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Before the Hat Trick Letter was launched, a little splash was made
when a Jackass Nobody wrote “25 Reasons Why Gold Will Rise”
in November 2002. It was so many years ago that the piece no longer appears
in archives. The motive for the article was simple. Just too much pure
nonsense and genuine rubbish had appeared in the financial press about why
gold was rising. ‘THEY’ claimed the gold price was rising from
MidEast tensions, from new global tensions due to a False Flag attack on New
York City in broad daylight, and from other factors
clearly irrelevant to gold. It was not disinformation so much as stark
ignorance and stupidity, perhaps even compromised marketing from the fiat
bowels on Wall Street. The crack analysts in financial circles overlooked the
negative real interest rates offered by central banks, as the miniscule
official rates were overwhelmed by price inflation, thus rendering gold a
free pass profitable investment. Stupid inane mindless drivel continues to
pour out today as to why gold has reached the $1000 level. In simple
English, THEY HAVE ABSOLUTELY NO IDEA WHY GOLD IS RISING. The
faceless ‘THEY’ had no idea in 2002 and ‘THEY’ have
no idea now. The main fallback factor ‘THEY’ turn to is a hedge
against price inflation, the basic kindergarten concept. The Wall Street
machine still uses mental crayons, as nothing has changed. They are too busy
building leveraged contraptions and forging collusions. Those who are aware
in the Mainstream are dead silent as to why gold rises, since they realize
their world is to vanish.
The original litany of reasons was examined two years later in “25
Reasons Why Gold Will Rise (revisited) + 2 more reasons added” from
August 2004 (CLICK HERE). A couple mining factors had cropped up, worthy of
inclusion. A quick swing to the present, after the insolvent US bank system
died in September 2008, after the discredited USFed capitulated to offer near
0% rates, after colossal fraud spewed from Wall Street corner offices, after
fraud was compounded by the Goldman Sachs creation of Congressional slush
funds for self-dealing banker benefit, after the home mortgages continued to
hurtle over the foreclosure cliff, after the USEconomy continued on a path of
disintegration. Here we are again with oafish hack apologist morons trying to
explain the rise in the gold price. To comprehend the golden factors requires
them to leap forward well past their Wall Street marketing pay grade.
GLOBAL MONETARY SYSTEM
BREAKDOWN
An acute lack of gold
comprehension is evident almost on a global basis. The entire system is wedded
to toxic paper. For the most part, so-called experts, industry analysts, and
network anchors have absolutely no idea why gold has risen above the $1000
level. They are blind to the Paradigm Shift away from the
USDollar and cannot admit the breakdown of the global monetary system. Their
jobs might require them to turn a blind eye to such catastrophic events. At
best they might have spent their entire careers inside the noxious US$
Greenhouse Dome, unable to see from an external vantage point, in no position
to see the Dome from an outside perspective. It will be interesting to
observe how long the ‘SYSTEM’ remains ignorant of the massive
changes taking place, as the stages they sit upon and work upon are slowly
vanishing. Their claims for golden reasons are vacant shallow factors. THEY
miss the major factors. They do notice a staggering amount of fiat money
being created without basis, which would fall generally under item#2. The
actual reasons are many. The list is somewhat debatable, subject to interpretation.
Some argument might even come from within the gold community.
Basically the reasons extend from
the many tentacles and ramifications of the Grand Paradigm Shift in progress,
the complete overturn of the USDollar global financial system. It is being
turned upside down before it goes inside out, and finally fractures into a
million pieces. This is an irreversible process that is already one year into
the collapse process. Here are reasons according to my analysis and
perceptions. They only number 13 this time:
1)
PARADIGM
SHIFT away from a USDollar centric world manifested as the global revolt
against the USDollar in reserves management and transaction settlement,
extended from bank structures
2)
colossal
irresponsibility of major central banks with expanded balance sheets, money
creation, and credit growth,
endorsing their government profligacy
3)
failure
of the central bank franchise model, exhibited by the ongoing credit crisis,
insolvency of banks, and desperate attempt by the US Federal Reserve to serve
as the global bank
4)
ruined
global monetary system from the complete debauchery of money itself
5)
perversion
of the USDollar from required USMilitary subsidy, from coerced USTreasury
Bond support, and from tacit acceptance of Wall Street corruption (past bond
fraud and debt rating agency collusion without prosecution)
6)
proliferation
of OTC derivatives over $1 quadrillion in value with no prospect of
resolution, no hope of regulation, and deep corruption, but with deadly
dependence
7)
gradual
recognition of a financial crime syndicate having taken control of the USGovt
finance ministry, that involves official channels of slush funds, bond
counterfeit, and narcotics money laundering
8)
dishonor
of financial contract law, chronic lapses in financial market integrity, and
constant intervention in those financial markets
9)
expectation
of mammoth price inflation just over the approaching horizon, unless the
central bank balance sheets inflate beyond measurement in Weimar
style
10) anticipation
of banking system meltdown in at least the United States and United Kingdom,
likely to result in bank holidays, useful for a forced Bank Consolidation
with dead banks capturing the system or for a climax Wall Street theft event
11) observation
of gradual economic disintegration and the decline of global trade
12) trend
toward commodity stockpiles, of which gold is the financial commodity core
element and crude oil is the industrial commodity core element
13) specter
of numerous pockets of armed conflict, military war, and possible nuclear
events, as chaos spreads and nations desperately exploit the confusion, and
react to lost sponsorship relations, if not parasite-host pacts.
MYOPIA & THE GOLDEN TIDE
This process would be almost
amusing, observing cartels suffering at the hands of their own financial
devices, if not so tragic by the hordes of bystanders and affected citizens.
Some respected pundits will soon make fools of themselves as they awaken to
explain events and their complicity. THEY do indeed comprehend item #2, but
hardly anything more. Some shallow souls like Karl Denninger actually state
that one cannot eat gold, and thus is has no structural value. What a truly
moronic point of view by a fine forensic analyst. Stick to your knitting,
Karl! Then again, he is half blind and a high school dropout from chemistry
and physics (see his 911 Event drivel commentary). One
cannot eat crude oil, cement slabs, steel beams, or human undergarments, and
these surely have structural value to gird a foundation. Before
1971, few financial crises occurred during an era ruled by gold as the
foundational scepter. As the tide turns, THEY will expound on the virtues of
gold, without benefit of comprehension, in a laughable climb onto a fastmoving
bandwagon. Every pundit wants to join a winning parade. Ron Insana of CNBC
states he does not understand why gold is rising, in supercilious manner, as
though gold is somehow impudent. He had no idea that structured financial
assets would implode in 2006 when he left the monopoly CNBC network that acts
like a Wall Street marketing platform. He must have expected housing prices
to climb without end. He must not have received word that even Goldman Sachs
was shorting mortgage bonds heavily. He is neither enlightened nor connected.
Such myopic vision is
typical of bright people who have no insight into the current Paradigm Shift,
a dismantle of the stage they stand upon. We are witnessing the demise of the
US-UK empire, a era built upon banker monopoly, engineered inflation, Wall
Street power, economic mythology, and military prowess. The
US$-based structures are vanishing, a gradual process to date, but as times
passes, more sudden shocks are sure to arrive as entire floors simply crumble
beneath the feet of the wizards and their harlots. Some technical analysts,
the eerie bunch who follow price patterns, volume trends, and cyclical
measures, care little about reasons. They notice extremely positive patterns
in the gold stock index and gold futures prices. Such analysts expect much
higher prices ahead from power evident to perceive. See the Bloomberg article
(CLICK HERE) from the
mainstream press. They notice strength and energy building. They care not
why! There is genius at times in such simplicity and designed distance from
wretched rationalization.
Just a quick aside, for the
benefit of half-blind Karl and others. The last command for Major General
Albert Stubblebine was head of all Army Strategic Intelligence worldwide.
Note his comments about the ridiculous story of an commercial aircraft
hitting the Pentagon, a story he mocks openly. Stubblebine disputes by simply
pointing out that the 5000-lb engines would have left a very very big mark on
the Pentagon building facades, something that remarkably receives little
discussion. No such aircraft impact happened, since a missile hit the
Pentagon. Just try to imagine a jetplane that evaporated and incinerated
without any debris, an utterly absurd tale. Imagine an advanced metal alloy
fuselage incinerated and vaporized, even hundreds of seats turned to dust
while strewn. Let’s all hail the first airline crash in modern hisotry
without any debris! It is a miracle! The retired Stubblebine should be
careful, but he must know the risks. This entire story is an insult to our
intelligence. See the YouTube video clip (CLICK HERE). The
tale told for the World Trade Center exploits the ignorance of Americans, who
largely failed physics and chemistry in high school. See gravity (11 seconds
for demolition freefall, not a pancake staged collapse). See chemistry (jet
fuel burns 2000 degrees too low to melt structural steel). Next resort to
Aesop Fables (third WTC building fell after saddened by the collapse of its
two big brothers). It is difficult to insult the intelligence of a nation
that has little. If a 2x4 lumber slab were slammed against half-blind
Karl’s blockhead, my guess is that it too would leave no mark, just
like at the Pentagon.
GOLD PRICE BREAKOUT BEGINS
The move to kiss $1000 gold was the foreplay, the first dance, the
initial step to capture global attention and to preview the next much bigger
move. Some important less visible factors are at work to push the gold price
up, somewhat hidden from view. The Intl Monetary Fund and the London G-20
Meeting bear on the gold forces. The full breakout is imminent. It could be
days, or a couple weeks, probably not more than a month. Ramadan ends in
ten days, and Chinese anger is spilling over. Underlying structures are
breaking with each passing week. Bank ripples are being felt. Insolvency is
spreading like a disease, while corruption spreads like a cancer. Central
bank money creation occurs like from a garden hose. Stories will be told
about these days for decades. This is history in the making. They are
accumulating gold bullion here. The fools are still selling gold, unaware of
its 100% rise in price upcoming. Actually, what comes is a quasi-global 50%
currency devaluation. China is cutting deals with the I.M.F. to secure
central bank gold in huge blocks, much like geopolitical horse trading amidst
grand power shifts for global control. If the West wishes to enjoy the
benefits of Chinese credit supply, then China must be given much of what it
demands. In short, the gold price will break out past 1100 and past 1200,
toward a 1300 target, WHEN CHINA DECIDES TO GIVE THE ORDER.
This has come to a Financial War between China and the United States,
waged in the USDollar and Gold marketplace. The war chest held by China was
essentially given to it by the United States and other Western nations, with
all the foundation from direct business investment in factories. The Great
Economic Fools within the United States will be fodder for historians for
many decades. The conflict will inevitably morph into a Big Trade War, and
probably into a military hot war. Few believed my warnings made in 2005 and
2006 that China and the US will be locked in a Trade War within two to three
years. Watch the tragedy of armed military conflict unfold, as the US
makes one error after another, mixed with defiant disobedience of its credit
master China. The Beijing leaders have giving the Obama Administration
orders. The Wall Street (errrr, Obama) decision to reappoint USFed Chairman
Bernanke to another term went in direct contradiction to Beijing orders. Is
it any wonder that gold hit $1000 in just one month after White House
meeting, and just two weeks after the Bernanke reappointment? Not here!
![](http://www.24hgold.com/24hpmdata/articles/2009/09/img/20090910ELS140.jpg)
Sir Alan Greenspan,
architect of the failed central bank franchise system, who offered monetary
and political cover for the Rubin-Clinton pillage in the 1990 decade and for
the Bush-Paulson pillage in the 2000 decade, has come to the stage to give
two messages. He just will not go away! Greenspan seems to be one of his
best historical critics, without recognition of his new role. He cannot help
but offer criticism, a process that undermines his own legacy.
Greenspan warns about inadequate bank capital. He should instead declare most
big banks as insolvent, and even cadavers. He spoke via teleconference to the
Antique India Markets Conference in Mumbai, an obscure forum.
Meanwhile, closer to home
at a US-based economics conference, Greenspan admitted that the gold
price gains are strictly a monetary phenomenon in his
words, which should send shivers through central banker spines. He believes that
rising prices of precious metals and other commodities represent an
early move to shun paper currencies. He genuflected before the
gold altar, when he said, “What is fascinating is the extent to
which gold still holds reign over the financial system as the ultimate source
of payment.” He always did love gold! Economists should spend less
time at conferences and press interviews and more time learning and studying
their own field, so as to develop some expertise.
CHINA DECLARES A SUBTLE FINANCIAL WAR
China made three major
announcements in the first week of September, each highly disruptive, enough
to add thrust to the Paradigm Shift, enough to usher in the nasty phase (see
Trade War escalation). The timing of late August and early September for
disruptions and onset of instability has not been a disappointment. Some are
disappointed, and will remain disappointed, unless the sun does not rise at
all. They will never be satisfied. China has shaken the global system
in three key ways, resulting in a grand challenge to the power structure. China
announced:
1)
permission
granted for state owned firms to selectively dishonor OTC derivative
contracts by means of self-administered Stop-Losses in reneges
2)
Hong Kong
demands the return of its gold bullion held in custodial accounts held in
London, to make its own airport vault facility (the Zurich Switzerland model)
3)
Mongolian
rare earth metals will no longer be exported to the West, an assault against
hybrid cars, certain electronics, and military weapons (missiles).
Implications are enormous.
The OTC abrogated contracts for crude oil and metal contracts, ripe with
corruption and entirely unregulated, could wound deeply Goldman Sachs and
JPMorgan. The demand for Hong Kong gold is more a symbolic threat, adding
thrust to what already has begun. Germany, Switzerland, and the United Arab
Emirates have demanded a return of their gold from US and UK storage
locations, the corrupt centers where the gold was routinely leased illicitly.
The trend puts considerable pressure on the COMEX, which could be deeply
wounded from lack of underlying metal, as its corruption is exposed and
shorting without collateral backfires. Neither the USGovt nor the USMilitary
have accumulated stockpiles in rare earth metals, a clear lapse. The
distraction of profits from bond fraud and narcotics trafficking must be too
great. Rare earth metals are critical for weapons programs, and their absence
could put further strain on the over-extended and generally strained
USMilitary. See scandium (21), yttrium (39), and 15 elements from lanthanum
(57) to lutetium (71), whose atomic numbers are cited in paranthesis. Skip
over this part, Karl, as the elements up the scale are all just a blur to
you. By the way, copper, silver, and gold are all in the same column for the
periodic table of natural elements, a key point, since they share unique
traits in their valence.
The Chinese actions border on
extreme, but are part of a grand mosaic of change, if not rebellion amidst a Paradigm
Shift. THE CHINESE ARE EXTREMELY ANGRY. They are angry about
amplified USTreasury debt monetization. They are angry about outsized USGovt
deficits. They are angry about USFed Chairman Bernanke being reappointed.
They are angry about the battle waged by the USGovt against Swiss bankers.
They are angry about Yuan currency manipulation charges. They are angry about
being given second class seats at the global banker tables. They are angry
about being set up as US debt bagholders. They are angry about the slow
retreat of USMilitary presence in Asia. The entire foundation will undergo
powerful changes from these three salvos, and more to come, likely even more
defiant and elevated. The US-UK wizards who wrecked the banking system will
soon be driven over the cliff, victims of their own devices, falling into a
deep pit, weighed down by their own insolvency. That bank system insolvency
grows worse by the month, as fresh credit portfolio losses still outpace
USGovt ‘gifts’ and new capital infusions.
SAUDI BANKS READY TO
TOPPLE
Saudi banks are beginning
to topple, soon to cause deep ripples across the globe. Meanwhile, Saudi
royals are under threat of assassination. The Saudi Arabian central bank
announced it will not purchase the debts from two family businesses after a
major default. The Saudi Arabian Monetary Agency will not cover the debt from
Ahmad Hamad Algosaibi & Brothers and Maan al-Sanea’s Saad Group.
The debt is owed to local banks. Units of the two groups have borrowed at
least $15.7 billion from more than 80 regional and international banks. About
$5 billion of that is owed to Saudi banks, Standard Chartered stated in an
August 26th report. See the Bloomberg article (CLICK HERE). On
August 30th, a suicide bomber injured Saudi Prince Mohammed bin Nayef, son of
the interior minister and nephew of King Abdullah. The incident took place in
Jeddah Saudi Arabia. Reports indicate the motive might be tied to Saudi involvement
in the civil war in Yemen. A check reveals that Ramadan ends on September
19th. Expect all hell to break loose in the Persian Gulf after its end. Mayhem
will be permitted at that time.
In a Jackass public article
entitled “US Bank Enemies at the Gates” from late August
(CLICK HERE), the risk of broad Arab bank failures was mentioned.
“But the Persian Gulf bank failures represent the clear and present
threat… A bank panic in the Persian Gulf could ensue very soon, a back
door threat. It would clearly have origins in
the United Arab Emirates, spread to the entire Persian Gulf like to Saudi
Arabia, Kuwait, and elsewhere. From this global toehold,
the bank panic could then spread to London, New York, and points in
Europe.” Perhaps the origin of Persian Gulf bank shocks will be
both Saudi Arabia and the United Arab Emirates. The construction project bust
in Dubai, rescued by the Abu Dhabi bankers, will deliver massive shock waves
soon. They own a boatload of USTreasurys and US bank stocks. The ugly
geopolitical secret is that the reign of the Saudi regime has days that are
numbered. The Saudi Royals are already constructing their new enclaves in
Southern Spain and Los Angeles. The Saudis have even hired the European
Aeronautic Defense & Space Company (EADS) to complete a large MidEast
security project, to construct a fence which will encircle Saudi Arabia at a
cost of $3.5 billion. These are the same geniuses who created the Airbus flying
tomb. Can you say Maginot Line? No students of history in that room!
Jim Willie CB
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