Taylor On Gold
I lead a panel discussion on gold at the Cambridge House in Calgary last weekend. On the panel were Bob Chapman, Bob Bishop, David Tice and Ian
Gordon. The panel's views on gold ranged from mildly bullish (Bob Bishop)
to rabidly bullish (Bob Chapman). For the sake of the discussion, I had to
assume a "devils advocate" posture as an anti-gold pro-fiat currency
establishment person. Doing so was quite amusing, especially since I have
probably been more outspoken in my belief in the legitimacy of GATA than
any of the panel members. When the notion of a gold conspiracy was brought up by one of the members, it was quite an experience for me to suggest that the boys from the Gold Anti Trust Action Committee (GATA) were nothing more than a group of extremist conspiracy nuts.
What a turn around as far as the gold panel was concerned. Last January in Vancouver the Cambridge House gold panel at that conference were in fact
suggesting in all seriousness that Bill Murphy and his crowd might have
some mental problems. GATA's allegations of a gold conspiracy were thus
laughed off the stage. The only person on the Calgary panel that was on the
Vancovuer panel in January was Bob Bishop. In all fairness to Bob, he did
not bad mouth GATA in January, though he was decidedly less committal on
the issue of a gold manipulation then than he was at the Calgary show.
Of course, Bob prefers to use the word "intervention" rather than
manipulation. Intervention is the more respectable word the government
prefers to use too. But, I wished someone could tell me the difference in
the meaning of the two words, especially when, as in the case of the
government current activities in the gold market, which it goes to extreme
efforts to conceal. Were it to openly admit it is suppressing the price of
gold as it did in the late 1960's, I could accept the word intervention.
But when such activities are carried out in a clandestine manner, as GATA
has proven they have been under the Clinton Administration and now under
the Bush Administration, how is that not manipulation?
Joe Martin, who heads up the Cambridge House Conferences is sending me the sound track next week. I hope to type up this 40 Minute discussion and pass it on to you for the fun of it. But in any event, as I recall from memory,
the panel's forecast for the price of gold one year from now was something
like the following:
* Bob Chapman - $1,000 to $2,000
* Bob Bishop - $325 to $425
* David Tice - $700
* Ian Gordon - $600 to $800
I may be off a bit on these gold price predictions. I did not jot them down when I was at the podium. When I review the sound track I will get it right for sure and pass it on to you. But suffice it to say that I have never witnessed a more gloomy viewpoint with respect to equities in general or a more bullish attitude toward gold than I did at the Calgary conference.
HOW LONG CAN THE MANIPULATION LAST?
As Bill Murphy has pointed out this past week, the line in the sand drawn
by Hannibal Lector (a.k.a. Goldman Sachs and/or J.P. Morgan) is $292 gold.
So far they have been able to hold that line time and time again.
Why $292? That price seems to represent a level above which if the yellow
metal were to rise, the bullion banks and their gold mining clients, many of whom are the victims of Hannibal Lector, would start to suffer major losses form their gold carry trade business. We understand Cambior could again begin to lose big amounts of money as the price rises above $292 because of their enormous short positioned encouraged by the bullion banks for the sake of their own profiteering madness and in playing their role as fascist crony capitalist friends of the Clinton Administration. Of course, as we have noted, the rigging of the gold price has been a cornerstone of the big dollar lie.
By slamming gold prices to ever lower levels, the notion of a strong dollar was sold to Americans and investors around the world. But that lie is now
reaping enormous destruction to American agriculture, mining and manufacturing. Just ask the California farmers who are seeing produce from
Australia push them out of their own markets because thanks to the dollar
which is driven to absurd heights, it is cheaper to haul fresh produce on a
747 aircraft half way around the world than it is for California farmers to
sell into their own markets! And this dynamic is significantly depressing
all areas of those activities that produce REAL wealth in America.
So the bankers and politicians, for the purpose of their own selfish gains
are damning America! A real case can be made that our bankers and
politicians are the real terrorists because the damage they are doing to
Americans over the long run may well be far greater than what we recently
suffered in the New York and Washington tragedies. When our economy
implodes thanks to the over expansion of credit, combined with productivity
and gold price lies, I shudder to think about what that will mean not only
to the wealth and comfort of our citizens, but also to civil order in
America. I hope and pray that I am over dramatizing this problem, but
truthfully what will happen as America enters the Kondratieff winter is
anyone's guess. During the last such period of time in the 1930's a large
percentage of Americans lived on farms and could raise their own food.
With that no longer the case, how will starving Americans react?
Anti Gold Price Fixing Case Moved to November 5, 2001
Judge Lindsay has ordered the hearing on the defendants motion to dismiss
Reginald Howe's anti-gold price fixing court case to November 5th from the
previously scheduled October 9th date. Is this a favorable or unfavorable
development as far as truth is concerned? The ever optimistic Bill Murphy
suggests it is a positive development. He reasons that the judge needed more time to properly study the complexities of the case and that if he
were inclined to throw it out, he would simply do so and get it over with.
Bob Chapman on the other hand, believes "we gold bugs are simply being
jerked around" and that we are most likely not going to get a fair hearing
on Reggie's suit.
We shall see. But one thing is for certain, Mother nature cannot be fooled
for ever. The clandestine nature of the current gold price manipulation by
our government may have kept more investors in the dark for a longer period
of time and thus allowed markets to become far more dislocated than during
the 1960's when our government last manipulated the gold market. But as
James Turk points out, our government may very well be running out of gold
and doing so at a fairly rapid pace. What happens when the public learns
about that and when millions of Americans, who still believe our currency
is informally backed by gold suddenly understand that the gold is no longer
owned by the United States, seek to buy the yellow metal with increasingly
worthless paper? The answer is obvious. Gold will be headed to the moon.
October 8, 2001
Jay Taylor, Editor of J Taylor's Gold & Technology Stocks
http://www.miningstocks.com
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