-Caveat Lector- <A HREF="http://www.ctrl.org/"> </A> -Cui Bono?- http://militia.gen.mi.us/update/4-27-f.html The Michigan Militia Corps' Weekly Update Internet Edition Volume 4, Issue 27 Week of July 28, 1997 ---------------------------------------------------------------------------- ---- London's Gold Hoax Exposed! BRITISH METALS CARTELS PREPARE FOR GLOBAL FINANCIAL BLOWOUT. By Richard Freeman THE NEW FEDERALIST July 21,'97 July 16 (EIRNS) The rumor trumpeted by the British-controlled press, that gold is being phased out as a significant force in the financial system, is a giant hoax, intended to hoodwink the suckers in America and elsewhere into getting out of gold and other hard commodities, and into bloated financial paper. The precious metals section of the British Commonwealth raw materials cartel has developed this hoax. The cartel has organized, in a controlled fashion, a dumping of gold which has sharply reduced its price from $365 per troy ounce on Jan. 1, 1997 to $320 per ounce at the close of trading yesterday (see graph). The controlled price fall is bankrupting weaker gold-producing companies, and the kingpins of the British Commonwealth cartel--like Sir George Bush's Barrick Gold and Anglo American Corporation --are snapping them up. The cartel anticipates a seismic collapse of all stock, bond, and other paper values in the months ahead, most likely the period of September-October, concurring with the forecast of economist Lyndon LaRouche, who has demonstrated that the speculative world financial bubble has outstripped the loot it can extract from the underlying economy, and will now implode. The world's press now assertains reports daily from political insiders and financiers warning of such a crash. Following that crash, the oligarchy intends to reverse the fall of the price of gold, and to place the world on a British Commonwealth controlled, deflationary gold standard. Gold will be pegged to as much as $800 per troy ounce. Such an arrangement is meant to shrink the world economy and genocidally slash population. This will repeat--but on a global scale--the experience following the U.S. Specie Resumption Act, a piece of treason enacted by the U.S. Congress in 1875 and implemented in 1879, which virtually bankrupted the U.S. during 1879-1907. The tempo of this process is fed by the disintegration of the financial system. Aiding the Commonwealth cartel plan is the central bank of Australia, which announced last week that it had sold 5.37 million troy ounces of gold, 60% of its official gold holdings. This depressed gold's price and fed the lie that gold is being phased out. Positioning itself to take advantage of that gold trap is Peter Munk, chairman of the Canadian-based Barrick Gold, the world's second largest gold producing company. Crack cocaine kingpin George Bush is head of Barrick's international advisory board. In return for gold concessions in Congo-Zaire last year, Barrick helped clear the way for Laurent Kabila's Nazi dictatorship in that country. Barrick chairman Munk told the New York Times July 10 that the benefit of the gold price drop is that it "would breed a Darwinian consolidation in the industry, much like an earlier shakeout in the steel industry." He added, "There is going to be a period of rapid consolidation. And it will end with a couple of really good (sic) producers," at the top. Munk also boasted to the Wall Street Journal July 9, that he "wouldn't be surprised if gold dropped another $40 an ounce," that is, to $280 per troy ounce. But Munk says this knowing that Barrick has shielded itself against the price drop. Through futures contracts, Munk has hedged future production of Barrick gold production, for sale at $420 an ounce. Thus, regardless of whether gold is trading at $320 per ounce or $50, someone is obligated, at the other end of the future contract, to pay him $420 an ounce. Another company that had hedged its future sales of gold is Anglo American Corporation of the Oppenheimer family, the world's largest gold and raw materials producer, and a key cog in the British Commonwealth raw materialscartel. In addition, Anglo American has been buying into the huge Ashanti Gold Company of Ghana, which has two advantages: It has a low cost of production for mining gold, and it has also hedged on future sales. But many gold-producing companies report that they didn't hedge their forward sales, because they figured that once the price hit about $340 an ounce, it wouldn't go lower; they are being crushed. Leon Esterhuizen, a gold stock analyst with Societe Generale Frankel Pollak in Johannesburg, said that at $320 per troy ounce, more than half of South Africa's top gold mines are unprofitable, and at $305 per ounce, only five could stay open. Russia, the world's fifth largest producer, with the world's third largest reserves, would have to shut down most of its mines at the current gold price. British Commonwealth mining firms are poised to buy these companies at bargain basement prices, setting the basis for its new gold system. September-October Crash The ignorant sucker buys deeper into the U.S. stock market, with the llusion that he will get rich quick. But those in the know warn of financial breakdown, reinforcing the fundamental forecast of economist Lyndon LaRouche. July 11, a European banking insider told EIRNS of an impending "financial earthquake." At present the question is whether "the earthquake will precipitate an implosion of systemic dimension during the September-October period," or whether there will be an intermezzo of "feverish volatility, which will last into early 1998. Others concur. This past week, the Group of 30, a private bankers' group, issued a memorandum worked out by Lord Alexander of Weedon from London's National Westminster Bank, and John Heimann of Merrill Lynch, the world's largest stock brokerage. The memo concentrates on the problem of 60 "core" banks and global investment firms, whose failure could trigger a systemic crisis. It states, "The objective must be to eliminate systemic risk ... to devise an international financial system that can withstand shocks without failures cascading through the system." This warning was echoed by the July 15 lead editorial of the British oligarchy's mouthpiece, the Financial Times, titled "Global Risks in Banking." That states that steps must be taken immediately to handle burgeoning risks in the international banking system, and that if goverments delay needed action, "taxpayers of the world are heavily at risk." The senior European banker cited above, reported that a big problem is that the Japanese and other central banks are lending money at cheap interest rates; that money is sloshing into stock markets around the world, pushing them upward. However, were the U.S. Federal Reserve Board to raise interest rates this week, and other central banks to follow, that would be finished. A major intersection point of the crisis is the U.S. stock market. The capitalization of the stocks treaded on all U.S. stock exchanges now exceeds $10 trillion--almost half the capitalization of all stocks in the world, and greater than the nominal U.S. Gross Domestic Product, at nearly $8 trillion. The price-to earnings ratio of all U.S. stock averages almost 20:1, and for some stocks it is 30-40:1. That can't be sustained by earnings produced by a collapsed physical economy. The British oligarchy readies its deflationary gold standard for the blowout. While the man on the street flees gold, going into bloated stocks, the oligarchy deliberately moves in the opposite direction. <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are not allowed. Substance�not soap-boxing! These are sordid matters and 'conspiracy theory'�with its many half-truths, misdirections and outright frauds�is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. 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