"Hong Kong Fighter Pigs"
John Mackenzie
March 13, 2004
The past few weeks have blended
into an endless tug of war, an epic battle of "Paper"
over "Resources." The Gambit must be far larger than
assumed as it's now no longer a skirmish largely held in check
in the shadows. This war is being waged in broad daylight.
Volatility, across the Market Spectrum, is increasing dramatically
and it implies "Risk."
Crude Oil continues to remain an open wound for the "Global
Economy," as our economic "Artisans"
barely mention the impact of rising Crude prices on the illusory
"Recovery" fable.
The U.S. Apres-Industrial, Financial Economy depends largely
upon the Good Will of Oil Producing Nations willingness to accept
increasingly devalued Dollars for a dwindling supply of "Cheap
and Accessible Oil," without it we will grind to a halt.
Our "Value Added" as a member of the International
Community mutates daily within the acceptable Financial Matrix
as Dollars, re-cycled through the Treasury Mill, become an ever
distant "Promise of Repayment."
This becomes readily apparent as the broad Indices Plunge have
not "Damaged" the Commodities Complex. Commodities
are holding firm and appear to be consolidating for a far larger
move as "Resources" begin to assume control from their
"Paper Shackles."
There hardly exists a more predictable and transparent "Intervention"
than in the Gold and Silver markets. This daily affair no symbolizes
just how much is at stake. Honest money cannot be allowed to
"Perform" as such. A significant risk to these markets
must be right around the corner... had the Producer Price Index
been released on time, it may very well have sent the Metals
Complex Skyward and the Bond Market into a tailspin.
With so much at stake there is little doubt "Price Inflation"
can be allowed to rattle the "Interventionist Gambit"
currently underway. "Nothing to see here, please move on..."
the current mantra remains in check, for now. Unfortunately for
the "Interventionists" the "Facts belie their
Truths."
Incompetence is merely another "Sideshow."
No matter how the Federal Statisticians obfuscate the adjustments,
the real issues remain since the prior PPI report: - ISM Prices
Paid Index is at a nine year high.
- CRB is at a twenty year high.
- Crude Oil is up 10.4%.
Cause with no effect is rarely masked for very long, not at this
late stage of the "Interventionist Gambit."
It would appear there is no real end in sight for the rising
trend in Resources even as the Dollar has gained strength. There
are simply far too many Dollars being pushed around the plate
like Jello.
How long can this go on?
It will continue until it no longer can and that day appears
to be rapidly approaching.
An "Event," is going to give way and topple the
"Great Game." I'd venture a guess though... "It"
will come from the East.
I continue to be a buyer of Physical Gold at these Levels as
I envision a time in the not too distant future where "Real,
Honest Money" free of its bonds, will be demanded as "Payment"
in competition for ever scarcer resources.
March 13, 2004
John Mackenzie
jrmfl@adelphia.net
John Mackenzie
manages private capital and hosts a gold
forum/investors exchange on Yahoo! groups.
________________
321gold Inc
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