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Silver gold and Winchester blue David Bond Archives Editor, Silver Valley Mining Journal posted October 7, 2004 15:00 WUT Toronto, Ontario - A few of the millyings and the manyings (apologies to Russell Hoban and Riddley Walker) fetched up for Cambridge House's investment conference on natural resources at this most pleasant city's convention centre last weekend to purvey and peruse the latest moose pastures, and despite the underlying treachery of the pump-and-dump hucksters it was nonetheless a pleasant event. Toronto - or as we were brought up in British Columbia to pronounce it, Tahrantah - is our nomination for the continent's Most Agreeable City. Only in Tahrantah, oblivious as it is to the fads of the Lower 48 and the chowderheads of the Continent, have they managed to merge tourist traps with 5-star accommodations. Thus at the top of the CN Tower, on a day so clear that you could see Buffalo and the smokestacks of the Kodak Rochester Silver Destructory, and in the main-floor confines of a blithering Marriott Hotel at Eaton Centre, did we encounter 5-star feasts worthy of silver, gold and oil baronetcies. There is only one other JW's steakhouse on the planet, that being in Dubai, and we cannot imagine replicating such quality willy-nilly. Even Northwest Orient Airlines, which in our youth was the transport of Last Resort, to be used only in the event of a driver's strike upon the Greyhound Bus Lines, has sent its staff to charm school, yanked a few seat-rows out of its Airbus liners to extend leg-room, and actually seems willing to please its passengers. Last call for Douglas airliners, 9s and 10s, old but the best still flying. A drastic departure from the passenger-purloining depravities of United and Alaska, Northwest has become. If NWA were to re-introduce meal service and retain its present congenial staff and generous frequent flyer program, we would pass the hat dancing naked in the streets to protect it from its threatened business-as-usual legacy carrier bankruptcy. Meantime, in Tahrantah, the hucksters were on to their next pitch, Americans treading upon Wolf the Dauntless Hero's shores, no wonder they think we are bastards. We will not waste our web-host's bandwidth to repeat or repeal their latest predictions - we can only offer as investment advice that you research the madrigals of these madarins, go long immediately on their recommendations for a week or two, take out your cash, then short these same issues on a one-year bet. Profits from this double-ended trade will make richer and accrue quicker'n you can say Ivanhoe or Nevsun or Just Like Thom Thumb (Calandra?)'s Blues. Mining in Africa and Mongolia and Newfoundland is such a bummer. But catch our next PowerPoint show, to be sure and screw the little old ladies. Bitterness? Do we sound bitter? Only to the extent that as the last mad US dollar-swap for tangibles has begun and the musical chairs game around which we all circle is soon over with. And that a certain kind of fool is being led yet again to moose pastures with two promising drill intercepts, when the last tangible mining assets - Sterling, Shoshone Silver, Pan American, Silver Standard, Apex, Coeur, Canadian Zinc, Bunker Hill and Hecla and anyone else with proved-up silver properties - are right beneath our noses. Plagiarism, we have learned over a hard course of 30 years of newspaper reporting, is the sincerest form of theft. Herewith we plagiarise. We cannot, despite our best intentions, re-invent the wheel nor can we independently vouchsafe for all of its conclusions. Here's how it got to our desk. Robert Hopper, who owns the Bunker Hill Mine here in the Silver Valley, scoped it up from Steve Quayle. Quayle, on his website, www.stevequayle.com, scoped it from this guy. Bottom line is, Bush and the neocons have out-scammed even the Fed, which is no mean feat, and they're also hocked our silver and oil. Here is the gist: Al Martin, Retired US Navy Intelligence Bushonomics Explained (Part IV): Where Are the Mising Billions? On January 20th, 2005, when this regime ends its first term in office, it will have created aggregate budget deficits (including depletion of inherited surpluses) of some $1.5 trillion, an aggregate merchandise trade deficit of yet another $1.5 trillion, and an increase in total national debt of some $2 trillion, with the economic pressure being exerted, having been largely responsible for the 38% decline in the trade-weighted exchange value of the U.S. dollar..... Furthermore, the Bush-Cheney regime has now depleted all inherited accrued fiscal reserve balances, as well as all contingency reserve accounts of all federal agencies, such that the White House has direct control over some $56 billion in total. Also the White House unlawfully transferred to the U.S. Treasury's general operating account some $25 billion from the Federal Reserve, said sums constituting all of the Federal Reserve's operational account balances and its emergency dollar-stabilization fund, whereupon the sums in question were quickly depleted. This regime has also unlawfully sold some $5 billion worth of metals, minerals, fuels, fibers and food stuffs from the so-called national strategic stockpiles without the required congressional approval. And as we have previously reported, the Bush-Cheney regime has unlawfully drawn down since March 2001 some 2900 metric tons of gold (about $20 billion, using the average price of gold from 3/01 to present) from the national gold reserves and, in so doing, has broken the statutory reserve requirement holdings of 11,005 metric tons without the required congressional approval. Furthermore, as of June 2004, the regime has completely depleted the national silver reserves without prior consent of Congress, as is required by law. This regime has also now depleted what little remaining cash balances were left, some $13.6 billion, in the nation's 42 public trust funds, all in a desperate bid to raise revenue in order to hide the actual size of Bushonian budget deficits, the exact same form of BFLAP (Bushonian Fantasy Land Accounting Principles) that were employed from 1984-92 by the regimes then in power, who were equally desperate to hide the actual size of their budget deficits, the net result of which was to turn the United States from having been the largest creditor nation on the planet in 1983 into the largest debtor nation on the planet by 1992. Remember, in order to calculate the actual size of Bushonian budget deficits, now that the nation has gone from GAAP (Generally Accepted Accounting Principles) back to BFLAP, one must add to the stated annual budget deficits approximately $125 billion to account for the so-called annual Social Security surplus payments, which are, once again, being counted as general revenue instead of being used to service the Social Security accrued deficit created from 1984/92, now standing at some $5.3 trillion. One must also add to Bushonian budget deficits the $25 billion per year on average that this regime has pillaged from federal accrued and/or contingency accounts and transferred to the Treasury to be counted as general operating income. Thus, in GAAP terms, Bushonian budget deficits are actually approximately $150 billion a year more than that which has been stated. We should remember the comments of the General Accounting Office ( GAO) made in April 1993 regarding its 1981-92 audit review of the U.S. Treasury wherein the GAO made note of the fact that the actual size of U.S. budget deficits accrued during that period were underestimated by at least $4 trillion due to the substitution of GAAP with BFLAP, a new form of accounting principles, which allowed red ink to magically be turned into black ink. Former Treasury Secretary Paul O'Neill made public comments regarding the so-called "trillions in secret debt" having been issued under the Reagan-Bush and subsequent Bush-Quayle regimes. Where are we going? The GAO, as we have previously reported, announced in its so-called "end of sheet" comments to its 2003 consolidated audit of U.S. government fiscal operations that the budget and trade deficits being accrued by the policies of the current regime were consuming 78.4% of the entire planet's net savings rate, a figure that has now grown to 81.3%, in order to finance U.S. debt. The GAO also noted that should the current regime remain in office for a second term and its policies of "politically popular but wasteful defense spending" (remember the 2003 GAO audit of the Department of Defense, wherein the GAO disclosed that some 62% of all weapon systems in U.S. military inventories either didn't work, did not perform to specifications, or were otherwise faulty) along with its encouragement of negative debt finance consumption and continuous proffering disproportional tax cuts (the aforementioned being the three pillars upon which rest the concept of Bushonomics) were to persist, then, by the second quarter of 2009, the U.S. would no longer be able to service its debt in that the economies of the rest of the planet could not generate sufficient capital in the form of savings for the U.S. to borrow in order to finance its debt. This would leave the U.S. with three options: A/ to dramatically increase the rate of domestic taxation to relieve borrowing pressure on the rest of the planet's money; (Remember Secretary O'Neill's comments about the need of a 65% marginal federal income tax rate by 2010 should the Bush-Cheney Regime remain in office for a second term.) B/ a massive monetization of debt by dramatically cheapening the dollar; (Remember Senator Warren Rudman's {R-NH} comments about a "10-cent dollar" should the scourge of Bushonomics continue.) C/ the declaration of a "force majeure" on U.S. debt service, which would be tantamount to a repudiation, and interpreted as such in the global financial marketplaces. (Remember the Bank of International Settlements' comments on this possibility, wherein the BIS stated that should the U.S. adopt this course, its economy would collapse in five days and the global economy five days after that.) Indeed, should the current regime remain in power, the economic outlook for both the United States and the world remains bleak. (Editor's Note: Al Martin Raw.com subscribers who are interested in more proactive measures to protect themselves and their assets are encouraged to subscribe to Insider Intelligence, which has Al Martin as its Chief Technical Advisor. Click here for more information). Hmmmmmmmmmmmmmmm This is not to say that the same would not have been said of the Klintonistas, had they remained in power for 12 or 16 years longer. Behind the Monican stained blue dress was the spectre of Marc Rich and the Metal Men, who invented the art of stealing and were showered with accolades and pardons for their efforts. As our good friend David Morgan was heard to say in Tahrantah, the American election on November 2 will be a matter of determining who is skipper of the Titanic after she hit the iceberg. The sad and sorry thing to deduce is that the closer the Titanic gets to the berg, the better it is for silver. Let us draw a small map of connectable dots. Bill Murphy and Ted Butler are gnawing away at what they know is a cancer, but they don't ever seem to discover its root. Obviously, to both of them, someone in power is working to suppress the price of silver and gold in order to suppress public knowledge of the dollar's precarious position. But who? Could it be our own government? Even our cab-driver in Tahrantah, one Joe Joseph, a Lebanese Christian, a refugee from the civil/secular strife there, without prompting had it figured out: the price of silver and gold is constant; only the fiat currency fluctuates. So with our last gold ounce we bought an Armani suit, headed for the airport, headed west into volcano country, thanking our lucky stars that we had escaped the hucksters who only took our dollars and didn't want our silver. And for a limited time only, soon set to expire, this offer will be continued. The fools actually will take our paper for silver. Lunge at this opportunity as if it were a new chance at life. Because it is. Not for long will unlimited paper chase tangible assets and successfully procure them. Silver is not a get rich quick scheme. It is a preserve your wealth scheme. Think Chinese. Or just take Bob Dylan's parabolic wisdom in Absolutely Sweet Marie to heart: "The six white horses that you did promise "Were finally delivered down at the penitentiary. "For to live outside the law you must be honest. "I know you always say that you agree. "So where are you tonight, Sweet Marie?" Oct 7, 2004 David Bond Archives Editor: Silver Valley Mining Journal David Bond covers gold and silver mining equities for a number of national and international publishers, including Platts Metals Week, a division of McGraw-Hill. He lives in Wallace, Idaho, heart of the planet's richest silver fields, the Coeur d'Alene Mining District. He is former editor of the Wallace Miner, and holds regional and national firsts in investigative journalism from the Atlantic City Press Club (National Headliner) and from the Society of Professional Journalists (SDX/SPJ) and has edited or written for newspapers on both coasts, Canada and Alaska. ________________ 321gold Inc