Buy Farmland and Buy Gold – Sound Advice for the Future
February 24, 2010
TimesOnline.co.uk
By Leo Lewis
The world’s most powerful investors have been advised to buy farmland, stock up on gold and prepare for a “dirty war” by Marc Faber, the notoriously bearish market pundit, who predicted the 1987 stock market crash.
The bleak warning of social and financial meltdown, delivered today in Tokyo at a gathering of 700 pension and sovereign wealth fund managers.
Dr Faber, who advised his audience to pull out of American stocks one week before the 1987 crash and was among a handful who predicted the more recent financial crisis, vies with the Nouriel Roubini, the economist, as a rival claimant for the nickname Dr Doom.
Speaking today, Dr Faber said that investors, who control billions of dollars of assets, should start considering the effects of more disruptive events than mere market volatility.
“The next war will be a dirty war,” he told fund managers: “What are you going to do when your mobile phone gets shut down or the internet stops working or the city water supplies get poisoned?”
His investment advice, which was the first keynote speech of CLSA’s annual investment forum in Tokyo, included a suggestion that fund managers buy houses in the countryside because it was more likely that violence, biological attack and other acts of a “dirty war” would happen in cities.
He also said that they should consider holding part of their wealth in the form of precious metals “because they can be carried”.
One London-based hedge fund manager described Mr Faber’s address as “excellent, chilling stuff: good at putting you off lunch, but not something I can tell clients asking me about quarterly returns at the end of March”.
Dr Faber did offer a few more traditional investment tips, although their theme fitted his general mode of pessimism.
In Asia, particularly, he said, stock pickers should play on future food and water shortages by buying into companies with exposure to agriculture and water treatment technologies.
One of Dr Faber’s darker scenarios involves growing military tension between China and the United States over access to limited oil resources.
Today the US has a considerable advantage over China because it has free access to oceans on both coasts, and has potential energy suppliers to the north and south in Canada and Mexico.
It also commands an 11-strong fleet of aircraft carriers that could, if necessary, secure supply routes in a conflict situation.
China and emerging Asia, meanwhile, face the uncertainty of supplies that must travel from the Middle East through winding sea lanes and the Malacca bottleneck.
American military presence in Central Asia, Dr Faber said, may add to the level of concern in Beijing.
“When I tell people to prepare themselves for a dirty war, they ask me: “America against whom?” I tell them that for sure they will find someone.”
At the heart of Dr Faber’s argument is a fundamentally gloomy view on the US economy and its capacity to service a growing mountain of debt.
His belief, fund managers were told, is that the US is going to go bankrupt.
Under President Obama, he said, the country’s annual fiscal deficit will not drop below $1 trillion and could rise beyond that figure.
Arch bears have predicted that US debt repayments could hit 35 per cent of tax revenues within ten years.
Dr Faber believes that the ratio could easily hit 50 per cent in the same time frame.
Click here for the full report.
The Kevin Trudeau Show: 2-16-10
Today, Kevin explains why the government and media are tuning in specifically for this broadcast!
Plus, get out a pen and paper! Kevin exposes top secret predictions that will help you get ready for the worst!
And Jacob Hafter, the attorney in the case to get HCG legalized in the State of Nevada, stops by to give you the inside details of the court proceedings.
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UN Global Currency On The Way to Replace Dollar
January 4, 2010
Info Wars
By Paul Joseph Watson
A recent announcement by the United Nations that it will begin to mint gold and silver bullion coins bearing the UN logo has raised fears that a new global currency is being readied to replace the dollar, but the story is likely to be a hoax, muddying the waters of the very real move towards a global monetary system.
“The United Nations (UN) has licensed the minting of gold bullion coins bearing its logo to provide a “public option” world savings currency,” stated the original story.
The source of the story was attributed to both the Vancouver Examiner and Adfero Limited and it featured on the World Gold Council website, but the link to the article now gives a 404 error page. There is nothing on the UNCTAD website to verify the authenticity of the story.
Posters on the Ron Paul Forums dismissed the story as a hoax. “I posted this a while back, but there was no primary data source to back it up. Nothing on the UN’s site either, it’s more than likely a hoax” writes one.
Others have also questioned how the UN can afford to buy gold to mint its own coins, tying the development in with other suspicious circumstances surrounding alleged manipulation of gold prices.
“Where did the gold come from for the UN to start minting its own coins?” asks Gold Investing News. “For sure, the UN doesn’t have an official budget to buy tonnes of gold on the open market.”
“The story, which seems to have had little basis in fact and a lot of basis in speculation or imagination, has now been pulled from the site as it is not factual….The UN only issues commemorative coins.” writes BullionGoldCoins.com.
Posters on the Prison Planet Forum questioned the motives behind putting out a fake story about the move towards a world currency, suggesting unscrupulous people were “testing the water” on how the public would react to the announcement.
Just like the fake Amero coins hoax story which was put out by disgraced FBI informant Hal Turner, the UN gold story will still be parroted years from now by gullible people unaware of the fact that it’s a hoax. This in turn will allow debunkers to exploit the confusion and claim that the entire one world government agenda is a paranoid invention, when the process of its implementation is publicly announced on an almost daily basis.
The all too real move towards a global currency was unveiled at last year’s G8 summit in Italy, when Russian President Dmitry Medvedev displayed a coin to reporters a coin representing a “united future world currency”.
“We are discussing both the use of other national currencies, including the ruble, as a reserve currency, as well as supranational currencies,” the Russian leader said at a news conference.
This followed comments made by U.S. Treasury Secretary Timothy Geithner to the Council on Foreign Relations, in which he assured CFR globalists that the U.S. was “open” to the notion of a new global currency system to replace the dollar.
In addition, the scandal-ridden and highly secretive Bank For International Settlements, considered to be the world’s top central banking power hub, released a policy paper in 2006 that called for the end of national currencies in favor of a global model of currency formats.
The march towards a global currency is real, provable and openly documented. The UN gold hoax story has seemingly little purpose other than to poison the well with disinformation, thereby inadvertently detracting credibility from those who are warning of a global government takeover which manifests itself in a myriad of different ways at every major global summit, from the G8 to last month’s Copenhagen conference.
The REAL global currency coin, as unveiled by Russian President Medvedev at last year’s G8 summit in Italy. Click here for a larger image of the coin.
Click here for the full report.
The Kevin Trudeau Show: 12-29-09
Today, Kevin gives you his recession survival tips and ways to avoid the toxins that are giving you cancer. Suzanne Somers stops by to expose the truth behind improving your health to avoid and cure cancer without the use of chemotherapy! Plus, The Amazing Kreskin reveals the secret to being the world’s greatest mentalist and reflects back on his 50 year career.
The Only Answer to Cancer
Lead in Face Paint
Bug Spray Blamed for Infant Death
Healing Power of Apple Cider Vinegar
Transform Your Body
Contaminated Beef Solution
Manifest Your Desires
BPA Contaminated Foods
Secure Your Wealth
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UN To Produce One World Currency
December 29, 2009 by Andrew
Filed under Government
December 25, 2009
Current.com
The announcement by the United Nations this week that it will license the minting of silver and gold bullion coins bearing the UN logo may be the button that launches metal prices into orbit.
In its wide-ranging report this fall, the UN Conference on Trade and Development (UNCTAD) stated that the system of currencies and international banking practices within today’s economies were inadequate, and responsible for the present economic crisis. The report advocates that the present monetary system, wherein the dollar acts as the global reserve currency be re-examined “with urgency”.
The UNCTAD Report was the first time a major multinational institution had forwarded such a suggestion or measure, although a number of countries, including Russia and Brazil have supported replacing the dollar as the world’s reserve currency. China’s central bank chief Zhou Xiaochuan has mentioned that the dollar could become a basket of currencies instead.
The UN commission dismissed such a widening, saying a multiple-country system “may be equally unstable, and not transparent.”
The panel is seeking more monetary balance for developing countries, and a means for them to retain their reserves and domestic savings independent of foreign agencies and arrangements.
Panel Chair US economist Joseph Stiglitz, a Nobel economics laureate, has made plain that there was “a growing consensus that there are problems with the dollar reserve system. Developing countries are lending the United States trillions dollars at almost zero interest rates when they have huge needs themselves,” Stiglitz stated.
“It’s indicative of the nature of the problem. It’s a net transfer, in a sense, to the United States, a form of foreign aid.”
A report contributor, Detlef Koffe, concluded that “Replacing the dollar with a bullion currency would solve some of the problems related to the potential of countries running large deficits and would help stability,”
Click here for the full report.
Bank of Israel Governer Says World Must Accept Weaker Dollar
December 7, 2009
Reuters
By Daniel Bases
Bank of Israel Governor Stanley Fischer said on Thursday the world has to accept a weaker U.S. dollar in order to ensure the global economy recovers soundly.
“We also have to realize, what is hard to get across, there has to be a global rebalancing. Either the U.S. runs a very long period of recession, which is a really bad idea, or the dollar has to weaken, so that balance of payments can be straightened out,” Fischer said in response to a question during a business breakfast in New York.
“So we have got to accept, as do other people, there has to be appreciation vis-a-vis the American dollar. Most people have kind of accepted that. It is just that when it gets out of line that people get nervous,” he said.
The Israeli shekel ILS= has recently strengthened against the U.S. dollar, trading at around 3.7750 per greenback. In October it hit its best levels in 10 months, trading as strong as 3.67 per U.S. dollar.
In the August through October period the central was intervening heavily in order to stop the shekel from appreciating rapidly against the greenback which would give relief to Israeli exports.
The U.S. dollar index .DXY, which measures the greenback against a basket of major trading-partner currencies, has fallen roughly 16.75 percent since it peaked in early March of this year when global markets hit bottom and investors were seeking a safe haven.
Fischer acknowledged the strong economic connection with the United States and its importance for the global economy but cautioned that heavily export-oriented countries have to move away from relying on the United States to buy their goods and services.
“So I think we’ve all got to accept the fact that the dollar is likely to be weaker and our currencies relative to the dollar are going to be stronger. The U.S. has to reduce its imports… or we won’t get a prosperous global economy,” he said.
“You have at one end the Chinese just not budging. At the other end the Brazilians have massive appreciation… trying to use capital controls and various things,” he said in reference to measures put in place to limit the real’s rise.
NO GOLD
On the issue of inflation, which he reiterated is likely to rise above the current top end of its 1-3 percent target range in the coming months, Fischer said he would not be a buyer of gold.
As recently as Nov. 23, the central bank increased its key lending rate by a quarter of a percentage point to 1 percent, a level it said was still “accommodative” and would support further economic recovery.
Still, given the rising inflation pressures, he said he was not interested in making a move similar to that of India’s central bank which spent $6.7 billion in early November to buy 200 tonnes of gold from the International Monetary Fund.
Spot gold prices touched another record high on Thursday, rising $1,226.10 XAU= before slipping back to $1,214.
“If you really think that the future is high inflation in the world economy then you hold gold. I don’t think that is the future. I don’t see us in a high inflation environment. Without committing, I don’t think we are going into gold any time soon,” he said.
Click here for the full report
Gold is Quality, Stability, and Safety
November 30, 2009
InfoWars
By Bob Chapman
Investors buy gold when there is inflation and when there is a flight to quality. They buy gold when they no longer trust currencies, due to government or central bank profligacy. Due to those and other reasons gold has broken out to new highs. It could well be that gold may never see $1,000 again. Long ago the world’s central banks set the course for a planned collapse of the world economy to implement world government and there is now no turning back. We have proof stretching back to 1965 that intervention by the Treasury and the Fed was taking place in the gold market. The illegal sale of gold on 10/19/87 was a good example of that. Then came the FOMC memos of the 1980s and 1990s to kill the perception that gold be allowed to reflect a policy of a weak dollar unbacked by gold. It is all there and probably more proof which our government and the Fed hides from us. We have to laugh at the smug who say why would the Treasury bother to rig the gold price? The point is they have and they are still doing it.
The perception now is that the massive stimulus put into international markets, especially US markets, will be withdrawn as interest rates are allowed to float upward. This stimulus was responsible for the stock market climbing from Dow 6600 to 10,500, a 60% leap built on monetization. If the punch bowl is removed the market will return to test 6600. In addition, the deflationary undertow kept at bay by the stimulus, will overcome monetary policy and the nation and the world will slip into monetary, deflationary depression.
The Fed is now forced to allow gold to trade higher and the dollar to fall lower. What else would one expect under current monetary circumstances? This policy will allow both gold and the dollar to play out to their full extent. The Fed’s job has been very difficult considering a fiscal budget deficit of $1.5 trillion not counting off budget items that take it over $2 trillion – a condition we are told that will persist for the next ten years. The solution has been the creation of ever more money and credit. There has been no cooperation. Nothing has worked together. All the problems have gone spinning off into a number of directions. There is no control on fiscal or monetary policy. What the players refuse to understand is that until the system is purged the situation is only going to get worse. There is no recovery. It is only an interlude in an ongoing depression.
The result will be gold at $2,500 by the end of 2010, and perhaps much sooner. The buyers know what we know. Real inflation since 1980 dictates $6,700 to $7,200 gold. Even official inflation demands a $2,400 price. In both instances how much inflation will 2010 bring? We are projecting 14% real inflation and government and the Fed keep telling us inflation is 1.2%. Our figures show 6-1/8%. In addition the fundamentals show us that gold production has been in shortfall to usage by 150 or more tons for years and that situation will worsen over the next ten years. Yes, we have hit peak gold. Interest rates rises won’t come for at least a year, if ever, and 5% growth in aggregates is in the realm of wishful thinking. Less gold is currently produced annually than in 1980 and there are trillions more dollars sloshing about the world financial system, a good part of it for speculative purposes. Without changes in monetary and fiscal policies, gold and silver prices will just keep rising. The further our government, via Goldman Sacks, JPMorgan Chase, HSBC and Citigroup, short gold and silver and the shares, the greater price appreciation will be in the future as they ultimately will have to cover their shorts. We are at the confluence of big things happening. The fiscal debt overhand is so onerous that a ¾% rise in interest rates would mean the Fed would have to monetize another $150 billion and a 5% increase in interest rates would increase debt service interest by $600 billion additional dollars. Yes, gold could reach $3,000 in 2010 and 2011 could bring another doubling as a result of the Fed and government just continuing what they are doing. Will inflation reach 25% or 30% in 2011? We don’t know, but as we reflect on what the Fed has been doing we say that possibility certainly exists. Could that mean $11,000 gold? Perhaps it does, we won’t know until we get there.
Even if inflation abated in 2011 or 2012 and a deflationary depression took command, gold would still be the go to investment. That is because for 6,000 years it has been the only currency that has owed no one anything. Would you really be ready to trade it for a fiat currency? We don’t think so. All bond markets as well as stock markets would have collapsed with the exception of gold and silver shares. Just look at the 1930s and see the gains Homestake had, if you don’t think gold stocks can make fortunes during a depression. Gold and silver are the investments for all seasons as long as you have patience. The banking system may collapse. What better to use than gold and silver coins for barter. This past year we have seen lending by banks fall 16.2% y-o-y or by $600 billion. Just double that figure and you are in depression. Can you imagine what it will be like with little or no lending? Unemployment is 22.2%. Under such conditions the unemployed could be 35% or more. What do we do, let the Illuminati create another world war to cover up their machinations? The dollar is already falling and probably will eventually collapse. Could it be 1-1/2 to 2-1/2 years from now that there will be an official 2/3’s devaluation? The exchange of three old dollars for one new dollar and a 2/3’s default on all debt by all nations with one another and the revaluation and devaluation of all currencies followed by a new international trading unit made up of the top G-20 currencies weighted in an index. That is certainly plausible as the dollar ceases to be the international reserve currency.
These events could push residential and commercial values down 75% or more from their highs. All investments except gold and silver could fall 60% to 95% as they did during the 1930s. The Fed won’t be able to cut interest rates, which will already be at zero. Demand for capital will force real rates higher and bonds lower. All issuers of consumer debt will most likely go broke, as 50% of debtors won’t be able to service their debt.
Real nasty times are just around the corner and nothing can be done to prevent them. The system must be purged. More major layoffs are on the way, real wages will fall and taxes will rise. The Dow will settle somewhere between 1,500 and 4,200. We won’t know where until we get a lot closer. Companies have maintained the bottom line by firing people, offshoring and outsourcing and using illegal aliens. That method of cutting costs is approaching a threshold of diminishing returns. The next big wave of layoffs will be municipal in towns, cities, counties and states that no longer have the reserve to pay employees. Some states, such as Florida has no funds to pay for unemployment benefits and were it not for the stimulus plan they would have stopped issuing checks a year ago. At this rate in many states municipalities will cease to function and schools, fire and police will be disbanded. That is where this is all headed. Americans have to be told the truth about what is really going on and who and what caused it and how we can fix it.
To continue reading this report, click here.
The Kevin Trudeau Show: 11-24-09
Today, Kevin explains how the government is hurting your children and why Barack Obama’s birth certificate is really being hidden from the public.
Plus, get the latest news they don’t want you to know about…
Coca-Cola Partners with Medical Group
Healthy Supplement Scam
Government Censorship
Secure Your Wealth
The Worst is Yet To Come
Direct marketing expert and author, Joe Sugarman, reveals how to unlock the human psyche to persuade and positively influence people. Find out how he was able to sell a $250 pocket calculator in 1971 and how stem cells can work as the fountain of youth!! Click here for the latest technology in age reversal!
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World Gold Supply ‘Runs Out’
November 11, 2009
Telegraph
by Ambrose Evans-Pritchard
Global gold production is in terminal decline despite record prices and Herculean efforts by mining companies to discover fresh sources of ore in remote spots, according to the world’s top producer Barrick Gold.
Aaron Regent, president of the Canadian gold giant, said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run.
“There is a strong case to be made that we are already at ‘peak gold’,” he told The Daily Telegraph at the RBC’s annual gold conference in London.
“Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore,” he said.
Ore grades have fallen from around 12 grams per tonne in 1950 to nearer 3 grams in the US, Canada, and Australia. South Africa’s output has halved since peaking in 1970.
The supply crunch has helped push gold to an all-time high, reaching $1,118 an ounce at one stage yesterday. The key driver over recent days has been the move by India’s central bank to soak up half of the gold being sold by the International Monetary Fund. It is the latest sign that the rising powers of Asia and the commodity bloc are growing wary of Western paper money and debt.
China has quietly doubled holdings to 1,054 tonnes and is thought to be adding gradually on price dips, creating a market floor. Gold remains a tiny fraction of its $2.3 trillion in foreign reserves.
Gold exchange-traded funds (ETFs) – dubbed the “People’s Central Bank” – have accumulated 1,778 tonnes, making them the fifth biggest holder after the US, Germany, France, and Italy.
Ross Norman, director of theBullionDesk.com, said exploration budgets had tripled since the start of the decade with stubbornly disappointing results so far.
Output fell a further 14pc in South Africa last year as companies were forced to dig ever deeper – at greater cost – to replace depleted reserves, not helped by “social uplift” rules and power cuts. Harmony Gold said yesterday that it may close two more mines over coming months due to poor ore grades.
Mr Norman said the “false mine of central banks” had been the only new source of gold supply this decade as they auction off reserves, but they are switching sides to become net buyers.
Barrick is moving fast to wind down the remaining 3m ounces of its infamous hedge book over the next twelve months, an implicit bet on rising gold prices over time.
Mr Regent said the company had waited too long to ditch the policy, which has made the company enemy number one among ‘gold bug’ enthusiasts. The hedges oblige Barrick to deliver part of its gold into futures contracts set long ago at levels far below today’s spot prices.
The strategy worked well in the falling market of the 1990s, but has cost the company dear in lost profits this decade. “Hindsight is always 20/20,” said Mr Regent, who was appointed from the outside earlier this year.
Trends Forecaster, Gerald Celente
Click the picture or link below to hear Kevin’s interview with Gerald Celente and click here to learn more about The Trends Research Institute.
