Gold And The Oil Majors Revisited
November 30, 2009 by goldguru · Leave a Comment
By Trace Mayer, GoldSeek
The ‘gold bugs’ assert that at all times and in all circumstances gold remains money. For some irrational reason the ‘paper bugs’ cling to their increasingly worthless colored coupons asserting their importance as currency.
The Great Credit Contraction has begun and in the macro sense there is no practical solution to the end of the current worldwide monetary system. But in the micro sense the individuals and companies that will survive, thrive and prosper will be those that are liquid. It will be those who can make payroll.
Buy “The Great Credit Contraction” eBook
GOLD IS MONEY AND CURRENCY
On May 20, 1999, Alan Greenspan testified before Congress, “Gold is always accepted and is the ultimate means of payment and is perceived to be an element of stability in the currency and in the ultimate value of the currency and that historically has always been the reason why governments hold gold.”
For these reasons gold, silver and platinum belong in the cash portion of the balance sheet. The precious metals are the ultimate form of currency. Unlike their comptition, the colored coupons, the precious metals can never become worthless, are always accepted and are the ultimate means of payment.
The ‘gold bugs’ will always be able to purchase something while the ‘paper bugs’, if they have physical notes and not mere digits in a database, are eventually left with an instrument that only has a single use after defecation. What intrinsic value!
GOLD ANTI-TRUST ACTION COMMITTEE
During the 1990’s Mr. Rubin had devised the gold leasing scheme with the intent being elucidated by Dr. Greenspan’s testimony in 1998, “Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready tolease gold in increasing quantities should the price rise.”
GATA’s alleged central bank gold price suppression scheme may include the COMEX’s participation. Mr. Robert Landis, a graduate of Princeton University, Harvard Law School and member of the New York Bar, has asserted that “Any rational person who continues to dispute the existence of the rig after exposure to the evidence is either in denial or is complicit.”
GATA alleges that the central banks have less than half the physical gold claimed. The central banks carry gold in the vault and gold out on loan as the same line item. In effect, they report cash and accounts receivables as the same thing. Ever tried making payroll with an accounts receivable?
Read more….