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LBJGWB SILVER
Copyright March 2006 Charles Savoie
 

“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance”---President James Madison, 1809-1817

“If persons be not motivated by moral principles, it is in vain to look for public virtue”--- President Madison, traditionally regarded as the Father of the United States Constitution, (whose nephew James M. Rose was killed by invading Mexican forces at the Alamo in Texas in 1836)---

“Saving silver coins is an amusing way of exerting one’s independence of Big Brother, who officially frowns on such caprices.”---William Rickenbacker in “Death of the Dollar” (Arlington House, New Rochelle, New York, 1968, page 171).

“Lawrence Heim, publisher of the Heim Investment Letter in Portland, Oregon, argues that “too much money has been created, and this money will soon be looking for a safe haven.”  One billionaire could buy all the silver held in Comex and London Metal Exchange warehouses, he contends, which “is an explosive situation.”  He now says he doesn’t know WHAT EVENT WILL TOUCH OFF THE PRICE EXPLOSION---A GULF WAR, THE BANKING CRISIS OR SOMETHING ELSE---BUT HE SEES SILVER “IN THE NEXT FEW DAYS OR WEEKS DOUBLING, TRIPLING OR QUADRUPLING ALMOST OVERNIGHT.”  (Wall Street Journal, January 14, 1991, page C-14)

“Any bank which is not prepared to make the necessary sacrifices for resuming and sustaining specie payments, OUGHT AT ONCE TO TAKE MEASURES FOR GRADUALLY WINDING UP ITS CONCERNS.  The fault is not that we have too little specie, but that WE HAVE TOO MUCH PAPER.”---The United States Magazine & Democratic Review, New York, June 1838, pages 213 and 217

“Silver Users Say Market’s Fundamentals Don’t Portend Sharp Increase in Prices”---Wall Street Journal feature title, January 30, 1978, page 22

“Chicago Board of Trade, Comex Officials Question Increases in the Price of Silver”---story title, Wall Street Journal, October 19, 1979, page 38

No, I’m not the Mogambo Guru.  But the title “LBJGWB SILVER” is a take-off on his style (clever expressions of outrage).  Lyndon Baines Johnson (President 1963-1969) and George W. Bush, current President, are both leaders who, looking back, will have said of them, that they had to confront silver metallic issues.  LBJ did a Lousy Bum Job of it, and GWB (Going Wild Bigtime) will have to face it too.  STOP!!  Before going on, PLEASE read “Severe Oversupply Of Liars” here in Archives, put out in August 2003, featuring 217 documented references from many authoritative sources PROVING the long-standing nature of the world silver shortage (deficit).  I add this note as a supplement to the Gary North debate with Franklin Sanders over gold versus silver.  I have never “followed” Dr. North as I have never considered myself a follower of anyone else, but after reading “Severe Oversupply Of Liars,” and some of Butler’s impending silver price performance discussions, Mister North may no longer be thought of as “Dr. North.”  Especially, when the price action confirmation pulls his pants down around his ankles.  So, mark down what I have said!  Silver has been beaten up, price-wise, forever, but not by absence of fundamentals as the (to-be EX) Dr. North believes, but by incessant manipulation.  I have hammered relentlessly on this theme for close to 5 years, frequently supplying MANY DOCUMENTED PROOFS FROM NUMEROUS SOURCES (INCLUDING CONGRESSIONAL)!

I am certain Gary North does not comprehend the silver supply problem nearly as well as the Silver Users Association does!  Additionally, there are dozens of silver company executives and directors, extremely sharp operators who, while few of them have issued public commentary, understand the silver situation, and have acted accordingly to build their corporate asset base before the most notable price change in history occurs.  Have all these fellows, professional geologists, mining engineers and businessmen, only been wasting their time?  Doctor North, why did you not provide commentary in the early 1990’s directed at these silver mining entrepreneurs that would have “saved” them from allegedly fruitless pursuit?  Many of them are already multimillionaires!

Let’s move on now, with LBJGWB Silver!  Considering Bush’s connections, I have a hard time visualizing him doing anything similar to what Andrew Jackson would have done---that is, to reaffirm that gold and silver are THE lawful money of the United States!  I think Andy Jackson “Old Hickory” would have felt more at home had his image been stamped on silver dimes starting in 1946, rather than on the awful $20 Federal Reserve Notes!  Here’s Lousy Bum Job on the right, posing in 1937 with silver and gold bad boy Franklin Delano Roosevelt and Texas Governor Allred---

LBJ was a politician who was “going somewhere!”  If you will click to www.mackwhite.com scroll down a bit looking on left side, click on “The LBJ Robot.”  Take a few minutes to read some items on Lousy Bum Job that will truly appall your sense of integrity.  There is a photo of a berserk Johnson cursing a heckler, with Kennedy attempting to restrain LBJ, which is priceless!  Why would a President who conducted meetings sitting on a toilet seat, and who tortured dogs and donkeys to death, have scruples about ending silver coinage?  Most of us know that LBJ finished Kennedy’s term starting on November 22, 1963, after Kennedy’s head was blasted open in Dallas---

The JFK Assassination Timeline Chart appears at www.ciajfk.com/jfktimeline.html and is VERY interesting!

Swearing Johnson in was Federal District Judge Sara T. Hughes, who was a member of the U.S. National Commission for UNESCO (United Nations Educational, Scientific & Cultural Organization).  In other words, a “one-worlder.”  In fact such types populated the Johnson administration.  Hubert H. Humphrey, Johnson’s VP 1965-1969; his Commerce Secretary, Alexander Trowbridge (1967-1968) and many other Cabinet members, Ambassadors and agency heads, were CFR (Council on Foreign Relations) members.  Others including Johnson himself were Pilgrims Society members like Secretary of Commerce John T. Connor, later head of Allied Chemical, director of General Motors, Chase Manhattan Bank, Schroder’s Bank, American Broadcasting, Warner-Lambert and others (also member Joint Commission on the Coinage that did hatchet jobs on silver and silver holders)---

One of Connor’s Pilgrims Society brothers who stood to profit from the new clad coinage issues was John Merrill Olin, head of Olin-Mathieson Corporation, that had initial contracts to supply the Mint with 40 million pounds of cupronickel (New York Times, June 5, 1965, page 14). Johnson had various Rhodes Scholars such as Dean Rusk (Pilgrims) as Secretary of State and Nick Katzenbach at Justice Department, in addition to outgoing undersecretary of the Treasury Robert Roosa, who landed at Brown Brothers, Harriman at 59 Wall Street; they put Roosa (Pilgrims) on boards such as Anaconda; Prudential; Texaco; American Express and CFR.  After Olin’s death, Pilgrims member William Simon became president of the John M. Olin Foundation (Simon was the ex-Treasury Secretary who as a Comex governor was party to the ruination of the Hunts in January 1980).  Johnson was known for what we could discreetly term “oddball habits” in the image linked below, he almost appears ready to kiss Pilgrims member Glenn T. Seaborg, chairman of the Atomic Energy Commission, on the cheek---

http://imglib.lbl.gov/ImgLib/COLLECTIONS/BERKELEY-LAB/index/96B05401.html

Here’s LBJ on the right visiting with Pilgrims member Nelson Rockefeller, heir to the biggest oil fortune in history, whose uncle Senator Aldrich (Pilgrims) helped found the Federal Reserve System.  Realize that LBJ’s ending the silver coinage program benefited the Federal Reserve interests; Nelson’s brother David became a Fed Bank of New York director, and David sent Trilateralite Paul Volcker, an underling, to become Fed chairman---

While Nelson still had Presidential ambitions, Charles Ray Ritcheson was chairman of Texas Scholars for Rockefeller (1968), became a trustee of the Anthony Eden Fund (Pilgrims London) in 1975-1977, and assumed the chairmanship of the British Institute in the U.S. in 1979 and admitted to being a member of “Pilgrims (N.Y.C.)” and on the executive committee of Anglo-American Associates (Who’s Who, 1981, pages 2782-2783).  The financial powers here work with those in London, just as they have since Colonial times!  This is an abscess that has never been drained!  Henry Luce III of the Time-Warner fortune, most recent ex-president of The Pilgrims U.S., passed away last September www.hluce.org/henryLuceIII.html Follow the URL because The Pilgrims are mentioned there.  If enough people seek answers, the bankers’ keystone organization may be pressured to release membership lists.  At that point, the paper money mob will be in the blinding light of day where they don’t want to be.

LBJ delivered a Presidential message to the Committee on Banking and Currency of the 89th Congress (House of Representatives document #199) on the subject of silver coinage.  This is dated June 3, 1965 (verbatim, emphasis added)---

“From the early days of our independence the United States has used a system of coinage fully equal in quantity and quality to all the tasks imposed upon it by the Nation’s commerce.  WE ARE TODAY USING ONE OF THE FEW EXISTING SILVER COINAGES IN THE WORLD.  Our coins, in fact, are little changed from those first established by the Mint Act of 1792.  For 173 years, we have maintained a system of abundant coins that with the exception of pennies and nickels is nearly pure silver.  The long tradition of our silver coinage is one of the many marks of the extraordinary stability of our political and economic system.  Continuity, however, is not the only characteristic of a great nation’s coinage.  We should not hesitate to change our coinage to meet new and growing needs.  I am, therefore, proposing certain changes in our coinage system---changes dictated by need---which will help Americans to carry out their daily transactions in the most efficient way possible.”

THERE HAS BEEN FOR SOME YEARS A WORLDWIDE SHORTAGE OF SILVER.  THE UNITED STATES IS NOT EXEMPT FROM THAT SHORTAGE---AND WE WILL NOT BE EXEMPT AS IT WORSENS.  Silver is becoming too scarce for continued large-scale use in coins.  To maintain our high silver coinage in the face of this stark reality would only invite a chronic and growing scarcity of coins.  We expect to use more than 300 million troy ounces---over 10,000 tons---of silver for our coinage this year.  THAT IS FAR MORE THAN TOTAL NEW PRODUCTION OF SILVER EXPECTED IN THE ENTIRE FREE WORLD THIS YEAR.  Although we have a large stock of silver on hand we cannot continue indefinitely to make coins of a high silver content---in the required quantity---in the face of such an imbalance in the production of silver and the demand for it.”

Silver deficits have existed since long before the late 1980’s; in fact, since at least 1951!  Come on Gary North, “go South!” (Whatever that could mean).  It is only by dumping demonetized coin and hoards of bullion held by many governments (leasing) that the price has remained suppressed for two generations distant from the mid-1960’s.  LBJ was claiming there wasn’t enough silver to keep these as circulating money.  Nonsense!  While certainly there was far less silver still to be mined than in years past, the silver solution was simply to start by “doubling the ascribed value” of all 90% silver coin!  In fact, this was proposed.  The paper money mob was desperate to hold silver down by abolishing it as money.  They did so, and fed most of the silver coins to the silver users, who acted as their hungry school of piranha!  Many of us are harboring rescued coins! 

“We must take steps to maintain an adequate supply of coins, or face chaos in the myriad transactions of our daily life---from using pay telephones to parking in a metered zone to providing our children with money for lunch at school.  The legislation I am sending to the Congress with this message will insure a stable and dignified coinage, fully adequate in quantity and in its specially designed technical characteristics to the needs of our 20th century life.  It can be maintained indefinitely, however much the demand for coin may grow.  Much as we all would prefer to retain the silver coins now in use, there is no practical alternative to a new coinage based on materials in adequate supply.”

Not everyone wanted to keep silver in circulation---not the Silver Users Association; not the Federal Reserve nor the Treasury nor the bought-off Senators and Congressmen.  It is a tricky proposition to speculate what course matters would have taken in the last 40 years, had we retained silver coins.  However, the best guess is that we could have proceeded along the same guidelines as today proposed for Mexico by Salinas-Price 

“I propose no change in either the penny or the nickel.  The new dime and the quarter---while remaining the same size and design as the present dime and quarter---will be composite coins.  They will have faces of the same copper-nickel alloy used in our present 5-cent piece, bonded to a core of pure copper.  The new dime and quarter will, therefore, outwardly resemble the nickel, except in size and design, but with the further distinction that their copper core will give them a copper edge.  This type of coin was selected because, alone among practical alternatives, it can be used together with our existing silver coins in the millions of coin-operated devices that Americans now depend upon heavily for many kinds of food and other goods.”

How opportune that Du Pont, Silver Users Association member, helped develop the cupronickel coins!  (New York Times, June 5, 1965, page 14).  Bill Moyers, who worked for the Johnsons at their Austin radio station in the mid-1940’s, received the Du Pont Silver Baton award from the Columbia University School of Journalism in 1979, 1986 and 1988.  Moyers was assistant to Senator Johnson in 1960 and Johnson’s Press Secretary, 1965-1967.  Moyers authored (1988) “The Secret Government,” you can see an 11 minute video at http://fpiarticle.blogspot.com/2005/12/bill-moyers-secret-government.html   Moyers was with CBS, 1976-1986 and has been editor of Public Affairs TV since 1986, where his wife Judith is executive producer since 1987.  She also received the Du Pont award in 1999 and was U.S. National Commissioner for UNESCO, 1977-1980.  She is currently a director of Public Agenda Foundation, where use of silver as money is probably not on their agenda. www.publicagenda.org/aboutpa/aboutpa_whoswho.cfm is their site and you see that it was co-founded by Cyrus Vance, Secretary of State 1977-1980 who helped give away the Panama Canal.  Vance chaired the Rockefeller Foundation, the Federal Reserve Bank of New York and the Japan Society.  CFR director Vance was an IBM director.  The site doesn’t mention his membership in The Pilgrims nor the fact that his father in law John Sloane was a member.  Financier Sloane held large trust and insurance interests, controlled Grand Juries in New York for many years and was a director of Gorham Silversmiths, Silver Users Association members.  Another Public Agenda director is Richard Danzig, former Secretary of the Navy and another Rhodes Scholar.  Reading more from Lousy Bum Job---

“Our new half dollar will be nearly indistinguishable in appearance from the present half dollar.  It will continue to be made of silver and copper, but the silver content will be reduced from 90 to 40 percent.  It will be faced with an alloy of 80 percent silver and 20 percent copper, bonded to a core of 21 percent silver and 79 percent copper.  The new half dollar will continue to be minted with the image of President Kennedy.  Its size will be unchanged.”

These 40-percent Kennedys were a compromise between the then still politically active mining interests and the fiat money forces.  These coins are not a good selection for silver investments because they yield less pure silver from refining than the nineties.  Having so stated, be aware that 90% coins are just as good as emergency currency as triple nine rounds, some of which (very few) might need assaying.  If sold to industry, the 999 gets the advantage because it is industrially pure as to silver characteristics.

“The silver dollar---no change in this famous old coin, or plans for additional production, are proposed at this time.  It is possible that implementation of the new coinage legislation that I am proposing, greatly reducing the requirement for silver in our subsidiary coinage, will actually make feasible the minting of additional silver dollars in the future.  Certainly, without this change in the silver content of the subsidiary coinage, further minting of the silver dollar would be forever foreclosed.  IT IS OUR INTENTION THAT THE NEW COINAGE CIRCULATE SIDE BY SIDE WITH OUR EXISTING COINAGE.  We plan to continue the minting of our current silver coins while the new coinage is brought into quantity production.  The new coins will be placed in circulation some time in 1966.  In terms of the present pattern of coin usage, adoption of the new coinage will permit a saving of some 90 percent of the silver we are now putting into coins annually.”

Word is that the Denver mint struck 316,106 silver dollars dated 1964---same design as the last Peace dollars struck in 1935, but that all the 1964 dated coins were melted before release---or almost all of them!  If any survivors exist, they would be greater rarities than the 1933 $20 gold piece!  See www.jeffersoncoinandbullion.com/article27.shtml My understanding is that some 90% dimes and quarters were still being placed into circulation until early 1966, trying to maintain the illusion that the public wasn’t interested in saving the 90% coins---that the clad coins weren’t driving the better money out!  My experience as a boy of almost 12 years in late spring 1966 at a washateria was to be a stunned witness to the introduction of the new sandwich coins.  Details appear in “Roaches In The Cornmeal” (see Archives).

I WANT TO MAKE IT ABSOLUTELY CLEAR THAT THESE CHANGES IN OUR COINAGE WILL HAVE NO EFFECT ON THE PURCHASING POWER OF OUR COINSTHE NEW ONES WILL BE EXCHANGED AT FULL FACE VALUE FOR THE PAPER CURRENCY OF THE UNITED STATES.  They will be accepted by the Treasury and by the Federal Reserve banks for any of the financial obligations of the United States.  The legislation I am proposing expressly recognizes the new coins as legal tender.  It is of primary importance that our new coins be specifically designed to serve our modern, technological society.  In the early days of the Republic, silver coins served well because the value of a coin could only be measured by the value of the precious metal contained in it.  For many decades now the value of a particular coin has depended not on the value of the metal in it, BUT ON THE FACE VALUE OF THE COIN.  Today’s coinage must primarily be utilitarian.  The new coinage will meet this requirement fully, WHILE DISPENSING WITH THE IDEA THAT IT CONTAIN PRECIOUS METAL.  It has been specifically designed to function without causing delays or disruptions of service, in coin-operated merchandising machines.  Furthermore, IT IS COMPOSED OF MATERIALS LOW ENOUGH IN VALUE and readily enough available to insure that we can have as many coins as we need.  The legislation I am proposing also contains these additional recommendations---“ (continued next segment)

90% silver coins have recently traded at 6.5x to 7.1x and more in dealer buy-sell transactions.  It should be evident to any fiat economist that silver coins and clad coins actually do differ in purchasing power.  As for exchanging any coins for paper currency, innately speaking, a clad dime is probably worth more than a $100 Federal Reserve note.  90% silver coins rescued by dealers and the public as the clad coins drove them out will retain purchasing power no matter what happens to the paper dollar.  As for LBJ’s claim that there would be no effect in the purchasing power of the coinage and that it would be exchanged at full face for paper money, the Wall Street Journal, June 7, 1965, page 14 said---

“True enough; but the purchasing power of that famous paper currency has itself been steadily eroded by the selfsame Government in its pursuit of inflationary policies for more than 30 years.  Given that bias, it is not surprising that our money is being more and more COMPLETELY DIVORCED FROM BOTH GOLD AND SILVER.  The trend should give rise to something besides nostalgia.  The wholesale expunging of silver stands as one more symbol of the Federal progression towards fiat money, no matter how many silver linings the Government professes to see.”

Resuming again with Lousy Bum Job’s statements---

“First, as a useful precautionary measure, I request standby authority to institute controls over the melting and export of coins to assist the protection of our existing and our new silver coinage.  Second, I request authority to purchase domestically mined silver at not less than $1.25 per ounce.  Third, I am asking for authority to reactivate minting operations temporarily at the San Francisco Assay Office.  Fourth, as a safeguard for assured availability of the new coinage, I am asking for new contracting authority for the procurement of materials and facilities related to it.  Fifth, I propose the establishment of a Joint Commission on the Coinage, composed of certain members of Congress, the public, and the executive branch of the government, to report to me later the progress made in the installation of the new coinage and to review any new technological developments and to suggest any further modifications which may be needed.”

Melting coins was a Federal offense and Treasury agents arrested violators!  The anti-melting ban officially began as of May 19, 1967.  The Wall Street Journal, March 4, 1968, page 4, reported the Joint Commission on Coinage recommended the ban on melting by private holders be continued (the Treasury could melt).  The Wall Street Journal, April 30, 1968, page 9, reported that the Secret Service arrested two men at Tucson, Arizona, who had two tons of dimes and quarters and melting apparatus.  The December 5, 1968 WSJ, page 29 reported---

“Two men were arraigned in Federal court accused of trying to capitalize on the high price of silver by illegally melting down U.S. coins.”

Guess who turned them in!  It was Englehard, Silver Users Association members!  Later on, the ban on melting was rescinded when the Silver Users Association concluded that it could get more silver by revoking the policy.  WSJ, December 6, 1968, page 16, Silver Users Association recommended the U.S. stop producing 40% Kennedys, “and to remove the ban on melting silver coins IN CERTAIN CIRCUMSTANCES.”  If a ban suited the SUA it was imposed, if lifting the ban suited the SUA, it was lifted.  Talk about a puppet government.  Johnson’s offer to buy newly mined silver at $1.25 was of course another price-capping measure.

“Why the silver content of the coinage must be reduced at this session---these recommendations for revision of our silver coinage rest upon extensive study of the silver situation, and of alternatives to our present coinage, by both government and private specialists.  The Treasury Department’s comprehensive report, known as the Treasury Staff Silver and Coinage Study, is being released today as background to my recommendations.  Its principal finding was that the supply of silver has become progressively incompatible with the maintenance of silver in all our subsidiary coins.  On the average, in the 5 years from 1949 through 1953, new silver production in the free world amounted to about 175 million troy ounces per year, while consumption amounted to more than 235 million ounces.  There was an average deficit in those 5 postwar years of more than 60 million ounces of silver per year.”

Even the President of the U.S. admitted we had a silver deficit before many of us were born.  Scarcity of silver combined with literally centuries of price capping attempts, establishes the base for the greatest increase in value in history for any commodity---silver.  The Octopus of World Finance, through their minions in government, intends to cheat us of our gains through measures consisting of all that has been predicted---seizure, confiscation, making precious metal illegal for settling transactions (“terrorists use gold and silver”), punitive taxation, barrage of media invective about “hoarders” and “speculators” holding the nation “hostage,” and so on.  One useful way to fighting this is an attempt to get wealthier persons to hold real metal.  Just be careful some clause isn’t invoked saying, you must possess at least 50,000 ounces minimum of silver (Bush type economic approach) or something even sneakier that would work out to exempt those on an “approved organizations” list.

“In the latest completed 5 years, 1960 through 1964, free world consumption of silver has averaged 410 million ounces annually, but new production has averaged less than 210 million ounces a year.  The result has been an average annual deficit of about 200 million ounces.  That is three times the average annual deficit in the 5 years from 1949 through 1953.  If no silver at all had been used for coinage there would have been a deficit in new production in free world silver during the last 5 years averaging over 40 million troy ounces, or some 1,370 tons a year.  THE GAP BETWEEN THE PRODUCTION OF SILVER AND SILVER CONSUMPTION IS CONTINUING TO INCREASE.  In 1964 the silver production deficit swelled to over 300 million ounces---half again over the 1963 figure.  In 1964 the use of silver in coinage, and the use of silver for the arts and industry of the free world were each---taken separately---greater than new production.”

Lousy Bum Job told Congress about the silver deficit they already knew about but observe---no one said anything as to how allowing higher valuations for silver would have resulted in miners producing more of it!  Just an excuse to move closer to a full fiat money system!

“There is no dependable or likely prospect that new, economically workable sources of silver may be found that could appreciably narrow the gap between silver supply and demand.  The optimistic outlook is for an increase in production of about 20 percent over the next 4 years.  This would be of little help.  Further, because silver is produced chiefly as byproduct of mining copper, lead and zinc, even a very large increase in the price of silver would not stimulate silver production sufficiently to change the outlook.  SHORT OF CONTROLS THAT ARE UNDESIRABLE IN A PEACETIME FREE SOCIETY, THERE IS NO WAY TO DIMINISH THE BOUNDING GROWTH OF PRIVATE DEMAND FOR SILVER FOR USE IN JEWELRY, SILVERWARE, PHOTOGRAPHIC FILM, AND INDUSTRIAL PROCESSES, THE ONE PART OF THE DEMAND FOR SILVER THAT CAN BE REDUCED IS GOVERNMENTAL DEMAND FOR USE IN COINAGE.

Johnson’s concern was for the Silver Users Association.  He worked with the fiat paper crowd and used ruses and excuses to take us off silver coinage.  He didn’t do a Lousy Bum Job for everyone!  He spoke of the undesirability of controls (price controls) in peacetime.  However, controls were in place---Treasury dumped silver to inhibit a price rise.  Later the COMEX would take over responsibility for suppressing the silver price---they have been doing so for at least 35 years, aided by clandestine central bank and foreign treasury leasing.

“Most free world countries no longer use silver in their coins.  A few---as we now propose---continue to make limited use of it.  It is true that U.S. coinage does not currently depend upon new silver production, because for many years we have supplied silver for our coinage out of large Treasury stocks, which still amount to 1 billion troy ounces.  But---and this is the crux of the matter---at the present pace, this stock cannot last even as much a three years.  We would then be shorn of our ability to maintain the coinage, and if there were no alternative to our present silver coinage, the nation would be faced with a chronic coin shortage.  That is why definitive action is necessary at this session of the Congress.”

My notion of definitive action might have consisted of letting the purchasing power of silver coins rise with no ceiling value, end issuance of Federal Reserve Notes, open the mints to the free and unlimited coinage of gold and silver, let precious metals reign as proper Constitutional money, and use copper and nickel as subsidiary coinage.  But this would break the bankers power and could not be allowed.

“It is necessary for the U.S. Government to have large stocks of silver in addition to the quantity needed for coinage.  We need these stocks because our SILVER COINS IN CIRCULATION MUST BE PROTECTED FROM HOARDING or destruction.  Protection of the silver coinage will continue to be a necessity since WE PLAN FOR IT TO CONTINUE TO CIRCULATE ALONGSIDE THE NEW COINS.  Our silver coins are protected by the fact that the Government stands ready to sell silver bullion from its stocks at $1.29 a troy ounce.  THIS KEEPS THE PRICE OF SILVER, AS A COMMODITY, FROM RISING above the face value of our coins.  This, in turn, makes hoarding or melting of the silver coinage unprofitable.”

LBJ’s sponsors inflicted the clad coins on the USA, a slap in the face to the framers of the Constitution.  As the android said on the original Star Trek, “YOU BROUGHT THE DISEASE AMONG US!  YOU BROUGHT THE INFERIOR ONES!”

There were probably many dummy citizens who didn’t recognize the inherent value of the silver coins as opposed to the new clads, and so spent the silver coins alongside the dummy coins as face value.  But many others, unfazed by economic misinformation, moved to save as many silver coins as possible.  Why should it bother Johnson to lie to the nation about the coinage, when many sources attest to the fact that he lied about being under fire in the Pacific in WWII by Japanese Zeros, for which nonexistent event he was awarded the Silver Star?  See www.hnn.us/articles/153.html

“It is as additional protection for the existing coinage that I am requesting standby authority to institute controls over the melting, treating, or export of U.S. coins.  It may be asked why we seek standby control authority since we retain a large stock of silver with which to protect our silver coins through operations in the silver market.  The answer is clear.  Given the magnitudes by which demand for silver is outrunning new production, we must consider the possibility, however unlikely, that the silver stock we possess could itself require the support and protection that would be afforded by authority to forbid melting and export of our coins.”

“We believe our present stocks of silver to be adequate, once the large present drains from coinage are greatly reduced, to meet any foreseeable requirements for an indefinite period.  Prompt action on a new coinage will help us protect the silver coinage by freeing our silver reserves for redemption of silver certificates at $1.29 per ounce.  Thus, we can assure that no incentive will be created for hoarding our present coins in anticipation of a higher price for their silver content.”

Yeah, the Money Power has always opposed us benefiting by ownership of silver!  LBJ didn’t fool everyone, some silver coins put away by savers in the mid to late 1960’s became part of inheritances later, that were either set aside to be passed on again, or sold through dealers to others who, like those who frequent Silver Investor and other such sites, persistently hold them, to use LBJ’s words “in anticipation of a higher price for their silver content.”  An even more important reason for holding these 90% coins is as disaster money, in the event the Federal Ripoff Note reaches zero buying power!

“There is the opposite, although in all likelihood short run, possibility that a fall in the price of silver might result from the enactment of this legislation largely removing silver from our subsidiary coin.  It is for the purpose of protecting silver producers from a precipitate drop in the price of silver resulting from the action of the Government that I am requesting authority for the Secretary of the Treasury to purchase any newly mined domestic silver offered to him at the price of $1.25 per troy ounce.”

Lousy Bum Job wasn’t sincere about doing anything for silver producers, because $1.25 an ounce was far from a rate that encouraged the health of their operations.  As usual, the Silver Users Association was sucking up the great bulk of silver profits.

“Coinage operations at the San Francisco Mint were ended in 1955.  Legislation converting the Mint to the San Francisco Assay Office was passed in 1962.  As part of our efforts to overcome the coin shortage of the past year, coin blanks have been cut and annealed at the San Francisco Assay Office.  Present law forbids full minting there.  However, we will temporarily need the facilities of this plant to move into large quantity production of the new coinage and to continue production of existing coins until enough is made to make certain we have adequate supplies.  Consequently, I am asking for authority to reactivate minting operations at San Francisco on a temporary basis.”

No coins came out of that facility with an “S” mintmark after 1955.  I felt like a kid in a candy store the time I had opportunity to fish out 1955-S dimes and quarters with no wear from the far more common date 1964 issues, at the same narrow spread over melt.  Those ‘55s aren’t numismatic rarities but still highly scarce upside the ‘64s, so I still have some of the collector spirit.

“A new, fully modern mint is to be built in Philadelphia.  However, it cannot be completed and in operation before late 1967.  It is our expectation that when the new Philadelphia Mint’s capacity is added to that of the Denver Mint, our coinage requirements can be met efficiently and economically.  Consequently, no more than temporary authority to mint coins in San Francisco is recommended in the draft legislation I am sending to you.”

You have to ask yourself, what was the government’s concern that the San Francisco Mint not ever fully be reactivated?  Were they worried that it was too close to Nevada, where gold and silver are produced?  We still have 12 Federal Reserve branch banks, but cannot have so many as three Mint locations.  By keeping San Francisco closed for minting, was this a further attempt to squelch historic notions of having the Mints available for the free and unlimited coinage of silver and gold?

WE HAVE NO CHOICE BUT TO ELIMINATE SILVER FROM OUR SUBSIDIARY COINAGE.  The question was---what would be the best alternative?  After very thorough consideration of all aspects of this highly complex problem, we have settled upon the two types of composite, or clad, coins I have already described.  These are 10-cent and 25-cent pieces with cupronickel alloy faces bonded to a solid copper core, and a new half dollar with outer and inner layers of differing silver-copper alloys.  This type of coin was found to be necessary if the new coinage is to be compatible with the existing silver coinage in all the 12 million coin-operated devices in use in the United States.”

“The convenience of using coins in automatic merchandising and service devices is a fact that, like the coins in our pockets and in our store tills, we take for granted.  But if our coinage were suddenly to be such that it would not work in coin-operated devices, the public would be subjected to very great inconvenience and serious losses would occur to business with harmful effects on employment.  The automatic merchandising industry is a large and growing part of our national economy.  Last year, $3.5 billion worth of consumer items were sold through 3.5 million of these machines.  On more than 30 billion separate occasions a consumer made a purchase by putting a coin in a machine.  In growing numbers, factories, hospitals, and other places now depend upon automatic vending.  A million and a half people now rely upon coin-controlled vending for at least one meal a day.  The use of coin-operated devices is expanding rapidly, not only in merchandise vending, but also in a number of other services.”

In my junior high days I used the vending machines daily.  A candy bar was ten cents!  A silver dime first, later displaced by clad dimes, or two nickels.  I recall a disgusting incident in which I deposited two nickels, pulled several levers, and no product was dispensed.  A shameless opportunist (I still remember her name after almost 40 years) watched very close by.  She suddenly moved in, deposited one nickel, pulled a lever, and out came a candy bar.  The opportunist snatched the item away before I could react and demand half (actually two-thirds); so speechless was I at the rank effrontery!  She should have become a Silver Users Association lobbyist!

“Six million of our coin-operated devices, including nearly all vending machines, have selectors set to reject coins or imitations of coins that do not have the electrical properties of our existing silver money.  Highly sensitive rejectors are a necessity in these machines if they are to be a low cost source of food and other goods and services.  Otherwise, fraudulent use would soon make them costly.  The sensors in these machines are set to accept or reject coins on the basis of the electrical properties of our traditional coins, which have a high proportion of silver.  To be compatible in operation with our existing coinage, therefore, our new coins must duplicate the electric properties of a coin that is 90 percent silver.  No single acceptable metal or alloy does so.  The composite coins, made of layers of differing metals and alloys, that I am asking Congress to approve, are coins made to order to duplicate the electrical properties of coins with a high silver content.  They are the only practical alternatives we have discovered to our present coinage.”

Of course the clad coins could not exactly duplicate the electrical conductivity of the 90-percenters; LBJ should have said “within range.”

“Selector exist that can handle coins with the widely varying electrical properties of nearly pure silver and nearly pure nickel.  But that is not enough.  When the selectors are set to accept coins with greatly differing electrical properties, the selectivity of the mechanism declines and they will accept wrong coins and imitations.  Unless the coins in use have very similar electrical properties, the coin-operated machines become subject to a high degree of fraudulent use.  This would be costly to all concerned.  The future may bring selectors of a different kind able to accept coins of widely varying electrical properties while at the same time rejecting imitations and wrong coins.  They are not available now.  When and if they become available, our new coinage will work in them.  On the other hand, if we now chose an incompatible coinage, there would be delays and interruptions lasting a year to 3 years in the service of these machines.  This would impose heavy inconveniences upon the public and would cause business and employment losses in a large and growing industry.”

There was in fact a huge uproar among those in the vending machine industry.  They were worried there wouldn’t be sufficient coinage in circulation---due to silver hoarding---to maintain their normal volume.  And there was concern as to the differing technological problems in distinguishing legal tender coins with “slugs.”

“In view of these considerations of public interest, we have concluded that our new coinage must without fail be able to carry out the technical merchandising functions of a modern coinage, working alongside our existing silver coinage.  The new coins I am recommending to you do this, and do it well, because they were specifically designed for the task.”

“The new half dollar was designed with the strong desire in mind of many Americans to retain some silver in our everyday coinage.  We believe that by eliminating silver from use in the dime and the quarter, we will have enough silver to carry out market operations in protection of our existing silver coinage---and to make a half dollar of 40 percent silver content.  It is clear and unmistakable that we would not have enough silver to extend this to the dime and quarter---they are heavily used, indispensable coins that we must have at all times in large quantity.  We are convinced that we can include a 40-percent silver half dollar in the new coinage, but we cannot safely go beyond that.  As a precaution, we intend to concentrate at first on getting out large quantities of the new quarter and dime before we embark upon quantity production of the new half dollar.”

The 40 percent Kennedy half was just a bone thrown to the silver miners, with most of the meat gnawed off by the Silver Users Association.  By “carry out market operations,” Lousy Bum Job meant, “suppressing the price.”

“We believe the recommendations being made for a new coinage are sound and durable and in the best public interest.  However, the installation of a new coinage is a matter so intimately affecting the life of every citizen, and so delicately related to the nation’s commerce, that it is impossible to be certain in advance that all problems have been foreseen, even by such a long and arduous process of research as has gone into the selection of the proposed new coins.”

“Consequently, I am including among my recommendations the proposal for a Joint Commission on the Coinage.  It will be composed of the four officers of the executive branch most directly concerned with matters affected by the coinage---the Secretary of the Treasury, the Secretary of Commerce, the Director of the Budget Bureau and the Director of the Mint; of four members representing the public interest, to be appointed by the President; of the chairmen and ranking members of the Banking and Currency Committees of the House and the Senate; of one member each from the two Houses of Congress, to be appointed by the Vice President and the Speaker of the House.  The Commission will be appointed soon after the new coinage is issued.  It will study such matters as new technological developments, the supply of various metals, and the future of the silver dollar.  IT WILL REPORT AS TO THE TIME AND CIRCUMSTANCES IN WHICH THE GOVERNMENT SHOULD CEASE TO MAINTAIN THE PRICE OF SILVER. It will be directed to advise the President, the Congress, and the Secretary of the Treasury on the results of its studies. 

Head of the Joint Commission, 1965-1968 was Kenneth M. Failor, who was with the Office of Naval Intelligence in WWII---

www.washingtonpost.com/wp-dyn/articles/A64477-2005Apr18.html the other members were the usual assortment of typical CFR members.  According to his obituary in the Washington Post---

“The Gold Reserve Act of 1934 had limited the use of gold to industrial, professional and artistic use, so his duties involved oversight of an elaborate system of reporting, as well as investigations to prevent gold hoarding by the general public.”

Failor’s previous assignment at Treasury gives an accurate taste of the nature of the Joint Commission---totally against precious metals as money and 100% opposed to average Americans owning precious metals!  As for Johnson’s allusion to a time when the Federal Government would “cease to maintain the price of silver,” this has never happened!  Before the CFTC came into existence in 1975 we still had the Justice Department that has never brought antitrust charges against anyone for collaborating to hold silver prices down!  Henry H. Fowler (Yale 1932, CFR) was Treasury Secretary 1965-1968 and he served on a committee of the Brookings Institution (anti-silver money).  After leaving Treasury he went to Goldman Sachs and became a trustee of the LBJ Foundation.  Alexander Trowbridge (CFR) who became Commerce Secretary 1967-1968, was a member of the Commission.  Trowbridge became vice chairman of Allied Chemical under Pilgrims member Connor, who was his predecessor at Commerce.  Eva Adams, director of the Mint and member of the Joint Commission on Coinage, was assistant to Senator Pat McCarran, 1940-1954, the best silver Senator ever.  Whether she championed silver on the Joint Committee I cannot tell; her earlier affiliation with McCarran would so suggest.  However, she was a member of the District of Columbia and Federal Bar Associations, which I believe would be unfriendly to silver.  If she did support silver the other members must have dragged her along.  Fowler was quoted in the New York Times June 5, 1965, page 14---

“I think the ruddy edge resulting from their copper core gives these coins a character we will come not only to accept, but to value. 

On the same page there was the comment by John B. Stevens (Yale 1937) vice president of International Silver Company (Connecticut), in his role as chairman of the executive committee of the Silver Users Association, that he applauded Federal moves to eliminate silver use in dimes and quarters, but deplored use of silver in the 40% halves!  (“We want the whole silver pie,” says the SUA!)  Let’s finish reading LBJ’s remarks on coinage---

“I am pleased to report to the Congress substantial progress toward overcoming the coin shortage the Nation has been experiencing.  Greatly increased minting has eliminated the shortage of pennies and nickels.  We are still somewhat on the short side of the demand for dimes and quarters, but this deficit is rapidly being overtaken.  A SEVERE SHORTAGE OF THE HALF DOLLAR CONTINUES, due to the popularity of the new 50-cent pieces bearing the image of President Kennedy.  I want to emphasize that we will continue to make the existing coins while the new ones come into full production, and that WE CONTEMPLATE SIDE BY SIDE CIRCULATION OF THE OLD AND NEW COINS FOR THE INDEFINITE FUTURE.  THERE IS NO REASON FOR HOARDING THE SILVER COINAGE WE NOW USE, BECAUSE THERE IS NO REASON FOR IT TO DISAPPEAR.”

The shortage of the Kennedy half was severe not because it was “popular” but because it was 90% silver!  Of course, Kennedy’s status as a martyr added to demand for the coins.  As soon as citizens secured them, naturally they hoarded them, knowing that degraded coins were to follow!  As for Lousy Bum Job figuring or intending that the silver coins would circulate alongside the clad dimes and quarters and the new 40% Kennedys, he was LYING!!  May I pull out all the stops?  Here is where he was a Lying Bastard Jackass!  LBJ, I believe you are down in a smoky place.  Because what he intended was to hoodwink the public into leaving the 90% coins in circulation, so that his accomplices at the banks, and especially in the regional Federal Reserve branch banks, could fish out the 90% coins from the rest, and ship them to the Treasury so they could be melted and sold to the Silver Users Association!   The Wall Street Journal, January 19, 1968, page 14, “Hoarders Accelerate Rush for Silver coins,” said Federal Reserve branch banks accumulated 210 million ounces of 90% silver coins, working against the public for the greedy Silver Users Association.  The article said---

“The Treasury wants to melt coins exclusively so the Government can continue to help supply industrial silver needs, which far exceed domestic production.”  

There was no reason for anyone to hoard the silver coinage, he said!  For those who took his advice, there were banking operatives sifting the silver coins out for the silver users, who were most assuredly doing their own “hoarding” (melting and consumption).

“We are gearing up for maximum production of the new coins as soon as they are authorized by Congress.  Supply of materials for them is assured.  Both copper and nickel are economical and available in North America.  Their usage in coins will not add enough to overall employment of these metals to create supply or price problems.  In the first year after new coins are authorized, we expect to make 3.5 billion pieces of the new coins.  That is a billion and a half more pieces than will be made of the corresponding silver coins in the current fiscal year.  In the second year after authorization of the new coinage, we expect to be able to double the first year’s output of the new coins, reaching a production total of 7 billion pieces.  We expect in this way to avoid any new coin shortage in the transition to production of the new coins, and within a period of less than 3 years to reach a point at which we could meet total coinage needs out of production of the new coins.”

Coinage debasement was not to end!  The 40% Kennedys and Eisenhower dollars would be eliminated.  Even the 95% copper and 5% zinc pennies, of which over 130 billion units were minted, 1959 through 1981, would be cheapened as of 1982 by mutation to 97.6% zinc and 2.4% copper.  This action also hurt longs in the copper market who sensed higher prices.  The new pennies became over 17.5% lighter than the old pennies.  Will we finally see aluminum coins here?  Perhaps not; it isn’t much of a jump from 75 cent to $1 candy bars, and many machines have bill acceptors.  Completing---

“I am satisfied that, taking into account all of the various factors involved in this complex problem, the recommendations that I am making to you are sound and right.  Your early and favorable action upon the proposed legislation will make it possible to produce and issue to the public a coinage that will be acceptable, provide the maximum convenience, and serve all the purposes---financial and technical---of modern commerce.  In considering this problem the needs of the economy and the convenience of the public have been placed ahead of all other considerations.  They are the factors that have resulted in my recommendations to the Congress.  I urge their approval at the earliest possible date.”---Lyndon B. Johnson, The White House, June 3, 1965

While the near-complete elimination of silver from coinage was a shock to the western miners and those members of the public who comprehended the need for intrinsic value in coins, the 40% half dollars remained through 1969, based on the principal of “gradualism.”  The debasement community could point to the 40% coins and say, “see, you still have silver coins!”  The Silver Users Association viewpoint was expressed (NYT, June 4, 1965, page 18)—

“The association predicted that the new half-dollars would disappear from circulation because they would become collector’s items.  It said every ounce of silver used to make them “would be at the expense of industrial users of silver and the consuming public.”  The National Association of Photographic Manufacturers agreed.  It said that the retention of silver in any coinage “will only aggravate the existing shortage of this precious metal in the market.”  Dissenting on the Prseident’s plan was Dr. Franz Pick, a foreign exchange market observer.  He predicted that dimes and quarters now in circulation “will completely disappear, and the half dollars too.”  He said the present coins had intrinsic value but the new ones would not.  The new quarters, for example, he noted, will have an intrinsic value of 1 or 2 cents, while present coins have an intrinsic value of 24.5 cents.  Silver stocks on the New York Stock Exchange tended to decline, as did futures in silver on the New York Mercantile Exchange.”

Some details on the National Association of Photographic Manufacturers are to be found at www.techexpo.com/tech_soc/napm.html

The perverse Coinage Act of 1965, at the behest of the Federal Reserve and the Silver Users Association, passed and our Constitutional money was debased, desecrated and sullied!  Silver certificate redemption was cancelled in 1968 and the Gold redemption window was closed to foreigners (meaning France especially) in 1971.  We have been on full fiat currency for close to 35 years, and I am tempted to think this system might not attain to a 40-year existence before it fails totally.  Hans Sennholz in “The Age of Inflation” (Western Islands, Belmont Massachusetts, 1979, page 157) reflected---

“The awareness of the very nature of money and the natural characteristics of precious metals in the service of economic exchange leads us to believe that gold and silver coins will survive the next millennia.”

Before we take a look at what will likely be the George W. Bush (Going Wild Bigtime) perspective on silver, let’s look at another anti-silver Presidential speech, delivered by Grover Cleveland on December 8, 1885 at the White House--- 

“Nothing more important than the present condition of our currency and coinage can claim your attention.  Since February 1878, the Government has, under the compulsory provisions of law, purchased silver bullion and coined the same at the rate of more than $2,000,000 every month. By this process up to the present date 215,759,431 silver dollars have been coined.”

The New York banks boycotted the new Morgan dollars when they came out in 1878.  They were deeply in league with the British Empire campaign against silver as money.  That’s why they have several trans-Atlantic organizations today who claim members of the New York and London banking circles.

“A reasonable appreciation of a delegation of power to the General Government would limit its exercise, without express restrictive words, to the people's needs and the requirements of the public welfare. The desire to utilize the silver product of the country should not lead to a misuse or the perversion of this power.”

Why was the issuance of silver a “perversion,” since it has always been the common man’s ordinary money; it’s just a perversion to bankers who can’t create it!

“Upon this theory the authority to "coin money" given to Congress by the Constitution, if it permits the purchase by the Government of bullion for coinage in any event, does not justify such purchase and coinage to an extent beyond the amount needed for a sufficient circulating medium.”

This was part of the time period known as the “Bimetallic Controversy” in which the big bankers were scheming to demonetize silver, to keep it demonetized, and to shift emphasis to a gold monometallic standard preparatory to the full transition to fiat, which didn’t happen till 1971!  For details about the 1880’s and 1890’s concerning the struggle over silver between the people and the bankers, see “Silver Wars And Silver Surprises” (Archives).

“The necessity for such an addition to the silver currency of the nation as is compelled by the silver-coinage act is negatived by the fact that up to the present time only about 50,000,000 of the silver dollars so coined have actually found their way into circulation, leaving more than 165,000,000 in the possession of the Government, the custody of which has entailed a considerable expense for the construction of vaults for it deposit. Against this latter amount there are outstanding silver certificates amounting to about $93,000,000. Every month two millions of gold in the public Treasury are paid our for two millions or more of silver dollars, to be added to the idle mass already accumulated.”

The predatory financial community made arrangements for this situation to take place, then falsely ascribed it to rejection of the coins by the public.  “Idle mass” is another term for precious metal we can add to our list of lurid propaganda epithets created by the paper money mob.

“If continued long enough, this operation will result in the substitution of silver for all the gold the Government owns applicable to its general purposes. It will not do to rely upon the customs receipts of the Government to make good this drain of gold, because the silver thus coined having been made legal tender for all debts and dues, public and private, at times during the last six months 58 per cent of the receipts for duties has been in silver or silver certificates, while the average within that period has been 20 per cent. The proportion of silver and its certificates received by the Government will probably increase as time goes on, for the reason that the nearer the period approaches when it will be obliged to offer silver in payment of its obligations the greater inducement there will be to hoard gold against depreciation in the value of silver or for the purpose of speculating.  This hoarding of gold has already begun.”

Of course Cleveland’s banker friends made arrangements to squash silver, including on the political scene with the defeat of William Jennings Bryan.  They were also actively manipulating gold.

“When the time comes that gold has been withdrawn from circulation, then will be apparent the difference between the real value of the silver dollar and a dollar in gold, and the two coins will part company. Gold, still the standard of value and necessary in our dealings with other countries, will be at a premium over silver; banks which have substituted gold for the deposits of their customers may pay them with silver bought with such gold, thus making a handsome profit; rich speculators will sell their hoarded gold to their neighbors who need it to liquidate their foreign debts, at a ruinous premium over silver, and the laboring men and women of the land, most defenseless of all, will find that the dollar received for the wage of their toil has sadly shrunk in its purchasing power. It may be said that the latter result will be but temporary, and that ultimately the price of labor will be adjusted to the change; but even if this takes place the wage-worker can not possibly gain, but must inevitably lose, since the price he is compelled to pay for his living will not only be measured in a coin heavily depreciated and fluctuating and uncertain in its value, but this uncertainty in the value of the purchasing medium will be made the pretext for an advance in prices beyond that justified by actual depreciation.”

Cleveland’s name appeared as a charter member of The Pilgrims (New York) as of 1903 (“The Pilgrims of Great Britain,” 2002).  Funny he feigned concerned for the working classes when the Crime of ’73 (Coinage Act of 1873) worked ruination on them by forbidding payment in silver in amounts over $5.

“The words uttered in 1834 by Daniel Webster in the Senate of the United States are true today: The very man of all others who has the deepest interest in a sound currency, and who suffers most by mischievous legislation in money matters, is the man who earns his daily bread by his daily toil.  The most distinguished advocate of bimetallism, discussing our silver coinage, has lately written: No American citizen’s hand has yet felt the sensation of cheapness, either in receiving or expending the silver-act dollars.  And those who live by labor or legitimate trade never will feel that sensation of cheapness. However plentiful silver dollars may become, they will not be distributed as gifts among the people; and if the laboring man should receive four depreciated dollars where he now receives but two, he will pay in the depreciated coin more than double the price he now pays for all the necessaries and comforts of life.”

“Those who do not fear any disastrous consequences arising from the continued compulsory coinage of silver as now directed by law, and who suppose that the addition to the currency of the country intended as its result will be a public benefit, are reminded that history demonstrates that the point is easily reached in the attempt to float at the same time two sorts of money of different excellence when the better will cease to be in general circulation. The hoarding of gold which has already taken place indicates that we shall not escape the usual experience in such cases. So if this silver coinage be continued we may reasonably expect that gold and its equivalent will abandon the field of circulation to silver alone. This of course must produce a severe contraction of our circulating medium, instead of adding to it.”

Gold bugs, where are you?  I am referring to the Gary North camp, who evidence belief that gold alone should be used as money.  Across all history gold has been the more valuable, except for a time in ancient Egypt.  There is also no debate that platinum commands higher value than gold.  The silver situation has become so perverse through such a centuries long conspiracy against its value, that in most countries, above ground gold is more plentiful than silver.  Could it be that gold will become the subsidiary currency to silver?

“It will not be disputed that any attempt on the part of the Government to cause the circulation of silver dollars worth 80 cents side by side with gold dollars worth 100 cents, even within the limit that legislation does not run counter to the laws of trade, to be successful must be seconded by the confidence of the people that both coins will retain the same purchasing power and be interchangeable at will. A special effort has been made by the Secretary of the Treasury to increase the amount of our silver coin in circulation; but the fact that a large share of the limited amount thus put out has soon returned to the public Treasury in payment of duties leads to the belief that the people do not now desire to keep it in hand, and this, with the evident disposition to hoard gold, gives rise to the suspicion that there already exists a lack of confidence among the people touching our financial processes. There is certainly not enough silver now in circulation to cause uneasiness, and the whole amount coined and now on hand might after a time be absorbed by the people without apprehension; but it is the ceaseless stream that threatens to overflow the land which causes fear and uncertainty.”

In less than 13 years after the Crime of ’73 Cleveland attempted to tell the common people things contrary to what they knew as fact.

“What has been thus far submitted upon this subject relates almost entirely to considerations of a home nature, unconnected with the bearing which the policies of other nations have upon the question. But it is perfectly apparent that a line of action in regard to our currency cannot wisely be settled upon or persisted in without considering the attitude on the subject of other countries with whom we maintain intercourse through commerce, trade, and travel. An acknowledgment of this fact is found in the act by virtue of which our silver is compulsorily coined. It provides that--

“The President shall invite the governments of the countries composing the Latin Union, so called, and of such other European nations as he may deem advisable, to join the United States in a conference to adopt a common ratio between gold and silver for the purpose of establishing internationally the use of bimetallic money and securing fixity of relative value between those metals.”

“This conference absolutely failed, and a similar fate has awaited all subsequent efforts in the same direction. And still we continue our coinage of silver at a ratio different from that of any other nation. The most vital part of the silver-coinage act remains inoperative and unexecuted, and without an ally or friend we battle upon the silver field in an illogical and losing contest. To give full effect to the design of Congress on this subject I have made careful and earnest endeavor since the adjournment of the last Congress.”

(The conference failed because Great Britain and America sabotaged it.)

“To this end I delegated a gentleman well instructed in fiscal science to proceed to the financial centers of Europe and, in conjunction with our ministers to England, France, and Germany, to obtain a full knowledge of the attitude and intent of those governments in respect of the establishment of such an international ratio as would procure free coinage of both metals at the mints of those countries and our own. By my direction our consul-general at Paris has given close attention to the proceedings of the congress of the Latin Union, in order to indicate our interest in its objects and report its action.”

Diplomats, ambassadors and consuls are nearly always pawns of the financial powers---the money creators.  That’s why their names appear on membership lists alongside their banker bosses.

“It may be said in brief, as the result of these efforts, that the attitude of the leading powers remains substantially unchanged since the monetary conference of 1881, nor is it to be questioned that the views of these governments are in each instance supported by the weight of public opinion. The steps thus taken have therefore only more fully demonstrated the uselessness of further attempts at present to arrive at any agreement on the subject with other nations.”

“In the meantime we are accumulating silver coin, based upon our own peculiar ratio, to such an extent, and assuming so heavy a burden to be provided for in any international negotiations, as will render us an undesirable party to any future monetary conference of nations.”

Undesirable party to any future monetary conference of nations?  We haven’t been a desirable party to even a fractional extent since August 1971!  While Cleveland was touting gold monometallism for his banker friends, they knew that full fiat was their ultimate goal.

“It is a significant fact that four of the five countries composing the Latin Union mentioned in our coinage act, embarrassed with their silver currency, have just completed an agreement among themselves that no more silver shall be coined by their respective Governments and that such as has been already coined and in circulation shall be redeemed in gold by the country of its coinage. The resort to this expedient by these countries may well arrest the attention of those who suppose that we can succeed without shock or injury in the attempt to circulate upon its merits all the silver we may coin under the provisions of our silver-coinage act.”

We saw here in January (“The Greatest Right”) that another propagandist told the country in 1950 that silver money was an embarrassment---almost 65 years after Cleveland, the line was unchanged---(“get rid of silver!”)

“The condition in which our Treasury may be placed by a persistence in our present course is a matter of concern to every patriotic citizen who does not desire his Government to pay in silver such of its obligations as should be paid in gold. Nor should our condition be such as to oblige us, in a prudent management of our affairs, to discontinue the calling in and payment of interest-bearing obligations which we have the right now to discharge, and thus avoid the payment of further interest thereon.”

“The so-called debtor class, for whose benefit the continued compulsory coinage of silver is insisted upon, are not dishonest because they are in debt, and they should not be suspected of a desire to jeopardize the financial safety of the country in order that they may cancel their present debts by paying the same in depreciated dollars. Nor should it be forgotten that it is not the rich nor the moneylender alone that must submit to such a readjustment, enforced by the Government and their debtors. The pittance of the widow and the orphan and the incomes of helpless beneficiaries of all kinds would be disastrously reduced. The depositors in savings banks and in other institutions which hold in trust the savings of the poor, when their little accumulations are scaled down to meet the new order of things, would in their distress painfully realize the delusion of the promise made to them that plentiful money would improve their condition.”

Cleveland was associated with the J.P. Morgan banking group, and he was a consummate hypocrite pretending to care for ordinary people.

“We have now on hand all the silver dollars necessary to supply the present needs of the people and to satisfy those who from sentiment wish to see them in circulation, and if their coinage is suspended they can be readily obtained by all who desire them. If the need of more is at anytime apparent, their coinage may be renewed.”

Sentiment related to silver coins?  Just watch as in the months and years ahead of us, average people will wish they had some silver coins!

THAT DISASTER HAS NOT ALREADY OVERTAKEN US FURNISHES NO PROOF THAT DANGER DOES NOT WAIT UPON A CONTINUATION OF THE PRESENT SILVER COINAGE. We have been saved by the most careful management and unusual expedients, by a combination of fortunate conditions, and by a confident expectation that the course of the Government in regard to silver coinage would be speedily changed by the action of Congress.”

I’m worried about disaster!  I’m worried my silver coins will mutate into hornets while I’m asleep and kill me!  What type hornets or wasps might my coins become?  Arizona tarantula hawks or Texas cicada killer types?---

When silver hits the wall as Russell McDougal spoke of, the SUA will feel like one of these creatures backed up into a nostril, the other beastie backed up into the other nostril, and both let loose their monster stings!  Leave these bugs alone and they won’t bother you, is not an approach by which the silver deficit (“ignore it”) can be prevented from going crazy.

Here comes Cleveland again (FDR and LBJ must have liked him)---

“Prosperity hesitates upon our threshold because of the dangers and uncertainties surrounding this question. Capital timidly shrinks from trade, and investors are unwilling to take the chance of the questionable shape in which their money will be returned to them, while enterprise halts at a risk against which care and sagacious management do not protect.”

“As a necessary consequence, labor lacks employment and suffering and distress are visited upon a portion of our fellow-citizens especially entitled to the careful consideration of those charged with the duties of legislation. No interest appeals to us so strongly for a safe and stable currency as the vast army of the unemployed.  I recommend the suspension of the compulsory coinage of silver dollars, directed by the law passed in February 1878.”

The fact that there were enough persons of conscience in Congress to force through the commencement of the issuance of the splendid Morgan silver dollars, should speak to us today, six generations removed, that we should not give up on Congress, but that we should be activists for installing appropriate individuals to correctly legislate on monetary matters.  Let’s wrap this up by thinking about the GWB (George W. Bush, Going Wild Bigtime) part of silver.  We have no yet had a Presidential message on silver from GWB.  The possibilities of what it could consist of are generally horrific.  He has a second cousin at Goldman Sachs; his national campaign co-chair is a Dow Chemical director (Silver Users Association) member; his vice president and defense secretary were the two top officials in the Nixon era Cost of Living Council, which capped the silver price at $1.61 an ounce, after the Treasury ran dry of silver to “auction” (gift) to the SUA (at an average price of $2.48!)  I won’t throw together a fictional attempt at what Bush might tell the nation on silver.  Let’s wait to hear from Pilgrims/Skull & Bones Bush himself.  It would most likely be part of a broader commentary on other “homeland security” concerns.  At some point waging war will become impossible without sufficient silver.  Our Defense Stockpile was given away at the SUA’s insistence.  If a new reserve is needed, those who raided it should have the requirement thrust upon them to do so.  I noticed they reprinted a portion of “Nine Billion Ounces,” presented here in December 2005.  They have my consent to reprint the two preceding sentences.  Bush’s grandfather (left) who visited with Rothschilds and his daddy---three generations of Skull & Bones Society and two (or was it three) generations of Pilgrims members---

Prescott Bush, anti-silver Senator from Connecticut, 1952-1963, longtime Yale University trustee, joined Brown Brothers, Harriman & Company, 59 Wall Street, in 1930.  Prescott was a director of Columbia Broadcasting System (CBS); Pan American Airways; Prudential Insurance; United States Guarantee Company (chairman); Philadelphia Water Company (chairman); Simmons Company; Dresser Industries and Vanadium Corporation of America.  George Senior cofounded Zapata Petroleum Corporation in 1953 and was its president, 1956-1964 then chairman till 1966.  George Senior was a member of the 90th and 91st Congresses from the 7th district of Texas; Ambassador to the United Nations, 1971-1972; chaired the Republican National Committee, 1973-1974; chief of the U.S. Liaison Office at Peking, 1974-1975; became CIA director, 1976-1977; then became a director of Dallas First International Bank at London; 1st International Bank at Houston; Texasgulf Corporation; Eli Lilly; and Purolator.  Before becoming President, George Senior was a trustee of Trinity University at San Antonio; Baylor College of Medicine, Houston; and Phillips Academy at Andover, Massachusetts, private school for elitists.  Bush Senior is honorary chairman of the Council of American Ambassadors.  Functioning chairman is former Ambassador to Israel, publishing and industrial magnate Ogden Reid, second generation Pilgrims member and heir to a Nevada mining fortune.

Neil Bush, George Jr.’s kid brother, was party to the failure in 1988 of Silverado Savings & Loan in Denver, which collapse cost the taxpayers $1.3 billion.  Nationwide, S & L crashes cost hundreds of billions, absorbed by the Money Power.   His daddy, George Senior, issued a directive to the Treasury Department in 1990 to investigate the savings and loan scandals all across the country.  On June 22, 1990, Bush Senior announced---

 “We will not rest until the cheats and the chiselers and the charlatans spend a large chunk of their lives behind the bars of a federal prison.”

Neil Bush was conveniently exempted from this crime fighting initiative.  For details visit
www.dissidentvoice.org/Nov2004/Pringle1129.htm

A mob connected figure, Mario Renda, was deeply involved in the S & L scandal
www.campaignwatch.org/more1.htm#senior

Mario Renda was in fact associated with brokering deposits into at least 130 S & L’s---ALL OF WHICH WENT BROKE!

It cannot be coincidence that actor Al Lettieri played the role of Frank Renda, Mafia hit man in Charles Bronson’s 1974 film “Mr. Majestyk.”  Near the end of the film Bronson was asked, “Where’s Renda?”  To which he replied, “he’s out back dead.”  Hopefully the moral of the story is that the good guys win in the end.  In the first year of Bush Senior’s term, he disbanded the Federal Strike Force Against Organized Crime.  I suggest that in order to do so, we need a different family holding Presidential office---one more similar to Madison, Jefferson and Jackson.  There was also the $285 million failure of Broward Federal Savings & Loan in Florida, which made a loan to Jeb Bush on which he defaulted!  More perversely, Jeb Bush was involved in the scenario leading up to the $1 billion failure of International Medical Centers, run by Miguel Recarey, associated with mob figure Santos Trafficante.  According to the Wall Street Journal, August 9, 1988, front page, money was---

“Drained out the back door and disappeared down a black hole.”

The Bush family has a lengthy history of dealing with the “right” people.  Samuel Prescott Bush (1863-1948), great grandfather of the current President, headed Buckeye Steel of Columbus, Ohio, 1906-1927, that made railroad pieces for the Union Pacific (Harrimans).  He joined the War Industries Board in 1918 and became associated with Pilgrims member Clarence Dillon, father of Pilgrims member Douglas Dillon, Treasury Secretary who assisted LBJ in taking America off silver coins.  Pilgrims member Percy Avery Rockefeller, known heavy holder of over 50 big corporations (copper mining; railroads; banking; insurance; agriculture; munitions; oil and gas; utilities; land), arranged for Sam Bush’s son Prescott to be inducted into Skull & Bones Society in 1916 (S.P. Bush 1863-1948) ---

According to Webster Tarpley in “George Bush---The Unauthorized Biography” found at www.tarpley.net/bush3.htm ---

“When George Bush was elected Vice President in 1980, Texas mystery man William Stamps Farish III took over management of all of George Bush's personal wealth in a `` blind trust. '' Known as one of the richest men in Texas, Will Farish keeps his business affairs under the most intense secrecy. Only the source of his immense wealth is known, not its employment.”

“Will Farish has long been Bush's closest friend and confidante. He is also the unique private host to Britain's Queen Elizabeth II: Farish owns and boards the studs which mate with the Queen's mares. That is her public rationale when she comes to America and stays in Farish's house. It is a vital link in the mind of our Anglophile President.”

President Bush nominated Farish as Ambassador to the United Kingdom for 2001-2004 and said---

"The special relationship that the United States shares with Great Britain will be further strengthened with Will Farish as my representative. Will understands the important place that Britain holds for the United States as a trusted ally and key trading partner. I have full confidence that he will serve our country well."

All U.S. Ambassadors to England are members of The Pilgrims world paper money mob!  Farish’s grandfather was president of Standard Oil of New Jersey, 1937-1942 (forerunner of ExxonMobil) and was a member of elitist clubs such as the River, Piping Rock and the Links, and founded the American Petroleum Institute.  Pilgrims member Farish III---

Current President Bush sold $828,560 of Harken Energy stock---100% of his holdings, in 1992, one week before poor quarterly earnings were posted.  The stock plummeted 60% in the next six months www.andrewtobias.com/newcolumns/001017.html Martha Stewart goes to jail for doing the same thing; Bush becomes President because his grandfather knew the Rockefellers and the Rothschilds.  It does not add up any other way!  As for kid brothers Neil and Jeb, Neil is working out of Austin, Texas (a state in which the Legislature just committed a 14th Amendment violation as of last September with respect to giving corrupt veterinarians “superior protection”) where he runs a software developer known as Ignite Incorporated.  Neil was permanently barred from banking activities (but not imprisoned) for his role in Silverado but they take care of him in other ways.  Ignite sells educational programs to children in Florida with the assistance of Governor Jeb Bush www.pamspaulding.com/weblog/2005/01/no-child-left-behind-bush-family.html

Conflict of interest?  It matters not at all!  The Florida Council of 100 is one of the elitist groups supporting Governor Bush, a state controlled by elitist entities since the days that the Flaglers (Standard Oil, Pilgrims) and Barron Collier (Pilgrims, largest landowner in Florida, founder of INTERPOL in Paris; Collier County is named for him).  Earlier, while current President Bush was Texas Governor www.bushwatch.com/bushmillions.html he made millions on deals connected to the Texas Rangers Baseball Team and The Ballpark at Arlington (taxpayer subsidized!)  George Bush Senior is connected to Barrick Gold Corporation, whose activities have been reported by Ted Butler in silver and Gold Anti-Trust Action Committee in gold www.conspiracyplanet.com/channel.cfm?channelid=39&contentid=210

Peter Munk of Barrick was associated with The Lord Black of Crossharbour (Conrad Black, likely Pilgrims member) and Pilgrims member Henry Kissinger on the board of media conglomerate Hollinger International.  Black is today widely known as the criminal who looted Hollinger of $400 million.  The Clinton Administration is said to have been staffed by over 400 members of the Council on Foreign Relations (public front for The Pilgrims organization, which has about 1 member to every 6 in CFR---700 and 4,200).  The Bush administration is alleged to have a similar number of CFR members www.infowars.com/print/Sept11/cfr_whitewash_commission.htm

Bush Senior was officially involved with Barrick Gold until 1997.  The whole cast of characters visible at Barrick over the years is alarming.  These are hooligans who philosophically speaking, cornered the market on sewing needles, then stuck every one of them into a bizarre voodoo kewpie doll, to “help” the gold price to not rise.  Mulroney once head of the Canadian government, while hundreds of tons of gold were dumped, is a Barrick personality; also J. Trevor Eyton, sometimes called Canada’s most powerful executive (nevertheless I’m relieved he isn’t managing any of the miners I invested in); and many others who could form the basis for another long review (including Brascan and the Rothschilds).  The interconnections even extend to Halliburton and Enron, The British Crown and some of its Pilgrims Society agents in Canada over the years---Sir Kenneth Keith of the Bank of Nova Scotia, Hill, Samuel & Company and Lord Shawcross of Friston (banking; investments; oil; gas; pharmaceuticals; ocean transportation; newspapers; insurance) who was British delegate to the U.N. Conference in 1945 at San Francisco---the British Empire’s continuing attempt at world colonialism.  This site has remarks---

www.mail-archive.com/ctrl@listserv.aol.com/msg82790.html

Being an organization heavy on bankers, Federal Reserve figures, investment dealers and economists, CFR is absolutely opposed to use of any precious metals as money.  George Bush Senior and Cheney have both served as CFR directors.  Senior was also a Trilateral Commission member---

www.reformed-theology.org/jbs/books/insiders/part_3.htm

Douglas J. Feith, Undersecretary for Policy, Department of Defense, was listed as an attendee at the 2004 Bilderberg conference in Italy www.bilderberg.org

Bush Senior (Pilgrims) is senior advisor to The Carlyle Group (some $14 billion in assets, defense related) and James Baker III (Pilgrims) former Treasury Secretary and Secretary of State is its senior counselor.  Review some of the Carlyle Group scandals at---

www.hereinreality.com/carlyle.html

Of Course the Bush administration is deeply associated with Halliburton and all its scandals and price gouging--- www.halliburtonwatch.org/

In earlier years various Pilgrims members--- coffee heiress Anne Armstrong, once Ambassador to Britain and claimant to the King Ranch, Armstrong Ranch and Exxon/Mobil fortunes; and William E. Simon, former Treasury Secretary who helped crush the Hunt silver play, were Halliburton directors.  Coming to Halliburton meetings in the 1980s was Lord Polwarth (dating from 1690, Pilgrims) of the Royal Bank of Scotland Group (over 100,000 employees)---

www.members.tripod.com/~american_almanac/tobacco.htm

Armstrong was on such boards as Boise Cascade; Braniff Airlines; General Motors; American Express; First City Bancorporation; and Union Carbide, Silver Users Association member.  The President appointed his relative, George Herbert Walker III as Ambassador to Hungary.  His son, Bush’s second cousin, G.H. Walker IV, is an executive with precious metals antagonist Goldman Sachs.  Robert A. Mosbacher was George Bush Senior’s Commerce Secretary, 1989-1992.  According to www.gomainst.com/houston/whoswho/history11hof.htm Mosbacher raised $75 million for the Bush campaign and was national finance chairman of George Bush (Senior) for President.  The site further mentions---

“His father was a wealthy stock trader who cashed in his holdings before Wall Street crashed, so the family did not suffer during the Depression.”

I haven’t located details on his father, but his older brother Emil was a member of The Pilgrims and a director of American Metal Climax; Chemical Bank; Federal Insurance; Vigilant Insurance; Chubb Corporation; Putnam Trust; Avon Products; Dollar Savings Bank; and Hoover Institution on War, Revolution and Peace.  Time magazine, July 21, 1967 said of Emil Mosbacher---

“Emil Mosbacher is not the sort of fellow anybody would invite into a friendly poker game.  Behind that genial grin are the instincts of a tiger shark.”

Emil was also a member of the Royal Corinthian Yacht Club in England, associating with his British Pilgrims friends there, and a member of the subversive Bohemian Club out of San Francisco.  Barbara Franklin of Dow Chemical, Silver Users Association members, succeeded Robert, probably also a Pilgrims member, as Commerce Secretary.  She was also Bush Junior’s national campaign co-chair.  Just think!  Bush Junior owes favors to a Silver Users Association company!  Robert Mosbacher has served since 1992 as chairman of the finance committee of the Republican National Committee and controls Mosbacher Energy, a petroleum and natural gas producer operating in the U.S., Peru, Canada and India---

 Mosbacher was also chairman of the Rockefeller aligned Council of the Americas and of the Mid-Continent Oil & Gas Association.  Also figuring into the Bush equation is the giant construction and engineering firm Bechtel Corporation.  www.democracyctr.org/bechtel/ has a report on Bechtel’s attempt to cartelize water supplies in Bolivia, jacking the price up so high that people had to go without food, nearly causing a national revolution in the process.  Bechtel appears to be part of the attempt by some multinationals to monopolize world fresh water supplies www.cooperativeresearch.org/ Bechtel was awarded a $680 million Iraq reconstruction project in April 2003.  George Pratt Shultz, Standard Oil fortune heir and one of the Pilgrims members associated with the warmongering Committee On The Present Danger, who was Reagan’s Secretary of State and now chairs the International Advisory Council of JPMorganChase, is a Bechtel director and a financial organizer for California Governor Schwarzenegger---

His father Birl was with American International Corporation, founded in 1915 by Pilgrims member Frank Vanderlip, one of the Jekyll Island, Georgia, Federal Reserve System planners.  AIC was infused with $50 million by such Pilgrims families as the Winthrops and Graces.

Shultz put out a book in 1966 titled, “Strategies for the Displaced Worker” and that’s bitterly hypocritical since Shultz is a Trilateral Commission member that has exported so many millions of American industrial jobs!  Riley Bechtel is also a Trilateral member.  Shultz was in on the decision to close the “gold window” in August 1971!  The Council on Foreign Relations is housed in the Pratt House---given by a maternal relation of Shultz!  I realize some of you reading this could be ardent Bush supporters.  There are such who would support him if he personally poked their eyeballs out---such is the irrationality of certain charisma.  In view of Bush’s background and associations I cannot predict any friendliness on his part towards silver investors---or gold either.

I am working on a proposal for April 2006 release here that is addressed to those who operate websites friendly to the long side of precious metals.  I have not seen this proposal mentioned anywhere to date.  I am convinced that this plan is not difficult to implement, yet can give us greatly increased political strength, for several reasons.  In view of the frightening composition of this excessively anti-silver administration, any additional strength we can muster could make the difference as to our holdings being extinguished versus burgeoning outwards and upwards into a monetary colossus able to restore America to sound currency.  This is provided that time remains, due to the storm clouds of war hovering over Iran!

I made reference in a 2005 article concerning a plan to shield our rights.  It was simple.  Get Congressmen and Senators interested in investing in precious metals and equities.  If they hold these we would be protected because the selfish gentlemen will protect themselves.  Jason Hommel implemented the concept.  Results are disappointing to mixed and uncertain.  The new plan is different but it would be a way to put pressure on Congress.  It has to do with attracting Mexican-Americans to the PM markets.  They must already be a presence there, but their presence should be expanded.  By so doing, we would expand the voter base opposing metals confiscation and attempts to stop us from benefiting by owning shares in extractive companies.  If Mexico attempted to nationalize or impose punitive taxation or royalties on companies operating there, the Mexican-Americans here would denounce it, because they send money back home to poorer relations.  It would truly give us increased protection.

In terms of confiscation, the principal question to be answered is “is there sufficient investor owned silver stored in Comex warehouses to form the basis of a military industrial silver stockpile to feed the Bush war machine?”  Yes I warn you if you hold silver there don’t figure to retain it.  Rumsfeld knows about it!  We know “they” don’t ever want silver to be used as money again, but no modern warfare can be prosecuted without high-tech silver usage.  

This is not about using an ethnic group, because they too would benefit by participation in sound money.  We need an editorial at Silver Investor (not lengthy like mine!) offered in Spanish translation, by Hugo Salinas-Price or other official of his Mexican silver organization “Plata,” explaining what they are working on in Mexico, and how the Mexican-Americans here could participate in a movement to restore precious metal as money across the CONTINENT, not Mexico only!  Salinas-Price has reached out to those to his South, including the Portuguese speakers of Brazil.  Mexican-Americans are the largest size ethnic group in the USA, have many affluent people at the top of their strata, and should be included in the movement.  Having said this much, I may need other subject material for April.

Who is still leasing silver today?  This dirty and intensely secretive affair was briefly interrupted in 1995, and panic nearly ensued.  According to the Wall Street Journal, August 14, 1995, page C-1--

“What’s afoot in the silver market?  That question is haunting precious metals traders in North America and Europe trying to figure out what’s behind last week’s surge in the cost to dealers and producers of hedging future production and sales of silver.  In only a few days, the “lease rate” (cost of borrowing the silver to sell forward, or hedge) soared from typical levels of 1% to a whopping 6% by Thursday, and in excess of 7% late Friday.  “I’ve never seen it go as nutty as this in the silver market,” said George Milling-Stanley, precious metals analyst at Lehman Brothers in New York, who has spent 20 years tracking gold and silver markets.  “IT WAS ALMOST IMPOSSIBLE TO GET ANYONE TO EVEN PROVIDE A QUOTE FOR SILVER LEASING, LET ALONE TALK ABOUT DOING A DEAL.  THERE AIN’T NO SILVER OUT THERE.”  The most important signal---that silver has become so scarce that it isn’t available to lend except at exorbitant rates.  “A lot of inventory in London has gone, and stocks in Zurich are low” said Jeff Christian, president of CPM Group.”

Notice the source within Lehman Brothers referred to a scarcity of silver!  This is the same Lehman Brothers we saw profiled at Silver Investor last December that came out and alleged the world was awash in 11 billion ounces of refined silver as of 1988 (“Nine Billion Ounces,” Archives).  Most likely what was taking place in this August 1995 story is that certain lease sources---central banks or treasuries---in Europe and elsewhere, perhaps the Philippines---were running low on silver.  The behind the scenes scramble was on to mobilize Red China into the silver leasing (dumping) game.  It truly appears that China could have been the last major source of lease silver, and that source is tapped out.

On the silver ETF topic, the kicker that the motives of those behind it cannot be trusted is that JPMorganChase is to be custodian of the bullion.  This is the bank that has often issued bearish price forecasts for silver---the bank that is riddled with executives and directors who are members of assorted paper money mob organizations.  The dominant stockholders of this bank are intermarried families back of the Federal Reserve who benefit from continued paper money creation and are opposed to gold and silver money!  As for Barclay’s, this is the leading British Empire bank and that Empire has fought use of silver as money literally for centuries (“The Greatest Right,” Archives).  Again the ETF cannot be trusted as Hommel also made an airtight case against it.  Hold your own silver is the best advice, preferably away from your residence but not at any bank!  In event of a Federally ordered bank freeze in response to a (manufactured) crisis, all safe deposit boxes will be looted of bullion before access is “normalized!”  If there is panic over an alleged intent to remove 130 million ounces from world stockpiles (is there really that much) imagine the added panic if a class-action lawsuit is launched against the Silver Users Association over their raids on the military defense silver bullion reserve we used to have.  Object of such lawsuit to be to force the SUA to restore what they took regardless of the expense and without taxpayer subsidies. 

What type statements will George Bush (Going Wild Bigtime) make concerning silver when the long anticipated explosion occurs?  Will he tell us that the silver supply was OK till Arab interests disrupted it (“Is The Silver Lie Ready,” Archives), or will it be partly Venezuela’s fault?  Will he explain to us how he regrets it necessary to strip us of all we have, for the higher good of the nation (his elitist friends)?  Will he tell us because Iran is a hostile power we must surrender our life’s savings?  Will he tell us how we have no strategic silver reserve (because it was gifted to his SUA friends at Dow Chemical) and therefore, that “silver hoarders are a threat to national security?”  Will we be told that use of gold and silver as money is a Federal crime, because “only terrorists, drug dealers and tax criminals use gold and silver?”  Will we be coercively reminded of the myth that functions as fact, namely, that Federal Reserve Notes are real money?  The nickname, “useless eaters,” used by Britain’s Prince Philip for 80% of the world’s population, should be “useless printers” for paper money of which he is part of the sponsorship.  A Third World War accompanied by viruses, famines, intentional sabotage of water supplies and plagues would be a useful way to eliminate the “useless eaters.”

1979 was the year silver really took off, leading to the all-time intra-day CBOT trading price of $52.50 per ounce in January 1980.  Things are far more critical this time!  There is far less silver available; depletion of worked-out mine sites and decline of production at existing mines; far more created currencies to chase it; resurgence of monetary demand; flight from stocks, bonds and real estate; emerging technologies dependant upon silver; key mining concerns are being bought by larger peers; Third World modernization; and an industrial users panic.  The Wall Street Journal, September 19, 1979, page 38, had comments that presage our impending crisis---

CHAOS HAS STRUCK THE SILVER MARKET.  The metal’s price has soared an unprecedented 75% since August 20.  Yesterday alone, prices gained 10.3% to close at $15.90 an ounce, up $1.65, a record daily increase.  “THE SITUATION IS MORE THAN CRITICAL” say one exchange director.  “THE MARKET IS OUT OF CONTROL,” says a trader at a leading precious metals concern.  “PEOPLE ARE REALLY GOING TO GET HURT.”

Glenn Ford starred in a 1970 film “Brotherhood of the Bell” (highly recommended) about a secret society based at a major university that inducted young men and gave them a mission later, in return for which they would be placed in positions of wealth and influence.  (LBJ’s son in law Charles Robb, former Governor and Senator, is a member of the Raven Society at the University of Virginia!)  Glenn Ford was given an assignment that resulted in the suicide of a notable professor from Eastern Europe. www.votefraud.org/News/2000/7/072800.html mentions the film has been the target of attempts at suppression.  When Glenn Ford’s father in law in the film ran afoul of the Brotherhood, it began to turn the screws on his corporation, whereupon he started beating the hell out of one of his peers in the organization, his son’s father in law.  The line he used while he was viciously pummeling one of the malefactors fits what the gold and silver short forces and paper money mob face today---

“I’M NOT TALKING ABOUT A BEATING, I’M TALKING ABOUT A KILLING!”

 


 

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