Why Gold Could Go Much Higher
Are there forces at work increasingly inflicting chaos and war on the world? If this is the case, the ceiling on gold and silver will keep moving higher. Gold went up again yesterday on bad news from the US, Norway and Europe.
The bad news is a steady drumbeat, a kind of dominant social theme in itself. The idea is that the world is a chaotic and fearful place; though such bad news is undoubtedly manmade and is thus prone to mischief and manipulation.
Trends certainly reinforce the meme. In Norway, a bomb blast and subsequent shooting left up to or more 80 dead. In the US, talks about raising the debt ceiling broke off again, leaving that country teetering on the brink of a self-inflicted insolvency. In Europe, a deal to bail out Greece by the EU's solvent North left as many questions as answers.
The world's problems can be a positive for gold and silver investors. The worse it gets, the more gold shines. "The SPDR Gold Trust (GLD) closed Friday up 0.8% at $1.56.12 a share. The iShares Silver Trust (SLV) gained 2% to finish at $39.07 a share. In futures markets, gold for August delivery gained 0.9% to settle at $1,601.50 and ounce on the Comex, just 90 cents short of a record. September silver rallied 3% to $40.12 an ounce.
Given what's going on in the world, does anyone believe that gold and silver have entered a sustained downward trend? Ten years ago, US$1,000 gold seemed fairly unrealistic and US$2,000 was seen as the top of the arc only by the most extreme gold bulls. But it seems fairly certain this leg of the business cycle is going to run until at least 2015 or 2016, and the heights that gold and silver could reach in this time period are fairly astonishing to contemplate. Is US$5,000 gold out of the question? How about US$250 silver?
It's not an argument that anyone wants to contemplate willingly, but it's one we point out regularly: If the Anglo-American power elites are intent on creating global governance and are willing to use war and false-flag events to create the conditions for such an occurrence, then we may be in for many more years of difficult times. And this will surely have an effect on gold and silver prices.
Are governments capable of acting against their own people in this manner on a sustained basis? During Operation Gladio, in order to ensure that Europeans remained sympathetic to Anglo-American causes, various kinds of para-military activities were conducted by Western Intel and then blamed, apparently, on "leftists." The Pentagon's Operation Northwoods called for blowing up an American passenger plane over the US to incite a war with Cuba.
Here is the crux investment question. If the larger Anglo-American power elite for whatever reason is either facilitating or covering up such incidents, then won't this have a ongoing, powerful price impact on gold and silver? These metals are surely safe havens as well as stores of value.
How high can they rise in purchasing power if Western elites are really provoking war and chaos? Much higher, I would venture to day. Each day now, one wakes up anticipating more unsettling news. This past week there were widespread reports of an Iranian war in the planning stages. With the US and NATO involved in six other wars in the Middle East, who would be so bold as to dismiss the possibility outright?
Back to Norway. The mass shooting was said to have been conducted by a tall, white-skinned, blond haired man, giving rise to what may already be considered a sub dominant social theme of the elites involving "white al-Qaeda." (White al-Qaeda would include those who believe Western powers-that-be are attempting to push the West toward a new world order using various kinds of false-flag violence.) One group being blamed for the larger attacks is led by Mullah Krekar, who may have had dealings with the CIA and whose group, Ansar al-Islam, was involved with the CIA and Pakistan during the long-ago war against the USSR in Afghanistan.
There is no doubt that gloomy world news continues to have an impact on precious metals. Total assets in ETFs reportedly have hit 2,155 tons, up from 2,106 tons in the year prior. A group of technical analysts for Barclays now estimate a potential gold price rise to $1,635 an ounce, though they suggest waiting for a pullback (to the US1550 area) before making additional purposes. According to S&P's Mark Arbeter, a "measured move" to $1,700 an ounce appears possible although a "blow off" move to $2,000 an ounce is not impossible either.
Presumably, such numbers would be reached if various current events yield truly negative outcomes. Knowledgeable observers had been fairly sure that the latest Euro-deal on Greece would damp down the Sovereign crisis, but doubts are creeping in. Private investors must agree to longer maturities on the bonds they hold and angry Germans will have to be convinced to accept a package that plainly asks Germany to underwrite additional European red ink.
Meanwhile, the American debt issue continues to simmer, with the two main players – House Majority Leader John Boehner and President Barack Obama –at loggerheads. Even a "successful" conclusion to this latest financial crisis will probably not yield a long-term resolution. America's debt problems are too big: A long-term strategy is called for, but it is one that eludes policymakers.
The potential for a long-feared war between Iran and Israel was a subject of increasing mainstream media speculation last week. Comments by recently retired Mossad chief Meir Dagan that Prime Minister Benjamin Netanyahu was considering an attack on Iran's nuclear facilities, launched a storm of speculation.
One might discount the possibility of an all-out regional war in the Middle East, given the terrible nature of its consequences. Unfortunately, the two parties (Iran and Israel) are so distrustful of each other that such a war seems within the realm of possibility, if not probability.
How much worse can things get? Quite a bit, and over a fairly lengthy period of time. Owning gold or silver at such high prices might seem counterintuitive but history seems to be showing us they can go higher still.
Posted by injun1 on 07/25/11 02:04 PM
Guns and ammunition seem to work just fine (lol) but in the mean time, think offshore. I enjoy your reflections, thanks.
Posted by David_Robertson on 07/25/11 06:54 AM
RE: Man and his Symbols, if it is the same one I read about forty years ago then it is by the Swiss psychoanalyst Carl G. Jung and it does indeed as I recall provide the interpretation of these symbols that are talked about on the Vigilant Citizen website. Jung was very interested in the esoteric and he developed his thesis of the human collective unconscious from these belief systems.
He also warned against Westerners trying to understand them or practise them since they were not suited to the Western mind which is predominantly intellectual whereas the Eastern mind, where most of these beliefs originate, is predominantly intuitive. This warning kept me away from them although other pointers Jung gave led me to Christ.
Posted by Bischoff on 07/25/11 02:12 AM
Yes, Click to view link's all interesting.
The fiat USD/FRN is still the world currency. Because of its ubiquity, it proves that it still has value. At this point, there is no alternative currency which cantake its place.
The problem is that while the USD/FRN still has "value", the future of the USD/FRN is doomed with a certainty of 100%. You can take this to the bank (pun intended).
Why is the USD/FRN doomed...??? Because the USD/FRN is monetized debt since 1971. Except for an isolated year or two, every year since 1971, the Congress has run an annual budget deficit which was monetized by the Fed and sold as Treasury paper paying interest. The annual budget deficits include the interest due. Since the interest debt is monetized along with all other government debt, the interest compounds year over year. Once the exponential curve which is compound interest intersects with the line representing the linear growth of the overall debt, there is no return from the abyss. The USD/FRN is on the road to self destruction, and it cannot be saved.
What is going on with the extention of the debt ceiling is nothing but Kabuki theater to cover the exploding interest expense. While it is true that the annual interest on thirteen trillion of debt is about 350 billion a year, if you balance every congressional budget from now on, it is also true that most politicians and particularly Obama want to create trillions of more debt. Selling that debt which is in the trillions will make the interest debt expense go crazy.
The original debt ceiling set at the creation of the Fed central bank in 1935 did make sense. However, once it was extended again and again, it lost its purpose which was not to have the compounding interest get out of hand. This however has now happend, and there is no return. The USD/FRN will be dead sooner or later. The question is which political party and which politicians will get the blame.
W. Bush was to take the blame in September of 2008. While the main stream meadia screemed to say that Bush had to be a fiscal conservative and reject such TARP money creation against worthless mortgages, he was clever enough to give them the finger and simply approve the TARP legislation before he left office, thereby passing off the problem of default on the interest payments to Obama.
Come August 2nd, the US Treasury will pay the interest due on the U.S. debt paper. There is no doubt. However, Obama wants to do it with paper printed out of thin air. That is all that can really be done, unless the Fed Reserve System of 1935 is forced to fall apart. It will fall apart without any question, if the Fed is not allowed to print the money by extending the debt ceiling. If the Congress will not extent the debt ceiling, the Fed without doubt will engage in QE3.
On the other hand, if the Congress checks its spending, meaning the ear marks are curtailed, then the local economies will not get its usual federal stimulus to encourage private industry to produce. Unemloyment will skyrocket and civil unrest will be a real problem, say nothing about Obama's reelection prospects.
All this Obama vs Boehner back and forth must be seen in this light. The teaparty's demands for a balanced budget in essence spells the early death of the USD/FRN, and it will usher in a worldwide depression which happens to be in the interest of the Chinese.
The American people will never allow runaway inflation. So, that's why "deflation" it is in the end. The Fed better be careful how far it will go to conduct these QEs. The QEs will be the destruction of the USD/FRN, not in the run-a-way hyperinflationary outcome, but in a deflationary collapse.
What way out...??? I have proposed the way out here many times. It is the elimination of the "legal tender" protection enjoyed by the USD/FRN. The elimination of "legal tender" currency will allow the creation of a parallel redeemable currency based on the gold standard.
Let the federal and state governments deal in irredeemable USD/FRNs. Let them pay their employees with irredeemable currency. To the extent that the American people keep accepting the USD/FRN, it is a sign that they value the services of government. To the extent the USD/FRN fails to be accepted, it signals to the government that there is a need to cut the spending.
Thta is the solution to effectively revive and grow the private local economies. It will work, and it will sort things out. Before you know it, there will be a labor shortage, and the government workers will stream to private industry to earn wages in redeemable currency which they can save to sustain them when they are sick or in old age.
I guarantee that it will work with an assurity of 100%. You can take that to the bank also.
Posted by dotti on 07/24/11 07:54 PM
You have paid me a very nice compliment and it is appreciated.
I have copied the links and will begin to plough through them--also in order as of David's links.
I was fascinated years ago by a book titled "Man and His Symbols"; I believe it had a mandala on the cover. It was a mystery to me. I started reading the book, but think that I did not follow through. I was a student at the time, as well as wife and mother and did not have much time for extracurricular reading. Now I wonder if it was related to the current study. Hmmmm.
thank you, Abu, for your kindnesses.
Posted by Abu Aardvark on 07/24/11 04:42 PM
"I don't know much about the supposed "Illuminati", but if someone can post a link that gives an accurate, yet simple and succinct rundown, I would much appreciate it."
dotti, the links below DON'T provide a particularly SUCCINCT approach, but after following your open-minded and refreshing posts for a while, I'm pretty sure you will find the information as astonishing as I did. Cheers!
"My efforts to further understand the forces governing the world lead me to study secret societies, mystery religions, esoteric sciences and ancient civilizations. I've spent the last seven years researching Theosophy, Freemasonry, Rosicrucianism, the Bavarian Illuminati and Western Occultism. These schools of thoughts have many things in common: they are based on Hermetic teachings (Hermes, Thoth, Enoch, Mercury), they attach EXTREME importance to symbolism and they recruit within their ranks the most prominent people of all fields of society: politics, law and public service. The natural result of this phenomenon is the display of occult symbolism in all aspects of society, especially music, movies and buildings. My goal is to bring out the meaning of these symbols in a clear, concise and entertaining way."
Click to view link
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Posted by David_Robertson on 07/24/11 04:33 PM
I did read something you posted about a man called Julius Evola and some of his thoughts. I have also read some material by the Trimondi couple. I must confess that this is the first time I have heard of these people and it all came about because of the spiritual battle with the Dalai Lama and his sand mandala in Washington which came to a head with the massacre in Norway.
If you have read the links I posted for Dotti you will see clearly the connection between the two events.
It is very evident that there is great deception abroad today but it all emanates from the same source, the kingdom of darkness and its rulers. What is also evident is that the nature of the struggle in the world today is spiritual not natural. There is no natural event that does not have a spiritual antecedent. Therefore if there is to be a resolution to the calamitous situation in the world it must also be spiritual.
The young man who carried out these horrendous attacks is deeply deluded about the nature of the war. As the apostle Paul said "For our struggle is not against flesh and blood, but against the rulers, against the powers, against the world rulers of this darkness, against the spiritual forces of evil in the heavens." (Ephesians 6:12)
I read somewhere that this young man sees himself as some kind of Christian warrior. The warrior is central to Tantric Buddhism so he is being influenced by that spirit whatever name it gives itself. I believe this is the connection. He also said he was combating Marxist and Muslim influences which again corresponds to the forces that Tantric Buddhism sees as its mortal enemies. He also supports Israel very strongly so this is another connection as I pointed out in my earlier post.
It seems that the Trimondis are puzzled by the admiration shown by Simon Wiesenthal and the Israelis towards the Dalai Lama given his association with Nazidom. However this is consistent with the fact that Zionism itself has an occult aspect to it and the leaders are alleged to be influenced by the Kabbala.
My own observation is that all religions have an occult dimension, Christian gnosticism or esotericism is one such, and these are all very similar in their beliefs and practices aiming as they do for the status of "ascended master". I have spoken with people from these different esoteric belief systems and they all believe much the same thing. No doubt this is one reason they put about the lie that all religions lead to God. In their case this may very well be true although the godhood they are working towards is not that of the God and Father of our Lord Jesus Christ but His adversaries as detailed by the apostle Paul in the scripture I quoted.
Posted by dotti on 07/24/11 02:51 PM
Well. I'll check it out! Guess you will, too!
Posted by dotti on 07/24/11 02:49 PM
David, thanks much!!!
I have copied the links and will read in sequence.
Thanks for your presence here at DB!
Posted by memehunter on 07/24/11 02:35 PM
Yes, I think that David's links allude to that (I have not read all of them).
Posted by dotti on 07/24/11 02:28 PM
Wasn't there some hullabaloo recently about Obama meeting with the Dalai Lama?
Posted by memehunter on 07/24/11 02:24 PM
Thanks for the links, David. In one of my numerous posts, I replied to your comment about the Dalai Lama and added some additional references, which you may already have read.
Sorry for the mess on this thread, but for some reason the posts were not appearing and I tried several times...
Posted by dotti on 07/24/11 02:23 PM
I liked the original post by Thomas, but as usual, John, you added to his thoughts.
There is not enough emphasis on the fact that the only conceivable way (not necessarily a high probability, perhaps not even a possibility) would involve growing the economy.
100% of zero is still zero.
Raising taxes is all for show--and we know who the show is for. Mostly for those who already don't pay any taxes--50% of the populace. (At least, they don't realize the taxes they pay!)
I think that the business-as-usual politics in DC is beginning to frighten some of the more cogent of the politicians: are they really going to crack and scramble the golden egg--pluck and cook the golden goose?
John, thanks for your posts.
Posted by David_Robertson on 07/24/11 02:17 PM
Here are some links that will answer your question Dotti. Read them in sequence. They are a record of the spiritual warfare that resulted in the defeat of the Dalai Lama's demonic forces.
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Posted by dotti on 07/24/11 02:12 PM
Cheers to you for your thoughtful post!
Re: "Ordinary Greeks and the others never see ANY of this "bail-out" money. The billions are sent to Greece and immediately this money is funnelled back to French, German, British banks, etc... The EU/ECB aren't bailing out these countries - which is what your treasonous politicians want their financially-feeble flock to believe - they are "bailing out" INSOLVENT, often foreign, banks - not local economies. Like-wise, the FED used QE2 to 'bail-out' European banks with subsidiaries in America. The 'American' FED is a means to an end for the Illuminati Cartel."
This is at the heart of the matter. To paraphrase the famous "It's the debt, stupid", I would say, "It's the banks, stupid".
Who is pulling the strings????? It's not seriously the politicians: it's their bankster bosses. Follow the money.
I don't know much about the supposed "Illuminati", but if someone can post a link that gives an accurate, yet simple and succinct rundown, I would much appreciate it.
thanks for your post, i.e., your "rant"! (Rather Well-put for a rant!)
Posted by dotti on 07/24/11 02:04 PM
Ingo, thanks for your post.
I am finding that more people of MBA status are "taking a look at gold". These are not your typical mom and pops, nor are they the top 5% of wealthy.
People who thought even 1% of a portfolio in gold was just plain weird are reconsidering based on their real-world information that contradicts their MBA training that gold should never be considered as an investment.
I believe that if the irresponsible printing of fiat currencies continues, we will have an economic collapse in which all fiat currencies lose their value. In such a case, there would be a return to something of a barter system. In that system, gold would be far too valuable to trade for a gallon of water or a bucket of beans. A 90% silver dime, however, may be a useful "token" to be traded.
In an earlier feedback I posed the queestion regarding what would be a worthwhile "exchange value" for gold/silver. I cannot imagine anyone trading gold/silver for irredeemable currency of any sovereign without some sort of substantial change in global financial markets. And I would find it hard to TRUST even any supposedly "redeemable" currency. Haven't we heard that before?
Thanks for your posts. Bottom line is that i consider silver to be more volatile than gold--it may end up closer to the 1/15 ratio with gold or 1/150. I don't know.
But it's all interesting, yes?
Posted by dotti on 07/24/11 01:50 PM
Hello, David. Thanks for your post. I read your post, then went to the article and read it. I returned and re-read your post.
I believe in the forces of evil and anything to do with what is loosely called "the occult" is interesting--and scary--to me.
I was especially interested in your statement that "He failed in the attempt" this July. That "The spirits had failed to enter the United States..." seemed rather vague to me. Can you provide more information?
Thanks for your posts.
Posted by John Danforth on 07/24/11 12:54 PM
No, I apologize. Sorry for the misunderstanding. Please forgive me!
Posted by dotti on 07/24/11 12:12 PM
thanks Thomas! concise and to the point.
Posted by dotti on 07/24/11 12:09 PM
injun1, I have read many of your posts with interest. This one is no exception. I wonder, however, when grandma and grandpa GET OUT of gold, to what will they entrust their assets? Do you recommend any fiat currency? Real estate? Beans and rice?
Of the three options listed above, the only one that i would see as profitable would be Option #3: Beans and rice--or alternatively, guns and ammunition.
Thanks for your posts!
Posted by memehunter on 07/24/11 11:15 AM
OK, well I wrote another comment that again does not post. Not sure what is wrong with the content of my posts...
Reply from The Daily Bell