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IS THE SILVER LIE READY?
Copyright October 2002 Charles Savoie
If what we have are
facts and truth in the letter by Michael Gorham of the CFTC (July 27,
2002), denying any problem exists in the silver market, and the
rebuttals of Butler by Neal Wolkoff of NYMEX/COMEX, again, with Wolkoff
denying a manipulation exists or has existed, then what the public may
expect to encounter in the times ahead, regarding silver, is normal
activity---no huge leaps in the price to prove a shortage and crisis,
and no derivative meltdown. No rule changes should even be proposed in
silver futures, and no defaults should transpire. No longs should be
denied delivery. I allow for a 1 in 7 billion chance the Butler view is
wrong---like finding the one man on earth who stands 20 feet tall
without stilts! Furthermore, the assertions of Gorham and Wolkoff, who
carried on as if the shorts are a bunch of choir boys, remain posted on
the internet for future reference by a concerned public---by veterans
organizations concerned about national defense (and the role silver
plays in this), by their enlisted military counterparts and their
relatives and friends, and by Congress, where silver hearings will once
again be forced to take place. They will have to give account for what
they said when events prove them wrong. These are buccaneers who can
take a left hand glove and turn it inside out to make it match up with a
right hand, though in a very illegitimate manner---they did that with
words! It makes you wonder how insects could grow so large! We didn't
see them deny we're now in the 13th consecutive year of a deficit, and
for the price to never rise under such conditions defies all laws of
economics! They didn't address the issue that a continuing deficit must
end in shortages! It should be indisputable that Gorham and Wolkoff are
in a position to absolutely know the true state of silver supply and
demand. So, given this position, if a severe silver shortage manifests
in the marketplace soon, with defaults, and many users unable to get
metal, then Gorham and Wolkoff, it must be concluded, were falsifying in
their recorded statements on silver; or they were incompetent, which is
most unlikely. Either way, they would be like the bug that crashed into
your hot automobile radiator, squirming as it dies. They should be
assumed to have a plan to avoid being seen as liars or incompetents.
Blaming junior executives at trading desks won't fly. The manipulation
has gone on for many years and the board of directors of bullion banks
and those they function for are responsible. Butler's request on
September 10, 2002 to Wolkoff for the shorts to prove they have 330 to
350 million physical silver ounces (separate from COMEX) to back their
positions was eminently reasonable. It was a put-up or shut-up
challenge, but it will not be fulfilled! Like the would-be intimidator I
knew at work who tried to psych me with bravado when I challenged him to
arm-wrestle me ("I'm too strong for you, remember that!") When it came
down to locking up with me and doing it, he walked off (or should I say,
he "WOLKOFFED?")
TWO HORNS AND A PITCHFORK TAIL!
So, when the silver hurricane strikes the COMEX, proving there indeed
was a problem in the silver market---a problem of long years
standing---what will Wolkoff and Gorham say? That they had to tell some
lies earlier in the year to stall off their slide into quicksand? My
intuition is at work now---consider what I'm about to suggest. This is
all so appropriate since this is Halloween month---a time for spooks,
ghouls, fairies, vampires, ogres, banshees, specters, goblins, demons,
phantoms, monsters and evil spirits. The bad boys and those they run
with are most likely to use a "derivative" of the Martin Armstrong
story. Remember Armstrong (now a jailbird) of Princeton Economic
Research, who charged that so much silver had been moved from the United
States to London warehouses, that silver was "coming out of the cracks
in the pavement" over there? Also there was something said about so much
silver being moved to London, that there wasn't enough warehouse space
to store it! Why didn't they just end it all by saying Australia was
stacked coast to coast 15 miles high with 1,000 ounce bars? Here's what
I predict the silver shorts will claim has happened when Butler's silver
hurricane strikes (or Savoie's silver supernova)---ARAB FINANCIERS HAVE
BOUGHT ALL THE SILVER IN LONDON AND MOVED IT TO SAUDI ARABIA OR TO IRAN
in retaliation for a U.S. strike on Iraq, which is now viewed as an
attack on Islam! Their claims will be given great credence in the media
because the Hunts had various Saudi allies in the 1979-1980 silver
run-up, and it will additionally be alleged that they selected an
opportunity to retaliate for their exchange caused losses almost 23
years ago! As the TV news story concerning Arab sabotage of the silver
market is aired, will we hear in the background the old radio tune by
Ray Stevens from 1962, "Ahab, the Arab, the sheik of the burning sands?"
This, then, becomes the reason for soaring silver prices---a shortage
caused by another market manipulation by malevolent longs, while the
choirboy naked short derivative vultures are on hand to "explain" the
reason for the crisis to us. (As for these choirboys, they should be
medieval Italian "castrati," you see, so their voices wouldn't change,
or in the present case, to stop them from breeding!) They could say, we
were getting ready to supply proof in response to Butler's demand, that
there indeed was much more than 300 million silver ounces to back the
short sales, but just before we could do it, a consortium of Arab
financiers, being religious zealots and Islamic radicals, swooped down
on London and emptied all the warehouses of silver, and spirited it off
(on flying carpets) to be stored in their palaces and harems. They did
this as part of a financial "jihad" against the United States! They may
also be faulted for the unfolding scandal of fake sterling silver
jewelry being reported by magnet carriers across the country. If you
could see the insides of the shorts brains, it would look like the cover
of a science fiction novel, and the counterfeit disclaimers they are
capable of fabricating call to mind the statements on windshield de-icer
aerosol cans---"Warning! Fatal or causes blindness if swallowed! Cannot
be made nonpoisonous!"
LONG STANDING ARAB RESENTMENT
Arab resentment of the "Christian west" traces back most of 1,000 years
to the Crusades in the Holy Land by European knights. Richard Maybury
speaks of the Thousand Year War at his website. There is truth in this
concept. After the fall of Constantinople (now Istanbul) in 1453, the
Islamic world, and much of the Balkans, was controlled by the Ottoman
Turks until about 1829, when the Greeks overthrew them with assistance
from England, Russia and America. Many Arabs viewed the establishment of
Israel in 1948 with disfavor. The United States naval warship Vincennes
"mistakenly" (?) shot down an Iranian airbus (flight 655) over the
Persian Gulf on July 3, 1988, killing 290, and we as coalition leaders
beat back Saddam Hussein's invasion of Kuwait in 1991. Probably in
retaliation for the airbus incident, a bomb in flight destroyed Pan Am
flight 103 over Lockerbie, Scotland, on December 21, 1988, causing 270
fatalities. In 1998, U.S. embassies in Kenya and Tanzania were bombed,
killing 224. In 2000, the U.S. warship Cole was bombed in Yemen, killing
17 sailors. While Arab states have had deadly feuds among
themselves---the Iran-Iraq war of 1980-1988 had over 1 million
fatalities; they are now developing a common notion that they have a
greater enemy---the "Christian west," called the "great Satan" by Iran.
In this background too we find the Iran-Contra scandal, and billionaire
Saudi arms dealer Adnan Kashoggi. The Salt Lake City Utah, Tribune,
September 15, 2002, noted that U.S. policies might serve to unite
Mideast rivals. Iranian foreign minister Kamal Kharrazi, at the United
Nations on September 14, 2002, voiced concern over a looming U.S. attack
on Iraq. Dawn.com, an Arab site, quoted (September 15, 2002) Ayatollah
Ali Khamenei as saying a U.S. attack on Iraq is a first step towards
U.S. control of the entire region---to capture the oil resources. Word
has circulated regarding Bush's requests to Congress, that Iran could be
his next target! If some of the silver was sent to Iran, "recovering" it
could be added to the list of reasons for attacking that country next!
The unfolding scenario reads like predictions from the nonfiction book,
"The Warmongers" (Howard Katz, Books In Focus, New York, 1979) which
speaks of the "distressing link between the creation of paper money and
major wars" and investigates the "frightening intrigue in which bankers,
big business and governments create wars to increase their power and
wealth" (from rear cover). We are in the hands of personalities who
aren't in a state of grace and need multiple exorcisms!
WITHDRAWING $1 TRILLION IN INVESTMENTS!
The old crusader view is still very hot among Arabs, and along with
support of Israel, we are viewed as conducting an ongoing attack on
these peoples, which is strongly linked to an attack on their religion.
Osama Bin Laden, you recall, is native to Saudi Arabia where he had
business interests, and 15 Saudis were among the terrorist hijackers who
used commercial jets to attack the World Trade Towers and the Pentagon
on September 11, 2001. Before that, other attacks on U.S. interests took
place, including the Khobar Towers truck bombing at Dhahran, Saudi
Arabia, which killed nineteen and injured hundreds. This site, attacked
on June 25, 1996, housed U.S. and allied forces supporting Operation
Southern Watch, the patrols over the no-fly zone in southern Iraq. After
the September 11 attacks, Saudi investors withdrew $27 billion from
foreign banks through year-end 2001 (Dawn, Arab website in English,
March 31, 2002). The U.S. also froze assets and investments of some
Saudis on charges of being connected to the September 11 attacks, and
lawsuits on behalf of twin tower victims are pending. Saudi and Arab
money has been jittery ever since, with regard to being in the U.S., and
reports are circulating of some $200 billion of Saudi money so far
withdrawn from our stock market, with as much as another $800 billion at
risk of being withdrawn. That would add overpowering downward pressure
to the NYSE, where insiders have probably already gotten out to a large
extent and gone short, so they can capture as gains, the forthcoming
shocking losses of all the small investors deceived by years of "buy and
hold, never sell" propaganda as the market may fall 3,000 points or more
from September levels into late November. The Foreign Sovereign
Immunities Act was amended so that victims can now sue foreign countries
that aided or harbored terrorists, and if you're about to be sued, you
will be tempted to place assets out of reach! The Saudis have indicated
disinterest in allowing their territory to be used as a region from
which Mr. Bush attacks Iraq. Is this proposed attack in part to distract
attention from the tumbling stock market? Financial scandals aren't only
recently associated with the Bush camp. Remembers his younger brother,
Neil, was a director of the ill-fated Silverado Savings & Loan, whose
collapse in 1988 cost the public some $1 billion! Silverado was made of
paper, not silver! With the continuing debasement of the dollar, it
makes you wonder if aluminum coins are coming---aluminum quarters,
nickels and dimes! This isn't farfetched, as Paul O' Neill, Treasury
Secretary, came there from the chairmanship of the Mellon family's
Alcoa. Then see how prostitute commentators will still try to make the
public believe silver coins are "sterile assets!"
ARABS BURNED IN HUNT SILVER PLAY!
Ironically, only five days before the COMEX and CBOT rule changes which
destroyed silver longs, the January 16, 1980 issue of Al Riyadh
newspaper, which was later translated in the English language weekly
magazine, Saudi Business, reported that Farouk Akhdar, director of Saudi
industrial development at Jubail, stated his belief of the silver scene
that, "the whole operation was an attempt to defraud the Arabs of their
wealth and return to the industrial economies what we earned by selling
oil." And so it turned out, though the shorts keelhauled the Hunts and
their Arab partners only when they became vulnerable. No one made the
Hunts and Arabs go after silver, it was their decision and they were
crushed because they went head to head with the "old rich," the
establishment rich, who controlled the exchanges and the government
agencies concerned. Akhdar's prophecy about his fellow Arabs, fulfilled
so swiftly after he made it, is uncannily similar to the fate of
millions of small investors in the Nasdaq tech wreck and the telecom
bust, and other stock frauds like Enron. Friends, all these financial
subversions were planned in advance by the old rich to get their
payrolls back! To appease public wrath, certain fall guys were selected,
and lawsuits and settlements may recover $100 billion of as much as $7
trillion looted from the public. What a deal! For every $70 you steal,
you only have to give $1 back, and someone takes the blame for you!
Meantime, rigged lists of what big rich are worth continue to appear in
high profile magazines, downplaying their actual wealth and omitting
from the lists names which belong near the top! And associated with
these names are the 4 or less, and 8 or less largest COMEX silver
shorts, whose identity we strongly suspect, and will eventually be
confirmed! Remember what Franklin Roosevelt did with gold and
silver---well, his relative, Theodore Roosevelt IV, is a Lehman Brothers
executive today---the same Lehman Brothers which supplies "advisors" to
the CFTC! As for JPMorganChase and Citigroup, they are under accusations
for racketeering connected to pension fund losses at Enron ($33 billion
wiped out) and elsewhere. The gold and silver meltdown will hit them
like a tree crushing a lumberjack.
WHO STOLE 2 BILLION OUNCES? THE SHORTS &USERS!
To return to Stephen Fay ("Beyond Greed," 1982) on the Hunt/Arab silver
play, he spoke of Saudi society as "forbidding" and concerning Mahmoud
Fustock, he said he was similar to a "character in an old B movie who is
never quite to be trusted." If we could see Fay, what would he look
like? A wheezing bubble and goo monster from the "Outer Limits," or one
of the demonized, tortured grimacing faces from Rod Serlings "Night
Gallery?" Fay, in his near total whitewash of the shorts, showed his
bias throughout the book. Fustock was the brother in law of and
representative in the silver play of Saudi Crown Prince Abdullah Ibn
Abdul-Aziz Al Saud. After the exchanges ordered liquidation only in
silver, the Arab assets used in the Hunt silver play turned into a
barrel and suspenders as they were stung by a huge wave of margin calls.
Fay said of these highly placed Arabs, "their anger was infinitely
fiercer than had been supposed" (page 268). So the shorts of today can
conjure up the story that, the Arabs never forgot what happened, and
just now retaliated after years of patient planning, by removing a
titanic stockpile of silver from London, to hurt the West! Fay referred
to "Fustock and his angered coconspirators" (page 272). Interesting how
the new rich are always the bad guys, and the establishment old rich are
the good guys. That's the picture you can paint when you dominate the
media. In a lawsuit filed in the aftermath of the silver crash, Fustock
made reference to a scheme to cheat and defraud him and others of
hundreds of millions of dollars. Since then billions have been stolen in
the silver market by shorts and users, with leasing stealing silver from
reserves of many nations especially America, so greedy perpetrators
could get silver for next to nothing! This was NOT the doing of the
Hunts and Arabs---it was another ripoff staged by establishment old
rich! Now that we are about to enter a period of chronic silver
shortages and high prices, the shorts are set to scapegoat the Arabs,
which will be politically acceptable! As one of many examples, consider
the Chuck Norris film "The Hitman" (1991) in which he said, "You camel
jockeys eat this shit?"
OTHER ARABS BURNED WITH THE HUNTS!
Naji Nahas, an Arab investor in Brazil of Lebanese ancestry, and his
cousin, Selim Nassif, were associated with Khalid Bin Mahfouz (oil and
National Commercial Bank of Jeddah, Saudi Arabia) and Gaith Pharoan, of
Redec, which owned construction companies, a stake in Hyatt Hotels, and
Plaza of the Americas in Dallas, were part of the Arab consortium which
joined the Hunt silver play. Pharoan's father was a medical doctor who
attended the Saudi royal family. Also parties in this situation were
Ahmed and Mohammed Kaki, also of the National Commercial Bank of Jeddah.
Additional participants were Sheikh Mohammed Aboud Al Amoudi, Ali Bin
Massalam and Mohammed Salah Affara (representative of Khalid Bin Mahfouz),
who were 50% partners with Nelson and Herbert Hunt in International
Metals Investment Company based in Bermuda. Crown Prince Fahd was
believed, but with perhaps inconclusive evidence, to have been a
participant. There was talk of SAMA (Saudi Arabian Monetary Agency, the
central bank), in which Prince Abdullah could certainly have pulled
strings, using some of its then $60 billion of reserves to buy silver,
for purpose of monetizing silver and using it as a reserve asset. This
didn't happen, however, since the Saudis and some other Arab allies like
Nahas were burned by the shorts controlling the U.S. exchanges, other
Islamic nations have suffered by actions of western financiers. Prime
Minister Mahatir Mohamed named George Soros as the principal villain of
the Malaysian currency crisis during the Asian financial crisis of
1997-1998, and then Secretary of State Madeline Albright verbally
castigated the Prime Minister for speaking ill of Soros! Maybe we'll
hear that some of the (phantom) London and Swiss silver stockpiles ended
up in Malaysia. As currencies are set to fall and silver to rise, Soros
is ready with a big interest in an important silver company!
RECOGNITION OF PRECIOUS METALS AS REAL MONEY!
Mahatir Mohamed is now an advocate of a bi-metallic based (gold and
silver) currency and trading system to be used in Islamic nations
representing some 1 billion Muslims. Apart from Malaysia, other formal
members include Libya, Morocco, Iran and Bahrain. See what the shorts
can say? Those evil Arabs took all the silver out of London to hurt
western industry and use in their awful bimetallic system to return
to---(AARGH) real money! Bush named Iran as part of the "Axis of Evil"
with China and North Korea, so when we attack Iraq, the Chinese Reds
will likely destroy the Taiwanese defense forces! And Libya has been
known as a terrorist state for many years. So, why not blame Arabs for
missing silver---which wasn't there to start with because it was
absorbed into the deficit---they make the ideal scapegoats! The Arabs
even have an Islamic Mint and e-gold.com, with some 300,000 clients
already (see gulfbusiness.com news, "Banking on Bullion," September 2002
by Ayman Dunseath). The proposed system uses gold dinars and silver "dirhams."
Do I think some Arabs have been accumulating silver as well as
gold---certainly! However, since the Hunt silver hearings in Congress, a
reluctance has existed on the part of silver longs-no matter how great
their financial resources---to take positions in silver as large as any
one of them could have taken. Bill Gates owns something like 15% of a
major silver company, George Soros owns about 27% of one of its peers,
and Buffett bought close to 130 million ounces of physical, though it
appears he didn't take delivery of all of it, and may have leased the
rest out. The point is, large scale investors, including the Saudis and
their allies, with bitter experiences on the COMEX and CBOT, are
hesitant to buy as much silver and silver equities as they could, due to
the hostile media publicity they would likely encounter when the
sustained silver run up takes place.
AMERICA & BRITAIN VERSUS ISLAM!
Saudi Arabia has stated it will not consent to having U.S. forces use
its territory as a base from which to launch an attack on Iraq, but that
if the United Nations decides to pursue military action against Iraq,
they may do so with use of Saudi territory as a base. Understand, by
saying this, the Saudis are expert fence-straddlers---they appear
uncooperative to President Bush, yet cooperative to the global
community. Except, the Saudis realize, the required consensus is not
presently available within the U.N. for a near term strike on Iraq. The
Saudis expect no U.N. sanctioned war against Iraq, and appear to be
pressuring the U.S. in various ways to not attack Iraq. British
Broadcasting Corporation News, September 10, 2002, reported a Saudi
Trade Fair is scheduled to be held in Baghdad during November 1 through
11, this year. Up to 70 Saudi firms are expected to be on hand,
including The Olayan Group. Olayan Group is headed by Suliman Olayan,
Saudi billionaire with establishment credentials in America
including---member advisory council to JP Morgan & Company, 1979-1990;
director, Credit Suisse First Boston (Mellon interests) 1988-1995;
member Rockefeller University council since 1978; and member, U.S./Saudi
Arabian Joint Commission on Economic Cooperation, 1980-1992.
Interestingly, former Treasury Secretary William Simon, who as a COMEX
governor took part in the rule change, which destroyed the Hunts and
their Arab allies, was deputy chairman of Olayan Investments, 1980-1982.
Simon was also a director of the Gerald R. Ford Foundation, and as we
saw in the September essay hosted here, Ford appointed William Bagley to
head the CFTC. Simon was also a member of the public review board of the
now totally disgraced accountant of Enron, Arthur Andersen & Company.
Simon was a Halliburton director, and our Vice President Mr. Cheney was
a Halliburton executive. It has been widely rumored that the U.S. and
Britain wish to strike Iraq to get at the oil resources there, and of
course, Halliburton is an oilfield service company, and would clean up!
LONG ESTABLISHED RICH CAUSING PROBLEMS!
Now you say, if Arabs were partners with the Hunts, what is an Arab
doing associated with interests linked to silver shorts? This is a case
of both sides of the street being worked. You see, while the Kingdom of
Saudi Arabia truly doesn't want to see the U.S. strike Iraq, our main
ally, Great Britain, does want Iraq under fire. In 1987 Olayan was made
a Knight of the British Empire, bestowed upon influential persons
regardless of ancestry, whom Britain perceives as helping to advance its
interests. It is time to realize an astonishing fact, friends---the show
is being run by British interests (even though Bush makes most of the
noise), while America supplies most of the military might! We the
stronger nation militarily, are nonetheless the junior partners in what
is called globalization! Various researchers have perceived the Federal
Reserve to be the understudy of the Bank of England, and JP Morgan &
Company was founded by British interests to influence American finance
and industry. In the unlikely event I am called to Congress to speak at
silver hearings I'm going to spill my guts about this Anglo-American
network and they damn sure don't want anything revealed about it since
they cannot function without secrecy! I will ask which of Gorham and
Wolkoff's associates are members, and if they too are members. Sir Ivor
Seward Richard, British ambassador to the U.N., couldn't get away from
me fast enough when he saw me coming his way with a tape recorder at a
reception in 1979. His maternal grandfather was the same Seward in
Lincoln's cabinet who made the Alaska Purchase from Russia. Herein lies
the source of the world's problems---a bunch of intermarried old rich
absorbing the world's wealth! There is something they shrink away from
like a vampire from a crucifix, and that is publicity. Pull everyone's
pants down, reveal all the skeletons in the closet! Descendants of those
who sucked the wealth out of the British Empire for centuries and the
old North American "robber barons" are the source of our problems today.
You see their representatives on the boards of the now doomed bullion
banks---the hyperleveraged derivatives are about to implode. Greenspan
is just back from Britain where on September 26 Queen Elizabeth II made
him a Knight of the British Empire. Greenspan made remarks about British
predecessors "who set up the financial structures we deal with every
day." Olayan founded the Saudi-British Bank at Riyadh in 1977 and headed
it until 1989. Olayan, associated with U.S. interests behind President
Bush, and with British interests---both of which favor war on Iraq---is
going to be in Baghdad in November! He can't want to see bombs falling
on Baghdad while he's there, even though he's associated with the same
interests behind Bush!
PHANTOM LONDON SILVER: AMONG 1 BILLION MUSLIMS!
The inner workings of the Saudi Arabian establishment are more complex
than surface appearances indicate, and it isn't necessary to this essay
to figure it all out. Olayan pertains to the class of Saudis referred to
by Fay as the "Rockefeller" group. The other faction Fay spoke of was
the "Maharajah" class---Saudi royalty and princes, the element who went
into silver with the Hunts and lost big. Newsweek, October 1, 2001, page
34, said the Saudis support terrorism, and Time, October 15,2001, noted
Saudi links to Osama Bin Laden (he was a Saudi national, and wealthy,
with a fortune of around $300 million). National Review, May 20, 2002,
said the Saudis must choose either the U.S. or terrorism. My
prediction---while the Saudis love money, their religion and their roots
matter more, and they are willing to trade with the rest of the world
exclusive of the U.S. if necessary. They will side with other Islamic
nations, including Iraq. U.S./British pressure is driving Arabs
together. A coalition will become more obvious, and the silver shorts
will say, that 770 million ounce silver stockpile (or other large, but
contrived figure) removed from London by Arabs, is now being circulated
as 1-ounce dirhams (coins) among 1 billion Muslims!
HOW THE MYTHICAL PLOT COULD BE ACHIEVED
Understand, when the silver crisis becomes visible to the public in the
form of shortages and elevated prices, Gorham and Wolkoff and their
allies will have to deliver an explanation as to why a market emergency
is happening, yet without them having lied about anything previously,
and without the shorts being to blame. A scapegoat is necessary. If Arab
terrorist fanatics, including 15 Saudis, were so crazy as to destroy the
World Trade towers in Manhattan, the public can easily be made to
believe that Arab financiers made off with a huge hoard of silver in
order to strike at the West by throwing our markets into chaos at the
same time they were withdrawing most of $1 TRILLION in other investments
from America! Iran has often called America the "great Satan," so it
could be made to appear that the silver was spirited off to Iran, and
some to Saudi Arabia and other Islamic nations. After all, we do know
that these nations are keenly interested in returning to gold and silver
as means of exchange to settle transactions. It will all be so
believable. In reality, this will be the ruse to cover all the silver,
which vanished into the deficit caused by the shorts with stubborn
maintenance of a disease-ridden low price for over 20 years! The Arabs
indeed have some silver, but it is not to be compared with the silver
volume, which vanished into the black hole of the deficit for 13 years
running. Some other story may be concocted, but this mythical framework
of blaming the Arabs for the silver crisis, appears to be the most
believable scheme possible. With whatever silver is left in London, New
York and elsewhere, far less than what Wolkoff and Gorham would have us
believe, a run on remaining supplies is inevitable. Will silver
investors in America and Canada be accused of "being in sympathy with
terrorists," for holding on to their metal while prices are flying,
refusing to sell? Our opponents all have summa cum laude status in
underhandedness. If Newsome resigns under fire from the CFTC, Bush could
appoint another cattleman to head the agency. Is there a foreman at
Bush's Crawford, Texas ranch named Lariat Strayhorn?
MECHANICS OF ACHIEVING THE LIE
Blaming radical Islamic financiers is the best way to divert blame from
naked shorts when the silver crisis becomes visible to the
public---blaming Leprechauns, space aliens, 96-year-old ex-Nazis in
Brazil and Argentina, Elvis impersonators or renegade Catholic priests
won't work. Blame must be assigned to elements with a lot of clout.
(Another theory about the "missing" silver that wouldn't do the trick
for them---it all turned into Mercury dimes, and flew away, you see,
with the wings on the side of the head!) Let's attempt to construct a
hypothetical framework. Let's say Arabs conspired to corrupt caretakers
of the London silver warehouses with their (mythical) 770 million
ounces. Let's say these Arabs, some Saudis, some Iranians, and possibly
others from Qatar and United Arab Emirates, put some people in place to
be "Nick Leesons" of those silver warehouses. They will say London
Bullion Merchants Association officials were lied to. Nick Leeson you
recall was the renegade trader in Singapore who placed bad bets on the
Japanese stock market and broke the old Barings Bank of Britain in 1995.
Suppose that, starting in July 2002, 1,000 ounce silver bars began to be
clandestinely removed from the warehouses, not through tunnels, but
through a back door scenario, and that these bars were loaded into the
bellies of oil supertankers destined for Saudi Arabia and Iran, or
destined for port in Nigeria, where the largest oil refinery in Africa
is located, from which point the cargo was trans-shipped and sent on to
the middle east. Suppose that stacks of 1,000 ounce silver bars just two
deep, but ten feet high, were left as an outer perimeter in the storage
vaults of these London warehouses, leaving the constant impression that
the entire hoard of silver remained in place the entire time. Then at
the last moment the remaining bullion ingots, acting as a pretense to
imply that all the other precious metal was still behind them, was
removed, rushed to aircraft or sea going vessels, and sent to the Middle
East. Then the following morning it was "discovered" that some 77,000 of
the 1,000 ounce bars are suddenly GONE, and instantly, the West is
thrown into a silver crisis. These Nick Leeson types could be
compensated for their deceptive actions with emoluments to relatives. A
similar story may emanate from Switzerland, with intentions of allowing
banks a hoped for escape hatch regarding their alleged 1 billion ounce
unbacked silver certificate exposure. Maybe all the Swiss silver was
spirited out of the country through "secret Nazi tunnels!" Mahmoud
Fustock alleged in his lawsuit that silver was supposed to have been
deposited in his account at Swiss Bank Corporation, but instead was
deposited to accounts of defendants, and also named Banque Populaire
Suisse as a defendant.
CALL THE SAINT---SIMON TEMPLAR!
Imagine that, staging a fictitious robbery then blaming it on scapegoats
because your back is against the wall and if you cannot assign blame to
someone else, you've had it! Since this fictional crime will take place
in London, will someone be so kind as to call Simon Templar to
investigate it? Or Jim Phelps and his Mission Impossible Team! Will we
see re-runs of Johnny Carson in green silk turban as "Karnak" the mind
reader, saying, "May the fleas of 1,000 camels infest your armpits?"
Senator Hillary Clinton from New York could take the lead in
investigating the "Arab silver swindle," and is she ready to "Melamed"
her way through the investigation? (See her association with Melamed,
who knows Michael Gorham of the CFTC, in September essay here.) In
reference to the CFTC essay, my Congressman Joe Barton told me the CFTC
sees nothing amiss in the silver market, and concerning my request to
discover members of its advisory boards over the years, "they will
investigate your claims." Barton cannot have become a Congressman by
being stupid---he just thinks we are. It is appalling to realize we have
so many members of Congress eager to cover for abusive interests. You
cannot let an agency investigate itself! Writing to public officials
like Barton becomes progressively more discouraging, like radiation
poisoning. His PAC contributions are linked to the network I alluded to.
Concerning the nearing silver crisis and who is to blame---I suggest the
Jewelers Vigilance Committee and the Jewelers Board of Trade evaluate
the silver shorts and the Arabs, then see which appears the more likely
culprit! The attitude of this financial wolf pack reminds me of the bad
man in "Arrowhead" (1953) who, when asked where a certain person was,
replied, "Probably still at the bottom of the creek where I left him!"
This is what they've done to millions of investors, which is like
tricking them into slaving for minimum wage---which is what some have
left after the stock busts. Perhaps they call little people their
"payroll recoverees." With the crash in real estate and housing due
soon, and rising unemployment, look for a monumental transfer of home
ownership from the middle class to the interests who looted them in
stocks, as the words of Jefferson, "Banking establishments are more
dangerous than standing armies" ring out across the centuries.
EXPERT SOURCE---SILVER SUPERNOVA BY YEAR END 2002!
This is my hypothesis---silver shorts are to blame for the silver
crisis, but will allege Arabs to be the guilty parties. As with the
London silver warehouse-reporting requirements (lack of them),
transparency is impossible. But with facts that are known, the shorts
fit the description of guilty parties far better than the Arabs. The
next thing will be India's refusal to dump thousands of tons of
silver-at any price-to relieve western industry. Therefore, it will be
"discovered" that certain wealthy Indians were parties to the
"conspiracy" to loot the mythical London silver stockpile! Noises may be
heard about leading unhedged silver miners having Arab shareholders, or
stockholders fronting for Arabs! Since Russia has intentions of
developing industrial projects with the Iraqis, and could be a source of
nuclear material for Iraq, Russia may be added to the list of the
accused, especially since they've been increasing their gold reserves. I
am of the view that silver will break its derivative chains before
year-end 2002. I believe also that the proposed war on Iraq is intended
to serve more purposes than those offered for mass consumption, and that
diverting blame for the silver shortage is among them. The New York
Times, September 26, reported the U.S. and Britain are drafting a U.N.
resolution giving Saddam Hussein of Iraq two (2) months to comply with
inspection demands. Not coincidentally, this is probably how much time
remains before silver prices become uncontrollable and can no longer be
squashed by derivative curses! Millennium Bullion Fund, a company
similar to Central Fund of Canada, says on one of its web pages--- "With
silver, a situation is rapidly developing in which above ground stocks
will be completely depleted in 2002." They additionally state their
belief that world central bank silver holdings no longer exist! I
believe, without inside information, or full objective proof, that the
shorts are fully responsible for the crisis but will attempt to blame
others. We do know the Silver Users Association has lobbied the price
low for years, and this has eliminated our critically important
strategic stockpile. It is indeed impossible to have a commodity in
deficit for 13 years without the price rising---unless a manipulation is
active! We shall shortly see whether this conjecture is correct as
silver---without leasing and derivatives---enters a bidding economy, and
someone has to offer an explanation for shortages and high prices! It
has to be an explanation that will get them off the hot seat! By placing
my conclusions into essay form, I am, before the fact, attempting to
anticipate their actions. If I am correct, this may serve to destabilize
them. As Charles Bronson said in "The Evil That Men Do" (1985), "I'm
gonna rattle his cage---then when he sticks his neck out, I'll nail
him!" The satirist writes---
Silver shortages near; watch the moving minute hand,
Dead ahead, the shorts Custer's last stand!
The media prostitute lying for them is their hired hand,
Getting set to blame Arabs is probably what they've planned!
Lies making Americans think with their glands,
Shorts claiming all that silver changed hands,
Blaming sheikhs riding camels across burning sands,
Innocent shorts suffering; guilty Arabs making demands!
Two horns and a pitchfork tail!
Blame others so we can avoid jail!
Arabs grabbed the silver we'll wail,
The phantom London silver, a holy grail!
Commentators editorializing on CNBC,
Silver was so cheap it was almost free!
Still lying for us on bended knee,
Silver price chart, high as a redwood tree!
On flying carpets, Arabs came in the dead of night,
Emptying London of 770 million ounces and taking flight,
On magic carpets, leaving America in desperate plight,
To whatever disclaimer we use, the press says we're right!
Congressman Barton sez the CFTC can be trusted,
CFTC's Gorham sez Butler's views are all rusted,
But someone's betting on lower prices will get busted,
For higher silver prices, they best get adjusted!
Big time, we were going to make Butler lose face,
By showing him, 770 million silver ounces in place,
But Arabs came and took it away, leaving no trace,
And sent the price of silver into outer space!
Now to Butler and his followers we sternly say,
That colossal silver stockpile is in Arab hands today,
Make us show it to you, there's just no way,
Believe us, like snow in the Arabian Desert in May!
Wolkoff and Gorham tell Butler, play hide-and-seek,
Who took the silver? Some Arab sheikh!
Will this be their desperation evasion technique?
Shorts are blameless & Carlsbad Caverns is in Mozambique!
Arabs caused the silver crisis is what we'll hear in the news,
There was lots of silver available, will be the editorial views,
The shorts will have a party with streetwalkers and booze!
Regiments of dissemblers, the shorts have cutthroat crews!
Diverting blame to others is the manipulators orgasm,
His head is full of printed circuits, not protoplasm,
Let him read this, he'll have a weird spasm,
Hopefully he's near the edge of a chasm!
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