From: <[EMAIL PROTECTED]>

> Man -- that "thing", html table, on the URL in question, is NOT a
> "balance sheet"!!!!!!!!!!!!!!!

I never said it was.  However, the E-Gold Special Purpose Trust DOES have a
balance sheet, to which we are not privy.  I am merely asserting that the
balance sheet, which DOES EXIST, will conform to standard accounting
terminology in use for hundreds of years.


> >     Assets = Liabilities + Equity + Slop.
> >
> >Nope, I don't like it.  I prefer the traditional definition.
>
> :)  You're being funny, but "funnily enough" the above is exactly
> correct!

Any Slop is either Liability or Equity, and is thus meaningless as a
separate concept.

Slop may take the form of an account like "Prepaid Accounting Error Slush
Fund", or "Prepaid Vehicle Servicing Expense" or "Writeoff" or whatever.  As
I recall, these are quite simply liability accounts.

For a Prepaid Expense, the actual money in the checking account is an Asset,
but the Prepaid Expense itself is a liability.


Every company has Assets under its control.  Some of these assets are
Liabilities; the rest are company Equity.

Does that sound dogmatic?  It is.  It is accounting dogma.

I just picked up a random prospectus and turned to a random page.  Sure
enough, Assets = Liabilities + Equity.  One of the Liabilities is "Separate
account liabilities", but the equation still holds.



> You're confusing concepts like REPORTING of things under
> GAAP, balance sheets, and more.  It is perfectly normal, probably
> "universal", for a large corporate entity to report on all their bank
> account (and all similar) balances and then at the end say
> "$1,315--.. unknown! likely due to accounting or rounding errors" or
> "unclassified, under investigation" or some similar note.


Yes, in your example there would be a Liability account named "Funds Under
Investigation."  I have actually seen this kind of thing before.  Once
again, you are right, JP, except that Slop = Liability.



> >Good.  Then who owns the extra gold is literally none of our business.
>
> Nah, likely  way off man (depending on what the explanation is), and
> a bizarre attutude as an e-gold holder!!
>
> The sole purpose of the trust is that it keeps hold of gold bullion,
> for e-gold holders.

The Trust does in fact keep gold bullion free of lien and encumbrance in the
amount equal to all grams in circulation.  Personally, that's all I care
about.  If there's an extra bar in there that belongs to someone else, it's
no skin off my nose.  You yourself would agree with this:

"there are numerous very good reasons that the Trust might have more gold in
it than the sum of all e-gold balances at that minute."

I agree with you on this, JP.  I'll go even further:  I can't think of any
BAD reasons why this might be the case.



> You can believe, I want to know every bloody detail about the trust,
> inside and out!

OK that's fine -- really, it is.  Then I have some questions for you:

1.  Is the E-Gold Trust legally obligated to disclose its balance sheet?
2.  Is the E-Gold Trust morally obligated to disclose its balance sheet?
3.  Is 1mdc legally obligated to disclose its balance sheet?
4.  Is 1mdc morally obligated to disclose its balance sheet?

When you answer, please take care to answer each question "Yes" or "No."
You may elaborate on your answers, but please keep this part separate.


Regards,
Patrick Chkoreff


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