Armageddon on the Horizon
Most of the readers coming to 321gold.com have a pretty good idea of where I stand on the war in Iraq and the coming Armageddon in our financial system. Well, it's coming but a few too many people are too pessimistic on the dollar and that suggests to me that both the dollar and gold are due corrections. Gold has gone up 10 out of the last 11 weeks and that's probably overdoing it. Nothing goes straight up or straight down.
It's probably heresy to suggest gold might ever go down, gold bugs are a loony group. I'd be lot more popular if I were a far more vocal cheerleader under all conditions. But the cheerleaders are popular solely because they tell people what they want to hear rather than what they need to know. And as a result the sheep following them lose a bundle of money on a regular basis. Nobody has all the answers and all any of us are doing is giving our opinion. You will tend to do a lot better if you follow common sense and ignore the crowd. Ignore the cheerleaders as well.
I did some
figures on the drop in silver from April 2nd to May 12th or so
of this year. The number of outstanding contracts dropped from
125,000 to 75,000 as the price plummeted by $3. It's hard to
figure out exactly how much money was transferred from the hands
of the silver bulls to the hands of the silver bears but it was
in the $10 billion dollar range. Just because some fool comes
along and whispers sweet nothings in your ear doesn't mean you
have to believe every word. Cheerleaders lose their followers
a lot of money.
Not today though. When too many people know the "facts" they cease to be facts. And too many are too bearish on the dollar.
The real issue is probably going to be the nature of the crash. Lots of people want to believe as Stephen Roach and John Maudlin that we will "muddle through" before the crash. "Muddle through," my butt. Not with $100 trillion dollars in debt world wide and a US government debt of $70 trillion. In my opinion, we're going to have a sudden, surprising to most, catastrophic crash.
The Bush administration guarantees it. This "Gang of Fools" couldn't shoot straight if they had a cannon aimed at their feet. They don't have clue one. For all that is said about Iraq (remember when it was because of WMD and Saddam?) we are spending $1.5 billion dollars to steal $500 million dollars of oil a week. I wouldn't dream of appealing to the sense of morality of the "Gang of Fools," they don't have an ounce of moral sense between them. But spending $80 billion dollars a year to steal $30 billion dollars worth of oil doesn't make a lick of sense. And don't tell me we went to war to rid the world of Saddam. He's in a jail cell. Why are we are war with the Iraqi people? They didn't do anything to us.
the war is in the final stages before we declare victory and
bring our troops home. You know that when you get to the War
Crimes stage, the war is pretty much lost. If any reader has
forgotten the picture
of the murder of a VC suspect in 1968, you may want to see it again. When
you give away the high moral ground in a war, it's all over but
How many people
remember this quote? "In the ranks of that regime are men
whose idea of courage is to brutalize unarmed prisoners,"
Bush emphasized to U.S. Central Command troops during a visit
to MacDill Air Force Base in Tampa, Fla.
Just because the US has collectively and totally lost its moral and financial compass doesn't mean the rest of the world has. We have turned all the goodwill earned over 230 years into scorn and it will soon metamorphose into loathing. The Chinese, Japanese and Saudis each have the ability to pull the rug right out from underneath the dollar. When they do: and any one of them could do it, [also here] our world will change forever. Shooting prisoners in the head in cold blood is only one way of waging warfare. There are others.
Anytime I write
something which even faintly smacks of being anti-Tyrant, two
or three clowns crawl out of the woodwork and send me mindless
prattle about my being a "Liberal" or "Commie."
And how I should be grateful to live in the land
of the free and the home
of the brave.
I cannot fault
those in Iraq who defend their country against tyranny. I only
wish a few more Americans would defend their country.