(The following contains language that may well be considered offensive. This post is an attempt to make clear what was written in past Ron Paul newsletters. More information can be found here)
5. Don’t keep all your eggs in one basket. If you have more than one rifle, store it in a hideaway spot. And remember to store ammunition and web gear with it, enough ammo for at least one combat load.
6. Hide your best eggs from prying eyes. Destroy any documents or discs that become unnecessary. Leave no clues. You are not a criminal, but that doesn’t stop them from trying to make you one.
7. Bojangles Robinson ain’t the only one who can tap. Avoid the phone as much as possible, and never speak in plain English about club business.
8. A rose by any other name smells just as sweet. Most groups meet under cover of another activity: a gun club, a Bible study, a self-help group, even a bowling league.
9. Remember you’re not alone. At this writing there were an estimated 1,500 militia groups scattered across the 48 states and Alaska. The feds are actively investigating about 80 with varying levels of resources and efforts.
10. Remember your principles. Don’t lose sight of our objective. The opposition will do its best to provoke some precipitous action on our part to discredit us and our cause. Follow the orders of Captain Parker at Lexington: Stand your ground. Don’t fire unless fired upon, but if they mean to have a war let it begin here.
Bearish on the Precious Metals?
The enthusiasm that was evident in the gold and silver markets in September has once again given way to disappointment. The failure of both key metals to break key technical and psychological levels, namely $400 on gold and $6 on silver, has sent many investors back to the sidelines. The gold shares as they tend to do, suffered bigger percentage losses than the metals. The general relationship between movements in the metal and the major gold shares is about five to one. If gold goes up or down 5%, as it has recently, the shares will go up or down approximately 25%.
Precipitating the latest drop was the belief the Federal Reserve Chairman Alan Greenspan’s preemptive interest-rate hikes were working. Contributing to the slide was the election of the Republicans to control of both houses of Congress for the first time in 40 years. The initial take by the precious metals market was that maybe there is light at the end of the long deficit and inflation tunnel and, therefore, the dollar will once again gain the confidence of the marketplace as a store of value.
The question we must now ask is: where do we go from here? The bears on gold say that high interest rates globally make the opportunity cost of holding gold too high at this time.
The bearish argument is compelling, but it misses the point. The Orange County debacle is just the tip of the derivative iceberg. Private losses are estimated at close to $75 billion. The Fed is not going to keep raising interest rates. They are stuck. The U.S. is the biggest debtor nation. If Greenspan keeps raising rates, he will drive the deficit through the roof, no matter what piddling cuts the Republicans have in mind. The derivative problem will continue to get worse. The real reason Greenspan raised interest rates was not to combat inflation – after all, the Fed exists to inflate – but rather to execute a plan of interest-rate arbitrage in the currency markets to stave off the run taking place on the dollar.
With $15.9 trillion in overall debt – government, corporate, and individual – the Fed cannot allow the debt bubble to burst; otherwise the world would face a massive deflation and the dollar and all currencies would be destroyed as they are all over-leveraged, not unlike Orange County. Unfortunately, we could go on and on for the reasons to be bullish, but the bottom line for gold is the dollar, and it doesn’t look good for the dollar.
Of all the gold shares that are currently in an oversold position, points out Greg Orrell, my recommended gold stock broker. Santa Fe Pacific Gold (FLD NYSE $13 3/8) is the best buy at the current time. The company has high-quality, low-cost mines located in the U.S. and is currently producing 900,000 ounces annually, projected to go up to 1.5 million ounces by 1998. The share not only had to absorb the massive selling that took place with gold going down, but it also got hit at the same time with shares that were issued as a dividend from its former parent, Santa Fe Pacific Corp.
A Resurrected Ecu?
You might think that the Trilateralists had given up on creating the European Currency Unit, the Ecu, to replace all existing European currencies, and to be combined with the dollar and yen in a new world order money. The dream seemingly died two years ago when the D-mark became so out of line that the Exchange Rate Mechanism simply fell apart. After Denmark and Britain pulled out, it seemed dead.
But that would be a mistaken impression. The transnational elite hasn’t given up on the Ecu any more than it gave up on creating a world agency to manage trade after the Senate defeated it in 1948. The establishment still gather [sic] in Brussels to plot their monetary designs.
This description was buried in the Wall Street Journal: “once a month, ranks of dark limousines parked outside the modern
The original pdf of this newsletter can be found at The New Republic.