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Year
End Silver update
Copyright December 2002 Charles
Savoie
The long anticipated
rise in silver prices, like planting an acorn and waiting for the
resulting tree to become tall and big enough to build a tree house in,
appears very close to happening. CFTC Commissioner Thomas Erickson
resigned effective December 1; Harvey Pitt of the Securities Exchange
Commission left office under fire, and on December 6, Treasury Secretary
Paul O’ Neill announced his resignation. Perhaps these departures have
to do with desire on their part to distance themselves from the nearing
firestorm in financial and commodities markets.
Mention has been made about O’ Neill being the third Treasury Secretary
contributed by the Mellon family. However, Alan Greenspan of the Federal
Reserve was the Alcoa director in the mid 1980’s who recruited O’ Neill
to serve as Alcoa chairman (Bloomberg News, December 7). Alcoa is a
Mellon dominated company, so it could be that Greenspan is also the
Mellon’s way of controlling the Federal Reserve. The guesswork on which
of the wealthy families is currently in control of this or that office
is interesting, but the effects on the public are the same---transfer of
wealth to the old rich. Greenspan was also a J.P. Morgan & Company
director and of Mobil, a unit of the old Rockefeller Standard Oil Trust.
On Capitol Hill, the money powers are scrambling to ease their liability
as their metals and other derivatives disintegrate. Elected
representatives are scrambling to accommodate them at taxpayer expense.
To these Congressmen and Senators I use a line from Alan Ladd’s 1958
film, “The Proud Rebel,”
“Aw, get away from me, you lousy coward!”
INDIA---URGENT UPDATE
In Urgent Warning To India, I pointed out the risks to India should the
Silver Users Association somehow succeed in looting India of her silver.
I view this as a possible, but unlikely, event. Those lessons are
learned best which are accompanied by the most suffering, and few
countries have suffered as India has. There is a clear intent on the
part of the Silver Users Association to divest Indians of their silver,
and to do so at prices as low as possible. Ever since its founding as an
abomination in 1947---ironically, the same year India gained
independence from Great Britain, the Silver Users Association members
have been possessed of a crazed, fixated, near demon-possessed mania to
access silver held by governments at give away rates. It was apparently
founded specifically to gain access to the United States strategic
silver stockpile, at the close of WWII, easily the largest hoard of
silver in history. As we are aware, this stockpile ceased existence over
a year ago, and because of derivatives, without a price increase.
Apparently foreseeing the eventual demise of the U.S. stockpile,
so-called bullion and investment banks with which Silver Users
Association companies share interlocking boards of directors, contrived
silver leasing around 1982, by which silver held by many central banks
around the world has been accessed at give away rates. As Butler noted,
it is impossible to return this metal because of the giant growth in
demand. A consensus of intuition exists among metals bulls that leasing
of silver is over, or very soon to be, as supplies are exhausted.
This being the case, coupled with the fact of India being the last great
storehouse of above ground silver in the world, the Silver Users
Association, due to its obsessively driven compulsion to access silver
at theft prices, appears to have taken aim at India. They expect by some
means to pressure India to hemorrhage (bleed) silver---to be starved of
their silver---so they can continue to get silver for $4.50 per ounce.
Not only is this a spoiled brat attitude on their part, it is a great
danger, economically and militarily, to India. At westburymetals.com,
volume 1 number 1 of “The Silver Lining,” (no date, but apparently from
1997 or 1998) we read---
“Silver Users To Urge India To Permit Silver Exports. Washington D.C.
November 2--The Silver Users Association (SUA) may seek international
support from silver users and producers to permit Indian exports of
silver bullion. This project was introduced at a recent association
meeting by SUA executive vice president Walter Frankland. With nearly
ten years of draw downs from above ground silver stocks to meet
industrial demand, Frankland said, these stocks are getting smaller
worldwide. The country with the largest above ground silver stocks is
India, he added, where latest reports estimate a minimum of 3.3 billion
ounces, is privately held—mainly in jewelry, tableware and artifacts.”
“Current laws there prevent the free flow of the bullion from India,
Frankland continued. Eventually it is expected that those laws will be
amended to allow the Indian people to enjoy benefits from their silver
assets as silver market economics change in their favor. Frankland
explained further that in the meantime, in order to avoid extended
periods of market volatility, there could be a role for the association
in conjunction with international using and producing companies, SUA
might stimulate sufficient interest in the project to encourage more
access to silver in India sooner rather than later. SUA will gather
additional information for consideration by its board prior to its
annual meeting next May.”
This is the same Walter Frankland who went to Treasury Secretary G.
William Miller in fall 1979 pleading with him to dump 40 million ounces
of silver so the Hunt-Arab silver play could be squashed. Frankland has
been an archenemy of silver miners making profits for many years, and
when he sees a one-cent up tick in silver, it probably hurts him like
razor blades and ice picks going through a normal person. There can be
no doubt---the Silver Users Association is chasing India’s silver so
they can continue getting silver for under $5 per ounce, and the devil
take the consequences to India if they allow this rip-off to be
accomplished.
At the close of WWII the U.S. had something like 20 ounces of silver to
correspond to every resident, now the U.S. stockpile stands at zero due
to Silver Users Association leeches, ticks and vampires bleeding it dry.
With world central bank silver gone, India is now in their appalling
sights. They speak of recruiting international participants to bring
pressure to change Indian laws so that Indians “can enjoy benefits from
their silver.” HUH? So they can be drained of silver (“as silver market
economics change in their favor”) ---what does this mean, that SUA will
offer Indians $5 instead of $4.50/ounce, after which they cannot enjoy
an increase in their standard of living without paying at least ten
times as much to replace the silver if they lose it to proposed SUA
rip-offs?
Frankland spoke of avoiding extended periods of market
volatility---meaning higher prices, and now defrauding India is the best
bet for them to accomplish what they want. Notice he also mentioned
producers---the stupid miners who have leased silver and are on a hook
to return it, and who may still have hedging problems. So here’s the
Silver Users Association position clarified---they don’t care that the
U.S. is militarily at risk due to their rip-off of the stockpile, they
don’t care about damage done to taxpayers, they now intend the same
venomous consequences to India, and have formed an alliance and a plan
to squeeze India dry of her silver, then cast her adrift!
Time Magazine, December 2, 2002, page 55, mentioned Naina Lal Kidwai,
managing director of HSBC India, as saying she wants to “help open its
economy to the world,” you can interpret this as “she wants to open
India’s silver to the Silver Users Association,” as HSBC is a member!
She also wants to be on “the cutting edge of reform, the ability to
influence.” HA! As noted in “Urgent Warning to India,” this was
Britain’s opium finance house for Asia. Profits up to 60,000% were made
during the spice trade in nutmeg; maybe the opium trade was as
profitable. Funny how people who think they are entitled to such robust
profits, conversely feel that silver producers, and silver owners, are
only deserving of receiving profitless prices for silver, whereas they
as users are entitled to profit. To drain India of her silver for theft
prices is inverse to the situation of the British forcing Chinese to
become opium addicts. Both are rip-offs; one forced a poison into a
nation, the other proposes to remove a vital substance from a nation!
The Silver Users Association attitude towards India’s silver could be
likened to the bad man in “Hombre” (1967) who intimidated others to get
what he wanted---
“You got a ticket for that stage out front? Well that’s it! You can give
me your ticket and you can stay here!”
CFTC AND SILVER USERS ASSOCIATION
As detailed in “Commodity Futures Treacherous Collusion” (see archives)
last September, the Silver Users Association and bullion banks
apparently are in collusion with the CFTC to hold silver prices low.
Having created the definition of reality that no rigging of silver
prices exists save to the upside, they act or fail to act accordingly.
CFTC commissioner Brooksely Born, on October 28, 1998, said,
“I am pleased to be asked to speak today to members of the Silver Users
Association, having represented a client in the cases and investigations
relating to the 1980 manipulation of the world silver market by the Hunt
brothers and others, and I continue to have a special interest in the
silver market.”
Her bias is so obvious---no silver manipulation exists except with
rising prices, and may silver miners be damned. Walter Frankland said
something along these lines (“The Silver Lining” volume 2, number 1),
“The supply picture for those promoting silver as an investment is so
often one of impending shortages while in fact, large quantities of
silver remain above ground.”
Of course he could only be referring to India, a large animal to be bled
to death by Frankland’s silver using leeches, ticks and vampires.
Frankland must be getting up in years, and on the day silver prices rise
and it becomes clear India refuses to dump silver, it might put him in
his grave. Or he could have a movie line thrown at him from Chuck Norris
film “The Octagon” (1980) ---“I still say he looks like the constipated
type.” If he has any silver amalgam fillings, I trust he has willed them
to Dow Union Carbide. CFTC Commissioner Thomas J. Erickson, on October
18, 2000, made the following remarks to the Silver Users Association---
“I was pleased to accept Walter Frankland’s invitation to speak with
members of the Silver Users Association. I would like to share with you
my personal observations on the derivatives markets and their
regulation. The good news for you as end users is unprecedented access
to information, intermediaries and, increasingly, to the market itself.
Derivatives market participants are part of a dynamic market whose
financial and technological innovation continues to expand expectations.
Has the case been made that some commodities are less susceptible to
manipulation than others? What role should federal regulators have in
these markets? As market users, the way the questions are answered may
have profound effects on the way you do business. I have read the Silver
Users Association’s letter commenting on the Commission’s regulatory
proposal, so I know you are both concerned and engaged, and commend you
for your interest.”
Another rubber-stamping CFTC commissioner for the shorts and users is
nothing new. Buffett is said to have called derivatives “financial
sewage.” Interesting how Erickson resigned from the CFTC four and a half
months before his term was due to expire---maybe he wants to be
elsewhere when the silver situation unravels. He joined food
multinational Bunge Corporation (24,000 employees, founded 1818) as V.P.
of government affairs. Tom Daschle, Democrat Senator from South Dakota
who placed Erickson in the CFTC, has accepted PAC funds from such silver
manipulators as New York Mercantile Exchange (COMEX), Goldman Sachs
Group and Fleet Boston (Silver Users Association).
THE COMEX ZONE (KILLING SILVER PRICES)
The Comex Zone is a land of both shadow and substance, of things real
and imagined---you’ve just stepped into---the Comex Zone! This is a
paraphrase to Rod Serling’s famous “Twilight Zone” TV series (early
1960’s). The Las Vegas Review Journal, February 5, 1998, quoted Edgar
Smith, general manager of Couer Rochester mine near Lovelock, Nevada, as
saying---
“We’ve seen a drop in inventory and demand outstripping supply for a
long time, but silver stayed below $5 an ounce. It didn’t add up.”
No, it didn’t add up, till you read Butler’s articles on leasing and
naked short selling. It all parallels the Silver Users Association
fixation to get silver forever at under $5 per ounce, while making
shipwrecks of miners and entire nations. On February 8, 1998, an
Associated Press release entitled, “Big Surge in Silver PricesIsn’t
Worrying Users---Yet,” quoted Walter Frankland of SUA as exclaiming,
“When volatility hits the marketplace, it just disrupts everything. It’s
certainly not in the best interest of consumers in the long run.”
What is, in Frankland’s view, in the best interests of consumers? To
hold the price of silver so low for so many years, and to exhaust all
known stockpiles, while suppressing mining, so that at last a severe
long term shortage takes place? You, Mr. Frankland, are an idiot---you
have succeeded in cutting off your members from reliable supplies of
silver, and I scoff at your being able to get much silver from India at
any price. India owes big time payback to Dow Union Carbide for the
Bhopal disaster, and can best retaliate by denial of pressure for
exporting silver. India as a whole owes big time retaliation against
Britain and America for centuries of exploitation, and for opposing
efforts at Indian self-preservation against China and Pakistan by having
nuclear capability.
As India witnesses the start of the great silver crisis in the West, she
will fully realize how critically important it is to retain all her
silver for modernization and defense applications. As for China, if it
has indeed dumped quantities of silver to help the SUA, my belief is
there could only be one inducement for China, in addition to Most
Favored Nation trade status---and that is, transfer of missile
technology (see archives, “Is Wo Fat Dumping Chinese Silver?”)
Frankland speaks of the best interests of consumers with sought after
perpetual low silver prices. But consumers are also TAXPAYERS, Mr.
Frankland, and your organization should have to pay for replacing the
national strategic stockpile that you depleted. Remember, no silver is
mined in the Comex Zone. That is only the site where silver has been
artificially cursed with low prices, bringing on the approaching
unserviceable deficit. String pullers in the Comex Zone can attempt to
say the fair market price of silver is under $4.50 per ounce, but as the
deficit becomes unserviceable, the marketplace will be forced to ignore
those derivative views. Frankland and his association and their buddies
in the Comex Zone will soon hear from India and unhedged silver
companies---
“LEAVE US ALONE; CAN’T YOU SEE WE’RE BUSY?”
As India wisely refuses to give away its silver, what is the next major
source? Since SUA is mainly concerned with above ground metal because it
can be accessed faster, expect them to unleash all the interrelated PAC
money necessary to have Congress enact theft legislation to steal silver
from investors. Expect them to ask Bush to issue an Executive Order to
force Americans to sell silver for $5 per ounce. I advise you, when the
first big surge in prices hits, as a cautionary measure, sell enough
physical silver and mining shares to recover your original funds, at
least protect your capital. From a financial perspective, we are dealing
with personalities similar to the drug lord Ramon Cota in “Delta Force
II” (1990) who said---
“My men are professionals---now, even the children will die!”
In the long run the unhedged silver equities will hold the whip hand
over SUA because most of their holdings are outside the U.S., and U.S.
holdings of Canadian companies cannot be easily nationalized without
retaliation from this crucial trading partner. If a Federal price cap or
nationalization of silver occurs, we must launch a class action suit
against the Silver Users Association. Included in such a suit would be
the discovery process detailing links of men like Leland Ira Doan (Dow
Chemical), Lammot Du Pont Copeland (Du Pont), Birny Mason Jr. (Union
Carbide) and Kodak directors to British Empire activities undermining
American sovereignty via membership in concealed organizations. As SUA
finds that the flow of low priced silver is over and they must do what
any normal organization does---simply pass the cost along to
consumers---let them consider as their new motto the line from “The Day
The Earth Stood Still” (1951) ---
“You see the electricity has been neutralized---all over the world.”
For electricity read, “low priced silver"."
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