our financial house of cards and how to start, page-12

BuyandHold ... I used the word CONSPIRACY THEORISTS ... whether or not you subscribe to the theory is your call (I personally think that it is entirely plausible) ... if you want to check out the background, subscribe to lemetropolecafe and do your own research ... there's 8 yeas of data there. Also, a Credit Agricole analyst came out with the same conclusion a year or two back.

In a nutshell, the theory is that the CB's have leased gold to bullion banks at extremely low rates. The bullion banks have then sold that gold into the market and invested the proceeds into other revenue earning activities. The CB's do not report leased gold separately to physical stocks, so it is suggested that their actual inventories are around 50% of that which is reported. Nobody knows for sure as physical gold stocks are unaudited (I don't think there has been a Fort Knox audit in decades). Think about it ... CB's earn some interest on "dead stock", the bullion banks are making a fortune by selling and re-investing and the gold price is controlled. It's like a Gold Carry Trade.

The original piece was a theoretical proposition supporting a call for $12,700 an ounce gold price ... I have expanded on that by saying that it could be $25,000 an ounce if you subscribe to GATA's theories. BUT it all JUST THAT .. theories. NOBODY knows what is really going down, GATA may be right or gold may tank tomorrow or be $3,000 an ounce by the end of the year.

Here's something else to wrap your chops around (on the subject of conspiracy theories) ... this is doing the rounds on the internet at the moment (I am highly suspicious of this though).

THE SPECIAL "CLOSED SESSION" OF THE U.S. HOUSE OF REPRESENTATIVES DISCUSSED A LOT MORE THAN THE PENDING SECURITY SURVEILLANCE PROVISIONS

Last night's session was only the fourth time in 176 years that Congress has closed it's doors to the public.

Word has begun leaking from last nights special, closed-door session of the United States House of Representatives.

Not only did members discuss new surveillance provisions as was the publicly stated reason for the closed door session, they also discussed:

1. the imminent collapse of the U.S. economy to occur by September 2008,

2. the imminent collapse of US federal government finances by February 2009,

3. the possibility of Civil War inside the USA as a result of the collapse,

4. advance round-ups of "insurgent U.S. citizens" likely to move against the government,

5. The detention of those rounded-up at "REX 84" camps constructed throughout the USA,

6. the possibility of retaliation against members of Congress for the collapses,

7. the location of "safe facilities" for members of Congress and their families to reside during expected massive civil unrest

8. the necessary and unavoidable merger of the United States with Canada (for its natural resources) and with Mexico (for its cheap labor pool),

9. the issuance of a new currency - THE AMERO - for all three nations as the proposed solution to the coming economic armageddon.

Members of Congress were FORBIDDEN to reveal what was discussed and ABC News via WCPO web site at the link below CONFIRMS congress members were FORBIDDEN to talk about it!

Several are so furious and concerned about the future of the country, they have begun leaking info. More details coming later today and over the weekend.