Franklin Mining, Inc. (FMNJ)

[NYBob]

Franklin Mining, Inc. - FMNJ -
Gold & Silver Mines -





Back to - The Gold Standard -

Gold is selling for more than US$614 an ounce -
up from $258 in 2001 -
and this is but one of the many signs -
of a flight to Gold -
which has become a most basic economic -
worldwide important safety phenomenon.

i could yet see a return to - The Gold Standard -
by the world's fair efected people leaders.

The main cause?

The economic policies of the governments -
but this requires a bit of explanation.

Jewelry and industrial applications absorb 85% -
of new Gold supplies? -

Although production has fallen and industrial demand -
has increased -
this alone cannot explain surging prices -
because bringing new deposits on line -
would cost less than $700 an ounce of
the recent POG.

China Business Big Picture -

The big new demands in the gold market are from
exchange-traded funds.

These store bullion for investors who have lost -
confidence in the US dollar -
and may be a precursor -
to a - New Gold Standard.

In 1944, the International Monetary Fund -
established a system of fixed -
currency-exchange rates.

The US dollar was fixed to Gold -
and other currencies set to the dollar.

This system ultimately failed because -
rising production costs pushed the industrial -
price of gold above its monetary value -
and fixed exchange rates proved unsustainable.

Productivity and competitiveness advanced more -
rapidly in Japan and Germany than in -
the United Kingdom, France and the United States -
and trade imbalances caused crises for the pound,
franc and dollar.

When the pound and franc became overvalued -
those were devalued against the dollar,
yen and mark.

When the dollar became overvalued -
US president Richard Nixon ended its convertibility -
into Gold in 1972 -
and the system of fixed exchange rates -
was abandoned by the end of 1973.

Subsequently, the price of Gold - POG -
rose from $100 an ounce to a peak of $870 -
in 1980.

Over the next two decades -
central banks demonetarized - Gold.

They increasingly backed their currencies -
with US dollars -
and to a lesser extent German marks -
(then euros) and Japanese yen.

Many sold off significant portions of their - Gold.

The price of Gold POG -
fluctuated but trended to lows of -
$255 in July 1999 and $258 an ounce in April 2001.

Two things made this possible.

In the United States -
Federal Reserve chairman Paul Volcker -
whipped inflation and presidents Jimmy Carter -
and Ronald Reagan put the US economy -
on the path of deregulation.

These steps unleashed mighty waves of productivity -
and innovation, created the US prosperity -
of the past 15 years? -
and made the dollar a better -
and more stable store of value than - Gold?

In recent years, though, record budget deficits -
dysfunctional energy and environmental policies -
and a dollar overvalued against the Chinese yuan -
and other Asian currencies have created huge -
US trade deficits.

Dollars and dollar-denominated securities have -
flooded into international capital markets.

These now total $5 trillion? -
increase $700 billion each year -
and erode confidence in the dollar.

To keep the yuan from rising against the dollar -
China purchases more than $200 billion in foreign -
securities every year.

A few central banks are buying - Gold again -
and some economists are counseling -
the People's Bank of China -
the country's central bank -
to diversify its reserves from dollars into - Gold.

A significant revaluation of the dollar -
against the yuan seems inevitable -
and it will cause a wholesale adjustment -
for the dollar against other Asian currencies.

With so much of what the world consumes -
now coming from China and other Asian economies -
the dollar will be worth a lot less -
to gold miners in South Africa or Russia -
and Asian currencies would be worth more.

The Chinese yuan or South Korean won price -
of Gold would not rise? -
and might fall? -
but the US dollar price of Gold would increase -
a lot.

International investors with wealth to park -
are foolish to put it in dollars;
however, the currencies with the best prospects -
are backed by governments with poor track records -
for controlling inflation or honoring commitments -
to foreign investors.

Could you tell your mother? -
her money would be safe in Korean? -
or Chinese bonds?

If private investors continue to doubt -
the dollar and bet on Gold -
central banksters will be forced into Gold -
or closed down by the fair elcted peoples leaders -
only the Gold, Silver, Copper & Nickel - Mints -
are needed!

Investors won't trust currencies back by dollars -
and central banks would be just as foolish -
as private investors to trust -
won- or yuan-denominated bonds.

What brought the US to this pass?

The root causes, as mentioned -
are high government deficits and bad policies -
on energy and the environment, which have added -
to the country's trade deficit by exacerbating -
its dependence on foreign oil.

And on all these matters, the buck stops -
(to put it ironically) with the administration
of President Leader.

The decision not to cite China as a currency -
violator, which again showed the US president's -
refusal to address the root causes of -
the trade deficit -
will not improve matters.

Unless the United States gets all of its economic
house in order ? -
Gold will become the basic real money again -
(which Gold has been for 1000's of years)

and national currencies will only be money -
if backed by - Gold.

With the exception only of the periods of -

- The Great Gold Standard -

practically all governments of history -

have used their exclusive power to issue fiat money -

to defraud with totalitarian bureaucratic powers
rob, plunder and to make slaves -
of most the people.




http://www.goldrush21.com/

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http://www.investorshub.com/boards/board.asp?board_id=5406
In God We Trust.