gpond
03-26-2003, 10:29 PM
US in Economic Cross Hairs of Emerging "Sino-Russian-Islamic Hegemony"
Preemptive Action Can Win this War for the US!
But Will the Bush Economic Administration Act?
There was a messenger that history speaks well of. And his ride on horseback to announce the arrival of the British at Concord, Massachusetts so the local militia could defend themselves, is a part of American folklore.
I am not for a moment comparing myself to this great patriot (Paul Revere). But I'd be derelict in my duties to the gold community by not raising an alarm that must be communicated within and outside of this community. The trend is all too obvious as to what is about to happen.
The Master of the Universe who defeated the Soviet Union was none other than Chairman Volker of the US Federal Reserve. When Volker took action in March of 1980 by cranking interest rates through the ceiling, he killed more than inflation. He killed all commodity-producing countries in the world which represented 100% of the client nations of the Soviet Union.
The Soviet Union never reduced its military spending as its Federal deficit skyrocketed. Their fatal mistake, however, was the invasion and occupation of Afghanistan. The final outcome of that debacle was the implosion of the Russian Ruble which was followed by the exposure of the non-functional balance sheet condition of everything Russian.
Communism collapsed before Capitalism thereby reinforcing the inherent strength of the capitalist system in people's eyes. Capitalism then moved towards Global Markets during an administration of the "Music Man" whose economic team did everything economically inappropriate long-term and extremely practical short-term to boost US equity markets into the stratosphere to the glee of Wall Street and the brainless financial TV talking heads who became the Gurus of the techies.
From 1996 onward, it has been official Asian/Islamic buyers of US treasury instruments that have financed the ever-mounting transmission of capital out of the US into non-US hands.
The smart bombs without a mechanism for jamming their GPS targeting are twofold: First it is the mountain of US Treasury instruments held by the Sino-Russian-Islamic challenge. This is because these instruments can be utilized to bomb the US Treasury markets into oblivion simply by a slow-down in purchasing under present circumstances.
Second is the purchase of every ounce of gold sold by every central bank, by every cartel member, by every disinvestor and by every gold producer hedger.
Now it is the United States that is in the position that the Soviet Union was in when the final nuclear economic event killed Communism.
Now the US is the largest debtor nation, getting ready to go ballistic in their debt structure via Guns, Butter and Rebuilding Iraq and maybe Afghanistan. The $350 billon Senate surprise reduction of the Bush tax cut was a step in the right direction but by no means a solution to the growing problem.
Now the US has both Afghanistan and Iraq on its hands without the financial means to sustain its objectives. Have you noticed that there is a major action taking place in Afghanistan over the past three days? The Afghans have been fighting for more generations than even they can recall. The game is fall-down when the opposing force arrives, then slowly stand up again and start their traditional guerrilla warfare. This is exactly what happened to the Russians and it is starting now for the US. It is exactly what Saddam Hussein plans after he negotiates his way out of Baghdad when we are stalemated there.
Now there is a clear probability that the greatest advantage long-term from our military presence in Afghanistan and Iraq will be the new triumvirate of power: the Sino-Russian--Islamic challenge against US Hegemony.
There is a strategy that could be used by the US to win this economic war. First, understand the weakness that is the "Clear and Present Danger" to the US. That weapon is the huge amount of debt we think we have stuffed down the throats of Asian nations. Note that Russia is already a net seller of US Treasuries. All the Sino-Russian-Islamic nations need to do to defeat the US is to hammer the US Treasury market with those instruments and the US dollar will follow the old Soviet Union's ruble into oblivion and the fall of capitalism will be right behind it. That is pure fact!
The worst concept is that of the "Intellectual Establishment Economic Ostrich" with its head in the sand thinking no one can hurt it. I have heard it said that this would never happen because foreign selling of US Treasuries would hurt the seller of the US Treasury instruments as much as the US and the US dollar. That is nonsense because US TREASURY INSTRUMENTS USED THIS WAY ARE SMART WEAPONS and this is war for survival OF THE FITTEST. The concept that General Patton would hurt himself by firing all his ammunition in the first 15 minutes of a conflict never occurred to him in battle. He was one of the greatest generals in US history because of this self confidence.
These financial instruments, the US Treasuries, are national assets of the Sino-Russian-Islamic hegemony. They are weapons and they will be fired. It is true that the greatest risk now is not the "Evil Empire" or "Axis of Evil" but rather the "Amoral Personal Enterprise Financial Genius" that will form the "Evil Corporation" that now plans to own the world. Well, it is happening now in the corporate merger of Sino-Russian-Islamic Inc. and the US has a perfect defense but will they use it? Probably not!
The defense is simple and Chairman Greenspan plus Governor Bernanke may well already know they have it. The mechanism to prevent a huge run up in the gold price (above $529) and fall in the dollar (below .62 on the USDX) is gold itself.
But before dealing with gold, the US must decide exactly what will be the event upon which victory can be claimed in Iraq.
Is Victory?
1/ Armed forces reaching Baghdad?
2/ A siege of the city of Baghdad?
3/ An attack on the city of Baghdad?
4/ An uprising of the non-military citizens within the city of Baghdad?
5/ Our armed forces camped out at the red line around Baghdad for six months?
6/ An about face and return home?
Since the constraints imposed upon the military include not killing anything shielding Iraqi forces (civilians), a classic victory is not possible.
We need to bring closure in Afghanistan and Iraq before they become the cement shoes that Afghanistan was for the old Soviet Union. But this will more than likely not occur.
Next we need to kill the tax bill completely and cut 15% from all spending programs, putting the rebuilding of Iraq on hold for better times. But this will not occur.
We may end up facing the fact that all the gold we have sold has come to naught as it has gone into the hands of those who would oppose us.
We need to know that the old tactics of making the way clear for the cartel of common interest to play the short side of gold every day in every way, sell gold from central banks, bad mouth gold at ever opportunity, and use the Exchange Stabilization fund via huge spreads to manipulate the gold market lower intra-day, will be of no use whatsoever to offset what is coming down the pike.
Gold is going to be remonetized by official Islamic sources. Gold will benefit from the fall that will occur in the US Treasuries. Gold will benefit from the fall in value of US Treasuries and from the resulting fall in the US dollar.
To offset this scenario, the US economic functionaries of this administration must remonetize gold as the tool to prevent gold from opposing the dollar before there is a confirmed technical top in Treasury Bonds.
There will be precious little time to defend once the US treasury market is confirmed technically (today's market religion) in a bear market and therefore recognized as such within the establishment circles.
I have given you here the mode of remonetization that is feasible now for the US dollar which is the "Federal Reserve Gold Certificate Ratio" tied to M3. I have suggested that it will come before June of 2004 but now feel it must come immediately. The dollar has to start becoming as good as gold if we are to avoid the downfall surely planned for us.
As the ruble left the Soviet Union in rubble, the dollar can be the demise of the Western Capitalist System.
If the egotism normal to establishment intellectuals continues to reject gold as being too antiquated for modern times, then modern times are over.
So now for the long-term understanding of what is happening in markets and the world, the US Treasury market takes center stage. To know what is happening in gold short-term ,the US dollar remains of primary importance.
I do not see any chance of reversing the long-term bull market in gold and the long-term bear market in the dollar. There must be a clear understanding that we are in the final days of the capitalist system and the weapon employed by those who would replace us is US Treasury Instruments, the soldier is the US dollar, and the beneficiary of continuing ignorance will be the price of gold.
Jim Sinclair's Mine-set... (http://www.jsmineset.com/s/Home.asp)
Preemptive Action Can Win this War for the US!
But Will the Bush Economic Administration Act?
There was a messenger that history speaks well of. And his ride on horseback to announce the arrival of the British at Concord, Massachusetts so the local militia could defend themselves, is a part of American folklore.
I am not for a moment comparing myself to this great patriot (Paul Revere). But I'd be derelict in my duties to the gold community by not raising an alarm that must be communicated within and outside of this community. The trend is all too obvious as to what is about to happen.
The Master of the Universe who defeated the Soviet Union was none other than Chairman Volker of the US Federal Reserve. When Volker took action in March of 1980 by cranking interest rates through the ceiling, he killed more than inflation. He killed all commodity-producing countries in the world which represented 100% of the client nations of the Soviet Union.
The Soviet Union never reduced its military spending as its Federal deficit skyrocketed. Their fatal mistake, however, was the invasion and occupation of Afghanistan. The final outcome of that debacle was the implosion of the Russian Ruble which was followed by the exposure of the non-functional balance sheet condition of everything Russian.
Communism collapsed before Capitalism thereby reinforcing the inherent strength of the capitalist system in people's eyes. Capitalism then moved towards Global Markets during an administration of the "Music Man" whose economic team did everything economically inappropriate long-term and extremely practical short-term to boost US equity markets into the stratosphere to the glee of Wall Street and the brainless financial TV talking heads who became the Gurus of the techies.
From 1996 onward, it has been official Asian/Islamic buyers of US treasury instruments that have financed the ever-mounting transmission of capital out of the US into non-US hands.
The smart bombs without a mechanism for jamming their GPS targeting are twofold: First it is the mountain of US Treasury instruments held by the Sino-Russian-Islamic challenge. This is because these instruments can be utilized to bomb the US Treasury markets into oblivion simply by a slow-down in purchasing under present circumstances.
Second is the purchase of every ounce of gold sold by every central bank, by every cartel member, by every disinvestor and by every gold producer hedger.
Now it is the United States that is in the position that the Soviet Union was in when the final nuclear economic event killed Communism.
Now the US is the largest debtor nation, getting ready to go ballistic in their debt structure via Guns, Butter and Rebuilding Iraq and maybe Afghanistan. The $350 billon Senate surprise reduction of the Bush tax cut was a step in the right direction but by no means a solution to the growing problem.
Now the US has both Afghanistan and Iraq on its hands without the financial means to sustain its objectives. Have you noticed that there is a major action taking place in Afghanistan over the past three days? The Afghans have been fighting for more generations than even they can recall. The game is fall-down when the opposing force arrives, then slowly stand up again and start their traditional guerrilla warfare. This is exactly what happened to the Russians and it is starting now for the US. It is exactly what Saddam Hussein plans after he negotiates his way out of Baghdad when we are stalemated there.
Now there is a clear probability that the greatest advantage long-term from our military presence in Afghanistan and Iraq will be the new triumvirate of power: the Sino-Russian--Islamic challenge against US Hegemony.
There is a strategy that could be used by the US to win this economic war. First, understand the weakness that is the "Clear and Present Danger" to the US. That weapon is the huge amount of debt we think we have stuffed down the throats of Asian nations. Note that Russia is already a net seller of US Treasuries. All the Sino-Russian-Islamic nations need to do to defeat the US is to hammer the US Treasury market with those instruments and the US dollar will follow the old Soviet Union's ruble into oblivion and the fall of capitalism will be right behind it. That is pure fact!
The worst concept is that of the "Intellectual Establishment Economic Ostrich" with its head in the sand thinking no one can hurt it. I have heard it said that this would never happen because foreign selling of US Treasuries would hurt the seller of the US Treasury instruments as much as the US and the US dollar. That is nonsense because US TREASURY INSTRUMENTS USED THIS WAY ARE SMART WEAPONS and this is war for survival OF THE FITTEST. The concept that General Patton would hurt himself by firing all his ammunition in the first 15 minutes of a conflict never occurred to him in battle. He was one of the greatest generals in US history because of this self confidence.
These financial instruments, the US Treasuries, are national assets of the Sino-Russian-Islamic hegemony. They are weapons and they will be fired. It is true that the greatest risk now is not the "Evil Empire" or "Axis of Evil" but rather the "Amoral Personal Enterprise Financial Genius" that will form the "Evil Corporation" that now plans to own the world. Well, it is happening now in the corporate merger of Sino-Russian-Islamic Inc. and the US has a perfect defense but will they use it? Probably not!
The defense is simple and Chairman Greenspan plus Governor Bernanke may well already know they have it. The mechanism to prevent a huge run up in the gold price (above $529) and fall in the dollar (below .62 on the USDX) is gold itself.
But before dealing with gold, the US must decide exactly what will be the event upon which victory can be claimed in Iraq.
Is Victory?
1/ Armed forces reaching Baghdad?
2/ A siege of the city of Baghdad?
3/ An attack on the city of Baghdad?
4/ An uprising of the non-military citizens within the city of Baghdad?
5/ Our armed forces camped out at the red line around Baghdad for six months?
6/ An about face and return home?
Since the constraints imposed upon the military include not killing anything shielding Iraqi forces (civilians), a classic victory is not possible.
We need to bring closure in Afghanistan and Iraq before they become the cement shoes that Afghanistan was for the old Soviet Union. But this will more than likely not occur.
Next we need to kill the tax bill completely and cut 15% from all spending programs, putting the rebuilding of Iraq on hold for better times. But this will not occur.
We may end up facing the fact that all the gold we have sold has come to naught as it has gone into the hands of those who would oppose us.
We need to know that the old tactics of making the way clear for the cartel of common interest to play the short side of gold every day in every way, sell gold from central banks, bad mouth gold at ever opportunity, and use the Exchange Stabilization fund via huge spreads to manipulate the gold market lower intra-day, will be of no use whatsoever to offset what is coming down the pike.
Gold is going to be remonetized by official Islamic sources. Gold will benefit from the fall that will occur in the US Treasuries. Gold will benefit from the fall in value of US Treasuries and from the resulting fall in the US dollar.
To offset this scenario, the US economic functionaries of this administration must remonetize gold as the tool to prevent gold from opposing the dollar before there is a confirmed technical top in Treasury Bonds.
There will be precious little time to defend once the US treasury market is confirmed technically (today's market religion) in a bear market and therefore recognized as such within the establishment circles.
I have given you here the mode of remonetization that is feasible now for the US dollar which is the "Federal Reserve Gold Certificate Ratio" tied to M3. I have suggested that it will come before June of 2004 but now feel it must come immediately. The dollar has to start becoming as good as gold if we are to avoid the downfall surely planned for us.
As the ruble left the Soviet Union in rubble, the dollar can be the demise of the Western Capitalist System.
If the egotism normal to establishment intellectuals continues to reject gold as being too antiquated for modern times, then modern times are over.
So now for the long-term understanding of what is happening in markets and the world, the US Treasury market takes center stage. To know what is happening in gold short-term ,the US dollar remains of primary importance.
I do not see any chance of reversing the long-term bull market in gold and the long-term bear market in the dollar. There must be a clear understanding that we are in the final days of the capitalist system and the weapon employed by those who would replace us is US Treasury Instruments, the soldier is the US dollar, and the beneficiary of continuing ignorance will be the price of gold.
Jim Sinclair's Mine-set... (http://www.jsmineset.com/s/Home.asp)