Greed

by D Thomas Jewett

  “Hi, Joe. Hi, Jane,” the Ranger greeted them. “How're you two doing?”

  “Fine, Pete. Just fine,” Joe replied. “And you?”

  “Very well, Joe.” The Ranger paused and then continued speaking. “I've got your favorite camping spot open.”

  “Hey, great!” Joe replied. “Thanks!”

  The Ranger then said, “You folks have a nice visit, now.”

  “Thanks, Pete. And you have a great day too!”

  Joe drove over to the campsite and backed in. He turned off the engine and they unloaded their camping gear. Then, while Jane worked on setting up the camp, he towed the boat down to the boat ramp, lowered it into the lake, and tied it up to the dock. Finally, he drove back to the campsite and parked the truck and trailer in the driveway adjoining the campsite.

  Joe and Jane worked quickly and had the campsite set up in no time at all. And when they finished, they sat down together. They bantered for a bit and then they said in unison, “Wine?” Laughing, Jane shook her hair and pulled out a bottle. She poured two glasses.

  Over the weekend, they relaxed, they fished, and they enjoyed camping and the outdoor cooking. And they talked for hours – about the layoff, the process, and their future. Joe was amazed at how little money was in the three-month severance check – and said so.

  They arrived home on Sunday evening. And on Monday, Joe applied for unemployment benefits.

  * * * * *

  Two years later ...

  Jane was sure her head would explode. She had explained it several times, but they just didn’t seem to get it. She paused, looking at her clients through protruding eyes. And then she said, “Look, there’s already a bid on the house. The bid is $625,000. I know the listing price was $610,000; but submitting a bid of $610,000 will not get you the property. If you want to buy it, you need to outbid the other bidders.”

  Trevor Townsend looked at his wife, Paula. Paula looked back at him. They both nodded their heads up and down in a gesture of 'yes'.

  Trevor turned to Jane. “Okay. We'll offer $630,000.”

  Paula's face broke out into a smile even as she shivered with excitement.

  Jane nodded to the couple and began writing. “Okay, we'll make this offer for $630,000 and see what they do.” Jane scratched the pen across the paper in a final flourish. She passed the offer sheet across the table to Trevor and Paula and looked at the two of them while pointing on the sheet. “I need your initials here – and here. And then sign here.”

  They each signed their initials and signatures, and then Trevor handed it back to Jane.

  “So,” Jane smiled, “I'll fax this out now. Hopefully, we'll hear something positive before the end of the day.”

  “Okay,” said Trevor. Paula shivered with still more excitement.

  Jane shook hands with the young buyers and smiled as she watched them depart, chattering like a couple of hens as they walked out of the office. She enjoyed working with young buyers. They were fun, exuberant, and full of energy; and yet they were ignorant of the home buying process. I really hate having to educate these kids on this stuff, she thought.

  Jane turned to the fax machine and faxed the counteroffer to the seller's agent. Then finished for the day, at least so far as she knew, she packed up and strode out of her office. I wonder how Joe's job search went today? She thought.

  Jane opened the door of her late-model Cadillac and slid behind the wheel. With just a hint of hedonism, she ran her hand over the leather seat next to her. I just love how great these seats feel. She started the car and moved out of the parking lot and into traffic.

  Jane chose to be a housewife and homemaker after their marriage – staying at home and raising their two children. It was an easy decision for her, especially since Joe made such a good salary. But after Joe was laid off, Jane decided to go back to work and build a career; and given that her college major was business, she decided that being a real estate agent would pay off for her. Hell – it seemed as though California real estate was always going up. There must be some money in it!

  She arrived home and pulled into the driveway next to Joe's truck. If he doesn't get a job soon, we may need to sell his truck.

  * * *

  Joe was coming down the stairs just as she entered the front door. “Hey, lover. How was your day?”

  “Oh,” she paused for a kiss, “I have a couple who think they can buy a home by bidding less – LESS mind you – than a bid that was already submitted! Some people are just plain dumb!”

  “So, what did you tell 'em?”

  “Well,” she laughed, “I told 'em if they didn't bid more than their competition, they wouldn’t get the house. Hell, Joe, I had to tell 'em three times before they got it!”

  Joe grinned.

  “So,” Jane continued, “how was your day?”

  Joe's expression turned serious. “Well, still no luck on the job search. I send out resumes' but I never seem to get any callbacks. No interviews. Hell, most of 'em don't even send an acknowledgment. And then there are the replies that say 'we will maintain your resume in our file in case a position with your qualifications becomes available'. Shit, I hate those bastards!”

  They walked out into the kitchen and Jane retrieved a soda from the refrigerator. She popped the top and turned around facing Joe.

  “Why the hate?” she countered. “They aren't out to get you. Hell, they don't even know who you are.”

  “Damn it, Jane. I'm pissed. They laid me off with no notice.” Joe paused. “Hell – I send out resumes and I never get a response. I swear they're not really looking to hire anyone. I'll bet they're advertising just to keep their corporate name out there.”

  “Damn!”

  Jane leaned against the counter sipping her soda.

  “I talked with Nate today.” Joe continued. “You know – my old boss?”

  Jane nodded. “What'd he have to say?”

  Joe met her eyes and said, “He was laid off.”

  “What? How long ago?”

  “He was laid off a couple of weeks after they let me go.”

  “Damn! What's goin' on at that place?”

  “They told him they were cutting back the entire operation. But Nate has been hearing things from other people.” Joe ran his hand down his shirt. “The word out on the street is that the telecom industry is in a depression. Not just a recession – but a full-blown depression.” Joe's eyes widened as he spoke. “There's Lucent, Northern Telecom, and a whole lot of other companies that are in big trouble.”

  Jane nodded and then said, “What do you think we should do?”

  “I'm already doing everything I can.”

  “I know. That's not what I mean. What do you think we need to do from now on?”

  “Well, I need to find work so that we have enough income to live on.” He paused. “We could sell the house – it's gone up in value quite a bit.”

  “Yes – but since we're now burning through our retirement fund, this may be the only asset we can count on for retirement – this and social security.” Jane paused. “So, I'm not keen on selling this.”

  “I agree,” Joe replied. “Tell you what. If I don't land a job soon, I'll get something flipping burgers – or something like that.”

  “Well, that will help. But it's pretty small when we have such a large house payment and two car payments. What do you think about selling your truck?”

  Joe's face turned red. “That would leave me without transportation. How would I be able to hold a job then?”

  An awkward wordlessness came between them.

  “Hey,” A gleam flashed in Joe's eyes, “how 'bout some wine?”

  Jane smiled. “I'd love some.”

  Interlude

  As though alive, the log walls danced in the flickering light of the blazing fire. And with cigar smoke wafting, the air was rife with silhouettes, weaving and winding their way through the ether, projecting an ethereal presence in the room.

  In front of the fireplace,
five leather chairs were arranged in a semi-circle, each facing into the fire. Five men, each ensconced in a chair, were talking. And while they were talking, each man filled his senses – of taste, of smell – with a very old, very rare brandy.

  A tall, lanky man emerged from the shadows and into the center. With dark hair graying at the temples, he nonetheless had the attention of those seated. He nodded to each of the Five.

  At the moment in question, the tall, lanky man was speaking. “... and we finally completed the project this past year. GLD[23] has been established and its assets are mostly salted[24] gold bars. And gentlemen, GLD is prepared to lease the ‘gold’ to other banks for short sales into the gold market. This will saturate the gold market, driving prices down even further.”

  “In addition, gentlemen, we have sold the excess salted bars into the market, primarily through both COMEX and LBMA.”

  Julius chimed in. “This is great news, Daniel. Driving down the price of gold creates the psychology that allows us to print more paper money without adversely affecting the paper currency and bond markets.”

  “Quite, Julius, quite – this is excellent news,” responded Lord Basil. “What else do you have to report, Daniel?”

  “Well, gentlemen, with regard to countries on our invasion list, it has become clear that the U.S. military will only be able to occupy Iraq and Afghanistan at the present time. They are stretched too thin to attack anywhere else, and the mood of Americans is against further war.”

  “What about Iran?”

  “Iran has a formidable military, my Lord, and the U.S. military does not have enough infantry to hold Iran in addition to the other two countries.”

  “Hmmm,” Lord Basil paused, then he said, “Well, Daniel. That last bit of news is certainly difficult to accept. I’m afraid that we will need to make other plans to take care of them. Maybe …,” he paused, “we should fortify our armies with still more money!”

  “Yes, my Lord.”

  “Otherwise, an excellent report Daniel. You have performed magnificently!”

  “Thank you, sir. May I be of any other service, my Lord?”

  “Ahhhh – possibly, Daniel.” Lord Basil paused in thought. Then, “what are you doing about silver?”

  “Silver, sir? Why – we are selling it short into the market just as we are gold. But there is some strangeness, too; because the price does not behave like gold.”

  “It is excellent that you notice this, Daniel. You are correct. The price movement is certainly different.” Lord Basil paused. And then he asked, “Do you know why?”

  “No, my Lord.”

  “The answer is simple, Daniel. There is much less above-ground silver than gold. We are already planning a silver ETF[25] for next year. So I suggest, Daniel, that you make some salted silver bars and sell them into our new ETF.” Lord Basil smiled.

  “At your command, my Lord. I will begin the project right away.”

  “Excellent. Excellent, Daniel.”

  “My Lord, is there any other way I can be of service?”

  “No. Not at this time.” Lord Basil paused, and then said, “You may go.”

  “Thank you, sir.” Daniel turned and walked out of the chamber.

  The men had been listening attentively. With Daniel’s departure, the men relaxed into their chairs.

  “Well, gentlemen,” Lord Basil waved his cigar in a flourish. “As the days unfold, we move closer to our objective. The 9/11 recession has passed, even as the Federal Reserve continues to pump ever more money and credit into the economy. And as you can see, it is pumping up the stock markets and housing markets throughout the western world – just as we planned.”

  “And when these markets come crashing down, we shall see the pain and discontent, and the beginnings of a murmur begging us to help them.”

  From the shadows, the other four men nodded their approval.

  “And also as we planned, commodity prices – especially food and energy – are going higher. Higher food prices, particularly, shall sow the seeds of discontent among the rabble. And thus we are planting the seeds of third-world revolution to come five or six years hence.”

  “Ah yes,” Lord Basil continued. “That we control the world’s reserve currency means that we can inflict inflation, depression, pain, and suffering on the entire world with just a few keystrokes.” Lord Basil smiled with glee.

  Chapter 7

  New York, November 18, 2004 (International Press) Exchange Traded Fund (ETF) for Gold.

  GLD – SPDR’s[26] newest exchange traded fund has begun operations today. The fund is structured to allow investors the opportunity to invest in gold without taking delivery of the physical metal.

  “This makes investing in gold easier than ever,” according to a spokesman for SPDR. “Investors no longer need to deal with the inconvenience and expense of delivery and assaying of their gold. Instead, investors can purchase however many shares as they deem necessary for their portfolio.” The spokesman also noted that shares of GLD are fungible – that is, easy to break into small portions.

  The custodian for this fund is HSBC[27] bank.

  Around the same time, this piece also appeared in the print media:

  Rothschild & Sons Ltd. Withdraws from Commodities Trading.

  LONDON, April 14, 2004 (International Press) - NM Rothschild & Sons Ltd., announced on Wednesday, that the London-based unit of investment bank Rothschild [ROT.UL], will withdraw from trading commodities in London, including gold. It stated that “… its operations are under review.”

  This reporter speculates that the risk to gold investors has increased, but without the additional risk premium factored into the price of gold; thus motivating the Rothschild's departure from the gold market.

  * * * * *

  Josh rubbed his hands together and said, “Okay boys and girls. It’s time to slam gold again.”

  Josh and his staff – Eddie, Troy, Stephanie, Natalie, and Chet – were gathered in Josh’s office, seated on the sofa and upholstered chairs formed in a semicircle. His monthly staff meeting was a ritual. He didn't like it – and he knew his staff didn't care for it either. But it was a way to meet with everyone at the same time.

  Looking around at his staff, he noticed that Troy and Natalie were hanging closer together. A possible romance?

  Josh smiled broadly as he spoke. “Well, folks. In terms of dollars, the price of gold is just about where it was ten years ago. We’ve been enormously successful, and I salute you for the role you’ve played. There will be bonus checks deposited into your accounts in the near future.”

  Josh raised his coffee cup. “I offer a toast! A toast to our success!”

  Everyone raised his cup and cheered, and then they solemnly sipped.

  Josh focused first on Eddie. “How’s our gold leasing program going?”

  Eddie stopped biting on a fingernail long enough to respond. “I think it’s doing good. The central banks have slowed down a bit; but we're leasing more from GLD.”

  “Great work, Eddie,” Josh replied. “Troy. How are the gold shorts doing?”

  Troy’s eyes lit up as he smiled broadly. “We’re keeping the gold shorts in a manageable range, Josh. But we could probably use more help from the other banks.”

  “Okay,” Josh replied, “I will talk with our partners and see if they can pick up some of the slack.”

  Josh continued. “How about the silver shorts? How are we doing with those?”

  Troy’s smiled faded. “Silver has been tough. Even as we sell more shorts into the market, the market keeps hitting back. And it’s so volatile!” Troy looked pointedly at Josh. “We could lose a lot of money if we get in deep and the market goes the wrong way.”

  Josh nodded his head in quiet acknowledgment. “I talked with Trevor the other day ...”

  “Is that your new boss?” Natalie joked. It was common knowledge that every candidate since Charles had been a failure.

  Josh smiled and continued, “Yes - that's him.
Anyway, he let me know that we need to do whatever it takes to keep silver under control, even if we have to take a loss.”

  With that statement, his staff began to chatter back and forth. Taking losses had never before been part of their charter.

  And then Josh interrupted as he looked at Troy. “So Troy. You should be selling short as much as you need to keep the price down. In fact, you need to get real aggressive with your short sales. Let’s see how many weak hands are holding silver – let’s see how much silver we can shake loose from those weak hands.”

  * * * * *

  New York, April, 2006 (International Press) New Exchange Traded Fund (ETF) – Silver.

  This month, SLV[28] – SPDR’s newest exchange traded fund will begin operations. The fund is structured to allow investors the opportunity to invest in silver without taking delivery of the physical metal.

  “We all have a desire for more liquid markets, and this makes investing in silver easier than ever,” according to a spokesman for SPDR. “Investors no longer need to deal with the inconvenience and expense of delivery and assaying of their silver. Instead, investors can purchase however many shares as they deem necessary for their portfolio.” The spokesman also noted that shares of SLV are fungible – easy to break into small portions.

  The custodian for this fund is AB Jorday.

  Chapter 8

  Joe was smiling. “Hey. It's nice to be working again!”

  “How about some wine?” Jane said. “I'm bushed after that long day at the office!”