Richard Russell – This Will Shock The West & World Leaders
KingWorldNews.com
May 28, 2014
Today KWN is publishing another important piece that was written by a 60-year market veteran. At nearly 90 years old, the Godfather of newsletter writers, Richard Russell, notes that we may be headed for something that will shock the world and its leaders. Russell notes that this would also crush the already fragile consumer.
Russell: “I’m going to talk about one of my favorite topics — gold. One advantage of gold, unlike real estate, is that gold is extremely liquid. At any time you can buy or sell almost unlimited quantities of gold. Another advantage of gold is that gold is easily kept and stored; gold doesn’t spoil or tarnish. Another advantage is that gold is outside the “system.” It is anonymous. Gold can be handed down from generation to generation. Gold is a good conductor of electricity; it is malleable and ductile.
Gold was considered wealth five thousand years ago, and it is considered wealth today. Gold is the first metal named in the Bible. One of the items the three wise men gave to the infant Jesus was gold. Gold doesn’t become antiquated, although many other items that are treasured today may become worthless over the years. Almost all “items of value” are subject to trends. For instance, the works of the great British landscape artists were treasured fifty years ago. Today nobody wants them.
I’m particularly interested in the action of gold from now to July, its traditionally weak season. I have expected the bear market in gold to end in July. Therefore, the less gold gives up in price from now to July, the more bullish the situation.
I see signs of manipulation in gold through the action of “paper gold” on the COMEX. Occasionally we see huge masses of futures being dumped in a matter of minutes on the thinly traded COMEX. All this in an effort to keep the price of gold down. Eventually, gold will reach its rightful level. So to coin a phrase, “You can’t keep a good currency down.”
Will the US government confiscate gold? My answer is NO, they will not. How would confiscation help the US? If the US possessed a huge hoard of gold, an extra few hundred tons of gold might boost confidence in the dollar. But I suspect that the US has sold or loaned all of its gold. If I’m wrong, then let an audit show me that I’m wrong.
If the US confiscates anything, it will be cash. This is what the US badly needs to carry its enormous debt. The US can confiscate cash through higher taxes or through a wealth tax. I believe in an emergency, Congress would vote for a wealth tax — say a tax on a person’s wealth over $400,000. Remember, a government will do anything it has to that will allow it to remain in power.
I just received the latest issue of Barron’s. It includes a two-page interview with the brilliant Stephanie Pomboy, President of the Macromavens advisory. The Barron’s interview is entitled — SURPRISE! THE FED WILL HAVE TO REVERSE COURSE.
The Rest…HERE
