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Volume 7 Issue 51…Dedicated
to the Dialogue on Race…December 24, 2004
A Peck of Gold
By Robert Frost
Dust always blowing about the town,
Except when sea-fog laid it down,
And I was one of the children told
Some of the blowing dust was gold.
All the dust the wind blew high
Appeared like god in the sunset sky,
But I was one of the children told
Some of the dust was really gold.
Such was life in the Golden Gate:
Gold dusted all we drank and ate,
And I was one of the children told,
'We all must eat our peck of gold.'
Gold: A Valuable Metal (3000 BC - 2004 AD)
Ancient Egyptians
mastered the arts of beating gold into leaf and alloying it with other metals
to give it greater strength and different colors. Through the ages, artisans created intricate gold artifacts and
nations looked to gold as a store of value.
The first gold coins were minted around 560 B.C. in Asia Minor.
By 1100 A.D.,
Venice had become the world's leading gold bullion market. It introduced the gold Ducat, which was the
world's most popular coin for more than five centuries. Great Britain issued a number of gold coins,
including the Crown and Guinea. King
Ferdinand of Spain (1511) sent explorers to the Western Hemisphere to find gold
to further his ambitions.
Goldsmith Ephraim
Brasher struck the first US gold coin in 1787.
Passage of the Coinage Act (1792) defined the U.S. dollar as equivalent
to 24.75 grains of fine gold and 371.25 grains of fine silver.
In 1803, North
Carolina became the site of the first US gold rush. The discovery of gold in the water at John Sutter's sawmill began
the California gold rush. By the 1900s,
significant gold discoveries had been made in Nevada, Alaska and South
Africa.
The US adopted the
gold standard for its currency in 1900.
In 1933, President Franklin Roosevelt banned the export of gold, halted
the conversion of dollars into gold and ordered US citizens to hand in all
their gold. He also established a daily
price for gold. Roosevelt fixed the price of gold at $35 per ounce.
After WWII, the
Bretton Woods agreement (1944) set gold as the international exchange standard. It established par values for currencies in
terms of gold and obligated member nations to convert foreign official holdings
of their currencies into gold at these values.
Though valuable as
a medium of exchange, gold also became important in industry. In 1960, it made possible the invention of
the laser, which used gold-coated mirrors to maximize infrared reflection. Intel introduced a microchip in 1968 with
1,024 transistors connected by gold circuits.
In 1969, gold-coated visors were used to protect the astronauts' eyes
from searing sunlight in the Apollo 11 moon landing.
On the monetary
front, the US stopped exchanging dollars for gold in 1968 and removed the dollar
from the gold standard in 1973. No
longer set at $35 dollars an ounce, gold climbed to an historic intra-day high
of $870 an ounce on January 21, 1980.
In 1999, the
European Union introduced the euro; the pan-European currency is backed by a
new
European Central
Bank holding 15 percent of its reserves in gold. On Monday, December 20, 2004, the euro closed at $1.33, making it
one of the most valued currencies in the world. (Sources: Encyclopedia
Britannica and www.webelements.com)
Hip Hopping Europe: Week 2 Update
December 14: In
leaving Amsterdam for London, I realized only the "pure in heart"
should attempt the haphazard life on the road. Without real faith and
commitment to the point of reckless abandonment, apprehension weighs one down,
like too much luggage. I left my big traveling
bag in Amsterdam with a very sweet chick named Melissa (also from the states - Nashville,
TN), and sweet is the operative term.
Before I left Amsterdam, I crashed with a brother from Seattle named
Kai, a writer as well, a little corny but a cool character. Like most Third Worlders of mixed heritage,
he has a Dutch mother that he has always wanted to speak with in her native
tongue. That's love.
Amsterdam is such a
strange mixture of old and new. Streets
like Dam Rak are very pristine with museums exhibiting greats like Von
Gogh. Then, Spuistraat, just a couple
streets over, has buildings leaning in all directions. They are picturesque, like a Tim Burton
nightmare before Christmas movie.
December 15: As the
only black face riding the bus to London, the sense of being in the minority is
unavoidable. The great thing is,
Europeans are so nice and friendly, unlike in the US, I never felt alone. I'll not bore you detailing problems getting
my bus ticket and into the UK, just think of me as Bruce Willis in "Die
Hard I" and you will be close. The
custom inspector was not feeling me or my story. I think my energy made him uncomfortable. Fortunately, my luck was better than one
guy. I'm not sure what happened, but he
was not with us when the bus boarded the ferry to London.
December 16: It had
been gray everyday, except one, since I arrived in Europe. The hassle of getting to London left me
feeling a little down, seeing only gray.
I wanted to show my hostess, Azania, my appreciation, so I decided to
cook dinner. A friend from Atlanta,
catching each other up on our lives was great.
On my walk to the market, suddenly the gray departed and there were sunny
blue skies, like a reward for my persistence.
December 17: Well
London was definitely an adventure. I'm glad I made the trip, but the show felt
more like a private party and I was not a guest. A guy named John Paul hosted the gig at a place called Farrago. I will be back in London on December 26, and
I hope things go a lot smoother. My
already 11-hour bus trek turned into 18 hours; traffic was backed up for hours
just outside of Dover. A freaky storm
struck France; several people were killed and prayers were said for those
unfortunate souls.
December 19: Aquiyl joined me in Amsterdam for a show
called Palabras at the Paradiso last night. The show went great and I am loving
these Amster-jammers! London may be the
rock capitol of Europe, but in my book, Amsterdam is the bomb for spoken
word. It is a really wonderful place to
be, if you are an artist and serious about cultivating your talent. Unlike in the US, the government invests
lots of money in the arts.
December 20: I'm
working on the Vienna slam itinerary for December 28. The challenge is figuring out eating, sleeping and travel
arrangements from Vienna to the Munich slam on January 9th. I have another gig scheduled for January
19th, but the trick is keeping body and soul together between these
engagements.
Thinking
positively, there are opportunities, and I am learning more business than I
would sitting in Atlanta. I am grateful
for all the e-mails from everyone; it's so good to have love and support from
home. Tell everyone to keep the love
coming; it is my ante fading this desperate gamble. Love, Yohannes
Bloody Petrodollars
A recent question
posed by a network news anchor elicited some interestingly disturbing responses. Viewers were asked whether or not they
supported the war in Iraq and why. Amazingly,
there are still US citizens that believe Iraq was involved in 9-11, despite the
fact that none of the "alleged hijackers" were Iraqi citizens or
associated with or linked to Saddam Hussein.
Employing selective
amnesia, they have forgotten we were told Iraq possessed weapons of mass destruction
that threatened the US and its allies in the region. Ironically, they no longer say the US attacked this sovereign
nation to free Iraqis from the madman Saddam, since he is in jail. Needing a reason to justify the war, they say
the US attacked Iraq because of 9-11.
Blah on this line
of reasoning! It is past time for US
citizens to face the crude realities.
Henry Quentin Jones, whose essay at www.newtopiamagazine.net entitled
"The Crude Truth," and other writers on this subject do a credible
job of explaining why the war in Iraq was necessary. It has nothing to do with WMDs, terrorism or freedom and
democracy; it is all about those bloody petrodollars. Wake up and smell the coffee!
Investing in Gold
On December 14,
2004, Associated Press reporter Rachel Beck wrote "Rampant Insider Selling
Raises Red Flags." The article
basically wondered about the implications of an apparent double standard. On the one hand, the actions of top
executives and directors at a number of companies signaled a bear market since
they are selling shares of their company's stock. On the other hand, the stock market is red hot, rising to its
highest level in more than four years.
Brokers and company executives are urging investors to take advantage of
this bull market and buy more shares of their companies' stock. Where is the disconnect?
Despite the reasons
offered by Beck and others to explain some of the unusually high insider trading
activity, many international economists have been predicting that problems
within the US economy from its historically high debt, budget and trade
deficits to a declining dollar and the increasing unwillingness of foreign
governments to hold dollar-denominated securities spell pending economic
disaster. Given its dominant role in
the world economy, any substantial decline in US economic activity will be felt
globally.
With so much doom
and gloom, smart investors are cautious.
There has to be something behind these consistently dire
prognostications. A recent spate of
memos urged investors to buy gold, an historic standard of value. Like the US stocks, gold has been on a
recent upswing, closing at $441.30 an ounce on Monday.
However, like the
stock market, investing in gold is not a sure thing. At one time, gold sold for as much as $800 an ounce. Wealthy Arab oil countries bought it at this
price and sold gold when it tanked around $200, losing several fortunes in the
process. Some of the world's most
famous financiers have won and lost speculating in currencies and commodities,
such as gold and silver. There are no
risk free investments, and even the best strategists sometimes guess wrong.
Before you invest
in any commodity or company stock, do your homework. Consult several sources. Talk to your broker, but be willing to spend
some time on independent research.
There are numerous online sites that provide historic data and analysis
on stocks, gold, oil and other commodities.
Some even advise small investors against commodity trading. As a rule of thumb, when markets are
volatile, it pays to be cautious.
With a great deal
of research and a lot of hard work to conceive and create a gold molecule model,
the Dark Knight-Batman/White Ninja/Zorro exceeded expectations. Proud as a peacock, he strolled into school
with his colorful poster and gold model and prophetically announced, "A+++,"
to classmates in his proximity. When
informed this week's issue would feature his element, the Dark One/Ninja/Zorro
remarked, "That's so cool, grandma!"
Disgruntled wants to know: In response to Time
Magazine' Man of the Year issue, Internet bloggers reminded the online
community that Adolf Hitler also received this dubious distinction. Within hours of the Time issue hitting
newsstands, the latest CNN opinion poll showed the Man of the Year's favorable
rating has dropped below fifty percent on job performance and the war in Iraq. Those who did not vote for George W. Bush
are not surprised by these numbers.
However, we are mystified that polls conducted before the November 2nd
election showed such high ratings for Bush on the economy and the war in Iraq,
especially when conditions in both arenas were and continue to go so
badly. Did mainstream media
organizations deliberately publish faulty opinion polls or otherwise skew the
data to reflect positively on the incumbent and against his opponent?
Disgruntled feels: Hexed! During the Ronald
Reagan administration, the US economy suffered the twin ills of inflation and
stagnation-- stagflation. The
administration's domestic policies to cure this malaise were known as voodoo economics. Today, Reagan Republicans will tell you the
spell cast by Reagan to cure the economy was the miracle behind the boom of the
1990s. Perhaps, George W. Bush has cast
an equally powerful spell on all of us.
How else does one explain and no one questions an unemployment rate that
has miraculously held steady at 5.4% for an entire calendar year, although
there have been massive layoffs and outsourcing? In addition, according to administration statistics, inflation is
practically non-existent, even though food, fuel and rent have gone through the
roof and the dollar has tanked. With
evidence on the ground contradicting the rosy Bush statistics, hexed is the
only explanation for the absence of questions and apparent mass acceptance of
the new voodoo economics.
Disgruntled says:
On Friday, the US Food and Drug Administration (FDA) issued a warning about the
over-the-counter pain reliever Alleve.
It has not required Pfizer to pull its Cox-2 inhibitor Celebrex off the
market. Unlike Merck, which pulled
Vioxx, Pfizer will suspend its multi-billion dollar advertising campaign. The recently revealed problems with
FDA-approved drugs are troubling. While the big pharmaceuticals raked in
billions of dollars, evidence that their painkillers killed people was
ignored. Now, the overriding concerns
are limiting product liability lawsuits and settlement costs. With tort reform high on Bush's agenda,
concern for the public welfare is not a consideration. Bottom line, with the government in their
pockets, the chief executives and top company officials at these big companies
will enjoy their stock options and golden parachutes. Like the innocent victims of the wars in Afghanistan and Iraq,
the people that have died from using their lethal products are merely
collateral damage or inconsequential road kill squashed on those fast lanes
reserved for the rich and famous.
Good as Gold?
By Dot
With Yohannes
touring Europe on a shoestring, I find myself doing the motherly thing --worrying. Next to physical activity, I find jigsaw
puzzles quite relaxing. An agile mind
can entertain a number of things over a 1,000-piece puzzle. Far from the pastoral scene depicted in my
latest puzzle, I contemplated the implications of oil and gold prices and the
impact of a declining dollar on Americans at home and abroad.
While no expert on
these subjects, I managed to connect a few dots. On the issue of oil, we need to put its price in
perspective. On Monday, oil closed
around $45 a barrel. Merchandise
costing $45 in 1973 costs $189.12 in 2003, even more in 2004. Oil is cheap! Oil-producing countries may not be able to command $189.12 a
barrel at the wellhead, but they can beat the current price. As good as gold, which is selling at $440 or
more an ounce, at $45 a barrel, oil is worth more in the ground than out. A true capitalist would restrict the supply
until the price more accurately reflected its value.
For as long as I
can remember, the US has maintained a strong dollar policy. While the greenback is no longer as good as
gold, it remains the world's reserve currency.
Since it has lost so much value against other currencies, especially the
euro, questions abound. US Treasury Secretary
John Snow dismissed the notion that the US is using a weak dollar to reduce its
trade deficit. A cheap dollar makes US
goods more attractive.
European tourists
are choosing US destinations, where goods and accommodations are cheap, relative
to Europe. Unfortunately, the goods
they purchase in the US are probably produced in China, Japan or in some other
relatively cheap labor market. And, illegal
aliens provide the service in hotels and restaurants. Consequently, if the US is employing a cheap dollar policy to improve
its trade deficit, the strategy is failing.
Americans living
and working abroad, students and tourists are finding it harder to make ends meet,
thanks to the shrinking US dollar. If
it is any consolation, things are not much better on the domestic front. Consumers are finding the dollar buys
less. The price of everything from food
to fuel has risen. Consequently, X-Mas
spending is projected to be down this year.
There is not much cheer among holiday shoppers. People are understandably under duress.
Since Yohannes
seems to be surviving on his shoestring, I think I will do another jigsaw
puzzle. This time, I plan to
contemplate the New Year.
Mailbox: E-Mails, Faxes and Telephone Calls
Email www.markswatson.com The story in all the
financial publications from Beijing to Moscow, New Delhi to New York is the
falling dollar. Headlines from around
the world are discussing the dollar crisis. Now if you turn on the evening news
you may hear a snippet or two here or there about it. But Chinese citizens were
recently cued up in large lines to exchange their dollars. The same has
happened in Eastern Europe as well. Something ominous is happening to the US
dollar and it is not a cyclical problem or one that is rooted in transitory economic
factors. There are fundamental economic
issues at the heart of the dollar crisis.
Email www.nytimes.com Rep. Billy Tauzin, a
principal author of the new Medicare drug law, will become president of the
Pharmaceutical Research and Manufacturers of America, the chief lobby for
brand-name drug companies. Drug makers said that the job was not a reward for Tauzin's
work on the Medicare bill, which followed the industry's specifications in many
respects. The law was signed by President Bush on December 8, 2003, a few weeks
before a lawyer for Tauzin began talks with the drug trade group.
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