February 27, 2007
by John Galt
Today's market actions, not just in the "Dow" and stocks, but in the metals should not have come as any kind of shock to any of your listeners. This is a perfect example, a "taste" of what's to come. This market decline today was exacerbated by failures of the mathematical algorithms and trading programs the banksters use to trade with each other. The only people penalized were the Mom and Pops who took the word and FAITH of these talking heads on television. The losses, once again are PAPER losses. And the reaction of the precious metals should not surprise anyone. Once selling begins, to cover losses in other markets the major houses in the U.S. will sell ALL assets to protect themselves and everyone else be damned.
I think we are approaching the final buying opportunity in gold and silver as the market will stabilize soon. The deflationary aspects of today's market action is actually a positive for the precious metals in my opinion because when world geopolitical events overtake the main stage and create a large panic, the dollar, treasuries and stock markets will be the victims of the true, large scale slaughter. People always have in history and always will migrate to precious metals during a major crisis.
Once the bombs start falling on Iran, that's when the cascade of programming failures will truly be exposed. Today indicated minor failures. When we hit Iran or Israel does, the lack of human intervention in the markets will slam everyone except the super wealthy and powerful and quite possibly be the historical event which marks the verification of the final decline of America as a world power.
Watch China as many of us have been saying. The bank failures in Taiwan were the first hint last month. The problems with Avian Flu and bank issues in Hong Kong the next. China can crash the world whenever it wants. Perhaps this is their warning shot against us not to act against Iran.
I think we'll know for sure in the next 30 days.