Thursday, February 24, 2011

Talk of an attack on Iran in DC.... bolsters momentarily....teetering Persian Gulf Arab governments....

February , 2011 -- Renewed "chatter" about a possible U.S. military attack on quite a diversion by the US Intel apparatus....worthy of Stratfor CIA Disinformation....LOL

Our sources in the national security establishment are reporting on "chatter" that they are hearing about a possible U.S. military attack on Iran in the autumn, with October or November the likely months....LOL

Although such chatter about U.S. military action against Iran has been heard before, the current talk comes amid two significant developments....

First, U.S.-backed regimes in the Middle East and North Africa have either already been ousted or are in danger of being overthrown.... With U.S. clients Jordan, Kuwait, UAE, Bahrain and Saudi Arabia under domestic pressure, talk of a U.S. attack on Iran, which would be popular with the Bahraini and Saudi regimes, tends to bolster all those regimes.

Second, we have been informed that U.S. oil companies are drilling 1200 new oil wells in west Texas to raise U.S. domestic oil production... The companies have been told by the government that they have a 12 to 18-month window to drill new wells and a 24-month window to achieve maximum oil production. In the event of an impossible U.S. military attack on Iran..., or more likely the downfall of the Regime in Bahrain and utter Chaos in Saudi Arabia's oil patch, Yemen and other GCC Kingdoms...oil exports from the Persian Gulf would be severely impacted....and the Kissinger plan of fomenting hundreds of Tribes with Flags all over MENA, Africa, all the way to the Uyghur region in China will be taking a boost between 2011-2015...

We have been told that oil storage containers are currently being built in west Texas to hold the oil extracted from the new wells. Within the last three months, a number of oil exploration and support services personnel have arrived in towns all over west Texas... More significantly, Federal Emergency Management Agency (FEMA) personnel have also arrived in west Texas in support of the oil drilling operations...


We are on the verge of change so sweeping, it will essentially result in a very different looking world... Americans and their Western counterparts are awakening somewhat, but half are still clinging to the comfortable bubbles they have built for themselves... They cling to their stuff so desperately, that they have to believe the leadership will deliver them from "evil..." Fasten your seat-belts , we are headed for sever turbulence....!

If you follow the blood trail and body parts, the path always leads to the backdoor of the bankster and Big Oil’s mansions.....

The economies of Tunisia, Egypt, Yemen, Jordan, and Algeria are strictly controlled by the Rothschild’s central banks and their International Monetary Fund... You know, the same Rothschilds that own the lion’s share of the American privately owned Federal Reserve “Central Bank” and Goldman Sachs....

There is another banking system in Africa and the Middle East that is the arch rival to the Rothschild’s banking empire: Islamic banks...

Basically, the Islamic banking system charges no interest as apposed to a fractional reserve banking system that charges interest.

Islamic banks are governed by Muslim Sharia law that bans interest and trading in debt, hoarding of money, creating money from thin air and usury of their depositors; the depositors are partners and paid interest.

Many economists believe that the Islamic banking system is the better of the two banking models....

There are 1.6 billion of Islam’s faithful in the world and it is easy to see why the Rothschilds and their network of conventional western banks would be threatened by competition from the more appealing, more conservative Islamic banks....

What may appear as a good thing that people are freed from the tyranny of dictators in the Middle East and Africa; the people also need to be freed from the tyranny of economic control and serfdom that awaits them from the Central Banks and the BIS....


Tuesday, February 22, 2011

Kaddafi, Mossad, renditions, CIA, OIL and Strategic investments....all intertwined.....

" . . . the Obama administration is as much interested in allowing Qaddafi to hold on long enough so any documents or witnesses to that [CIA] torture programs can be ex-filtrated from Libya so there is no smoking gun evidence left.... Just as we saw with trying to keep Mubarak in power for enough time to clear the records of the CIA's programs there...."

February , 2011 -- Those MOSSAD sayanims who secretly back Qaddafi....

In an old refrain played out in Egypt, the CIA, MOSSAD, DGSE, MI6, SIMI, GID and Justice Department trying to buy time for Muammar Qaddafi, who is a Jew.... "Don't cry for me Jamahiriya."

Considering the Western Strategic investments in actual contracts with Muammar Qaddafi, worth well over 200 Billion USD, the stakes are quite high indeed....So, what's the "Tolerance" level??

We have learned from a well-placed source that Libyan dictator Muammar Qaddafi has called in a number of political and financial markers in his bid to cling on to power, no matter the costs, including waging a bloody genocidal campaign against the Libyan people....

The Obama administration's major concern in trying to extend Qaddafi's stay in power for as long as possible is to protect documents and potential witnesses within the Libyan Jamahiriya Security Organization (JSO). The CIA used Libyan, Syrian, Jordanian, Moroccan, and Egyptian intelligence and security facilities and assets for its "extraordinary rendition" and torture programs, first authorized by then-deputy Attorney General Eric Holder in 1997.... Holder is currently President Obama's Attorney General and, as with Egypt's Hosni Mubarak government and its joint General Intelligence Directorate-CIA kidnapping and torture program run by Omar Suleiman ("Sheik Al-Torture"), and Asef Shawkat of Syria's MI, the Obama administration is supporting the CIA in its quest to ensure that no details, including documents and witnesses, emerge from the Libyan JSO-CIA-EGID-SMI operations....,28804,2045328_2045333_2053107,00.html

The Obama administration wants to buy time for Qaddafi so that it can exfiltrate from Libya, JSO and other assets involved with the "Al-Qaeda" rendition, torture, and tracking programs. In fact, in a long and rambling speech delivered by Muammar Qaddafi today on Libyan state television, he railed against the Bin Laden and "Al-Qaeda" threat to his regime....

We previously reported that a CIA rendition Boeing 737 operated by CIA front company Keeler and Tate Management of Reno, Nevada, arrived at RAF Northolt, UK on November 14, 2003, from Mitiga, Libya. The plane also arrived in Libya on January 12; March 12; October 28; October 12; October 19, 2003 and February 21; March 7, 9, 16,; April 21, 23; September 7, 2004; and January 7, 16, 18, 19, 2005. The CIA Boeing torture plane flew missions between Damascus, Syria; Mitiga airport in Tripoli and Valletta, Malta; Oxford, UK; Dulles International Airport, Washington; Palma de Mallorca, Spain; Frankfurt, Germany; Morocco; and Glasgow, Scotland.

Another CIA rendition aircraft, a Gulfstream IV, leased to the CIA by Phillip H. Morse, a minority partner of the Boston Red Sox, departed Tripoli on May 5, 2004 en route to Tenerife, Canary Islands.

However, according to our source, it is the financial connections of the Qaddafi family to a number of lucrative business deals with the United States, United Kingdom, Italy, and Russia that has these countries dragging their feet on demanding the Qaddafi regime to step down. Saif al-Islam Qaddafi enjoys a close relationship with former Labor Business Secretary Lord Peter Mandelson, according to our source. It was Mandelson, who Saif reportedly calls "Mandy," who introduced Saif to Nathaniel Rothschild, the wealthy scion of the financially- and politically-powerful Rothschild family...ALL MOSSAD Sayanims.... Muammar Kaddafi's mother was Jewish and his second wife is from the "Farkash" family....

Our source reports that Saif Qaddafi, 'Nate" Rothschild, and "Mandy" are frequent diners at Moscow's ritzy Pushkin Restaurant, and have often held meetings there with Oleg Deripaska, the billionaire Russian tycoon who partly owns RUSAL, the Russian aluminum company. Deripaska, Mandelson, Saif Qaddafi, and Rothschild also met at Deripaska's Corfu estate and on the tycoon's yacht, often docked in Montenegro. The team was apparently attempting to cash in on the U.S. Air Force's lucrative tanker refueling project. RUSAL is slated to provide the aluminum for EADS (European Aeronautic Defense and Space Company), one of the two bidders -- Boeing is the other -- on the controversial contract that has been rife with fraud..... When informed that the Qaddafi family was involved with the tycoons backing EADS' contract bid, some U.S. national security officials expressed alarm.

However, as we reported on June 9, 2008, ". . . the McCain campaign wants to bury the story of McCain's 70th birthday bash held on board the yacht of a Russian aluminum tycoon in the Adriatic Sea. The party was held on August 29, 2006, McCain's birthday and followed a congressional junket by McCain and five other GOP senators to the Republic of Georgia. The host for McCain's yacht party off the coast of the Republic of Montenegro was, according to our sources with close links to the Republican Party, Oleg Deripaska, one of Russia's most powerful tycoons who made his billions in cornering Russia's aluminum market in the 1990s. The 40-year old Deripaska is also politically-connected, having married the daughter of Russia's late President Boris Yeltsin. Unlike most other Russian tycoons, who now live in exile abroad and are protected by Israeli passports, Deripaska maintains close relations to Russian Prime Minister Vladimir Putin and another Russian tycoon, Roman Abramovich, who was also invested in Russia's aluminum industry. In 2000, Deripaska merged his firm, Basic Element, with Abramovich's firm, RusAl. Both tycoons maintain expensive homes in London."

We have also been informed by our source that Newscorp owner Rupert Murdoch has been a frequent guest at Corfu soirees also attended by Saif Qaddafi, Rothschild, Mandelson, and Derispaska. ALL MOSSAD Sayanims....
Newscorp/MOSSAD owns Fox and SKy News....

On March 25, 2009, we reported: "British intelligence sources report to us that a series of high-level financial deals between Libya, British Prime Minister Gordon Brown, Chancellor of the Exchequer Alistair Darling, Business Secretary Peter Mandelson, former Speaker of the House of Commons Michael Martin, and Scottish First Minister Alexander Salmond resulted in the release from a Scottish prison of Abdelbaset Ali al-Megrahi, the Libyan Arab Airlines officials framed by CIA in the CIA/Syria MI... planting the bomb on board Pan Am 103 that killed 281 people on the plane and in the village of Lockerbie in 1988. Megrahi's colleague, Lamen Khalifa Fhimah, was acquitted of charges in the terrorist attack.In fact, according to the British intelligence sources, the Libyans were never responsible for the bombing of PanAm 103, which was carried out by the CIA/Syria MI... and their Popular Front for the Liberation of Palestine-General Command (PFLP-GC) proxies in Lebanon's Bekaa Valley in retaliation for the shooting down by the USS Vincennes of an Iran Air Airbus-300 over the Persian Gulf in July 1988 that killed all 290 passengers and crew."...., in addition to a secret CIA/DEA/DIA team who was targeted by CIA's upper echelons for getting too close to covert operations with Damascus..., involving Heroin trade....and other Black Ops. with the Syrians..., and that team had to be eliminated by the CIA Mafia at Langley....

Our report continued: "Negotiations on the deal to free Megrahi, who stood to embarrass the British and U.S. governments with new evidence of his innocence if the appeal of his conviction had gone forward, began last October after two major Scottish banks, Halifax Bank of Scotland (HBOS) and Royal Bank of Scotland (RBS), collapsed. After HSBC and Barclays made overtures to the Bank of England to buy HBOS and RBS, the proposals were rejected by what is known in Whitehall as the "Larnarkshire Mafia" -- Brown, Darling, and Martin -- intervened in the Scottish financial crisis and ordered that public money vice commercial funds be used to prop up HBOS and RBS. Eventually, Lloyds TSB bought HBOS creating Lloyds Banking Group, which was, itself, later bailed out by the British government.

The word from Whitehall is that, although Parliament is in summer recess, senior staffers know that a major secret deal was worked out between Number 10 and Number 11 Downing Street (the residences of the Prime Minister and Chancellor of the Exchequer, respectively) and Qaddafi and sealed after a meeting two weeks ago between Mandelson and Qaddafi's son, Saif al Islam Qaddafi, at a Rothschild family-owned villa on Corfu....

The deal worked out is that profits realized from future oil and gas deals between Britain and Libya will be used to bail out the Scottish banks."

With these powerful connections, the Qaddafi regime is pressing his friends and allies in London, Washington, Moscow, Tel Aviv, Paris and within the Silvio Berlusconi mafia that runs Italy, that they must stress "stability" -- a word also heard as Mubarak was on the rope in Cairo -- over democracy.... So far, Qaddafi has drawn some success as he clings to power, forcing Genocide on the Libyan people and mocking the world....

Is this a prelude to Nato intervention with Africom....?

Gaddafi's Next Move: Sabotage Oil and Sow Chaos?

By Robert Baer Tuesday, Feb. 22, 2011

Its clear to see now that mainstream media in the West and elsewhere... are extensions of the security forces and secret intelligence services, just like in any tin pot banana republic.... CNN = CIA, WAPO=CIA, Wailing Wall Street Journal=CIA, NYT=CIA etc.

The list of Saif-Al-Islam Ghadaffi's Zionist MOSSAD/MI6/CIA friends is nothing short of impressive as we can count Prince Andrew, Peter Mandelson, Goga Ashkenazi, Oleg Deripasksa as well as Jacob and Nathaniel Rothschild according to the Daily Mail....

Unlike energy produced in most African states, nearly all of Libya's oil and natural gas is produced onshore. This reduces development costs but increases the chances that political instability could impact output - and Libya has been anything but stable of late.

Libya's 1.8 million barrels per day (bpd) of oil output can be broken into two categories. The first comes from a basin in the country's western extreme and is exported from a single major hub just west of Tripoli. The second basin is in the country's eastern region and is exported from a variety of facilities in eastern cities.

At the risk of oversimplifying, Libya's population is split in half: Leader Muammar Gaddafi's power base is in Tripoli in the extreme west, the opposition is concentrated in Benghazi in the east, with a 600 kilometer-wide gulf of nearly empty desert in between.

This effectively gives the country two political factions, two energy-producing basins, two oil output infrastructures. Economically at least, the seeds of protracted conflict - regardless of what happens with Gaddafi or any political changes after he departs - have already been sown.

If Libya veers toward civil war, each side will have its own source of income to feed on, as well as a similar income source on the other side to target. There have not been any attacks on the energy sector yet, but the threats to stability - overt and implied - have been sufficient to nudge most international oil firms operating in Libya to remove their staff.

These staff are essential. At 6.5 million people, Libya's tiny population simply cannot generate the mass of technocrats and engineers required to run a reasonably sized energy sector. As such, foreign firms do most of the investing and all of the heavy lifting.

The Libyans are hardly incompetent, but even if their skill sets and labor force simply were deep enough - and they are not - the political instability is keeping many workers at home. Within the past 24 hours we have seen the first reductions in output - about 100,000 bpd is now offline - and more are sure to follow.

This will be the biggest problem for Italian energy major ENI. That firm's relationship with Libya reflects Rome's, which has had influence in what is currently Libya literally since the time of the Roman Empire. ENI has had boots on the ground in the North African state since the dawn of its energy industry in 1959 and has never scaled back its operations.

Even in the dark days of Libya's ostracism from the West in the 1980s, when American firms left due to Gaddafi's backing of various militant factions and United Nations and US sanctions were levied after Libyan agents were framed by CIA in the downed Pam Am Flight 103 in 1988, [ which was done by CIA/SYRIA and a Heroin deal gone sour, plus some Black covert ops. with DEA/CIA factions....] , killing 270 people, ENI drilled on. As such, ENI produces some 250,000 bpd in Libya, which accounts for 15% of the Italian firm's global output. It is also the major power behind the country's moderate piped natural gas exports.

ENI is also a partially state-owned firm and is thus susceptible to inefficiency and a lack of propensity to rise to technical challenges. As such, ENI has simply been unable to secure new energy sources except on terms set by others. Unsurprisingly, it has seen its market share eroded by a more adept private challenger, Edison.

All told, Italy has to find about 60 billion cubic meters (bcm) of natural gas a year to cover the country's natural gas deficit. Despite the drawbacks of partnering with someone like Gaddafi, Libya can provide about 11 bcm - and ENI, fully supported by the central government in Rome, gets all of it. Italy, via ENI, is also Libya's single largest oil consumer, with most of the rest going elsewhere in Europe.

Whether ENI loses access to Libyan energy because of safety concerns, supply interruptions or a new government in Tripoli that looks less than favorably on the company that stuck by Gaddafi through thick and thin, there is much risk and little opportunity ahead in ENI's future relations with Libya.

Vladimir Putin has an interesting way of dealing with Oleg Deripaska....

French President Nicolas Sarkozy has reportedly assured francophone African dictators like Chad's President Idriss D├ęby Itno of Paris's support in the event of popular uprisings such as those that ousted the dictators of Tunisia and Egypt and now threaten to depose Libya's Muammar Qaddafi....

Exclusive to us: The Arab revolt has spread to Arabia [we're dropping the descriptor "Saudi" since that will, in the near future, no longer be the name of the country currently known as "Saudi Arabia."] 22 Feb 2011 -- Some 100 youth took to the streets of Hafar Al Batin, calling for the end of the Saudi regime. Hafar Al Batin is a city in northeast Arabia. The Crypto-Zionist Saudi regime, through media propaganda, has devoted attention to the return of King Abdullah II after his recent surgery in Morocco. Arabians are infuriated about the lack of government response to the floods in Jeddah and the fact that Abdullah did not do anything about the damage caused by the floods. On the eve of Abdullah's return, Arabians took to the streets calling on Abdullah not to return, chanting "we don't need you." No news agency has covered the Arabian protests, except Islah TV, which has confirmed the news. People in Arabia now say "Enough is Enough." We are told there will be a big uprising in the coming days in Arabia. Islamic Ummah Party calls for reforms. Opposition says Sauds are not the only ones who have right to rule the country....

Abdullah welcomed to Riyadh by Bahrain King Hamad.



[Since Libya is the jackpot in N. Africa and Col. Qaddafi is the "joker," NATO calls emergency meeting. Ideas being leaked to the press so far involve making Libya into a "no fly zone," or launching selective air strikes, to tip the balance in the people's favor. The US military has been wanting to remove "Col. Brother" for so long that they must have practiced both solutions many times in the past....]

[Either Robert Gates is up to his usual spy doublespeak here, or CIA/military "mindfuck" agents are close to losing control of all their boiling cauldrons of treachery in the Middle East and Africa. (There really is no better way to describe the jobs of professional mind-twisters, or "mind-rapers" than this new word.) In their wildest dreams they could not have imagined the ease with which the revolution has spread across Northern Africa. In their worst nightmares, they should have foreseen what is about to happen in American-controlled countries like Iraq (and believe it or not, possibly even in Israel itself).

America's puppets may be about to have their strings cut. Gates knows.... He has been a CIA insider since American foreign policy first went off track and began to employ mercenaries and "Islamist" militants to do our dirty work for us. At some point, it becomes necessary for the American side to disengage from this dirty war, especially if Islamist allies are exposed. If the Iraq provisional govt. of Iraq falls, then the files in govt. offices that stretch all the way back to Iraq's early days, will be laid bare. If that really happens, then everyone will forget all about CIA's "Wikileaks....."

America's intelligence war is about to blow-up in our faces.]

[“Citizen-Saboteur” equals “terrorist-lite,” one step above the “Gladio” type of terrorist being implanted all over Europe and Asia after WWII. The frank discussions within this field manual on the science of anarchy are chilling in their implications, especially after being honed in secret for sixty years or more.]


Sunday, February 20, 2011

Divide and conquer, that's the motto of the Oligarchy, the power behind the power in USA....

Divide and conquer, that's still the motto of the Oligarchy, the power behind the power in USA....

House Republicans’ Weak Attempt To Pass “Reaganomics II,” Without GHWB's John Hinckley’s Help....

The bill, which takes aim at health-care, social services, environmental regulation and more, gets no Democratic votes....

[The first "supply-side" cuts in social programs would never have passed without the enormous outpouring of public sympathy for Reagan, after Hinckley's bullet caught him under the left arm. As the pundits have since said, we got "Reaganomics" thanks to Jodie Foster. I guess we will have to blame her for the shit that has flowed downhill since that major mistake. Who will get the sympathy bullet needed to gain public support for the next round of Congressional throat-cutting, Mr. Boehner?]

According to Mundell, the wave of sympathy for Reagan that was engendered by the assassination attempt deterred Democrats in Congress from voting against his proposed tax cuts. Because of this accident of history, the US administered a big fiscal stimulus at the same time that Paul Volcker at the Federal Reserve was administering tight money. This, for Mundell, was vital in creating the era of prosperity that followed.

Taxi Driver is the most important movie ever made from the standpoint of creating GDP,” Mundell told delegates. “It’s the movie that made the Reagan revolution possible. That movie was indirectly responsible for adding between $5 trillion and $15 trillion of output to the US economy.”

$3.7 TRILLION DOLLAR ONE YEAR BUDGET!!!! It took the whole entire hundreds of years of history since the founding of this country until he was elected and we were in about $10 Trillion in debt. Obama is spending us into oblivion and is doubling to quadrupling spending compared to Bush and we know how bad he was but this is twice as bad and to make is better unemployment has almost doubled since Obama's 2 years in office. This is the price we pay for electing a person with no experience other than being a CIA community organizer. It is obvious he is just a puppet that has been placed by the global elite and global banking cartels to do their bidding. What audacity and sheer ignorance that he has the nerve to talk about we can't sacrifice the investments in our future when we wont' even have a future if we keep spending this much much. Unless he means we are investing in a future that leads to bankruptcy, ruin, and 3rd world poverty in the USA! At this point it's not a Dem. or Rep. issue, it's an issue that if we don't stop spending what we don't have we WILL go bankrupt and ruin our future and our kids futures end of story....

“For a decade, Russian academic Igor Panarin has been predicting the U.S. will fall apart in 2010. For most of that time, he admits, few took his argument — that an economic and moral collapse will trigger a civil war and the eventual breakup of the U.S”

(As if Things Weren’t Bad Enough, Russian Professor Predicts End of U.S. – Wall Street Journal – 12/29/08)

- The collapse of the US Dollar is just around the corner...
- Key states (like California) are ready to declare bankruptcy...
- The College Tuition bubble is ready to burst...
- Gold and silver paper certificates are exceeding the real amount reserves of these precious metals...
- The average price of gasoline in the US is $3.17 per gallon...
- If the Zionist regime decides to launch a surprise attack against Iran's nuclear facilities, it will not only accelerate the demise of the US economy but also the end of American hegemony in the Middle East...

- Therefore, better be ready for the worst...
Once these demonstrations become national and start threatening the oligarchy. Will the people unite or will one group of people welcome fascism against the other?
Divide and conquer, that's the motto....

Unfortunately for those who label themselves as "patriots," this is exactly what the elites want: to create a hostile environment in which Martial Law can easily be implemented. Too little, too late for changes since the collapse of America has already started and nothing will stop the International Bankers in pursuing their ultimate plan: the creation of a new economic system in which they will exert absolute control over the masses.

National sovereignty and patriotism are things of the past. Accept the new order and learn to cope with it....
Fact: Multinational Corporate Capitalism is at War with Main Street Capitalism, Democracy and the American People. They are winning, amazing that they have brought the United States of America down in only 10 years!

Fact: The bankster engineered Trilateral Commission, Counsel on Foreign Relations and the CIA is at the center of backdoor secret trade agreements that relocated American technology and manufacturing to foreign countries and purposely destroyed States’ manufacturing economy and tax base.

Fact: The Bush/Obama administration, in league with the criminal banksters, has purposely bankrupted America and individual States with a fabricated and unjustified War, mortgage fraud, financial fraud, securities fraud and the systematic pillaging of the Treasury via the Federal Reserve.

Fact: Each American citizen is legally an indentured slave to National debt owed to the banksters. Each taxpayer owes $127,783 in National debt and as Ben Franklin would say “Creditors have better memories than debtors”. The banksters WILL collect their money from YOU one way or another.

Fact: Your trust vested in the Democrat and Republican Parties has been betrayed by corruption resulting in Treason. If you want to be Free and Independent, you will have to fight for it like your Forefathers fought for their Democracy, Independence, Freedom and Liberty. If not, you deserve to be a slave.

Fact: The systematic collapse of individual States and the United States into the North American Union is right on schedule as planned by the Trilateral Commission, CIA and the CFR and implemented by the Bush/Obama administration and the power vested in the UN’s NATO.

Fact: Revolution of the People for the People and by the People to overthrow oppressors is our Heritage and a Democracy model for the Free World.

Fact: The ungrateful multinational American corporations grew from main street capitalism nurtured by a generous and benevolent Democracy that they later corrupted, disgraced and destroyed.

Fact: Most Americans take their Freedom and Liberty for granted and know little of Democracy and Independence. Most will not understand the difference until it is too late and the military boot is on their necks.

Fact: Revolution and Justice is countered by the “War Of Terrorism” against YOU. As Bush Jr. explains “Hell, that Constitution is just a fucking piece of paper”.

“That Big Wheel it be a turning”. Like a remote controlled driverless steam-roller that appears out of control, but isn’t. This is as creepy as Cheney being in control of NORAD on 9/11....the obvious False Flag attack made in USA and Israhell....
We might like to take a look at Godley & Lavoie, Monetary Economics (2007). Btw, Reinhart and Rogoff is deeply flawed. Kotlikoff and Stockman are ignorant of monetary economics, as is Ron Paul. Citing them weakens our case.
And if you still think that this is a conservative versus liberal issue, listen to what tried-and-proven conservatives (re-read Stockman's statements above) are saying.

For example, Paul Craig Roberts, whose conservative credentials are impeccable - former Assistant Secretary of the Treasury under President Reagan, one of the people who most widely promoted "trickle down" economics, former editor of the Wall Street Journal, listed by Who's Who in America as one of the 1,000 most influential political thinkers in the world, and PhD economist -
Obama’s new budget is a continuation of Wall Street’s class war against the poor and middle class.

Wall Street wasn’t through with us when the banksters sold their fraudulent derivatives into our pension funds, wrecked Americans’ job prospects and retirement plans, secured a $700 billion bailout at taxpayers’ expense while foreclosing on the homes of millions of Americans, and loaded up the Federal Reserve’s balance sheet with several trillion dollars of junk financial paper in exchange for newly created money to shore up the banks’ balance sheets.

The effect of the Federal Reserve’s “quantitative easing” on inflation, interest rates, and the dollar’s foreign exchange value are yet to hit. When they do, Americans will get a lesson in poverty.

Now the ruling oligarchies have struck again, this time through the federal budget. The U.S. government has a huge military/security budget. It is as large as the budgets of the rest of the world combined. The Pentagon, CIA, and Homeland Security budgets account for the $1.1 trillion federal deficit that the Obama administration forecasts for fiscal year 2012. This massive deficit spending serves only one purpose--the enrichment of the private companies that serve the military/security complex. These companies, along with those on Wall Street, are who elect the U.S. government.


The U.S. is determined to create as many enemies as possible in order to continue its bleeding of the American population to feed the ravenous military/security complex.


With a perpetual budget deficit driven by the military/security complex’s desire for profits, the real cause of America’s enormous budget deficit is off-limits for discussion.


The U.S. military/security complex is capable of creating any number of... events in order to make these threats seem real to a public whose intelligence is limited to TV, shopping mall experiences, and football games.

So Americans are stuck with enormous budget deficits that the Federal Reserve must finance by printing new money, money that sooner or later will destroy the purchasing power of the dollar and its role as world reserve currency. When the dollar goes, American power goes.

For the ruling oligarchies, the question is: how to save their power.

Their answer is: make the people pay.

And that is what their latest puppet, President Obama, is doing.


These goals [of propping up foreign dictators who serve U.S. interests] are far more important to the American elite than Pell Grants that enable poor Americans to obtain an education, or clean water, or community block grants, or the low income energy assistance program (cut by the amount that U.S. taxpayers are forced to give to Israel).

There are also $7,700 million of cuts in Medicaid and other health programs over the next five years.

Given the magnitude of the U.S. budget deficit, these sums are a pittance. The cuts will have no effect on U.S. Treasury financing needs. They will put no breaks on the Federal Reserve’s need to print money in order to keep the U.S. government in operation.

These cuts serve one purpose: to further the Republican Party’s myth that America is in economic trouble because of the poor: The poor are shiftless. They won’t work. The only reason unemployment is high is that the poor had rather be on welfare.

A new addition to the welfare myth is that recent middle class college graduates won’t take the jobs offered them, because their parents have too much money, and the kids like living at home without having to do anything. A spoiled generation, they come out of university refusing any job that doesn’t start out as CEO of a Fortune 500 company. The reason that engineering graduates do not get job interviews is that they do not want them.

What all this leads to is an assault on “entitlements”, which means Social Security and Medicare. The elites have programmed, through their control of the media, a large part of the population, especially those who think of themselves as conservatives, to conflate “entitlements” with welfare. America is going to hell not because of foreign wars that serve no American purpose, but because people, who have paid 15% of their payroll all their lives for old age pensions and medical care, want “handouts” in their retirement years. Why do these selfish people think that working Americans should be forced through payroll taxes to pay for the pensions and medical care of the retirees? Why didn’t the retirees consume less and prepare for their own retirement?

The elite’s line, and that of their hired spokespersons in “think tanks” and universities, is that America is in trouble because of its retirees.

Too many Americans have been brainwashed to believe that America is in trouble because of its poor and its retirees. America is not in trouble because it coerces a dwindling number of taxpayers to support the military/security complex’s enormous profits, American puppet governments abroad, and Israel.

The American elite’s solution for America’s problems is not merely to foreclose on the homes of Americans whose jobs were sent offshore, but to add to the numbers of distressed Americans with nothing to lose the sick and the dispossessed retirees, and the university graduates who cannot find jobs that have been sent to China and India.
And Ron Paul - who has very strong conservative credentials, and who won the Presidential straw poll at the Conservative Political Action Conference two years in a row - recently said in his CPAC speech:
We’re going to continue to bail out, we’re going to continue to spend the money, nobody wants to cut. I am sure that half the people in this room won’t cut one penny on the military, and the military is not equated to defense. Defense spending is one thing, military spending is what Eisenhower called the “military-industrial complex” and we have to go after that.


But let’s say government, as you all, I am sure would agree, is out of control, and it’s very hard for us to get a handle on it. So let’s say we even theoretically, and a miracle happens and we balance the budget where we are today, it would be still a disaster because we’re spending too much money. But it wouldn’t change a whole lot. When a crisis comes, guess what happens? Guess who does the bailing out? The Federal Reserve used $4 trillion to pass out without congressional approval and most people say “Oh, well that’s the Federal Reserve’s job to do that.” No, it is our job to check up and find what the Federal Reserve has done, audit them, and find out who their buddies are that they’re taking care of.


The Federal Reserve creates money out of thin air, they can loan to banks, central banks of the world, to other governments and international financial institutions and we’re not even allowed to know. They resent the fact that when I ask these questions, that they don’t have to give us information. That’s why the bill to audit the Fed is the first step to ending the Federal Reserve.


I think and I believe that we have had way too much bipartisanship for about 60 years. .... It’s the bipartisanship of the welfare system, the warfare system, the monetary system, the challenge to our civil liberties, it all goes through with support from both parties. So there’s way too much bipartisanship. This should be a challenge of the issue of philosophy – good philosophy versus bad philosophy.


But where I think we go astray on this exceptionalism is there are some people and sometimes they’re referred as neoconservatives and they’re sort of neo-Jacobins where they believe that we have this moral responsibility to use force to go around the world and say, “You will do it our way or else.” Well force doesn’t work, it never works....

On Wisconsin....

These protests must be considered as another of the CIA "false-flag" revolutions, only this one is, so far, intended to keep the lid on, not calculated to boil over, as in the Middle East. This is the reason that the "counter-protesters" are not simply joining with the first group demonstrating to protect their incomes.

In Europe, there are no counter-protests, no anti-anti-government protesters seeking to nullify the anti-government protests. In these first American anti-austerity protests, we are seeing the expected, suspicious, corporate-sponsored counter-demonstrators, gathering in the streets to break the formation of a national focal point, preventing the formation of a solid center of the people. The protesters, calling themselves "conservatives," who are championing program cuts do not, for some reason, want to see social service programs preserved, even though all of them will one day need some of those same programs just to get medical care, or to stay alive, or to have emergency programs and services, such as police and fire protection (SEE: Detroit, Less Than a Full-Service City). We are seeing an attempt to revive all the bad things of Reaganomics and Bushism in these counter-demonstrators, who march, coincidentally, as their national leader, Speaker Boehner is pushing deep cuts in the House....

The people of Wisconsin, who want to see something remain of the American Republic, must turn-out support for the workers' rights crowd in far greater numbers than the corporate-sponsored side can muster. The real story should concern this hostile anti-worker corporatism, which exists to attack workers who defend their rights, and to capitalize on the workers' grief, relieving themselves of contractual obligations by transferring them to the workers themselves. All over Europe, the old age pensioners are in the streets defending their livelihoods against corporate privatization programs which really rob from the poor, the sick and the elderly, in order to profit the rich. Yet, here in the "land of the free," we see brother set against brother, as the man with a decent job defends that job by attacking those who have nothing but the right to survive--and that is what is being taken from many of them--yet the corporate-backed thugs in the streets gather in mobs and shake their fists at them in disgust.

It's happening in Wisconsin. Its Labor--vs.- anti-labor. It's Ronald Reagan--vs.- Mondale...It is the basic right to organize to defend one's rights and to improve working conditions--vs.- the corporations and their mobs for hire, like the Tea Party gang, or whatever they are called. It may be true that much of the anti-union opposition is real (the "unions have killed this country" crowd), but, I would think that many of them are there because someone with either money or power asked them to attend. Believe it or not, people, it is a fight between corporations and the rest of us. If you are not a paid part of some corporation, then you are part of the general population being targeted for some great rip-off by those corporations. Unions and the fights for workers' rights (which they have waged for all of us, down through the decades), are the reason that you legally cannot be worked like an abused animal, and your children cannot be forced to labor hard hours at dangerous jobs, whenever you can no longer work, or find work....and believe me, that day is coming, sooner than you think....

There is a war on for your mind, and the corpo-fascists are bankrolling it....
A pertinent quote made 20 years ago by Eustace Mullins - we have about 20 months to answer it?

" American history in the 20th century has recorded the amazing achievements of the Federal Reserve bankers. First, the outbreak of World War I, which was made possible by the funds available from the new central bank of the United States. Second, the Agricultural Depression of 1920. Third, the Black Friday Crash on Wall Street of October, 1929 and the ensuing Great Depression. Fourth, World War II. Fifth, the conversion of the assets of the United States and its citizens from real property to paper assets from 1945 to the present, transforming a victorious America and foremost world power in 1945 to the world's largest debtor nation in 1990. Today, this nation lies in economic ruins, devastated and destitute, in much the same dire straits in which Germany and Japan found themselves in 1945. Will Americans act to rebuild our nation, as Germany and Japan have done when they faced the identical conditions which we now face--or will we continue to be enslaved by the Babylonian debt money system which was set up by the Federal Reserve Act in 1913 to complete our total destruction? This is the only question which we have to answer, and we do not have much time left to answer it. - Eustace Mullins, 1991"


The utterly corrupt US/Israeli Oligarchy is beyond any redemption...

American priorities:
Incredible...The criminal Empire is crumbling faster than ever thought possible...
When discussing the corruption and decadence of the "elite" with a buddy of mine, I asked him what he thought would happen if Anonymous released the financial records of the world's elite to a large enough percentage of the internet population so that it could not be buried. His response was thought provoking:

"These people have all the rope in the world. Up until now, they've been using it to pull strings in the shadows and hang everybody. Now, if all that rope was revealed for everyone to see, the people they've been screwing would then turn around and use that rope to hang them all."

This is based on the assumption that there are enough people in this country who give a goddamn about the Constitution and are in positions of low-to-mid level authority, and the assumption that these people have the spine to stand up and refuse orders that violate their oath to Defend and Uphold. If this assumption holds true, and this information goes public, I believe my friend's prediction will quickly become a reality, and the people who will be doing the hanging will be the very security forces the "elite" built up and designed to keep them in power for the rest of their natural (and perhaps someday unnatural) lives.

Culpable? Maybe not in the classic sense. We The People know, but what we "know" is often shrouded in secrecy and obscured by disinformation pumped by the Bullshit Factory that has expanded exponentially since it was first truly organized shortly before WWII. We The People have been waiting for a catalyst, something that will spark the "Day of Rage" that will result in the removal from power of the scumbags that do not have the interests of We The People at heart.

What we've been hampered by is the fact that the best sources for this information are extremely reluctant to come forward with the truth, as they know they will be immediately attacked by the weasels, demonized, and turned upon. Most people may not "trust" news from the MSM, but most people don't have many other sources of information. Wayne's record is impeccable, and I trust Wayne to lay it down like it is. But there are a host of other alternative news sites out there that attempt to mimic that stance, but are quite certainly disinformation agents trying to dilute or pollute the thought-sphere. If we cannot focus on the specific issues and prioritize our action as a movement, then we will be divided and conquered. Just look at how the bipartisan support for "End the Fed" dissolved when the "Tea Party" aggressively hijacked the movement.

As far as supporting the troops goes, I agree that the support of the troops should not include support of imperialist nation-building missions. I strongly believe in this statement: "Support Our Troops: Bring Them HOME!" They have a far more important job to do on the home front, securing our borders to ensure the "elite" do not escape during our long-overdue "Day of Rage", so that they can be brought to trial and humiliated in front of their globalist peers.

Anything less won't cut it. A large-scale "revolution" by armed force in this country will quickly lead to internal warfare from competing factions, as the "elite" have been very busily driving wedges into the fault lines between segments of the population that honestly have way more common ground than differences. They have done this by managing perceptions, and I know several good and intelligent people that have been taken in by the false Left-Right paradigm. There are other lines, too, but this one's the doozy.

In the end, it's all of us or none of us. We need something that will get all of us on the street screaming for these assholes to surrender to the authority of the law. That's the yard-arm we'll hang them from: the "elite" believe that laws are for other people. If they are exposed for the criminals they are, and dealt with in kind, it will give us the catharsis we need to get back on track. They can't be allowed to be martyrs: they need to be disgraced publicly and dealt with like the trash they are....

Saturday, February 19, 2011

Financial Gloom and Doom Update....

February 2011

- you don't have to be a genius to see it coming!
USA Incorporated - a Look at the Grim Financial Situation of the USA

A toxic mix of excess liquidity (money printing) and capital misallocation (new investment flows directed towards assets of declining value such as uncompetitive automakers and residential real estate) has resulted in falling employment, declining tax revenues, and skyrocketing consumer and government borrowing. Inflation in consumer prices is now wending its way into the mix. Both government officials and Federal Reserve Board members believe that we can spend our way to prosperity. Wait a minute! Don't you increase wealth by saving, not by spending?!?!?

For those perhaps new to the topic, here is a link to a concise Business Insider article offering a quick overview of the fundamentals of financial disaster (US style): "10 Charts That Embody Everything That's Wrong With the U.S. Economy."

I wish it weren't true, but this is what is happening, and the people in charge are trying to fix it by borrowing and spending more. You don't need a degree in economics to know that an approach of this kind is doomed to catastrophic failure!

As to the topic of inflation - don't believe the totally made up government figures of 1-3 percent per year. The chart below tells it like it is (based on
the way inflation was calculated in the "olden days" of 1990):

As you can see, real inflation (according to Shadowstats) has been running at about 10% per year since 2000, and it began travelling above 5% as early as1987. That is a lot of currency devaluation, and has much to do with explaining the decade-long rise in the gold price....

What has saved the US in the face of such a disastrous inflationary policy? Well, so far, everybody else is inflating their currencies too.

The problem? It's just that the US owes more in debt payments ($50.7 trillion in 2009 and rising at about $2 trillion/year) than all the other countries of the world put together (total world debt is about $100 trillion).

Now that is a hard problem to solve!

17 February 2011: This embedded video is not the scenario I most expect for how the US dollar collapse will play out, but it does serve as a reminder that gradual changes can lead to sudden changes.

Presented by the National Inflation Association, an organization which anticipates hyperinflation. In my view, other things will more likely happen first. But it could happen as this video predicts. Something to think about....

Click here if the video doesn't work.
Gold, 5000, 8000 USD or more....?
15 July 2007 - Updated 18 July 2007, 6 & 10 April & 29 July 2008, 13 & 18 November 2009, 18 January 2010, 13 & 31 January & February 2011....

Jay Taylor has just posted a new inflation-adjusted estimate of gold's peak 1980 price.

the price of gold rises in inflationary times....

governments purposely and systematically understate the amount of actual inflation so as to make it possible for debtors everywhere – and governments are the greatest of all debtors – to repay obligations in a devalued currency, thereby enabling the ongoing operations of a debt and liquidity-based economy.

you will also be aware that such an economic strategy punishes savers and rewards debtors by making saving unprofitable, thereby fuelling borrowing, discouraging saving, and creating asset bubbles (government sanctioned Ponzi schemes, if you will).

(Inflating asset bubbles entice citizens who would otherwise be savers to invest their devaluing cash in risky assets, thereby creating economic instability as an inevitable correlate of monetary inflation.)

The US government's official figures acknowledge that 1980's peak gold price was not the nominal $887.50 intraday high figure that those of us old enough to remember can recall from that era, but an estimated $1,459.63 US dollars.

Given this figure, we could conservatively expect gold to revisit a price near $1500 per ounce at some point in the upcoming years, based on cyclical fluctuation alone.

However, Mr. Taylor reminds us that the government inflation estimate is in fact grossly understated. According to him, Boston-based money manager Antony Herrey has compiled a chart of the inflation-adjusted gold price using not the government's own CPI statistics, but rather much more accurate inflation numbers compiled by economist John Williams.

Mr. Williams estimates that today’s US inflation rate is closer to 10% than the official (and entirely non-believable) government-reported 2.7%.

Mr. Herrey’s readjustment of the historic gold price based on the actual (non-manipulated, if you will) rate of inflation shows that gold in fact peaked at an inflation-adjusted amount of about $5000 in 1980.

The implication of this recalculation is that by normal cyclical fluctuation alone, it is reasonable to expect the current gold bull market to top out somewhere higher than $5000 per ounce.

Why higher than $5000 per ounce?

Because inflation will continue as the gold price rises.

So at today’s $666.00 per ounce, is gold cheap or expensive?

I think you can figure that one out.

On my advice, do not invest your devaluing cash in the current stock market and real estate bubbles (or other risky assets) presently exciting North America and much of the developed and developing world, but preserve your savings through the time-honoured store of value offered by precious metals – gold and silver.

Gold is up 150% from its 2001 low. But it can grow a further 750% from today’s levels – in real cash terms – before equalling its inflation-adjusted 1980 peak value.

This dollar-value advance would represent a 2000% or more (non-inflation-adjusted) cash gain from the 2001 low near $250.

Another way to think of it is that in true 1980 dollars, gold’s current market price is not $666.00 per ounce, but a reverse inflation-adjusted $113.00 (1980) US dollars per ounce.

The stock market by and large is trading in bubble territory by historic metrics. Real estate in many North American locations is also in bubble territory. Citizens everywhere are borrowing at a record clip and pouring their savings into ever-riskier assets – with today’s fads being hyper-leveraged hedge funds and the privatization of public companies by pension plans and private equity groups.

Do not let official government inflation policies force you into risky assets to preserve or increase the value of your savings.

While asset bubbles are over-valued by definition, gold remains radically undervalued, and will be a secure store of wealth for many years to come.

It is not that the price of gold is rising. It is that we are re-evaluating the worth of gold in terms of the declining value of “paper” (or digital) money.

Governments around the world can create new money through a series of computer key strokes.

But until the alchemists succeed – or until nuclear fusion advances far beyond today’s levels of sophistication – so that we can create gold at will from “base substances” – gold and silver will remain stores of value that are essentially impervious to the irresponsible inflationary policies of our governments around the world.

By the way, commodities generally also look very cheap today in inflation-adjusted terms, despite doubling on a broad measure since 2001. The chart below, from Puru Saxena, graphs commodity prices from 1954 through February of this year, with the inflation adjustment based only on the US government's profoundly muted official inflation numbers.

The Reuters/CRB continuous futures commodity index peaked in 1973 at $1048 in nominal "2007 US dollars." If we are to believe John Williams' inflation numbers, the real 1973 commodity index peak would have been in the $3-4000 range in 2007 US dollars. Today's CRB continuous futures index amount – just above $400 – therefore looks very much like a bargain from that perspective – and signals that commodity prices will run much higher before the world's demand for commodities has been sated.

Addendum - 6 & 10 April 2008: This post is the most frequently visited on my site, so I have added links to related information here, where more visitors are likely to find it.
Mr Williams has recently updated his inflation-adjusted 1980 gold price to $6030, in order to reflect recent further inflation of the battered US dollar, which, as you know, is unwinding quickly at this time.
If you're looking for current gold prices - right up to the minute, visit Kitco also has a wide selection of historical charts dating back as far as 1792. Kitco also sells gold in various forms, and can hold it for you, with delivery at a later date - allowing multiple purchases over time with only a single delivery charge.

And if it's technical charts you need, go to, though these charts date back only to 1990.

13 November 2009: Like the idea of $5000 gold? I'll be honest with you, any estimate of numbers even a few years in the future depends on countless economic unknowables, including the level of fiscal responsibility of all governments around the world (don't get overly optimistic), cumulative global central bank monetary policy, issues of war and peace, free or impeded trade, etc. So who really knows? Not I.

But here is an unlikely person who likes the $5000 number: Martin Armstrong, a financial theorist, former hedge fund manager and convicted Ponzi schemer (see Wikipedia entry here), likes the $5000 number for the year 2016. I can't tell you much about wave theory, not do I have personal knowledge of Mr. Armstrong's character, but I can attest that his fundamental analysis is not entirely off the mark. He states: "Gold has been among the most hated subjects by the socialists, because with each dollar that it advances, it reveals the delusion that they seek to live within."

However, in my view, Mr. Armstrong's critique, with its focus on the shortcomings of socialism, goes nowhere near far enough.

In correction to Mr. Armstrong, who makes a distinctly partisan argument, let me add that in my view, the fundamental problem is hardly with "the socialists" alone - as this group certainly remain a minority faction in North America and through most of the developed world. Particularly here in North America, it is unlikely that it will be the socialists who do us in....

Basically, every party and faction that seeks to resolve its issues through government rescue of a particular sector of the economy is equally in trouble, and that goes for the belligerent folks at the military-industrial complex, the Wall Street speculators who live for the next government guarantee, policy easing or bailout, the CEOs and executives who award themselves and their cronies obscene salaries and bonuses, the elected representatives who vote themselves comfortable pensions, and the financially reckless at all levels and strata of society from the poorest to the very rich.

Transferring funds from one sector of society to another sector of society through government intervention, exploiting savers and investors to pay off executives and managers, borrowing money we do not have and cannot pay back, billing our present expenses to future generations, and printing money out of thin air, are not sustainable strategies for wealth creation (though all are widely practiced today).

In fact, permit me to restate Mr. Armstrong's words as follows: "Gold has been among the most hated subjects by the financially irresponsible at all levels and in every sector of society, because with each dollar that it advances, it reveals the delusion that they seek to live within."

You heard it here. This is not about socialists. It is about all of us. Let's get our act together and start balancing budgets, promoting savings and investment rather than spending and borrowing, and setting aside reserves for the future rather than bilking our trading partners, shortchanging the purchasers of government bonds, and robbing our children and grandchildren.

I'll say it another way, let's make life easy for savers and investors, and difficult for borrowers and spenders. For a start, let's raise interest rates, not lower interest rates. Rather than taxing those who save, let's subsidize - or at least get out of the way of - private investment in legal and ethical business ventures of all kinds by those who set aside a portion of their funds for other than immediate uses.

That being said, Mr. Armstrong's select monograph on $5000 gold can be found here, courtesy of The Business Insider. Think what you like about his personality or his ethics (I do not condone securities fraud!). But Mr. Armstrong might possibly be on the right side of the trade when it comes to setting future gold price targets.

(More theoretical and critical articles by Mr. Armstrong can be found here.)

18 November 2009: Depending on your preferences, here is another analyst calling for $5000 gold. This time around it's Marc Faber, the Swiss-born trader who has resided in Asia for many years. Mr. Faber is arguing that gold is a better buy now, at over $1100 per ounce, than when it traded at $300 per ounce 6-8 years ago.

Faber states:

"I don’t think that you’ll see gold below $1,000 per ounce probably ever again. So I’m quite positive. Maybe, gold at this level is a better buy than it was at $300 per ounce in 2001.

"At first glance, the idea that gold priced at over $1,100 an ounce is 'a better buy' than when the metal traded at about a quarter of that price seems preposterous. But, when you think about it just a little bit (i.e., what constitutes a 'better buy' and how the fundamental factors have now swung so decidedly in gold's favour), maybe it isn't a crazy idea at all.

"I wouldn't be surprised if, in another eight years - in 2017 - the yellow metal fetches $5,000 an ounce or more which, by my math, would make it a better buy. Gold may not rise as much against other currencies, but, after almost a decade of trillion dollar deficits, that almost seems like a slam dunk when the measuring stick is the U.S. dollar."


Lots of talk right now about longer-term gold targets. Of course, gold can go to infinity if the US dollar loses all of its value. I'm not predicting that, but the losses in the dollar are striking over the scale of the past century (during which the Federal Reserve has had a license to print money).

Dylan Grice, at Societe General, sets a target of $6300 per ounce. I think he is in the ballpark, though his methodology doesn't make sense to me. He is working out how much gold the US has, and what the price of gold would have to be to back every US dollar in existence. Here's the problem - the US government is not going to give anyone gold on demand in exchange for its currency.

Nonetheless, here is Rolfe Winkler's take on Grice's idea.


The $5000 figure is now popular. Martin Hutchinson, a market historian writing at Prudent Bear, observes,
"The opportunity for the world's central banks to change policy and affect the economic outcome has been lost. The world economy is now locked on to an undeviating track towards another train wreck."

What is Mr. Hutchinson's gold price target? Again,

An esteemed historian in his own right, Adrian Ash explains: "Hutchinson sees a repeat of 1978-1980 now unfolding, with the price of gold vaulting to perhaps $5000 an ounce by the end of next year."

This rate of development of the crisis is a little fast for me....

Mr. Hutchinson sees it like this, however, "If expansionary monetary and fiscal policies are pursued regardless of market signals, the US will head towards
Weimar-style trillion-percent inflation... As I said, a train wreck. Probability of arrival: close to 100%. Time of arrival: around the end of 2010, or possibly a bit earlier. And, at this stage, there's very little anyone can do about it; the definitive rise of gold above $1,000 marked the point of no return."

Mr. Ash does not oppose or endorse Mr. Hutchinson's one-year $5000 projection for the gold price, but he concludes, "In short, if you think buying now feels a hard decision, what would you think 50% or 100% higher from here....?"

You know, that's worth thinking about! Click
here for Adrian Ash's full article at Seeking Alpha.

18 January 2010: More articles on $5000 gold:

The Five Reasons Gold Will Hit $5,000"

Gold May Rise to $5,000 on Inflation, Schroder Says"

Peter Schiff makes the case for $5000 gold"

Will Gold Reach $5000 an Ounce?"

$5,000 Gold?"

$5,000 Gold In The Future?"

Could $5,000 gold be too low as dollar loses value?"

Global Stock Market Forecasts - Shanghai Index 30,000, Gold $5000 and DJIA 17,000"

9 May 2010: Gold's next stop = $3000 per ounce in 2012?

Maybe - .
(Gold Decouples on International Debt Crisis Concerns - Gold Forecast to Reach $3,000)

Mary Ann and Pamela Aden are also currently considering that , and suggest that a subsequent peak in 2018-2019 could be several thousand dollars higher....

13 January 2011: Today is my father's birthday, so I dedicate this post to him.... There is now so much material on this topic, I hardly know where to direct you. But for an overview, one diligent researcher has gone to the trouble of tracking down every known gold price prediction (and here I'm discounting those looking for $680 gold in 2014. That is NOT going to happen through any conceivable course of events - apart from the synthesis of gold in a fusion reactor or the earth's collision with a golden asteroid!).

Click here for Lorimer Wilson's unique overview: These 110 Analysts Believe Gold Will Go Parabolic to $3,000 or More! (The link may be somewhat circular, as the present article is also mentioned.) Mr. Wilson's article may be of special interest if there are particular analysts that you prefer to follow.

31 January 2011: Here is an up-to-the-minute gold price estimate - following Alan Greenspan's recent recommendation that we reconsider a gold standard. The US gold hoard - the largest in the world - will back the entire US money supply at a rate of $6300 per ounce. It sounds arbitrary, but if the US were to adopt a true gold standard (every dollar in circulation backed by non-printable, non-inflatable physical gold), that's how many dollars is would take to purchase a single ounce of US gold holdings..... Note that Mr Greenspan joins Robert Zoellick of the World Bank, Howard Buffett (but not his son Warren), Jim Grant and Thomas Hoenig of the Kansas City Fed in making this recommendation. Think about it... a gold standard for our ever-inflating money supply, and $6300 gold.

15 February 2011: The current SGS (Shadowstats) inflation-adjusted price for gold's previous 1980 peak value (based on gold's $850 close vs. its $887.50 peak intraday price) is now... get this, $7824 per troy ounce (courtesy of The Dollar Vigilante). And, of course, as inflation increases towards, let us say 2019, we are likely to move above not only an $8000 figure, but quite realistically, a $10,000 figure as well. Caveat: If Ron Paul can tame the Federal Reserve, this could all evolve differently. However, my best guess is that we will require greater crises than we have so far seen (the 2008 crash included) before the populace can be moved towards financial sanity. My prediction - we will require repeated shocks over the better part of the present decade before we come to our senses about money-printing and debt repayment....