Taylor On Equity & GOLD Markets
The strong dollar is destroying the American economy and with it
American
society. The banking industry, which has more than any other industry a
say
in how our country is run, loves a strong dollar because it draws
capital
into the U.S. and capital is the "material" which it shuffles about and
in
the process "earns" obscene profits.
To fabricate the myth of a strong dollar, the Clinton/Rubin/Summers team
engaged in a market manipulation of the one currency that is superior to
the
dollar, namely gold and then spun a U.S. productivity myth that seemed
to
legitimize a strong dollar.
The productivity fib is now being exposed by the biggest quarterly
decline in
profitability in American history. S&P now estimates that the drop in
the
second quarter was about 28%. "Business Week's" second quarter survey
shows
profits down 52% and the "Wall Street Journal" shows profits down 67%."
As
Richard Russell said on Monday, "What ever is happening is happening
fast,
faster than I've ever seen before." And given Richard's age (he is
somewhere
in his 70's) that is saying something.
The low gold price was another "lie" told by the Clinton Administration
that
also seemed to justify a strong dollar. The gold lie, created by market
manipulation, is being exposed now by GATA. Their case is getting
stronger
and stronger by the day. As James Turk noted in a discussion I had with
him
this past week, less than one in a million Americans know or believe
what is
being revealed by GATA. All that may begin to change at 3:30 p.m.
Tuesday,
October 9, 2001. It is then that a hearing on a motion to dismiss
Reginald
Howe's anti-gold price fixing lawsuit against some of the most famous
and
powerful institutions on the face of the earth is scheduled to takes
place.
The judge might have summarily dismissed Reggie's lawsuit, but so far
has
chosen not to do so. Perhaps, under pressure from the bankers he still
will.
But if plans move forward as now announced by the court, it means Reggie
and
the GATA team will have a chance to tell their story to a world. And if
that
happens, GATA should begin to receive the respect it deserves for its
work in
revealing evidence of a major financial and political scandal. And,
assuming
GATA's powerful evidence of a manipulated gold market is made public by
the
establishment press, it is hard to see how the price of gold will not be
affected to the upside, and perhaps sharply so. The lawsuit brought by
Reginald H. Howe, was against the Bank for International Settlements,
the
U.S. Federal Reserve and Treasury Department, and several large bullion
banks.
An actual hearing, even if only on the motion to dismiss, should begin
to get
the main stream media's attention and hopefully get the world to begin
to
seriously focus on GATA's allegations. As that happens, the world
should
finally begin to understand that the dollar has been strengthened not
because
of Clinton's great economic policies, but because of manipulation of
markets.
And in the process, the gold price lie, used to bolster the strong
dollar
myth as well as the true bullish fundamentals for the yellow metal
should
come to light. If that happens, all bets will be off with respect to the
depths to which the dollar may decline given the enormous levels of
dollars
held by foreign interests. Likewise, to the upside, all bets will be off
with
regard to the potential for gold.
The news that at least the motion to dismiss Reggie's lawsuit will be
given a
hearing was the first of two major pro GATA events that took place last
week
while I was in Paris. The other major bit of news was evidence
disclosed by
James Turk that indicates the possibility that despite denials from our
government, as much as 87% of the U.S. gold supply may have effectively
been
sold or at least encumbered by other nations. The combination of these
two
events could trigger a huge move for gold.
As we have frequently noted, the ability to orchestrate a continuously
lower
gold price was a cornerstone to the Clinton Administration's strong
dollar
policy. But by rigging the gold prices to ever descending levels, the
Clinton
folks may have sold American down the drain not only by ridding our
coffers
of our very basic monetary foundation, but also by putting American
industry,
mining and agriculture out of business.
How ridiculously overpriced has the dollar become? Let me give you an
example. According to reports I have received from Dr. John Whitney, CEO
of
Itronics, Inc., Thanks to the strong dollar, California orange and
avocado
producers are no longer able to compete with orange and avocado
production in
Australia and New Zealand. It seems that when exchange rate for the
dollar is
factored in for producers in those countries, they are able to load that
produce on 747 aircraft and fly it half way around the world and sell it
more
cheaply in California than farmers producing the same fruit right in the
California! The point is that American prouders are being run out of
business by a rigged dollar market. The dollar has been artificially
strong
thanks to capital flows into America which have taken place as a result
of a
rigged gold market and lots of spin and downright lies about
productivity.
But what do the bankers care? At least up until now, they have made a
killing
moving fiat money around, which with gold out of mind, they have been
free to
create with little or no restrictions. Then the get to profit from it
again
as the $1 billion per day trade deficit re-enters the U.S. market
because of
profitability assumptions based on fabricated falsehoods. Obvioulsy such
defiance of the natural laws of markets cannot last for ever. Signs are
abounding that a major change for both gold and the dollar may indeed
just
now be getting underway.
August 21, 2001
Jay Taylor, Editor of J Taylor's Gold & Technology Stocks
http://www.miningstocks.com
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