Nibbling at the Edges of the Power Structure
Nibbling at the Edges of the Power Structure
Bron Suchecki
September 29, 2008
I have called Professor Antal Fekete’s monetary recommendations a “Prosperity System” because they seek to maximize economic well-being given the mental constraints of human nature and the physical limits of Mother nature. In his insightful critique, Mr. Suchecki puts a finger directly on the very core of the Professor’s approach and crystallizes many of the reasons why I personally came to believe — but only after reading the Professor’s works — that monetary gold (and silver) lies at the very heart of the redemption of civilization. Here are some excerpts from Mr. Suchecki:
Scanning my bookcases my eye fell on two books: one I have read - Paul Hawken?s The Ecology of Commerce (1993) ? and one I have only skimmed but been meaning to read - Lewis Mumford?s The Myth of the Machine: The Pentagon of Power (1970). What these two books share with Antal?s work is a strong moral sense, specifically that there is something wrong with the way society works, and a focus on making it better. The best gold advocates (I prefer this term instead of ?goldbugs?, which implies emotional irrationality) I feel have this moral element to their work. It takes the form of a belief that fiat currencies, which lack any limits, are detrimental to society. This concept of limits also appears in Paul?s, Lewis? and Antal?s work.
. . .
A key aspect of Antal?s work is the power that physical gold money gives the consumer, the average person, over the monetary system. Without the ability to redeem gold, without the ability to hoard gold, there can be no control on power: ?When a currency is redeemable in standard gold coins, any individual disturbed by the behaviour of the government or banks can attempt to protect himself by presenting for redemption such paper currency as he may command. It is this power of individuals that holds, or tends to hold, banks and government in check.?
. . .
I cannot think of a better description than ?animated individual minds … nibbling at the edges of the power structure? for what gold advocates are all about.
Tom along this line, we always talk about a gold standard, but what about going to a silver standard and the price of gold float? I know the US was founded on a silver standard and it seems more ‘common man’ kind of currency, is there enough silver to have a standard like what your thinking about instead of gold, or is there just not enough of it to go around?
You know I’ve always thought of silver for the people and gold for kings…
Just like 3/17, the Fed gives JPM a big bank, and the “Big Short” crushes silver.
yeah Mark….I would imagine as Jim Sinclair posted on his website that $600 Billion was injected by the FED just this Monday….this would certainly be good AMMUNITION to SHORT GOLD and SILVER and the STOCKS.
Silver down 12%….Gold down 4.5%…AEM: Agnico Eagle one of the GOLD BELLWEATHERS down 12%….jeeesh….this really SMACKS of MANIPULATION.
Jim Willie added this on his article today:
This from a friend in Seattle: ?I was talking to my neighbor last night. He is in finance in the county government, King County (Seattle). He said there are some very secretive budget talks being held, very hush, hush. Apparently, the county has lost around $200 million of taxpayer money in toxic paper investments, with huge implications on the budget. He says he is not privy to the details, but he is taking a 10-day vacation starting today, because he has nothing to do since everything is in flux.?
This from a friend in Atlanta with strong banking connections: ?Reliable word that Bank of America branch managers just received a letter or memo from the USFed instructing them to perhaps be ready for a one-week universal shut-down of the banking system, including access to checking accounts, savings accounts and credit cards. Reliable word has it that BofA bank branches received a shipment of signs last week, reading ?WE’RE SORRY, BUT DUE TO CIRCUMSTANCES BEYOND OUR CONTROL, WE CANNOT BE OPEN AT THIS TIME.?
These are interesting times.
worldskipper: I don’t believe enough silver could be collected by government to support a fixed standard (there is less silver in bar form in available stockpiles than there is gold, and given the exchange ratio of gold and silver, even if it was 15-1, that would not be a lot of “money”). You will recall that the U.S. went off the gold standard in 1971 because it was in danger of losing all the Treasury gold to redemptions. I believe the only thing that will work at this point is to re-institute the anti-gold and (anti-silver) clause in contracts so that people will be forced to used Treasury-issued gold and silver certificates (which they would receive in exchange for turning in gold and silver) in legally enforceable contracts. Yes I know it is ugly but the alternative is a full-out confiscation or worse.
mark: This is why I asked, “Is There Danger?” Nobody really saw it but clearly it was there.
SRSRocco: I tend to give some credence to the King County story as I am aware of similar situations elsewhere. It is much more than “toxic paper”, this is part of the lockup of credit markets that has Paulson, Bernanke and some Congressmen who have cared to look around so scared. As for the banking rumor, I don’t believe that because based on my knowledge of how banking administration actually works, this is not the way they would do it. Basically, it would be a need-to-know basis only and they would only send letters, start making signs, etc. the night before the actual bank holiday. Also, they would never ever shut down the credit card system because it would destroy the U.S. economy. So, this is just rumor and quite a bad one at that.
A rumor is all that is necessary for people to act. A bank run is a panic, and if the rumor reaches enough people, even if there is nothing substantial behind it, that will be enough.
No crying if you can’t withdraw your FRNs. I have cancelled my direct deposit. The convenience is not worth the risk, even if it is a 1% chance.
These are the most unstable of times. Time to stop relying on and trusting so much those who are stealing my FRNs. Best to be out ahead of the curve, IMHO.
Tinfoil hat firmly placed on top of head. Laugh if you must.
Down 11% today. It would serve the manipulators right, if there was a run on 1000 oz bars, the only from of retail/wholesale silver around. Once those are gone….
Obviously the goal of the JPM and Barclays is to shake loose the silver in SLV, through a capitulation sale. I hope they fail, and are crushed by the attempt. If it works, I’ll be crushed.
tzo, not laughing here — there are times when tinfoil hats are more or less useful, this is perhaps one of them.
My checking pays no interest, so the cash in hand “insurance” costs me nonething. I’ll just pay cash for stuff till the storm clears. Way too many dark clouds out there not to be safe !
I think that what you will see is that the entire net short position of silver on the COMEX is concentrated at one player, JPM.
Any commercial seller would be out of his mind to be forced to sell physical silver at these too low prices and therefore may not have any outstanding short positions. The next COMEX report will tell all.
Everything is down…except the dollar. Are these deflationists right?
“Investors should make sure to buy the precious metal in physical form, Marc Faber says, not through gold funds.”