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As I told someone recently, my blog is not written for the gold novice. The
concepts and principles I entertain are not found in any Gold 101 class. If
you find them interesting, you should probably go read ANOTHER and FOA and
then come back. In fact, you should probably read them a couple times to
really understand where I’m coming from. The links are to the right.
This weekend my blog turns two! And over the past two years I have watched
the number of regular daily visitors grow from 30 to 3,000. Very roughly,
that’s an exponential growth rate that transpired at about one order of
magnitude per year. From 30 to 300 the first year. From 300 to 3,000 the
second. And these are the people that stop by almost every day.
To some extent, I believe this growth has a natural limit in the size of the
online gold community. Because while my regular daily visitors have grown,
the total number of views on certain posts that received wide distribution
remained pretty much the same. Ranging from 10,000 to 20,000 readers total on
the top posts for the last year and a half.
I share this data without interpretation.
My posts can certainly be read for their face value only, which is how most
people read them. And at that level, most counter-points to my concepts
appear relatively straight forward. But there is a deeper level of
understanding that is available. And at that level comes a certain reward,
which some of you know. The rest of you have no idea what I’m talking
about. That’s okay. Perhaps I’m crazy! Onward…
Setting the Stage
To set the proper frame of reference for this post I am going to
paraphrase/quote from a couple recent articles and then summarize the
relevant perspective. The first article comes from the Wall Street Journal
yesterday and the second from Bloomberg a couple days ago. What I hope
you’ll pay attention to is the concept of “The West” as a
distinct entity on this planet.
How to Win the Clash of Civilizations
By Ayaan Hirsi Ali
WSJ
Paraphrased for meaning
and to avoid receiving a copyright violation notice from Dow Jones:
In the mid-1990’s, the late Samuel Huntington coined the term
“The Clash of Civilizations” referring primarily to the clash
between “The West” and “Islam.” But there are many
more than just these two civilizations. There are perhaps seven or eight
total. But the most important three that are the building blocks of the
post-Cold War era, according to Huntington, are the Western, the Muslim and
the Confucian.
The balance of power among these three civilizations, Huntington argued (a
year or two before Another started posting), was shifting. The West was
declining in relative power, Islam was exploding demographically, and Asian
civilizations—especially China—were becoming more and more
economically powerful. He also said that a civilization-based world order was
emerging in which states that share cultural affinities would cooperate with
each other and group themselves around the leading states of their
civilization.
This view was not popular with the powers that be in The West. Their vision
was for One World, a New World Order if you will, based on Western norms.
Huntington’s paradigmatic view of a multipolar world was rejected from
the left by those who believed all states could be brought together under a
single standard of liberal capitalist democracy and never go to war with each
other again. A one-world utopia, if you will. And from the right by the
equally rosy scenario of a "unipolar" world of unrivalled American
hegemony. Either way, Huntington’s detractors believed we were heading
toward “One World” (presumably under the financial rule of the
$IMFS).
China Drains Obama Stimulus Meant for
U.S. Economy
By Andy Xie
Bloomberg Opinion
Partially paraphrased
for brevity and relevant meaning:
Deflationists in the West are in for a rude awakening, probably in 2012.
Stimulus is the only thing the West ever does when a recession hits. But in
today’s globally-connected economy (where dollar inflation is
automatically exported abroad through its reserve status) it isn’t
effective in the best of circumstances, and is outright wrong for what ails
the West right now.
Trade and foreign direct investment total half of global gross domestic
product. Multinational corporations drive both. They shop around the world
for the lowest-cost production centers and ship goods to wherever the demand
is. Demand and supply are dislocated (unbalanced and bass-ackward). So when a
government introduces stimulus, the initial increase in demand doesn’t
necessarily boost local supply.
Just as water flows down, [Western] stimulus affects low-cost [Eastern]
economies more, wherever it is initiated. As the West pours money into the
global economy through large fiscal deficits or central banks expanding
balance sheets, the emerging economies are drowning in excess liquidity.
Everything is turning red-hot.
The ideal end to this East-West goods-dollars exchange would be for the
multinational corporations to shift production to the West because the cost
of labor had shifted. This would have to happen before inflation takes hold
in the West. This is impossible because the cost of labor in the West is
still 10 times more than in emerging markets. And there are five people in
the latter for one in the former.
The more likely scenario is that the West will have to stop stimulus programs
when inflation spreads to it from the emerging economies. The most immediate
channel is through rising commodity prices. It’s a tax on the West to
benefit emerging economies that produce raw materials. That’s the
irony: The stimulus in the West can immediately bring harm to itself.
It’s also the magic of globalization.
The prices of imported consumer goods will rise with increasing labor costs
in emerging economies. China’s nominal GDP is growing at about 20
percent per year. The odds are that its labor costs will surge as its worker
shortage bites.
Lastly, labor in the West will demand wage increases to compensate for
current and future inflation. One may argue that high unemployment rates will
keep wages in check. Think again. In the 1970s, the U.S. suffered a
wage-price surge even with high unemployment because workers saw through the
Fed’s “growth first and inflation be damned” intention.
In 2012, the Fed will run out of excuses not to raise interest rates. As the
excess liquidity in the global economy will be gigantic by then, the
tightening will probably trigger a global crisis as asset bubbles burst.
What really ails the West is declining competitiveness. Globalization is
pitting the Wangs in China or Gandhis in India against the Smiths in the U.S.
or Gonzalezes in Spain.
Multinationals such as General Electric Co. or Siemens AG decide on whom to
hire. The Wangs and the Gandhis offer productivity but have little money. So
they are willing to accept low wages to accumulate wealth. The Smiths and the
Gonzalezes have wealth and won’t accept Third World wages. When their
governments give them money to spend, their demand just makes the Wangs and
the Gandhis richer and themselves poorer with rising national debt.
When ANOTHER began writing in late 1997, the terms West, Western, and
Westerners were prominent from his very first post. We know from later
revelations that ANOTHER was himself a Westerner. And we also know that he
was writing specifically for the benefit of Westerners, “Western Gold
Bugs” in particular.
I believe ANOTHER’s delineation of the West as a distinct group in need
of a new frame of reference regarding physical gold is one of the most
significant and underappreciated concepts in the entire archive. And the
shift I believe he described is so all-encompassing as to say everything you
think you know about gold, the gold market and the biggest players in that
market is mostly wrong.
I believe this is still true today. That most of what you and I read about
gold today is wrong on some deep level. And that herein lies the puzzle that
is yet to be solved.
In my opinion, the portions of the above articles that I used set a nice
frame of reference for the rest of this post. What I have done is quite
simple. I have compiled almost all of ANOTHER’s paragraphs that
directly referenced “The West.” Most of the paragraph breaks do
represent contextual breaks within the original archive. Yet viewed together
as presented here, with the above perspective fresh in your mind, they reveal
a few remarkable pieces to the puzzle.
This type of exercise I sometimes do on my own. Today I do it for you. Enjoy.
ANOTHER
Westerners should not be too upset with the CBs actions, they are buying you
time!
The Western governments needed to keep the price of gold down so it could
flow where they needed it to flow. The key to free up gold was simple. The
Western public will not hold an asset that is going nowhere, at least in
currency terms.
Ever notice how many important middle eastern people keep a residence in
London. It's not because of the climate. The most powerful banks in the world
today are the ones that trade oil and gold. It is in the "city"
that the deals are done by people who understand "value"!
Westerners should be happy that they do because the free flow of oil and gold
has allowed this economic expansion to continue these past few years.
The western world today, as we know it does not use money ! They use
"paper currency". To fully understand what that really means you
must come to terms with this fact. "When you use paper currency you are
placing a value using another persons concept of value" You are using a
thought as a means of value! When an investment in stocks, bonds, bank
accounts, CASH, businesses etc. is priced in US$ currency you are really
holding the "intentions of providing value" locked away in the
thoughts of another mind.
One of the great money troubles facing the western currency system today is
that many third world people are starting to put a "mind value" on
real money, gold. These people don't know the true value of gold money but
they know its worth a whole lot more than the world paper currency price now
placed on it. And that brings us to the next problem; how can paper currency
that represents "the thoughts of a nation blowing in the wind" be
used to value real money of ancient world class proportions, gold? It cannot!
Any price you can think of will do, as in no price will work!
If the world price can be maintained in the $300s it would be a small price
for the west to pay for cheap oil and monetary stability. The battle is now
between CBs trying to keep gold in the $300s and the "others" buying
it up. In effect the governments are selling gold in any form to "KEEP
IT" being used as 'REAL MONEY" in oil deals! Some people know this,
that is why they aren't trading it,, they are buying it.
Asia put an end to a sweet deal for the West! From the early 90s it was
working very well. But now… The problem with gold physical supply is
very real indeed! But, there is no way that the CBs will continue to sell off
an asset for its commodity price that has many times more value as money!
Western thought is still linked to gold as a commodity. That thinking is
going to change! The world will witness an almost instantaneous run into this
commodity the likes of we have never seen before! It will not be "a
trading rally" or "a two way street". Bullion will have become
a holding for "the lifetime" never to be sold. "Sell and spend
everything but not gold"!
If a bank that uses Yen has lost 90% of its loans and holds gold and bullion
has risen 500% in yen in a week, to use a western way "would it cut its
winners and let the losers run?"
Who can know the thoughts of the "Big Traders" of the world? If
they press the physical market, it will end tomorrow. They are by no means
dumb as they sometimes show! Most would like to keep their gold at today's
price and allow the economies to continue in prosperity! In time and with
luck it could all be worked out. But, it is the equity/debt/currency markets
in general that are a problem! If only a small, very small very few
"western people" begin to buy?? Remember, the other world no ones
have gold in their hand. They care not about YOUR debts, these small people
have won a great deal and know it not.
To make a long story short, many people who would have purchased bullion
years ago have now squandered much of their "safe insurance money"
on wall street. It is no wonder that many WESTERN gold investors have now
turned bitter on gold. If they knew the truth about this new market they
would have turned their bitterness on wall street instead.
Try to live in this outcome and see how different the world will be. It will
not be the end of all things, only the changing of most things in
"western thought". The "Digital Currencies" will still
trade, but we will value them as not before. Anyone who has sold gold they do
not have will not be allowed to cover that position. Anyone who has bought
gold they do not have will not be allowed to cover that position. Many will
lose all they have in a world without honor! Looking back, one will ask,
"how could I have thought that noone wanted gold, when more of it was
being bought than existed?"
The falling price of physical gold only hurts the mining industry ( and its
stockholders ) and leveraged paper buyers. All others benefit from a lower
value of gold. Look now as even the western public are buying coins. They
help themselves even in the face record Dow Jones.
Will the BIS try to settle this unbalanced market by destroying LBMA? Or will
they drive the CBs to lease another 20% in an effort to inflate this
"paper gold currency". Just like the fiat dollar, if inflated it
loses value. This is not lost to the oil states.
If you owned an oilwell in your back yard and no-one could take control of
it, then oil is the best investment. But, most people use various forms of
western paper to trade oil and that paper will burn in a currency fire. Make
no mistake, a currency fire is now in process and it has much fuel remaining.
Even Korea will find out that oil is all that counts. Their paper will die!
Gold would have helped them in a different world, but for now gold is in the
background as the IMF tries to add more paper to this inferno. If one owns
real gold , it will be with ease to view the world currency developments.
They will be truly of biblical proportions!
I ask you, when your worth in the ground is equal to much of the earth, is an
IOU of the same future value? Only gold has such a history book for
reference. These people do not trust foolish thoughts of value from western
minds. That history book is only in the first chapter.
This same mindset creates a worry in the back of many a mind in the oil
states. It is clear to most, that even a small amount of gold in the asset
mix, makes one appear "less western" and therefore "less
foolish" when the concept of value and currency are discussed. But, the
problem has always been that oil is "so large" in relation to gold
that any attempt to convert, even a portion of ones assets creates a
distortion in the markets. Of further concern is that; everyone knows that
western minds don't like or want gold, but if they think you like it they
will trade it up in price for the sake of "sticking it to you".
Enter the world of "paper gold".
You and all western minds must weigh this offer as it is heavy for your side!
A great many losses will be for the holders of debt and paper things, but the
gains are for a better life.
Thru these "thoughts" I have made effort for many months, in haste,
to make clear. My words are plain, but hard, and others have presented this
truth in a western way. But, you sir, have made the best of it!
As a "currency of gold" springs from this wind, western trading in
this metal will end. The "terms" of all currencies will change as
the "use" of these moneys is changed. Many will now know true worth
as the "terms" of every asset does find a "real price"
and a "real value" in the "true world of things". For the
future of most, "the wealth that was shown in paper" will be seen
as clouds in the sky!
The gold market is made up of a very broad spectrum of investors. At the very
farthest ends of this spectrum lie the persons with the largest influence on
the physical bullion. The super wealthy at one end and the "third world
no ones" at the other. The middle is occupied, mostly, by the
"investors with western thought". The far ends buy bullion. And
they don't buy it as a gamble or a game! It is a way of life that has worked,
through thick and thin, even before the West was "The West".
Now, on the other hand, this "modern day middle of the spectrum"!
Well, they have read why we need gold, but they have never
"Experienced" the need for gold! Until that day, when they gain
"Experience", most of them will make "A Gamble That They Never
Intended To Take". Yes, they do invest in all forms of paper and or
leveraged gold and all the while, expounding from the roof tops the coming
currency crashes and stock market declines. Even looking for bank closures
and bank runs, as they cling dearly to comex options and gold stocks!
Anyone, from the outside looking in can clearly see that
"westerners" do lack "experience".
There is a "flaw" in this modern market that many do not quite
grasp. In time, they will! There have always been people and companies that
make a living dealing in gold. It is an ages old business. Today, we see a
phenomenon that is "as none before". It is mostly done by the
investors at the middle of the spectrum. The "trading of gold" has
grown to a level never seen in history! You read every day, that no one wants
or needs gold! In a way those statements are very correct! No investor wants
to hold gold, but everyone and his brother ( and sister ) want to trade it!
The volume of paper trading, worldwide, on and off market is beyond belief!
It has created a type of "Parallel Paper Gold Universe", existing
side by side with the physical. The major "flaw" in this system is
found in the makeup of the "traders" of this "paper gold
universe". Without fail, the majority is made up by those in the
"middle of the spectrum", those without "loss of currency "Experience"
". Mostly, they are of "western thought".
I have tried to offer these thoughts as a way for many to understand why this
modern gold market is not as before. Most of these letters apply to investors
at the far two ends of the market ( see my last post by another ) . Many,
from other places, do understand these "expressions" as given. For
many here, I resist the replies to questions that offer results for
"gold traders". The intents and reasons are for persons to
"consider" and "see" this market in a true light for
today. Not for paper trades that will lead to certain loss for the future. I
now believe, that by way of other posters, these thoughts are "in
grasp" by many traders of "western thought". One may not
"accept" the conclusions, but they can, "mentally experience
the outcome" of the future. For this end I will now offer real
direction. That of Why, When and How Much! I do this for those of
"Family and Country", and persons of Honor. Those that live to
help, not take, in times of change! Some say this knowledge should not be in a
"public way", but I say secrets are for fools.
We must grasp that all commerce is done, at least, in the US dollar concept
of "valuations of real things". In this way, " the true value
of the purchase of real money" is hidden from view! Persons will say in
the future, "how could gold be $500 one day and $5,000 the next"? I
tell you now, it is already past that level, as in "present reserve
currency dealings" it is not seen! Consider, that in all that you do and
think, your "western values" are of paper concepts. From your
birth, real things are not used to cross value themselves! When the battle to
keep gold from devaluing oil ( in direct gold for oil terms ) is lost, the
dollar will find "no problem" with $30,000 gold, as it will be seen
as a "benefit for all" and "why did noone see this
sooner"?
This question from you, it proves for my eyes what I have said. Indeed, if I
viewed as a western person, gold money as $30,000 paper dollar credits, my
thoughts would also show "this cannot be"! But, from another world,
I view this US$ and say "how can it be of such value to all and have
numbers as the stars in heaven"?
The Western public has always thought of gold as money. Even after the 70s
and 80s, most private investors held a small side thought, that gold was
still, somehow dollar money. It was only during the late 80s and 90s that
people started to completely lose the connection of paper spending money and
gold. Clearly, all evidence shows that prior to the 90s and particularly
prior to the 50s, the push was to change the public's thinking away from gold
money, to paper currency as money. In this political climate, gold mine
investments were the correct move, as the business of gold was encouraged
over the usage of gold as money! That is why the metal was called in and the
mines were untouched.
However, today, the change will be counter to the prevailing public opinion,
that gold "is not money". The world debt system and currency
exchange, as we have now will implode and leave little room for political
maneuvering. The governments will revalue gold and "demand" that
the public carry it and use it! It will be the source of all gold, the mines,
that will be controlled! That's Controlled, with a capitol "C", not
confiscated!
The Western mind does focus on "what I buy today for the lowest
price". Yet, in this modern world economy, the lowest price is always
the function of "the currency exchange rate"? The Yen, it is
compared to the dollar today, and used to purchase goods. One year later and
the Japan offers these goods for much less, as the Yen has fallen to the US$.
The currency value of this purchase, was it "true " today or a year
ago? Understand, all value judgments today are as subject to "exchange
rate competition"! It is in "this exchange rate valuations"
that the private citizen does denominate all net worth! A safe way to hold
the wealth for your future, yes? You should ask a Korean or the Indonesian ?
Please understand, this "gold trading arena", both physical and
paper, will be subject to "GREAT" surges, up and down, in US$
pricing. The removal of the political "world dollar settlement"
price of gold will revalue this asset in terms that noone of "western
thinking" can understand. This "gold war" will leave a great
landscape of burned and destroyed "gold companies" along with the
investors who "stood for battle without real metal" as a shield!
For many, the years have passed and this noble metal has not revealed the
value it hides. Ones of western thought have held long and strong, with great
demands that it should obtain a high price in American currency terms. Yet,
in some two decades of time it was the dollar and paper investments that
bring forth their hidden strengths. For you, this history has proven gold is
without value in these modern world economies!
My friends, events will change your thoughts. Often you are sold gold that is
called "deliverable", yet the broker does lend you much percentage
cash to buy. Perhaps this transaction is "deliverable after full
payment" and as such the broker doer deliver "little real
gold", yes? Much of the western world does "attach" to gold in
this form. This metal is sold with the "modern concept" of
"gold is the commodity for fabrication" and "is dead as
money" in "this new era". This "concept" say that
only "leverage" and "trading" does add to your estate. In
this fashion, many have lost the long term benefits this "world class
money" will soon bring. These persons wait for the event that does not
come. In the future, many "salesmen of leverage" will tell stories
of the fact that could not be. "The demand for gold "the
element" will vanish, as the dollar price for "gold the money"
does soar". What chart will be used to view this new high gold price,
that will remain, for many years, "unaffordable" as a commodity,
yet all bid for daily as the right to buy "money"?
I would say, all forms of physical gold is good to own. Even the rare ones
offer the "art form", yes? Even in war, the art work is looted
first, then the jewels, and always food. I prepare for not the war of men, but
the war of currencies! This conflict will bring forth a new concept for many:
"western governments will encourage people to hold physical gold"!
When the Euro has defeated the Dollar, citizens will be asked to use gold as
a savings, for holding the Euro will be frowned on. Gold will not bring your
"capital gains tax" as the mines will be taxed to compensate.
Yes, rare gold will be good, but not as liquid as "bullion type"
gold.
Many savers consider "no need for the gold". As spoken to Mr.
Kosares, I think these investors of "young eyes" do not know the
value of this insurance. Please add the amount you pay for the "Western
insurance" of all personal things. The Automobile, House, Health, Life
and Other. What is the "return on this investment"? It cannot be
known until time to collect, yes? Perhaps, a fortunate person will find
"never a return".
The physical gold, this money insurance, it will be collected in future. In
that time, the return will be easy to see.
Thank You
Conclusion
I hope you enjoyed my little exercise. I have done it in the past with other
search terms like “BIS.” It is always an enlightening experience
to read his words written over the period of a year within a condensed focus
parameter.
As I said above, we learned that ANOTHER was, himself, a Westerner. So what
subset of “The West” might he be representing? I think the
following gives us a bit of a clue.
5/5/98 ANOTHER (THOUGHTS!)
[**USAGOLD questions in italics**]
Mr. Kosares,
A few thoughts for you, as the questions are asked?
** It seems that both you and your friend believe that the world is
splitting up into currency/trading blocks -- much as the world did for both
World Wars. There has been much discussion around the world about the
imposition of a NEW WORLD ORDER and international one world government.
Simultaneously, we see another, opposing force at work -- regionalism,
nationalism, even tribalism. What do you make of this? Is the Euro a child of
the forces of the New World Order, or the forces of regionalism/nationalism/tribalism?
**
Sir,
I would say, "Old World Order" to return. To understand/explain
better: " A very easy way to view this "order", would be to
simply say that the American Experience is reaching the end! As we know,
world war two left Europe and the world economy destroyed. Many thinkers of
that period thought that the world was about to enter a decades long
depression as it worked to rebuild real assets lost in the conflict. It was
this war that so impacted the idea of looking positively toward the future.
The past ideals of building solid, enduring, long term wealth were lost in
the conception of a whole generation possibly doing without! In these fertile
grounds people escaped reality with the New Idea of long term debt, being
held as a money asset. Yes, here was born the American Experience that comes
to maturity today.
New world order, regionalism and tribalism are but modern phases that denote
"group retreat to avoid paying up". The worldwide currency system
is truly a reflection of an economy built from war, using the American
Experience, the US$ and the debt that it represents. But, for the American
dollar to continue as the representative of the global financial system, in
the form of being the reserve currency, maturing generations of all countries
must accept it, and the tax on real production it clearly imposes! In the
very same mind set, that people buy the best value for the lowest price
(Japan cars in the late 70s), and leave an established producer to die, so
will they escape the American currency and accept any competitor that offers
a better deal. Because we are speaking of currencies here, the transition
will be brutal!
As you ponder these thoughts, consider that; all economies today are truly
equal in production as the exchange rates are the manufactures of
profit!"
** Is Europe (led behind the scenes by the BIS) an opponent to the United
States?**
Sir, Yes, but not in the ways of war, as it is in the feelings of
"pride" and "we go our own way". The downfall of the
Russia, did allow for the Euro and all that it will build. They now see the
debt of the US$, as a reserve money can be escaped! As even the US citizen
will leave its own workers to die as products are purchased
"overseas", how much less will the world also flee the dollar!
Opponents? No, I would say they are learners of the "American Way"
as they embrace the "American Idea" of a "free world market
economy".
*** If so which countries are in which camp? Your associate seems to feel
that Asia is split between the United States which has Japan as an ally, and
Europe which has China as an ally ( a notion I found particularly
intriguing). Where is Britain in this? Japan? And most importantly, the Gulf
States, particularly Saudi Arabia? **
Sir, I feel he is correct in this thought. Europe does grasp for a
relationship with Asia as the US did have with the Japan. It would build a
mighty economy on a foundation of oil and gold as backing for new money. As
China and Arabia was once a part of the Europe economy, in a small way. They
may now return with no fear of Russia. Britain? A lost nation. Japan? This
one is "of the American Economy" and is to live and die by it! They
will seek your Alaska oil before loss of face with gold. A dead Yen be a dead
Japan.
**Along these lines, I too believe that currency movements will flow
through Europe because the Euro currency will be gold backed. Where does that
leave Japan with over $200 billion in dollar reserves, let alone its massive
U.S. Treasuries' holding? **
Perhaps, they be like Korea? Rich in paper until the world says, "this
paper, it is not good"!
***Your associate says that BIS helped China increase its gold holdings.
Please tell me what the source of that information is, or is it simply a
speculation on his part. ***
The BIS is the gold broker for all interbank sales/purchases. Bullion Banks
are for sales to other entities. I think, at first, China was leverage
against the oil producers. Then Arabia was allowed into BIS for Euro.
**One other item you might clarify for me is "Who is really behind
BIS?**
Perhaps, "who control them"?
**The Swiss?
Yes.
**The eurocentral banks?
Yes.
**Who does BIS really represent?
"old world, gold economy, as viewed thru modern eyes" or " way
to move from US$ without war".
**Why was Saudi Arabia just included in BIS?
answered.
**Has Saudi Arabia gone with Europe?
Yes.
Sir, there is much more to this, but we talk over time, yes? I will be away
for perhaps ten days. We speak again.
Thank You
Lastly, someone recently asked me to explain my understanding of the
following quote from Relativity: What is Physical Gold REALLY
Worth?:
In this modern world, the current value of every asset is formed by a
relationship of gold/currencies/oil. This cross relationship is the
"very basis of our modern world banking system"!
Through this basis, all currencies are given value as the local government
treasuries hold US$ as reserves. The US$ is given backing as its government
is guaranteed that all crude oil, worldwide, will be settled in dollars. An
oil reserve backing, if you will. And the "value" that the
"future supply of" currency traded "oil" imparts to the
world economy, is guaranteed by an "INTERBANK paper gold MARKET"
that values "physical bullion" in the Thousands!...
The key to this quote is... ""the "value"
that the "future supply of" currency traded "oil" imparts
to the world economy..""
This is a value that is """"priced""""
into EVERYTHING!!!
It is guaranteed by the paper gold market which delivers physical to those
that want it at a paper price.
If that (paper gold market) disappears, so does the (known currency)
""""price"""" of EVERYTHING!!!
Sincerely,
FOFOA
FOFOA is A Tribute to the Thoughts of Another and his
Friend
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