War is a continuation of politics by other means said von Clausewitz. What we say is war is a continuation of politics and economics by other means. That quickly highlights the subject of oil, which is why we are in Iraq. The elitist neocons have told us they will stop at nothing to secure oil, domination of the American people and world government. Part of that agenda is the total suppression of the American people. These evil people will be ruthless and un-forging.
If the United States does not leave the World Trade Organization, WTO, it will destroy our country. Last month US farmers were forced to appeal to a dispute resolution panel in Geneva, Switzerland. The WTO bans all subsidies and in this case, the WTO said between 1999 and 2002, American farmers suppressed cotton prices and injured Brazil’s interests. Due to the very fact the appeal is being held by WTO, we lose no matter what, because the Bush neocons are validating the WTO’s authority to regulate our nation’s economic policy. WTO, NAFTA, CAFTA, EU, IMF, World Bank, and the UN are part of the effort to build a new world order based on the radical redistribution of wealth.
Almost a year ago, in 3/04, the WTO issued a strong anti-US ruling. WTO said our congressional legislation banning Internet gambling violates the terms of the General Agreement on Trade and Services (GATS), which is supposed to facilitate free trade in services. GATS are a process in which a multitude of anonymous foreign bureaucrats reviews local, state, federal licensing and certification standards. Under GATS, there are no sovereign laws other than the United Nations.
WTO approved punitive taxes in outlawing the Byrd Amendment, which authorized the imposition of tariffs to protect various industries from dumping, thus, we now have wholesale dumping of cheap slave labor produced goods on our markets. Remember, under WTO, there is no accountability. This ruling allowed the EU, Japan and five other countries to put tariffs on American export goods unless we repeal our legislation known as, the Byrd Amendment.
George W. Bush is the most ardent free trade President in American history and limited trade and protective tariffs are part of what made America great. It stopped foreign governments from despoiling American industry. In just the last 20 years, because of free trade and globalization, we have lost 65% of our industries and about 40% of our exports. Is it any wonder why we have an enormous current account deficit? Worse yet, if we continue on this course, it will destroy our nation. Instead of a 5.7% of GDP deficit, we will have 8% and a dollar worth 35% less than it is today. All these trade agreements are designed to dismantle the American economy and rob us of our sovereignty. They bring no mutually beneficial exchange between buyers and sellers, due to continued trade intervention. Our national sovereignty is an impediment to free trade and from the internationalist viewpoint has to be destroyed. There is absolutely no way we can complete and prosper under free trade. US policies should not be decided by an international bureaucracy. WTO is intended to dictate the rules governing regional trade pacts.WTO makes all the final decisions. In our nation, in case our leadership has forgotten, our constitution assigns to Congress the power of regulating Commerce with foreign nations, as well as imposing taxes and tariffs. All these trade pacts are unconstitutional and this global trade system undermines our independence and puts our economic destiny in the hands of foreigners who want to make us an obedient second-class nation. You should also remember that the UN charter was written in part by communist spy Alger Hiss. Today’s trade agreements espouse a planned international economy and full-scale political control of production, trade and monetary exchange. It has no room for free private enterprise. These pacts entangle us in international alliances and multilateral bodies to which we must submit. American businesses that move offshore do not know what they are getting themselves in for. Soon everything they do will be controlled by the pacts and in the meantime, what they have done has contributed to the demise of our once great nation. American membership in WTO is illegal and we should withdraw from WTO and all these other illegal trade pacts. It is time for Rep. Ron Paul to reintroduce legislation to end our participation. If we do not try, we cannot win.
The intent of the recently passed Intelligence Act is to reorganize, centralize, and politicize intelligence and police powers. It is also to make sure nothing is leaked to the public. They must be kept completely in the dark as to what our government is doing in the intelligence world. Our elitist leaders believe we have no need to know. Only totalitarian regimes have need for an intelligence czar; constitutional republics do not. We spent several years in counter intelligence so we know a bit more about what is needed than our average politician. The recent legislation unfortunately made no effort to clean out officials in the existing intelligence agencies who are guilty of criminal negligence, corruption, cover-ups and worse. Malfeasance is rife in the community and it will get worse as the agencies are politicized. A good example is the recent purge at the CIA. There will be no effort to improve our border security, immigration and customs. There is no effort and there will be none to apprehend, round up and deport illegal aliens who present a threat to our nation. This bill does absolutely nothing to protect America and Americans. It is a consolidation of intelligence power to be wielded by elitists. All the act had done is centralize controls of intelligent agencies and cut them off totally from the public.
California in its latest contest for governor again managed to snatch defeat in the face of victory. They elected Arnold Schwarznegger who is anti-gun, a social liberal, pro-abortion and a homosexual. Arnold will not pull California out its financial morass, some $82 billion in debt; he is headed for the Presidency. That is, of course, after they change the constitution and expunge his family’s Nazi past. He really fits with today’s group in Washington, doesn’t he?
The number of American servicemen and women, who have fled the US and are AWOL and are in Canada, are now up to 5,500. They have applied for refugee status and many are from top combat outfits such as the 82nd Airborne. They are listed as common criminals and they are posted on “wanted lists” by the FBI, state police and the Department of Fatherland Securities.
Has the consumer finally reached their limit? We do not know yet, but the Fed figures reflect a new changing story. Consumer credit outstanding fell by a record $18.7 billion in November to $2,085 trillion. That follows a $9.5 billion rise in October. Are people finally getting smart and reducing debt?
The latest word out of Paris and we are sure, the French are speaking for Europe, is you had better defend the dollar or we will cut your money off.
McKesson, the nation’s largest drug distributor has agreed to pay a $960 million fine for fraud. It never ends. A fraud a week and none of the elitists go to jail.
The Bush neocons have warned Russia against selling missiles to Syria. Russia has denied such plans.
The Supreme Court is considering whether spies recruited by the CIA can sue the US government for promises of payment that were broken. These claims, of course, compromise national security. Can a secret agreement be enforced in Court, even when the CIA is not willing to acknowledge its existence in the first place? Even if the spies win, we believe it will be very difficult in the future for the CIA to hire spies to spy on their own country.
California says it has lost 200,000 jobs to China over 14 years as the US-China trade deficit ballooned from $6.2 billion to $123 billion. First it was labor-intensive losses and now it is production of computers and telecommunications equipment. These are BLS statistics, so who knows really how great the losses are.
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GOLD, SILVER, PLATINUM, PALLADIUM AND DIAMONDS
In spite of higher gold prices, world gold supply will continue to trend lower. New projects are set to generate 80 new tons of gold in 2005. This will not offset production shortfalls. Gold was flirting with $460 only a month ago and now is trading in the $420 area.That means those getting married in India will be happy with having to pay less for a gold dowry and jewelry buyers will be happy with lower prices, which is sure to boost sales.
Last week silver stocks fell again almost 500,000 ounces to 102,890,317. Silver is tight again and we may soon see a break under 100,000,000. Our calculations, when comparing the euro with the gold prices, shows us that gold versus the euro is selling for $30.00 lower than it should be. That shows you the extent of the manipulation by George and the neocons and the Fed. At $418, it also shows you how over sold gold, and the shares are. The correction was expedited by the Fed and the Plunge Protection Team, but that is all right we would have had a correction anyway, whether it was from $480.00 or $455.00. The correction was sharp and quick and that is good, it is over with. Do not forget we are still in a four-year bull market and we cannot go straight up. The rise from $252 to $455 has been a good one and we cannot be foolish enough to think that we are not going to have corrections.
The dollar will remain under pressure even if the US tries to support it. If they do, other factors will still drive gold higher. Investors are beginning to remember gold is the only real money and once stocks, bonds, and real estate begin to slide you will begin to see professionals finally start to move into gold. If for no other reason they want to be able to buy something that is going up and in this case, particularly the gold shares that are tremendously undervalued. Do not forget that in just over three months the Blanchard anti-trust case against JP Morgan Chase and Barrick Gold goes to court. If it goes to court, the manipulation will be laid bare for all to see. The manipulation will be fully exposed. Barrick has already asked for and was refused dismissal because they contended they were acting for the US government. The Exchange Stabilization Fund, which is part of the Treasury Department and the Fed are going to have to answer to Congress once the matter is exposed.That should end their intervention. This government-sanctioned lawlessness will have citizens outraged. They will be able to see how Morgan, Goldman, Deutsche Bank Citicorp, Merrill Lynch, AIG and others worked with the government rigging gold and silver prices. Some of these entities will take major losses on their leased and derivative positions. Do not forget many of these entities are short and may have to cover acting as a springboard for prices, and that the physical market is raging and the gold suppression cartel cannot do a thing about it. The unwashed of the world are buying gold and the elitists cannot stop them. Their buying is unrelenting. The propaganda has not stopped these buyers for one second and remember that Americans, Canadians and Europeans for all intents and purposes are not even in the market yet. They are too busy leveraging themselves in stocks, real estate and debt.
The supply of gold continues to decline from mine production. In the third quarter, it was down 22.4% at 828 tons versus 1066 tons in the third quarter by 2003. There is virtually no funding for exploration to replace those reserves as companies devour each other trying to stay in business, because they cannot or will not spend money on exploration. Reserves are falling at an historic rate and do not forget it takes four to seven years to get a mine into operation. Out of every 100-exploration efforts only one becomes a mine.
Rob McEwen, put a $12 price target on Glamis Gold shares, which is trying to acquire Goldcorp. That is a third lower than Glamis’ closing stock price. We wholeheartedly agree with Rob McEwen. Each time McEwen has looked at Glamis, over the past 12 months, he has found nothing that creates value for Goldcorp. If a merger were forced on the company, the takeover would send Glamis shares down as Goldcorp shareholders bailed out. Goldcorp shareholders taking Glamis shares from a company whose stock is trading in the stratosphere, is not a way to build value. Goldcorp shareholders should vote to purchase Wheaton River and reject any bid from Glamis
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International Forecaster January, 2005 (#2) - Gold, Silver, Economy + More
