...Ain't No Doubt About It

The Time For Gold Is Now!

“Dobbs: Our leaders have squandered our wealth” “President Bush's assurances that we'll all be "just fine" if he and Congress can work out an economic stimulus package seem a little hollow this morning. Much like Federal Reserve Board Chairman Ben Bernanke's assurances last May that the subprime mortgage meltdown would be contained and not affect the broader economy.” cnn.com, 1-23-2008

Lou, you mean…you mean we're really in deep financial doo doo? I thought the US had the perfect economy and could never fail. So, Lou, what do we do now?

“The irresponsible fiscal policies of the past decade have led to a national debt that amounts to $9 trillion. The irresponsible so-called free trade policies of Democratic and Republican administrations over the past three decades have produced a trade debt that now amounts to more than $6 trillion, and that debt is rising faster than our national debt. All of which is contributing to the plunge in the value of the U.S. dollar.” cnn.com, 1-23-2008

OK, OK. I’ve got the message. Our economy is in deep and very serious trouble. So what conclusion do we come to?

“All Americans will soon have to face a bitter and now obvious truth: Our national, political and economic leaders have squandered this nation's wealth, and the price of this profligacy has just come due for us all.” cnn.com, 1-23-2008

--David N. Vaughn, Gold Letter, Inc.
http://news.goldseek.com/GoldLetter/1201623659.php


Half of gold in central banks gone?

U.S. central banks may have less than half the gold they claim to possess in their vaults, charges a watchdog group in an ad scheduled for publication in the Wall Street Journal this week.

As WND reported, the Gold Anti-Trust Action Committee, or GATA, claims the Federal Reserve and the U.S. Treasury are surreptitiously manipulating the country's gold reserves by participating in undisclosed leases, according to an advance copy WND obtained of the ad running in Thursday's edition of the Journal.

GATA believes much of the borrowed gold out on lease will never be returned to the central banks.

"With the demand for gold so strong worldwide, it has become impossible to return much of the leased gold without driving the price to the moon," said GATA's chairman, William J. Murphy III.

"Most observers calculate central bank reserves are supposed to have about 30,000 tons of gold worldwide in their vaults, but we believe the amount of gold actually there may be more like 15,000 tons," Murphy said. "The rest of the gold is gone."

"Gold's recent rise toward $900 per ounce shows that the price suppression scheme is faltering," GATA says. "When it is widely understood how central banks have been suppressing gold, its price may rise to $3,000 or $5,000 an ounce or more."
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=59935


Consumer-price inflation in the United States was last pegged at 4.1% per year, leaving US bond yields wildly negative – a strong incentive for money to continue flowing into rare, tangible assets such as Gold, as investors seek a reliable store of value.

"A lot of stops were being triggered when the Gold Price broke $925," said William Kwan, a gold dealer in Singapore for Phillip Futures, to Reuters earlier.

"In the spot market I am looking at $945 for the upside.

"Looking ahead, "we may see some sell-off after the Fed's announcement," reckons Ronald Leung of Lee Cheong Gold Dealers in Hong Kong. "Gold may consolidate after that."
http://news.goldseek.com/GoldSeek/1201609770.php


And so we all wait on the edge of our seats for the Great and All Powerful "Fed" to make their magical announcement regarding interest rates. If they cut 50 points, then the message is, "America is on the edge of economic calamity". If they cut but 25 points, then the message is, "We wanted to cut a full ONE point last week, but we didn't want to send the wrong message and make things worse." If there is no interest rate cut announced, then the Fed wasted 75 points last week because the stock market will drop like a brick in the ocean. I just can't help laughing at the whole situation. If the only thing holding the stock market above water is Fed Funds interest rate cuts, then we have already passed the point of no return and the only thing left to hear is the "thud" when we hit bottom. Of course, since we have quite a ways to fall yet, it could be some time before we hear that "thud".

I don't really care what the Fed does. Gold, and Silver, will be going a lot higher in the weeks, months, and years ahead. If for whatever reason the price of Gold, and Silver, goes down...buy more. There will plenty of folks queuing up to buy some that wished they'd bought it last month.

It's a Bull Market folks...ain't no doubt about it.