- The mad mad scientists and their stupid ideas. The merging of human and technology.
- The drive towards One World Government continues. America is heading towards martial law… forced vaccination… lock down of entire town, city and states…. economic collapse. The banksters are taking over America.
- Is this a beta test for the Big One possibly in Autumn? This virus is clearly bio-engineered.
- Ron Paul is an honest and good man. Listen to his experience of the 1976 swine flu outbreak and the subsequent 25 deaths caused by the swine flu vaccine. Is the government trying to use this crisis to force the country into martial law? Never waste a good crisis right (Rahm Emanuel and Hilary Clinton) ? See also :
Swine Flu, Tamiflu and A Pandemic of Fear? Cui Bono?
Dr. Russell Blaylock on 1976 Swine Flu and Current Outbreak
History of Bird Flu and the Illuminati Depopulation Agenda by Dr. True Ott
Ron Paul: Be Careful of the Rush into the Swine Flu Vaccine. 1976 Swine Flu Vaccine Killed People!
- This is an interesting article, right on the money. Inflation or deflation gold will do well. With increasing political instability and realization of global financial upheaval, gold will do well. Jeff Clark comments :
Before you gag on your coffee or suffer chest pains, allow me to explain. We’re about eight years into the bull market, and gold has breached the $1,000 level twice and has spent weeks trading above the old high of $850. Some observers are now saying that gold’s pretty much had its day and that once the recession is over, it will retreat for good.
However, the four-digit gold price we’ve seen so far is with no price inflation to speak of, no effects of the atrocious increase in the money supply, and despite a rising dollar. What happens to gold when each of those pictures gets turned upside down – high inflation, excess cash jolting the economy, and a falling dollar? After all, gold’s performance to date has been powered only by general anxiety, not by any visible erosion in the dollar’s value.
I decided to take a fresh look at calculations that could be used to appraise gold’s upside potential. No one of them, by itself, comes with compelling logic. But they all point in the same direction.Gold’s Percentage Rise in the Last Bull Market. What if gold in this bull market repeats the percentage rise in the last bull market? In the 1970s gold rose from $35 to $850, a factor of 24.28. Our low in 2001 was $255.95. Multiply that by 24.28 and you get a gold price of $6,214 per ounce.
U.S. Gold Holdings to Money Supply: The M1 money supply consists of currency and checkable deposits. The U.S. government currently holds 286.9 million ounces of gold. If the government were to make each dollar redeemable by the amount of gold it possesses, we’d arrive at the following price for gold: $1.569 trillion ÷ 286.9 million oz. = $5,468.80 per ounce.
Gold/Dow Ratio: The ratio was about “1″ when gold peaked in 1980, meaning the Dow and gold were the same price. To restore that relationship at today’s stock prices would mean when the Dow is at 6,626, gold should be at $6,626/oz. Of course, we think it likely that the Dow will get a lot lower before gold peaks. But even if it drops all the way to 4,000, that would imply a gold price of $4,000/oz.
All the Money in the World vs. Gold Reserves: If the public eventually sees the paper game being run by the central banks for what it is, governments will be forced to back their currencies with gold (and perhaps other tangibles like silver). Assuming they had to go into the market and buy the gold needed to restore faith in their currencies, the numbers might look like this: Total central banks reserves (including gold holdings) = $4.8 trillion, divided by 929.6 million ounces total gold reserves held by all official institutions that issue currency = $5,246 gold price.
U.S. Gold Holdings to U.S. Foreign Trade Deficit: The size of a country’s deficit or surplus would be of no consequence if all currencies were convertible into a fixed amount of gold. However, the dollar is increasingly considered a hot potato, and when the trade balance reverses, as it must, dollars will flow back to the U.S. and fuel domestic price inflation. Based on the cumulative trade deficit of $9.13 trillion (up from $6 trillion since June ’07!) and U.S. gold holdings of 286.9 million ounces, the corresponding price of gold would be $31,822 per ounce.
U.S. Gold to U.S. Government Liabilities: Finally, the GAO (Government Accountability Office) calculates an income statement and balance sheet for the U.S. government. As you’d suspect, it is dominated by future liabilities for Medicare and Social Security. What if they had to be backed by the supply of gold? Official U.S. government liabilities now ring in at an incredible $55.2 trillion. To make good on that would require a $192,401 gold price.
No, we don’t think gold will hit $192,000 or even $32,000. And there really isn’t any surefire way to forecast the eventual high. But it’s clear that every weathervane is pointing in the same direction. So, yes, gold isn’t going to $2,000; it’s going higher.
Witness the Breakdown
When determining how to keep your wealth safe, the state of global affairs can be a powerful reminder that gold should be part of the strategy. And today our world, essentially, is on fire.
- Eastern Europe borders on bankruptcy. Brazil’s economy is falling off a cliff. Ditto Mexico.
- Protests have erupted in Latvia, Chile, Greece, Bulgaria, Iceland, Dublin, and parts of the U.S. Workers have gone on strike in Britain and France.
- In the U.S., 36 states and the District of Columbia have proposed or implemented reductions in the civil workforce. (You think customer service is poor now…)
- An astounding one in nine homes, 14 million, sits empty in the U.S. The December median price of a home sold in Detroit was $7,500. More than 8.3 million homeowners were upside down on their mortgage in the fourth quarter. Freddie Mac’s new CEO resigned after six months on the job.
- Last quarter, 12 U.S. banks failed, bringing the 2008 total to 25, the highest one-year death rate since 50 failed in 1993. More foreboding, another 252 banks joined the FDIC’s “problem list.” So far this year, 19 banks have failed.
- The central bank of Ukraine banned the early redemption of term deposits, the most popular form of savings in the country. Bank deposits have dropped 20% since September, as bank customers dodge the risk of getting locked in.
- The projected US$1.75 trillion federal budget deficit is almost four times the nation’s previous record-high budget deficit. The Times Square debt clock reads over $11 trillion. Japan’s now reads $7.8 trillion.
- High unemployment has become a worldwide epidemic, with the infection spreading.
With world economies taking it on the chin, it’s little wonder that investor interest in gold as a safe haven is growing – a trend we expect to continue. And just wait until the dollar resumes its slide, the expanding money supply jolts the real economy, and inflation kicks in.
Disclaimer – I am not a financial advisor. This is not an advice to buy, sell or hold any stocks or bonds or any precious metals.
- Seems like the Mexico outbreak is dying down a little. But WHO is about to raise the Alert Level to 6 declaring global pandemic. Do they know something we don’t? Times Online reports:
THE World Health Organisation (WHO) is poised to declare a global swine flu pandemic despite suggestions by scientists that the H1N1 virus responsible may be no more dangerous than the average annual flu season.
Health officials yesterday confirmed two more cases of swine flu in Britain, bringing the total to 15. A six-year-old Oxfordshire girl who had holidayed in Mexico became the youngest victim, while the second victim was the husband of a woman who contracted the virus after the couple returned from Mexico.
Meanwhile in Scotland, a man who flew from Texas to Prestwick via Birmingham last Thursday was named as a probable victim. All UK victims have so far shown mild flu-like symptoms and are recovering well.
The first case of pigs being infected with the new virus emerged last night when officials in the Canadian province of Alberta said some animals were thought to have been infected by a farm worker who had recently visited Mexico and became ill on his return.
The WHO is this week expected to escalate the outbreak to a full pandemic — level six on its six-point scale — because of the continuing spread of swine flu among people who haven’t been to Mexico. There is concern that the virus may become resistant to drugs.
Dr Michael Ryan, WHO director of global alert and response, yesterday said there was no evidence yet of a sustained spread of the virus outside North America. He added, however, that a pandemic remained imminent. So far, 17 countries have reported 653 cases of H1N1 and 17 Mexicans have died.
Outside Mexico the virus does not appear to be severe, despite a warning last week from Dr Margaret Chan, director-general of the WHO, that a swine flu pandemic would pose a “threat against humanity”.
Alan Hay, director of the WHO’s World Influenza Centre in Mill Hill, north London, said there are signs the virus is not as virulent as first feared. Experts believe it may be comparable to seasonal flu, which kills up to 12,000 a year in Britain, and 550,000 worldwide. Hay said: “This might not be any more virulent than normal seasonal flu infections. We feel reassured that if this develops into a pandemic it might not be a particularly severe one.”
Scientists are encouraged by initial analyses of the DNA sequence of the virus, which has found it lacks the traits that led to the death of nearly 50m people in the 1918 Spanish flu outbreak. A senior consultant who has been treating swine flu victims said: “The way they are talking you would think our culture is collapsing. This time last week we were all incredibly worried because the reports from Mexico were that hospitals were full and people were dying all over the place.
“Actually it doesn’t seem to be that severe. The symptoms are unpleasant — fevers, shivering, aches — but no worse than normal seasonal flu. Our patient made a full recovery.”
The WHO will upgrade its alert level to phase six if the virus is passed successively between three unrelated people on two continents. This has occurred in Mexico and the US, and there have been two cases of transmission between two unrelated people in the UK. One involved Barry Greatorex, 43, who contracted H1N1 after a 30-minute meeting with a colleague in Leicestershire. As a result, the WHO says it may declare a pandemic in days.
Dr Nikki Shindo, a WHO medical health officer, said the biggest concern was that the virus could mutate and become resistant to Tamiflu, the anti-viral drug. Britain has stockpiled 23m courses of Tamiflu and last week ordered 15m more, but the Centers for Disease Control in Atlanta, Georgia, says 98% of existing H1 flu strains were resistant to Tamiflu in the last flu season. Scientists are struggling to understand why this is. Shindo said: “The worst-case scenario is the virus will mutate and become Tamiflu-resistant. The best-case scenario is that it causes only mild illness and continues to respond to Tamiflu.”
In Mexico, the government has revised the suspected swine flu death toll from 176 to 101, suggesting the outbreak is not as bad as was feared. The WHO has only confirmed 16 deaths in Mexico to date, plus a Mexican child in Texas.