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Let’s start this essay by quoting Arizona pioneer Edward E. Dunbar from
the New York Times, January 11, 1859, article titled, “Arizona and Sonora
Silver Mines,” page 2---
“It is well known that the most colossal fortunes the world ever saw have
been based on the silver mines of Mexico.”
Dunbar referred to a source called “Ward’s Mexico,” dated 1827, that
provided a figure---from 1733 through 1826, the silver yield from Mexican
mines represented $1,435,658,611, a truly staggering sum in those times,
which would equate to who knows how much today (probably over 100X)!
Now, please follow what I have to say. We have made it to improved
prices and expect to see more uptrend after the recent staged silver
whipsawing so the shorts can do a lot of covering (not a “correction”), but
we have not attained a state of security in our assets. The megabanks
that recently accomplished this whipsaw effect are descended from the same
institutions that boycotted the Morgan silver dollars in 1878. A
correction implies an impersonal force, whereas, this was planned
coordination at work. There is a perpetual war by the forces of
funny money (“created” money) against silver and gold. I said some
gloomy things last month, like the chance that monsters in officialdom might
attempt to mutate the “war on drugs” into a “war on metals,” alleging money
laundering and terrorist funding in order to strike at honest investors.
There are other problems to discuss here. On the ordinary criminal
side, metals dealers will wish to add the protective aspect of concrete
filled steel columns several feet high, outside their offices, to prevent
vehicular crash entries. When metals and their share prices scale
higher, the political danger increases from the Washington D.C.
criminals. In January and again in February and March here at Silver
Investor I called for the formation of a precious metals lobby or political
action committee. I believe many investors sense the need for
this. Let me plead my case as an attorney presenting evidence to a jury
in court---you, the metals investors.
Let’s all understand, unless we in the gold and silver communities get
behind the idea and do something, the government will take steps to
neutralize the profits we expect to make. The U.S. government has a
detailed history of working with the users with market intervention to hold
prices low. When legislation is the only weapon they have remaining,
they WILL use it! Silver using corporations have no need to buy enough
shares in silver producers to get control, then hedge all production at low
prices, to ruin our objectives. I trust the miners have exercised due
caution as to the intentions of private placees, discerning that these are
investors and institutions who oppose hedging! It costs far less to
lobby Congress for the users to get what they want. Fleecing people
depends on legislative control; it could also depend on making intended
victims think they don’t need, can’t organize, or shouldn’t have, a political
action committee to fight for their rights. Just ask any NRA member if
gun owners really need a lobby! You will get a weird look of horror
coming back at you! So why are we in precious metals borderline
comatose about fighting for our rights?
PAPER MONEY FACTION & SILVER USERS HATE US
This is how America has been ruined; silver was demonetized in 1873,
the Federal Reserve was created in 1913---both by legislation. At the
very moments when the majority is being crushed by disasters caused by
legislation, the monolithic financial elite surges again in wealth.
Unless you personally, dear reader, take action, there is a strong chance you
will be deprived of benefits of holding precious metals and mining
shares. We aren’t only up against the silver users, we’re up against
the paper money crowd, and that’s the worse of the two; those feeding off the
central banks! They have been on the scene longer and are virulent
enough to start wars. Turns out that the old United States Bank,
forerunner of the Fed issuing unbacked paper notes (1791-1811 and 1816-1836,
see “Silver Users And Opium”), had another link to the Silver Users
Association! Eleuthere Irenee Du Pont was a director of the bank, and
founded what is now Du Pont, as a gunpowder and munitions maker!
According to Eric Helleiner in “The Making of National Money” (2003), page
147, Lord Montagu Norman, Governor of the Bank of England in the 1920’s---
“was so keen to see central banks created abroad that he refused to visit
countries that did not yet have them.”
This appears to be the key to subversive British control of the world’s
financial systems, central banks which they covertly control---banks that
hate silver and would do anything to depress the price, including leasing it
out! But to return to the present---Ted Butler has been saying for how
long, close to 7 years, that you need to buy silver, it’s the chance of a
lifetime. Other capable individuals have said the same thing about
gold. Ted has often said, buy physical, it places you beyond COMEX rule
changes. And that is true. Unfortunately, it does not place you
beyond punitive taxation (windfall profits tax or hoarding tax). It
does not place you beyond Federal confiscation. Newsweek, August 18,
1934, page 29---
“Using the right of eminent domain in confiscating the metal, Treasury
officials could legally set any price they desired.”
Right, the Feds didn’t go door to door looking for citizen held silver
after the Silver Purchase Act of 1934. You should see the stacks of silver
ingots in that article, and the armed guards there. Wouldn’t you prefer
to not see a black market come, as the only “free” market in silver?
What if they decide to station armed Treasury agents at all the gold and
silver dealers waiting to seize what comes in? What if it’s made a
felony to use gold and silver to pay other private citizens for goods and
services, even if it’s called “barter?” Avoiding the COMEX does not protect
mining shareholders from mineral site nationalization (“National Silver Agency”
or “National Gold Agency” or “National Mining Administration” to be run by a
Federal “Czar” like “Rummy” Rumsfeld, Mr. $1.61 per ounce silver from the old
Nixon era Cost Of Living Council!) As we see in the Wall Street
Journal, July 24, 1972, page 16---
“The Phase 2 price ceiling on domestic silver is $1.61 an ounce. The
Cost of Living Council has created an artificial tightness by ruling that
silver refined from domestic ore can’t be sold to U.S. users at more than the
ceiling price.”
This is why, in an appropriate stage of a metals price spike, many
investors will move to sell a portion of their holdings to the unaware public
to lock in gains, and re-invest those gains in less controversial
investments, such as water resources, Nanotechnology, patented technology in
treatment of genetic diseases, agricultural investments without pesticides
and genetically altered plants, and looking for distressed properties in a
real estate crash.
Don’t figure on it being possible to buy physical metals after the general
public takes notice. Waiting lists to buy may be years in length, and
won’t exist at all if government takes in all new production. Don’t
delude yourself, we could see a Silver Rationing Act if we don’t fight it, to
guarantee that the users association gets silver at a Federally fixed PRICE
CAP (fascism), leaving others out in the cold. That’s exactly
what happened in the Nixon years with the (Fascist) Cost of Living Council,
run by RUMSFELD and CHENEY, who capped silver at $1.61! Their history
is to deal selfishly, not to let a free market distribute silver to the
highest bidders! The Wall Street Journal, November 20, 1967, page 28
featured one of many such proofs---
“Silver users are growing critical of the Government’s weekly silver sales
program, complaining the Government is holding up the price of silver by
seeking to obtain top prices for its metal.”
Actually the General Services Administration let our silver go below cost
of replacement production (at a time when the Western world was consuming
twice as much silver as it produced), but if silver were a penny a ton, the
users would still question the price. Talk about Dracula raiding the
blood bank! Wasn’t it the government’s fiscal responsibility to get
“top prices” at any alleged auction? These cautious investors I refer
to will sell portions of their holdings before the next President takes
office, knowing that it is only after a politician is entrenched, does he
begin the abusive process. They will say we should be penalized because
we have been opportunistic and invested in scarcity and should be disallowed
from “profiteering on the country’s misfortune.” Actually the danger
starts after the election is decided. If Bush becomes a lame duck, he
will cut a wide swath of destruction among metals investors (maybe he’d make
an exception for Barrick Gold due to his links to them!) Or if Bush is
re-elected, the danger starts. Bear in mind that the national co-chair
of Bush for President was Barbara Franklin of Dow Chemical, Silver Users
Association member! The Silver Users Association has seen the same
estimates we’ve seen, concerning how much silver is held in private “hoards.”
To overcome the fact that it is sensitive to price alone, they doubtless
intend to influence legislation aimed at removing our silver from us at theft
rates, causing us large losses! It might not go straight to them, but
as long as it adds to the total supply, it would influence the price down,
which is their main objective. Is that something that can motivate you
to do something? Another risk we face is, if a national emergency is
declared, a Federal freeze on withdrawals of demand deposits from banks may
likely be imposed. The objective would be to prevent Americans from
protecting themselves from a rapidly weakening dollar, by buying anything
tangible like precious metals. A bank withdrawal freeze, as in
Argentina, would also place at least a temporary damper on rising metals
prices! Even diamonds bought as distressed items direct from the jobless
public with an effective resale plan, would be a better place to be than
dollars that can be printed to infinity! So, be out of paper dollars to
the appropriate extent BEFORE the November Presidential election!
And don’t kid yourself that a party label will make any difference.
President John Adams (1735-1826) said---
“The maxim of a free government ought to be to trust no man with power to
endanger the public liberty.”
This assumes that we won’t get past three more delivery months in COMEX
silver---May; July; and September 2004, without a huge flare-up in the silver
price. Most of us have rubbed our eyes in disbelief that the game has
lasted this long. I am convinced that a very long-range plan has
existed for many years, to deprive those outside charmed circles (the old
intermarried rich), of gains in precious metals. The Silver Managers,
as Ted called them, aren’t concerned that you own real silver in the sense of
you profiting thereby. These are big bankers---the paper money crowd
with Federal Reserve connections; Bank of England; International Monetary
Fund; Bank for International Settlements and so on. The secretive
intermarried families behind them are the problem, not the transitory
bureaucrats who run them. I will have a research piece before the Election,
which will serve to pull your pants down (are you reading this) in full view
of the American public---you who on your letterhead claim to be “everywhere,”
which is a reference to your holdings--- the intermarried descendants of the
Money Vipers who found themselves beaten by President Jackson in 1836!
Their purpose is to “absorb the wealth of the world,” (words in the original)
apparently in part by lowering American living standards, corrupting the
nation with unbacked currency. One of them was British collaborator and
Ambassador to England, three-time Andrew Mellon Treasury Secretary (below)
who also chaired the Federal Reserve--- who held stock in over 300
corporations and enough to be a director of 51 including giants like Gulf Oil
(majority owner) and Alcoa (majority owner)---
I will have you all wearing neon signs calling public attention to your
identities if I can. Alexandra Robbins didn’t quite hit the bulls-eye;
I will. I still remember meeting one of you face to face in May 1979,
maternal grandson of Secretary of State Seward who made the Alaska Purchase
from Russia in 1867 and how he wanted distance between us. THIS is the source
of the gold and silver price suppression; it has not taken place
accidentally---an organized Imperium of financiers who span the globe with
strangling tentacles of debt, who coordinate their actions calculated to
impoverish others, with more precision than any surgical team. You will
finally be known, rather than just the visible outer affiliates.
The reason why these paper money bankers aren’t worried about you owning
physical, is that they have a scheme drawn up to nullify the gains you will
make otherwise. We CAN stop them IF we organize! In an article
entitled, “A Portfolio Hedge Against Adulterated Dollars,” appearing in the
Commercial & Financial Chronicle, June 17, 1965, page 2510, written by
Henry M. Bonner, we note in the introduction---
“Discouraged by our monetary and fiscal policies which have kept the
discipline of gold at bay, Mr. Bonner says a hedge is required for all
portfolios. Convinced there is no sign of even a drift towards fiscal
sanity, he recommends investment of from 25% to 30% in stocks apt to gain
from gold and silver price rises.”
Some of Bonner’s remarks were---
“Gold can impose a discipline that governments cannot impose on
themselves. The probable consequences resulting from the U.S.
Government’s inept handling of our gold and silver problems requires a hedge
for all types of portfolios. The political danger that the U.S.
Government might levy a punitive tax upon silver or gold producers or upon
holders of stocks in such companies (along lines of past legislation) in case
of a price rise should not be disregarded.”
Hello silver executives in Vancouver, Coeur d’ Alene, Spokane, Denver and
elsewhere, are you reading this? Will you speak for your shareholders
only when the U.S. moves to seize most of your income? Will you go on
public record opposing a Federal price cap on silver, and Federal dictates
that silver can only be sold to members of the Silver Users
Association? It is not prudent to wait till it is suggested your
companies be dealt lethal blows, before you become politically active!
Have you heard about the silver petition to silver company management to be
posted on the web? That was Silverwriter behind that. When do you
stop worrying about offending the big banks? It is YOU and the gold
miners who have real money, not the bankers! Because silver executives
have said very little for public consumption about the silver manipulation,
it would be a mistake to conclude this silence will continue
indefinitely. I think of an annual report for 2002 on page 26 where
management states they “do not intend in any way…to comment on the
negative…aspects of Comex trading at this time, but merely make our
shareholders aware of the fact that there is substantially more paper trading
of silver than actual physical metal.” It seems they are aware of the
price depressive manipulation, and that eventually they plan to “comment” on
it but not “at this time.” What time is that---why, while they’re using
the low price to buy more mineral sites! Just please issue a statement
before Congressional silver hearings convene! Meantime, the illegal
COMEX silver shorts have a price cap on the net worth of silver mining
investors. When your shareholders need to raise money for life’s
events, they have been realizing a far smaller return than in a free market
setting. Executives, your shareholders are bleeding; DO something for
them! Shareholders contact your silver companies and express your
wishes to them! If you agree we need a metals PAC or a “Silver Miners
Protective League,” please tell them so. National Review, March 23,
1965, page 237, commented---
“If it is not made illegal to do
so, American citizens will buy silver as a hedge against further
deterioration of the dollar.”
I will restrain myself this time, and not try to list dozens of references
from across the public record, along these lines. Bonner, whoever he
was, recognized that situation 39 years ago! Wasn’t there a big boom in
technology and Internet stocks a few years ago? And did Congress suggest
a punitive tax on those issues? Why, NO, because Wall Streeters were
active there! See, silver is DIFFERENT---it must be ATTACKED because it
is real money and therefore a THREAT to fiat paper! Don’t count on any
help from Federal judges, and especially not from the Supreme Court.
Roger Taney, installed as Chief Justice in 1835, was a Jackson ally in the
fight to destroy the second Bank of the U.S., however, where is a highly
placed judge like him today?
Like the jackasses of the CFTC, many magistrates are linked to Wall
Street. The other side complains that we have any representation in
Washington at all. Ron Paul does not have enough company on Capitol Hill
to take care of business. Our enemies would rather we stay hypnotized
by professional sports while they have our rights legislated down to
zero. Banking, the magazine of the American Bankers Association, July
1963, page 58, complained about “the silver mining interests and their
spokesmen in Congress.” Hey, we better have spokesmen there, because
the racketeer bankers and the thieving silver users are
over-represented. Their toxic monthly magazine, Banking, April 1965,
page 117, said---
“Silver hoarding would have to be outlawed.”
Are you actually willing to sit on your hands and do nothing if Congress
moves to outlaw private ownership of silver, because bankers want no
competition from real money? Are we too lazy to call on our best
leaders to form a lobby and pledge monthly support? Mining sources have
occasionally gone on record declaring economic fact to those willing to
listen (not including those accusing them of profiteering). Simon D.
Strauss, vice president of American Smelting & Refining Company (ASARCO)
said (Commercial & Financial Chronicle, April 29, 1965, page 1795)---
“The lesson of history is that when currency of intrinsic value disappears
completely from the monetary system of a nation, in due course the currency
of that nation loses substantially all its value. This was true as far
back as the ancient Greek city-states and the Roman Empire. It was true
of Germany, Japan and Italy as recently as World War II. All the
lessons of history favor maintenance of silver coinage.”
Another voice of reason slipped
into that publication (November 17, 1966, page 1757). In an article
titled, “Treasury Silver Today” by Stephen Hopkins, calling himself a “U.S.
Monetary Analyst,” we read---
“Federal Reserve notes are not a
unit of value, not a measure of value, nor a store of value. They are
not considered money but its substitutes. Silver is a precious metal
and reflects the true purchasing power of that irredeemable (forced) currency
whether that currency be pounds, lira, francs, pesos, marks or dollars.
Investor accumulation of silver certificates seems to be a hedge against the
further decline of Federal Reserve notes.”
Beware legislation coming from
Capitol Hill providing severe penalties against anyone who uses gold and
silver in settling transactions! Look out for sanctions against metals
investors proposed by the American Bankers Association! The Monetary
Devils don’t want us having real money! Beware of Senators and
Congressmen who associate with members of the Bankers Club, New York!
Watch out for articles in the journal of the American Economic Association,
condemning private ownership of precious metals. Watch the journal of
the Royal Economic Society of London, financier prostitutes, calling for
penalties on metals ownership. Watch for officials who turn out to be
British agents---Rhodes Scholars like Senator Lugar of Indiana with his
sponsorship of CFTC commissioners, calling for what the Bank of England
wants! Watch for all the same officials we in the silver camp have
protested to over the years of low price fixing, to suddenly become very
vocal, accusing that the silver shortage is the fault of “big speculators and
hoarders!” They will yell, “supply was adequate till it was disrupted
by longs who demanded delivery!” Then again, another scenario is, the
illegal naked shorting was on the part of a rogue band of junior traders at
our metals desks in our commodity trading subsidiaries, we were unaware of
it, but now they are caught. This would allow the board of directors
and senior management of the megabanks to escape without the blame due
them. After that, they could jump to their feet like a Jack-in-the-box,
point their trembling, unmanicured fingers at the silver holding companies
and say---
“HEY! Since the silver manipulation
was uncovered, it isn’t fair to the nation to allow these silver
conglomerates to retain title to those mineral properties, since they were
acquired in an environment of illegally depressed prices! They
shouldn’t be allowed to profiteer! Those silver sites MUST be forfeited
to a National Silver Agency for the sake of national security!”
It would be an agency that they,
the bankers, would be more than eager to supply staff for its
administration! Don’t anyone worry, the new bureaucrats would have the
necessary university degrees from institutions with the right regents and
trustees linked to the Money Power and be members of appropriate economist
organizations! They would call for silver to be allocated to the users
association companies on a priority basis! The Justice Department would
concur that the silver properties should be forfeited because favors are
subject to being called in. Will the National Center for Policy
Analysis, of which Pete Du Pont is a trustee, call for such a federal agency?
“We analyzed the silver policy of the United States and determined that in
the national interest, a new agency is needed.” Still think we don’t
need a Precious Metals Political Action Committee to defend our rights?
If Savoie fails to convince you here, just wait a while---Congress will
convince you!
BOGUS MEETINGS AND PROPOSALS!
If you want a model of high-degree of organization and activity to
evaluate, look no farther than the enemies of gold and silver money. No
one is more organized than this group, and the only other group that might be
as determined and organized, is the pharmaceutical industry. Not
surprisingly, the pharmaceutical industry and the paper money crowd are
interlocked on the big bank boards. We can send millions of jobs to
China and India, but we can’t import less expensive patent drugs from
Canada. What the Federal Reserve is for Wall Street and the CFTC is for
the metals manipulators, the Food and Drug Administration is for the
pharmaceutical industry. But enough said about the drug makers for now
(other than that I wonder if there are historical links to the old Chinese
opium trade, and to the modern Columbian cocaine rackets!) In the wake
of rising silver and gold prices, look out for bogus “economic summits” and
proposals, in which the game is rigged to favor the paper money crowd and the
silver users. The Commercial & Financial Chronicle, January 1,
1938, page 45, reported a summit of “more than 60 economists” meeting under
the auspices of the American Economic Association (sponsored by super rich
Vanderbilt family; Sanderson Vanderbilt sent the press dispatches) in
Atlantic City, New Jersey, in which silver coinage and bimetallism was
attacked. Among the “distinguished” economists endorsing the
resolutions were Randolph Burgess, vice president of Federal Reserve Bank of
New York, member American Bankers Association and director Royal Liverpool
Insurance Group (British influence); Oliver Mitchell Wentworth Sprague,
Professor of Economics at Harvard, 1913-1941, then president of the American
Economic Association, assistant to the Treasury Secretary in the gold seizure
year of 1933 and former advisor to the Bank of England; Professor Jules Bogen
of New York University; Leonard Ayers, of Cleveland Trust Company and
American Bankers Association; Professor Ernest Patterson of University of
Pennsylvania; Professor Edwin Kemmerer of Princeton, who was personally
associated with Douglas Dillon, Treasury Secretary 1961-1965, who helped take
America off silver coins, and also with Wall Streeter Hugh Bullock, a member
of the Order of the British Empire; Professor Joseph Schumpeter of Harvard;
and Professor James Angell of Columbia University. Note that these last
two were also members of the Royal Economic Society of London. I have
been saying in several essays that there is pervasive British influence in
our economic policies, and there is abundant evidence to suggest this is
unfortunately true. If you can’t conquer someone militarily, the next
best thing is to control them financially, which is accomplished by operation
of a central bank, whose chairman gets knighted by the Queen! Doubtless
the reason the British didn’t invade the U.S. again after the second Bank of
the U.S. charter wasn’t renewed in 1836, was that they were readying to
launch the first Opium War against China, starting in 1839, and they knew
they couldn’t do both! Consider this from that January 1, 1938
article---
“The economists also declared themselves opposed to the Patman bill
providing for the purchase of the Federal Reserve banks by the Government.”
Man, that should be all the hellacious proof anyone needs, to believe that
economists are fiat financier prostitutes! They’re not likely to run
out of “money” as long as they have a stand of timber to cut down and mill
into paper! Wright Patman, Texas Democrat, was a long-term critic of
the Federal Reserve, which he never succeeded in having audited, and of the
Mellon banking interests. Another bogus meeting on silver took place in
Mexico City, reported in the New York Times, June 21, 1971, page 42, --
“Mexico called the meeting with Peru’s backing in order to study ways of
curbing speculation in silver, the delegations from the United States, Canada
and Australia had strict instructions not to discuss alternative pricing
mechanisms nor ways of influencing demand or supply. During the three
days of discussions, Mexico and Peru, which have been worst hit by the fall
in silver prices, took the strongest position against speculators on the New
York Commodity Exchange whom they blame for the bear market. Mexico’s
miners, who invested heavily three years ago when silver stood at $2.48 per
ounce, have suffered heavily since silver prices declined and they appeared
to form the main pressure on the Mexican Government to take action.
However, while it is clear that both Mexico and Peru would welcome joint
action by producers and consumers or even action by producers alone to
stabilize silver prices, at the meeting they seemed fully aware that the
United States, Canadian and Australian delegations had no authority to
discuss possible corrective measures. The head of the United States
delegation, C.D. Taylor from the economic office of the State Department,
explained his Government’s position at the opening session.”
Sounds like some of those United States, Australian and Canadian delegates
could have been members of the anti-silver American Economic Association, and
of the anti-silver Royal Economic Society of London. Current president
of that society is Stephen Nickell (“cupronickel”), a professor at the London
School of Economics, of which former deputy governor of the Bank of England,
Howard Davies, is director. And you can be certain that the
ever-infamous Silver Users Association had an ally in Mr. Taylor of the State
Department. So I counsel, we must be on the alert for bogus meetings
and recommendations on silver conducted by “experts.” It’s time for us
to conduct our own meetings, and I don’t mean about which mining company to
invest in, or what type of physical. We need a policy meeting to launch
a permanent Precious Metals Lobby. I am willing to undertake any
supportive research, however this is something many others are also qualified
to do. The time may come to pass the torch to another runner.
REGULATORS RUNNING WITH ENEMIES OF SILVER & GOLD!
In addition to contrived summits attended by prostitute university
economists---born dishonest, we will be verbally condemned by alleged
regulatory sources (who exist only to regulate silver longs). WSJ,
September 6, 1979, page 30, commented---
“As often happens when prices move without any apparent reason, rumors of
manipulation have filtered among traders and down to the Commodity Futures
Trading Commission, the government agency that regulates the futures
industry. “We’re monitoring the situation very closely,” said John
Manley, director of the CFTC’s trading and markets division.”
Only when silver prices are moving up, does the CFTC monitor the situation
closely! Small wonder considering names like Goldman Sachs, Lehman
Brothers, Morgan Stanley etc., on their advisory panels! Let’s take a
brief look at CFTC advisory committees. On their Technology committee
is Neal Wolkoff (we’re still not quite rid of him); John McPartland Jr.,
advisor to Federal Reserve Bank of Chicago (Fed hates silver); and Kenneth
Raisler, director of the Futures Industry Association, general counsel to
CFTC, 1983 through 1987, and partner in Sullivan & Cromwell, world’s most
influential law firm (industrial and banking client list not available at
their site!) On CFTC Agricultural committee is John Blanchfield of
American Bankers Association (anti-silver). On CFTC Global Markets
advisory committee is Mitchell Steinhause, vice chairman, New York Mercantile
Exchange (owner of COMEX); Philip McBride Johnson, Chairman CFTC 1981-1983,
who drafted key jurisdictional provisions of the CFTC Act of 1974 that
launched the agency in 1975. Johnson (two-term director of the Futures
Industry Association) advised the People’s Republic of China on the formation
of futures markets and authored (1999) “Derivatives---A Manager’s Guide to
the World’s Most Powerful Financial Instruments.” Johnson joined the
law firm of Skadden, Arps in 1984, the law firm Eliot Spitzer came from which
represents the Du Pont silver users. I see in Bloomberg News, April 24,
Spitzer is now targeting insurance firms and certain of their compensation
agreements with underwriters. It seems Spitzer will investigate most
anything except silver---maybe the Feds told him “hands off,” at any rate, be
sure his political backers did so! Later if Spitzer “investigates,”
he’ll find criminal activity anywhere but the directors and top management of
the megabanks, where the culpability has to be. Also on Global Markets
advisory committee to CFTC is John Walsh, of the Group of Thirty in
Washington, D.C., a think-tank of anti-precious metals economists. The
Group of 30 is heavy with British influence! The Right Honorable The
Lord Richardson of Duntisbourne is honorary chairman and confidant of David
Rockefeller; we also find Mervyn King, Governor of the Bank of England (also
director Bank for International Settlements) and Sir David Walker of Morgan
Stanley and the Bank of England. These operators call to mind a
well-known symbol, the “Jolly Roger,” or pirate flag!
Domestic precious metals suppressors at the Group of 30 include Martin
Feldstein Harvard economist and president of the National Bureau for Economic
Research, director of silver short American International Group with heavy
Chinese connections; former Federal Reserve Board chairman Paul Volcker, who
arranged the Hunt brothers silver bailout loan with punitive terms, so that
they forfeited almost 60 million ounces of physical silver by 1986; Andrew
Crockett, formerly with IMF, Bank for International Settlements and the Bank
of England, now president of JPMorganChase International; Gerald Corrigan of
New York Federal Reserve Bank and Goldman Sachs; Lawrence Summers, president
of Harvard, Treasury Secretary from July 1999-January 2001; Guillermo Ortiz
Martinez, governor, Bank of Mexico (look out silver!); and others
representing Citigroup; Deutsche Bank; Bank of Spain; Bank of Japan;
International Monetary Fund; European Central Bank; Banque Nationale de
Paris-Paribas; National Bank of Denmark and others. The IMF website
today flatly proclaims---“Gold and silver are non-monetary assets.” It
inflames these people to conceive of anyone transacting deals settled in gold
or silver---things they CANNOT issue! Remember the old quotation about
the Bank of England? “The bank hath benefit of interest on all monies
which it creates out of nothing,” they can’t create silver, no wonder they
oppose it as money! Current Governor of the Bank of England, Mervyn
King---
Remember the song “Backstabbers” by the O’ Jays (#27 on the 1972 hit
list)---
“They smile in your face, all the
time they want to take your place, the back stabbers!”
But to get back to Mr. Walsh, the connection between the anti-silver CFTC
and the anti-silver Group of 30---there’s another member of CFTC Global
Markets advisory committee to look at, and that’s Mark Fichtel, president of
the New York Board of Trade.
His predecessor as president of the New York Board of Trade (1942-1947)
was John Broadnax Glenn, whose one-time boss at Equitable Trust Company, Alvin
Krech, helped sell Bolshevik Bonds in the U.S., keeping that regime in
power. Mr. Glenn, who also worked for Consolidated Mining & Milling
Company at Guanajuato, Mexico, went on to become a financial advisor to the
Mexican government (look out silver!) Mr. Glenn as president of Pan
American Trust Company in New York, supported a resolution by the New York
Chamber of Commerce against the monetary backing of silver certificates, and
against the “Silver Bloc” in Congress (Commercial & Financial Chronicle, November
19, 1942, page 1807). So we see the CFTC connected to the Group of 30,
with its strong British influence, who have been sabotaging silver money
since 1873! No wonder the CFTC hasn’t regulated the silver
shorts! Lord Richardson is a confidant of the Duke of Devonshire,
Andrew Cavendish, related by marriage to Britain’s wealthiest landowner, the
Duke of Westminster, Gerald Cavendish Grosvenor. The 10th
Duke of Devonshire married Lady Mary Cecil, linking them by marriage to the
Vanderbilts, sponsors of the anti-silver American Economic Association at
Vanderbilt University. JFK’s sister Kathleen Kennedy married William
Cavendish, son of the 10th Duke of Devonshire, in 1944 (JFK, did
you stray from the London/Wall Street monetary game plan?) One of the
Dukes of Devonshire was also Governor-General of Canada. What a way to
raid someone’s natural resources, calling it the British “Commonwealth,” when
the wealth has been on a one-way trip to London! All the big Canadian
banks usually have several Londoners on their boards who are there to call
the shots. It would be nice if Canadians and Americans could really
have their own countries, and be free from the tremendous British influence
in our money systems! M.W. Walbert in “The Coming Battle” (1899, page
108) said---“A gigantic conspiracy was formed in London and New York to
demonetize silver.” Do we really want to be controlled from London by
such exploiters? Emblem of Duke of Devonshire below---
SOME DANGERS WE FACE!
The Wall Street Journal, February 23, 1968, page 13, had this to say---
“Internal Revenue Service officials have expressed that the Treasury could
put special taxes on silver investments.”
The users and paper money creators can be suspected of having a game plan
to take away most of our gains when these are realized. LEGISLATION is
how they intend to do that, with SPECIAL taxes! They could even call for
RETROACTIVE taxes on those who fully exited their positions! The old
quote attributed to a Rothschild, that if he has control of a nation’s money,
he cares not who writes its laws, is overblown. Legislation is how the
bankers first get control, and turning back legislation intended to
neutralize their control, is how they retain it. So legislation is the
key to our defeat, or our victory. How did it occur to IRS to call for
higher taxes on silver investors---was it an idea slipped to them from the
users association? Observe, there was no higher tax proposed on
FABRICATED silver! I have seen enough references in the public record
of silver users calling for price caps on silver and silver miners.
However, while I have spent untold hours walking musty aisles in large
university libraries searching for facts on the silver struggle, I still have
NEVER found one solitary reference in which ANY silver miner EVER called for
a price cap on FABRICATED silver! This is a powerful clue as to in
which camp you find immorality---it’s on the part of the awful users!
John Stevens, chairman of the Silver Users Association’s executive committee,
crowed that---
“The Mexican Government has provided silver for its domestic users at 69
cents an ounce.” (Commercial & Financial Chronicle, June 10, 1965,
page 2426).
Rumors abound that COMEX shorts have been getting all the 1,000-ounce bars
they could squeeze out of Industrias Penoles of Mexico. Silver friend
Hugo Salinas-Price, beware your countrymen doing deals with Satan! If tax on
silver bullion gains could be increased from the present 28% to 90% it would
prevent us from getting ahead, which is the bankers goal. In their view
of the world, when they start to lose, the rules must be changed, just like
on the Commodity Exchange. For this reason we must have a lobby; no
group gets favors or protection without one! PAC contributions
routinely neutralize voter wishes. Therefore, voting isn’t
sufficient. Only contributions buy influence. Contact your
Congressman and Senator to tell them you have no intention of selling any
silver until the confiscatory 28% tax is repealed. There was a case in
which Golconda Mining of Idaho lost in Tax Court on April 27, 1972,
concerning an “Accumulated Earnings Tax” (58 T.C. 139). Another
commonly mentioned risk is that of nationalization of mineral properties in
other nations. WSJ, November 5, 1969, page 39 spoke of---
“The ever-present risks of Government seizure in South America.”
Hecla Mining Company recently had some 5,000 ounces of gold seized or
impounded by Venezuela in an alleged accounting dispute, in a time when that
government has hostile relations with America. At this point the
physical only investors have an “I told you so attitude.” It will be
more constructive if we all hang together so as to be less likely to hang
separately, so to speak. Ultimately we are all in the same boat.
Physical metal hedges mining share risk, yet the reverse is also true.
WSJ, July 24, 1967, page 4 mentioned the “Mexicanization” law of 1964 which
“imposed prohibitive taxes on any business held 50% or more by non-Mexican
interests.” The article also mentioned the 12.9% production tax on
silver in Mexico. The story commented---
“Jose Garcia, president of the Mexican Mining Chamber, a trade
association, is unyielding in his view that the tax is the principal reason
there hasn’t been a major new silver mine opened in Mexico for more than half
a century.”
Those of us who own physical precious metals, which should be all of us,
need to bear in mind that those metals did come to us by way of mining
companies, and we should express some gratitude for their entrepreneurial
spirit. Those Mexican mining limitations have since been
discarded. We need to see they don’t return under the guise of misguided
populism. Mining companies and producer nations wishing to return to
silver money can work out fair terms without reneging on original
contracts. Another risk we face is accusations that the mining
companies somehow caused, or contributed to, sharply rising silver and gold
prices by collusion. Fear of such accusations is probably why the
silver miners didn’t rush to buy physical when it was suggested they do
so. The Associated Press reported on May 15, 2003 that European
Commission antitrust investigators raided copper miners headquarters in a
price fixing investigation on anti-competitive practices, coordinated with
regulators in the U.S. and Canada. Among those raided was RTZ London,
the former Rio Tinto Zinc, the world’s largest polymetallic miner by market
cap. Silver is the target of price suppression to an extraordinary
extent because it’s the only commodity with a user’s association, AND because
it’s MONEY, and governments fear real money because they can’t create
it. Why do you think the Justice Department did nothing after Ted
Butler said he asked them to examine the Silver Users Association for
antitrust violations? Because Government policy is to hold silver
prices down, or allow others to hold prices down. Stephen Fay’s 1982
book, “Beyond Greed---The Hunt Family’s Bold Attempt To Corner The Silver
Market” is recommended reading (buy it on Amazon), though as an employee of
the London Sunday Times, he worked for its owners, the Astor family, who are,
like all the old rich, hostile towards new rich, because they have an “us
four and no more” viewpoint. On page 172 he observed---
“Walter Frankland’s lobby in Washington, the Silver Users Association,
pulled every string it knew. At the CFTC, Frankland suggested position
limits and liquidation-only trading. At the Treasury Department,
Frankland proposed that Secretary G. William Miller authorize the sale of 40
million ounces of silver that the department had stockpiled and for which it
had no foreseeable use. Sell 40 million ounces, Frankland pleaded, and
the price will stabilize, perhaps even fall. But Secretary Miller was
more concerned with the gold price, and believed there would be strenuous
opposition in Congress to any sale from the silver stockpile. In
desperation, Frankland even visited the Justice Department to inquire into
the possibility of an indictment of the Hunts under the Sherman Antitrust
Act. But he got nowhere there, either. Frankland’s problem was
perhaps that the concern of the Silver Users Association was so evidently
motivated by self-interest; they always thought the price was
too high.”
Funny how a member of a lobby goes in to accuse longs of wrongdoing, when
his lobby is so obviously guilty of wrongdoing on the short side of the
issue. But the Justice Department has no interest in investigating the
Silver Users Association since as we’ve seen, the Feds like low silver prices
so their printing press “money” can appear to have more value. It’s
more likely that the Justice Department will start an investigation of gold
and silver mining companies. Just as with the CFTC and exchange
management, no wrongdoing can possibly exist on the short side. The
secret, unacknowledged creed is, it’s OK to abuse commodity producers,
especially if silver is what they produce! And, woe betide anyone who
dares use silver as money! Remember the Franklin Sanders Story!
We are immersed in an atmosphere of financial crisis being potentially
torched off at any major disturbance in the bond market, derivatives, shares,
trade deficit and other dangers. Consider the following prediction from
another, but less perilous, period of financial instability (Commercial &
Financial Chronicle, April 1, 1965, page 1363, “Official Gold and Silver
Decisions May Trigger Monetary Crisis’)---
“All of these developments can be
expected to disturb the public as to the integrity of the dollar in which
their savings are denominated. If a wholesale loss of confidence in the
dollar should result, a massive internal flight from the dollar should be expected.
Such a flight would probably be directed first at demand deposits in
commercial banks. Wholesale withdrawals of demand deposits from
commercial banks could easily result in the imposition of a bank holiday,
which could last longer than a week or 10 days. During such a period,
numerous government restrictions could be expected all aimed at limiting the
conversion of dollars into tangible properties, foreign exchange, and common
stocks.”
Another risk is that of “smart tags” picked up who knows where, then coded
to your Social Security number, which could be used to locate you and
therefore, locate your metals. The Auto-ID Center at Massachusetts
Institute of Technology website says---
“The Auto-ID Center is designing, building, testing and deploying a global
infrastructure---a layer on top of the Internet---that will make it possible
for computers to identify any object anywhere in the world instantly.”
RFID or Radio Frequency Identification uses tiny microchips with
antennas. Also termed “smart tags,” they are the size of a shred of
paper and can be embedded in cans, tires, pencils and pens, sunglasses,
shotgun shell cartridge boxes, cosmetics make-up mirrors, you name it
(perhaps even canvas bags containing silver coins); and can be read by remote
readers. You won’t know when you’re in transmission proximity to a
reader. Each smart tag transmits a unique I.D. number. In this
manner we can all be tracked as to location at any time. At this time
the capabilities are fairly limited. It may be like comparing Henry
Ford’s first cars to what we have now, however enhancement won’t take but a
few years. One of the sponsors is the U.S. Defense Department with its
Total Information Awareness Initiative. Do you have any privacy rights
left? Not according to Big Brother! RFID tags are allegedly in
the new bills circulating here and I hear that a $20 placed in a microwave
oven for a few seconds, will yield the result of a burned spot in Andrew
Jackson’s right eye. Euro currency also has RFID tags, or will have by
2005, which is when Wal-Mart intends to send all merchandise out the front
door with smart tags so you can be tracked. Along with their export of
jobs to China, this should be all the reason you need to never buy there
again. It may be possible to stop smart tag paper currency from
relaying its location by keeping it wrapped in aluminum foil. So the
next question becomes, will foil become a controlled substance?
GOLD & SILVER OWNERS GUILTY OF MONEY LAUNDERING?
Others have addressed this. Let’s talk about it briefly. It
has to do with the Bank Secrecy Act of 1970 and expanded definitions of what
could constitute a financial institution. Metals dealers can be
considered financial institutions. Section 352 of the U.S.A. Patriot
Act directed the Treasury Department to require financial institutions to
have anti-money laundering programs, as of February 21, 2003, this includes
precious metals and gem stones, especially diamonds. The public
explanation as to the need for these procedures is to curtail the financing
of terrorist activities, and illegal dealings such as narcotics
trafficking. Metals investors, who are neither interested in funding
terrorism, nor in engaging in crime, should be wary that a net could be
thrown over them, as irrational extrapolation of the stated purposes.
The Treasury Department has an anti-money laundering hotline, 1-866-556-3974,
for submitting suspicious activity reports. This would typically
concern anyone who came in to buy or sell metal, and for some reason or
combination of reasons, seems suspicious. It would seem that those with
Arab sounding names are especially at risk if they are metals
investors. Information I’ve seen indicates dealers have to keep records
of suspicious activities reports for five (5) years, and additionally that if
those records are sought by subpoena from any level of government below
Federal, to ignore the subpoena. The Financial Crimes Enforcement
Network is especially interested in the use of precious metals and diamonds
for financing terrorism. Civil and criminal penalties to dealers are
enforceable in event of “willful blindness” to use of metals and precious
stones for money laundering and terrorism. Offshore banking could raise
a red flag also, unless presumably the individual is a member of approved
insider organizations.
The Financial Affairs Task Force rates Indonesia, among other nations, as
“non-cooperative.” There are news stories about Indonesia that
can be pointed to as reasons for the rating, but I suggest the real reason is
Indonesia’s move to return to gold and silver money. Paper money
creators don’t want people getting ahead by owning precious metals and are
out to prevent this any dirty way they can. The Denver Post, April 16,
2004, ran a story in which the former Echo Bay Mines is supposed to have paid
off terrorist groups linked to al-Qaeda to avoid disrupting a gold mine in
the Philippines. The story, attributed to Allan Laird, former mine
manager, was disavowed by Robert Leclerc, former head of Echo Bay, now owned
by Kinross Gold. The Justice Department is investigating. With a
story like this circulating, the door may be open for precious metals miners
to be unjustly accused of funding terrorism based on false allegations!
A simpler form of economic terrorism, from the viewpoint of the selfish
silver users, would be for silver investors to form cooperatives to pool
their metal resources. Having done so, they can then purchase casting
equipment and fabricate their own sterling silver jewelry, and open up sales
outlets to the public. Indian merchants would be happy to supply
gemstones for settings. This would be an opportune way to strangle
silver supply to the likes of Tiffany & Company, Silver Users Association
members. After markets are established, these silver cooperatives can
offer loose diamonds and colored stones, easily selling for less than
Tiffany’s because their reputation for overblown gemstone prices is based on
their incurable greed, charging fools for their snob name! Certainly
you could sell silver direct to industrial users, but then you only get the
bullion price, not the fabrication mark-up on top of
that!
WHAT EVERY ONE OF US MUST DO
A check on Alta Vista search engine returned 1,086 hits on “windfall
profits tax.” This is a type taxation called for every time some sector
suddenly experiences a dramatic upsurge in profitability. Congressman
Dennis Kucinich (Democrat Ohio, see house.gov) called on the Clinton
administration and Congress---
“To implement a windfall profits
tax to penalize oil companies engaging in price gouging as a result of the
recent dramatic increases.”
In the “Energy Crisis” of 1973,
with its long gas station lines, a windfall profits tax was levied on
domestic producers. Without making certain of my suspicions, I suggest
it might have been put through at the will of big multinational companies, to
make independent companies weaker. In January 2003, the Connecticut
state legislature had a proposal to impose windfall profits taxation on drug
companies. That particular tax might be justified considering the
nature of the pharmaceutical industry. However, in the case of sudden,
sharp commodity price increases in gold and silver, should producers of
natural resources automatically be hit with a windfall profits tax? The
answer is yes, if---you’re a total have-not individual, and gloat seeing the
success of others limited; if you’re a member of the Silver Users
Association, you have always wanted silver miners on a starvation basis; if
you’re a tax-consuming bureaucrat with a budget shortfall to cover, and
you’re willing to grab anyone’s wallet to cover it; and if you’re a
beneficiary of unbacked paper money creation, you fear remonetization of gold
and silver the way the condemned man fears the scheduled date with the
electric chair! A bit of poetry---
Swing a dead chicken, utter a
voodoo chant,
But without gold & silver, you really can’t,
Fix the money system, hear the stupid rant,
Of the prostitute economist, who shows his slant!
A check on Searchalot search engine
returned 31,600 hits for the query, shareholders + gold mining. The
same source returned 10,900 hits on the query, shareholders + silver mining.
I don’t know how many shareholders
of gold and silver mining companies we have in the United States and Canada.
More to the point, I don’t know how many of these people have such shares as
their biggest investment. However, I suspect the figure could exceed 1
million investors here and in Canada, at least 250,000 such persons, having
gold and silver shares as their primary investment. Then there are
those who hold only physical metals. Friends, we are all in the same
boat. There is no need to bicker about whether mining shares are better
than physical, or the other way around. There is no need to debate which
metal is the better holding.
What we all need and must have---or
we may be wiped out by legislation, Executive Orders or court rulings---is a
lobby for all precious metals investors including platinum, to lobby for the
following--- (1) no windfall profits taxation on precious metals mining
companies or their shareholders; and no such tax on physical holders, which
could also be called a “hoarder’s tax”; taxes on physical to be levied at
same rate as long term capital gains on shares and retroactive tax refunds to
investors who’ve been victimized by the 28% rate; (2) no nationalization of
gold and silver mineral properties or increase in pre-existing Federal or
state royalty agreements; (3) no Federal confiscation or civil asset
forfeiture in cooperation with local police agencies of any physical precious
metals from private citizens or mining companies, for any purpose, including
defense silver stockpile, national emergency declaration or remonetization;
(4) repeal of any provisions of the Patriot Act that interfere with our
investor rights, including privacy rights, to include protection against
false allegations of money laundering and terrorism, and against “smart tag”
privacy violations and misuse of the FBI’s “Carnivore” system for
intercepting E-Mail messages; (5) no Federal freeze on withdrawal of bank
deposits, which would be aimed at preventing people from attempting to
protect themselves by buying tangible assets such as precious metals or
diamonds; (6) pressure Congress to forbid individual states from enacting any
such taxing or seizing legislation; (7) pressure Congress to influence
nations where metals are mined, to avoid enacting laws doing any of the
above, to include imposition of confiscatory royalties and limitations on
export of physical commodities; (8) no unreasonable tightening of
environmental regulations on mining; (9) institute Federal regulations in
mining to correspond with the Oil Depletion Allowance, first enacted in 1926,
and return to a subsidy of 75% of exploration costs for silver, as we once
had in the Office of Minerals Exploration (New York Times, October 8, 1964,
page 38); (10) make Congress investigate the responsibility of the silver and
gold crisis, to include responsibility born by CFTC (called a “watchdog
agency,” Wall Street Journal, November 15, 1978, page 17); NYMEX and members
of Congress, and impeachment brought against them; and including price
rigging on exchanges by big banks, and leasing of metals, then assess
penalties to individuals and corporations including treaties with foreign
nations, forcing those who leased metal to return all of it, regardless of
price burden, after such nations make good faith demonstrations that shady
central bankers will never be permitted to lease out their people’s metals
ever again; (11) reparations to defrauded commodity investors, those with
affected pension funds and IRA accounts, and retroactive relief to silver and
gold producers in the form of exploration incentives and tax abatements; (12)
make Congress force the Silver Users Association, exclusively without
assistance of taxpayers, replenish a national strategic silver stockpile (it
used to be 165 million ounces) at whatever price per ounce is necessary, as
the public record contains EXCESSIVE proofs that they are the reason we don’t
have such a reserve any more; and rather than threaten to seize silver from
investors, give them incentive to sell by a moratorium on all gains taxation;
(13) prohibit members of the Silver Users Association from purchasing silver
within the United States, at any price, to give manufacturers who may not be
responsible for fouling the waters, a chance at silver; (14) remonetization
of gold and silver---a return to a Constitutional basis for our money system,
combined with scrapping the Federal Reserve, returning to Congress the money
powers hijacked from it in 1913 and opposing any move towards a single
“hemispheric” currency modeled after the Euro; (15) elect or have judges
appointed who are favorable towards Constitutional money; (16) return excessive
Federally owned acreage to the State of Nevada; (17) abolish all use of
chlorine as water disinfecting agent due to harmful side effects, and mandate
substitution of silver; and (18) public educational campaigns as to why
remonetization of precious metals---not gold only, but silver also---will
benefit everyone with monetary stability and confidence.
If we can force Congress to
confront these objectives, many on Capitol Hill will feel like they’re being
torn apart by teams of horses, considering that most of these men appear to
have been on the take from silver users and the paper money crowd! It
was the paper money crowd who first turned their legislative curses against
silver. The industrial users got on the price suppression bandwagon
many years later (1873 versus 1947 officially, but unofficially at least back
to the early 1930’s.) Concerning return of leased silver, the expense
of such a measure would bankrupt industrial users, because their end-user
product charges would climb so high, business would go to competitors.
Another important item on the agenda of the new lobby could be to serve as a
registration point for class action lawsuits against entities and individuals
who naked shorted silver. Milberg Weiss is the most notable class-action
firm in the country and might go after the offenders with merciless
aggression. The lobby or PAC will not immediately focus on offensive
measures aimed at bringing shorts and users to task, but rather on those
points aimed at protecting our interests from punitive taxation, price
capping, seizure, and telling us to whom silver may be sold.
RESULTS WE CAN ACHIEVE IF WE ALL
PARTICIPATE
If we can activate 1 million
precious metals investors in the United States, to contribute $10 each per month---$120
per annum---as a minimum amount---we can fund the proposed lobby to the
extent of $120 million annually. Dear friends! That is only about
33 cents a day! That should be the minimum participatory level.
Half the price of a package of chewing gum! It’s a small insurance
premium to safeguard your future! Mining company funding could increase
the amount to perhaps $150 million, or there could be a separate, corporate
PAC. We the shareholders must constantly remind management to do what’s
right for us! Those who are fortunate to hold large numbers of shares,
and/or large amounts of physical metals, should in good conscience,
contribute more. I will be happy to be among the first to
contribute. Such a budget can buy massive advertising, even if outside
the usual channels. Direct mail can be sent to most American households
for the purpose of explaining to the general public why support of its
objectives benefits them---by returning to sound money! There are
probably several dozen websites advocating gold and silver money. A
base can be formed almost at once by enlisting their assistance in recruiting
dues paying members. Remember, President Jackson, Chief Justice Roger
Taney and Senator Daniel Webster didn’t get rid of the Bank of the U.S. by
themselves. They had a broad base of public support! So must we!
Metals investors forming their own
PAC?
Silver users & bankers will blow their stack!
Last thing they want us to do is to fight back!
Senator on the take could have anxiety attack!
What we need is a metals PAC to influence legislation!
Gold & silver people united in a powerful combination,
With new laws causing bankers & users inflammation,
Forcing Federal Reserve into permanent cancellation!
Did you know that the National
Rifle Association has around 4 million members, and an annual budget of about
$200 million? That works out to under 14 cents per day per
member! According to nranews.com, they’re starting a “news company” and
are acquiring a radio station to stream video to the Web. In 2002 the
NRA lobbied on Capitol Hill with so-called “soft money” to the extent of
$2.27 million. NRA is a single-issue organization---gun rights.
The most effective lobbies are usually single-issue organizations. NRA
also mobilizes its members for massive letter writing campaigns to Congress
and local newspapers. What I propose will be a fully audited
organization with no chance of funds being used for purposes other than its
charter allows, or as the membership votes to amend the charter. First
there will be a website, then an online publication or monthly update.
It can have an annual convention, and local chapters in larger cities.
The chapters should write their state legislators asking them to pass
resolutions calling on Congress to remonetize gold and silver while
recovering its monetary powers from the Federal Reserve, which is to become
defunct! Imagine what we could do with our own radio station to counter
the lies the newspaper editors and broadcast commentators will belch out.
The PAC can have links on all metals websites representing the long
side. The Canadians can form their own lobby along these lines, and set
up office in Ottawa. Corresponding lobbies can be set up in Australia,
Mexico, Peru, Bolivia, Chile and Argentina. After the first press
conference at the Washington D.C. headquarters, watch for a CNBC reporter to
say something like---
“The gold bugs and the silverites
are trying to work together to form a precious metals bloc to bully
legislation through Congress, intended to give undue favoritism to the
outdated silver industry. They urge their followers with obsessive
mania to hoard metal needed for manufacturing, without which jobs are at
risk. Their mistrust of paper money speaks of long-standing populist paranoia
towards Wall Street. Some gold executives have hatched a plot to strip
the public of funds through gold remonetization. Federal Reserve and
Treasury officials are dismayed by the prospect of the proposed lobby, and
prominent bankers are meeting to counter the misguided group. Internal
Revenue Service officials are calling for tax surcharges on these archaic
metals, which have long since failed as money due to incompatibility with
modern technology. A mental health organization has suggested they
should seek treatment for their obsessive-compulsive behavior.
Pharmaceutical scientists plan research into new drugs to treat those
affected by the newly identified disorder, metals paranoia syndrome.
Leading university economists, newspaper editors and award-winning financial
journalists declined to endorse their stated goals, which are inflationary
and seek to undermine our reliable paper currency, which fashion sources have
applauded because the new ink colors are attractive. Their
spokespeople, who financially speaking equate to barricaded survivalists
mistrustful of the Federal Government, have just entered their fortified
compound and slammed the door shut!”
Every time the media reports on the
new lobby, they will refer to the headquarters as a “compound.” I
propose that the mining companies join the lobby, as it is in their highest
interest to do so. There could be a dues structure based on a very
small percent of quarterly net income. Whatever the private views of
mining company managements and directors concerning remonetization, one point
is so apparent that it cannot be argued against---remonetization of gold and
silver will make strong companies even stronger. They are not only
mining commodities, they’re mining MONEY! Remonetization would make
them “monetary agencies.” The Commercial and Financial Chronicle,
November 5, 1964, page 1709, featured an article titled, “Silver’s New
Stature and Inevitable Rise in Price” by H.F. Magnuson (Harry, I believe),
who was vice president of Golconda Mining Corporation. After almost 40
years of waiting, we must be at the threshold of improving prices as of
today.
At the state level we have seen a
movement in Nevada to have a circulating silver coin, and now in New
Hampshire there is interest in gold and silver as money. These lobbies
I speak of, in Washington and Ottawa, should have corresponding entities in
other nations. Australia is a prime example, since it is a large
producer of silver and gold. The economies to our South, beginning with
Mexico and ranging down to Chile and Argentina, should have corresponding
organizations. Action such as this can lead to the overthrow of the
unbacked paper money system. Anyone from the big banks of the world
reading this hopes that you will do nothing. They hope you will remain
faithful to those stupid professional sports, to which too many of you devote
excessive time. The idea that others will fulfill your individual
responsibilities will sink us, if too many of us think that way. The
silver as money issue was so intense during 1892-1902, that there was a
National Silver Party, with much support from Nevada. In the 1896
campaign to elect William Jennings Bryan to the White House, 1,125,000 copies
of one of its booklets were distributed (“Monetary Crusaders of Yesteryear,”
Banking, June 1964, page 60). Another pro-silver as money group, the
Committee for the Nation, which existed in the early 1930’s, was denounced by
the bankers as “promoting inflation.” (Banking, July 1963, page 58).
THE PROPOSED POLITICAL ACTION COMMITTEE
I must diverge with the senior
silver commentator, Ted Butler, when on April 19 last, he said he wasn’t
“suggesting that the silver miners band together as a group to influence the
price of silver,” like the users association on the other side. He
expressed concerns about illegalities. First of all, some of the silver
miners have already banded together in the Silver Institute, but that near
comatose organization isn’t what I’m referring to. It seems to be
mainly for statistics and information. The International Precious
Metals Institute is run by bankers, shorts, and the Silver Users
Association. The New York Times, October 1923, page 23, ran a story
titled, “Committee to Protect Silver Producers” subtitled, “Mine Owners
Organize Association and Appoint Board of 12 to Formulate Policies.”
Member companies included Butte & Superior Mining; American Smelting
& Refining; U.S. Smelting & Refining; Sullivan Mining; Tonopah
Extension Mining; Tintic Standard Mining (after a district in Utah); United
Verde Mining; Atlas Mining & Milling; and California Rand Company.
A brief excerpt---
“Organization of a silver producers
association, to include some of the strongest financial and mining interests
in the United States, has been undertaken by a committee headed by C.F.
Kelley, President of the Anaconda Copper Mining Company. This committee
was to consist of fifteen, but thus far only twelve have been named.
The remaining three to be chosen will represent silver mining interests in
Canada, Mexico and South America. It is understood that this committee
will have large powers in formulating the policies of the association.”
At some point this organization
disbanded. Now it is desperately needed once again. We could have
more than one lobby. We could have one representing corporate members,
and another for rank and file shareholders and investors. If things go
that way, as much mutuality as possible should be sought, the better to
influence legislation. We have pharmaceutical, medical, legal, banking,
retail, teachers and other lobbies, or political action committees.
There seems to be a drift, to run parellel to the subliminal message that
says “any silver price increase is only due to excess in speculation;” and
that drift would be “silver miners banding together to form a coalition would
be wrong;” whereas, it’s OK for the users to do so. Will we be psyched
out as by the arm-wrestler who suggested to opponents upon lock-up, “don’t
resist me!” NYMEX also has a political action committee and has ALREADY
contributed money to a Senator from a silver state (see below)! If we
give an inch, the other side will take a mile. Concerns over
illegalities can be carefully avoided. One silver executive, those of
you who are well-read know of whom I speak, is already on record as proposing
to sell enough silver to cover costs, then “vaulting” the rest. That’s
how De Beers has held diamond prices high, by withholding supply.
However with the silver problem supply has been withheld because of too low
prices. He may not want to vault silver later. Certainly I would
expect hundreds of times more regulatory scrutiny on a silver miners
coalition, than on the hellborn users association, who bestows tremendous
advertising patronage on the media, who in return will editorialize
(propagandize) for them. The pharmaceutical lobby exists to boost their
profits and has not been convicted of illegalities. It has not been
ordered dissolved. A formal silver lobby, united with a gold lobby,
would be the strongest force for monetary well being since the Constitution
was framed. What, silver shorts can get away with detonating 1,000
H-bombs, but silver miners can’t fire a kid’s cap gun? Do you think
Congress will ever do the right thing for the country in regard to restoring sound
money, when they’re getting influence from the other side and NONE from
us? We must not have any attitude of timidity! It is not
necessary to walk on eggshells to demonstrate we are within the law.
Our role will be to prevent users and shorts (paper money creators) from
influencing the price of silver down. Beyond that, we will do
everything legal to promote demand and rising prices. Promoting a
renewed strategic silver stockpile is hardly illegal, but it would be a boost
to prices. Harry Magnuson of Golconda Mining said (C&F Chronicle,
November 5, 1964, page 1709)---
“This nation cannot afford to have
its supplies of silver exhausted, because of the strategic use of silver in
rocketry, space and defense industries. Spokesmen for the Idaho silver
mining industry recommend that the government maintain at least a 500 million
ounce strategic reserve of silver, because they are concerned about the
defense aspect of the metal. Our experience in World Wars I and II
certainly illustrate the need for having an available reserve of
silver. The Department of the Interior shares in that concern. A
special study made by the Bureau of Mines says that such defense uses for
silver, added to conventional strategic uses, make any shortage of silver a
threat to national security.”
I wrote to the Industry
Council on Tangible Assets, which features some positive statements at its
website. No comment was received. It may be that the ICTA is
mainly concerned with numismatic investments. The Silver Institute appears
to be not so much a lobby group, as a source of information. Butler’s
occasional criticism of them is noted and to the point. The problem
apparently stems from the situation that some of their members are users and
shorts! The American Mining Congress and American Mining Association
appear concerned mainly with base metals; however, the American Mining
Congress was able to get 40% silver Kennedy half dollars after the 90% coins
were eliminated. The AMC was a voice for silver coinage (Commercial
& Financial Chronicle, February 4, 1965, page 557). Perhaps they
would be interested in assisting if they haven’t been overly
infiltrated! The Nevada and Idaho Mining Associations should be
interested. Silver Investor website is the single best information source
on silver, when it comes to “uncensored” information. The closest thing
we have to a precious metals lobby, of which I am aware, is the Gold
Anti-Trust Action Committee. Until very recently, the concern of this
organization has been primarily for gold. My understanding is that most
everyone who is part of GATA, or LeMetropole Caf�, is now concerned with silver also.
GATA was organized to bring an end to the gold market price
suppression. Its efforts were valiant and noteworthy, though the major
media usually ignored them, knowing publicity would only help their cause,
and predictably, ran into an unjust judge associated with a super-rich
family, the Mellons, who have gifted the country with five terms of Treasury
Secretaries! The metals price suppression ends only because of
deliverable silver running out on the COMEX, not because of a previous event
in gold, and above all NOT because Spitzer did anything for us! Ted
Butler has sent umpteen numbers of letters to Treasury, Federal Reserve, COMEX,
NYMEX, New York Attorney General, Justice Department, CFTC, Joint Chiefs of
Staff, Senators and Congressmen, all to no apparent avail. I have
written my share of protests to authorities. We get no measurable
results. The missing ingredient? CONTRIBUTIONS! If we can
form the political action committee described here we can get control of
America’s financial future!
POLITICAL HISTORY PROVES WE NEED
A PAC
Now having the beginning of our
objective of higher gold and silver prices realized, to believe that all we
in the precious metals community need do is relax and coast along, would be a
grave mistake. After COMEX silver price suppression ends, the focal
point of silver price suppression will shift back to the Federal Government,
who last carried that banner with the Nixon era Cost of Living Council and
its stupid price capping. We have to hammer across to Congress the message
that placing a Federal price cap on silver is economically stupid and
ethically wrong! The Feds could place a price cap on silver, then the
miners would react by saying they’ll stop producing, or they’ll export the
silver. Federal response could be, we forbid you to export, and we will
nationalize your ore if you don’t produce. This entire scenario was on
the way to taking place 32 years ago (Wall Street Journal, July 24, 1972,
page 16) Hecla Mining called the Rumsfeld/Cheney Cost of Living Council’s
Federal price cap of $1.61 on silver, “arbitrary and capricious
discrimination against a basic industry.” Still think we don’t need a
silver/gold political action committee on Capitol Hill? Expect to SINK
without one! The Commercial & Financial Chronicle occasionally
printed opposing viewpoints, (as if to suggest it was a balanced media
source). In the edition for October 14, 1965, page 1399 we note in the
article, “Completing a Full Cycle Of Financial Irresponsibility”---
“As both gold and silver are
essential to the modern world, how long will it be before their prices will
have to be increased so as to revive their production? A fixed price
always stifles production!”
The commentator, a Mr. Cyril F. dos
Passos of New Jersey, also understood the difference between sound and
unsound money---
“Today our paper currency is
redeemable only in more paper. The result of all this has been inflation
and more of the same ink cannot help but follow. Valueless dimes and
quarters and half dollars worth but 40% of their prior value will add fuel to
the fire.”
Will the Feds say that because
parts of the Arab world are going back to gold and silver money, that by
holding on to our metals, we are “terrorists?” French philosopher
Voltaire (1694-1778) said--
“It is dangerous to be right when
the government is wrong.”
With the end of a suppressed price
structure in silver and gold in commodities markets, the rest of the battle
starts NOW! We will have to contend with a very vicious news media
smear campaign. The attempts described above to limit our gains WILL be
implemented if we fail to organize an appropriate lobby. I personally lack
all necessary qualifications to administer such a lobby. One of those
is realizing you are the best one for the job. However, there are those
who have all the qualifications. Among those involved should be
Senators and Congressmen from mining states including Nevada, Idaho, Montana,
Utah, Arizona and Colorado---the “radical silver group” as they were called
by the paper money spokesman (Commercial & Financial Chronicle, New York,
April 13, 1935, page 2453; Business Week, July 30, 1955, page 136 said 14
silver Senators voted for “unsound” and “inflationary” silver; Business Week,
March 23, 1963, page 148, said the Capitol Hill “silver bloc” members were
“bullies;” Banking, July 1964, page 135, criticized the “Senate silver
bloc”). Banking, June 1964, page 61 said “some of the greatest nonsense
the Senate has ever heard” came from silver backers. The same issue of
Banking (page 61) made reference to---
“The demonstrable economic
unimportance of silver mining in the West and particularly in Nevada.”
Silver miners are just stupid, said
the bankers; they must be stupid, because what they do has no economic
importance. Only stupid people do things that are unimportant!
While bankers and silver users are on record as alleging silver to not be
money, they contradict themselves with statements like the one appearing in
Banking, July 1964, page 134---
“Rising industrial demand for
silver is making it too precious for use as circulating money.”
This was the same source that
suggested plastic coins---outrageously beyond ridiculous--- be
substituted for 90% silver coins, April 1965, page 47, lamenting that---
“Plastic money seems unlikely to
meet with public approval.”
So we should all kick ourselves for
throwing away over the years, so much banker approved money raw material---PLASTIC!
The Commercial and Financial Chronicle, April 1, 1965, in an article titled,
“Official Gold and Silver Decisions May Trigger Monetary Crisis,” page 1363
we find---
“For many months the Treasury has
been working to find the best solution for the inevitable fractional silver
coinage debasement. During the course of this study, consideration has
been given to the use of base metals such as aluminum or stainless steel,
alloys, plastics, and a reduction in the fineness of the silver content.”
Yes, the cutthroats would have
given us plastic coins but the bankers knew it would finally cause a
revolt. We should begin by gaining converts in the Senate, as there are
only 50 members, and if we have as many as 14 to start with, we can work towards
gaining a majority. Past history shows that Texas, Missouri, Oklahoma
and Indiana have also had representation on Capitol Hill, in favor of real
money. Would it be advisable to first approach the fence-straddlers and
the enemy camp, looking for defectors, with a line from Richard Boone’s
hell-for-leather 1964 western “Rio Conchos”---
“How does anyone get to you?
How do I get inside those twisted guts of yours?”
I propose we begin on the shoulders
of GATA if they are willing hopefully, calling on their leadership, skills,
know-how, and contacts, to form such an all-encompassing Precious Metals
Lobby. The actual name is subject to determination. At this time
GATA is too seriously underfunded due to having far too few members. The
Central Fund of Canada and its holders, as well as Toronto based Millennium
Bullion Fund, should be sources of input for a metals lobby. I would
love to see GATA launch a mass membership drive with ads on major metals
websites. Silver MUST always remain included in the agenda! We
should look for like-minded leaders in Australia, Japan, and the nations to
our south. Having reached the beginning stages of improved precious
metals prices, we don’t need to see these gains obliterated by punitive
legislation. Can’t suppress the price of silver by COMEX fraud?
No problem---suppress the silver price through legislation! We don’t
need to sit on our hands enjoying our gains, while the anti-silver Brookings
Institution, National Bureau of Economic Research and other entities like the
American Economic Association propose price-capping restraints on silver
prices. A key point to always bear in mind is that silver mining has
been a losing proposition for many years, due to the manipulated low prices,
and all the bankruptcies and share price wipeouts thereby produced.
Much higher prices are mere
justice, for what the silver producers have endured over the decades. I
propose that instead of another precious metals and natural resource
conference, we organize a conference dedicated to forming the appropriate
political action committee or lobby, described here. If someone is
beating up your child, you don’t wait till the police show up. You try
to stop it yourself. This is the situation YOU personally are in NOW,
dear reader, relative to your gold and silver investments. This should
occupy the majority of your attention while you reflect on your
investments. The Silver Users Emergency Committee was the predecessor
to the Silver Users Association (Commercial & Financial Chronicle, May
30, 1946, page 2956). They will turn our bonanza into an emergency of
zero profits, if we stand idle and do nothing!
FORMING THE CAPITOL HILL
COALITION
The Fair Treatment for Precious
Metals Investors Act (Senate 611, House Resolution 574) will, if passed,
provide that investors in bullion be taxed as to gains at the same rate as
stock investors. The current rate is 28%, the so-called “collectible”
tax applicable to things considered collectibles. Taxing silver and
gold at higher rates than stocks is clearly prejudicial in favor of
industrial users who don’t want us buying silver! Senate backers
include Harry Reid (D Nevada); John Ensign (R Nevada); Wayne Allard (R
Colorado); Zell Miller (D Georgia); Michael Crapo (R Idaho); and Saxby Chambliss
(R Georgia). House backers include J.D. Hayworth (R Arizona); Jim
Gibbons (R Nevada, of House Mining Caucus); Chris Cannon (R Utah); David
Dreier (R California); Phil English (R Pennsylvania); Nick Lampson (D Texas);
Marilyn Musgrave (R Colorado); C.L. Otter (R Idaho); Ron Paul (R Texas); Jon
Porter (R Nevada); and Joe Wilson (R South Carolina). In other silver
related bills, Congressmen Larry Craig and Mike Simpson of Idaho and Shelly
Berkley of Nevada were backers of the Wood Preservation Safety Act of 2003,
which calls for use of silver in place of phased out toxic arsenic compounds
for wood, such as in docks, bridges, piers, etc. It would be a leap to
assume that all the above lawmakers are necessarily ready to support the
objectives listed above. But we must start somewhere.
Some serious problems will be noted
at the start. Mining political action committees contributed $757,968
from March 2003 through March 2004 to members of Congress. However,
commercial banks---who oppose gold and silver money--- contributed $3,950,892
in the same term. Mike Crapo of Idaho got $1,000 from
Newmont. He also got, from opponents of hard money, $2,000 from Lehman
Brothers; $5,000 from JPMorganChase; $5,000 from NYMEX PAC (parent of COMEX);
and $10,000 from American Bankers Association (see reference above in which
they called for outlawing of silver “hoarding.”) The NYMEX PAC’s budget
was composed 11.23 % from funds contributed by Vincent Viola, chairman of
NYMEX, and James R. Collins Jr., vice chairman, jointly. NYMEX PAC also
contributed $10,000 to my Congressman, Joe Barton (R Texas). This is
the same Barton who took Du Pont money earlier and told me the CFTC knows of
“no malpractice in the pricing of silver.” Why is it that all these
people swear nothing is wrong in silver---it looks like, because they’ve been
bought off. Senator Reid of Nevada got $2500 from JPMorganChase.
Barrick Gold contributed $38,000; Newmont $39,200 and Freeport MacMorran
Copper & Gold, $16,500 in this period. However, the American Bankers
Association contributed $706,000 (opensecrets.org), see also
congress.org. Senator Crapo has also served as co-chairman of the
Congressional Beef Caucus, through which he perhaps knows James Newsome,
Mississippi cattleman who heads the rotten CFTC. Crapo is also a member
of the Anti-Trust section of the American Bar Association. Antitrust
and silver users, where have we encountered that before? If we can form
the proposed lobby and fund it with $150 million annually this would work out
to be a slight amount from all of us. There is no other way to re-take
Congress. We can actually do this if we’ll start now and never
stop. We can also lobby state legislatures. The rewards will be
off the scale! We will get returns far exceeding the investment.
The top 20 PAC’s contributed $19,755,165 in the last Congressional
cycle. I propose we raise 6 to 7 times that. One time Republican
Senator from Utah, Frank J. Cannon, who became chairman of the International
Silver Commission, proposed a “World Silver System” along with his colleague
in the Mexican Senate, Elezar del Valle (New York Times, July 27, 1931, page
10). It would be very appropriate to honor some towering patriots such
as President Andrew Jackson, vice president Martin Van Buren, Senator Daniel
Webster, and Chief Justice Roger Taney, all of whom fought courageously
against unbacked paper money issued by the London controlled Bank of the
U.S., which they succeeded in abolishing in 1836, to name some committees of
the proposed precious metals political action committee in their
memory. Below, General Jackson, who defeated the British at the Battle
of New Orleans on January 8, 1815 and later dealt the death blow to the
second (British controlled) Bank of the United States!
In the Commercial & Financial
Chronicle, April 29, 1965, page 1795, article titled, “Coinage and Silver
Must Be Commingled,” by Simon D. Strauss of ASARCO. We read---
“In the history of the Republic
there have been three occasions when silver coinage became scarce. One
occurred during the administration of Andrew Jackson; a second during the
Civil War. In both instances paper currency was circulated as a substitute
for silver coins. These notes of low value were held in contempt by the
public.”
Which is why Jackson abolished the
Bank of the U.S., it was issuing funny money like the Federal Reserve
today! What happens if we found our PAC and a bidding war starts over
legislation? We take our case straight to the voters, who will side
with us as they understand the value of sound money. We must be on
perpetual alert against false choices in political candidates. General
Wesley Clark who was until some weeks ago, widely touted as a presidential
candidate, is both a British Rhodes Scholar and Knight of the British
Empire. Therefore if elected he would have given Britain whatever she
wanted---more war on silver as money, and more of sending our troops to die
in more British planned conflicts. If you think these titles and
associations don’t mean complicity with a foreign power, you’re tragically
mistaken! If Bush is reelected, watch Iran get invaded next! The
British and their American partners want the Caspian Sea oil! The
Defense Policy Board, an organization of warmongers linked to subversive
foreign powers and military contractors, could declare that citizen held
silver must be forfeited to Uncle Sam because there is a state of war---a
national emergency. (The Defense Department wanted a 600 million ounce
silver stockpile long ago---Commercial & Financial Chronicle, April 1,
1965, page 1363). The same source revealed that 65 million ounces of
silver that was “on loan” (“leased”) to the Atomic Energy Commission, was
radioactively contaminated (in “Treasury Silver Today,” November 17,
1966, page 1757)! This was at a time when Glenn Seaborg, a scientist
with many links to Wall Streeters, chaired the AEC.
After the election, we will be
told---we must invade Iran (don’t worry, our senior partners, the British,
will supply 10% of the military personnel needed!) Members of this
demonized board include James Schlesinger, first American on record to
advocate arms sales to Red China, with silver short Lehman Brothers; retired
Admiral David Jeremiah, also with Chinese connections (see “Silver Devils” in
archives); Harold Brown, former Defense Secretary, now associated with
Warburg (Federal Reserve) interests; Rockefeller associate Henry Kissinger
(“we fight for oil”); and Hal Sonnenfeldt, director of the Atlantic Council
of the United States, which seeks to re-unite America with Great
Britain! It was the British who drew us into two World Wars! As
of late April, the House has passed a “Doomsday” bill, calling for special
elections to be held within 45 days, in the event that 100 or more members of
Congress are killed in a terrorist attack! So to the silver coalition
we want to form, I advise, take care, all terrorists may not be foreign
based! Please have your staff carry video recorders wherever you go,
scanning the surroundings!
LEADERSHIP---NEED IS IMMEDIATE
AND DESPERATE!
I call upon the recognized leaders
of the gold and silver communities, to correspond with one another, compare
notes, and begin a plan of action. I call upon these gentlemen to
expand the suggestions proposed here, and to form liaison committees to work
out the beginnings of the Precious Metals Lobby, which will safeguard our
rights, to parellel the way in which the National Rifle Association successfully
fights to preserve ownership of firearms. Will someone please lead the
charge, now that the call has been made? We will get behind you.
I am speaking of men such as Bill Murphy of GATA and his associates; David
Morgan of Silver Investor; Jason Hommel of his silver stock review; Edwin
Viera, Constitutional money authority; and others known to them. Either
they can lead, or nominate someone who can. Don’t wait till the other
fellow sends you e-mail on the subject; send him one first, or make a phone
call. Perhaps the new lobby could be located near the Silver Institute
to give them a wake-up call. I don’t recall them complaining about
naked short positions in silver, or about leasing. Problems aren’t
resolved by evading controversy. Let this matter die through inaction,
your investments are subject to being ruined. Do you understand what
“ruined” means? Just figure you’re falling, and you must engage your
parachute without delay. The Commercial & Financial Chronicle, August
22, 1946, page 1018, referred to the Emergency Committee of silver users,
forerunner to the Silver Users Association (a retail jeweler was speaking)---
“The mining interests are not going
to quit. The Emergency Committee which was formed some months ago still
has plans for the future. Another meeting is going to be held very
soon, at which a campaign will be laid out to meet what we expect is coming
from the mining interests.”
Friends, the other side thinks we
the mining interests should “quit.” We should roll over and play
dead. We should be stuck on professional sports, while they lobby
Congress and get what they want, which is to leave us without profit.
We should do nothing to form our own lobby, while theirs works round the
clock to harm us! The quote above came from a source who had no problem
with getting diamonds from the DeBeers cartel, yet the struggling silver
miners weren’t a cartel and he hammered at them! Having your way in
Congress appears to come down to who agitates the most, so that better be us,
or we can all sign on to be penny a year people at Wal-Mart. And we can
be eating “Soylent Green,” from the 1973 film with Chuck Connors and Charlton
Heston, in which the government feeds us a product partly composed of
corpses. We have to reinvigorate the old “Silver Bloc” in Congress, and
add allies to it, to battle for Constitutional money and fair
treatment. The Commercial & Financial Chronicle, November 19, 1942,
page 1807, in the article, “N.Y. Chamber of Commerce Urges Passage Of Bill
Releasing Silver For War Use,” we read---
“The silver bloc is opposed to any
legislation which might lessen the monetary sacredness of silver. There
was no sound economic reason why an ounce of silver should be held as
monetary backing.”
No sound reasons other than over 5,000
years of history, and the wisdom of the Founding Fathers in the
Constitution! The C & F Chronicle, June 10, 1965, (pages 2416,
2426-2427) featured a reprint of an address to the New York Society of
Security Analysts by John Stevens, of International Silver Company, Sterling
Silversmiths Guild of America, graduate of (Chinese opium trade related) Yale
University and chairman executive committee, Silver Users Association---
“Those who contend that our
subsidiary coins must have intrinsic value, specifically silver, do not
understand the function of a coinage system. Any amount of silver in
our coins is not only unnecessary but undesirable. Higher silver prices
do not guarantee any increase in production. The senseless retention of
silver coins is contrary to the recognition of silver as an industrial
material for which there is increasing demand. It is inconceivable that
the Mint would recommend the retention of silver in coins for the benefit of
the silver producers.”
We do not understand the function
of a coinage system, say the silver users! Again we read in the same
source (July 25, 1946, page 492) comments by the founder of the Silver Users
Association, Senator Sinclair Weeks of Reed & Barton silversmiths,
director of the National Association of Manufacturers (beware of them also)
and treasurer, Republican National Committee (1941-1944) who in the story
entitled “Will There Be Another Holy Crusade for Silver?” complained about---
“The attempt by westerners to
clothe silver in sanctity as a precious monetary metal.”
Sinclair Weeks (below, 1893-1972)
was also Secretary of Commerce, 1953-1958 and you have to wonder what he did
while in that position to help the silver users (by the way, I recently saw a
Reed & Barton Heritage Mint stainless steel spoon, made in China)---he
seems to be reciting a line from “Star Trek The Wrath of Khan” (1982)---“From
hell’s heart I stab at thee!”
Talk about giving off unspeakable
vibes! He also seems to be saying, “we’re politically active you’re not
which is why we keep putting the screws to you!” Notice how he posed
for the photo, the stance and placement of his hands implies someone who
would go to any length to have his way. He had less integrity than a
convict’s snot! Before we can truly mobilize the silver forces in
Congress, we must have mining company managements who are willing to speak
publicly for shareholders interests. It won’t pass to avoid controversy,
or worry about offending bankers and their stooges in government. As
the slogan of the National Write Your Congressman Club (Dallas) has it---
“Evil people rule when good people
do nothing.”
“Power always has to be kept in
check; power exercised in secret, especially under the cloak of national
security, is doubly dangerous.” ---William Proxmire, Democrat Senator
(1957-1989) from Wisconsin. And from the Wall Street Journal, March 31,
1980, page 16, speaking of the steep slide in the silver price caused by the
shorts and users who’ve always run the Commodity Exchange---
“Silver mining companies reacted
grimly to the price collapse.”
If you don’t get busy and organize
and support a lobby to look after the interests of the precious metals community,
the silver users and unbacked paper money crowd will pull strings in Congress
as fast as they can, and in the White House. They will give YOU
something to “react grimly to.” We’re all in metals to get ahead,
right? We don’t accomplish that unless we act to protect our
interests. How hard is that to understand? Did you know that a
restaurant chain, Outback Steakhouse, has a political action committee?
Aren’t we at least as interested in our rights as they are in theirs?
If we can control a majority in Congress sufficient to override Presidential
veto, we’ll deal the silver users and the paper money crowd so severe a blow,
their great grandparents will feel it. The second Bank of the U.S. was
abolished in 1836, abolishing the Federal Reserve and backing the dollar with
gold should be possible with a strong metals coalition! Send those
e-mails and make those phone calls ASAP! The call has gone out, who
will step up and lead the way? Like the famous “Indian Devil,” noted
for rage, we must say, “We’re mad as hell and we’re not going to take it any
more!”
It’s TIME to BITE, CLAW, and
SCRATCH Congress for what we want!
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