Friday 19th August 2005 AD
"RULING A WORLD NOT UNDERSTOOD"

"Because we have forgotten the monetary role of gold, our world is now in serious trouble!", . . . at least this is the belief of many gathered in the spectacular old 'Palace Theatre' in Dawson City, Canada. 

Our esteemed Swiss Banker, Mr. Ferdinand Lips announces a bold forecast, "Beginning in 2006 THE SAME central bankers who dumped gold at much lower prices will REPURCHASE that gold at much higher prices. . . . HOW CLEVER!"

There is no question that central banks have been actively dis-hoarding gold for several years, but what has been of greatest concern to many, is the clandestine "off balance sheet" activity of central and bullion banks. In recent years ever increasing amounts of evidence points to bullion leasing and swap activity by central banks, national treasuries, the IMF and others in an all out effort to artificially suppress to the gold price. 

"Gold should be many hundreds of dollars higher than where it is today" shouts GATA's outspoken Bill Murphy. But, "in the long run" Daily Dig has often said, "unsustainable trends DO NOT continue", . . . and never has this been truer than in the case of today's gold market. 

Given the play in the world's monetary and financial situation, Mr. Lips has reached several sobering conclusions, "The Federal Reserve will go and so to will most central banks. But my third conclusion" he continues, . . . "the United States will end up with Latin American conditions but without that Latin American charm." 

"I am extremely worried about the future of the United States. Its manufacturing industry is dying. The United States is bleeding to death with these endless wars. As far as I know, America HAS NO enemies from outside that threaten it. In my view, the enemy comes from inside. The United States WILL FACE economic collapse and destruction of its currency. But people are not informed about what is going on. I also hear that U.S. citizens are losing their freedom. That is, of course, the consequence!" 

"Americans should remember their heritage. They should remember the principles of their founding fathers. These wonderful men created a great and successful country that was admired by the whole world. This is all gone. The leaders of the U.S. government are thinking only about teaching everybody what democracy is. The leaders of the U.S. government want to rule a world they don't understand. They want to manage the markets they no longer dominate and then go to war when nothing helps."

The room has become deathly quiet, the mood somber as Ferdinand's words resonate in our minds, "they want to rule a world they don't understand and manage the markets they no longer dominate." 

But still there remains from our esteemed Swiss Banker seven further conclusions for his audience yet to hear. What are they and how will they affect the world of tomorrow? We will keep digging for the truth in the days ahead. 

Best Regards - Philip Judge pjudge@anglofareast.com