I see that he is a reader of The Myth thread -vbg- Kudos for him
For such an extreme view to unfold, Posssibly a larger Y2K global problem could provide a backdrop for his dire forecast.
The 'Mother of All Markets' is the gold market. The golden rule states: "He who holds the gold, rules. " It is also the market with the highest turnover and the richest clients: Central Banks and governments. It is not a market for the little man in the street. All what John Q. Public can hope to do is try to outguess the big guys or take advantage of niche opportunities. Only once or twice in a lifetime will the man in the street have a real chance to make big money in gold - and that is the moment when even the Central Banks, governments and financial consortiums will be disciplined by the course of history and unforeseen events. In light of recent market action, this author is firmly convinced the "once in a lifetime chance is at hand."
On May 13th, Bill Murphy of GATA e-mailed the following London gold community gossip:
"Gavyn Davies is a Goldman Sachs partner and is also Tony Blair's economist. Davies is Goldman Sach's international economist and operates out of the UK. Davies just also happens to be the chief financial advisor to Gordon Brown, who is Britain's Chancellor of the Exchequer. The well circulated rumor is that Goldman Sachs is short 1.000 tons of gold and that Davies was the influence behind the English decision to sell gold. It would appear there is a big conflict of interest here, to say the least." Two days later the following article appeared in the London Financial Times on May 15, 1999:
"More regulatory safeguards promised...... The British government has made some concessions in the face of protests over its plans for a beefed-up Financial Services Authority to crack down on insider dealing and other market abuse by promising greater protection for people accused of breaking the rules...." Are some honorable embers of the City, just in case details of the latest gold bullion or other financial manipulations might come to light, preparing to cover their back-sides with the help of the government, whose greatest source of revenue comes from the same "City?"
All markets are wide-open to corruption! Furthermore, the older tha market, the more it is likely to be corrupted. Laws covering markets are widely inadequate and much too lenient. Contrary to the Financial Times article, white-collar crime should in principle fall under criminal law. Perpetrators should not be able to escape justice through holes in civil law. One car stolen might mean a loss of $10.000 - whereas a fraudulent broker might cause the loss of all one's life savings and endless misery.
It is rightfully said that when hundred of thousands are driven away from their birthplace by ethnic cleansing, the world speaks of "crimes against humanity". When millions are in jeopardy of losing their livelihood in the coming financial collapse through unscrupulous manipulation by insiders, will that ALSO not be the equivalent of "financial crimes against humanity?"
Where has moral leadership gone? Gone with presidents who do not even understand where they did go wrong, the one in the Oral Office, the other ex-president of Euroland. Gone with a prime minister who covers up for the City Boys. When there is corruption and lies at the top, how can we expect the ordinary man in the street to behave? The underlying reason of today's problems does not lie so much with the markets, finance, education, the media and society themselves, but with the permissiveness and the total collapse of standards and morality in the Western world where everything goes and all give a damn.
It is the same decadence seen shortly before the French Revolution, the Fall of the Roman Empire, and the Fall of Babylon: "Mene Mene Tekum Upharsim" - "Counted are the days of the Empire". This time we are not only in for a lone standing financial crisis, followed by an economic collapse as in 1929. This time the early wobbling of the financial markets is only a prelude of greater upheaval and changes to come other than just financial. Purely financial restructuring will not do. In the cards is a profound global restructuring in all aspects from a system of nation states into a planetary community. (See my editorial "Gold in Macro Perspective" last page)
(Part - II next week) |
