War Heads Closer to Home; Gold, Steel Discount its Advance

June 18, 2001

One year ago we reported that the "War and Peace" cycle was forecasting war sometime in the 2002-2004 timeframe. We followed up on this with last month's report informing you of the military preparations being made by Red China to take over Taiwan, as well as their preparations to attack the U.S. We now have yet another, more startling, revelation to apprise you of: Preparations are now being made on U.S. soil by foreign troops to undertake a martial law initiative on U.S. citizens in the very near future. Moreover, this scenario is being confirmed by recent developments in the gold and steel industries.

We have already reported on the fact that gold and gold mining shares have discounted in advance the high probability for war in the immediate future for the U.S. and many other leading economic powers, most prominently China and Taiwan. The gold sector is being joined by the steel industry as the latest metal-producing financial sector to both discount and benefit from the specter of war. We will reveal these latest developments in the paragraphs that follow.

The recent failure of rally in U.S. stock market must be interpreted as an advance signal that the hostile military actions are approaching ever closer to home on almost a daily basis. Inside traders and institutional/bank market makers receive their information well in advance of the trading public and are therefore in a position to place their trades accordingly. This is known as "trading the news" before the "news" breaks to the public. This has been rampant in recent weeks as every important cycle bottom from the 27-month bottom last December to the interim and short-term bottoms in recent weeks have failed to produce a meaningful rally-a very unusual occurrence. The successions of aborted rallies-or in many cases, of no rallies at all-strongly suggest that the anticipated future economic/political climate in the U.S. will be a negative one.

In a series of news reports from radio journalist Pam Schuffert of Germany (daughter of legendary former high level Air Force officer Jake Schuffert), the outline of this cruel and twisted quasi-military design on America has been revealed. Ms. Schuffert's reports have been confirmed and corroborated by a plethora of information from many reliable sources in recent months. Extensive quotes from her report follow:

"I have been researching in Germany for 5 months now, and everything indicates rapid training of our troops to work side by side with cooperating foreign troops for the coming conquest of America under martial law. As I read the European edition of STARS AND STRIPES almost daily, numerous military publications plus European news journals and newspapers, and interviewing actual military here, I am coming to realize the extent that the American people have been deceived and betrayed into the hands of the New World Order by her very own government and military!

"One military publication shared about a major operation involving three branches of the US military in which they were learning to work intensely together in a contingency exercise. contingency means martial law.

"Here in Europe, Americans are being rapidly trained through the Balkan crisis to work side by side with Russians, Germans and other foreign troops all under the UN blue and NATO. They are being trained in various exercises as: weapons seizures, intimidating resisters to surrender and lay down their weapons, how to operate prisoner detention camps holding resisters of this UN MNTF "peacekeeping" effort complete with guard towers, and more. Jane's defense magazine has published pictures of German Bundeswehr (military) looking over large caches of weapons seized from "insurgents, militants, etc.," all in this obvious training exercise in the Balkans designed to prepared American and foreign troops for the hour of martial law in America.

"I interviewed three German Bundeswehr MP's fresh from Kosovo, pistols strapped to their sides and white MP armbands on their arms. Here are their revealing comments (This interview took place at the train station in Munich.)

"Oh, yes, we know about our German troops in America, Fort Bliss and Holloman AFB..." I asked, "Do you know why they are there...for the hour of martial law, to help arrest Americans and seize their weapons and fire upon them if they resist?" The spokesman for the group said, "Yes, we have heard all this, and it is true."

"Looking at him intently, I asked him this question: "If martial law is declared in America..could you fire upon me?" He would not reply as he looked at me. His cold, steely eyes reflected the position of a professional soldier hardened by German military training and experience in Kosovo. Stiffening, he abruptly excused himself and his two companions and hurried off to their train. We understood each other perfectly.

"U.S. military are also being hardened through their experience in the Balkans. They are being conditioned to serving under UN blue and NATO..much as they will do in America under martial law. They are being conditioned to deal with "militants, insurgents, resisters, " which is exactly how all resisters under martial law will be labeled as by the U.S. government and military. Fellow Americans, it is truly time to wake up to the reality of the coming quest for America...and to realize the extent to which we have been betrayed and deceived in this matter. As Chuck Colson once admitted, "It is not inconceivable that, in the future, the US military will be used against the American people." I tell you, I am watching with my own eyes the preparation and conditioning of our American troops for that very hour.

"As one military soldier (whom I interviewed in Germany), a previous trainer of foreign troops in MOUT exercises at Fort Polk La., admitted to me when he read through my book, "Premonitions of an American Holocaust" (regarding the coming martial law,) "Ma'am, everything in your book is true, and I am leavingAmerica with my wife and child as soon as I can...because martial law is coming...and it will be terrible when it comes."

Reports from our sources also confirm that railroad boxcars fitted with shackles have been spotted in many locations throughout the U.S. in recent months, most prominently in Montana and Texas (including recent sightings in Ashville, N.C.). A van full of eyewitnesses, missionaries traveling across America recently stumbled across these boxcars in Montana, near Columbia Falls in Glacier. They described boxcars, in this case painted black, with shackles welded into the walls inside the boxcars. Reports from Lee Harrington of Valier, MT, who was a professional metal worker informed us of Glascow, MT, summer youth workers who were employed to weld shackles into boxcars in that operation. They were then shipped west to Glacier and stored on remote sidetracks. Passing through the Blackfoot Indian Reservation in Cutbank, a local Blackfoot Indian, George Bullcalf, spotted these strange boxcars, some with open doors and shackles, plainly visible, passing through the reservation. Interviews conducted in Columbia Falls confirmed that hunters often stumbled upon such boxcars on remote train spurts in that wilderness region.

It has since been learned that Gunderson Steel Fabrication is under secret contract from the U.S. government to produce these prisoner boxcars. The company received an order from the federal government to build 107,200 full length railroad boxcars with the shackles inside. Gunderson has a satellite factory for making the boxcars with shackles in Texas. Interestingly, Gunderson became the launching pad where then-presidential candidate Governor George W. Bush introduced his plan for social security reform on May 16, 2000, a major part of the current president's platform. Apparently, Mr. Bush has some special relation with Gunderson.

It is no secret that the U.S. steel industry, which has undergone one of the most horrific depressions of any domestic industry over the past 30 years, is emerging from this long decline with remarkable rapidity. We reported in a Gold-Eagle column in January that shares of leading U.S. steel maker Bethlehem Steel were being enormously accumulated by insiders. Since that initial report earlier this year, Bethlehem Steel shares have risen in excess of 400%. Such an impressive percentage gain in such a short period of time (especially considering the slow-moving nature of this sector) bespeaks of something extremely unusual on the horizon that will improve the fortunes of America's languishing steel industry.

Notice also the impressive bowl-shaped accumulation patterns in the stocks of many domestic steel manufacturing concerns. Take a look, for instance, at the chart for Gibraltar Steel (ROCK). The chart picture is worth a thousand words.

Steel manufacturing shares are being purchased by insiders for a very good reason. Normally, steel makers cannot expect rising profits and an improved economic outlook in the face of a developing economic depression (which the U.S. is heading into). So what's to account for the sudden interest in steel stocks? How about war, or more specifically, the manufacture of munitions and other war-related items that require heavy inputs of steel and other industrial metals.

Indeed, all economic and financial signals are pointing to the very nearness of some type of concerted military action, either at home, abroad, or both.It is now time to take every precaution against this very real threat, and that includes stepping up accumulation of physical gold to your financial portfolio.

Clif Droke is the editor of the three times weekly Momentum Strategies Report newsletter, published since 1997, which covers U.S. equity markets and various stock sectors, natural resources, money supply and bank credit trends, the dollar and the U.S. economy.  The forecasts are made using a unique proprietary blend of analytical methods involving cycles, internal momentum and moving average systems, as well as investor sentiment.  He is also the author of numerous books, including most recently “2014: America’s Date With Destiny.” For more information visit www.clifdroke.com.

10 karat gold is 41.7% pure gold.