first majestic silver

Gold in the Balance, Terror in the Streets

October 4, 2001

The frenzied events of recent weeks have kicked off a death spiral of reactions that promise to make 2001 look like a picnic compared to next year and the years ahead. More importantly, from a financial perspective, the final movements in the gold accumulation campaign by insiders are underway, and the war and terror ahead will only add to the luster of the yellow metal. You have been warned: This is the final chance to buy near the lows before the great take-off into 2002-2004.

From one crisis to another. It seems like only yesterday that everyone was wringing hands over the "Year 2000 Crisis." This was followed by the "Oil and Gas Crisis," then the "Electric Utility Crisis," and now the "Terrorist Crisis." Before we are led down the primrose path and plunged headlong into physical warfare with the Muslim world, let us step back in history and ask some poignant questions that may help us to understand the events we are today faced with. This will also shed some light on the current gold market situation.

What was the Y2K "crisis" all about? That is a question that almost no one is asking nearly two years after the fact. For almost four years a steady crescendo of fear and controlled panic was built up by the popular press and the government. "The lights will go out on January 1, 2000," we were told. "Stock up now and prepare for the worse!" When January 1 came and went without a hitch, the nation and the world breathed a sigh of relief that civilization as we knew it hadn't come to an end. Yet no one bothered to ask what it was all about?

We'll probably never know all the answers, but surely Y2K was many things. A case could be made that Y2K was an exercise in psychological control and manipulation through media propaganda. Since all control exercises undertaken on a mass level ultimately have as their objective some economic motive, it is instructive to ponder what those monetary considerations could have been. For one thing, we believe gold and silver were squarely in the sights of the central controllers. One of the things emphasized during those torrid months leading up to 2000 was that people who wanted to survive Y2K should horde gold and silver coins and bullion. A certain percentage of the public responded accordingly and did just that. If you look at the charts for gold and silver in the months leading up to Y2K you can see it. In the fall of 1999 the price of both precious metals exploded on high volume, pulled back, then made a lower high as we transitioned in the new millennium.

Once everyone discovered that Y2K was not an issue the coin buying public began dumping enormous quantities of gold and silver back onto the market, depressing the price of metals all the way into 2001. Could this have been an exercise in the control of the public wealth on the part of the "controlling elite"? Was this undertaken to artificially stimulate interest in precious metals with the premeditated purpose of dashing the public's hopes for a gold and silver bull market in Y2K? The subsequent sell-off obviously enabled the manipulators to buy back the outstanding supply of gold from the public, leaving the public practically empty-handed, not to mention disillusioned with the yellow metal. Today almost no one believes that gold can bounce back and mount a meaningful, sustained rally. Is it any wonder why after the masterful con job surrounding the Y2K crisis?

On a related note, it should be pointed out that the chances of the government pulling another FDR on the gold market are slim and none. Why? Because in 1933 gold represented a substantial portion of the American wealth and almost everybody had some. Today almost no one has gold in his or her portfolio or savings, so what would be the point in shutting the window on the gold market? With the benefit of hindsight it is very easy to see that the only reason the government controlled the gold market was to shake out the floating supply from the general public. Now that the public no longer holds a substantial portion of the above-ground supply of gold there would be absolutely no point in shutting down the gold market again.

In fact, if you consider who does have the majority of the gold supply-banks and major financial institutions-it becomes apparent that there MUST of necessity be a massive increase in the price of gold. After all, the insiders didn't spend all these years manipulating the market, shaking out the public time after time, riding out wave after wave down of the 20-year price slide, just to lose billions of dollars on their investment. No, they manipulated the market for the express purpose of controlling as much of the available supply as they could - so they could shoot 'em up and watch the price of their investment soar to the high heavens. In light of this obvious fact, anyone who claims that gold can never again have a bull market is either willfully ignorant or utterly devoid of common sense. "Money (gold) makes the world go round."

Here is another point of interest: We frequently hear someone comment that following the U.S. financial collapse obviously underway, a period of hyperinflation can be expected. Parallels are drawn between now and Weimar Germany of the early 1920s. It is true that Germany experienced an extraordinary hyper-inflation at the same time that America was experiencing hyper-deflation. Yet consider this: The most visible tangible wealth of the German people at that time was their cash. By super-inflating the currency the government was robbing the German people of their savings and wealth. In like manner, the U.S. government robbed her people of her wealth by calling in the gold and in a sense creating and prolonging the Great Depression. Big governments will do whatever is necessary to control the wealth of the people and keep them in bondage. Nothing has changed.

This next nugget falls under the category of the recent "terrorist" attacks. The evidence of a carefully planned destruction of the Trade Towers from within, rather than a single attack from without, is mounting. Consider the latest report from a major U.S. newspaper: In an article headlined, "Explosives Planted In Towers, N.M. Tech Expert Says," in the Albuquerque Journal, staff writer Olivier Uyttebrouck reported the following:

Televised images of the attacks on the World Trade Center suggest that explosives devices caused the collapse of both towers, a New Mexico Tech explosion expert said Tuesday.

The collapse of the buildings appears "too methodical" to be a chance result of airplanes colliding with the structures, said Van Romero, vice president for research at New Mexico Institute of Mining and Technology."

My opinion is, based on the videotapes, that after the airplanes hit the World Trade Center there were some explosive devices inside the buildings that caused the towers to collapse,' Romero said. Romero is a former director of the Energetic Materials Research and Testing Center at Tech, which studies explosive materials and the effects of explosions on buildings, aircraft and other structures. Romero said he based his opinion on video aired on national television broadcasts.

Romero said the collapse of the structures resembled those of controlled implosions used to demolish old structures. It would be difficult for something from the plane to trigger an event like that, Romero said in a phone interview from Washington, D.C.

If explosions did cause the towers to collapse, the detonations could have been caused by a small amount of explosive, he said. It could have been a relatively small amount of explosives placed in strategic points,' Romero said. The explosives likely would have been put in more than two points in each of the towers, he said.

Romero further stated that the use of a diversion is a common tactic in most terrorist attacks. In this case the two airplanes crashing into the Trade Towers were the "diversion" for the real cause of the building collapse-the explosives planted in the building.

Question: Why hasn't the mainstream press reported on this? Why are we constantly being told the Trade Towers collapsed "of their own weight" due to the force of the airplane collision? Moreover, how do the Washington Post and other major newspapers, which as of this week, reported that the latest analysis implies that the entire plot was carried out by a mere six people? Does anyone really believe that six people could by themselves bring down the World Trade Towers and part of the Pentagon? The testimony of Romero alone contradicts this "finding." Then why does the Post, et al, ignore this evidence? There is something more to these "terrorist assaults" than is being commonly reported.

The last remaining vestige to wealth preservation and financial freedom in America is found in the gold market. It is highly doubtful that forces from on high will conspire again this market as they did in the 1930s. Now is the time to shore up the wealth that has been entrusted to you before it is too late.

Clif Droke is the editor of the three times weekly Momentum Strategies Report newsletter, published since 1997, which covers U.S. equity markets and various stock sectors, natural resources, money supply and bank credit trends, the dollar and the U.S. economy.  The forecasts are made using a unique proprietary blend of analytical methods involving cycles, internal momentum and moving average systems, as well as investor sentiment.  He is also the author of numerous books, including “2014: America’s Date With Destiny.” You can view all of Clif's books here. For more information visit www.clifdroke.com.


Minting of gold in the U.S. stopped in 1933, during the Great Depression.
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