Gold Industry Officials Warn Of Depression, Expect Major Economies To Boost Reserves

Bailout packages will likely lead to mass inflation, dollar crash

Steve Watson
Infowars.net
Monday, March 2, 2009

Senior Officials within the Gold Industry have warned that an economic depression followed by a dollar crash is a real possibility, as they announced moves by major economies to raise their central banks' gold reserve holdings.

Marcus Grubb, managing-director of investment research and marketing at the World Gold Council, has warned that the strength of the U.S. dollar is likely to be short-lived and has said that major developing economies such as India and China are looking toward diminishing their dollar holdings.

"What we are seeing is a reassessment of the risk associated with the high exposure to the dollar. Obviously at the moment you see the dollar appreciating 25 to 30 percent against most currencies around the world, but a lot of that is obviously driven by liquidity." Grubb said.

"That is a temporary phenomenon, if you look at the size of the bailout packages in North America the fact that the U.S. economy may well enter a depression ... there is a real fear of that," he said. "In that scenario I wonder what will happen to the U.S. dollar."

Grubb also says he expects to see moves by middle eastern countries to shore up their economies by buying gold.

"It would certainly be (a concern) to all regions pegged on the dollar ... because they have run surpluses, and the Western countries have been in deficits, they have huge accumulation of dollar reserves," Grubb said.

"In that scenario you could see an increased demand for gold then."

Grubb's analysis dovetails with that of other prominent economists and investors such as such as Eric Sprott, Johann Santer, Jim Rogers, Robin Griffiths, Edward Hands and Jurg Kiener to name but a few, who are now predicting that global central banks' insistence on printing their way out of economic turmoil is setting the stage for a hyperinflationary holocaust, a knock-on effect of which will be gold's acceleration towards $2,000, as demand for precious metals outstrips supply.

This past weekend, legendary investor Warren Buffett joined the chorus as he warned that the multibillion-dollar bailouts handed out by the US Government will bring on an “onslaught of inflation".

“Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel,” Mr Buffett said. “These once unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation.”

Meanwhile other prominent economists such as former chief credit officer at Fannie Mae Edward J. Pinto, philanthropist George Soros, the IMF’s top economist Olivier Blanchard, and Professor Peter Morici, a former chief economist at the U.S. International Trade Commission, have all concluded that the U.S. is entering a full scale depression.

http://www.infowars.net/articles/march2009/020309Gold.htm

PLEASE CONTINUE TO FIGHT FOR LEONARD PELTIER

Leonard has been transferred back to USP-Lewisburg and released
to the general population. He was welcomed back not only by
the brothers at Lewisburg, but by all of the prisoners. Leonard
wishes to thank all of his supporters for standing with him during
this difficult time. But we need to finish the job. Take Action:
http://www.FreePeltierNow.org/transfer.htm.

Leonard's address:

Leonard Peltier
#89637-132
USP-Lewisburg
US Penitentiary
PO Box 1000
Lewisburg, PA 17837

Protect the Life of Leonard Peltier

On January 13, 2009, 64-year-old and ailing Indigenous activist Leonard Peltier was transferred to USP-Canaan, a maximum security facility in Waymart, Pennsylvania.  Not long after his arrival, Peltier was attacked by two young inmates and sustained a number of injuries.  Proven to be the victim of the attack via videographic evidence, Peltier is nevertheless being held in solitary confinement and is unable to contact family but once a month. Peltier's attorneys were denied access to their client for four days. A protest in support of Peltier, a member of the American Indian Movement, occurred in San Francisco on January 23.  Other protests are being planned in Colorado and elsewhere on or around February 6, the 33rd anniversary of Peltier's arrest in connection with the shooting deaths of two agents of the Federal Bureau of Investigation. Peltier's Nation, the Turtle Mountain Band of Chippewa Indians, passed a resolution late last year requesting Peltier's transfer into their custody to serve the remainder of his sentence.  Family members are supportive of such a transfer.  Alternatively, family members want Peltier transferred closer to home, either to FCI Sandstone (MN) or FCI Oxford (WI).  Peltier's security rating has been greatly reduced by the Bureau of Prisons (BOP) in recognition of his model behavior for the past 30 years.  "The fact is that Peltier is an innocent man.  He should be given his freedom.  All that aside, his current security rating means he shouldn't even be in a maximum security prison anymore," said Peltier attorney Mike Kuzma. "In light of this incident, we know that the BOP cannot ensure Leonard's safety in a maximum-security environment."

* Take Action *

Due to YOUR actions, Leonard has been transferred back to Lewisburg.  But we know that the BOP can't or won't protect Leonard from harm in ANY maximum security prison.  We must keep up the pressure on the BOP to transfer Leonard to one of the three above locations.  Today and every day, make your voices heard. Send letters, call, and/or e-mail the director of BOP. 

Harley G. Lappin, Director

Bureau of Prisons

U.S. Department of Justice
320 First Street., NW

 Room 654
Washington, DC  20534
Phone:  (202) 307-3250
Fax:  (202) 514-6878

E-mail:  hlappin@bop.gov

A sample letter (that you can adapt and use for a telephone script, as well) follows.

Dear Sir:

I was outraged to learn that, on January 13, Leonard Peltier was transferred to USP-Canaan in Waymart, Pennsylvania, where he was immediately attacked and injured by young gang members.  Your inability to protect Mr. Peltier in this or any other maximum security facility is clearly evident.

I understand that last August Mr. Peltier properly submitted a formal application for transfer to an institution close to his home in North Dakota—either the low-security prison at Sandstone, Minnesota, or the medium-security facility in Oxford, Wisconsin.  Such an assignment, I know, would comply with Program Statement 5100.08 which states that the BOP is to make every effort to keep prisoners within a 500-mile radius of their homes so that prisoners can maintain ties to their families and home communities. In reviewing Mr. Peltier's places of confinement during the past 33 years, however, I was shocked to discover that he has never received such consideration.  Apparently, your rules don't apply to Mr. Peltier and never have. 

In addition, in late 2008, the Turtle Mountain Band of Chippewa Indians also sent a resolution to you offering a third option, i.e., that their tribesman Peltier be transferred to that Nation’s custody to serve the remainder of his sentence. 

Leonard has been a model prisoner for the past 30 years.  In recognition of this, the BOP has greatly reduced his security rating.  Peltier shouldn’t be imprisoned in a maximum security facility anymore.  His reduced security rating, Peltier’s application, and his Tribal Council’s request should have been but clearly weren't taken into account in the BOP’s recent decision to transfer Peltier to yet another maximum security prison—and one where his safety and wellbeing were put in such serious jeopardy. 

The only remedy to the current situation is for you to immediately transfer Mr. Peltier to one of the above, more appropriate facilities.  I strongly urge you to do so.

Sincerely, 

(Your Name)

(Your Street Address)

(Your City, State and Zip Code)