the web debt

The Money Masters�

We first posted this article on 13th August 2007 when it appeared to us that the
US Dollar along with the economy was heading into such dangerous waters that gold
would be the beneficiary. At the time gold was trading at around $670/oz and it
closed yesterday at $834.80 for a gain of $164.80 or 24%.

If we fast forward to time now and read any newspaper the headlines are dominated
with the fire fighting actions being implemented by the Federal Reserve with
bankers and politicians in tow. From these bailouts we can only conclude that the
dilution of paper money will continue with the pace of dilution accelerating,
resulting in massive inflation and propelling the precious metals to higher
ground. If you have the time, please read this article and then take a look at
what�s happening around you and then find the time to question what you are doing
and why you are doing it. Being too busy to organise your own affairs is a poor
excuse. Just switch the television off for a couple of nights and clear your head,
the way forward for you personally will become apparent.

The Federal Reserve: The Greatest Scam In History?

13th August 2007

The Federal Reserve was created in 1913-1914 in order to bring stability to the
economy and yet almost every major crash, including the great depression, can be
attributed to the Federal Reserve.

We are going to take a look at the history of the Fed and what prominent
historical figures have said about the organisation.

Firstly, from 1837-1862 there was a system of national banks in the USA but then
in 1913-1914 a consortium of 12 privately held banks got together and formed the
Federal Reserve Bank, an entity that is not part of the US government. These banks
then purchased notes from the US Mint for printing costs and lent them out through
member banks charging interest.

The Federal Reserve came into being after its supporters paid for the Presidential
campaign of US President Woodrow Wilson. Wilson signed the bill that transferred
the US currency to twelve regional private banks Wilson regretted his decision
later saying:

�I am a most unhappy man. I have unwittingly ruined my country. A great industrial

nation is controlled by its system of credit. Our system of credit is
concentrated. The growth of the nation, therefore, and all our activities are in
the hands of a few men. We have come to be one of the worst ruled, one of the most
completely controlled and dominated governments in the civilized world. No longer
a government by free opinion, no longer a government by conviction and the vote of
the majority, but a government by the opinion and duress of a small group of
dominant men.�

In 1933 President Roosevelt confiscated citizens gold and handed it to the Federal
Reserve. At the very moment when Americans have needed to protect their wealth the
most, the best store of wealth ever created, gold, was confiscated from American
citizens and given to a un-elected conglomerate of private banks.

When the bill for the Federal Reserve was being considered, some brave politicians
spoke out against its creation calling it �the strangest, most dangerous advantage
ever placed in the hands of a special privilege class by any Government that ever
existed� and Congressman Victor Murdock said, �I do not blind myself to the fact
that this measure will not be effectual as a remedy for a great national evil �
the concentrated control of credit.�

It even appears that one of the most important and most respected figures in
American history disagrees with the Federal Reserve saying, �If the American
people ever allow private banks to control the issue of their currency, first by
inflation and then by deflation, the banks and corporations that will grow up
around them will deprive the people of all property until their children wake up
homeless on the continent their fathers conquered.�

Jefferson also said, �I sincerely believe the banking institutions having the
issuing power of money are more dangerous to liberty than standing armies�
�Paper is poverty� it is only the ghost of money, and not money itself.�

The Federal Reserve make no secret about the scam they are running as the Boston
section of the Federal Reserve Bank said:
�When you or I write a check there must be sufficient funds in our account to
cover the cheque, but when the Federal Reserve writes a check there is no bank
deposit on which that cheque is drawn. When the Federal Reserve writes a cheque,
it is creating money.�

Perhaps the Fed can create money, but we strongly believe that wealth cannot be
created. Wealth is simply transferred, it is not created and we challenge anyone
to prove otherwise. The only time wealth was created was when the world was
created, with all its resources, true wealth. So why hasn�t the Federal Reserve
been disbanded?

Well as the Rothschild Brothers of London said in 1863; �The few who understand
the system, will either be so interested from it�s profits or so dependant on it�s
favours, that there will be no opposition from that class.�

The great Henry Ford once said �It is well enough that people of the nation do not
understand our banking and monetary system, for if they did, I believe there would
be a revolution before tomorrow morning.�

The problem is, very few people understand the system at all. It is not taught in
schools and even some of the most prominent financial analysts and fund managers
really have no idea how the system works. They tend to define inflation as rising
prices when in fact inflation occurs because of the expansion of the money supply.
Or even link inflation with the economy doing well, saying, �we should raise
interest rates as the economy did extremely well this month and we don�t want
inflation getting out of hand�, or words to that effect.

What all people, not just investors, need to understand is that paper money is
worthless. Gold and precious metals are the real money, the real wealth that
cannot be created like its paper ghost
44 Comments � Great article today, you have hit the nail square on the head, the
legalised transfer of wealth has been going on for quite a while, at last more and
more people are catching on, hopefully these crooks will be put where they belong,
but I�m not holding my breath, after all, they run the world.

Comment by G.M. � October 4, 2008 @ 1:42 pm

Federal Reserve article - an excellent piece of work. And terrifying!

Keep up the good work, mon Brave!

Frank

Comment by Frank � October 4, 2008 @ 1:45 pm

The problem is that the Fed is so powerful, they can do the same thing today -
confiscate most of the gold for themselves as they did when FDR did it for them in
1933. Until the Den of Vipers known as the Creature from Jekyl Island has it�s
ugly head cut off, we live at their mercy.

Comment by Cosmic � October 4, 2008 @ 4:42 pm

REVOLUTION is the Solution!!!

Comment by George W.armonger � October 4, 2008 @ 5:20 pm

Gold may be a good store to retain value for your personal money�but it is a
terrible source for a nation�s money. There is not enough gold in the world to
carry on business�nor is there enough silver!

In addition, who do you think owns most of those two commodities? Who do you think
owns the oil and the uranium mines for nuclear reactors/bombs? Who owns the
newspapers and tv shows that most people watch?

Fiat money has worked very well for us in the past�look at Lincoln�s Greenback!
Read �The Web of Debt� by Ellen Brown. Check out the use of Tally Sticks as money!
This notion that gold is somehow better than a judiciously created fiat money is
simply WRONG! Indeed, the Constitution originally made silver our paper
backing�NOT gold!

The people pushing gold and silver are trying to sell everyone their gold and
silver�if it was so valuable, why don�t they keep it themselves? Why are they
trying to sell it to anyone who comes down the pike?

Jerry Bolduc

Comment by Jerry Bolduc � October 4, 2008 @ 5:34 pm

See the video �The Money Masters� in video.google.com for a good explanation on
the biggest scam (well, actually one of many scams).

Spread the word and help bring change.

See EricHufschmid.net for real info.

Comment by Mario � October 4, 2008 @ 5:54 pm

Its all very well saying gold stores value etc but Im at the stage of packing it
al in as gold, silver producers and even the metals are so heavily manipulated
will thay ever get the chance to rise??????
Why gold isnt at least $2000 per oz right now says it all and Silver at $12 and
going down????

Whats the point anymore the FED wont ever allow it to rise too much.

Only thing I can think of is a war as a market crash will just drags them down
like AIG, LEH on steroids

Any suggestions?

Comment by doug reid � October 4, 2008 @ 6:09 pm

Actually the greatest scam is getting the masses to fight over the different trees
in the forest of evil. The fed is bad, but so is 911, chemtrails, all organized
religion, mass media, weather manipulation, war, war on terror, war on drugs. The
fed is only one tree in the vast forest. As long as the masses keep their eyes on
the �different� trees the elite will continue to win. The only real war is the
elite against the masses. Fortunately for the elite the masses are fighting each
other.

Comment by Chi0ne1 � October 4, 2008 @ 7:58 pm

Aye aye�here you have the MAJOR root of the evil amongst us in our financial
system. For those who want to read more about where the Fed came from and who it
bows to, read this timeline for a thumbnai� fascinating, and yes, scary�

http://www.iamthewitness.com/DarylBradfordSmith_Rothschild.htm

Comment by jt � October 4, 2008 @ 9:05 pm

I�m not sure who you are and I�m not sure how I got on your email list but I just
wanted to say thanks. I enjoy reading your emails and find them very informative.
I also like the fact that you seem to subscribe to the �work like dog� theory. In
other words, it seems like you are no stranger to hard work. Keep up the good
work.

Regards,

George
Comment by George � October 4, 2008 @ 9:27 pm

Gold has been money for 5000 years. Your views and opinions on how its not a store
of wealth or the Govt may confiscate it is ludicrous and maybe its you tryin to
get people to sell there honest money. First of all in 1933 by executive order
Gold coins and certificate�s were illegal to own. Most did not carry gold in there
pocket by then it was mostly paper currency backed by gold for one thing. Any gold
coins were deemed collectibles. As is the $20ST GAUDENS gold coin , which by the
way your going to wish you had a gazillion of these in the near future. Gold went
from $35 to $75 in 4 days the ones who benefited were the foreigners who held
them. A windfall over night. So it was a gold crisis then during the Great
Depression. In 1971 Nixon reneged on the GOLD standard and told the foregner�s to
shove it. Another Gold crisis ensued. By the end of the 80�s We saw gold rise more
2000% in the best 10year bull market ever second to oil at 1800%. Today we have
derivatives standing at $1 quadrillion , geek creations on a computer with no
worth when asked to perform in a bankruptcy. GOLD will makes its stand again. My
friend since the early 80�s Govt mints have encouraged there citizen�s to buy
GOLD. We will not be fooled again by these pranksters they will have a riot on
there hands. Gold will be your only lifeboat in a world awashed in paper confetti.

BJS

Comment by GOLDBUG � October 4, 2008 @ 10:14 pm

I sold all my gold stocks today. I�ve read a lot this weekend about the M3 money
supply and the economy from Januari 2009 and am concluding that gold won�t rally
alot in 2009.
After the interbanking confidence is restored in end of 2009/1010, then we will
see money flow back into the system. Do not forget that a big stream of money is
vaporized from the markets. This recovery of equity takes time to flow back into
the markets, also gold.

Very important parameters;

1. Gold was and will be sold steadily on the world markets by Central banks to
support the US Dollar by means of currency swaps.
2. Global economy is contracting. USA in recession, 2nd largest economy Germany
facing growth declines and possible recession aswell as many others in Europe.
Asia demand in commodities is also lower but economies remain growing. China 7 - 9
procent in 2009.
3. 2009 will be the year of writedowns in my opinion. More banks will fail, 118
more potentials are on the FDIC list, and lots of US homeowners will have to
refinance their mortgage (again) and many of them will fail to do so because of
new regulations.

Good investing. I�ll be back in gold for over a year or so.

ps; 19 october - black monday 1987. Keep it positive

Comment by de Graaf � October 4, 2008 @ 11:42 pm

Liquidity can never and has never in all of history been drained from any sytem of
fiat currency. ALL HAVE RETURNED TO ZERO. The USD dollar will trade much lower and
GOLD much higher. The OTC derivatives will make sure of that. You forget my friend
that all of Europe and Asia know the store of value GOLD holds in a world of paper
manufacturers. How is it that the cash market for GOLD is tight as a banjo string?
The Comex price is fabrication beyond your imagination. GOLD is the smallest
market in the world being played by the biggest money in the world. Look at the
last 10 years GOLD to world currencies ratio chart at KITCO.com. Maybe you will
see the light to your ever ending liquidity and low rates to borrow into the
ionisphere.

Comment by GOLDBUG � October 5, 2008 @ 12:10 am

You have some good points. I agree.

The question for you is; When will the US currency slide deeper to zero�think
about that. US dollar is being backed to save the economic system.
My believe, which I shared with you above, is that the �Gold rush� is postponed
while the M3 money supply is contracting for the time being. Gold will come, no
doubt. Question is�when. My analysis says not in 2008 and probably 2009/2010. The
long term, yes. short term, no.
Hey, but I could also be deadwrong here. So decide for yourself what you do.

I�m selling gold for now, and risk the timing of the coming gold rally some point
later. There are more opportunities in the shorter term in my opinion.

Value investor.

Comment by de Graaf � October 5, 2008 @ 1:11 am

Anyone who still is arguing inflation does not have clue.

You can create as much money as you want. But if you cannot get at the money it
does no good. This moeny is going into deleveraging banks. And Banks are not
lending it out to people. That is deflationary!

rg

Comment by RG � October 5, 2008 @ 2:26 am

I�m fully with RG.

Its hard for people to acknowledge that we are in a deflationary picture here. The
US government denies it, and is (arguably) manipulating the inflation and M3
numbers. M3 is not even shown anymore to cover up the real situation of the US
economy. Its really bad people.
Bernanke tries to avoid the deflationary period of the 1930�s (his academic
lifetime dedication) by creating inflation with taxpayers dollars flooding into
the markets.
Situation is definately different that the 1930�s. My guess its even worse.
Unprecedented.

If US consumer spending drops more, prices will fall due to competition. Then
commodities prices fall even more and confidence drops to almost zero.

I�m keeping my eyes out for the time being. This is just the beginning of a this
credit crisis in my view.
I hope i�m not to cynical here. We need to have confidence.. haha Thats were our
stock market rallies on, eventually.

regards,

Comment by de Graaf � October 5, 2008 @ 2:45 am

To the forest metaphor guy: The fed is the entity that maintains the existence of
the forest so long as the consensus of mankind is to believe that the dream of
this world is real. In the interest of educating your fellow humanity there are
two main roads to consider. One, is to orchestrate a mass appeal to the U.S.
Congress to abolish the fed and return to Constitutional money. That�s a big
longshot seeing that you would have to go through a ruling body whose majority is
probably never gonna see �the forest for the trees�. Two, is to become a true
agent of change by opening eyes to the scam with the goal being one of non-
compliance to the sucking beast. Render it irrelevant as it withers and dies on
the vine. Then watch as the world awakens from its nightmare and sees the
illusions that it�s been all along.

Comment by Brownhawk � October 5, 2008 @ 12:50 pm

I read the article about the federal reserve with great interest.I encourage
people to buy gold,maybe 5% to 10% of their portfolio�s value as insurance for the
long term.The time to buy would be when the price of gold has fallen.The
fundamental reasons why we need to protect ourselves have not changed and have
gotten worse.The federal reserve is responsible for the destruction of our
currency by the creation of paper money.This massive creation,as we are seeing now
with these government(taxpayer)bailouts will surely dilute the value of the
dollar.The way to protect oneself is through the possession of gold and silver,as
these will rise in value as the dollar is destroyed by the federal reserve.As one
of your commentators has stated,the federal reserve is a major root of the
problem.This huge mess is of their creation in part,but the taxpayer will be
paying the price.One way to look at federal reserve activity is that of the theft
of one�s labor(whether that labor is physical or intellectual)by diminishing the
value of the money that has already been paid to you by creating more paper money
and putting it into the economy.

Comment by ADW � October 5, 2008 @ 4:48 pm

The right to create money was usurped from the people (Congress) in 1913, and The
Fed was born. A corporation owned by a consortium of banks with mainly Rothschild
and Morgan foundations, which to this day, still creates money and lends to the US
Government, charging interest. As you say, the perfect scam.
JFK signed an Executive Order, disbanding the Fed in, I think, 1957. He was
assassinated within months and LBJ rescinded the order. When will america wake up?

Comment by JCT � October 5, 2008 @ 8:32 pm

YO!!! I ACCEPT YOUR CHALLENGE!!!

�we strongly believe that wealth cannot be created. Wealth is simply transferred,
it is not created and we challenge anyone to prove otherwise.�

Wealth CAN be created, is created all the time, not just transferred, which also
happens all the time. LABOR CREATES WEALTH. This fundamental fact of life is what
allowed the slave holders to become wealthy. The labor of the slaves created
wealth for the slave owners. Today�s system is only much more complex and slightly
more egalitarian.

EVERYONE needs to understand these things. Perhaps the time is ripe for a major
shift in understanding� You cannot eat money, or gold, or silver. It will not keep
you warm or quench your thirst. These things have EXCHANGE value, not USE value.
SURPLUS value is the worth of something produced that the producer is not
compensated for. For example, if I do labor that generates $10 of exchange value
and I am only paid $1 for it, then whoever is paying me has made a PROFIT of $9.
They have, in effect, stolen $9 from me, for the privilege of allowing me to make
$1.
Labor should control capital/money/wealth, not the other way around. Allowing
capital to control labor is like allowing a child to order a parent around. The
parent produces the child as a worker produces capital. To then have the child
tell the parent what to do is the hight of absurdity. Until the workers own and
control the means of production, we will have disaster.

Eliminate profit by everyone getting paid what they are worth and you eliminate
corporations, which is the whole idea. It�s not that corporations are inherently
bad, Lincoln just screwed up big time by allowing them �person status�.

At this stage of the game, our problems are, unfortunately, MUCH bigger than just
that. We�ve also got depleted resources and environmental destruction to contend
with, along with over population and under education and a host of other
considerations. But wide spread understanding the above is likely a REQUIRED FIRST
STEP to solving anything.

Comment by Michael Cook � October 6, 2008 @ 9:52 am

Funny how people want to hoard gold�when the shit hits the fan..you don�t need
gold..you need food, clothing, and shelter�when you�re hungry and cold you�ll
gladly give all your gold away for 1 loaf of bread to feed your family�or just a
few logs of wood to heat your house�or how about just a roll of toilet paper???
Learn how to grow your own food..how to chop wood for a fire�how to skin an animal
for something to wear..and most importantly how to shoot the other jerkoffs who
try to take your stash because they don�t have basic survival skills..

Comment by Kevin C � October 6, 2008 @ 3:18 pm

�The bank hath benefit of interest on moneys which it creates out of nothing.�
William Patterson, Founder of the Bank of England, 1694

�Thus, our national circulating medium is now at the mercy of loan transactions of
banks,
which lend, not money, but promises to supply money they do not possess.�
Irving Fisher, U.S. Economist

�Some people think the Federal Reserve Banks are United States government
institutions, they are not government institutions, they are private credit
monopolies.�
United States Congressional Record, 11 May, 1972.

�I am afraid that ordinary citizens will not like to be told that the banks can,
and do, create and destroy money, and they who control the credit
of the nation direct the policy of governments.�
Reginald McKenna, Chairman of Midland Bank of London

�Banks lend by creating credit. They create the means of payment out of nothing.�
Ralph M. Hawtery, Former Secretary of the British Treasury

�Of course, banks do not really pay out loans from the money they receive as
deposits. If they did this, no additional money would be created. What they do
when they make loans is to accept promissory notes in exchange for credits to the
borrowers� transaction accounts. Loans (assets) and deposits (liabilities) both
rise by the same amount.�
Modern Money Mechanics, Chicago Federal Reserve

�The modern banking system manufactures money out of nothing. The process is
perhaps
the most astounding piece of sleight of hand that was ever invented.�
Major L. L. B. Angus

�Commercial banks create checkbook money whenever they grant a loan, simply by
adding
new deposit dollars in accounts on their books in exchange for a borrower�s IOU.�
Modern Money Mechanics, Federal Reserve Bank of Chicago, page 19.

�By a continuing process of inflation, they can confiscate, secretly and

unobserved, the wealth of citizens� and not one man in a million will detect the
theft.�
John Maynard Keynes, Father of �Keynesian Economics�

�The process by which banks create money is so simple that the mind is repelled.�
John Kenneth Galbraith, Money: Whence it came, Where it Went, page 29.

�Every effort has been made by the Federal Reserve Board to conceal its powers,
but the truth is the Federal Reserve System has usurped the government. It
controls everything in congress and it controls all our foreign relations. It
makes and breaks governments at will.�
Louis McFadden, Chairman of the House Committee on Banking and Currency

�The commercial banks and the Federal Reserve create all the money of this nation,
and its people pay interest on every dollar of that newly created money.
Private banks exercise unconstitutionally, immorally, and ridiculously,
the power to tax the people, for every newly created dollar dilutes
to some extent the value of every other dollar already in circulation.�
U.S. Congressman Jerry Voorhis

�When you or I write a check there must be sufficient funds in our account to
cover the check, but when the Federal Reserve writes a check there is no bank
deposit on which that check is drawn. When the Federal Reserve writes a check, it
is creating money.�
Putting it Simply, Boston Federal Reserve Bank

�The regional Federal Reserve banks are not government agencies, but are
independent,
privately owned and locally controlled corporations.�
Lewis vs. United States, 9th Circuit Court, 1982

�All the perplexities, confusions, and distresses in America arise, not from
defects in the Constitution or confederation, not from want of honor or virtue, as
much as from
downright ignorance of the nature of coin, credit, and circulation.�
John Quincy Adams, Sixth President of the United States

�The eyes of our citizens are not sufficiently open to the true cause of our
distress.
They ascribe them to everything but their true cause: the banking system�
a system which if it could do good in any form is yet so certain of leading to
abuse
as to be utterly incompatible with the public safety and prosperity.�
Thomas Jefferson, Third President of the United States

�You are a den of vipers and thieves. If the American people only understood the
rank injustice of our money and banking system, there would be a revolution before
morning.�
Andrew Jackson, Seventh President of the United States
Comment by namerequired � October 6, 2008 @ 4:52 pm

For the people who want to get acquainted with money master manipulation, please
view the following video.
http://video.google.com/videoplay?docid=-515319560256183936
Its a 300 year manipulation span. View this 3.5 hours video and you will have a
different view on the world economy.

After this you should watch: www.iamthewitness.com

It gives you a (long) article about the Jewish Rothschilds family who can partly
be held responsible (in my viewpoint) for all the mayhem in the world today,
especially in the Middle East.

Money remains Power.

Comment by de Graaf � October 6, 2008 @ 8:30 pm

Team, Thanks for all your input, it is very much appreciated by us. Please keep it
up!

Comment by Gold Prices � October 6, 2008 @ 10:12 pm

The Fed article was good. I assume most of the people reading your column know
about the Fed scam anyway, but it never hurts to keep putting the truth out there
repetitively. The mass media uses repitition to condition the masses to buy beer,
or whatever else they want to do. Corporations would not pay one million dollars
per minute for commercial time during football games if commercial advertising
wasn�t persuasive.

The definitive book on the Fed is Secrets of the Federal Reserve by Eustace
Mullins. Many other books on the Fed are plagiarized from this book. For those
interested in the Fed, this book is a must read.

Without the creation of the Federal Reserve banks in 1913, America could not have
funded and would not have entered World War One. The Federal Reserve bank regions
supercede state boundaries, and so set up a supernational government in the United
States. In the 1800�s this was referred to as the Invisible Money Power. We have
not had Constitutional government in America since 1913.

Comment by Anon � October 6, 2008 @ 10:14 pm

A great piece usa money has no value it is a ghost thanks to the FED. In fact
before the gold was stolen from the USA and new money notes were created if you
had any money before 1933 it says redeamable by gold coins. Now its just legal
tender which makes it just worthless paper

Comment by Mike � October 8, 2008 @ 1:38 am

Economics 101= Monetary Inflation = Price Inflation regardless of business

conditions. For the things you need each and every day like food, energy &
shelter(Most will have to rent). You can�t live on laptops, cell phones and big
screen tv�s. Yes I agree that many will hoard GOLD and if things get really bad
yes maybe even toilet paper will have its worth but in all of history GOLD is real
money and those that survived these INFLATIONARY times held GOLD. So stock up on
toilet paper all you want but long before you get to that point, if ever, GOLD
will be the ultimate currency of choice. Its been that way for over 5000 years.
Nothing�s changed. We the People just forget.
Comment by GOLDBUG � October 8, 2008 @ 7:56 pm

I guess that no one will get way down here to read this post but here goes anyway.

One of the things that has me deeply troubled regarding owning gold is the
enormous effect that gold ETF�s have had on the available inventory. It is
reported by suppliers that there is a shortage and a time delay on purchases which
I believe is caused by the ETF paper trades. Bear in mind that the reverse is true
also.

I would love to hear what others think and have to say about the gold ETF
situation.

John

Comment by John Ell � October 9, 2008 @ 3:34 pm

Hi John, don�t worry� your being read

Regarding your question; I was reading about Rediff Gold ETF�s who�s custodian is
the Bank of Nova Scotia. They are the largest player in ETF�s today I believe.

quote:
The launch of gold ETFs has widened the range of asset classes offered by mutual
funds� However, there are certain issues that investors must keep in mind while
doing so. Liquidity may become an issue for small investors who want to exit,
especially in times of crisis.
Finding buyers at a fair price in the markets may become a problem if you need to
convert to money.

Redeeming units directly from the fund may not be an option available. Again,
during periods of financial crisis like hyperinflation or failure of banks, the
large investors may convert paper holdings to physical gold. Small investors who
do not have this option may be left holding illiquid paper. In such a situation,
gold loses its edge as a store of value.

On the returns front, while gold ETFs can add lustre over smaller periods, the
returns they generate in the long term are not very encouraging. Entry loads and
fund management costs further reduce returns. You could consider buying the units
in the secondary market, where brokerage costs may be lower than the applicable
entry load.

Hope that answers your question in part.

Comment by de Graaf � October 9, 2008 @ 4:09 pm

Christopher Laird, editor in chief of prudentsquirrel.com newsletter once said:

quote: - People want to buy gold through an ETF but really they are forgoing what
the actual issue of gold is about and that is physical possession of bullion, and
not paper claims!
If liquidity were to dry up, there will be a great temptation on the part of ETF
principals to come up with ways to take new money but somehow create a claim on
some gold somewhere, thereby creating yet another layer between you and the gold.
- end quote.

The creation of layers is also referred to as �leverage�. Read more about this ETF
collapse with REFCO based in NYC in 2005.
Also read this:
http://www.gold-eagle.com/editorials_05/laird010606.html

Comment by de Graaf � October 9, 2008 @ 4:42 pm

Just a note about ETF�s. They are not a security and are treated differently when
it comes to tax time. Also read your prospectus carefully to make sure they do not
LEND the GOLD out. It�s like shooting yourself in the head as I see it. Your
trying to invest in this thing and at the same time they lend it out so others can
short it in the paper market. I would suggest having a look at the Canadian
Central Gold trust and Silver trust which has been around for over 40 years. Its
sold as a security and only holds gold and silver bullion in it�s vault and by its
charter is never lent out to no one. GTU & CEF are the symbols. ETF�s have been a
great help in some cases as they have been competition to the CB�s selling. One
more comment about CB selling. Do you ever ask yourself who they sell the GOLD to.
TRY themsleves. Like CHINA,INDIA,ARGENTINIA AND THE GULF STATES, RUSSIA HAVE BEEN
BUYERS OF GOLD NOT SELLERS. THE RECENT CB AGREEMENT IS SET TO EXPIRE SOON AND THEY
HAVE SOLD WAY LESS GOLD THAN THEY WERE ALLOWED TO. GOLD WILL BE $1250 AND $1650
AND THE USD WILL GO MUCH MUCH LOWER as we are the manufacturers of over 90% of the
credit default swaps totalling $62 trillion which there is no market never will be
WORTHLESS. GOT GOLD? ITS REAL MONEY not those gazillion precious dollars out
there.

Comment by GOLDBUG � October 9, 2008 @ 4:47 pm

Thank you to all who responded with great information about my concern with the
ETF situation. There is a lot to think about and I guess that no one really knows
for sure until the time comes, just how this new market entity will affect the
performance of gold.
John

Comment by John Ell � October 10, 2008 @ 2:33 pm

In much the same way as a matador uses the red cape in order to distract the Miura
bull, the financial powers use events like 911 and Mumbai to distract the masses
from the real issues. The two pieces of legislation that have done more to bring
this Country to its knees than anything else, have been The Federal Reserve Act
and the Personal federal income tax. Two of the most important components of a
free society are the system of taxation and the money supply. Unfortuneately, most
Americans are unaware that in 1913, we granted the exclusive franchise rights to a
private group of banks(Federal Reserve) to issue our money and control its value.
Jefferson warned against a direct tax on wages.He felt it would be more dangerous
than a foreign standing army in our streets. America was designed to operate on
monies collected from duties, imposts and excise taxes. Never was there to be a
tax on wages unless the Country was faced with a catastrophic event and in that
case it would be apportioned. If we needed 1 million dollars, each citizen would
put up an equal share on a weekly basis so that the citizens would feel the true
pinch of an event like the Iraq war that is costing our citizens $100 million
per/day. No deficit financing which softens the blunt force of this kind of
wasteful spending.Nothing is a greater threat to freedom than a tax on wages.
Americans know intimate details about important matters like Britney Spears,Paris
Hilton,American Idol, Terrell Owens, dancing with the cars�stars, etc.Wake up
America, Rome was an empire too!

Comment by gary kaposta � December 2, 2008 @ 7:11 pm

We should all realize that other than getting something off of our respective
chests, all this rhetoric accomplishes very little. After all, what can we really
do about this increasingly destructive course that we are following, except to
vote which we did and look at the results now, and in the past.

Fundamentally, the mass population will not react or respond until they realize
that they are threatened and in imminent danger. In a word it is apathy.
Governments know this and use it to their advantage and against the people.

JL

Comment by John Ell � December 2, 2008 @ 11:01 pm

Does anyone have any thoughts on President Kennedy�s Executive Order 11110? He
wanted to start stripping the powwers of the Fed by issuing almost $5 billion of
silver certificates. In my opinion, if Congress would abolish the Fed, he was
going to make its survival very difficult with this silver backed competing
currency.

Thanks

Sam

Comment by sam Barbary � February 1, 2009 @ 2:23 am

The constitutional militia(approx. 200 divisions of armed patriots) will take care
of this problem. Hoo ra !

Comment by Al Wallace � February 2, 2009 @ 12:28 am

G.M. wrote: � � I�m not holding my breath, after all, [these crooks] run the
world.� (I�m assuming that he/she is referring to the Fed or central banks in
general.) So, if they do run the world�what are you going to do about it?

Comment by D.H. � February 2, 2009 @ 3:25 am

Isn�t this great now that the paper money is no longer good that we all shall use
Gold. The only problem I have is to what standard will the Gold be supporting.
Since Paper Currency is no longer of value How shall I scrape the exact amount of
gold off my gold coin or bullion to buy a loaf of bread etc., And who will be the
judge in weighing it out. There will be so few with gold coin and such who will be
able to barter? Is it the Fed who will be setting the gold standard as they did
the paper standard? They set standards for themselves and not the people. They are
the only ones with any rights all because our congress/senate is lacking in morals
and ethics. Can you believe me them guys that don�t pay their taxes will be out
tax bosses to make sure we do. The Elite are above the rules they make until they
get caught then then it is only just a small mistake, sorry. I won�t be surprised
if the Bankers, Treasury and Fed say �unless you have this type of Gold� yours
won�t count. We need real leadership to take the reins and I don�t see it
happening. We don�t need the Fed a private bank to control our wealth. We should
be doing that ourselves. We need to make congress and the senate do the work they
were elected for and not pass (farm) out the work to others. This scenario must be
put to bed at the next election, a candidate for the people and not for the Elite.

Comment by John Schifano � February 2, 2009 @ 3:42 am

At some point just prior to the revolution of the American 13 colonies, Ben
Franklin was asked by the British how is was that the Colonies were doing so well?
Apparently Franklin had drunk just enough alcohol to not think before he answered�
He told the truth. American was doing so well because they had their own money. It
was called �colonial script�� King George immediately made colonial script
illegal. Certainly this pissed a few people off.
The right to create money is not owned by the Fed, the government or anyone else�
It belongs to who ever wants to collaborate. Money is worth what ever is
acceptable by those who play with it. The sovereignty of the American citizen was
given by the kings of Spain, France and England� We are Sovereign. Therefore, we
do not need someone outside of us to stipulate worth or value. We can decide and
create our own currency. Now for those of you in the markets of wall street, well�
you play, you pay. The idea I am passing along will not work for you until some
time has passed. So, get out of the �game�� Make your �living� through labor, or
barter face to face� Wall street will fail in time of real crisis� Therefore, I am
suggesting the bottom is yet to be found.
Currency by itself has no value� much like. you have no authority over me, except
that which I give you. The same is true of money. What are pennies to you may be a
gold mine to me. We are letting the elite set our standards� what foolishness. It
is suggested that following the fall of the Nazi�s a wheel barrow of German Marks
would maybe buy a loaf of bread in Germany. Money has only the worth we as a
society put on it and we may find ourselves very soon in much smaller societies
that we can imagine now. Colonial script sounds mighty fine to me.

Comment by Kelley Elkins � February 2, 2009 @ 3:43 pm

Lets not leave out the most important info of all. The Rothschilds nee mayer
implemented this system in 1694 with the creation of the BoE and to this day own
and operate the FED on their usual franchise arrangement with the rockefellers as
the franchisees and minority owners in the US and Kanada.

Comment by bonanzaman � February 2, 2009 @ 4:12 pm

OK, so everyone got everything off their respective minds. Having said it all, the
question remains��..WHAT DO WE DO ABOUT IT??? The ballot obviously doesn�t work
per the last election. Do we �take up arms against a sea of trouble and by
opposing, end them�?

Hardly. So what is the answer? Anybody!

John

Comment by John Ell � February 3, 2009 @ 7:00 pm

John,

Democracy sucks, but it the best system we have found so far.

We could hope for a benevolent dictator, but that�s like buying a lottery ticket
and hoping for a big win and it also brings with it its own scary possibilities

You could consider internationalizing yourself � property in one country, money in

another and your carcass somewhere else!

This morning we met with an old Buddie who described his early life as growing up
in some of the hell holes in Africa. He went on to be very successful in the
financial city of London. Today he said something that stuck with us; Tourists are
treated better then nationals in just about every country he has lived, no
taxation, no conscription to armed forces etc.

Not the answer that you wanted but just maybe we need to be a little more mobile.
Comment by Gold Prices � February 5, 2009 @ 1:01 am

This article disingenuously omits facts and glosses over important events while
purporting to inform. It also is SO WRONG about paper money. What was true
workable in the distant past is no longer because of the increase in population
and the advent of commercially available electricity which destroyed the self-
sufficiency and commercial viability of local farming. Added to that is the fact
that in the past people could homestead land without purchase but after
electricity came into wide-spread usage the growing population of the cities had
to borrow to purchase lodging. Owning a home required(s) a mortgage and that is
where the monetary system becomes confusing.
Paper, today, DOES HAVE VALUE, due to the borrowers promise to pay. Gold and/or
Silver will not work today for one reason at least: the private lenders of paper
money would be the same private lenders of Gold and Silver.
The problem is the private ownership �taking interest�; where does the �interest
money� come from when all created money is principle money. Interest can ONLY come
from someone else�s principle money. Therefore there will always be a system of
�musical chairs� going on with the losers being foreclosed on.
Besides, government money �borrowed into existence� is not backed by tangible
assets paid for over time as is the private sector borrowed money and therefore
dilutes the value of money-also known as Inflation.
There is a plan that will fix all this but the shills and Powers That Be (PTB)
won�t have any of that. The plan eliminates ALL taxation by, among other things,
taking over the Federal Reserve and stripping Congress of several powers; namely,
deciding from where its funding comes and how much it will get to spend.