Thursday 18th August 2005 AD
"HOW CLEVER OUR CENTRAL BANKS"

Close to 100 of us have gathered in sleepy Dawson City, Canada, home of the largest gold rush in North American history. Mostly bankers, economists financiers, miners, geologists and market commentators, we are now being reminded, "our world is in serious trouble!" A sobering thought to break the beauty and tranquility of our far northern surroundings. 

Our esteemed Swiss Banker is reaching his conclusions; 

"There will be no more Federal Reserve, but number two" he continues, "Most other central banks will go too. Central banks invented this terrible monster of "the lender of last resort," which allows irresponsible banks and the wealthy financial folk to speculate without real risk of their own. It has led to an incredible buildup of financial leverage. And at the end it leaves ordinary people holding the bag." 

"None of this would occur if we had an honest monetary structure. We don't need central banks. The once mighty Bundesbank, the bank that ruled Europe, has already lost all its power. All central banks must and will be abolished." 

"Why? Because they were so stupid and fraudulently sold their citizens' gold and bought paper money instead, mostly U.S. dollars. Those same dollars have lost 95 percent of their value over the last 100 years." 

"And now there is the EURO. But is that currency cocktail any better? Somebody called it the 'Esperando Currency', meaning the 'Hopeful Currency'. Before the creation of the EURO all the central banks of the world held all their monetary reserves in U.S. dollars, a currency backed by NOTHING. After the dollar crashed in recent years, they shifted their paper dollars into EUROs." 

"HOW CLEVER! ! They sold gold at the bottom and then they sold dollars at the bottom." But is our Swiss Banker's conclusions just more gloom and doom? Not at all! "I hope all is not lost", Mr. Lips maintains. "I suspect that some central bankers are beginning to find out that GOLD IS THE ONLY REAL MONEY - the ONLY alternative to worthless paper money reserves."

What are the other conclusions reached by our esteemed Swiss Banker? What part is China to play in the economy of tomorrow? What of Russia & Europe? But MOST importantly - what is the role that gold will play in the world of tomorrow? 

Best Regards - Philip Judge pjudge@anglofareast.com