Schnitzel, we are already in WW3. The antagonists are the USD...

Schnitzel, we are already in WW3. The antagonists are the USD against the rest inc :

(1) Gold .... whose Biblical role as being the ONLY currency (along with silver) acknowledged by the holy ones. In 1971 decadent mortals lowered it from its pedestal and conspiringly developed a series of derivative instruments to hold it down whilst raising the printing press in its place. Even as recently as y2000 they tried to impose a "barbaric relic" status. However this didnt stick and it now behaves like a CURRENCY biding its time for when it regains its status as being the only true currency. Meanwhile the battles rage on this front against USDX but the USFed and its agents maintain control by virtue of the size of the virtual market created around the physical. I suspect that whilst the Fed was debasing it in the eyes of plebs, it was accumulating it in exchange for worthless paper for future "use". No-one outside knows the status of US gold reserves. Any new stable order of currency after the dust settles must have a gold standard reinstated for credibility. Malaysia wants a new golden dinaar following the teachings of the Koran and Mexico wants a new silver peso as its currency basis. Such moves are further new battlefronts in WW3 against the USD. Altho the gold derivatives market is prob the smallest of the major virtual markets, it alone poses a major threat as a prime detonator in torpedoing the USD. Hence the aggressive controls imposed by the main agents GS, ML, BOA with unlimited ammo supplied by the USFed. Their days are numbered.

(2) EURO ..... born in 1999 creating a new battlefront at ER 1.175 USD (thats prob the main support to current downwave) Immediately counter-attacked with the US-aggresively inspired "Balkans War" sending it reeling towards its lows around 0.85 ..... the outflows into USD adding fuel to the orgy of DJIA and friends' final blowout in y2000. After a tech rise to the 1.40 mark which I called accurately based anticipated gold price levels (my call then 445 from 320) from the lows of both, it is now under attack again giving the USD and US equity, bond, property markets temporary reprieve once again. EURO itself is only a FIAT paper and doomed ultimately with the rest. Recent breakout of gold from EUR 350 shackles caused a stir that gold was rearing its head beyond simple relative "currency" status like the rest, but has since been capped again with further manipulations down in the yellow metal's perceived value. In the "cash is king" deflation phase all currencies inc gold will react in unison against a firming USDX ...happening now.

(3) China ..... the biggest single threat to USD as it continues to export deflation whilst holding its currency set to a USD standard. Yanks really dont want to see a sharp decoupling of the RMB/USD set. Maintains economic competitiveness expanding its global economy market share at the expense of the West, fuelling its middle class expansion ..... now est to be some 150 mill of the 1.3 bill pop...... and using the same intrinsically worthless USD credits to buy out global assets inc resources and now even US companies. As the Chinese middle class expands, hunger for resources increases. Soon and just like the US in past global recessions, there will be enough internal demand from its expanding wealthy middle class to make it less dependent of the world. Military might will increase with economic. Even now it is too big to challenge militarily one would think. The RMB will eventually become the global reserve currency. RMB remains intrinsically undervalued cf USD even now to tune of around 30-40%. Best investment for mine is to acquire Chinese residency by marriage and invest in Chinese assets as Rupe recently did Property in Southern China looks attractive to me. Meanwhile China continues its battlefront undermining the USD per exporting deflation to the world.

(4) Eurozone expansion .... attacked in 1999 by the Balkans "War", undermined at the UN in Irak Mark 2, undermined recently by attacking the credibility of the Euro. Longer term megathreat to USD if/once it gets its act together. Historic experience makes them very cautious re inflation but current politics threatening to destabilise. UK retains its covert US-agent role by refusing to support the Euro. With the depletion of North Sea oil revenues tho, its only a matter of time the poms will jump ship. The poms caused the last global depression by doing same with interest rates torpedoing the US economy in 1929. Churchill pulled the plug on prosperity in his role as Chancellor of the Exchequer at the time. All was forgotten in the later red herring called WW2. Russia holds the key to future health with its increasingly expanding role as supplier of natural resources to Eurozone and increasingly paid in EUROS !!!! Such a move was trigger for Irak 2 invasion ..... stupid SH decided to openly challenge the USD by trying to switch to payment in EUROS for his oil. Such a threat to the USDX could not go unanswered and espesh since other motives existed coincident. Next major military global conflict may be between US and Eurozone rather than China ..... that comes later. In fact Olympian Nostra foresees something along those lines. Russia's role increasingly challenges the USD. Russian hardliners remember the insults imposed in 1996 "empire" dissolution. Russian rouble collapse in 1997 almost brought down the US equity markets per the LTCM margin possies in roubles .... everyone conveniently forgets that a single event as such caused a s/t collapse of around 20% in the DJIA. The USFed had to intervene to hold the financial system together. They said they would NEVER intervene again. But thats ALL they have been doing ever since !!!! Russia remains a loose cannon and poses extreme danger to the USDX.

(5) OPEC .........the current OVERT battlefront ..... tho methinks it is not the truth showing. Saudi Arabia remains a puppet of the US. The sheiks would be wiped out without US "protection" akin to the mob MO. Military presence in neighbour Irak is essential to maintaining some control over ME oil, not so much in Irak, but moreso in SA. However the sheikhs might be playing a double covert role. Either way for now, high oil price is necessary to providing a little inflation in the system and covering the reality that DEFLATION is the immediate concern. Controlled elevated price of oil remains a key. Extreme move EITHER way poses a major threat to USD. All it takes is a few pounds of plastic and up goes a refinery and up goes oil price to 100 bucks .........and the global economy stops. Tightrope for the smoke and mirrors magicians to continue walking a long. An uneasy "relationship" remains.

(6) Muslim World. No major threat unless it is co-ordinated per terror (SA oil refinery targets best effect), imposition of Koran inspired golden currencies affecting the balnce of the gold derivatives markets, Iran challenging the US resolve. Terror is being coralled by taking the front to Irak. The words of mass deception have created a convenient red herring to take the public focus off the real problems at home. Danger remains in the mobility of small nukes or bio possibilities at any time anywhere. There is no control over this. One has to hope that even terror is a controlled event and maybe all antagonists have common ground to not allow this to escalate to uncontrolled stage. Wildcard. Lotsa plebs working for Allah ..... but WHO does Allah work for ????????? Thats a chapter in itself. Lets just say OPEC is main agent and atm seems to be honour amongst thieves prevailing. Lets hope the balance remains.

(7) Nature .....now we come to the MAIN battle front against the USD. Chaps 1 and 2 deal with the insults committed by mortals and their MO. Cosmic cycles will occur no matter what, cos human nature doesnt change. Cyclically we are due for a cleanout of capitalism ....simply done thru debt default. Greed and Fraud are Nature's agents. Deficiencies current in trade, government and pensions overwhelm ability of mortals to satisfactorily address without reliance on those printing presses again. There is no co-ordianted plan to address. Herein lies the largest and most immediate threat to the USD and the derivatives dominoes wait ready to roll. The greatest weakness lies in the failure of those same mortals to accept the perilous state of their existence. Further danger lies in new geopolitical fronts being opened to take the focus and urgency away from the real threats. There aint no uncoordinated "easy" Iraks left to make an example of. It has been 2 generations since the last time Nature brought reality back to uncontrollable greed.

We remember the mistakes of our parents but not those of our grandparents. S_V_Crumb cites the "hard times " of the late 80s early nineties. What hard times? All I can remeber was diving outa the market on the day of the 87 crash, recovering my liquidity over next 2 years in CommmBank at around 17% at call and picking and choosing the resources remnants at the Jan 1991 double bottom to later register a great return period cashing out in 96 just ahead of the Asian crisis. Timing is EVERYTHING to yr risk/reward ...and time to re-assess yr status is now given the threats.

We are indeed already in WW3 .......the world against the USD. At the monment the battles rage in favour of the USD ...but IMO its is running out friends and more imporatntly outa TIME against Mother Nature. Loss of control in any one of the battlefronts cited above could trigger a sharp reversal of USDX from current rally (USDX 92 seems a natural major resistance looming) and the sheer number of possible triggers raising their heads has gotta influence a betting man's decisions. A plunging USDX will cause massive dumping and repatriation of all classes of investments outa the US inc equities, bonds, property and herald in Puplava's Perfect Storm ...a MUST read. Thats the MEGABEAR ASSET DEFLATION wave ORM is on the lookout for.

I could be wrong but Ima betting man and play it the way I see it. Nailing the background global drivers is more important to me than daytrading according to short term charts. Alerting yas to the POSSIBILITIES and to the likely TRIGGERS might help yas make yr own decisions as to what insurance policies u may wish to place in yr investment exposure. My focus is on asset PRESERVATION to ride out whatever heads our way and still be around to take advantage of the opportunity of a lifetime when the dust settles. IF I am wrong, no harm done to take a little care. A little opportunity lost is a small price to pay for life protection if Im right. We will know soon enough. DJIA 9800 break is the first main ALERT.

Above refers to megabear C still. Kondratieff C-UPwave next chapter.

Nice to see baby break the buck while Ive been writing this. When/where is our first dollar party Olympians ?