
              Conspiracy Nation -- Vol. 6  Num. 58
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                    ("Quid coniuratio est?")
 
 
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GOLD CRUNCH?
============
 
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.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*!!
 
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  pauperem.                    -- Liber Proverbiorum  XXXI: 8-9 

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