The prices of gold and silver futures have been suppressed to such an extent by the Illuminists within the Treasury Department that there is a stampede out of gold and silver futures, an event that could lead to default. As you all know physical gold and silver are in short supply and we are seeing higher premiums. At the same time the rigged futures market is just the opposite. All throughout history good money, gold, has driven out bad, fiat, and that is why the gold and silver futures market will either collapse because no one will play anymore, or they will default as a result of inability to deliver.

Gold is a 2-edged sword. Gold and silver go up with inflation and hyperinflation and gold also goes up or holds its own in deflation in a flight to quality.

We have been in the credit crisis for 15 months and the US and world economies are headed at breakneck speed into deep recession. We have stagflation, inflation and stagnation and it is going to get considerably worse as we head toward eventual deflation. Personal consumption expenditures are falling, as is GDP, which in the third quarter finally entered the minus column. We have a rigged rally in the dollar as consumption falls and government expenditures climb. Long before this is over the part of GDP consisting of personal consumption will fall from 70% to 72% to the long-term mean of 64.5% and that alone will cripple the economy. Although we see it going into the 50s as depression takes hold a few years from now. Our government and Wall Street are orchestrating a less severe recession to keep you spending and to keep you in the rigged stock market. As a result you are talked into a bailout package for banks and Wall Street. It doesn’t work and over 80% of Americans are against the package because they know what is going on. They are listening to alternative radio and reading what is on the Internet. In spite of that a purchased or compromised Congress give the corrupt Illuminists what they wanted. It must also be remembered the administration told congressmen that if we didn’t have such legislation that they’d impose Martial law. That is what corporate fascist government is all about.

We are already in a severe recession. All of our government’s statistics are bogus.

The bailout was for the most part for money center banks, the big financial conglomerates and transnational corporations. Those funds went to the insiders, not to smaller institutions. They were for the crime syndicate, the corrupt Illuminist mafia. The next step after the election is the monetization of money and credit and horrible hyperinflation. Soon the dollar short covering will be history. Libor has already fallen and is back in its normal place. Credit derivatives and credit default swaps has produced a demand for dollars for settlement payouts. That will soon end as well. Fifteen months ago these derivatives began to fail and that systemic failure is ongoing. It will end in the complete collapse of the dollar.

This is the same barbaric horde that just sent the commodity market down almost 60%. They are now waiting to take it back up again to plunder the public once more. They bashed commodities and gold and silver because the rush for real assets had to be destroyed even though it was temporary. As a result there was a rush into physical gold and silver products, a resultant shortage developed. The elitists saw that and not wanting more physical gold in the publics’ hands the mints in Johannesburg, Canada, the US and Mexico shut down. Do you really think that was coincidence? They do not want gold and silver attractive because they are going to hyper inflate. At least for the next two to three years inflation is going to rage. Money and credit are still expanding at 12-1/2% and inflation is 12-1/2%. What deflationists do not seem to grasp is that the elitists will keep the system running because they do not want a crash until they can get a major war underway, as a distraction; another way of adding wealth, and for getting a tighter grasp on power and to further exercise population control. The question is when will the viability of America debt be questioned? Will the failure to deliver US treasuries break the market and not nonparticipation? We do not know but it is surely possible. This is why we have not for some time recommended US Treasuries, but instead Swiss franc Treasuries for those who prefer a partial cash position. It is very simple. The more debt the US government creates and the more money and credit the Fed creates the more the value of the dollar depreciates. Worse yet, the collateral being presented for the exchange of Treasuries is essentially worthless. We also believe Treasuries are being created and not being reported in order to satisfy the perceived flight to quality. Remember, these people do not tell the truth about anything and they believe as the Illuminated ones that they can do anything they please. That is why we continue to tell you to be out of US government and debt paper as well as the stock market. The only exceptions are gold, silver and oil and gas stocks. Cash out your retirement plans if you can and move them into gold and silver related assets. We can promise you two things, hyperinflation and eventual Treasury default. Why do you think on 11/15 major nations are meeting to form a new monetary unit? It will take several months. But it is about to happen. The dollar as a reserve currency and as a store of value is finished and many other currencies will follow. Remember 64.5% of world central bank reserves are in US dollars. No country is going to survive this unscathed. There will be a trigger as there always is. It probably will be an economic event or a string of events that begins the dollar collapse. There are things going on we know nothing about, but which we will soon find out about.

...

GOLD, SILVER, PLATINUM, PALLADIUM AND DIAMONDS

 

You are all aware of the major price discrepancy between the physical gold and silver markets and the futures markets. The latter being controlled by the “Working Group on Financial markets.” As a result of government manipulation over the past six months, gold futures open interest has fallen from 450,000 contracts to 320,000 and silver from 132,000 to 95,000. We believe players see what we do before the chaos of default becomes reality. There is no doubt there is a flight to safety going on and that such a move into the physical market by players can only mean higher gold and silver prices.

 

It has been ten years since gold lease rates were as high as they are currently. Owners of gold obviously either don’t want to lend because they feel the risk is too high. They see what we and some players see, big problems ahead. This also means Comex may not be able to borrow or borrow at a reasonable price. That means default if Comex runs out of its own gold inventory. Historically lease rates have affected gold prices. We saw that in early 2001, and as a result gold rallied more than 10% in the following months. In today’s market that dynamic would be far greater – perhaps 20% to 30%, due to the massive discrepancy between the physical and futures markets. Physical demand for gold is very high and growing and that fact alone could unhinge the US government’s market manipulation. Another tip off is the recent increase in margin requirements for no apparent reason in a falling market. We wrote about this when it happened a few weeks ago. It is a blatant attempt by government and Comex to drive gold and silver prices lower. The real cost to hedge funds was several hundred percent. In addition in India buyers could not get bank loans to do physical transactions. That again is the work of our government. That is called forced liquidation and barring buyers from the market. The last stage of the titanic battle that began on 10/19/87 when the Fed arranged illegally for the sale of IMF gold secretly into the London market. That sale was handled by The Bank of England. It sent gold down $100. It had risen $100 the previous day as the US stock market collapsed. This time when default raises its head gold and silver will rocket upward probably doubling in a very short space of time.

 

What happens in December regarding the gold and silver Comex futures contracts will be very important. Will there be default? We’ll find out in seven weeks. This may be the last stage of the gold battle, but the price will continue to rise. The financial battle won’t be over for sometime to come. The bailouts are for Illuminists not for the people. The system will still encounter hyperinflation followed by purging and eventual depression. The dollar will be almost totally debased. These people do not care; they own gold just like you do. They know as you do creating more debt to solve a debt problem can’t work. The Fed and the Treasury can’t print enough money to cover up this collapsed.

...

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WEDNESDAY, November 5, 2008  -  110508(2)_IF

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-- Posted Wednesday, 5 November 2008 | Digg This Article | Source: GoldSeek.com

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