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 ago.”
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 intelligence mistake?
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 are many.
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
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 capitulates.
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
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 termed “Chaostan.”
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
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, 2000
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
stocks & other significant contrarian plays subscribe to Gold
Letter Alert. While Gold Letter is dedicated to the gold &
silver stocks we have been asked by our subscribers to cover on
occasion 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
to be gold & silver we will also share with subscribers what
we consider to be exceptional non mining contrarian plays that
we run across via our connections & sources.
What makes many of these issues so attractive is
their potential to often generate returns of over 100 times.
“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
life: your life or ours.
You will only find the Gold Letter Commentary on
select websites that meet our high standards of journalistic excellence!
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 this circumstance.
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
Author/publisher does not trade stock
of the company being followed for 30 days before & 30 days
after an article is published. Readers are advised that the material
contained herein is solely for information purposes. The author/publisher
of this letter is not a qualified financial advisor & is not
acting as such in this publication. Gold Letter, Inc. is not a
registered financial advisory. Subscribers should not view this
publication as offering personalized legal, tax, accounting or
investment related advice. All forecasts and recommendations are
based on opinion. Markets change direction with consensus beliefs,
which may change at any time and without notice. The author/publisher
of this publication has taken every precaution to provide the
most accurate information possible. The information & data
were obtained from sources believed to be reliable, but because
the information & data source are beyond the author’s
control, no representation or guarantee is made that it is complete
or accurate. The reader accepts information on the condition that
errors or omissions shall not be made the basis for any claim,
demand or cause for action. Past results are not necessarily indicative
of future results. Any statements non-factual in nature constitute
only current opinions, which are subject to change. The owner,
editor, writer and publisher and their associates are not responsible
for errors or omissions. The author/publisher may or may not have
a position in the securities and/or options relating thereto,
& may make purchases and/or sales of these securities relating
thereto from time to time in the open market or otherwise. Authors
of articles or special reports contained herein may have been
compensated for their services in preparing such articles. Gold
Letter and/or its affiliates may receive compensation & or
stock options for the featured company’s right to publish
& reprint & to distribute this publication. Nothing contained
herein constitutes a representation by the publisher, nor a solicitation
for the purchase or sale of securities & therefore information,
nor opinions expressed, shall be construed as a solicitation to
buy or sell any stock, futures or options contract mentioned herein.
Investors are advised to obtain the advice of a qualified financial
& investment advisor before entering any financial transaction.