BUYERS::Are Arab Oil kingdoms and China Attracted to Gold's Glitter?
By Gary Dorsch
Editor Global Money Trends magazine
Nov 15, 2006
American political history has repeated itself again. Since World War II, whichever political party controlled the White House during mid-term Elections has lost an average of 6 Senate seats and 30 seats in the House of Representatives. On November 7th, it was the Republicans' turn to endure a thumping, losing control of Congress to the Democrats for the first time since 1994.
Just a few days earlier, US Labor Apparatchniks had revised their originally reported 128,000 increase in August payrolls into a gain of 230,000 jobs, and September's 51,000 increase was tripled to a 148,000 gain. The change for the two months combined was the biggest upward revision since July and August 2000. That sent the US jobless rate 0.2% lower to 4.4% of the workforce, a 5-year low.
However, the glowing jobs report, a 12,000+ Dow Jones Industrials, inflated 401-k's, and an 86 cents per gallon plunge in gasoline prices since August, could not brainwash enough US voters on Election Day. The GOP had wandered too far from its commitment 12-years ago to clean up corruption, shrink the federal government and slash irresponsible spending. Anger about America's war in Iraq, and frustration with the Bush administration's reckless trade polices with China, trumped the doctored employment stats and the wealth generated on Wall Street.
A Newsweek poll showed that 48% of registered US voters would generally like to see a Democrat elected to the White House in 2008, compared to 28% who want a Republican. Such hypothetical polls are likely to narrow significantly by November 2008, but already the Persian Gulf oil kingdoms foresee major chaos and instability in the region, and Beijing is warning Congress to keep its hands off protectionist legislation concerning China's massive trade surplus with the US.
Saudi Princes Rattled by Democrats, Shifting into Gold
Saudi princes, who control 70% of the stock market in Riyadh have been bailing out of local stocks and moving funds into Gold since early October. The Saudi elite are worried that Democrats could hasten an American withdrawal from Iraq. Defense chief Donald Rumsfeld's departure could well be a first move in that direction. Signaling a broad shift in his Iraq policy, President Bush on Nov 11th described his new pick for defense secretary, Robert Gates, as an "agent of change."
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