Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Case Of The Mystery Gold

Commodities / Gold and Silver 2011 Jun 13, 2011 - 12:02 PM GMT

By: Submissions

Commodities

Lonerangersilver writes: I would like to share a story with the readers and hear your opinion. It was around 1985 in Northern Mexico before all the drug scandals. The new President of Mexico set to completely change the corruption in the customs authority especially in the US/Mexican border. To this end he entrusted a highly trustworthy and honest economics professor from a northern university (let’s call him Guzman) and put him totally in charge. Guzman then turned to some of his most trusted ex-students to fill the supervisory ranks and they in turn completely cleaned house hiring and training new agents.


After a couple of years the customs department was totally transformed. A nephew of mine (let’s call him Hector) who had an economics degree, had become an economics professor at a university as well. He was a close friend with his mentor, Professor Guzman. Hector became a Sector Supervisor.

The country was divided into sectors with the border region split in four such sectors. The sector supervisors rotated from one sector to another in order to avoid corruption.

Hector, who has an impeccable reputation in our family, told me a story soon after it happened. One day he and his driver were patrolling the highway near Ciudad Juarez on the Mexican side, which shares the border with El Paso, TX. They were driving north towards the city where they followed a slow moving large truck. The truck was obviously overloaded and looked suspicious. They pulled the truck to the side of the road and in inspecting the bill of lading, it showed that it was carrying artisan plate ware. Hector climbed on the truck pulling the canvas cover aside to inspect the crates. He opened one of the crates and pulled out a thick dinner plate. He noticed the excessive weight and upon close inspection, he noticed that the heavy clay plates were suspicious. He tried to break one but discovered that it was gold covered with clay. He said, “I immediately surmised that someone was probably trying to smuggle gold out of the country.”

After questioning the driver they saw that he was clueless as to what he was carrying in the truck. They had him drive the truck to a fenced parking area outside the customs office and held the driver for further questioning. Hector posted armed guards around the truck and the next morning, when Hector was in the office, a military detachment lead by an army general came into the compound. The general told Hector that he was there to confiscate the truck and the contents. Hector held his ground. By law the investigation was under the Customs Department and there are separation of powers between the Mexican Federal Government and the military. The situation was very tense. The general drove away leaving the soldiers there.

Hector called Professor Guzman and as he explained what had happened. Guzman agreed with Hector and gave him his support. A while later, the general showed up again and told Hector to call his superior, Director Guzman. Before he made the call, Guzman called Hector and told him, “Step back and let the general take the truck. The order comes from the highest authority.” The implication was the President of Mexico.

Since then presidents have changed and Guzman is back to teaching college. I was told this at a time when I was a very busy executive living in Europe. As I have learned more about the history of gold and it being replaced by the USD as the international currency of appreciating value. Countries replaced their reserves to USD which did appreciate against their own currency.

Now, I have some questions that I have not been able to answer in my mind:

1. In order for countries to replace their reserves with USD did they use gold to purchase the dollars printed by our Federal Reserve? If so, what happened to the gold that was exchanged and who owns it?

2. In regards to this shipment of gold from Mexico mentioned here, who was more likely to be transferring the gold to the US and for what reasons?

3. Maybe there had to be a very strong and powerful connection in the US to bypass US customs.

Remember that this was before the drug cartels were this powerful. The powerful cartels were mainly in Colombia then.

I would appreciate your comments.

Lonerangersilver

http://lonerangersilver.wordpress.com/

© 2011 Copyright Lonerangersilver - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in