- In 1999, I correctly projected that a 19 year bear market
in Gold was over. In 2000, I said that in my opinion, the Stock Market
was topping out. In 2005, on the Jeff Rense program, I said that the Real
Estate market was showing all the signs of a classic topping out process,
just as the stock market had done in 2000. In 2005, I warned that in a
creditor-debtor relationship, there comes a point at which the creditor
will no longer lend to the debtor if the creditor begins to suspect that
the debtor lacks the capacity to repay the debt.
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- The USA is now the world's largest debtor nation. We
are borrowing in excess of 80 percent of the world's net savings just to
pay our daily bills. China, our creditor, now realizes that we are borrowing
to the point where THE DEBT IS PROBABLY NEVER GOING TO BE REPAID! With
little fanfare, and as quietly as possible, the Chinese repositioning out
of Dollars and into Gold is gaining momentum. The NeoCon Artists have accelerated
U.S. borrowing to unsustainable levels.
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- The Chinese Economy is having problems absorbing the
massive influx of excess dollars. HOW SURPRISED ARE WE THAT A TOP CHINESE
ECONOMIC POLICY MAKER HAS SAID THAT CHINA SHOULD BUY GOLD AND GET RID OF
EXCESS DOLLARS NOW!? China now has the world's largest currency reserves--even
more than Japan! China currently has ONLY 1 PERCENT OF ITS RESERVES IN
GOLD, AND A HUGE EXCESS OF DOLLARS! Can you IMAGINE THE EFFECT ON GOLD
PRICES with even a small portion of the more than $820 BILLION IN CHINESE
RESERVES--MOST OF WHICH ARE IN DOLLARS--exiting the dollar to BUY GOLD
NOW!? Yu Yongding, a top economic policy maker of the People's Bank of
China, said that China must BUY GOLD and SELL DOLLARS to protect the Chinese
economy from the dangers of a BIG DEPRECIATION OF THE US DOLLAR!
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- Meanwhile, in the last few days, the International Monetary
fund has issued an urgent warning that U.S. deficit spending HAS INCREASED
THE RISK OF A MAJOR U.S. ECONOMIC CRASH that could SEND TSUNAMI-LIKE SHOCK
WAVES AROUND THE WORLD! The coming crash could make the GREAT DEPRESSION
SEEM LIKE A MINOR TREMOR BEFORE A MAJOR ECONOMIC EARTHQUAKE! A word to
the wise...
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