Well, how about those
weapons of mass destruction?
“Kay (David Kay, former chief of the US
arms search in Iraq) said he now believes that Iraq did not have
banned weapons before the war and had probably destroyed them more
than a decade ago.” John Diamond, USA Today, 2-13-2004
And how many young men died searching for those “weapons
of mass destruction” that now are acknowledged to have NEVER
existed? Over 500 young American men & women who will never
see their children grow up have given their lives battling a country
that did “…not have banned weapons
before the war and had probably destroyed them more than a decade
But let me ask this question.
Was the attack on Iraq ever really about just Saddam
& his supposed “weapons of mass destruction?” And
how stupid are we going to suppose our American Intelligence really
is? Are we to believe now that this was just a silly & stupid
Well, maybe I am naive but I refuse to believe that
the decision to conquer Iraq ever was just about dangerous stockpiled
weapons. I suppose we just discount the fact that Iraq is home of
the worlds second largest oil reserves? Yes, those oil reserves
are just a coincidence & their consideration did not have any
influence over these war decisions.
And if the decision was simply to remove Saddam &
to hand the country back over to the Iraqi people how quickly has
that been accomplished? Yes, Saddam was finally found hiding in
a hole, but I’d be willing to bet that it will be a long time
before the US exits totally out of Iraq & hands the country
back over to the Iraqi people.
But really, my intent here is not to weigh whether
or not these decisions were right or wrong. But my point here is
to define the inevitable future consequences of these actions.
Actually, the entire apparatus of politics that involves
what is presently happening in Iraq & that general area I am
not even attempting to touch with even a 20 foot pole. What is happening
over there is very complicated & I am sure the US objectives
But we can attempt to examine what the long term results
will be by becoming more heavily involved in this very volatile
part of the world. And how do we sum up simply in an understandable
& uncomplicated way what is happening in Iraq today?
We are in the midst of the beginning stages of a long
term war involving the interests of the East & the interests
of the West. And let me repeat again that we are merely at the BEGINNING
of this conflict that will not be solved until either side totally
And I sure do not see either side capitulating any
time soon if ever.
The earlier world wars of the 20th Century did not
begin overnight but the process leading up to those events simmered
& stewed for years & years.
And so too events today are simmering.
But again the important point to grasp is that we
are in an ever escalating war that is not going to be resolved any
time soon. This conflict will involve battles
for supremacy over currency, oil & domination of world markets.
Let me recommend here one individual who devotes his
life to studying these conflicts today. His name is Richard Maybury
& it is really worthwhile subscribing to his newsletter because
this fellow does an excellent job studying & examining what
is happening politically in the Middle East, Iraq & all these
countries that involve the region that Richard Maybury has appropriately
But lets remain focused & go over the title of
this article again, “World War III & Gold.”
Remember all the negative articles & negative
stories about gold’s growing irrelevance just a few years
ago? But these negative diatribes against gold came out when the
glorious bull market was heading to 100,000 & the worlds only
major concern then was who was presently being entertained under
the Oval Office.
But those days have changed & our world is changing
DRAMATICALLY every day.
“Borrowing & spending has been sustaining
the US economy for so long that the phenomenon seems utterly unremarkable
to most investors.” Bill Bonner, Daily Reckoning, 2-12-2004
In addition to learning who Richard Maybury is another
smart cookie who is worth listening to regularly is Bill Bonner
& his daily commentary. Editor
“The Feds flow-of -funds data show that
net foreign claims on US assets already are $2.3 trillion, or about
21% of nominal GDP. That total is being added to at a current rate
of about $550 billion a year,” says Kasriel (Northern Trust
economist Paul Kasriel.) Bill Bonner, Daily Reckoning, 2-12-2004
And as the east/west conflict grows so too is the
world’s positive perception of gold evolving. I know that
most folks are hoping for a specific calamity to act as a switch
that will trigger a sudden panic buying of gold & gold equities.
Will this trigger event ever occur?
It really does not matter if a definitive trigger
event ever occurs. We really do not need any sudden dramatic event
to draw the world’s attention toward gold.
ALL WE REALLY HAVE TO DO IS TO JUST SIT BACK &
QUIETLY WAIT FOR PRESENT CIRCUMSTANCES TO EVOLVE & TO CONTINUE
TO GROW IN SEVERITY.
And in what other ways are world events evolving?
Let me remind folks that the US is no longer a nation whose wealth
is measured by its ability to manufacture goods for the rest of
the world. But now we have a “service” based economy
& our national wealth is based on these “service”
Now let’s define these wonderful “service” sector
jobs awaiting tomorrow’s children?
“Wal-Mart has replaced General Motors
as the largest employer in America with over 1 million employees
where, instead of earning a middle-class wage, workers earn starvation
wages of $13,861 a year – a salary that is below the poverty
line. Meanwhile, 4 out of the top richest people in America are
relatives of Sam Walton, Wal-Marts’ founder, and are worth
over $100 billion.” Representative Bernie Sanders, Daily Reckoning,
The above data that we just read has always appalled
This family is worth over 100 billion but yet their
employees are paid scratch & have no benefits. And did you read
the documentary a year or so ago about Wal-Mart taking out life
insurance policies on their employees so that Wal-Mart can profit
when their employees kick the bucket?
“And, according to a recent study by the
Haas School of Business, 14 million white-collar service jobs, representing
11% of the total US workforce, are in danger of being outsourced
overseas. US workers who have been outsourced are not moving into
better-paying jobs.” Daily Reckoning, 2-16-2004
The above text we just read is heavy so let’s
read it again.
“…US WORKERS WHO HAVE BEEN OUTSOURCED
ARE NOT MOVING INTO BETTER-PAYING JOBS.”
Let me give another plug here for Bill Bonner &
his daily commentary which he writes from little street cafes in
France. The man is good & his analysis is right on the mark.
His column is very much worth reading daily to get a good picture
of what is really going on in the world. Editor
Now let’s repeat what was the title to this
article? “World War III & Gold”
Maybe these different events seem unrelated that we
have covered so far: unemployment, debt, currency wars, east verses
west conflicts, but do not be mistaken on what causes war. All these
circumstances we have talked about are creating serious under currents
of stress that will only build & intensify as time goes on.
And it will be these cascading events that will eventually lead
to greater regional & world conflict.
And as all these conflicts gather steam do you still
want to believe that gold’s role is not also growing in the
scheme of things? Continue to make no doubt that gold continues
to represent the best investment of this dawning new century.
But let’s close by shifting our attention away
from gold & on to something of even greater importance.
“The home is the most powerful place on
earth. It is the cradle of the soul. Our minds & personalities,
our loves & our hates, our fears & our dreams are all molded
in the home. … IT IS SHEER HUBRIS TO THINK THAT WE ARE “SELF-MADE”
WOMEN & MEN. We learn how to live from other people. We did
not develop in a vacuum; we were taught how to function from other
people & by no one more so than our parents & our siblings.”
James Bryan Smith & Rich Mullins, An Arrow Pointing to Heaven,
Some folks do not like it when the topic of conversation
shifts to moral issues. And, indeed, there are gold & financial
Internet websites that have policies that prohibit writers from
discussing ethical & moral issues. But as we have said many,
many times before: you can make all the money in the world, but
money by itself with no family to share it with really means nothing.
“Many of us base our identity on what we
do, or how we look, or how much money we have. BUT NONE OF THESE
FORM THE FOUNDATION OF OUR TRUE IDENTITY.” James Bryan Smith
& Rich Mullins, An Arrow Pointing to Heaven, 2000
Actually, my Dad said it best in a letter he wrote
me years ago.
My wife & I had just gone through a bit of a spat.
That woman walked out on me & headed out the door for 3 weeks
without so much as a note to drive her point across. And I never
quit respecting her for having had the courage to do that at the
time. Anyway, after we got our act & our marriage back together
my Dad wrote me a letter with his own earthly wisdom. The following
is a text from that letter:
“I do not measure a man’s success
by his breadwinning ability but also his success at being a whole
man, and being able to command the willing love & respect of
his wife & family.”
And as you invest for the future be sure to put your
family first & your portfolio second.
For a conservative review of precious metals mining
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Letter Alert. While Gold Letter is dedicated to the gold & silver
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other contrarian plays as we run across exceptional situations.
It doesn’t hurt to have a little DIVERSITY
among a portfolio & while our major emphasis will continue
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we consider to be exceptional non mining contrarian plays that we
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What makes many of these issues so attractive is their
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“Thank you for the recommendation.
Invested just a small sum.
Have already made over $400.
Proves your service is worthwhile!
Keep sending choice non-PM (non-gold contrarian recommendation)
nuggets such as this.”
And your subscription to Gold Letter Alert is for
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You will only find the Gold Letter Commentary on select
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As a side note I just wanted to take the time to thank
everyone for your kind messages & prayers concerning my Mother’s
terminal cancer. We were informed today that she has about 3 weeks
or less now & I have appreciated the kind emails concerning
If there is ever anything I can do for any of you
out there please let me know & I’ll see what I can do.
David N. Vaughn
Gold Letter, Inc.
February 20, 2004
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