Socio-Economics History Blog

Socio-Economics & History Commentary

Why Gold Will be the “Greatest Trade Ever”!

  • I have been a gold bug since October 2008 crash. Nothing has essentially change. The fact is: the underlying cause of the collapse has been made much worse. The snakes in the District of Criminals have implemented policy after policy that are making things worse. Of course, the corporate MSM continues to sell propaganda and manufactured economic statistics. I wonder whether the snakes are working for the banksters? This article should help answer it: Bankers Get $4 Trillion Gift From Barney Frank!
     
  • The beautiful lies are continuing, don’t worry be happy, things are getting better, even though U6 unemployment is above 20%. So long as the stock market is rallying: the economy is improving! Yeah right! The banksters are making their money, so things are moving along and happy days are here again. Yeah right!
     
  • The next phase of the economic collapse will see a flight to gold. Gold is going alot higher than most people imagine possible! Money Morning reports:
      
    Forget about all the forecasts being made for 2010. Here’s my prediction for 2015: An entirely new name – John A. Paulson – will grace the coveted top of the annual Forbes billionaires list. And the gap between Paulson and the runner-up billionaire will be huge.
      …..
    Paulson’s personal net worth of $6 billion is impressive in its own right. But over the next several years, I believe that Paulson’s trading savvy will vault him into the top spot.And the vehicle that will take him there is gold.
     
    (John) Paulson’s latest foray says a lot about how he intends to further multiply his own net worth, as well as that of his clients. That foray will focus on gold, he said during an address to the
    Japan Society in New York earlier this month.
     
    “As an investor, I became very concerned about having my assets denominated in U.S. dollars,” Paulson told his audience. “So I looked for another currency in which to denominate my assets in. I feel that gold is the best currency.”  As of June 30, gold and gold-related assets accounted for 46% of the Paulson firm’s total holdings – a colossal position that flies in the face of traditional portfolio-diversification theory and position sizing.  Yet I expect this will help him generate a brand new “greatest trade ever.”
     
    It’s also worth noting that Paulson recently announced his firm’s plan for a Jan. 1 launch of a dedicated gold fund. The fund will invest in gold stocks and gold derivatives in a way that will enable it to outperform the price of gold. Paulson is committing $250 million of his own capital to this new investment vehicle. This all adds up to one enormous wager on gold. But Paulson’s track record and reputation for research diligence make it impossible to ignore.
       …..
    Is that happening again? After all, there’s a long list of pundits who are right now saying that gold is in a bubble that could burst at any time. Ignore them. This array of “talking heads” will inflict irreparable damage on your portfolio. Besides, Paulson isn’t alone in his investment thesis.
     
    In a recent interview, author and global-investing guru
    Jim Rogers said that “during the course of the bull market [gold] is going to go much higher, it is certainly not a bubble yet.” To underscore his point, Rogers said that “I don’t think this is the top,” and said that “I’m not selling under any circumstances.”
     
    Also in this camp is
    Victor “Trader Vic” Sperandeo, whose 40 years of market experience has included stints with George Soros and Leon Cooperman. “Well, I’m on record across the world as saying that gold is the best investment in the world for the next two to three years,” Sperandeo said. “If you go back to its lows, and you compound where [gold] is today, it’s about 6.5% compounded. That isn’t a bubble.”
     
    Where Does Gold Go Next?
    More recently, however, gold has experienced an unprecedented run. At one point, for example, it sprinted from $1,050 to $1,218 in under 30 days flat. That’s an impressive 16% gain.  Between late October and early December, the precious yellow metal saw 14 record closes in 17 days.  So its recent pullback is not only unsurprising, it’s healthy. Don’t forget that gold’s clocked a positive gain every year since 2001.  Yet gold’s run is far from over; rather, it’s just getting warmed up…
     
    My research tells me we’re currently in what I’ve labeled as “Stage Two” of the current bull market in gold. Stage Two begins when gold decouples from the dominant currency (something that’s clearly already taking place against the U.S. dollar). The yellow metal then rises against most other currencies, as investment demand kicks in. As they attempt to forecast gold’s next move, market observers often rely on the U.S. dollar as their chief barometer. That’s a futile game.
     
    While the greenback does have an impact on the price of gold, it’s more correlated to shorter-term price movements. Comparing the U.S. dollar’s exchange rate to other currencies is only mildly helpful.  The reason: Because America is such a big consumer of global goods, other nations will move to devalue their currencies to make sure that their exports remain competitive.
     
    The best barometer, then, is the price of gold versus all “
    fiat” currencies, since gold is “real” money and those other currencies aren’t. A good proxy here is the U.S. Dollar Index, which is composed of euros, Japanese yen, British pounds, Canadian dollars, Swedish kronas, and Swiss francs. Gold easily surpassed its previous 2008 high against this basket of currencies.  We are clearly on a path of competitive fiat money devaluation. Only two years ago, one ounce of gold bought just eight units of the U.S. Dollar index.  In early 2008, that ratio had spiked to 14 units. After recently peaking at 16, an ounce of gold still buys 15 units. Look for the upward trajectory to continue – and to do so for the long haul.
     
    There’s only one possible conclusion here: Gold’s value is rising against all major fiat currencies.
     
    The Growing Global Demand for Gold
    Another hallmark of Stage Two in a gold bull market is when sophisticated investors take positions of their own. Investors in Asia, Europe and many other global investors have a much stronger affinity for gold, and understand its ability to preserve wealth. Experienced and professional investors alike make their portfolio allocations at this point in the cycle, and Paulson’s just one of several institutional investors who exemplify this out point of view.
     
    The purchase of 200 tons of
    International Monetary Fund (IMF) gold by India’s central bank in late October helped propel gold to its recent record highs. Given that this was the single largest purchase of gold by a central bank in the past 30 years, its dramatic effect is justified. 
     
    But two aspects of this landmark transaction are especially noteworthy.  First of all, India was comfortable enough with gold at $1,045 to part with $6.5 billion – no small outlay, even for a central bank. And second, India chose gold over unbacked fiat currencies.
     
    Other growing global economies have also been hoarding physical bullion, says the
    World Gold Council, which forecasts that 2009 will see a new trend asserted: Central banks will become net gold buyers for years to come. 
     
    Also Fueling the Gold Bull…
    I’ve already made a strong case for gold. But those aren’t the only catalysts pushing gold higher. In fact, here are a few more:
     
    – Since its 1980 peak, gold’s only up 65%, while inflation is up 175% and stocks have gained 900%: there’s plenty of ground to make up.
    – Scores of junior gold explorers and miners still trade below book value; many are still too cheap.
    – Gold production peaked in 2001 and has been falling since that time, meaning that the supply-and-demand dynamic points to much higher prices for gold.
    – Sovereign-debt defaults are a growing risk, against which gold is the best insurance (see Greece, Ireland, Spain and other recent ratings downgrades)
    – There’s growing interest in gold. But the masses have yet to join in; when the typical investor and consumer starts to view gold as an essential holding, the price of gold will begin a near-vertical ascent – a near-mania/near-bubble scenario that could cause gold to more than double from current prices.
     
    I said at the beginning of this piece that Paulson was headed for the No. 1 spot on the Forbes billionaires list. Now you know how he’s going to get there.

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. I am long gold and silver.

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December 31, 2009 Posted by | Economics | , , , , , , | 4 Comments

Alex Jones: Bilderberg Group, Depopulation and New World Order! The Rise of The Global Fascist Police State!

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December 31, 2009 Posted by | EndTimes, GeoPolitics, Social Trends | , , | 7 Comments

Bob Chapman: Sovereign Debt Default, Dollar Devaluation, Monetary Crisis and Gold $2500 In 2010!

December 31, 2009 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Comments Off on Bob Chapman: Sovereign Debt Default, Dollar Devaluation, Monetary Crisis and Gold $2500 In 2010!

Congressman Ron Paul: Attacking Yemen?

  • Quote :
     
    “The bigger the problem and the more the fear is built up, the more they take away our personal liberties and turn us all into zombies and the American people go along with it and say as long as it makes us safer I guess it’s OK to go along but it’s time the American people woke up and started realizing that there’s a bit of propaganda going on and quite possibly this incident will not only undermine our personal liberties but will also accelerate our intervention and the violence occurring in the Middle East,” 

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December 31, 2009 Posted by | GeoPolitics | , , | 1 Comment

America: A Perpetual State of War! Pentagon War Expenses Exceed Taxes Collected in All States ?

  • An evil empire is rising. America is its military arm! America is being sacrificed. The nation has been in perpetual war since World War 2. The Illuminati banksters have fed their military industrial complex for well over 6 decades and they are continuing to build up this war machine. The final end game is around the corner: the coming World War 3, which undoubtedly America will be a major part of. Thereafter, America as we know it will cease to exist. The war machine and the industrial corporations, Big Oil…etc. will be merged into this New World Order, One World Government, Global Corporate Fascist Police State. This will likely happen within the next 3-5 years.
     
    Daniel 11:36-39 (New King James Version) (emphasis mine)
    36 “Then the king shall do according to his own will: he shall exalt and magnify himself above every god, shall speak blasphemies against the God of gods, and shall prosper till the wrath has been accomplished; for what has been determined shall be done. 37 He shall regard neither the God[k] of his fathers nor the desire of women, nor regard any god; for he shall exalt himself above them all. 38 But in their place he shall honor a god of fortresses; and a god which his fathers did not know he shall honor with gold and silver, with precious stones and pleasant things. 39 Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain.
      
    Revelation 13:3-4 (New King James Version)
    3 And I saw one of his heads as if it had been mortally wounded, and his deadly wound was healed. And all the world marveled and followed the beast. 4 So they worshiped the dragon who gave authority to the beast; and they worshiped the beast, saying, “Who is like the beast? Who is able to make war with him?”

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December 31, 2009 Posted by | EndTimes, GeoPolitics | , , , | 6 Comments

Wayne Madsen: Botched Staged Flight 253 Attack “A Pretext For War” !

  • The Christmas ‘underwear bomber’ staged false flag attack is to promote the war on Yemen. The whole middle east is being lit up with war flames. The final piece of this jigsaw is Iran. The propaganda is being stepped up The CIA is undoubtedly de-stabilizing the country internally. It is their usual method of ‘colour revolutions’ as used in former Soviet republics of eastern Europe. Zionist Israel seems to be having their final coordination meeting for a war against Iran. PressTV reports:
      
    Israel summons envoys from all over the world
    Israel’s ambassadors and consuls generals from all over the world have been summoned to attend a conference to be held over global challenges facing Israel. The meeting to be attended in Jerusalem Al-Quds on December 27-31 is hosted by the Ministry of Foreign Affairs, headed by Deputy Prime Minister and Foreign Minister Avigdor Lieberman, the ministry reported on its website.
     
    “The idea is to facilitate direct dialogue with the country’s leaders, mutual updates on major diplomatic issues, and a discussion of action plans to deal with the challenges awaiting Israel in the international arena in the coming year, including the Iranian threat,” it said. This is while Israeli Prime Minister Benjamin Netanyahu has called a report by the UN Human Rights Council’s Gaza commission a real threat to Israel.
     
    The UN Special Rappoteur for the occupied Palestinian Territories has also urged western powers to push Israel to end its blockade of the Gaza Strip immediately. Richard Falk also called for economic sanctions against Israel. This is the first time a conference for all of Israel’s heads of missions has been held.
     
    Benyamin Netanyahu will also attend the conference along with Defense Minister Ehud Barak, Minister of Intelligence and Atomic Energy Dan Meridor, and other senior officials. 
     
  • Keep in mind the Satanic World War 3 Plan :
     
    Satanist Albert Pike and Three World Wars
    “The Third World War must be fomented by taking advantage of the differences caused by the “agentur” of the “Illuminati” between the political Zionists and the leaders of Islamic World. The war must be conducted in such a way that Islam (the Moslem Arabic World) and political Zionism (the State of Israel) mutually destroy each other. Meanwhile the other nations, once more divided on this issue will be constrained to fight to the point of complete physical, moral, spiritual and economical exhaustion…We shall unleash the Nihilists and the atheists, and we shall provoke a formidable social cataclysm which in all its horror will show clearly to the nations the effect of absolute atheism, origin of savagery and of the most bloody turmoil.
     
    Then everywhere, the citizens, obliged to defend themselves against the world minority of revolutionaries, will exterminate those destroyers of civilization, and the multitude, disillusioned with Christianity, whose deistic spirits will from that moment be without compass or direction, anxious for an ideal, but without knowing where to render its adoration, will receive the true light through the universal manifestation of the pure doctrine of Lucifer, brought finally out in the public view. This manifestation will result from the general reactionary movement which will follow the destruction of Christianity and atheism, both conquered and exterminated at the same time.” 4 

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December 31, 2009 Posted by | EndTimes, GeoPolitics | , , , , , | 1 Comment

Gerald Celente: Obamageddon 2010! Major Terror Attack and More Wars. Economic Collapse and Monetary Crisis! Dollar Devaluation, Bank Holiday and Gold!

  • Gerald Celente, the uber trend forecaster of Trends Research, has this to say about 2010:
     
    Celente Predicted Terror In 2009 More To Come In 2010
    Kingston, NY, 29 December 2009 – For months, on radio, TV and in alerts to Trends Journal® subscribers, Gerald Celente, Director of The Trends Research Institute, forecast that terrorist attacks were imminent, and that in 2010 they would intensify within US borders and abroad. In an on-air 13 November interview with the Governor of Minnesota, Tim Pawlenty, Celente said “we are looking for terror strikes to become very probable in 2010.” Singling out the barely reported Saudi/Yemen hostilities and citing the US-instigated massive attacks by the Pakistani military in the Swat Valley and South Wazirstan, Celente warned that the stage had been set for another round of terrorist activity. http://enews.trendsresearch.com/m/656GdUADoKZhtwZo
    FX3eYAV7xTwnIl3_vzH8nUA2ILlMjBqzRw
     

    “The years of war in Afghanistan and Iraq have intensified anti-American and anti-NATO hatred,” said Celente, “creating legions bent on seeking revenge. And now with America aggressively spreading its War on Terror into Pakistan, we see a strong possibility of the animosity metastasizing into far-flung strikes, potentially of 9/11 magnitude.” 
     
    The Christmas Day attempt to blow an airliner out of the sky and onto the streets of Detroit is an omen of what to expect in 2010, predicted Celente. However, Homeland Security Secretary, Janet Napolitano, making the talk show rounds, saw it differently. “We have no indication that it is part of anything larger,” she said
    “Whether the issue is terror or the economy; whether it’s the head of Homeland Security or the Federal Reserve, it’s the same old story, with the same old people who didn’t see it coming telling us what to expect next,” observed Celente.
     
    “Terrorism has evolved. Big-time terror is becoming more self-radicalizing. They don’t need an organized movement such as Al Qaeda or a leader like bin Laden to wreak havoc. A whole generation of Muslims ­ enraged by US occupations, Predator drone strikes on their sovereign nations, ongoing civilian deaths, and belligerent US foreign policy initiatives ­ is preparing to do unto others as others have been doing unto them.
     
    Celente said the Nigerian-born terrorist who tried to bring down Northwest Flight 253, Umar Farouk Abdulmutallab, demonstrates the scope, capabilities and global reach of the terror spectrum: the lone-wolf, the professionally trained but unaffiliated, and the organized terror groups and cells. Thus, even if the explosives and training came from Yemen-based al Quaeda, the inspiration to suicide-bomb the airplane could have been self-initiated rather than an instance of an obedient soldier following orders.
     
    The outrage is not confined to any specific demographic, stereotype or profile. It ranges from the well-educated and well-off, Abdulmutallab, son of a banker who lived in a three-million dollar London apartment, to the poor and oppressed.  
     
    As Celente forecast in the Top Trends of 2010 issue of the Trends Journal®, “There’s a high probability of wild card terror-strikes with the potential to cripple the global economy.”
     
    Oil spikes, market crashes and financial panic will ensue should an attack of 9/11 scale hit the US or any major oil producer. “The cross-border fighting between Saudi Arabia and the Yemeni Houthi rebels is precisely the type of conflict that could destabilize world oil markets. Should the fighting intensify, the Saudi’s risk an attack upon their oil facilities, which could curtail supplies, drive prices higher and seriously damage the already imperiled world economy,” said Celente.
     
    Yemen, which suffered through civil war 15 years ago, is again being torn apart by religious and ethnic tensions in both North and South. With 50 percent of the population under age 15 “We’re looking at an incredibly unstable situation over the long term,” says Celente. “Anti-Americanism is the one unifying sentiment. At a rare public rally in South Yemen, Al Qaeda militants told the crowd ‘there is no problem between us and you. The problem is between us and America and its lackeys.'”
     
    Celente cautions that economic turmoil and disruptions to the US infrastructure and daily life due to terrorist acts are a strong immediate probability, not a distant possibility. “Before terror strikes, our advice is to prepare for the worst. What if banks close and ATMs crash? Will you have cash on hand to make it through a crisis? What if a nuclear power plant is attacked and you live within range of fallout? What if a WMD, dirty bomb or biochemical weapon is detonated in your city? Do you have escape plans and escape routes? If anything less than the worst happens it’s always possible to pull back. For the unprepared there is no fallback position and few options,” concluded Celente.

     
  • See also:
      
    Gerald Celente: Trends 2010-2012
    Celente: Breaking Point 2010! 

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December 31, 2009 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , | Comments Off on Gerald Celente: Obamageddon 2010! Major Terror Attack and More Wars. Economic Collapse and Monetary Crisis! Dollar Devaluation, Bank Holiday and Gold!

Ukraine Flu Fatalities Spike to 698 – One Day Total 23!

  • This mysterious Ukraine flu seemed to have died down somewhat at end November. But for the past week the infection numbers are swelling and the mortality rate has gone above 20 per day. It looks like this biological attack is far from over. The good news is that there are little reports of it spreading outside Ukraine.
     
  • Ukraine is the bread basket of the former Soviet Union. It produces enormous amounts of wheat and is a major exporter. I wonder how this will affect wheat production? Hopefully, there will not be any impact at all. No reason flu should impact grain production I suppose.
      
    Ukraine Fatalities Spike to 698 – One Day Total 23
    Recombinomics Commentary 23:55
    December 30, 2009
     
    3,722,314 Influenza/ARI   (52,563)
    210,136 Hospital   (+3,123)
    698 Dead    (+23)
     
    The above
    update is the latest report from the Ukraine Ministry of Health.  The increase of 23 dead in the past 24 hours is similar to the prior two days, bringing the three day total for this week to 65, which is similar to the rate at the beginning of the outbreak in October.  The largest jump in the past 24 hours was in Donetsk, where the five fatalities raised the season total to 85 (see map).  Although cases and deaths are decline across much of the northern hemisphere, the high death rate in Ukraine provides support for another wave of H1N1 in early 2010.
     
    The high death rate also raises concerns about receptor binding domain changes.  Sequences released from
    four fatal cases by Mill Hill had D225G.  Two more sequences, released by the CDC had D225N and were also likely from fatal cases.  Recent reports of D225G and D225N in the same patients raise concerns that both changes were in these patients and sample selection or virus isolation procedures led to detection of one of the two receptor binding domain changes.
     
    However, the high death rate associate with either or both of these receptor binding domain changes raises concerns of the emergence of the changes at a higher frequency.  Therefore, release of additional sequences from early as well as recent fatalities would be useful.

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December 31, 2009 Posted by | Medicine & Health | , | 1 Comment