Great Post by Green Lantern on a main blog thread:
2500 years of economic history of monetary systems yields one undisputable conclusion-markets are manipulated, they have always been manipulated and will continue to be manipulated until the system collapses.
Kublai Khan-The George Bush of Asia- he was a pretty mean guy this Mr. Khan. He wanted many things for his goverment including other people's property and their resources. he also wanted gold and silver very badly. So he created a legal tender law, anyone who refused to take the paper money was punished. Like any bully, you do what he says or get your head chopped off. A legal tender law is a form of manipulation. What happens to the real money gold and silver? it gets' collected by the government and hoardes it in it's central banks.
The Fall of Rome-The people were so pissed about the raising of taxes the roman government had to come up with a different solution so they started counterfeiting. Well, they hadn't invented the printing press 20 centuries ago so they made phoney coins. The goverment would shave the edges off. The shavings were used to mint new coins. you have the shaved coins and the new coins. We now have inflation. But unlike the stupid Americans, the romans realized that their coins were too small and light because silver was missing. They began refusing to accept the clipped coins. If you look at modern coins, you'll notice they have a wreathing. This is so nobody can shave a coin. Instead, we just use cheap earth metals and back it by the legal tender act.
Egypt-The system of gold as a storehouse of value was introduced in Egypt, later to be replaced by a convenient method used to symbolize the gold. In this instance, the symbolic form was the abundant stone scarabs found throughout the culture. The scarabs became bearer instruments instead of having to carry around the heavy metal. A bearer instrument means that whomever “bears” the symbolic form (has it in his possession), in this case the stone scarab, can go to the treasury storehouse where the real valued item is kept in safe keeping, in this instance the gold, and demand the proper amount of gold in exchange for the monetary unit of value.
Once confidence is established in this system and the people become lazy in expecting that they can bring their gold to the treasury, receive the stone scarabs in return, and know they can always get the gold back when they want to exchange for it, they will soon fall asleep and simply continue to trade the stone scarabs and not worry about exchanging for the gold.
There has not been one great civilization, the Greeks, the Romans, French, British etc... that didn't decline and collapse after it debased it's money. This is true because of something known as Gresham's Law;
Gresham's law is an economic principle that states: "When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation." It is commonly stated as: "Bad money drives out good", but is more accurately stated: "Bad money drives out good if their exchange rate is set by law."
For centuries governments' have been manipulating the money supply by issuing legal tender laws, debasing the currency and inflating. Where has the good money gone? Into vaults of Central Bankers and who knows maybe in underground silo's or under the Vatican. But it's probably mind boggling. That means government and bankers have been hoarding gold and silver for centuries and they want more and they do not want you do own it in any form or in any quantity. PERIOD. We don't need to spend 10 minutes of a 30 minute debate discussing Andrew Macquires credentials. It's immaterial!! We do not even have to look at late night volatility, precipitous drops and no volume. We only need to look at the system. Legal tender laws have been used the same way by kings and dictators since this scam began. All of a sudden we have accepted unconstitutional banks, inflation, legal tender laws, highly regulated markets as part of daily business. That is plain and simple Jim Jones, David Koresh, Mao Tse Tung out and out brainwashing!! 2500 years of this stuff and you're telling me that it comes down to the credentials of one man??? Whose side is Kitco on anyway? They hire a man as an analyst who gets it wrong consistently, their written news is the absolute worst, they state they have a special relationship with goverment mints that others don't and they sponsor this debate in the interest of truth?? Maybe it's bullion business is just a front for their disinformation racquet.