals personalities.
Greenland became quasi-independent in 1979 but when I had the dispute in 1971
I was 100% correct. I hope being correct in this presentation doesn't get me
exiled like the Dalai Lama due to irrational popularity issues.
The World
Monetary Conference in London in 1933 allowed the British to continue dumping
silver out of India over a four year span into 1937 at an average rate 35
million ounces per annum (New York Times, Sunday, July 23, 1933, page 16,
"Text of Silver Treaty Concluded at London.") The vast majority of
that undoubtedly arrived in United States Treasury vaults due to the Silver
Purchase Act and would not necessarily have been trans-shipped from China.
The back and forth actions in silver against China used by Britain and later
greatly assisted by their "Pilgrim Partners," the soulless American
financiers and their subalterns in government, had the desired effect of
forcing China and the entire Far East, including India, off silver money
systems. The Anglo-Americans dragged the world to full fiat! The Mining
Congress Journal, February 1957, page 114 attributed the second World War and
the fall of China to Communism to the British/American refusal to restore
silver as a monetary medium in world trade. The object of the Silver Purchase
Act of 1934, from these conspirators viewpoint, was to concentrate into
Treasury vaults the single largest stockpile of silver in history, which they
intended to use for global price management objectives; this worked
magnificently until just after the start of the new millennium.
Fekete
tells us "the Chinese central bank had to take all the silver offered to
it...this situation lasted right up to 1949 when the Communists took over.
Several Western historians blame the Communist victory on the unprecedented
silver inflation that Western governments inflicted on the Chinese economy by
their insane silver dumping policy before World War II."
How does
this claim on Fekete's part square with the facts? Could an alligator
snapping turtle wake him up? His presentation contained not one documented
reference (zero); the reader is just expected to take his word for everything
he says, because he wraps himself in the aura of an alleged authority with
titles like doctor and professor and is cited by sites and suit and tie
groups who organize metals conferences; yet, certain of his key points are
demonstrably incorrect as documented in the public record. Please REFER TO
HIS DISCLAIMER at the end of his opinion piece! It's damn unlikely the
Chinese "had to take all the silver offered" when the United States
Treasury was sucking in at least hundreds of millions of ounces of silver
annually, and I do mean stoutly beyond then current mining output.
This
reminds me of another "expert" who on January 27, 2010, at
http://news.silverseek.com/SilverSeek/ told readers, apparently with no
research background, that "silver was never made illegal to own."
On January 27, 2010, I contacted SilverSeek with a correction to this well
intending fellow who is by now widely read on the silver subject. His
incorrect statement was made against a background of expertise in an entirely
unrelated field (fallacy of erroneous appeal to authority). The error was
promptly corrected, but could I get mention as supplying the correction? Of
course not, because many arbitrarily excluded me from the metals community's
panel of experts, notwithstanding the fact that I've presented far more
silver historical research---all documented and cross-referenced--- than
anyone else see http://www.silver-investor.com/archives/index.html and
http://silverstealers.net/tss.html and www.nosilvernationalization.org The
fact that prominent metals longs haven't mentioned The Pilgrims Society as
being the central threat to precious metals investments is simply because of
absence of awareness. Please don't fall for the "ad populum"
fallacy; that is since someone isn't mentioned by this or that commentator,
site or organization, that therefore, findings presented are unimportant. The
error of fact at Silver Seek was at any rate promptly corrected after the
site operators notified the gentleman of his mistake. Now to return to
Fekete's errors; he butted heads several years ago with Jason Hommel and came
out poorly as Jason said:
"Antal
is living in a fantasy land."
To which I
may ask by way of addenda:
"In an
Antal Fekete deal, do you get to ha ha ha?"
To be
certain, we have no way of knowing exactly how much silver flowed into China
for export purchases by Colonial powers from circa 1560-1571 to the start of
the opium trade; and we cannot be certain how much silver that vile business
removed from China; but we do know the amount removed was colossal and may
have reduced China's silver holdings by over half; we also know that
substantially more silver was raked into the United States Treasury via the
1934 Silver Purchase Act, than the amount of silver the British conspirators
dumped out of India. One of today's titans of world banking, HSBC, was built
on the opium business. We also can't be certain how much silver dumped by
European nations beginning at the start of the 1870's ended up in old Cathay,
the archaic Western term for China. In the 1920 event, Britain dumped 70MOZ
silver that came from debasing its coins from .925 to .500 under Sir Austen
Chamberlain, Pilgrims Society (The Times, London, January 15, 1931, page 18).
It was in any case far overreached by Treasury absorption of silver off the
world market less than a generation later. Fekete is correct that significant
amounts of silver have been smelted in China and returned as bullion to
Western sources; this transpired well past the year he mentioned (1950.) But
before any Chinese refineries engaged in this, he ask"
"Why
should the Chinese export silver, when they could export almost anything
else?"
Was this
question asked to achieve misdirection, or just out of lack of perception of
the big picture? Why would China export silver after the Red takeover in
1949? One of the most likely reasons would be to acquire military technology.
Western bankers panting obsession to suppress silver was and remains so great
that they'd export weapons technology to have silver to feed to industrial
users to hold prices low so as to suggest innate value to the paper banknotes
they inject, like viruses, into the economy. Fekete admits that:
"China's
primitive economy under Mao was in no position to put that silver to industrial
use."
Didn't he
answer his own question as to why China would export silver? This was 1950 to
roughly at least the late 1960's, that the best export the West would accept
from China was silver itself; for purposes of Western assistance to industrialize
and acquire military tech! Another wave of silver exports from China, as in
leasing, seems to have commenced in 1999. As silver leasing has never been a
publicly accountable activity, other episodes are likely to have transpired.
Silver exports from China to the West since 1950 aren't the easiest thing to
document, but they took place and varied from the Red takeover to just after
Y2K.
For
documentation, in The Economist (London), September 16, 1961, page 1097, we
find:
"China
is expected to sell about 40 million ounces of silver in western markets this
year. These sales have delayed considerably the expected exhaustion of
"free" silver held by the United States Treasury. Under an Act of
1946, the United States Treasury can sell non-monetized silver at a price of
not less than 90.5 cents a troy ounce, but only to American users. For many
years, production of silver has fallen far short of demand, but the gap has
been filled by demonetizing coinage and, to a certain extent, by sales of
Russian silver. It is one of the impenetrable mysteries of the East how much
more silver China has to sell, in what form it is held and where it
originated. China produces little or no silver, but as in most Eastern
countries large quantities of silver would formerly have been distributed
among its population in one form or another. The cause of the urgent sales at
a time when many are forecasting a significant rise in the price of silver is
obviously China's pressing need for currency with which to pay for its
increased imports, particularly of grain, from the West."
For
cross-referencing, in the Wall Street Journal, November 29, 1961, page 3,
under a subtitle paragraph, "Red China Could Affect Market," we
read--- "One mining executive noted that a big factor in the market could
be Red China, which is estimated to have sold at least 40 million ounces of
silver in world markets in the first 10 months of this year. A spokesman for
Handy & Harman, silver fabricators, asserted: "There will be no
shortage of silver."
In 1965
President Johnson formed the President's Special Committee to Study East-West
Trade, naming among others to this panel, Charles Englehard of Englehard
Industries and the Silver Users Association (Who's Who, 1971, page 667). No
surprise; in 1960 Englehard was national co-chairman of Businessmen for
Kennedy/Johnson. He was chairman of Englehard Industries as of 1953 and as of
1971 a director of Rand Mines (Johannesburg, South Africa); International
Silver Company (sterling tableware sets); Hudson Bay Mining & Smelting;
American South African Investment Company (gold); National Newark & Essex
Banking; Prudential Insurance (listed a few years ago in the Silver Users
Association); and others. He was a commissioner of the Port of New York
Authority and was a trustee or director of Committee for Economic
Development; U.S. Committee for Refugees; American Museum of Immigration;
John F. Kennedy Memorial Library; American Heritage Foundation; Eleanor
Roosevelt Memorial Foundation; Atlantic Council; Foreign Policy Association.
His office was at 113 Astor Street in Newark, New Jersey. Englehard was
literally bristling with connections overseas, especially with China, and
showed extraordinary interest in foreign policy. Even his office location
suggested interest in China, silver and paper money! John Jacob Astor was
part of the opium trade; he was the main domestic power in the second United
States Bank (1816-1836) and he was a silver manipulator. The Delanos,
Roosevelts and others were up to their necks in opium! Englehard, who was the
inspiration for the "Goldfinger" character in the James Bond film,
died in 1971. His wife Jane was born in Qingdao, China; their daughter Sally
has been a major Democrat campaign funder (more silver users influence!)
Englehard perennially issued bearish statements about silver to damage longs (which is why I squeezed the image of the SOB).
Englehard
was a director of Eurofund, set up by Pilgrims Society member James Russell
Forgan of 45 Wall Street, who had strong ties to the silver using Du Ponts
(Pilgrims Society). Fay, author of an attack on the Hunt silver play (see
below) also said that Charles Englehard imparted a "buccaneering"
spirit to Englehard Corporation! With his involvement in the East-West
concept, Englehard must have been thinking about raids on Fu Manchu's last
silver! I'm glad I have some Englehard silver, rather than his sorry hide, in
storage!
Again as to
Chinese silver exports the Wall Street Journal, May 22, 1967, page 4 had this
to say--- "Typical of the relative unconcern shown by most large scale
users in the U.S. was International Silver Company, Meriden, Connecticut,
which said it doesn't expect to ever see a time when there's insufficient
silver to meet our needs. An official noted that there are "staggering
amounts of silver above ground in the hands of hoarders and others and this will
become available when the price moves up." The halting of sales of
government owned silver overseas is expected to work a serious hardship on
purchasers in Britain and Japan, and may possibly draw Red China into the
world silver market as a major supplier. Some observers claim soaring prices
may draw Red China---until a few years ago, a leading contributor to the
world market---back into the picture. CHINA IN RECENT YEARS HAS APPEARED TO
IGNORE CONSIDERATIONS OF PRICE, offering metal for sale in the West as a
means of securing foreign exchange or as a political tool to influence
neutral countries."
The Wall
Street Journal can be trusted to not mention crucial facts, such as China
trading silver for U.S. technology; that's why China would "ignore
considerations of price" and why they'd export silver versus other
things, Western bankers wanted it for price suppression! At
http://isbndb.com/d/book/selling_technology_to_china.html prepared for
members of the National Council for U.S./China Trade, we see technological
transfer to China. No, I can't show you direct references to China trading
silver for technology. Sensitive info is tough to come by! But it seems
inevitable to have happened often and on a large scale. Chairing the NCUSCT
as of 1975 was a Pilgrims Society member with many globalist connections---
William A. Hewitt, who married into the John Deere agricultural machinery
fortune, who was also a member of the visiting committee of Harvard
University's East Asian Studies department. He was a director of Continental
Illinois Bank, which had connections to the Chicago Board of Trade; the bank
was mentioned by Stephen Fay (1982) in "Beyond Greed---The Hunt Family's
Bold Attempt to Corner the Silver Market." Hewitt was also a director of
the U.S./U.S.S.R. Trade & Economic Council (Who's Who, 1979, page 1483)
In 1957 the
Pugwash Conferences were established by Cyrus Eaton Sr., a Rockefeller family
associate, named after his home at Pugwash, Nova Scotia. At pugwash they say
they're interested in disarmament issues; but the Carnegie Endowment for
International Peace is known as a warmongering entity. I believe Pugwash has
been used as a vehicle for transferring military technology to China in
exchange for hard silver. A look at the 2002
participants at the Pugwash Conference is an
eyebrow raiser; including mainland Chinese, The Rockefeller Brothers Fund and
the Carnegie Corporation are key sponsors of the Pugwash Conferences. In
other words---silver price suppressors! Also supporting Pugwash events is the
Cyrus Eaton Foundation, in the Rockefeller Building at Cleveland, Ohio.
There is currently a Pakistani retired
General in Pugwash management; Pakistan is allied with
China.
The
Trilateral Commission, a Pilgrims Society subsidiary/front organization, has
been heavily interested in U.S./China trade see this report dated 1982
with anti-monetary silver activist Robert V. Roosa (Harriman/Rockefeller
interests) of 59 Wall Street (Pilgrims Society). It's likely the
deindustrialization of America, with the huge manufacturing shift to China,
was handled by the Trilaterals, under David Rockefeller's supervision.
The East-West Center (founded
in 1960) at the University of Hawaii recently saw appointments to its board by
former Secretary of State Clinton who is a close flunky of major gold
suppressor David Rockefeller. Silver is a major reason why our elites are so
active in maintaining organizations linking us to China; and the Governor of
the People's Bank of China, Zhou Xiaochuan, is a "former" member of
Rockefeller's Trilateral Commission (noted member as of 2003). I admit
disappointment reading Ted Butler, in a letter to Xiaochuan, telling
him (IF he read the letter) ---
"It
has been reported that your bank has sold or leased more than 300 million
ounces of silver, since 1999. I know that your Bank's silver sales were not
done with your full knowledge or approval."
Disappointment,
because the realists among us grasped very early on that there is a
monumental "fix" in against silver, with governments around the
world and all their regulatory agencies, legislatures and courts! The head of
the bank was unaware of its silver leasing? No chance, Ted. And no way at any
nanosecond of its existence since 1975 was the CFTC or anyone in it ever
going to allow silver longs an even set of rules! Gensler is as bizarre as
the Irish demon in "Rawhead Rex" (1986).
In his May
24, 2004 article on China and the commercial Comex silver shorts
http://www.investmentrarities.com/ted_butler Butler said most of silver to
satisfy deficit since 1999 comes from China; in other posts he mentioned the AIG involvement.
Other major
globalist groups linking China with the West include the United States/China
Business Council showing Maurice Greenberg, long
associated with American International Group (AIG) which Ted Butler used to
allege to be involved with removing silver from China and the National
Committee on U.S./China Relations http://www.ncuscr.org/ which also shows
Greenberg as a director. These groups cited are highly influential in
international business, totally connected to the huge silver suppressing
banks, and form a powerful community of interest. The NCUSCR has as officials
Henry Kissinger (Pilgrims Society); Madeleine Albright (Pilgrims Society);
Tom Kean (Pilgrims Society) of the 911 Commission; and retired Admiral Joseph
Prueher (very likely a Pilgrims member). According to this, Admiral
Prueher "has been helping the Chinese climb all over U.S. defence
secrets for years."
It may
widen your eyes to discover that Albert Helmig, who was
president of the Hong Kong Mercantile Exchange 2009-2012 was on the NYMEX
(New York Mercantile Exchange) board, 1991-2000 and chaired no less than
seven committees; COMEX merged with it in 1994; Helmig was a director
(1994-1997) of International Precious Metals Institute, which is heavily
interlocked with the infamous Silver Users Association; and Helmig was a
member of the National Committee for U.S. China Relations, 1993-2000. Now we
see definite linkage of silver suppressors with Chinese trade with the U.S.
Is it wise
to help China industrialize and arm? For cheap silver, have U.S. elitists
made concessions? If Chinese missiles can strike the U.S., sound the alarm!
Will these scandals be aired in Congressional sessions? Will we learn the
full extent of transgressions?
Technology
is why the Chinese "would export silver, when they could export almost
anything else."
Remember
also that Butler named the Central Bank of the Philippines as being a
significant source of silver leasing some years
ago (January 10, 2002).
The Asia Society was founded in 1956 by John D. Rockefeller 3rd and
certainly includes mainland China in its focus. Today it features two
Rockefellers, a Speyer and Harold McGraw III as trustees. The Rockefellers have been at the heart of
precious metals suppression since at least the 1870's. In "How To Trade
With Communists---Interview With David Rockefeller," U.S. News &
World Report, August 13, 1973, showing him posing with an interested
Chou-En-Lai, Red Chinese Premier, with Rockefeller commenting we note---
"China is developing a broadly diversified industrial structure. It's quite impressive."
(New York
Times, August 10, 1973). Rockefellers and Rothschilds, working together, but
who is more powerful? Take your pick! The Independent, London, April 16,
2004, said industry insiders count Rothschild wealth "not in billions
but trillions;" the 1973 expose by William Hoffman, "David---Report
on a Rockefeller" said "The power he wields crosses all borders,
can make or destroy governments, start and stop wars, profoundly influence
everyone's life." What these sources haven't said is that the R & R
clans aren't alone in the world power structure. The other dynastic families
are represented with them in The Pilgrims Society of London and New York; and
combined they may be worth more than both of these.
We see
Western globalization organizers deeply involved with the industrialization
of China (and the former Soviet Union) and believe they're the reason China
has indeed dumped lots of silver onto world markets after Mao Tse-tung seized
power in 1949. Antal Fekete's idea that China hasn't had silver exports since
1950 is out of touch with facts. Where he stated---
"Nobody
knows how much silver the Chinese Communists found in bank vaults and in the
safe deposit boxes of Chinese merchants who fled the country, when they took
over the mainland. Nobody knows how much silver is still hidden in the
mattresses of Chinese peasants. The amounts must be enormous. The best
estimate is that most of that silver has never been consumed and still exists
in monetary form."
He was sort
of correct; we'd have to be psychic to be aware how much silver fled China
ahead of Mao's troops nor how much they captured probably for bargaining
purposes with the West for technology transfer. Silver hidden in mattresses?
No; that's where you'd hide paper currency. Past small amounts, silver
becomes too uncomfortable to sleep on. Whose best estimate is Fekete talking
about? That also would demand someone, even Chinese authorities, to be
clairvoyant. Antal said gold was demonetized "100 years after silver, in
1873." Whoops! The rest of us thought that Nixon closed the gold window
at 1500 Pennsylvania Avenue Northwest in August 1971! Two years off may not
sound like much, but see how far you get with Civil War historians if you say
Fort Sumter was attacked on April 12, 1863! If we allow cult status figures
in our community, they must still be accountable to facts! That applies no
matter who references them. Finally Fekete
commented:
"This crisis has been in the
making for over a century, involving the so-called demonetization of both
monetary metals. The move was inspired and led by the United States."
No, the crisis dates way back
before the last century, and the United States neither
inspired nor led the moves against monetary metals---the British get that
credit, and the Americans, though militarily stronger, are junior
partners financially. Will this correction to Fekete be posted by all the
sites that linked his article? Absolutely not; ask them why! Fekete says
after the dollar and paper currencies fail, China will run the world. Not a
bad thesis; however, I believe the Anglo-Americans are conspiring to draw
China and Russia into head on conflict over Middle East petro and other
resources including the entire Caspian Sea region, after which the New World
Order of the Anglo-Americans could again leap forward. Maneuvring nations to
fight each other has been a hallmark of international finance since the
Rothschilds perfected it centuries past; but don't kid yourself, they aren't
the only major private financial power and are in league with the others via
The Pilgrims Society!
I present you here with 50+
references to back up my case, not including links to any of my original work
nor to those of one brief similar issue to this; Fekete
supplied no references. What kind of learned professor is he? Here's
one I won't include on the scoreboard but it's of interest
In 2011 China was
the world's third largest silver producer at 103.9 million ounces. Are they
exporting most silver mined on their territory anymore? Not a chance! Any
miners sending concentrate or dore to China for smelting into
three niner could abruptly find their metal has been seized if wartime
returns. Meantime some business is as usual, from June 21, 2012, we find "Rothschilds and
Rockefellers team up, target rich Chinese."
Is China
actually the "big silver short?" I dearly doubt it; more likely,
it's The Pilgrims Society and the banking entities it operates. How nice for
our megabankers if blame could be shifted elsewhere! And as with the flow of
silver to China over a multi-century span, the camarilla of Anglo American
power plans to recoup gold and silver that has shifted to China and Russia in
recent years. I worry much less about Brazil, Russia, India and China ("BRIC"
countries) than our own leadership who, with the British, remain the main
threat to our metals ownership, to our sovereign individual liberties as
expressed in the Bill of Rights, and are the world's leading warmongers. They
have to warmonger; for you see, this is intimately connected to synthetic
money creation. But with the Internet's many uncensored sites, risk to the
Anglo American bankers is revving up! They marched all over silver for
centuries like General Sherman marching through Georgia; now the General is
ready to march all over them!
Banxter
metal manipulator, what the hell are you?
Always prowling for someone to lay waste to,
More of a nasty demon, with each turn of the screw,
Beware! This time you ain't gonna breeze through!
"While
it is recognized that silver has had its day, there is a certain reluctance
to celebrate the last rites."---The Economist, London, October 13, 1962,
page 145
To close,
here's a tragically comical quotation from Newsweek, June 25, 2007, page 35:
"Foreigners
prize dollars---especially $100 bills---as a store of value."
Recommended
reading on China and Silver---
And the
five part 324,000 word series at same archived site "Britain Against
Silver"
Watch for
"The President And Precious Metals" to be released soon!
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David Morgan
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Mr. Morgan has been published in The Herald Tribune, Futures magazine, The Gold Newsletter, Resource Consultants, Resource World, Investment Rarities, The Idaho Observer, Barron's, and The Wall Street Journal. Mr. Morgan does weekly Money, Metals and Mining Review for Kitco. He is hosted monthly on Financial Sense with Jim Puplava.
Mr. Morgan was published in the Global Investor regarding Ten Rules of Silver Investing, which you can receive for free. His book Get the Skinny on Silver Investing is available on Amazon. His private Internet-only newsletter, The Morgan Report, is $129.99 annually.
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