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newswire article reposts united states

economic justice | education | legacies

will the next terrorist strike on America be by Almanac carrying crazies, or will it be

You are welcomed to read my Personal Notation before reading the reposted article, as it
gives context to the article with a tale of "personal experience"...

posted by Merlin
Personal Notation to preceed reposting:

This reposting is obviously, on one-level: a sales pitch, and again, on another level: an in-
formed look into the financial future. While certainly, no one can tell exactly how the future
will enfold, it is accepted that informed people are abled to discern trends and time-frames
that are just as good as "crystal ball gazing" or "prophecy spewing", or much better actually.

This reposting is offered with a personal sharing of my own personal "experience" which is:

when Nixon lifted the ban on gold in 1971 for American's, this poster happened to be young
recent graduate from engineering college working in Alaska, where I'd managed to save a
whooping sum of $3,900+ (good money at the time) from summer OT, and needed to invest
it quickly (rather than drink it up at Chilkoot Charlies night club) and happened to have come
across an Investment Alert a young real estate broker friend of mine passed over to me to
give serious consideration as investment "opportunity"...the newsletter was by C. V. Myers,
the author of this investment alert's father. I was caught by the "gold bug" and invested my
entire summer's savings, buying some 110 troy oz. total @ roughly $ 36.05 per oz. as I re-
call the exact figures, and simply got a bank Safety Deposit Box and put it all in there. Now,
fast forward till 1980-81 time frame...I'd grown a decade older, a bit wiser, and suddenly
had become a single-parent to 3 little kids..5 yr, 4 yr, and 10 month old...and was facing a
financial ruin as I had enormous costs incurred arising from the family crisis, and was in-
deed wringing my hands wondering what to do?

Financial opportunity came knocking in the form of rampant inflation to the US economy and
the then worsten world's political crisis (hostage situation in Iran, turmoil in Saudi Arabia, the
collapse of Carter administration, change in Fed policy, and Republican push to get Reagan
in office)...which got so bad, that significant quantities of the world's capital fled to gold in a
relatively short period of time...the daily spot market price from gold took off...eventually hitting
a high well in excess of $ 800, and on one day, even hit $ 908; before maxing out, and then it
turned down for deeper drops till leveling off at various stages. I wished I could say I had the
nerve to ride it all the way up to $ 800- $ 900+, but I didn't...I was just too chickenshit afraid,
and so, sold out all at the $ 636 spot price...giving me a total of $ 69,965...a $ 66,000 profit
in 10-years that allowed me to meet all emergency financial obligations then current, pocket
the balance and quickly relocate to an island in the Caribbean for a few years of "easy living"
so I could regain my bearings, heal from severe personal trauma experiences (as well as
my little kids too!) and learn to play "single daddy" without all the usual stresses American
society lays upon one at such time...it all made the difference in my life and that of my kids,
for the laid-back Caribbean-island "experience" was what literally saved us, and we all still
look back so fondly on those few years as the best of our lives.

I don't tell all this to be bragging, but to tell YOU that someimes there is more to these so-
called "conspiracy theorists" Investment Alerts than meet the eye, and if one is willing to
suspend "normal social conditioning" and be "open-minded", then TRUTH will be able to
get inside your brain, and then once there, you are given a CHOICE...accept or reject...the
choice always yours...no one forces you to make it really...it's yours to decide. I personally
am ever so thankful that I had a friend that cared enough in 1971 to pass along a "tip" to
me that I then read, studied, even prayed over it (believe it or not!)...cause $ 3,900+ was the
most $ I'd ever held in my hand at one time then (folk's..this was when a dollar was indeed
a dollar and had "value"!) and I was so afraid of being a fool with it...but, when faced with a
choice of what to do...options were either "accept" or "reject"...I accepted it, stashed it away
in bank box, and held it nearly 10 years to the date when I honestly need any money...all of
the original $3,900+ would have been fine...and, to my pleasant surprise, I was suddenly
comfortably financially set enough to weather the personal/family crisis in a style/means
that allowed for success. Even though my world then had collapsed into chaos, as will a
great many in the days ahead arising from economic collapse, due to informed choice I'd
made 10 years before, I was abled to survive the crisis.

This is NOT a tale told to get you to accept Meyer's advice, for I get not one f***ing penny
either way...it's simply a means to tell you my TRUTH, so that you may benefit, if it is so
deemed applicable to your circumstances, and give you courage to meet your choices
without letting "normal social conditioning" dictate which one you decide upon...that's all!

So...if interested in what's ahead insofar as the economic-picture is likely to be soon, and
in possible remedy available to you to mitigate it's impact upon you. May you profit as result!

Daily Reckoning Investment Alert

Editor's Note: Due to popular demand we are re-broadcasting the Investment Alert regarding Gold Dinars -- an incredible new secret currency. This may be an opportunity that you do not want to miss. Please read below.

Addison Wiggin
The Daily Reckoning
1,300-Year-Old Gold DAGGER PLUNGES DEEP into America's Financial HEART!

U.S. Dollar Plummets to RECORD LOW -- Stocks and Bonds on Brink of Major Crash!

But, in the midst of this CRISIS, a handful of savvy investors are quietly taking positions in an incredible NEW SECRET CURRENCY that is likely to SKYROCKET 332%... 668%... or MORE as the U.S. dollar continues to fall...

Dear Friend,

Intelligence data, extracted through aggressive interrogation of al Qaeda operatives at Guantamano Bay Military Base, confirms a massive economic terror attack by radical Islam is under way.

And while the cold-blooded atrocities of Sept.11 were horrific, al Qaeda's new plot could send the U.S. economy into an absolute death spiral!

There isn't much time. Let me explain...

Islam was founded around A.D.700. And from the very beginning, Muslims used a gold coin called a Gold Dinar as their form of money. The Gold Dinar remained the official Islamic currency until the collapse of the Ottoman Empire in 1924... when it disappeared for 77 years.

But on Nov. 7, 2001 -- less than two months after the TERROR STRIKES of Sept. 11 -- the Islamic Dinar was officially re-launched by the Islamic Mint in West Malaysia and is now available to the public.

Although a beautiful coin, the Gold Dinar posses a DEADLY threat to the U.S. economy! In fact, its supporters believe the Gold Dinar will become the official currency of more than 1.5 BILLION Muslims worldwide. And radical Islam is urging Muslims worldwide to drop the U.S. Dollar and adopt the Gold Dinar as their primary currency!

Why? They are determined for the Gold Dinar to bring about the DEMISE of the U.S. dollar!

Almost nobody has caught on to this yet. But the attack is very real!

In fact, since the reissue of the Gold Dinar in November 2001, the U.S. Dollar has dropped to a RECORD LOW against the euro... while the price of gold has SOARED from about $280 per ounce to an 8-year RECORD HIGH of over $410 per ounce!

And this is just the beginning!

As the dollar continues to drop, the already shaky stock market is nearly certain to crash. Unprepared investors could lose BILLIONS!

But there is something YOU can do to save yourself... because the radicals' plot has a FLAW in it!

A shimmering flaw that could make you very rich... very soon!

You see, a NEW Secret Currency has just emerged on the market. A Secret Currency so brand-new that even Wall Street doesn't know about it yet!

And get this: The Secret Currency is NOT at the mercy of the falling U.S. dollar! In fact, as the U.S. dollar FALLS LOWER... the Secret Currency SOARS HIGHER!

And in the coming months, as the dollar continues to fall, the Secret Currency is likely to SKYROCKET 332%... 668%... or more!

Now, with your permission, I'd like to send you a Free Special Report. It's called:

"The Secret Currency: How to Beat Bin Laden to the Punch -- AND Capture Gains of 668% or More as the U.S. Dollar Falls!"

The report will show you exactly how you can join a handful of investors already taking positions in the NEW secret currency that is poised to SKYROCKET 332%... 668%... or more as this vicious plan unfolds.

Let me tell you more!

Terror, Inc.

It's no coincidence that Osama bin Laden chose to strike the World Trade Center on Sept. 11...


Because, the World Trade Center represents the heart and soul of the U.S. economy. And destroying the U.S. economy is the main pillar of bin Laden's strategy to bring down the United States.

Look: Bin Laden runs al Qaeda like a Fortune 500 corporation. And he is VERY aware of the U.S. financial situation. He understands our vulnerabilities and how to exploit our current economic situation.

Just take a look at this statement from bin Laden himself, posted on the Al Jazeera Arab News Web site from Oct. 19, 2003:

"My congratulations to you on your blessed efforts and jihad.

"You have indeed slaughtered the enemy and have pleased the hearts of all Muslims, particularly the Palestinian people. You will be rewarded by God the Almighty. Thank you for your jihad and may God help you.

"...[America has] a budget deficit for the third consecutive year. This year, the deficit reached a record peak of more than US$4.5 billion.

"Praise be to Allah."

As despicable as he is, bin Laden is very financially sophisticated. He knows that the U.S. is struggling with a huge trade deficit -- AND a huge budget deficit. And he realizes the U.S. dollar is weak and getting weaker all the time. That's why attacking the U.S. dollar -- and sending the U.S. financial markets into a violent plunge -- is at the center of his plan!

And bin Laden isn't alone is his scheme to crush the U.S. economy! In fact, he's trained thousands of militant jihad warriors to carry out his evil plot... even if he is captured tomorrow!

Economic Jihad Is Gaining Momentum!

According to the International Policy Institute for Counter-Terrorism in Herzlia, Israel, Abd al Aziz Rantisi, the leader of the terrorist group Hamas recently published a written statement on the Hamas Web site calling on Muslims all over the world to wage economic Jihad against the United States. In his statement, Rantisi said that hatred of all Americans is a religious duty for all Muslims, and that targeting the U.S. economy will destroy the United States.

Make no mistake: Radical Islam wants to destroy the U.S. economy with every single ounce of hate in their bodies.

And now, the Gold Dinar gives them a powerful way to send the U.S. dollar -- the ultimate symbol of American wealth and economic prowess -- crashing!

Can radical Islam convince Muslims to use the Gold Dinar instead of the U.S. dollar?

You better believe it!

Look: If bin Laden can convince desperate people to strap on DYNAMITE and blow themselves to bits in the name of Allah, you can be ABSOLUTELY certain radical Islam can convince people to trade in U.S. paper dollars for real gold!

Why? It's pretty simple...

The Muslim World Is ANGRY at the United States -- And It's Not Just the Terrorists!

Many Muslims believe that the United States is responsible for the enormous devastation suffered by hundreds of millions of Muslims during the Asian Currency Crisis of 1997. This ANGER will provide a powerful incentive for Muslims to get even with the United States by selling dollars and buying Islamic Gold Dinars.

Just take a look at this quote from the Islamic Mint Web site:

"... he heard the Messenger of Allah say: "'A time is certainly coming over mankind in which there will be nothing [left] which will be of use save a dinar...'"
-- Imam Ahmad ibn Hanbal

I think it's obvious. These folks don't just want the dollar to drop, they want the U.S. dollar to disappear . Permanently!

And just listen to what Malaysian Prime Minister Mahathir Mohammed had to say:

"If we want to avoid being short-changed we must have a currency that has intrinsic value... If we want to protect ourselves we must evolve our own payment system, our own trading currency."

Let me read between the lines for you:

Mohammed believes that the U.S. financial system is responsible for the Asian Currency Crisis of 1997. And he is urging Muslims to drop the dollar and use the Gold Dinar.

Radical Best Seller List

There is a book by a radical Muslim, Umar Ibrahim Vadillo, called The Return of the Gold Dinar.

According to Wired magazine, author Vadillo explains via e-mail.

"You want to be radical?

"You don't need to blow up the bank, just burn your bank account. And for that you are going to need an alternative. What is the alternative? Dinar."

What is Vadillo saying? I think it's very clear. He's telling his readers that if they want to hurt America, they don't need to blow up a bank or carry out a suicide attack. They simply need to drop the U.S. dollar... in favor of the Gold Dinar.

The 92-page paperback is practically flying off the bookshelves in the Muslim world, and it's also getting worldwide exposure via the Internet.

Momentum is growing behind the push for the Gold Dinar. And there's something else driving the Dinar. Something very powerful indeed.

The Koran Says: "Buy Gold!"

One of the main pillars of the Islamic faith is the observance of Zakat, which dictates that Muslims must give at least 2 1/2 % of their income to the poor. And get this: Zakat can only be paid with REAL MONEY! That means that Zakat cannot be paid with a PROMISE to pay, which is what a U.S. Dollar is!

Let me repeat that: The U.S. Dollar is NOT a tangible asset. Rather, it is a promise to pay -- an IOU -- backed by the full faith and credit of the U.S. government. But, as a promise to pay, it cannot fulfill one of the main pillars of the Islamic faith!

The Gold Dinar meets a religious need in Islam! The dollar does not! Religious leaders are now pushing Muslims to use the gold dinar. As you can imagine, religious pressure can be extremely persuasive. And this one single fact could drive Muslims to drop dollars and buy Gold Dinars.

1.5 Billion Muslims...Dumping Dollars for Gold

Let's consider the effects on gold -- and the broader financial markets -- as Muslims start to unload their U.S. dollar reserves to buy Gold Dinars. There are approximately 1.5 billion Muslims worldwide. AND there is a limited supply of gold in the world.

So, as the demand for gold increases, and as the available supply starts to dwindle... the price of gold will soar!

And we're already seeing this happen. Listen to this:

Gold hit about $850 per ounce back in 1980. It then entered a 19-year bear market... and the price of gold dropped to about $250 per ounce...

BUT: Since the launch of the Gold Dinar on Nov. 7, 2001, the price of gold has SOARED to an 8-year record high of over $410 per ounce... while the U.S. dollar has dropped to a record low against the euro!

But this increase is just the beginning!

In fact, I believe we are at the very beginning of a bull market in gold... the likes of which the world has never seen. In the coming months, the already weak dollar will continue to drop, and gold will continue to rise. People who position themselves early will become wealthy... with little effort... and very limited risk.

Make no mistake: NOW is the time to BUY GOLD!

But what is the BEST WAY to profit from gold?

Should you buy Gold Dinars?

Well... you could. But there is a MUCH BETTER ... MUCH EASIER... and MUCH SAFER way to profit from the gold!

And, in a minute... I'll tell you about the new Secret Currency that could generate 668% gains or more as gold takes off.

But first, let's look at a couple more reasons WHY AN EPIC GOLD SPIKE is imminent!

Forget About Bin Laden...The U.S. Government Is Driving Gold Higher!

Even if bin Laden's strike on the U.S. economy fails, the price of gold is still headed through the roof. You see, the price of gold and the dollar generally move in opposite directions.

And, the U.S. Government is now in a position where it WANTS AND NEEDS an even weaker dollar.

The United States is experiencing the worst trade deficit in history... and the largest budget deficit as well. A weaker dollar would allow the United States to compete internationally by providing cheaper goods, which would help reduce the trade deficit. And it would also help the economy, boost job creation, reduce deflationary pressures and ease the debt burden by cheapening the dollars owed.

These factors are all a political positive from a U.S. perspective, and with an election coming up in 2004, the dollar is going to continue to drop... while gold continues to rise.

And here's another reason gold prices are going to take off...

In 2002, the Shanghai Gold Exchange opened and started free trade in gold for the first time in China's history. And even more recently, China legalized gold investment by private citizens!

Considering the high savings rate in China, gold is a logical investment. And the demand for gold is soaring in China!

It's estimated that the equivalent of $36 billion in Chinese private investment could move into gold in coming years. Plus, the Chinese government is moving to increase its low 2% gold reserves. If these predictions come to pass, China alone will consume 40% of the world's entire gold production for years to come.

The Japanese are piling into gold as well... because their banks are being crushed under the weight of roughly half a TRILLION DOLLARS of bad debts!

All of this points to a rapidly increasing demand for gold... a demand that will send gold prices to historic high... and turn a handful of early investors into overnight millionaires!

And Here's the Kicker...

As I said before, there's a limited supply of gold in the world. In fact, if you gathered up all the gold that has ever been discovered, you could fit it to ALL in a very large room!

So, as the demand for gold rises -- and the available supply shrinks -- panic will strike as people scramble desperately to buy gold.

Just imagine the hysteria that will occur when Muslim countries start to demand gold as payment for oil! People worldwide would rush to move out of U.S. dollars... and into gold!

But unfortunately, there won't be any gold left!

The BBC Reports That al Qaeda Is Already Buying Gold!

Al Qaeda is already stocking up on gold. And why wouldn't they? The more gold they have... the less available for the United States. And I can assure you: When Wall Street finds out what is going on... they will STORM the gold market... looking to buy every bit of gold they can find.

Please understand: An astronomical rise in gold is under way! Since the launch of the Gold Dinar in November 2001, gold prices have risen over 40%... and are hitting 8-year highs!

But it's only the beginning!

I believe we are at the very early stages of an epic gold bull market -- the sort of bull market that most investors have never seen. It's been more than three decades since gold soared 2,200% from $35 an ounce in 1971 to a peak of more than $800 in the early 1980s.

The coming year could put those gains to shame as gold demand escalates worldwide... And if you get in early... you could literally join the mega-wealthy practically overnight!

So... WHAT is the best way to buy gold?

WARNING: Not All Gold Is Equal!

I grew up around gold.

In fact, my father was the famous gold bug C.V. Myers. I was by his side in the 1970s when he told investors to buy gold at $35 per ounce... and then watched as gold jumped to over $800 per ounce...

People who listened made millions!

But despite the incredible profits people made in the 1970s, I have NEVER seen a better opportunity to profit from gold than the one which exists... right now!

My name is John Myers, and I'm the editor of Outstanding Investments, an investment advisory bulletin specializing in natural resources. Things like oil... natural gas... water... and, of course, gold.

We cover the world, digging for profit opportunities that Wall Street has no clue about. In fact, when Wall Street finally does shows up, we're already there waiting for them to drive our profits into the stratosphere!

And that is exactly what is about to happen with an amazing new opportunity...

...which I call the Secret Currency.

Now, without giving away the secret, I can tell you the Secret Currency is, as you might suspect, a form of gold. But it's not your typical gold investment. It has nothing to do with Gold Dinars, gold coins, gold mining stocks, options, futures or gold bullion. In fact, it's much better!

And I can assure you: You've never heard of this... because it's brand new! And it offers a staggering profit potential like:

668% Gains in 11 Months!

"I almost 'bailed out' awhile ago when gold and oil took a dip, but followed your advice and stayed with it. I'm up 28% with only your recommendations in my portfolio ."

-- Bill B., Outstanding Investments Subscriber

I started calling for my readers to buy gold back in 2001... about the time the Islamic Mint started talking about issuing the Gold Dinar. I knew something big was on the horizon. And one of the first opportunities I spotted was a tiny gold and copper miner called Metallica Resources.

I recommended Metallica Resources in February 2001... 9 months before the launch of the Gold Dinar.

As I mentioned, the Islamic Mint issued the Gold Dinar on Nov. 7, 2001...

Just two months after the launch of the Gold Dinar, in January 2002, I told my readers to take profits on Metallica... and we locked in gains of 668%!

That's 668% gains in 11 months!

Was the Gold Dinar responsible for these massive gains? It sure didn't hurt... but as I said before... there are many factors driving gold prices higher...

And the good news is, it's just the beginning of an epic bull market in gold!

Since December 2001, my Outstanding Investment readers have been able to pulled in 84% average gains! And 77% of our closed positions have settled on the plus side!

Over the last few years, we've seen gains of:

332% on Glamis Gold!
151% on Wheaton River Minerals!
158% on Tocqueville Gold!
The list goes on and on! Just take a look at some of our current portfolio holdings:

American Century Global, up 245%!
Coeur d'Alene Mines, up 260%!
Atacama Minerals, up 75%!
Harmony Gold, up 200%!
Newmont Mining, up 140%!
Cameco Corp., up 125%!
Anglo American PLC, up 110%!
As you can imagine, many of my Outstanding Investment readers are very happy. In fact, some of them are getting flat-out rich!

Now... I'd like very much to help you profit from gold, as well.

In fact, I'd like nothing better than to see you become an overnight millionaire in the coming gold bull market. It can happen! And it will... for a handful of people who are in the right place at the right time.

Will you be one of them? It's really up to you!

You see, I have isolated a NEW way to buy gold... an amazing opportunity called the Secret Currency. It's hands-down the best way to profit from gold I've ever seen! Visit the link below and let me tell you about it now.

my bets are on the almanacs 05.Jan.2004 00:36

see evidence below


my bets are on the almanac carriers 05.Jan.2004 00:37

see evidence below


still not bitten by the "gold bug" yet?...then read this one... 08.Jan.2004 10:04

repostings 4 u


The Idea Of America
The Daily Reckoning
Paris, France
Thursday, 8 January 2004
*** Legalized embezzlement... and other tricks...

*** Stop the presses... the dollar didn't fall yesterday! Gold
didn't go up!?

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We are still peeking out at the year ahead. And oh la la... what
do we see!

"Legalized embezzlement on a monstrous scale," says Clive Maund.
Mr. Maund, whose ideas we received mysteriously by Internet,
refers to America's great dollar devaluation.

The more we think of it, the more devilishly elegant and
marvelously scummy it is -- the fall of the dollar, that is. It
wipes out trillions worth of debt... with no bankruptcy
proceedings, no lawsuits, and no backlash from the voters.

While it makes Americans poorer, they hardly notice; the
immediate loss is taken by someone else. It passes the loss from
American debtors to foreigners who were dumb enough to take our

The big story for the last half a century... which reached its
climax under the administration of George Bush the younger...
has been the rise of the consumer economy, the growth of
government and, especially, the build-up of debt in America.
Consumer debt, government debt, business debt -- mortgages,
credit cards, equity lines, derivatives, GSEs, bonds, I.O.U.s...
you name it.

"Americans are carrying more debt then ever before, and are
behind payments in record numbers," says the New York Post. Debt
averaged about 130% of GDP for many decades. Now, the figure has
grown to more than 300%. A figure we saw this week put it at
360%. The lumpen voters and dead-head investors may fantasize
that current trends can go on forever -- that we can pile up debt
like trash during a garbage strike... and never have to haul it
away -- but no serious person would think so.
Sometime soon, we suspect, the mound of rubbish will start to
stink. Then, the story line will reverse. Instead of wondering
how we will add to our odoriforous debt, the dramatic question
will be: how do we get rid of it.

We read the leftist press occasionally -- for laughs and horrors.
We find George W. Bush universally portrayed as the devil himself
-- an 'ultra-conservative cowboy'... who is "dismantling the New
Deal" in order to make the world a chummier place for his
capitalist friends. We chuckle... gasp for air... and wish it
were true. But the poor socialist schmucks haven't a clue. Bush
has come to praise the New Deal, not to bury it.

In less than 2 years, he shuffled out so much loot, he turned a
modest surplus into an extravagant deficit... a turnaround of $9
trillion dollars! He doubled the rate of government growth -- so
that Federal expenditures are getting dealt out 4 times faster
than the GDP growth rate. And he's managed to issue so much new
debt that the Congressional Budget office projects a national
debt of $14 trillion in 10 years... with interest alone of nearly
$1 trillion annually.

And he's done all this while lowering taxes. Here again, we
admire the blinding, polished gleam of it. For now the burden of
supporting the U.S. government's project falls neither on the
rich nor on the poor... but on the honest simpletons all over
the world who were attracted by the shine of the world's most
dynamic economy... and naive enough to believe its promises.

Our head spins.

More on this tomorrow...

In the meantime, more news from Eric Fry:
Eric Fry, who, by the way, will be a guest host on CNNFn's
"Market Call" today and tomorrow 9am - 10am EST... catch him
LIVE! if you have a chance...

- Mr. Market suffered another schizophrenic episode yesterday...
The stock market fell AND rose. The Dow and S&P 500 both dipped
slightly, while the Nasdaq jumped to a new two-year high. The
blue chips fell 10 points to 10,529 and the Nasdaq gained 1% to

- Eight days into the New Year, the "January Effect" is proving
to be alive and well... That's the effect -- according to
historic tendency -- that causes most stocks to rally in January
and causes small capitalization stocks to rally the most of all.
So far in this young year the Nasdaq has advanced nearly 4%,
while the Dow has gained less than 1%.

- The precise cause, or causes, of this delightful effect is a
matter of debate. Some say it's due to a New Year's optimism that
inspires individual investors to buy stocks. Others say the
January Effect results from institutional investors establishing
new billion-dollar positions at the beginning of the year. And
still others believe that UFOs and aliens are the driving force
behind all the stock-buying.

- Whatever the precise cause, racy Nasdaq stocks are zooming
ahead, while stodgy Dow stocks are merely inching along. Such
bifurcated trading action is unusual, but not unprecedented. The
Nasdaq has been outpacing the Dow for more than a year, and ever
since the stock market bottomed in October 2002, investors have
shown a clear preference for speculative stocks over the
relatively mundane Dow names.

- The stock market's schizophrenia was not the only financial
curiosity on display yesterday. The gold market also showed some
quirky behavior -- it barely budged, despite a big dollar rally.
Typically, like a mother-in-law and son-in-law getting up from
the dinner table, the dollar and gold usually head in opposite
directions. [See also: Dr. Richebacher's interesting piece "The
Great Disconnect" on the Daily Reckoning website:
 http://www.dailyreckoning.com/body_headline.cfm?id=3664 ]

- Yesterday, however, the dollar staged its first major rally in
six weeks by jumping 0.7% to $1.263 per euro. But gold barely
budged. The last three times the dollar rallied as much in a
single day, gold tumbled $4.50, $8.40 and $13.30 respectively.
Apparently, gold investors are becoming increasingly distrustful
of dollar rallies... And so far, distrusting dollar rallies has
been the winning trade.

- We wouldn't want to read too much into one trading day. But
gold's conspicuous strength has not been a one-day wonder; it has
been a multi-month phenomenon. When the gold rally was a mere
newborn, back in the middle of 2001, it seemed even less likely
to survive than baby Moses. Back then, the lumps loved their
dollars and their stocks and their bonds and their home equity...
Who needed gold?

- Instead, and seemingly against all odds, the gold rally
survived, then thrived... and it thrives still... to the dismay
of central bankers worldwide. The gold rally not only exposes the
world's paper currencies as institutionalized counterfeits, it
also exposes the world's central bankers as knaves. As many Daily
Reckoning readers may recall, these esteemed bureaucrats dumped
millions of ounces of their countries' gold reserves at prices
near and below $300 an ounce. The expressed rationale for this
knavery was usually "to seek higher-yielding investments."
Oops!... One way to raise the yield on investment might be to
remove all central bankers from their posts.

- Returning to our opening query, What's powering gold's tireless
advance? We don't know exactly, but we can guess as well as
anyone, and we would guess that the world's investors are voting
with their pocketbooks to exchange paper for gold.

- The hundreds of millions of folks around the world who distrust
their national currencies are nibbling on gold like piranha
around a water buffalo. Every day they nibble; every night they
nibble; and before you know it, there's no gold left to nibble
on... until the price moves high enough to draw more "fresh meat"
into the market.

- We, like many gold bulls, suspect that a "correction" will
begin very soon, possibly pulling gold down towards $400 an
ounce. But that correction, should it arrive, would provide
another splendid opportunity to swap America's dollars for
"nature's currency."
Bill Bonner, back in Paris...

*** Our old friend, Mark Hulbert, reports that gold sentiment has
plunged to 11.54. "You will rarely see a more perfect textbook
illustration of a bull market climbing a wall of worry," says

*** "In US$ terms; from July 2000 to the present day; we have
been witnessing the first phase of a gold bull market," Clive
Maund elaborates. "However... .this bull phase has merely
reflected the collapse of the world reserve currency, the US$,
against all other currencies. In terms of the Australian $,
Canadian $, South African Rand and Euro one could clearly argue
that the bull market is at best weak or is non-existent.

"The long-term chart for gold, which reveals a strong up-trend
when measured in terms of its US dollar price, can be seen to
have been little better than neutral when measured against the
Euro. The gold price in Euros has been virtually flat for nearly
4 years now!

"Much has been made in the popular media of the bear market rally
in US stocks from last March, with it being hailed as a new bull
market - nothing could be further from the truth. All investments
must always be considered in opportunity cost terms, and this
being so the plunging US dollar must be factored into the
equation when evaluating the rally in US stocks. If you are a US
investor and you don't do this, you are just kidding yourself.
When priced against the other major world currencies, the
performance of the US stockmarket has been nowhere near as
impressive as a straight reading of the indices would lead one to
believe. Charts in these currencies reveal a mediocre bear market
rally, which looks anaemic
against the Euro...

"Unfortunately, this is a game in which the entire world now
stands to lose and there is no way out, as every exporting nation
is dependent on the US economy and the credit - refinance funded
US consumer. However, this consumer is now 'maxed out' and
virtually saturated with easy credit with little or no savings
left to spend. Price inflation will run into overdrive... The
Feds printing presses are running white hot to fund a sham

"The point at which gold rises against all currencies, and not
only the US$, will mark Phase 2 of this bull market, where
precious metals will go into an accelerated ascent and the
scramble for physical metal and precious metal mining stocks will
become truly global. In the case where the Fed commences raising
interest rates, initial rate rises are likely to be of the order
of 25 basis points. This will have little or no impact on the
gold market. If the decline in the US$ is not arrested, more
severe interest rate rises will be required, and in rapid
succession, to restore confidence. There will come a cross over
point where the dollar ceases to fall and the brakes are put on
gold's relentless rise. Where and when this point will come no
one can predict. However, it seems pretty obvious that gold will
surpass its 1980 peak of US$ 850 per fine ounce with consummate
ease. Given the massive US debt position and economic structural
imbalances, it is likely that this cross over point will be at
interest rates of well over 10%.

"The social consequences of the foregoing scenario, given average
debt exposure, are expected to be serious. However, whichever way
one cuts the cake, the precious metals market has a long way to
go yet."

[See also: How To Seek Profits From A Dollar Breakdown
 http://www.agora-inc.com/reports/RCKN/Everbank ]

*** "Just out of curiosity, what percentage of people do you
think actually make money in the stock market over the span of
decades? The more I learn, the more that number drops for me."

Pirate Investor's Brian Hunt picked up on our note about the way
Wall Street works, not for the capitalist, but for the worker,
whether he be on the payroll of the traded corporations or on
Wall Street itself.

"If we are in a bubble and it pops, we all know what will happen
to microcaps, nanotech, and the like. I don't think any.system
would hold up very well. But while the music is still playing, I
think we've got a good chance at making some great returns. If
the Fed keeps spiking the punch, I'll keep drinking it."

"Nobody actually makes money in the stock market [over the very
long term], on average, is my guess," Porter Stansberry replied,
probably exaggerating to make a point:

"Take the example of Julian Robertson. He was the head of Tiger
Fund - one of the most successful hedge funds of all time.
Starting out with just a few million under management (including
his own $1.5 million), Julian ran a fund that made billions.
According to John Train, Tiger averaged gains of 36%. By 1997 his
fund was managing $16 billion. And at the end of that year he
raised another huge batch of money... several billions.

"The next three years saw his leveraged fund lose about 20% a
year on its stock positions. The size of his funds under
management fell from $22 billion down to $6 billion.

"Everyone, excepting his early investors, was largely wiped out.
And if you think about it... making $6 billion over 20 years is
impressive... .but not as impressive as losing $16 billion in
only three years.

"So... over time... did Julian make money in stocks? No way. The
same thing, by the way, is true of almost every single successful
money manager, newsletter writer, or mutual fund. When the public
piles in, the gig is up and more money is lost than was ever

*** Citing criticism of the Daily Reckoning we published a few
days back, a reader comes to our defense:

"I found the criticism that some readers made about your free
opinions in the DR totally out of line. You are absolutely right:
Had they followed your advice and gone short in 2000 and into
Gold, they would have done splendidly as I did. True, I lost
money being short in 2003, but more than compensated for all my
losses by being long gold and gold shares. For crying out loud,
CDE went from below 1 to over 6, a fantastic return beating yahoo
and the river of no return. But, as they say, you can never
please all the people all the time. I love reading your free
column every day, bought and read your book, and made money, so
for all it's worth you have at least one very satisfied


P.S. I am still in the Prudent Bear Fund (down 4% for me) and
Profunds Ultra Short (down 16% for me) , and KNOW that I will
make money with both investments in 2004. (Not OUGHT, but WILL)."

*** And another:

"My investing began about 18 months ago, no prior experience.
I've made money on currency options ($ down), gold options
(calls), gold stocks, oil stocks that pay good dividends as well
as their price continuing to rise. So sorry for those readers who
could not figure out how to use the information. The money that
I've made is more than I could have ever imagined, wished for, or
dreamed of. Plus, I enjoy reading your letter. Keep up the good
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The Daily Reckoning PRESENTS: Some say the Daily Reckoning is
anti-American. We deny the charge. Regularly. Rather we fear the
great 'idea' is in danger of perishing. Bill Bonner ruminates on
the Idea of America below, in this Daily Reckoning classique
penned while vacationing in Nicaragua with his family.

By Bill Bonner

"Elizabeth," I asked this morning, as my wife climbed out of the
pool. "How would you describe that sea turtle we saw on the

Pausing for a moment, she replied:

"Rotating its slow and majestic flippers, it ground its way
slowly and inexorably towards China... "

The sea turtle was headed east. Whether China was its destination
or not, I don't know. I only know that it was about to leave the
Latin America isthmus, from the west coast of Nicaragua, and put
out to sea when a muscular, brown young man picked it up and
carried it back up on the beach. He and his friends had dug a big
hole in the sand where the turtle was placed.

At night we often see the dim light of flashlights along the
beach. "It's the locals looking for turtle eggs," Manuel
explained. "It's illegal to take them, but... " Manuel shrugged
his shoulders.

Sea turtles are protected by international convention. But here
in the wilds of Nicaragua they still end up in the soup from time
to time.

This is America too... but it is not the same America. It is the
New World... but not as new as the world north of the Rio Grande.
Here, the Old World has not yet been snuffed out. It survives in
a semi-tropical paradise.

But the object of our attention in today's Daily Reckoning is
neither the Old World nor the New one - but the ever- changing,
never-fully-explored idea of America.

"Proud to be an American" says one bumper sticker. "One nation -
indivisible," says another. America was, of course, founded on
the opposite principle... the idea that people were free to
separate themselves from a parent government whenever they felt
they had come of age. But no fraud, no matter how stupendous, is
so obvious as to be detected by the average American. That is
America's great strength... or its most serious weakness.

After September 11, so many people bought flags that the shops
ran short. Old Glory festooned nearly every porch and bridge.
Patriotism swelled every heart.

Europeans, coming back to the Old Country, reported that they had
never seen anything like it. A Frenchman takes his country for
granted. He is born into it, just as he is born into his
religion. He may be proud of La Belle France the way he is proud
of his cheese. But he is not fool enough to claim credit for
either one. He just feels lucky to have them for his own.

America, by contrast, is a nation of people who chose to become
Americans. Even the oldest family tree in the New World has
immigrants at its root. And where did its government, its courts,
its businesses and saloons come from? They were all invented by
us. Having chosen the country... and made it what it is...
Americans feel more responsibility for what it has become than
the citizens of most other nations. And they take more pride in
it, too.

But what is it? What has it become? What makes America different
from any other nation? Why should we care more about it than
about, say, Lithuania or Chad?

Pressed for an answer, most Americans would reply, "Because
America is a free country." What else can be said of the place?
Its land mass is as varied as the earth itself. Inhabiting the
sands of Tucson as well as the steppes of Alaska, Americans could
as well be called a desert race as an arctic one. Its religions
are equally diverse - from moss-backed Episcopalians of the
Virginia tidewater to the holy rollers of East Texas to the
Muslims of East Harlem. Nor does blood itself give the country
any mark of distinction. The individual American has more in
common genetically with the people his people come from than with
his fellow Americans. In a DNA test, your correspondent is more
likely to be mistaken for an IRA hitman than a Baltimore drug

America never was a nation in the usual sense of the word. Though
there are plenty of exceptions - especially among the made-up
nations of former European colonies - nations are usually
composed of groups of people who share common blood, culture, and

Americans mostly speak English. But they might just as well speak
Spanish. And at the debut of the republic, the founding fathers
narrowly avoided declaring German the official language... at
least, that is the legend. A Frenchman has to speak French. A
German has to speak the language of the Vaterland. But an
American could speak anything. And often does.

Nor is there even a common history. The average immigrant didn't
arrive until the early 20th century. By then, America's history
was already 3 centuries old. The average citizen missed the whole

Neither blood, history, religion, language - what else is left?
Only an idea: that you could come to America and be whatever you
wanted to be. You might have been a bog- trotter in Ireland or a
baron in Silesia; in America you were free to become whatever you
could make of yourself.

"Give me liberty or give me death," said Patrick Henry, raising
the rhetorical stakes and praying no one would call him on it.
Yet, the average man at the time lived in near perfect freedom.
There were few books and few laws on them. And fewer people to
enforce them. Henry, if he wanted to do so, could have merely
crossed the Blue Ridge west of Charlottesville and never seen
another government agent again.

Thomas Jefferson complained, in the Declaration of Independence,
that Britain had "erected a multitude of New Offices, and set
hither swarms of Officers to harass our people, and eat out their
substance." Yet the swarms of officers sent by George III would
have barely filled a mid- sized regional office of the IRS or
city zoning department today.

Likewise, the Founding Fathers kvetched about taxation without
representation. But history has shown that representation only
makes taxation worse. Kings, emperors and tyrants must keep tax
rates low... otherwise, the people rise in rebellion. It is
democrats that really eat out the substance of the people: the
illusion of self-government lets them get away with it. Tax rates
were only an average of 3% under the tyranny of King George III.
One of the blessings of democracy is average tax rates that are
ten times as high.

"Americans today," wrote Rose Wilder Lane in 1936, after the
Lincoln administration had annihilated the principle of
self-government... but before the Roosevelt team had finished its
work, "are the most reckless and lawless of peoples... we are
also the most imaginative, the most temperamental, the most
infinitely varied."

But by the end of the 20th century, Americans were required to
wear seat belts and ate low-fat yogurt without a gun to their
heads. The recklessness seems to have been bred out of them. And
the variety too. North, south, east and west, people all wear the
same clothes and cherish the same decrepit ideas as if they were
religious relics.

And why not? It's a free country.

Bill Bonner,
The Daily Reckoning

Editor's note: Bill Bonner's musings in the DR Classique above
gave birth to a book of essays called: "The Idea of America" - a
collection of classic essays from some of history's most profound
thinkers. America is different... but what is it, really? Follow
this link to find out:

The Idea Of America

Bill Bonner is also the author, with Addison Wiggin, of the #1
NYTimes Business bestseller "Financial Reckoning Day". For
details see:

Financial Reckoning Day - still 30% off
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