Silver Doomsday 2003

Silver Doomsday 2003Copyright February 2003 Charles Savoie

While arranging some interior decorating objects recently (silver bars and coins---I intend to never sell---let's send a signal of denial to the industrial users, along with India), I noticed a one-ounce wafer in a plastic wrapper standing out from all the rest. On one side the word "BACHE" appeared, they were a Wall Street broker used by the Hunts who joined ranks with those who sent the Hunts down a greased pole. It seems Manhattan is the world capitol for financial misdealing. Irving J. Louis Jr., an ex-Bache executive, filed suit against the firm on January 26, 1981, accusing Bache of falsifying its silver trading records. That bar is a little collector item, a bit of history from the period of the big price spike in silver.

Some of you may wonder, remembering that time in January 1980, why different figures regarding the maximum price are available. Reconciliation is simple. The $50.35 figure was in COMEX silver, whereas the $52.50 figure was the CBOT (Chicago Board of Trade) figure. The CBOT rapidly followed the COMEX lead in price suppressive rule changes. Therefore, both figures are correct as to all time price highs. Perspective is in order concerning possible price projections from that time to the current situation. Speculation as to when the event happens, and conjecture concerning what prices may be reached, and over what time frame, are necessary only as relating to giving us a sense of urgency to increase our holdings.

First let's very roughly adjust for inflation and double those early 1980 prices (probably more than double). Then let's factor in the elements that supply is far less than 1980 (2 billion or so ounces less in stockpiles); that mining reserves have been meaningfully depleted in over two decades; that demand has tripled; and that monetary demand for silver has started, and can only become more intense. I see a price of hundreds of dollars per ounce, at least over $200, and Butler, the most prominent silver essayist, has stated that his top projection of $100 per ounce "does not reflect just how bullish he is." Bob Chapman recently called the silver and gold landscape "the greatest financial opportunity in centuries."

As for the timetable, the COMEX shorts know for sure when doomsday arrives for their naked positions. Credit may now be given to David Morgan and Robert Chapman, who are both on record from way back as estimating the silver conflagration as possibly occurring by mid 2003, though I suspect their adjusted view is now that the end will be sooner than that, perhaps by a few months. I recall a document on the web from 1999 that said, "It has been estimated that, sometime in the year 2000, the world will run out of silver." Earlier estimates of the end in silver probably contained the subconscious factor of desire on the part of those making them, to see the price go ahead and fly. While those earlier estimates didn't play out---and fortunately so, since it gave us more time to accumulate, friends, the time is now very close as we are racing towards Silver Doomsday!

SILVER DOOMSDAY OR SILVER ARMAGEDDON!

In "A Taste of Armageddon," an episode of the first Star Trek series, chief engineering officer Montgomery Scott, after orbiting out of range of their weapons, radioed the high council of a world that held Kirk and the other Enterprise officers hostage and warned them,

"This is the commander of the U.S.S. Enterprise. All cities and installations on E-Minear 7 have been located, identified, and fed into our fire control system. In one hour and forty-five minutes, the entire inhabited surface of your planet will be destroyed. You have that long to surrender your hostages."

This could be paraphrased with the following---

"This is the voice of supply and demand. All silver shorting derivatives and institutions issuing them have been identified, targeted, and fed into the price breakout scenario. In one hundred forty five days or less, the entire price suppression conspiracy will be destroyed. You have that long to surrender or flee the country."

This places Silver Doomsday by late June 2003 at the latest. An alternative to flight, which will probably occur, is for the shorts, users, exchange officials and regulators to allege that foreign interests, probably Arabs, removed a (nonexistent) huge supply of silver from London, thereby shifting blame (see "Is The Silver Lie Ready?" in archives). Perhaps part of what CFTC head James Newsome meant when he told the Silver Users Association of his newfound "regulatory innovativeness," includes participation in an invented massive hoax to blame Arabs! Maybe North Korea and China too, after they destroy Taiwan! (Not to paint me with the brush of being in sympathy with terrorists, I don't even have a package of Dromedary dates in my pantry!) The main difference from 1979-1980 is, metal no longer exists! This makes for a real crisis like nothing else. What the alien captors of Kirk, Spock and McCoy told Kirk in "The Empath" is a forecast for many silver users---

"There is an 87% chance Dr. McCoy will die of his injuries, and while Commander Spock's life is not in jeopardy, there is a 91% chance he will suffer brain damage resulting in permanent insanity."

I recently exchanged some 100-ounce bars for smaller units---100's that had small diameter drill holes in the center underside to confirm a lead-free core. (Adulterated bars can also be visually examined at both ends for evidence of machine shop activity! The article can wait while someone goes to check their ingots!) As I thought of those drill holes I thought of financial lobotomy for shorts and users. So stupid also, since it's a problem they inflicted on themselves with over 20 years of price capping, causing the shortage. Since lease silver from foreign central banks and taxpayer owned U.S. stockpiles is all gone or soon will be, it will no longer get shorts and users by the deficit that they have exchange and CFTC officials with wind-up keys protruding from their backs, to cover for their abuses. As Butler noted, "physical always trumps paper," eventually, that is. We are soon arriving at that point of eventuality when the silver deficit overwhelms derivatives. As Mr. Flynt, the 6,000-year-old owner of planet Holberg 917-G told Captain Kirk in "Requiem For Methuselah,"

"The test of power---you had no chance!"

There is no chance naked shorting can substitute for real silver when users have to have it but can't get delivery! Let there be no doubt---silver is soon to explode upwards and be permanently sustained! As Charles Bronson said in "Hard Times" (1975)---

"I got six bucks, and nothing else. You bet it!"

Considered by reviewers to be Charles Bronson's best film, he played the role of a street fighter for bets in New Orleans during the Depression. In his second fight, staged in a Bayou Cajun area, which he decisively won, the opponent's promoter reneged on his obligation to pay up. Brandishing a gun to ward off the winning side's claim, he protested that Bronson's victory was "too damn easy!" Use that perspective as a filter to get out of COMEX paper, as unprincipled losers can't resist changing rules. Later that evening Bronson invaded Mr. Pettibone's nightclub, took away his gun, and beat up some of his patrons. As he advanced on Pettibone to collect the winnings at gunpoint, Pettibone tried to bluff him, "I don't think you want to use it!" Pistol-whipping him to the floor then pointing the gun at Pettibone, Bronson smiled and said,

"That's one way, you want to see another?"

So you could say, investing in physical silver is one way to clobber the users, while investing in unhedged mining shares is another! The main thing is, you really need to be out of their territory---the COMEX, where delivery will be denied you in the nearing defaults and rule changes! And do you really want to be forced to accept a cash settlement in ever depreciating FRN's, when you could instead have had possession of ever-appreciating real silver?

SIGNPOSTS OF SILVER DOOMSDAY!

The clearest signpost is the 13-year deficit and vanishing stockpiles. One fellow I attempted to help by advising him to take a silver position responded with disbelief and loudly replied---

"With the stockpiles they got? THE HUNTS!"

Poor fellow, his information is many years out of date. But belief in phantom silver supplies will persist till Silver Doomsday. He continues to dump money into a sagging mutual fund; apparently believing it's his social duty to get ripped off. As a rabble-rouser told Heath Barkley in an episode of "The Big Valley" 1960's TV western---

"Men are sheep, Barkley, these men are sheep! Going willingly, eagerly to the slaughter, rather than face their own inadequacy and failure!"

Another signpost for Silver Doomsday I suggest could be virtually unchanged lease rates, or with tiny fluctuations. How so? Suppose that all leasable silver has already reached the market. To imply continuing stability, just leave posted lease rates essentially unchanged, and preserve a pretense until the bitter end! A clearer signpost is Butler's report that up to 3 million physical silver ounces, due for delivery by December 27, 2002, was originally deferred by "negotiation" until March 2003, then was delivered 17 days late, 569 contracts, on January 13. That is extraordinary! What happens if the shorts begin a pattern of delays, with COMEX and CFTC officials strong-arming longs to wait? How many delays or postponements can the market tolerate before an uncontrollable event begins? It's like asking, how long can you hold your breath and go without taking in air before you either give up or die! Gone are the days of huge profits from shorting silver, but reflecting on their actions, a line from the best gladiator film of all, "Spartacus" (1960) comes to mind applicable to the COMEX fraudsters---

"Ladies and gentlemen of quality, who appreciate a fine kill!"

Chapman commented that word from Mexico has it that some COMEX characters have been buying silver down there, at higher rates than the artificial COMEX figures, and spiriting it to New York, to extend the date of Silver Doomsday. What if some longs decide to seek injunctive court relief? But the shortage will punish them for playing the COMEX paper leverage game, when they can't get delivery of real silver. The first phase of that eventuality it seems started last December 27. What will follow will be to some extent, a replay of the January 1980 events. Look for items such as the January 22, 1980 CBOT rule change that allowed contract deliveries to be moved to more distant months.

Also look for rule changes such as limits on purchase of silver futures maturing 1 month out; delivery limits; sharp increases in margins, more delayed deliveries, suspended deliveries and forced cash settlements. Lastly, suspension of sales of silver futures contracts. Let's face it, because of the change in silver dynamics added to the fact of long term price abuse made possible by having silver as a traded commodity future, it will be delisted from the exchanges and trade in cash only markets! The rumor dating to 1980 has it that in March of that year, 100 million ounces were due for delivery, but only 17 million ounces were available! As Mr. Spock said in "Star Trek IV,"---

"Nothing unreal exists!"

Your sole guarantee of having title to some silver is to buy real metal before the public panic starts, and there are several fine mining stocks also.

FUNNY PEOPLE & CFTC & COMEX OFFICIALS

Where I work (okay, if you must know---the Postal Service---why do you think I've got a silver parachute?) there's a fellow with a funny reputation. He always wears a grin. One day a reliable acquaintance mentioned to me that this fellow claims (paraphrased) that he's---

"Qualified to carry all manner of weapons through all checkpoints, has full diplomatic immunity in 379 countries, is permitted to conduct wiretaps and surveillance without court orders, he's equipped with the latest counterintelligence devices, is authorized to enter all high security areas of military installations, to reassign radio frequencies, to take over grand jury proceedings and debrief witnesses, to grant pardons to death row inmates and lifers, to overrule court decisions and nullify arrest warrants, to change passwords in government computers at will, to intercept and copy all mail communications, to revoke patents, copyrights and trademarks, to amend treaties and trade agreements, to resurvey and alter state boundaries, to merge counties, to stop and verify contents of armored cars, to enter diamond exchanges and impound goods, to conduct sport hunts in public zoos, to reschedule professional sports events without public notice, to strip-search fashion models, to examine and store medical records and credit histories, to exhume graves, impose quarantines, take blood samples without consent and to intervene in all major surgeries."

Apparently this is supposed to be a joke. It better be or he's in worse trouble than General Custer! Yet, were it not for the actual facts and a residual microscopic trace of modesty, such is the attitude of puffed-up importance conveyed by the likes of CFTC and COMEX officials, and what they've said about silver is at least as phony as the silly utterance above which came from a plump gourmet diner I nicknamed the "portly limburger cheese." A satirical commentary on his prominent nose and cheekbones seems permissible in view of his intense ridiculousness---

Two high hills flanking a great mountain peak!

Together these features form the beak!

How high are the bones, known as the cheek!

It's enough to make you wonder as to the facial features of Newsome, Gorham, Wolkoff and others when Silver Doomsday dawns---if their features aren't garish and ridiculous, they soon will be! The outlandishly absurd joke from the fellow at work has been no joke where COMEX silver has been concerned, the shorts qualified themselves to rig and cap the price for years, to manipulate a worldwide commodity, to impoverish miners and keep workers out of a job, to damage export revenues of many nations, to imperil U.S. national security by devouring the strategic stockpile, and to create the most severe shortage in history. All with the complicity of CFTC regulators! There are some people who must be placed on the hot seat when the silver industrial shortages hit, especially those who've issued denials that there was a problem in the silver market. The letters of Butler and Hommel are useful in this regard. My Congressman, Joe Barton, Republican from the Sixth District of Texas since 1984, who chairs the House Committee on Energy & Commerce, advised me in an e-mail dated September 6, 2002---

"I forwarded your concerns to the Commodity Futures Trading Commission (CFTC). They were unaware of any malpractice in the pricing of silver."

As John Wayne told the bad guy in the bar scene in "Rio Bravo" (1959)---

"We'll remember you said that!"

Barton has received PAC funds from General Electric and Ford (silver users not listed as Silver Users Association members), from Anglo Gold (a bit too much of a hedging history) and from Du Pont---Silver Users Association! No wonder he trusts CFTC when they say no silver price fixing exists. We'll remember you said that, Joe! With others like Wolkoff and Gorham on record stubbornly denying Butler's charges of a short cartel in silver and impending shortages, possibly some form of clemency may be in order when the crisis starts. Philosophically I suggest it be of the variety shown by Panzer tank commander Colonel Hessler in "Battle of the Bulge" (1966)---

"Release the boy. Shoot the father!"

Or a similar perspective could be obtained from the Mexican commandant in an episode of "The Big Valley" 1960's TV western---

"Your trial has been set for two weeks from tomorrow at the district court in Hermosillo. And I thought I might point out that if you receive the death penalty, it will be carried out immediately!"

SILVER DOOMSDAY REPERCUSSIONS

Will be nothing to sneeze at! Members of Congress must be exposed who've taken PAC funds from dubious sources. A Silver Reparations Treaty is a possibility. It would consist of seizing assets owned by those responsible for silver leasing, and funding a proposed return of silver physical metal to central bank repositories all around the world, from where it was stolen with official complicity from populations who supposedly owned it. Inevitably such reparations in metal would cost many times more than the rates at which the metal was looted. Ramifications we must confront include two key problems---first, to counter the inevitable effort of the shorts and users to transfer blame to longs (probably Arabs) and two, efforts to render silver investments profitless or of diminished profitability. Let's speak to this second item.

We know about the COMEX and CBOT rule changes that crushed the silver price in 1980. Their rule changes aren't of much concern this time, as a real shortage now exists and they cannot make rule changes to erase the deficit, nor can they effectively substitute less scarce elements for silver. However, did you know that Mexico suspended trading in silver mining shares on January 24, 1980? And that the next day, Mexico imposed a 40% tax on all silver sold for over U.S. $10 per ounce, and all gold sold for over $264 per ounce? It was an attempt at price capping, and a windfall profits tax. It might be instructive to discover the identity of the then U.S. ambassador to Mexico, to see what sort of domestic connections he might have had! Canadian miners indicated they'd be more cautious about investing in Mexico in the future if sudden penalties on success were imposed. With the collapse of silver prices those regulations went out the window, and in 1992 Mexican mining law reforms included provisions for property ownership by foreign business.

In the U.S., a windfall profits tax might be suggested on silver mining companies (by members of Congress from non silver mining states, of course), attempts to set Federal royalties at punitive levels might take place, proposals of a tax on so-called hoarding of physical silver, and confiscative capital gains taxes might be slapped on gold and silver shares and dividends. Have-nots have always detested the haves, and if they can't join the ranks of the more fortunate, like to see what they have taken away---pure jealousy! The legal defense includes, Internet stocks, once wildly profitable, met with no such measures. Then there's the matter of the embittered users suddenly having to pay very high prices for silver. In retaliation, they would side with the have-not element in wishing to see precious metals investors deprived of their long awaited bonanza. The worst case is, nationalization of mines and confiscation of physical metal. Nationalization cannot take place without making Canada extremely angry, and our relations with the second most important nation in North America are surely of more importance than the so-called rights of the users who are responsible for the shortage. Nevertheless, shorts and users have no compunction about making others suffer for their misdeeds and changing the rules when the game goes against them.

If you thought the sorriest collection of criminals is on some state prison death row, you're wrong---it's our Congress! The hanging judge in the 1968 Eastwood western, "Hang 'Em High" could have been speaking of Congress when he described the riff-raff of Oklahoma Territory to Marshall Jed Cooper--

"Cattle rustlers, horse thieves, bank robbers, hide peelers, marauders who'll kill you for a hatband!"

It seems Congress crafts legislation based on who gives them money, as their main consideration! However, strange things have happened in Congress. For instance, attempts to change the Mining Act of 1872 (very favorable to mining) were defeated on September 29, 1994. You could say the mining companies stood up for their own interests. However, clearly they haven't attempted to use Congress to stop the long-term artificial price capping of silver on the COMEX! I suspect part of that negligence has to do with institutions which function as their primary banks! On this matter, if a bailout of JPMorganChase occurs, the resulting typhoon of inflation will make its contribution towards sending gold and silver still higher!

HAVING THEIR WAY & DAMAGING OTHERS!

The short cartel in silver has had their way with the price, it seems, almost forever. Mining companies have been forced into bankruptcy and out of business, and economies of producing nations have been grossly harmed by way of lost export revenues, royalties, and underemployment at mines. The Journal of Commerce, July 23, 1982, noted that the government of Peru declared a six month state of emergency due to low metals prices forcing mines towards insolvency, and $600 million U.S. was lost due to the low prices. The world was being flooded by paper short derivatives and central bank lease silver!

This emergency was declared after Minpeco, the state run mining concern, announced termination of silver sales due to the engineered low price. In fact, many mines were mothballed due to the price depressive antitrust violations of naked shorts. The most notable closure took place on April 5, 1993, with silver pummeled into the sub $3.75 range, and the Real De Los Angeles mine in Zacatecas province, Mexico, which accounted for up to 15.5% of world output, had to be shuttered due to unprofitability. Over 500 employees were dislocated from jobs, probably causing smirks at the users association HQ in Washington and on the COMEX. The foraging silver hyenas were determined to scour the world of all its silver at give away rates.

That's the real reason President Johnson, on July 23, 1965, with the blessing of Treasury Secretary Douglas Dillon (Rockefeller interests), signed Congressional legislation, Senate bill 2080, which eliminated silver in new dimes and quarters as of 1965, and reduced 90% silver halves to 40% (next that 40% also vanished). The bill passed the House, 255 to 151, as the users association had their way. Claims were made that the 1 billion ounce U.S. stockpile would be eliminated within 3 years unless the silver coinage was halted. Well, we certainly don't want to allow anything to cause the silver price to rise, so production can increase, do we? So instead of continuing to enjoy some sound money, Americans were cheated out of their silver so the users association could be cheaply subsidized! The next legislation on the matter was Senate bill 1352 intended to make Treasury silver available for industrial use and to prevent a price rise.

That cowardly legislation passed in the Senate on June 5, 1967, the House on June 12 and President Johnson signed it into law on June 24. It authorized the Treasury to declare that $200 million in silver certificates, redeemable in silver, were lost, destroyed or held in collections, and to release an equivalent amount of silver for sale (to the industrial users!) The question for the users today is, whom can you incite to dump silver now, to prevent a price rise? Not blithering idiot Uncle Sam, and not the reekingly stupid central bankers, as it seems their lease silver is now nonexistent. Would you care to return that 1.5 to 2 billion ounces to them so they can start another lease program? The wheel you set in motion to crush others long ago, is now about to crush you! Someone else may remember the scene of a man being beaten to death in "Enter The Dragon" (1973) after which the man who ordered it asked, "Are you shocked, Mr. Williams?" To which he replied, "Only at how sloppy your man works!" That beating victim becomes the shorts and users!

THE POWERFUL DERIVATIVES MEDICINE MAN!

Is an individual, possibly wearing a vested, pin-striped suit, mainly inhabiting the financial district of Manhattan, but also populating other cities such as London and Chicago, and he is the much more dangerous successor to the junk bond kingpins, most notable of whom was the disgraced Michael Milken. The derivatives medicine man turns loose spells, enchantments and incantations in various markets, with the intent of controlling those markets to his gain and the severe detriment of others. The spells he sets in motion are crafted as paper devices and with the leverage he has, he controls physical commodity markets, contravening the law of supply and demand---until a crisis is forced, when his derivatives are due to burn up! Most notable is the market for silver, which quoting Butler is "rigged and manipulated almost beyond belief."

These derivatives medicine men, or witch doctors, are viewed as kindly benefactors to society by CFTC officials (whom they probably hand pick!) Phillip M. Johnson, CFTC chairman from 1981-1983, during the time silver leasing started, authored (1999), "Derivatives: A Manager's Guide To The World's Most Powerful Financial Instruments." The derivatives medicine man thinks he's as powerful as the villain of "The Manitou" (1978, Michael Ansara, Tony Curtis)---

"It's Misquimakwas, the greatest medicine man of all. He turned rivers, made storms, mountains rose at his command. No spirit ignored him. No demon denied him. My God! What's even more frightening is what could happen if we don't stop the medicine man. What could happen? Absolute devastation!"

Paraphrasing this we arrive at---

"It's JPMorganChase, the most dangerous derivative kingpins of all. They withered the price of gold, covered for Enron, silver fell at their command. No Senator ignored them. No CFTC regulator denied them. My God! What's even more frightening is what happens when their derivatives collapse. What could happen? Absolute devastation in the markets!"

The arrival of Silver Doomsday will see the derivatives lose all their power to stuff silver into a hole, and gold's rise will accelerate. Silver, however, will steal the show in percentage terms, and most gold bugs will privately wish they'd focused on silver instead. Correlating the supply with the demand, silver may eventually stand in relation to gold as platinum does---a white metal that costs more than gold!

Yes, the platinum supply is tiny compared to silver; however, so is its demand compared to silver! In this regard I had a hard time reading a recent essay in a more prominent forum predicting that in an environment of users being unable to get delivery of silver, the price could rise by more than 20% (twenty percent). Right, a lot more than 20%! I don't know what to say to that, other than that I'm glad I didn't say it, so I don't have to eat crow later. It's like saying, a human fertilized egg could grow by more than 20%! The well-intentioned fellow also said silver could go to $15 by December 2002. From the price as this is written, that's a 212% increase. He also mentioned $42 silver---a 775% increase over the January 2003 close of $4.82. Estimating 20% to 775% moves sounds like trying to cover all bases---there's no need to do that. And the bearish stuff is nearly over.

When silver starts to explode, it will be the steepest sustained price rise in the history of any commodity. That 20% idea sounds like it's coming from an industrial user---continue the bearish talk right to the end! Another "hot report" there as of February 4 expressed the view that copper and aluminum will outperform silver! I sometimes wonder if money has been passed out to get people to make such noises---to soothe their mortification when events develop otherwise. It may simply be that second fellow doesn't understand that the great majority of silver available to the world is now underground; that the amounts are vastly depleted from centuries past; that demand has long since outrun supply; and that this silver is mainly held by non-hedgers! Residing in Hong Kong won't make a stupid view look more sophisticated! It reminds me of the Chicago Daily Tribune, November 3, 1948 headline that declared---"Dewey Defeats Truman!" Dewey was the loser, and the next day the whole country saw the pose of Truman holding up the Tribune copy with a huge grin! With below ground silver resources estimated by USGS at 5.5x those of gold, and over 700 million ounces of silver yearly being lost through consumption, the only way copper and aluminum will outperform silver is in a hallucination.

In pre-Spanish Mexico, the Aztecs had a sporting game, which was played more seriously by the contenders than any game before or since. You see, the losers were executed! It will be with this type of frenzy that silver users, large, medium and small scale, will panic to buy silver, and that includes all silver other than 1,000-ounce COMEX delivery bars---coin silver and sterling included. Add to this the general public joining the panic to grab silver, and that 20% thing could be what we see as just an hourly price increase. The price shockwaves in silver will send the users association reeling. I think of the scene in "The Good, the Bad and the Ugly" (1966, Clint Eastwood) in which the Mexican bandit Tuco is being savagely beaten in a prisoner of war camp in New Mexico by a profusely sweating huge bully soldier at the behest of Sergeant "Angel Eyes" (Lee Van Cleef), after which Angel Eyes asked the bloody pulp,

"How's your digestion now?"

FRANKLAND SEZ, WE ALL GET ONE CORN COB!

For our physical silver! And a gnawed on corn cob at that! Because you see, his Silver Users Association really needs our silver, but bad! However, all they're used to paying for silver is pocket change per ounce. They can't psychologically adjust to paying really higher prices for silver, because they've been used to getting it so cheap for so long! We shouldn't "be cruel to a heart that's true" (Elvis) and hurt their feelings by wanting some free market price for our silver! Better that anyone with silver give it up for next to nothing, and live on crickets and ditch water, than to hurt their feelings! Especially since they self-righteously feel they're entitled to be the only ones to profit from having silver!

I raised the possibility of attempted federal confiscation of silver in the coming wartime scenario. They can say, we have a national emergency and we have to have lots of silver and the mines can't churn it out fast enough so we have to have yours right now! Here's what I think will happen. I think Congress will discuss confiscation. However there are solid legal grounds on which to obstruct that. Enforcement logistics would cost more to implement than allowing a free market price to prevail! I think pressure for confiscation will subside (though prices won't) because as the price escalates there will be many investors ready to cash in their gains. Some will do so to avoid an anticipated price correction.

Congress could move to set aside capital gains tax on silver (gold also) in order to give potential sellers incentive to act. Bush won't try an executive order confiscation because he wants another term, and because, really, confiscating precious metal is like talk of confiscating firearms---there's too much opposition to it! A well-known billionaire reputed to have tens of millions of silver ounces may step in and offer enough silver, along with hordes of smaller holders, to fill emergency demand. We should all contact our representatives on Capitol Hill and demand that the Silver Users Association start leasing silver to the government (ha!)

In forthcoming silver hearings in Congress, it is necessary for silver company executives to explain to the elected freakazoids (with their PAC money from Du Pont, Goldman Sachs, JPMorganChase and others) that what applies to natural gas, lumber, cotton, wheat or any other commodity also applies to silver---the laws of economics; and the more so, since it's a depleted commodity, unlike the renewable agriculturals! Make a commodity profitless to produce through derivatives chicanery, and you engineer a shortage. This is what they did to silver for so long. I advise you to be on the lookout for "Silver Sid," an intense character predicted to appear at Silver Investor shortly after Silver Doomsday arrives. Everyone friendly to silver will appreciate meeting Silver Sid!

Borrowing from past production---leasing---no longer works since the metal no longer exists. (And really, the deficit didn't start around 1990, as the New York Times noted on January 11, 1980, annual production of silver was 150 to 250 million ounces short of demand per annum since World War II, with government stockpiles and "other" silver filling the gap. In the time line of this situation, we are mere minutes away from the end of the users party!) There is no solution in existence to the silver deficit other than, allow the price to rise. Maybe Frankland saw "The Patriot" (Mel Gibson, 2000) and liked the line spoken by a pillaging Redcoat soldier, as the Patriot's house was set ablaze---

"Grab the silver!"

Just think of the selfish users as Redcoats, and remember they lost the war! Or as Arnold Schwarzenegger ("Eraser," 1996) radioed to the weapons dealers he trapped in a limousine stopped on the tracks with a locomotive bearing down on them---"You've just been erased!"

Year 2003 event---Silver Doomsday!

No more silver for users to spirit away!

On the COMEX, a really ugly display!

Shorts and users all wasting away!

A million times bigger robber than Jesse James,

Media covers for them, calls critics names!

They left many a mining company in flames!

Others are at fault, TV news claims!

Shorts and users say they're just not to blame,

They were born ready to play a confidence game!

With derivatives, setting the mining world aflame!

Commodity Stalins with no sense of shame!

Users tell Congress, here's what took place,

Lying through their teeth with a straight face,

They testify that they are a very special case,

Entitled to loot silver from the whole human race!

COMEX, SUA and CFTC say they aren't the guilty ones,

To investigate them, the paid-off Congress shuns,

They claim naked shorts have no smoking guns,

Like a harmless bunch of nuns watching re-runs!

Who caused silver shortage? Someone overseas!

Lies, fables and myths the shorts expertise!

Can they accuse someone named Abdul-Aziz?

Or maybe someone who speaks Cantonese?

Is CFTC just in D.C. to sightsee?

Their economists have a big-head degree,

Treating longs like a political detainee,

Silver blows up; will they use insanity plea?

Users gnawing away at silver for years---termites!

Siphoning off taxpayer-subsidized metal---parasites!

Silver soon to soar to dizzying heights!

As we say, it's time for SUA's last rites!

John Q. Public stands rubbing his eyes,

Slumping to his knees, he weeps and cries,

Hoodwinked by stock analysts and their lies,

He missed the bargain basement as silver flies!

Soon no silver to deliver, just paper checks,

Forever run by users and shorts is the COMEX,

Of hell itself, a veritable financial annex!

Shorting silver till it becomes a Tyrannosaurus Rex!

Longs forced to accept settlement in cash,

Derivatives prompt Fed to print more trash,

What happened on COMEX? A shortside crash!

For real silver, millions make a mad dash!

Users say, show us more silver to lease,

We can't stand to see a price increase,

Let miners starve while our profits are obese!

CFTC & COMEX officials, our secret police!

SUA says let silver go below price of manure,

But no more supplies for them to steal ("procure"),

Their thievery is no longer totally obscure,

Headed for hell, they'll get the grand tour!

For decades, borrowing silver from the past,

Supply almost all gone, it cannot last,

With unserviced demand, the die is cast,

As silver zooms, users are aghast!

Users association sez, they want silver cheap!

When silver soars, their stocks land on trash heap!

Their sins are upon them; they're the black sheep!

Treat them like mad dogs---put them to sleep!

Where is sub $5 silver to be found?

SUA's nightmare, there's no more around!

Higher priced silver waits underground!

Is this so complex as to confound?

Frankland sez, your silver's worth one corn cob,

Users always trying to do a hatchet job!

Try to take our silver, face a lynch mob!

Big vein in users head starts to throb!

Gonna flee to a place with no extradition treaty?

Seen travel agency brochures about Tahiti?

Planning to hire a streetwalker for a sweetie?

Your silver derivatives were garbage graffiti!

Like crucifixion victims lining the Appian Way,

Or a 19th century gallows scene in May,

Many financial fatalities on Silver Doomsday!

What do CFTC and COMEX have to say?

The meanest financial hornets nest of all time,

Unleashed in silver due to naked shorts---slime!

Suits and ties on the COMEX, organized crime!

Did they hear "Mein Kampf" for a nursery rhyme?