GOLD IS 'BREAKING FREE'
Alex Wallenwein
Or at least it seems that way. No, it is not just breaking free from 'government manipulation.' It is also breaking free from what used to be seen as its defining forces: the weak dollar/strong euro, the 'economy' (or rather the government's predigested official figures and pronouncements), the stock markets, and consumer sentiment.
Why do I say "it seems that way"? Because it isn't really gold that is breaking free. It is all of the official distortion and manipulation that now shows its true face by moving in directions that are incompatible of a truly free market, of which gold (yes, even COMEX gold to some extent) is a bed-rock indicator.
For, it is not gold that is breaking free. Instead, it is a gold market in the early stages of its phoenix flight after the fire that is proving the 'markets'to be what they really are: smoke screens, mirrors, and flimsy images projected onto the screens of our minds, images that keep us entertained and riled up in contrived emotional responses. All that, while the real indicator, gold, a real life version of Rudyard Kipling's mythical "Gods of the Copybook Headings," is searing its trail of "slaughter and terror" through the lies of officialdom, exposing them for what they truly are: lies, twisted half-truths, contortions, illusions, and deflections.
During the last week, we saw an increasing tendency of even the manipulated COMEX gold price to move up DESPITE the Dow-wow moving up, the dollar moving up, the euro dropping, the US economy supposedly recovering - and the fact that there is "no quagmire" in Iraq.
The relatively large gold move up this last week on Wednesday, followed by a refusal to move back down on Thursday and a further move up on Friday, probably has many reasons, but we cannot help but wonder whether the following news did not have at least some impact on that move:
"IMF draft sees potential for more dollar depreciation"
Wednesday August 27, 5:25 am ET
"MILAN, Aug 27 (Reuters) - The International Monetary Fund sees further potential for a depreciation of the U.S. dollar due to the high U.S. current account deficit, according to a draft IMF report obtained by Reuters."
"The IMF sees further potential for a depreciation of the dollar given the high current account deficit", the draft report said."
"It sees the U.S. budget deficit reaching 6.1 percent of gross domestic product in 2003, with a structural deficit of 5.2 percent of GDP, and only expects a slight decline in 2004, according to the draft World Economic Outlook due to be submitted at the annual meetings of the IMF and World Bank (News - Websites) in Dubai in September."
"The IMF sees U.S. GDP growth accelerating to 3.6 percent in 2004 due to "unprecedented" monetary and fiscal policy stimulus, adding that growth may be even stronger than predicted."
This little Reuters snippet carries some heavy-duty messages - messages that seem extremely surprising, coming from the International Monetary Fund. The IMF is under the virtually total control of the US and world banking powers. The US owns the largest single share of its assets. In the past, the IMF was the US' primary international monetary policy
management tool, the instrument by which the US shoved its dollar-reserve system down the throat of almost every single developing nation in the world - with European support.
The IMF is a creature of the 1945 Bretton Woods conference that established the dollar-reserve system based on the then-existing international 'gold-exchange standard.' It somehow survived the collapse of the Bretton-Woods system in the late 1970s and continued to expand its influence even after Nixon abrogated the gold-exchange standard in '71.
It is this very institution that now announces (admits) openly that the dollar is in effect finished. But that's not all: there is more.
Read the very last paragraph again: "The IMF sees U.S. GDP growth accelerating to 3.6 percent in 2004 due to "unprecedented" monetary and fiscal policy stimulus, adding that growth may be even stronger than predicted."
This is truly breathtaking. It is an admission - by the world's foremost monetary authority - that our much-vaunted current US economic "recovery" is nothing more than the product of Alan Greenspan gearing up his paper-factory called "the Fed.".
It is telling (informed) investors the world over that the US "recovery" is bound to fail! It is telling investors the world over to bail out of US paper assets. And this is coming from a formerly US controlled world-entity. Can you fathom the significance of this?
What does it mean? It can only mean two things: either the US administration wants the dollar to collapse (yeah, right!), or the administration is not in control of those (even in the US) who make world monetary policy. We already know that the US administration no longer has any sway over the euro-nations as far as ensuring dollar-support goes. But now we may begin to witness the breakup of dollar-support even within US circles.
This is a tacit official recognition from the 'highest of the high' (high on what?) That the US trade and current account deficit-induced worldwide dollar infusion is at its end, that it is no longer workable, and therefore not worthy of continued support. It is also a wink with a flag pole that the euro now is coming closer to having sufficient depth to start taking over some of the dollar-reserve's past burdens.
Granted, this short article came out at the very same time or only shortly before the steep run-up in gold prices on Wednesday. It is hard to determine the exact timing of its release, but everything needs some time to write up and get published. The information contained in the report surely was available to the movers and shakers in the world some time before the article about the report 'hit the stands.'
Nevertheless, no matter whether or not this article influenced the Wednesday gold move, the article is outrageous news in and of itself. It is almost of the same order of significance as the announcement of the Washington Agreement by which the euro-nations declared to the world their intention of no longer supporting, full-throttle, the US gold suppression of the past.
Got gold?
Alex Wallenwein
Editor, Publisher
The EURO VS DOLLAR CURRENCY WAR MONITOR
www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
September 1, 2003
- What do you do when all your investments are doing great, when you have a high-paying job or successful business, but the dollars you earn are dropping and dropping in value?
- The euro continues to beat the tar out of the dollar (and your pocketbook) and there is no end in sight.
- How will this affect your money, your job/business, your retirement, and your kids' education?
- You owe it to yourself, your family, and your future to find out.
Find out NOW. Free Report: currencywar@getresponse.com
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