The Summer of 2006: A treatise on Imbalances…and the Calm before the StormPart I of II
It’s almost August, and Investor Patience wears Thin
This piece will most likely be posted around the beginning of August and then before you know it, we’ll be heading into September and a few short weeks later the autumn season will be upon us. Many gold analysts believe October may well prove to be a pivotal point in the precious metals complex due to cyclical considerations. Some pundits believe it may be a short term peak and others believe it will be just another point in the upward trajectory. So as time marches on, which direction will gold, silver, and the precious metals travel? As I’m fond of saying, I sat on my crystal ball and it “don’t work dat good no more”. But we have some excellent resources of our own and I want to share a few of them with you a bit later on.
Currently, my opinion is that we have had our last chop down and we should be moving up from here. If you want to purchase physical gold and or silver, now might be your last best chance to do so before we’re back into the $700-$900 vicinity. You ask, is that really possible? My answer to you is that it is not only possible it is probable.
Remember, we buy “paper” vehicles (stocks, options, futures, GLD’s and so on, to trade—and we purchase the physical metal to hold as an insurance policy against future unknowns.) Psychologically, it is much easier to purchase physical gold at $600 an ounce as opposed to say, $1000 per ounce. It is much easier to purchase physical silver dollars at $15 US as opposed to $35 US. It’s always easier to purchase things when they are inexpensive but of course, you know that just as you know what “sales” are about. Gold and silver are on sale.
First note on your ‘to do” list: Call Burt Blumert or George Resch at Camino Coin in Burlingame, California. Mention my name, Stewart Armstrong, or GoldSeek.com for VIP treatment and some of the best prices and absolutely the best service you’ll find anywhere. This is our gift to you. A company founded in 1959 and currently in its 47th year has to be doing something right! It is also known to some as Ron Paul coins. Yes, the one and the same Ron Paul from the US Congress who has almost single handedly advocated a sound monetary policy for America. Not many people know this, but it’s true. He’ll most likely return to being involved in the business upon his retirement from Congress.
Ron Paul Coins aka Camino Coins has a wonderful crew including Parker and Cathy and they are honest as the day is long. This company is the personification of the word integrity, and yes they do ship all over the country. However, as you can imagine, security is extremely tight so best call for an appointment if you plan a visit. They may request references but nothing out of the ordinary. Incidentally, Burt writes for LewRockwell.com and offers humor and insight into some very serious subjects.
Mr. Bert Blumert
Mr. George Resch
Camino Coin
851 Burl Way Rd., Suite 202
Burlingame, CA 94010
Office: 1.650.348.3000
Toll Free: 1.800.348.8001
Spin Machines on Overload
As the carnage intensifies in the Middle East, and oil is searching for new highs, gold languishes and is repeatedly smacked down. This is counter intuitive at best. We must realize that it is very difficult to separate the geopolitical complexities and international consequences that affect the equations dealing with fiat currencies and gold. It goes to the age old argument pertaining to gold and politics and whether gold is manipulated in order to sustain certain western political regimes and their currencies. Age old argument or not, the implications are becoming more serious and more obvious by the day.
The spin machines of most major international companies, their corresponding conglomerates, and the connected countries continue to mislead the American people and the International Community. The worse offenders are within the borders of the US. The summer of 2006 is laying a foundation for some nasty surprises in 2007 that may well be gold friendly, but not all that favorable for the status or the economy of the United States.
The summer of 2006 also finds Americans confused, stressed, and bewildered. “Are these actions or non actions by my government real or are my counter intuitive perceptions a figment of my imagination? Am I just paranoid?” Educated people need to follow their gut and they will arrive at the correct answer. I personally believe that on every level, the summer of 2006 has been one of elevated deception by the power elite. I also believe that America is being “numbed and dumbed down” on everything from the wars in Iraq, Afghanistan and the Middle East to Global Warming to the entire financial charade that passes as free markets and a strong US economy.
We are also being “dumbed down” on the immigration issues because the real question has always been what else besides the hard working Mexican labor force is being snuck across our borders. I will tell you this. Any country that loses control of its borders eventually loses control of its sovereignty.
America used to be a relatively well educated nation, with principled people who wanted to do the right thing. We are a country of extremely generous citizens who are compassionate and caring. We used to feel good about ourselves. Those sentiments are rapidly disappearing as a recent Wall Street poll demonstrated. 80% of the despondent respondents (sic) stated they did not feel secure in the future of this country for their children. The summer of 2006 has seen a gap widen between the will and the desire of the citizens and the governments of the country—governments being local, state, and federal. Please tell me where our congressional representatives have been hiding out during the summer of 2006? As America suffers, they are debating same-sex marriages and turning a blind eye towards stem cell research. Am I the only one who feels that our priorities are upside down?
Take Back Our Country?
What is it going to take for the American People to take back their country? Can it be done via the voting booth?
It is a known fact that over half of Americans are seriously in debt. In fact, so far in debt that mortgage foreclosures and bankruptcies have risen at an alarming rate. Reputable reports are emerging from erudite American university professors that by all standard accounting measures the United States is bankrupt. This is an inflammatory statement, but it certainly can be substantiated.
The summer of 2006 is one which is proving very costly to this country and its citizens and the alarming fact is that most of the citizens who pay the freight don’t even know it. But you do, and it is not too late to do something about it.
People Endeavoring to do Good Work via Independent Thinking
Get out and see Aaron Russo’s From Freedom to Fascism and give your one discretionary dollar to the promotion of a film that is truly endeavoring to get the American People to wake up and realize that it is not too late. See the banner ad on www.GoldSeek.com for details.
Al Gore helped to produce and is promoting a film about Global Warming and says we have less than ten years before the problem becomes irreversible. You might categorize this piece under the genre of a horror flick!
Part of the reason is the exponential growth of the human population. Perhaps better stated, it is the growth of the developing countries that now want to have all the “goodies” that the west uses—everything from bombs to cars to airplanes to washing machines. The Agrarian communities even though they have more children, use infinitely less resources than do their sophisticated counterparts.
The best thing that could happen to this planet would be a reduction in the growth of the human population. But we already know that. If we care about our children’s future, we are going to have to break ranks with much of the existing power elite and the religious, social, and political dogma that has for centuries exercised mind control over the masses in one form or another. It is time to become independent thinkers on every level—Political, social, religious, and personal.
Gold, fiat currencies, the abuse of Power and Our Government
Is gold a political metal? Please remember that gold and fiat currencies do not coexist with any degree of civility or stability. They are truly mutually exclusive categories because in almost every way they represent different ideals. Most importantly, politicians cannot print gold—as much as they’d like to! Gold represents real money and fiat dollars of any international currency represent IOU nothing.
Gold is suppressed at every opportunity in order to fool the public at large into believing that all parts of our society are moving as a well oiled machine. “Vote for the status quo in the mid-term elections and you can continue to expect the same!” Geeze! That’s the problem! Do we really want the same?
I think not!
More than at any other time in the last one hundred years of this country we need a fundamental change—a shift back to the center where most Americans are firmly ensconced. Americans have always been tolerant to a fault and now most of us are so distracted and feeling so disempowered that we throw up our hands and say,“what can little ole me do!?” We can do quite a bit but it always begins with the first step.
The pen is mightier than the sword! www.house.gov for your House representatives and for your Senate representatives (senators): www.senate.gov. The most effective way of stating your views is with an envelope and a stamp. Write to them more than three times and they will know who you are. In their minds, their first job is the job of getting reelected. Work off of that premise and you will become empowered.
You can fool some of the people all of the time and all of the people some of the time but you cannot fool all of the people all of the time. It would appear that most Americans are being fooled, cajoled, or distracted most of the time by one sophisticated, single-minded, linear, and extremely effective spin machine. “When we get to the point that we can’t fool all the people all of the time, we’ll just scare the hell out of them so they all fall into line or suffer the consequences.” “We, your government, will protect you from the boogie man (terror) but you must do as you’re told.”
But this is America you say; things like that don’t happen here. This is a free country—we are the beacon of light to the world. We are the ones “liberating” Iraq and backing Israel as she “defends” herself by wiping out most of Southern Lebanon. Now I’ve had my intellectual differences with Thomas L. Friedman, noted columnist for the New York Times, but I have to agree with him on a multitude of issues. Most recently, according to Mr. Friedman, the world at large now views the United States as an exporter of fear whereas pre-Bush Administration, the world viewed America as an exporter of HOPE! The summer of 2006 is finally bringing the failed policies of this administration home to roost; those policies being the one singular issue that divides most of America.
They are now becoming the issues that are uniting America. The Republic wants balance and effectiveness in their government along with a viable solution to the mess in the Middle East. It appears that the country is tired of the waste, the corruption, and the endless squabbling and bickering over all the issues ending in dollar signs. Americans want a sensible solution to the immigration problem and most of all the average American does not want an Empire. They want to take care of their own back yard including solutions to the health crisis, the medical costs, and the ridiculous out of control inflation that we are constantly told is not there. Americans are not so stupid as to discount the connection between Exxon making 10 Billion dollars in quarterly profits and gasoline at $3.00 a gallon.
The Democratic Party may be able to make some headway in the mid-term elections but will they effectively change the tenor and the demeanor of the country? Both major political parties drink at the same trough of money set forth by the multinational corporations. It is time for Americans to think independently. Maybe that is only the 50% of the country without “etched in stone” party affiliations, but it is a start.
The summer of 2006 finds the world is upside down and it is up to each and every American to learn to think for ourselves and elect some kind of independent administration which does more than just worry about satisfying the needs of the special interest groups that gave them the money to be elected. The summer of 2006 is the summer Americans need to wake up because the fat lady is getting close to singing her song.
The ever more omnipotent Media controlling an ever more ineffectual government
The media is being controlled by fewer and fewer entities that have more and more power. You receive less and less diversity of opinion and in many cases you receive less and less of the real truth of what is occurring in this country and around the world. In the west, the news is slanted to such a degree that we have to utilize all of our intellect just to ascertain whose bias is being entertained rather than understanding what the real story is about.
“Journalists” are akin to “stock brokers” employed by major investment firms. Both journalists and brokers now take their marching orders from their superiors. Brokers have a list of stocks to promote just as journalists have a list of stories to slant. Am I being too cynical? I certainly hope so.
Ladies and Gentlemen, I do believe that the tail is now wagging the dog. I believe that gold is being manipulated downwards in order to present the illusion that all is well and our US government has everything; especially “the war on terror”, inflation, and the economy under control. The problem may well be that they have it too much under control.
The Behemoth known as the US Government
I believe it is important for Americans to fully understand that our government is of such enormous size that it cannot even control itself, let alone its citizens. Want documentation? Just look at the enormous financial waste after Hurricane Katrina and the no bid contracts awarded Halliburton in the Iraq debacle. It has become a joke and just as the citizens in third world countries, we all sit around and nod our heads with resigned disgust. We are referring to billions and billions of dollars wasted in each incident as FEMA and other multi-national corporations gobbled up taxpayer’s money at unprecedented rates. Of course, we all understand the relationship between our current Vice-President and Halliburton just as we understand the relationship between Big Oil and our President.
The American bureaucracy has become such a behemoth and its tentacles are so far reaching that the CIA, NSA, FBI, Executive Branch, Legislative Branch, Judicial Branch and all points in between are absolutely uncontrollable because they are unable to communicate with one another. There are constant turf wars, and it has become so cumbersome that the left hand knoweth not what its right hand is doing. At the center of all of this bureaucracy is the mother’s milk of politics and that is money. Money in such enormous sums that it is absolutely mind numbing. How does one really understand that to gain a seat in the US Senate one must raise and spend 25 to 100 million dollars? How does one truly comprehend that this country is not 8 trillion dollars in debt, but more like 68 trillion dollars in debt? How does one get one’s mind wrapped around such numbers?
The reason that the system is breaking down is because of money and separations between the haves and the have-nots. Money corrupts, power corrupts and absolute power corrupts absolutely.
Along with that line of thinking we must consider the idea that the have-nots are not receiving the education that can bring America back to the prominence it once held in the world. We must put education back at the top of the US “to do” list. Is there anyone who disagrees with that?
I would like to think that our Founding Fathers would have had the courage and the will to reign in the proliferate spending and the insane credit expansion that we see all around us. It was never their intention to create an Empire nor is it the wish of the average American to participate in one. The summer of 2006 finds all of these factors funneling into an equation that is on the verge of systemic failure. I would close this section by saying that the last six or seven years, this country has been on a fast track to oblivion. Remember, I am neither a Republican nor a Democrat and so I have no party affiliations. I am not debasing this Republican Administration but I am saying that most Americans understand in their heart of hearts that something has gone terribly wrong.
Most of us still realize the hope that America can still offer the world and so we continue to be optimists. Americans want to be exporters of hope!
Understand Why Gold is the Antithesis of the US Dollar and Other Fiat Currencies
Understand why the Governments with fiat currencies detest it
Understand why you should own it or other gold vehicles
If you are going to become involved with gold, then it is best you understand that it is unlike any other precious metal. Gold is linked to geopolitics as is no other metal. A few years ago a paper titled Gibson’s Paradox written by Lawrence Summers and Robert Barksky and utilized by the infamous Robert Rubin. Gibson’s Paradox revisited can be found at: www.goldensextant.com If you plan on being a gold investor, it is imperative that you take the time to read what the really bright minds have to say on the subject. Rege Howe is one of those bright minds.
Remember also, that the Federal Reserve is in no way part of the US government and its creation in 1913 was truly the beginning of the end. We lost control of our currency to a group of incredibly greedy and immoral bankers and business men who managed to pull the wool over the eyes of a public that just as today, was distracted and then hoodwinked. A fractional reserve banking system was created and it has gotten worse and worse by functioning at ever increased levels of inefficiency. Just look at the buying power of today’s dollar versus the buying power of it 25 years ago, not to mention what the dollar was worth in 1913.
Again, I suggest that you find a copy of The Creature from Jekyll Island by Edward Griffin. It will truly open your eyes and shed the light of day on the Federal Reserve and how it came into existence. It will also give you insights as to how a small group of very wealthy individuals can hijack an entire country by taking over that country’s money supply and then charging it’s citizens the right to use it.
It takes $2200 in today’s dollars to purchase that one ounce of gold that cost $850 in 1980 when gold peaked during that cycle. Something has lost value and it isn’t gold. Thanks goes to the Federal Reserve.
Protect Your Families, Protect Yourself
Gold is both money and is used in commerce. Silver is also used as money but it is used much more widely in manufacturing. More than anything, gold and silver will once again become vessels for wealth preservation. Junior mining companies that are doing the grunt work for the senior gold companies will make fortunes for those wise enough to invest in them.
But it is now time to make your move and to protect your families and protect the country that our founding fathers fought for and created out of their own blood sweat and tears.
If you don’t understand by now that gold is being manipulated downwards by various governments in order to achieve certain agendas, then it is back to school for you and even a little after class homework. Of course, those new to the world of gold and precious metals, will have to go through the learning process, entertain their own due diligence, and arrive at their own conclusions. For that reason alone, there are many times when I will be boringly repetitive in order to make my points. But I am making those points for the American Ideals and the people who make up the country with hopes that the Republic can somehow be saved from the relentless political machinations by those only interested in their own agendas and their own egos.
End of Part I
PS After the conclusion of Part II we get busy. There will be updates on most of our past recommendations: OLE, NPG, BYBUF, MMRSF, GPXM, JNY, TGK, and KDX but to name a few. We will also begin coverage on GOCM and LGD. In addition, we will begin our Top Ten Lists and if you have a chance go back and revisit A 2005 Gift to the Gold Community which can be found in my GoldSeek Archives. None of those referrals have changed—they were excellent back then and they are even better today.
Posted by D.Stewart Armstrong in Articles