Gold Editorials & Commentary

There's nothing like one of my doom and gloom essays to bring out the flaming emails. No problem though cause I'm tough. Several of you aren't convinced an economic crisis faces the globe and the United States in the next six months. Fair enough.

According to the previous presentation, I had concluded based upon the data and analysis provided by David Knox Barker that the US economy was entering the final phase of the long wave cycle - winter.

A torrent of investment advisors and financial analysts screaming have been loudly proclaiming that a "new bull market" was born on Sept. 21, and that a financial and economic recovery will unfold this year.

Let’s think about economic life around the world, as it was one hundred years ago – a very short time ago, in historical terms.

In his occasional paper THE RETURN TO GOLD 1925, Cambridge University scholar, Donald E.

A taste of 'bear' . . . has many speculating that something is amiss here. Well, there is something 'amiss'; but it's nothing new.

A notation first. Last week, I wrote of the Japanese, who had saved their surplus assets in yen, and who are now losing. A few were wise. Gold sales around the world, increased by 17% in the third quarter of 2001. In Japan, gold consumption increased by 91%.

The broad market has already given us a taste of what the overall market environmental will be like for 2002 with the Dow's steady six-day decline, accompanied by the sell-off of a number of leading indicator stocks and blue-chip bellwethers.

Following is a random list of observations, notes and predictions we have made in the initial days in 2002, which we feel are adequate considerations for the overall market environment in the months ahead.

On Monday of this past week, my good friend James Turk, editor of "The Freemarket Gold & Money Report" revealed more compelling evidence that the U.S. government has been swapping its own gold to other nations.

Part 1

Steven C. Kennedy

January 2002

Let's suppose that there were a group of free-wheeling, wealthy Texans that saw a way to make an easy billion. They were already dealing with commodities, such as oil, so they understood the volatile nature of this business.

Many investors are now once again starting to watch the American gold market and are asking themselves the question, “Has the market bottomed out, and is the market now in the very early stages of the next major bull market”.  On the surface it appears that the

I titled this "Kitchen Table Talk" because I have had variations of the following conversations at the table and because this is where the grassroots movement has to come from in order to turn our society around.

Lots of 'close shaves' in our world. .

The Great American Economic finish line was 12-31-01. For many, many economic entities the dying will come quickly now that the new year has started.

I was going to go on to other currencies this week, leaving Japan alone, but it turns out I haven't finished with Japan. Or rather, Japan hasn't finished with itself…if indeed it can survive its current crisis. A correction first.

A massive and historic shift in wealth is taking place across the globe which will have profound effects on the financial markets this year and beyond.

From the transcript of the minutes of the Federal Open Market Committee on March 26, 1991 (www.federalreserve.gov/fomc/transcripts/1991/910326Meeting.

Till the advent of fiat money, the finances of man have always followed a certain historical sequence. The people produce the wealth. And the king receives his share, which his barons collect for him for a fee.

From time to time we are told scary stories of foundering economies. There have been more of them than I can recount offhand, although the Mexican economic problem sticks in my mind.

The money being pumped into the economy has to go somewhere so why not stocks? Where else will those with an abundance of money put it? I remember years ago arguing with a petroleum engineer I used to set next to when I worked at ING Barings.

An auspicious beginning to 2002 . .

While the term "money," doesn't indicate life, it is necessary, for civilization as we know it, to exist.

Napoleon once remarked that he would prefer that his generals have luck rather than skill under the theory that you can sometimes beat skill but you can never beat luck.

The recent sell-off in the U.S. government bond market provides an early warning that a crisis of far greater magnitude will befall investors in 2002.

This is a quickie, just to wish one and all a most happy and prosperous New Year!

Most natural phenomena exhibit some sort of regular rhythms. From the change of seasons to the beat of a human heart, cycles dominate much of life. Study of repeating cycles extends to almost every scientific discipline.