-- Posted Thursday, 23 September 2004 | Digg This Article

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September 2004 (#4) Vol. 8 No. 9-4

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US MARKETS

            The US accepts more legal immigrants than all other nations combined. We are now experiencing, due to the lack of low rung jobs, an epidemic of illegal immigrant crime. The recent wave of immigrants has major medical and social problems. Making matters worse the US and Mexican officials on July 3, 2004 signed an agreement that would allow millions of legal and illegal Mexicans who worked in the US to collect US Social Security benefits. If approved by Congress our President will sign it and hundreds of millions will come over our borders to take advantage of our benefits. There will be a welfare migration. Health care premiums will rocket and more hospitals will shut down due to unpaid bills by this horde from the south. The federal government mandates everyone who seeks care gets care, but they refuse to pay for the care throwing it on the states’ and counties. Across Arizona, New Mexico, Texas, California, Nevada and Colorado hospitals are already shutting their doors. In Los Angeles, due to Special Order 40, if a police officer were to arrest an illegal alien drug dealer for his immigration status he faces severe discipline. That allows illegal aliens to wantonly commit crimes in the assurance that their de facto immunity stands under law. The price for not defeating FTAA is simply unacceptable. If we may quote Henry Kissinger from the L. A. Times of 7/18/93 on NAFTA, which leads us directly into FTAA, “NAFTA will represent the most creative step toward a new world order taken by any group of countries since the end of the cold war, and the first step toward an even larger vision of a free-trade zone for the entire Western Hemisphere. NAFTA is not a conventional trade agreement, but the architecture of a new international system. A Western Hemisphere-wide-free-trade system-with NAFTA the first step – would give the Americas a commanding role no matter what happens.”

            If government tinkers with or alters Social Security after almost 70 years, it will be entering the emotional terrain between fear and destitution in old age and the desire for security and comfort. It was the desire of the designers that Social Security be an individual retirement plan and because of the way the legislation was written, politicians have looted the program all these years unconscionably leaving worthless paper in its place. Social Security was also envisioned as a disaster relief program whose goal was protecting Americans from the hazards and vicissitudes of old age. As you readers know, there is nothing more foreseeable than growing old, but growing old penniless without support is the most tragic of all hazards. The planners knew, being deeply enmeshed in a depression in 1934 that without warning there were events that could wipe out savings and leave the elderly unable to fend for themselves. During difficult times the children of retirees are less able to help their parents as they lose their jobs and struggle to keep their own families afloat. So it was that government believed it had an obligation, under these circumstances, to aid those overtaken by disaster when there was no one else able to help. A depression or very difficult economic times are no different from wars, famines, floods and droughts. Thus, Social Security was born with financial participation from government, employers and individuals.

            The forced transition today by transnational elitist conglomerates from a manufacturing to a service–oriented economy, portends the same problems as the depressionary 1930s - whole industries as well as technological jobs are outsourced out of our country. Globalization, another force to further enrich the wealthy and bring about the decimation of America’s middle class, is another such disaster. Today, government lies about everything - in particular, actual employment and inflation. What savings Americans have are being consumed daily by stealth by inflation. Soon this reality will manifest itself in economic calamity as it did in the early 1930s. Today, even those who have saved and own stocks, bonds, mutual funds and a home could easily lose it all because of the machinations of the powers behind government and the manipulation of all of our markets. No one is immune. If the discount rate goes from 1% to 5%, the Dow from 10,300 to 4,500, and if housing drops in value 30-50%, all Americans are going to be in financial trouble except those in gold and silver assets. Thus, it can and will happen again. Few can protect themselves for that economic calamity. That is the essence of Social Security. Those without foresight are doomed to spend the last 15 years of their life in destitution if forces beyond their control alter Social Security. The system of social insurance has to be fixed and fixed quickly and privatization is not the answer. It exposes the investor to exactly the risk that Social Security seeks to avoid, the collapse of financial markets. This is why we have Social Security to avoid such events. Recent market history means nothing, markets are still totally unpredictable and if the elitists and Sir Alan Greenspan think they can change that they are sadly mistaken. In any economic environment, the benefits promised to beneficiaries of Social Security are sacrosanct. This is the largest source of income for retirees except for the 5%, the very rich. The protective device Social Security has shown us is the only method of protecting our elderly population in any kind of economic environment. Private investment accounts would be ravaged by another economic recession or depression and where pray tell are the funds going to come from to fund this alternative? From out of thin air of course. The budget impact would be staggering. Try bailing out such an investment scheme under the conditions just described, which are entirely realistic. All privatization would do is provide welfare and a bailout for Wall Street. You would be rescuing the thieves and scam artists. Social Security mitigates the potential for economic disaster. It has become the glue that keeps our society together when under economic duress. It provides secure retirement and it shields our elderly from the winds of economic change. It is not the total answer, but it is the foundation for protection. Americans paid for this protection and they deserve it, not some excuse or some investment scheme. Social Security provides a foundation for retirement, economic security, not dependent on the vicissitudes of the market. It is a plan needed by every American and it should be there for them when they need it most.

In Chechnya, Russia forces a situation similar to that of Afghanistan in the 1980s. Both groups are Muslim and tribal. The tribes consist of clans and if they were not fighting the Russians, they would be killing each other. Both regions do not want outside rule of any kind. The job now for the Russians is to defeat Chechen nationalists and uncompromising Muslims and warlords. Due to the political fragmentation, this has to be accomplished before any further negotiations can take place. This is an important goal because rebel movements have sprung up in Ingushetia and Dagestan. Russia has to control the Northern Caucasus region to break US-UK encirclement and to keep the US from dominating Caspian Sea oil. What Russia should do is withdraw, as the US should withdraw from Iraq, but neither will do so. This will have a long war of attrition.

The trade deficit continues to spin out of control at over $50 billion monthly. Every day we are losing more of our wealth and adding to the debt that will destroy our nation. It is of great interest to us that neither presidential candidate nor either major party has touched on the subject. We can understand why the Republicans and Bush will not broach the subject because it is happening on their watch. Kerry and Democrats will not talk about it because Kerry is part of the Illuminist program and 90% of Democrats who are not part of the elitist structure have been paid off. Those that are not involved either cannot be heard of they are cowards. The general media absolutely refuses to report anything on third party candidates. We are losing 1% of our wealth a year mainly to Asia. Via free trade, globalization, WTO, NAFTA and possibly CAFTA we give away our assets, jobs and competitive position in manufacturing and new services. This, of course, is all part of the elitist plan to bring America financially and economically to its knees. We have borrowed so much money that we are now financial captives to foreign governments. Our Fed exacerbates the problem by keeping interest rates abnormally low and flooding the US economy with over a trillion dollars a year. At the same time Iraq and Afghanistan is costing us $200 billion and the government makes cut after cut in Veterans health care and social benefits in our economy. Although we do not have all the details yet we were told on one of the talk radio programs we were on last week that the government is forcing our Veterans being treated by the VA to join and pay into Medicare plan B. They should not have to pay for care relating to a service connected disability. This is the kind of government the Bush Administration is running. They haul our men and women off to the Middle East, get them shot up or poisoned by depleted uranium and then want them to pay for their hospital and care costs. This is criminal as is our government. Consumer spending is falling as purchasing power falls. Most homes have two mortgages and credit cards are maxed out. We certain will not invest in the stock market and as the public has less and less money, the economy will fall into recession and take stocks, bonds and real estate lower. At least 50% of Americans know and understand what we are talking about. Those that are gifted and understand should have the courage to come forward and expose the evil controlling our government; if for no other reason than to show compassion for his fellow man. The kindness will help him or her as well as fellow Americans.  Stop complaining about it and try to expose our problems. Reinvent yourself and leave a personal legacy behind. Leave this world knowing you did something positive for mankind and helped expose evil. We have a government that has committed us to $51 trillion in debt. It allows us to go $2 billion further into debt every day. Our economy is going to be purged and this time 50% of Americans may not survive the debacle because they would not pay attention. You must have the courage to protect yourselves, family and friends. Get out of the market during this rally. Get out of debt and buy gold and silver coins and stocks. They will be your only financial salvation and they may save your life.

 

Russia continues to get Washington’s attention. They know George and the neocons are behind the insurgency in Chechnya, so Russia says they have the right to carry out pre-emptive strikes on militant bases abroad.

 

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GOLD, SILVER, PLATINUM, PALLADIUM AND DIAMONDS

 

            If we could all be so lucky. A man walking his dog found an Anglo-Saxon gold penny worth $270,000. The coin was struck during the reign of King Coenwulf between 796 and 821 on the banks of the river Lvel in Bedfordshire. This is the first coin of this type found with King Coenwulf’s portrait. The moral of the story is walk your dog during the day and keep your eyes peeled

 

As we predicted the Bank of Italy says it has no plans to sell its gold reserves.

 

            Last week we reported on the aspirations of the Chinese to get the average Chinese into gold in order to dump dollars and to bring some sanity to its mega-overheated economy and mega-inflation. The Chinese government could very well have been accumulating gold over the past several months, getting rid of dollars in the process, for the eventuality of being a major player in the gold market. Our sources say they have been very big buyers in the New York market, especially on openings when the cartel tries to drive the gold price down almost every day. The Asian markets are too thin to buy in size, so they have to buy in New York. We will call them the Shanghai Gold Buyers.

 

            The Swiss are about finished with their long-term gold sales. There is a 1500 to 1800 ton shortfall of production to demand every year and that will grow larger as production falters and investment buying surges in the years ahead. The Dutch sale of 100 tons is a pittance. Where will the 1500 to 1800 tons in shortfall come from in the future? It looks like those in the Washington Agreement cannot even muster 500 tons for sale annually. They may not have the gold or they may not want to lose any more. If the gold suppression conspiracy collapses, which we believe it will, they might end up getting hung or worse for what they have done. They have squandered their citizens’ birthrights. There is not one central bank, and those banks have sold or leased at least 22,000 of 32,000 official tons, which can cover their short, sold or lease position without an everyman for himself episode. Wait until the new BIS gold derivatives positions are released. They will be a shocker and they will make the Sprott Asset Management Report look very good. They will verify what we have been saying for years. The lack of honesty in reporting what is really going on in the gold markets by the World Gold Council, Gold Fields Minerals Services and Mineweb have done a terrible disservice to the gold shareholders and owners of bullion and coins and they all should be run out of business and at the least, discredited. All of them and the US government have tried to shut us up, but they have been unsuccessful and they will continue to be unsuccessful in hiding the truth from investors as fronts for the central banks.

 

            Gold producer Cambior expects its gold production will decrease over the next four years and that it will cut 130 jobs in Quebec.

 

Rumor has it that China took delivery of 1,000 tons of gold last week.

 

            Since the ANC took over South Africa ten years ago, the mining sector has seen serious under-investment in infrastructure. Capital investment in rails is off 75% and in ports 65%. As long as black empowerment and the forced inclusion of black investors are pushed, the mining industry will continue its slide into oblivion.

 

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-- Posted Thursday, 23 September 2004 | Digg This Article

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