Gold & A Bear Market
The possibility of a 5-year bear market and the signs that will indicate that trend are covered in detail in the 2013 Metals report. Suffice it to say, just Google dollar devaluation and you get pages upon pages of everyone swearing the dollar must collapse so buy gold. Then look at the Dow. The vast majority cannot believe it is making new highs and keep saying this is it.
Markets are fueled ALWAYS by the majority being wrong. That is what reverses the trend be it bullish or bearish. Can gold decline for 5 years? – ABSOLUTELY. Can it bottom in 2013 and rally for the 37-year target in 2017? Of course. Would gold fall dramatically? Not likely. It may move to retest the 1980 high in the $907 area. I have stated this many times. Is that the likely outcome? That will depend on the closing for 2013 and the events we see on the turning points in the 2013 Metals Report.
You must realize that a collapse in Europe/Euro and a further decline in the yen, are likely to force the dollar to record highs as was the case in 1985 when the national debt also rose by 300% with a rising dollar. You cannot judge the increase in the supply of the dollar solely based on old theories of domestic supply and demand. This is a global economy. The demand is measured by INTERNATIONAL capital flows not by the Federal Reserve. Sorry – it is a new world and it is time to observe the real trends not antiquated theories that no longer apply.
NASA Abandons Microsoft Windows
NASA is abandoning Windows they say to maintain a more stable operating system. Interesting.
Gold & the Possible 5-year Bear Market
QUESTION: You mentioned back in 2011 that either gold fell in a normal correction of 2 to 3 years and if the market fought against that trend it could extend into 2016 with a 5-year bear market. Is that still possible since you were correct about the drop after a 13-year high?
ANSWER: Yes. That will depend upon the annual closing for 2013. Yes we have seen the back of gold broken for the bounce is what we call a dead-cat-bounce. The major support is 1310. A closing below that level for 2013 will warn that we could see a 5-year bear market creating a cycle inversion establishing a low in 2016 rather than a high in 2017. That would push the high off into 2024 with the culmination of the full 31.4 year cycle that would then line up with 2032. The more you fight the trend, the longer you extend the cycle. That is what happened to Japan.
IRS has always been a Political Tool against the Press & Individuals
The IRS has been targeting conservatives groups for political purposes. Whenever someone offends the government, out come the tax charges. This is how they control the press. The pick up the phone and ask for a favor. If you dare say no, out comes the IRS to examine the paper of the individual. Lyndon LaRouche was a presidential candidate eight times between 1976 to 2004, running once for his own U.S. Labor Party. He also campaigned 7 times for the Democratic Party nomination. He had enough money to run TV advertisements and then they went after him sentencing him to 15 years’ imprisonment in 1988 for conspiracy to commit mail fraud and tax code violations. I am not agree with what he had to say, but he had the right to say it.
As long as there is income tax, there is nobody they cannot intimidate. They can prevent the free press and restrain any political rival. Obama is clearly targeting the conservatives trying to destroy them and of course he would never admit to anything along those lines. It is like the bankers who always blame rouge traders who amazingly have $8 billion trades on they didn’t know existed. Right! And we live in a free and honest country as well.
It is so essential to eliminate income tax because it impacts everyone and has always been abused for political purposes. This is nothing new.