Greenspan prints dollars, M3 soars,
debt/layoffs hammer Middle America.
Time to "buy" the Crash Mirror.

Get your newly-minted Greenspan American Dollars here folks! A
handfull of FED rate cuts is now pouring fuel on a US property
bubble. That bubble is in turn sustaining the stockmarket bubble. Which masks
the growing, Nasdaq-led debt and layoff financial meltdown. A meltdown as in
1929 or 1987 --albeit with a quicker recovery.

All of which reminds me: there's gold in them thar' hills.
Lots of cheap gold. So cheap, the Bank of England are
practically giving it away.

You remember gold, don't you? It used to be a rock of stability in a
financial crisis. Central banks loved the stuff, back before the Internet and
Wall Street took over.

Then, in late 1999, the Bank of England anounced the sale of over 400 tons
of the yellow metal in 20-25 ton tranches, to rebalance their "portfolio"
--so they claimed. This came despite a Washington agreement by central
banks to quit dumping gold in their now-six-year covert efforts to hold
down it's price.

Announcing that you intend to slowly sell a vast hoard of gold is just shooting
your own sale price in the foot. Strange, eh? But the most amazing thing about
the B-of-E's gold sale is the tender structure. The gold is sold to the highest
bidder --but at the price bid by the lowest bidder!

That's a clear effort to depress the gold market by selling low and slow. Gold is
stuck in the $260's --despite a supply shortfall. Central banks are also covertly
selling gold, and have created a gold lease market --depressing prices further.
All this has forced gold mines to hedge production to secure their wafer-thin
margins.

GOLD LAGS BEHIND:

PRODUCT     (1973)       (2001) increase% 

Oil barrel   $2.50       $28.00 1120% 

USA M-3    750 bill    7.5 Tril 1000%

Same home   $31,000    $310,000 1000%

Same Job    $10,000 yr  $70,000  700%

Silver PPO    $3.13       4.22   134%

Gold PPO     $97.32       $270   277%

So why the continuing campaign against gold?

Now that Greenspan has inflated the dollar, where can dollar-holders move
their assets. To the Eurozone? Not very inspiring organisationally or
economically (M3 is rampant here too). And everywhere else has economic
influenza, Or, like Argentina and Mexico - is about to catch it. Looks like
dollar-assets are boxed in. That's what comes of regarding the US stock market
as a replacement financial standard for gold.

Some U.S. big name banks have reserves of less than three cents on the dollar.
A few notables have backed the wrong horses and are in trouble. Bailing out the
downside of this mess would cost two trillion dollars. Not exactly small change.

But, investors, who have played in dollars, must stay in dollars. Or must they?
Suppose gold was to resume its role as ....well... gold standard.

So then, gold is the cork in the neck of the dollar champagne bottle. And
that's why they must keep holding the gold cork in place. Otherwise -
POP!

[snip]

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