Our favorite Internet sites for gold and silver information are Goldseek.com, GoldReview.com, Silverseek.com, CapitalUpdates.com and Howestreet.com.
US MARKETS
We would like to comment further on last week’s article concerning the Free Trade Area of the Americas (FTAA), which if it becomes a reality will spell the end of the American Republic, as we have known it.
Proponents of FTAA, elitists and those the elitists have purchased, want us to believe that this is all about economics and free trade in the process of commerce. Thus, they tell us the economic gains will outstrip any other inconveniences such as unlimited legal immigration, no borders and rampant crime and drugs. We will be giving away everything and receiving all of the above and more in return. FTAA will be the worst of all nightmares. This is not about free trade; it is about managed trade and globalization. Trade is about to be hyper-regulated. That means an international command economy run by transnational corporations. The perfect model of a corporatist fascist economy that has been used repeatedly through the centuries, which has always been unsuccessful. All labor law will emanate from FTAA headquarters as will everything else. Everyone will be paid on the same scale no matter how good or bad they are at their jobs. All work conditions will be similar. Our whole lives will be micro-managed. We have seen the beginnings of what is to come in the relocation of business, services and outsourcing, which is only scratching the surface. Our economy has already been irreparably harmed and if FTAA were to become reality it would be an economic and financial disaster for every American now and for generations to come. You can see the results in our current jobless recovery, which our government lies about daily. There is no recovery in spite of the creation of over $1 trillion by the Fed and others. There can be no recovery and the elitists know that. It is just another delaying action until the time is right to finally take down the US and world economy and usher in world government. What jobs are created are low paying and concentrated in services. We are not creating jobs and this newsletter proves that month after month, exposing the elitist lies. Manufacturing and high-tech jobs are going to India and China and to some extent Eastern Europe. The Internet is a wonderful thing. It has helped us and others bring the truth to the people, but it was made to order for outsourcing technology and services. By regulation, our Congress at the behest of these elitists has hamstrung American industries that operate in the US. At the same time, they have made outsourcing easy, attractive and financially positive. US industry and services are being regulated and taxed out of existence. Corporate and government capital is being transferred for investment in the third world.
One thing you can be absolutely sure of is that FTAA will bring about the end of American independence. Thus, this hemispheric trade regime is really just the foundation on which to erect a hemispheric and then world government. What will be lost by Americans is our Constitution, our banking system, our ability to levy taxes, our police and military and our freedom. These are not the mutterings of an old man. This is the reality of our time and if you want proof of what the elitists are up to just look at Europe. When we began to write about the European Common Market and EFTA in 1967, absolutely no one was listening. We are now undergoing the same process via NAFTA, CAFTA & FTAA that Europe underwent in the 1980s and 90s; only all the mistakes have been worked out, so the success of FTAA will be quick in coming. Regionalization is the ploy being used by the CFR, Trilateral Commission, Bilderbergers and the Royal Institute of International Affairs in London to bring about world government. World government will guarantee the global triumph of socialism in the form of world fascism that Adolph Hitler pursued for 15 short years – another elitist experiment, which they funded and directed. You can now see more clearly what the elitists have in store for us if we do not stop them. This political revolution will sentence us to perpetual bondage.
The US puppet government in Iraq will extend a month-long ban on Aljazeera’s reporting. God forbid someone should report the truth. This is a statement by an anti-Democratic government. It is against all the nations of war and freedom. Aljazeera was outraged by the decision and rightly so.
That meathead in the White House told us over a year ago that the war was over. In August, it was over for 1,100 of our young men who were wounded. That was by far the highest combat injury toll for any month since the war began, as the conflict increases in intensity and the fighting continues in urban areas, often house to house. The official deaths are 979 and 7,000 wounded. We do not for one minute believe these figures, especially the wounded. We’ve been told there are over 30,000. Plus, we have over 800 dead mercenaries. In August, the government says we lost 66 men. A sad commentary.
The Republican Party before and after the November elections is going to lose their conservative backers. The party is totally out of touch with the people who made it successful.
The budget deficit is preposterous and out of control. The balance of payments deficit is in orbit. Foreign policy is a shambles and even our allies hate us. George W. Bush and his neocons have taken the party on a trip that can only bring catastrophe not only for the party, but for the country and perhaps the world. Any Republican and any Conservative has to question the direction in which we are headed. Republicans are going to have to decide if they really want big government and whether they want to perpetually fight the entire Muslim world. What Republicans really do not understand is that their party has been transformed into a fascist party. At the same time you have retiring baby-boomers and a growing Latino population. The retirees are concerned about the solvency of Social Security and Medicare and Latinos want the best for their families just as other immigrants have in the past. Many Republicans and Conservatives see the party moving closer to the UN and internationalism. They also believe free trade is endangering the economy and we are tending toward protectionist measures, which is the antithesis of the elitists’ drive within the party toward one-world government. On its current course, we believe the Republican Party could begin to self-destruct over the next few years.
Young Republicans at their party’s national convention were united in applauding the war in Iraq, but few of them were willing to enlist to relieve the dire troop shortage. They find it convenient to let others do their fighting for them. We notice no poll was taken at the convention concerning the draft. We wonder what their response to that would have been.
Fox News has reported 6,500 NATO troops are coming into the US accompanied by 1,500 vehicles. The excuse is all our National Guard and Reserves are in the Middle East and NATO is here to help us. We have told you readers over and over that eventually foreign troops would be brought in to control our society supposedly against terrorists, this could be it. The beginning of foreign occupation.
In the weekended August 23, M3 rose a huge $36.5 billion, a figure not available to us as we published our last issue. That is more government censoring. That number alone should break gold out over $433. Be patient it is coming.
More for subscribers....
GOLD, SILVER, PLATINUM, PALADIUM AND DIAMONDS
Newmont Mining expects gold to trade between $380 and $450 an ounce for the next 12 months and possibly higher because of a poor outlook for the dollar and the US economy.
Annual gold demand on the Chinese mainland is expected to triple in coming years as a result of ongoing market deregulation. That is an increase of 200 to 600 tons a year, based on the effects of a similar market deregulation in India. Four hundred tons a year would come from imports. Gold demand was up 30.8% year-on-year to 51.5 tons during the second quarter, of which 50 tons was for jewelry and 1.5 tons for retail investment. The mainland’s gold demand reached 207.6 tons last year, up from 203.9 tons in 2002 and 10 tons in 1982. The Chinese government is also alarmed by the inflationary potential of vast private savings and so may be encouraging gold purchase as a way of decreasing demand. China’s official central bank reserves are 600 tons or 2% of total foreign reserves, compared with the ECB’s 15%. We would expect, in an effort to dump dollars, eventually the government would buy more gold, if it has not already. China’s foreign exchange reserves are $US470 billion the second highest in the world. China is also consuming 50 tons of platinum a year for jewelry. Gold is making a major comeback with the promotion of “K gold,” or 18-carat gold as a less expensive alternative to platinum.
The silver deficit is between 50 and 100 million ounces a year and there cannot be much silver left in inventory. Most of the dealers we talk to say delivery is being made from Penoles in Mexico and they are newly minted bars. Industrial and jewelry usage is 840 million ounces a year. Only 25% of mined silver comes from silver mines the remainder is a by-product of the mining of copper, lead and zinc. Silver, like gold, have been long neglected commodities except to the US government, which has continually tried to suppress their prices. Commodity prices have been strong and will remain strong as long as we have inflation. The minute inflation stops 30% of production could easily shut down. That would see silver even higher. Silver demand is relatively inelastic thus when production falls, demand remains relatively the same and can rise. This makes silver an explosive situation especially if there is a silver ETF, Exchange Traded Fund. The gold ETF will soon be approved. We believe the silver ETF will be far more popular than the gold ETF, and that will put additional upward pressure on prices. We could be talking about $2 to $3 billion fund of 320 to 480 million ounces or 4 to 5 years production. The ETF will offer great conveniences, which have not been available in the past. Many investors just do not want to take delivery of heavy bags and bars or pay to store them. The ETF will kill the hassle and make it easy. We see the ETF in silver being ready during the second half of 2005. The end result will be mega leverage. Buy silver now before prices rise again. Our favorite is 90% silver bags, which we believe have been 95% melted. If we are correct, they are already semi-numismatic.
Barrick Gold’s CFO, Jamie Sokalsky, says Barrick’s gold price forecast is even higher than Newmonts. He expects it in the high $400.00’s by the end of this year, which matches our projection. Industry hedge buybacks are in full swing and Barrick will use gold price volatility to keep reducing its own hedges. Barrick is capitulating before they too are bankrupt like Sons of Gwalia. Barrick, the central banks and other hedgers are caught in a crossfire. It’s now every man for himself. The gold cartel has been broken. There will be rear-guard actions, but this is the beginning of the end of cartel control and suppression of the price of gold. Physical off take has defeated one of the biggest frauds in financial history.
Failed miner Sons of Gwalia said it had received a preliminary report on its gold reserves more than a month before it was forced into administration. This should bring many lawsuits. Based on material deterioration it began contacting its lenders and hedging banks to seek an enforcement standstill on July 22, five weeks before it called in administrators on August 29. We believe this constitutes cause for action reaching back to October 2003 and with damages and legal costs could end up in a $1.3 billion judgment. We also would like to see an investigation of the sellers, especially large sellers, over the period of 7/22/04 to 8/2/04. We believe shareholder attorneys and the SEC will find that J. P. Morgan Chase, Goldman Sachs and other were sellers on inside information.
Last week we touched on the incompetence of the World Gold Council as it squanders another $17 million of gold producers hard earned cash on jewelry promotion.
England’s Royal Mint engineered the attack on silver last Wednesday and it was probably to cover a short. Silver looks to have bottomed at $6.10, it is now possible for silver to have a major rally after the commercial shorts have covered and the spec longs have run for cover. We only have 7 weeks to go and the election will be over. Then gold and silver will take off, maybe even before the election. Every single market is being rigged so that evil buffoon in the White House can be re-elected.
Rumors say Lihir may be the next victim to follow Sons of Gwalia down the chute.
The views contained here may not represent the views of CapitalUpdates.com,
its affiliates or advertisers. CapitalUpdates.com makes no representation,
warranty or guarantee as to the accuracy or completeness of the
information (including news, editorials, prices, statistics, analyses
and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or
materials contained on or within this website, without the express
written consent of CapitalUpdates.com, is strictly prohibited. In no
event shall CapitalUpdates.com or its affiliates be liable to any person
for any decision made or action taken in reliance upon the information
provided herein.
International Forecaster September, 2004 (#3) - Gold, Silver, Economy + More
