Gold will zoom toward $1000 in priceThe Hat Trick Letter issue for May is out. Among a host of other markets reported on, stories include the IBM gigantic layoff, which will be difficult to hide in the jobbed Jobs Reports. It includes the Executive Decree which authorizes intelligence czar Negroponte to permit NO DISCLOSURE by large corporations who do the USGovt bidding in market manipulation, in the name of national security. In other words, a knee-jerk assessment, is that fraud is in the US national interest. It includes the story about EuroNext, which moves us one step forward to the full integration of financial markets. It links US and European financial markets. Their control will certainly be made easier. It includes a Special Report on the Credit Market Derivatives, some information on their complex structure, and evidence of meltdown events in progress. It includes an update on the German juggernaut economic success story and the contrasting European housing bubbles in England and Spain.
Does anybody of sound mind and clear thought process now doubt my claim made in the last two years that the European Union economy is stronger than that of the United States? They chose not to wreck their economy by pumping housing equity via debt into it. Europe does not possess a SUBPRIME MORTGAGE market, complete with associated toxic collateralized bonds. My forecast made in 2005 and 2006 was that in time, THE USECONOMY WOULD BE THE WEAKEST IN THE INDUSTRIAL WORLD. We are here, but the USFed Keystone Cops are caught in a policy nightmare. When they awaken to act, gold will zoom toward $1000 in price, along with silver toward $30. An urgent interest rate cut cycle will occur, come hell or high water with the doomed USDollar.
In fact, as analyzed in the May report, the USGovt knuckleheads might want a lower USDollar to ‘teach China a lesson’ akin to shooting Uncle Same in the kneecap. Gold and silver are acting much like coiled springs. To make matters worse, the energy market is looking strong, both crude oil and natural gas. If not depletion, it is Nigerian bandits. If not Saudi Ghawar on the downslope, it is Mexican Cantarell. The US Military does its job in keeping Iraqi output low, making huge demand on supplies for military equipment. The summer driving season will draw more oil from inventories. The summer air conditioning season is here, with more drain on electricity and natural gas fuel supplies.
© 2007 Jim Willie, CB
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Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a Ph.D. in Statistics. His career has stretched over 24 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at www.GoldenJackass.com. For personal questions about subscriptions, contact him at “JimWillieCB@aol.com”