Friday 26th August 2005 AD
"IN TIMES OF CHANGE"

Ferdinand Lips moves on to his 7th conclusion over the eventual outcome of the world's present monetary and financial systems. All of Lips' suppositions appear to be built around a future role for gold in global monetary systems. Now he stresses that in order to succeed, the EURO needs a link to gold. 

"Together with Russia, Europe could again be the center of the world" he boldly claims. But in the manner and style of a true Swiss Banker, no prediction comes without its caveat, "It can only be achieved, however, if we drop socialism and the welfare state. We should learn from the Chinese, . . hard work and little welfare state." 

"The European Union of Brussels, the European Union in its present form, should be abolished. The EU as it is now will fail, and maybe the EURO will fail as well. But that WILL NOT be the end of Europe. As General Charles de Gaulle recommended, the ideal would be the Europe of the Nations, a Europe where the individuality of every nation and region is respected; a Europe from the Atlantic to the Urals." 

"And my eighth conclusion, Gold and Silver prices will be MUCH, MUCH HIGHER, . . . and oil prices too" he quickly adds, often sighting the link between gold and oil. 

"There just is not enough gold, who wants to produce gold and silver as long as prices are held artificially low? This whole manipulation of the gold market has to end, and it WILL end just like the London Gold Pool in 1968 - just collapse!" 

The London Gold Pool was another futile attempt by governments to suppress the gold price. Why? A short history can be found here http://www.anglofareast.com/0139.html 

"Gold is stronger than the central banks" retorts our Swiss Banker, "this time the explosion of prices will be more spectacular (than the late 1960's). The prices will go to the moon. Nobody will be able to stop that future gold rush. Gold will take its revenge."

Over the past few days we have reviewed several of Ferdinand Lips' conclusions and assumptions. But what will become of his claims, predictions and prophecies? How does he summarize his remarks? If our esteemed Swiss Banker is correct in his thinking, what will it mean to us? How will our world change? And importantly, . . . who will be disadvantaged and who will be advantaged? 

Times of great change are times of great opportunity. Take for example the last depression. It has been often pointed out that there were more millionaires born out of the Great Depression of the 1930's than there was in the 3 decades preceding it. Without a doubt, dealing with and profiting from "change" requires, pre-warning, accurate knowledge and strategic preparation, all of which we will continue to dig for in the days ahead. 

Best Regards - Philip Judge pjudge@anglofareast.com