In 2000, the Kaiser Family Foundation found 15% of uninsured children went without prescription medication in the previous year because of cost, as did 28% of uninsured adults. Eighty-seven percent of uninsured people with serious health problems go without some medication, 67% of Americans have no drug insurance. American drug prices are 70% higher than in Canada, which is the result of greed by the Parma-Cartel. Drugs do not save millions of lives if half the public cannot afford them. This is the same problem faced by National Health in England in the 1950s, which almost resulted in the nationalization of the drug industry there. We do not need a drug import program. We need drug manufacturers to sell to us at the price they sell to everyone else throughout the world.
Now George and the neocons tell us, that only the Justice Department, and not the voters themselves, may sue to enforce the voting rights set out in the Help America Vote Act, which was passed in the aftermath of the disputed 2000 election. Congress clearly did not intend this interpretation. This is the first time in history the Justice Department has gone to court to side against voters who are trying to enforce their right to vote.
Due to personal, corporate and government debt in America a falling dollar is a calamitous event that could well shake the US to its core. The dollar index was 140 in 1985 and about 80 in 1994. It recently traded into the support zone, we predicted at 84.5 to 85. We believe a test of 80 is eminent and if 80 is broken and if we head to 70 the dollar will cease to be the world’s reserve currency. All central banks manipulate their currencies, but over the long term, the free markets will decide which way currencies will go. The real problem for the dollar is fiscal and monetary profligacy. The result is a current account deficit of 5.7% of GDP and interest rates so low that business believes the Fed might just as well give money away. That problem is accompanied by a fiscal policy and a war that borders on insanity. The result, of course, is after the election comes the deluge. Tax receipts are falling, we have sent a great part of our manufacturing capacity overseas, we are doing the same with services, unemployment is about to rise again and outsourcing is stealing our service jobs. Making the situation more difficult is that inflation is already rampant in spite of government lies to the contrary. In addition, we have bubbles artificially created in stocks, bonds, real estate and pensions. At this juncture, if we raise interest rates we will slow the fall of the dollar, but we will also slow the economy further, which in turn will break the bubbles that are already losing air. Those who believe being in US bonds will save them are mistaken. Euro and Swiss franc bonds and CD’s are much more preferable. As I said last week, even TIPS cannot protect you because our government lies about inflation and they are now recalling bond issues.
Even through Europe is expensive; Europeans now make more money than we do. They are not concerned about goods in dollar-terms. The euro will go to $1.60 from its current $1.28 and European wages will rise. On the other hand, Asian countries will be competing with a depreciating dollar as well as holding about $300 billion in dollar assets.
The new US $20 bill, the new Canadian $20 bill and the new euros all contain RFID chips. You can put them in the microwave and see the chips fry. This is just another phase of Patriot Acts I and II and the formation of the Department of Fatherland Security. Now we have new legislation for the de-facto national ID that was passed, which will probably include chips for fingerprints and biometric data. Included in the proposed measure is legislation rendering foreigners to be detained without charges and tortured. If passed, we are next.
England has the Prevention of Terrorism Acts and Civil contingencies Bill, which contain the same provisions as Canada’s C-7. As we reported last week the EU has introduced measures for the compulsory fingerprinting for all passports, and the UK and EU want iris scans in addition to facial scans and fingerprints. A major database is being constructed for all participating countries that include credit and personal information. You have no protection whatsoever from any of these countries. They are determined that they will know what everyone is doing, so they can control you. You are tracked even if you do not travel in the US. It is reported to the US. Incidentally, we know for sure this air tracking system is already working and being used. As we previously reported all major credit reporting companies in the US are set up offshore. The Bahamas is in the forefront. Then there is the handful of US companies that are contracted by the Pentagon for the Total Information Awareness Program and they get all the US and foreign input. How does it feel to live in a totalitarian fascist state? If you do not like it, move out, we will help, just ask.
About 60 charities, churches and other tax-exempt groups are being investigated for possibly breaking federal rules that bar them from participating in political activities, says the IRS. It looks like the NAACP is number one on the hit list.
Read the article in the New Yorker magazine (11/1/04) edition on the recent travels of Paul Wolfowitz and his commentary on this war in Iraq. There is no question he represents the interest of the Windsor – Rothschild - Black Nobility of Europe. He tells of going native in Jakarta, about his Muslim girlfriend and his Muslim friend Mr. Wahid.
Sheik Zayed Sultan al Nahyan is dead. He was leader of this United Arab Emirates since independence 1971. He was behind BCCI, in which the UAE owned 75% of the shares. BCCI was a money laundering operation for intelligence operations and elitists worldwide. He will be replaced by General Mohammed Sheik who is leading the war against our forces in Iraq and is owner of Goldaphin Stables, the largest horseracing stable in the world.
Our mismanaged government will have to borrow $147 billion in the first quarter of 2005, versus $146 billion last year. For the final quarter of 2004, we only need $100 billion. In the third quarter of 2004, the Treasury was forced to borrow $89 billion. We are at our debt limit of $7.384 trillion as of a month ago. In order to not have this issue before Congress, before the election, our government committed fraud again by cooking the books. The 9/30/04 fiscal deficit was $413 billion versus $377 billion in 2003. If you add in the looting of Social Security, Medicare, and government pensions, the 2004 deficit was over $700 billion, we do not have to have al-Qaeda bankrupt the US, our President and Congress are doing a great job, thank you very much.
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GOLD, SILVER, PLATINUM, PALLADIUM AND DIAMONDS
The mainline un-hedged gold shares are still 20% to 25% off their pervious highs as gold stands, but some $3.00 from those highs. As we write this on Monday, you should be reminded by the time you receive this issue, the mid tier and junior producers will be in the same boat. The exploration stocks are still 20% above their lows, but still 50% to 80% below their highs. Once gold breaks out that will change.
Barrick Gold and JP Morgan Chase started manipulating the gold market in 1988. That is 16 years of rigging the gold market everyday. Can you imagine the billions of dollars that investors have had stolen from them due to the criminality of these people. It just staggers the imagination. It would have to be over $200 billion with the official sanction of the Fed and the US government. Once gold passes $450 every gold hedge position on earth will be under water. Most of the hedging gains will have been taken and the losses will have to written off versus income. Companies like Barrick Gold probably will not make it, just like Thistle did not make it. How anyone can be stupid enough to own shares in a medium to large gold producer that hedges is for beyond what we deem normal. We predict that Bannock already offside $1.7 billion will be $2.5 billion in the red by yearend, because gold is about to explode. They will also be in violation of their covenants, which means they will be forced to buy their hedges in accelerating gold’s upside momentous. There are many other hedges in the same boat and they will be scrambling to buy in positions. Once gold pops, it will run $100 an ounce in no time flat. Load up now because lots of money will be made and why should you not be one of those winners.
In 1997, gold exploration saw $3 billion invested for further development. In 2002, the amount invested was under $800 million and in 2003, it rose to $1 billion. That’s about a 65% drop in six years, which does not bode well for future production. The figures this year could be close to $1.65 billion, but with a seven-year lead-time, any positive results will not be seen in reserves and production until after 2010. Reductions are being seen in Canada and South America and increases in China, Mongolia and Russia. Exploration peaked in 2000 in the US. Less than 10% of the world allocation of exploration funds is being spent in the US, because regulatory agencies are adding bout 35% to exploration costs, these are more land access restrictions, political decisions and unpredictable laws.
We told you Barrick Gold was in severe trouble. They just announced plans to periodically sell up to $1 billion in debt securities. This is in anticipation of major hedge book losses. Anyone who buys this debt paper is insane and should be criminally prosecuted. We can guarantee you, JP Morgan Chase and Goldman Sacks will place the paper and the US government will illegally guarantee it with your tax dollars.
The odds are 5-2 that gold will breakout in November based on the history of November gold movements.
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JAPAN
The Bank of Japan is prematurely predicting an end to the deflation era. They say they will switch into inflation in the first quarter of 2005. They may get a few months of inflation but the rest is wishful thinking. The economy still has to be purged.
CHINA
As we stated it will be sometime before you see a revaluation of the yuan. What we may get is a measured revaluation, which would entail a widening of the Yuan’s trading band against the dollar. That would cause other Asian owners of dollar assets to revalue their currencies and simultaneously they would probably lower their US dollar holdings. That would force the dollar lower which would force the Fed to raise interest rates and for the US Treasury to issue more debt. If the debt is not saleable at current interest rates, the rates would be forced higher and/or the Fed would have to monetize the debt. That would force the entire interest rate structure higher.
Steel production may rise as much as 39% between 2005 and 2010. It is estimated the economy will grow 8.5% next year with an 18% growth in investment. It is expected they will need 2,194 new planes in the next 20 years.
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International Forecaster November, 2004 (#2) - Gold, Silver, Economy + More
