Sunday, October 26, 2008


Against all odds...Flaunting overwhelmingly supportive negative economic fundamentals...With demand far outstripping supply...And 5000 years of human history as a store of value, Gold has been hurled back to the beginning. The beginning of this "financial Armageddon", August 2007.

On Friday, October 24, 2008, Gold touched levels last seen in August of 2007. Coincidentally, the dawn of the "sub-prime crisis". Birthed as two Bear Stearns hedge funds blew up, the "sub-prime crisis" drew the attention of Gold Bugs across the globe. On September 5, 2007, Gold crossed the Rubicon, and headed straight for 1000. On that day Gold closed at 694.50, breaking a 15 month consolidation of the previous multi-year high from April, 2006 at 730. Gold rocketed to 1000 in six quick months as the "sub-prime crisis" morphed into the "global credit crisis".

The first mushroom cloud appeared on March 17, 2008 when Bear Stearns was vaporized and "financial Armageddon" was unleashed on the world. Gold Bugs rejoiced, "Gold is going to the moon!" Six quick months later, sadly, Gold Bugs find their "precious" right back where it started. Bewildering to say the least.

The global financial system has been nuked into paralysis over the past six months, and Gold has been pushed back into it's box like Jack after one too many cranks. Say it isn't so. Why it's back in it's box is irrelevant now because this IS where we are...back at the beginning. Think of it as a second chance. And think about this: If the price performance of Gold has defied ALL logic in the face of Financial Armageddon, what does that say about how COMPLETELY F*#!ed UP the world financial system is at this moment in time? There is really no adjective to describe this financial state of affairs. Folks, we're talking F.U.B.A.R!

Every effort was made by the "Cartel" to restrain the price of Gold once it broke higher in September of 2007. Central banks around the globe, Western based central banks, sold and leased Gold into the market in quantity in an effort to stop the rise in the price of Gold. They failed miserably, as Gold hit 1000 just as the first of many financial WMD exploded on Wall Street. These same central banks began to realize the error of their ways, and wanted their Gold back. But Gold had gotten pretty damn expensive. If they could only get it back to the prices where they so foolishly "gave it away"... And viola, we are there. How did they do it? Who cares, they did. Now what do we do about it?

Well, for starters, let's not get too excited here. Things are F.U.B.A.R., remember? Gold is showing some strong buying at these prices the past couple of days, but is this buying...or just short covering of shorts established way back in September of 2007? Certainly, there is overwhelming demand for Gold in the "physical" market...the retail world. But what of this bogus "paper Gold market"? Can we ever expect to see "demand for paper Gold" again. Recall, the paper Gold market is a derivatives market. There really is no Gold in this market. It is a market full of "promises". Not unlike the Mortgage Backed Securities market, the Credit Default Swap market, or the US Dollar market for that matter. Substitute the word "debt" for promises, and you get the picture.

Do we wait for the inevitable demise of the paper Gold market to buy Gold again? The default of the CRIMEX? You could, but were that to come to pass, that would be like trying to hop a bullet train as it speed across the countryside. Clearly, physical bullion is moving higher in price as this financial calamity engulfs the world. Curiously, the central banks have made it very difficult for the people to get their hands on Gold as this financial crisis escalates. National mints have all but suspended production and sales of bullion coins. How can the mint of a sovereign nation come up empty when the countries they represent "supposedly" have millions of ounces of bullion in their reserves? The US claims to have the worlds largest Gold hoard, and the US Mint, mandated by law to produce Gold and Silver bullion coins for public consumption, cannot get the bullion to do so? They claim "unprecedented demand" for their inability to produce these coins. BULLSHIT! Demand for coins in 1999 prior to the Y2K scare far outstripped demand today, and not one ounce of production was suspended or even slowed. Congress passed the law mandating the Mint produce these coins. Why are they not investigating this "disruption" of a congressional mandate?

No, that is not going to happen. Western governments do not want the public to have their Gold. The world is far to big for them to "take" the Gold that the public presently possess. A replay of FDRs Gold Swipe following the depression isn't very practical today. So, instead, the government is determined to see to it that the Gold is withheld from us.

Gold is the enemy of the state. A Gold backed currency would force government to be accountable. A Gold backed currency would force government to curtail deficit spending. A Gold backed currency would bring government to it's knees, and give the country back to it's people. It is doubtful the government would sit idly by while the people reassert control of the country the way the Constitution intended. Not without a fight. And that fight will come one day...they call it a revolution. And it is a lot closer than anyone can imagine.

But what do we do about Gold right here, today? Buy it fool! Buy as much of it as you can get your hands on. And don't forget Silver. Buy, Buy, Buy! The US Constitution states clearly that all coin will be of Gold and Silver. The day will come, in the not too distant future, where you will be glad you bought and paid for the real thing. Those dumping their worthless CRIMEX futures contracts today are already lining up to buy the real thing. Don't get caught holding the door for them.

The lessons we have learned from the paper Gold and Silver markets, and buying Precious Metals on "margin" have been painful. Very painful. Learn from your mistakes. You only get one second chance.

Dis-Information Specialists Ply Their Trade
Demand for physical precious metal is welling up, with significant and growing premiums being paid for physical metal, due to smart money migrating into the tangible space before it is widely understood by the general investing public the true extent of mismanagement and malfeasance at the highest levels of our existing monetary order. This is the REAL story that BNN has not reported.

In recent days, anecdotal accounts are beginning to surface that “major off-market transactions” are occurring at much, much higher prices. One such account rumored earlier this week was that a major trade in the physical market occurred between two non-U.S. players at a price equivalent of $ 1,075 per ounce. Perhaps more interestingly, the deal apparently was settled in EUR not DOLLARS.

It is a fact that a great deal of what ails our global economic sense of being is our current “un-backed” fiat monetary system which has been ABUSED by Central Bankers through unbridled credit creation and money printing. In light of what has occurred – precious metals in general and GOLD in particular is now reasserting its historic role as a “go to” wealth preservative.

To counter act and remedy their own largess; it is Central Banks and their proxies that have ruthlessly ENGINEERED the harsh credit crunch we are currently experiencing and merciless, coordinated price-take-downs in strategic commodities, including gold, utilizing futures markets - in vain hopes of re-instilling confidence in their now failing paper money system. For anyone who suggests that these claims are false on the basis that gold is not money; just ask them why it is that EVERY Central Bank on the planet lists gold bullion on their balance sheet as an “OFFICIAL RESERVE ASSET”?

U.S. has plundered world wealth with dollar
BEIJING (Reuters) - The United States has plundered global wealth by exploiting the dollar's dominance, and the world urgently needs other currencies to take its place, a leading Chinese state newspaper said on Friday.

The front-page commentary in the overseas edition of the People's Daily said that Asian and European countries should banish the U.S. dollar from their direct trade relations for a start, relying only on their own currencies.

A meeting between Asian and European leaders, starting on Friday in Beijing, presented the perfect opportunity to begin building a new international financial order, the newspaper said.
The People's Daily is the official newspaper of China's ruling Communist Party. The Chinese-language overseas edition is a small circulation offshoot of the main paper.

Its pronouncements do not necessarily directly voice leadership views. But the commentary, as well as recent comments, amount to a growing chorus of Chinese disdain for Washington's economic policies and global financial dominance in the wake of the credit crisis.

"The grim reality has led people, amidst the panic, to realize that the United States has used the U.S. dollar's hegemony to plunder the world's wealth," said the commentator, Shi Jianxun, a professor at Shanghai's Tongji University.

Asia, Europe reach consensus on financial crisis
BEIJING (AP) -- Asian and European leaders said Saturday they have reached a broad consensus on ways to deal with the global financial meltdown and will present their views at a crisis summit next month in Washington.

Speaking at the close of a two-day Asia-Europe Meeting in China's capital, the leaders called for new rules for guiding the global economy and a leading role for the International Monetary Fund in aiding crisis-stricken countries.

The biennial forum, known as ASEM, generally does not make decisions, and a statement issued by the leaders indicated how much the crisis in global markets has driven world opinion and institutions.

"I'm pleased to confirm a shared determination and commitment of Europe and Asia to work together," EU Commission President Jose Barroso said at a closing news conference.
He said participants would use the statement as the basis of their approach at the Nov. 15 Washington summit of the 20 largest economies.

Although short on details, the statement, adopted Friday, calls on the IMF and similar institutions to help stabilize struggling banks and shore up flagging share prices.

"Leaders agreed that the IMF should play a critical role in assisting countries seriously affected by the crisis, upon their request," it said.

Participants also agreed to "undertake effective and comprehensive reform of the international monetary and financial systems," the statement said.

The US Dollar's days as the World's "reserve currency" may be seriously numbered here. Asia and Europe certainly no longer need the US Dollar to conduct business between themselves. The US Dollar is fast becoming WORTHLESS as a currency. As the dust eventually begins to settle on this financial firestorm, the US Dollar will be quickly sold for tangible assets, and currencies of value...Gold and Silver. This is the Sale Of The Century. Why do you think the sale items are so hard to find? If it's available, the real thing, bullion, BUY IT!

1 comment:

  1. Hello Greg,

    So, why should all of humanity be forced to suffer and struggle any longer, now that the entire global financial system has been exposed as a mind-boggling deception, within many other deceptions? No one in their right mind would continue to be enslaved by a proven deception, which is also proven to be undeniable slavery-by-proxy !!!

    The derivatives scams alone have grown to more than 10-times the entire global GDP (at last counting) and are now failing because the scam/pyramid scheme broke and exposed the deception for all to see. A significant portion of global wealth and power was created and propped-up using these and other now-proven smoke and mirrors and house of cards illusions and delusions.

    These deceptions have grown many times larger than the rest of the entire world economy. Consequently, there is no way that all of the world's governments combined, who themselves borrow so-called "money" from other central-bank smoke and mirror deceptions, can solve this debacle, by using more smoke and mirrors money scams. The only solutions they are offering will take centuries to repay, if ever.

    Here is Wisdom...