Axis of Logic, 12/13/04

In other words, "If I can't have it then nobody can." What a magnificent
statement of the current evolutionary state of mankind. Were the human race
to have a tombstone, this might make an appropriate epitaph.

The signs are unmistakable that a rapid move away from the dollar is
underway as other currencies like the Euro, the Yen and the Yuan show
increasing strength. The Euro is becoming a hostage currency which the EU
wants to weaken so as not to be priced out of the world exports markets. But
I would not be surprised if strategic European thinkers - knowing that the
Euro (either singly or in a basket with other currencies) is destined to
become the currency of energy - are quietly supporting these moves. Every
region is going to take some lumps here. The questions are when, where and
how bad? Rumors are again surfacing of the possible birth of an Islamic gold
dinar. The dinar is a double whammy as globally the lid is being ripped off
a decades-long conspiracy to suppress the price of gold. Gold has hit 16
year highs recently of over $455 per once. Central banks, including the Fed,
may soon be forced to reveal how much gold they have, or don't have. They
will do anything to avoid disclosing where it went and why it isn't there.
When that happens, the world - especially the American people - might be in
for a real shock as we learn the truth about where "our" gold isn't. The
collapse deepens. Tens of millions of unemployed, especially the young,
might face a choice between starvation and enlistment
in the military. Maybe we won't need a draft after all. Maybe that's why
both Bush and Kerry were so certain about it.

New and previously unthinkable economic and military alliances are rapidly
emerging as geostrategic fault lines (e.g. the Ukraine) portend massive
earthquakes, and as the US Federal Reserve has basically indicated that it
will make no effort to support a dollar which is now beginning a freefall.
That does not mean that there will not be corrections as the dollar
occasionally bucks the trend, but the trend must ultimately prove to be
mightier than the dollar because of American debt. Once a revolt like this
is unleashed there is no turning back. The world will have to destroy
America or be destroyed itself. The battle to control oil reserves
continues. Oil is money. Money is valueless without oil.

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