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Michael C. Ruppert
2002, From The Wilderness Publications, www.fromthewilderness.com.
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Dec. 31, 2002, 12:00 PST (FTW)
-- Not only is gold set for a long-term bull market, it
is becoming a weapon in the global war to curb blatant
U.S. aggression. And while this premise is supported by
recent developments in Asia and Australia, there is also
a surprising indication from the Federal Reserve that a
controlled burn philosophy will actually support the trend.
a major U.S. economic crash as a result of oil price
spikes and deflationary
pressures that might destroy dollar hegemony, there are
signs that the Fed might reintroduce gold in one way or
another into the U.S. monetary system. Either way, the
gold "cat" is out of the bag.
With gold prices having broken
the $350 barrier -- an increase of more than 25 percent
this year -- two other developments are signaling a global
rush to gold. I stress again that when I say gold I mean
physical, in-your-possession gold, not gold derivatives
First, as reported by Reuters
on Oct. 28, China, via the newly opened Shanghai Gold Exchange,
has allowed investment and private purchases of gold by
its population. Being one of only two worldwide trading
exchanges that trade in physical gold, this move is certain
to increase demand as deflationary pressures indicative
of a global depression start to become visible.
This upward pressure on gold,
compounded by war fears, oil price spikes and a teetering
U.S. economy made itself visible on gold markets just this
On Dec. 19 Reuters reported
panic buying of gold in Tokyo and Australia. I agree with
observers who say that this has less to do with Iraq than
with a global effort -- unacknowledged by the major media
-- to exert pressures on the U.S. economy. The world might
not find it possible to stop the U.S. military from doing
anything it wants. But it is possible to pull the plug
on the financial engine that feeds the military, and this
is where the Empire's feet of clay begin to show.
Just recently, speaking at the
Economic Club of New York, even Alan Greenspan, mentioned
gold, choosing to open his remarks with subtle hints that
deflationary pressures might foretell the reintroduction
of gold into the U.S. monetary system to prevent the dollar
from going into free fall. Recent cuts in interest rates
have not sparked economic growth. That's a surefire deflationary
warning, especially with rates near the basement.
long the likes of J.P. Morgan, world central banks, Goldman
Sachs and others have
sat on the price of gold, and that cartel is getting ready
to try to do a "controlled burn" on the bust out.
Either way, physical gold prices
are going up -- way up. There might be peaks that show
small declines at around $380 and $450 an ounce but I agree
with analysts who say that $500-to-600 gold is not only
possible, but likely, within the next 18 months. After
that, depending on how soon the impacts of peak oil begin
to be felt, gold at between $800 and $1,000 an ounce is
not out of the question at all.