The Banks And The "Fractional" Gold/Silver System...

This is a letter sent into Bill Murphy's "Midas," which can be read daily at http://www.lemetropolecafe.com/.  Anyone who buys "bullion" from a big bank and allows the bank to "safekeep" it after reading this accounting deserves the paper currency they'll ultimately end up with in the end:

"Bill, Chris

I am in the final stages of getting delivery of some rather spread about metals holdings. UBS have been giving me consistent delays and aggravation eg "no problem - takes about ten days" followed by in two weeks time after I chase them "we have to have a wet signature, to replace your fax - just our system" - and then still later "your gold coins will take considerably longer, as there are a lot" - it is actually 250 we are talking about which I should not have thought was that many at all.....

Worse, right on the day arranged for delivery, they are claiming they have only just received the instruction and there will be further delays.

Worse yet, they are now saying that my Silver is held in a metal account, despite my paying for bars, and that if I want bars they will have to be made!!! at a cost of approximately 10%!!! This despite their continuing clear advertisement of Kg Silver bars on their website.

They ask then whether I would like to close my position instead in view of the cost. None of this was of course discussed or in play when I bought and I have asked them to retrieve the recordings of the order conversation. I have of course declined to "Close my position" because this means selling at their miserable freakin' bid, and letting them off their silver obligations scot free. I ordered Kilo bars, which I paid for in advance including TVA a few years ago and however this turns out it shows just another twist in the lying stinking conspiracy that is now pervasive. What I shall probably do is to leg in on ZKB, and close the account whilst demanding the bars. If I have to, ultimately I shall pay and then seek redress through the banking ombudsman in the in the UK which is of course the jurisdiction in which I lived when I made the purchase. Since they too operate in London, they may find this an embarrassing conversation, or then again they may get off scot free.

Just thought you might care to warn prospective delivery takers of the sort of wiles that are now being used to escape metal delivery obligations. My own feeling is that I am not big enough for them to care too much about, but what it does drive out it seems to me is that they are operating to instructions to try to make it as difficult as possible to take delivery, and to make sure there is the disincentive of a haircut into the bargain. The basis of trust has been completely discarded.
Dave"

(This "Dave" is not me - I would never buy my bullion thru a bank nor would I ever invest in the Monex and Kitco leveraged gold accounts).  This particular "Dave" will be fortunate to get his actual physical bullion delivered to him - eventually.  At some point in the future everyone else who buys their gold in this manner will not be so lucky.

I also wanted to share this exerpt from the latest issue of The Privateer.  Many are not aware that the U.S. Constitution mandates gold and silver as the only permissable legal tender.  But then again, the Constitution has largely been rendered irrelevant by the tyranny of big Government:

Article 1, Section 8 of the US Constitution reads as follows: “The Congress shall have Power ...To coin Money, regulate the Value thereof, and of foreign Coin.”

At the time that this document was being debated, the 13 colonies which were to become the original US states coined their own money. So did most other states and provinces in nations throughout the world.  In most non-English European languages and in languages of nations ever further removed, the words for “coin” and “currency” were the same or synonymous. Money as it passed from hand to hand in the economy of the day was coin everywhere. Paper money had been a disastrous failure wherever it had gained sway, not least the “Continental currency” issued to fight the revolutionary war in the US.

Article 1, Section 10 of the US Constitution reads as follows: “No State shall ...make any Thing but gold and silver Coin a Tender in Payment of Debts.” Please remember that when this phrase was inserted in the Constitution the federal government in Washington DC did not yet exist. The States were expressly forbidden from coining money. The clear implication in this clause was that they could not replace GOLD and SILVER coin as a means of extinguishing debt. The Congress as it was being set up by the Constitutional convention was given no EXPRESS power except one - the power to COIN money.

Congress still has that power, of course, but it is a minor detail today amongst the printing press and electronic money which represents almost all of the global “supply” of US Dollars.