Conspiracy Nation -- Vol. 6 Num. 58 ====================================== ("Quid coniuratio est?")
I normally take what Lyndon LaRouche & Company says with a grain of salt. They often feature stories of "the sky is falling" variety. I normally scan through their weekly materials and take slight notice. However I do register what they say, just in case it gets corroborated elsewhere.
We find that, in the transcript of Mr. LaRouche's weekly radio address of November 1, 1995, he warns of "hoarding"; asked about reports that Japan and others may be hoarding gold, the arch foe of the British oligarchy replies:
...it's a general part of an international pattern, which is not peculiar to Japan... the international financial circles which congregate like hyenas around the feast in the City of London control over 60 to 70 percent of the world's precious metals trade...
...most of the world's primary resources... are now being taken in hoarding by a London crowd.
...the people who are the most powerful financial circles in the world today, gathered around the Anglo-Dutch financier oligarchy; these people recognize that their system, the present world monetary and financial system, is in the process of collapsing...
Therefore, these guys are running for cover, all over the world; running away from money, running away from financial markets.
Then, in mid-November, we had the week-long government shutdown -- ostensibly the result of a "philosophical difference" between the Messrs. Gingrich and Clinton and their respective allies. At that time, in Conspiracy Nation, Volume 6, Number 50 (CN 6.50), I speculated that things might not be as they seem; that the impasse between Clinton and Gingrich was a ruse masking financial crisis -- in other words, the government was shut down due to present or approaching dire necessity.
I also noted that the stock market was "going into orbit" and hinted that might not necessarily be such a good sign. This conception was further elaborated on in CN 6.51. (See ftp ftp.shout.net pub/users/bigred for more info.)
One of CN's readers then forwarded some information to me:
...the message says to "press 2." When you press 2, you get a second message... a man states he is on the telephone with Peter Colagia(sp?) from Boca Raton, Florida... He says that several sources have indicated that the dates of Nov. 13 to 15 are important as there is indication there may be an economic collapse or federal reserve freeze. He further states that active duty servicemen are reporting that German and Russian troops are being brought in to Fort Bragg and are being deployed to military bases on the east coast...
I realize that we have been through this "foreign troops" scare before and it seems to have amounted to nothing. I pass it along with the advice that it be viewed with caution; we have heard such types of things before. The main thing is that the financial information I am getting all seems to point in the same direction, and thus it, at least, is not just an isolated alarm -- disparate sources are saying the same sorts of things. Read on.
I asked a friend who is a banker (the CN reader informs us) what he thought of all this, and he said that we're in a "damned if we do, damned if we don't situation." November 15 is the key date for Congress on the debt ceiling. If they vote to raise the debt ceiling, then foreign investors may get nervous about investment in the U.S. and the dollar becomes very weak on the foreign markets. If Congress votes to not raise the debt ceiling, then there would be a federal reserve freeze... Either way, the stock market could really take a beating. The banker said, "crash."
True, the mid-November shutdown was resolved -- for now. But my information is saying that the big crunch will come in mid- December. At that time, the mid-November shutdown may look like "small potatoes."
At this time, we have the possibly un-related push to put 20,000 U.S. troops on the ground in Bosnia. I ask: what is it about this Clinton? The American people are yelling and screaming that they don't want NAFTA, but Bill Clinton forces it on us anyway. We say it is crazy to spend $50 billion to bail out Mexico, yet Bill Clinton seems to say, "Who gives a damn what the American people want?" And now this mad rush to put American young people in harms way in Bosnia? We the people don't want it, but that seems to be of no concern to Mr. Clinton. I know it may seem I am digressing here, but perhaps not: perhaps this mad rush into Bosnia is being propelled by hidden financial factors.
Anyway, after chatting with Mr. Skolnick this evening, the previous information I had regarding possible hoarding of "primary resources" all seemed to gel. Here is what Skolnick is saying:
I, as a free-lance journalist, am the only one that goes -- from time to time; not every year, but most every year -- to the Chicago Gold Conference, where experts from all over the world show up. And the reason for, what I call "the monopoly press", does not send their reporters there is that the big newspapers are part of "the paper money crowd". You see, if the price of gold goes up, obviously the value of paper money goes down. A high price of gold tends to discredit paper money.
Now Canada, for example, because their paper money has fallen, I think below 75 cents to the U.S. dollar, is running out of gold. Belgium and some other countries have quietly used up so much of their gold into the market. In other words, there are private forces out there that are hoarding up gold.
Another thing that is almost unknown -- I'm one of the few commentators that talk about it -- is that, when the Japanese, and the Saudi Arabians, buy U.S. Treasury [offerings] -- bonds, and notes -- the special issue, for them, is backed by U.S. gold. Whereas the rest of the people that buy Treasury notes, it's backed by nothin'!
What's happening now is what some call a "gold crunch". Gold is approaching 400 [$400/oz.] And I interview all these gold experts from all over the world, that come to the Chicago Gold Conference. And in the past they have said that, if gold ever crosses 410 -- look out!
The federal reserve is dedicated to try to buy foreign gold, to dump down the price, to make the price of gold stay below 410.
Now, there is a hoarding of gold.
And the central banks apparently know that there's some debacle in the works, some horrendous "something" that we're not told about. And they will not dump central bank gold to keep down the price of gold below 400.
So what I suggest is, I'm gonna search through all the papers and see where, in some dark corner of the newspaper, is some debacle in the works!
I asked Skolnick if he could relate all this to the current frenzy in the stock market.
The stock market has a habit, [periodically], to crash. It's in cycles. We're way overdue.
People have listened to some of these high-paid pundits who says, "Get into mutual funds." Mutual funds have the least amounts of cash reserves, practically in their history. If redemptions get too high, the whole fund gets frozen.
In the last five years, there has been an epidemic of creation of new mutual funds. And a lot of people, during the '90s, they've cleaned out their bank account of their life savings and put it into mutual funds. And so what's happening is, the mutual funds have pumped up the stock market with all this inflow of cash that's coming out of banks. And mutual funds now, in some cases, have less than 5 percent cash. So if there's any kind of a redemption, the mutual funds will quickly run out of cash, be unable to make redemptions, and under their by-laws, they'll be frozen.
Skolnick suggested that, in order to pay the redemptions, the mutual funds might be forced to massively dump their stock holdings. This would cause the stock market to DROP. He also warned that, because some mutual funds have tricky names like, for example, Big Uncle Sam's Mutual Fund, that people unwisely feel that their investment is safe. Watch out for fancy names that mislead you into a false sense of security.
Listen. They used to call it "investment trusts". And they became so bad -- so many people got ruined in the '30s that, after the Second World War, they changed the name to "mutual funds".
And people don't realize: they think their mutual fund is another type of bank deposit.
I see the gold crunch as an ominous sign. Something is happening on this planet that we're not quite told about. Either it's the downfall of the banks in Japan, because of the real estate collapse there, and a lot of their big banks are in trouble. Canada's in trouble: they don't have central bank gold to throw into, to fight, a panic. Something has happened. And this gold crunch is caused because, whatever the oncoming debacle is, the central banks are going the other way! They're hoarding!!
I encourage distribution of "Conspiracy Nation."