RESTORING THE STANDARD

10/31/2002

IN THIS ISSUE ...


MARKET NEWS DIGEST ...

-Ten Largest Securities Firms Ready to Pay $1 Bln to End Probes - Bloomberg

-Consumer confidence slides to 9-year low - CBS.MarketWatch

-Coin trade becomes more like a market - NY Times

-Two-tiered coin market in place, CDN NEWSLETTER

-Gloom may cause 'double-dip' - CNNfn

-Mortgage lenders grow wary in some areas - USATODAY


COMMENTARY ...

-RESTORING THE STANDARD - Craig Smith, SATC

-THE ANTI-GOLD CROWD'S SECRET - Richard Russell, DTL

-LOOKING OUT FOR THE TRIGGER - Roger Arnold, MyHomeLender

-THE GOLD DINAR: A NUCLEAR WILD CARD - Jim Sinclair, Tanrange

-48 MYTHS ABOUT GOLD - Jason Hommel, Gold-Eagle.com

-UNLOCKING THE MYSTERIES OF CREATION, PT. II - Book Review


QUOTES OF THE WEEK ...

"He who is the most slow in making a promise is the most faithful in the performance of it."
-ROUSSEAU

* * *

"If the [Malaysian] Gold Dinar is employed as now suggested, it would tie up approximately 200 tonnes of gold production equal to 10% of new mine supply. If Malaysia went all the way and went to convertibility with a 15% gold cover, they would utilize more than 300 tonnes of new production. Either way, this is the Wildest of Wild Cards for gold."
-JAMES SINCLAIR, CHR., Tanrange.com, 10/28/02 (see below)

* * *

"Investors are in a see-no-evil frame of mind. They are turning a blind eye to the very same financial flaws that troubled them only three weeks ago...But the flaws are out there nonetheless. "One characteristic of the recent rebound in stocks," says Barrons, "has been investors' tendency to sidestep, ignore or explain away consistently unimpressive economic data." In addition to the aforementioned drop in durable goods orders, the index of leading indicators fell for a fourth straight month and the University of Michigan's consumer-sentiment reading tumbled to a nine-year low."
-ERIC FRY, Daily Reckoning, 10/28/02

* * *

"For the great European economists, economics was in essence a branch of logic with minimal statistics; for American economists, it is traditionally a branch of statistics with minimal research and logic. The past U.S. boom was anything but normal, and so is the downturn."
-DR. KURT RICHEBÄCHER, for Daily Reckoning

* * *

"The Fed's ability to avoid depression is a myth in the sense that experience with business cycles over the past half-century has demonstrated only the Fed's ability to end recessions of its own making, usually in pursuit of price stability. As yet, no central bank has succeeded in mitigating the aftereffects of an investment-led cycle, in which overcapacity chronically depresses profits, as it did in the United States in the 1930s and Japan in the 1990s and has been doing again in the U.S. since early 2000."
-JOHN H. MAKIN, AEI, "Don't Count Too Much on Central Banks"

* * *

"According to Chicago-based Bianco Research, investors in equity mutual funds measured since the bottom of the last bear market in 1990, have now had their collective profits completely eroded away. In other words, if you consider all the money invested in stock funds over the past 12 years, the combined return amounts to a big fat goose egg."
-BARRON'S, Oct. 14, 2002

* * *

"Delivering high quality, independent research is the right thing to do for our clients. Our objective going forward is to increase faith in the integrity and impartiality of the product."
-Ms KRAWCHECK, Sanford C. Bernstein, executive vice president of its parent company, Alliance Capital Management.

* * *

"When listening, reading or watching money managers discuss issues be mindful of what is not being said as well as what is being said. They have a fiduciary relationship with their PAYING clients; not to each other, the media format provider or the audience."
-ROGER ARNOLD, Daily Observations, 10/28/02, referring to recent round table discussion on FOX's Neil Cavuto.

* * *

"Every once in a while a book comes along that is perfect for readers of all ages. Such is the case with "Unlocking the Mysteries of Creation" by Dennis Petersen. I've posted my book review so you can see why this book is so different."
-EDITOR


LAUGHS OF THE WEEK ...

"Better living through denial."
"The more you complain, the longer God lets you live."
"If you think nobody cares, try missing a few payments."
"Reality is a crutch for people who can't handle drugs."
"Lottery: A tax on people who are bad at math."
-BUMPER STICKERS, The Freeman Institute

* * *

"Richard Russell points out that in August 1999, the Dow equaled 42.1 ounces of gold. Now, it brings only 26. We hope we didn't forget to tell you, dear reader, but we thought exchanging stocks for gold would be the Trade of the Decade. We still think so: sell the Dow, buy gold. Not that we know what will happen, far from it. Inflation? Deflation? We don't know. But we like the feel of real gold coins in our pockets. Even if the global economy falls apart, we figure, we'll still be able to buy a loaf of bread and a bottle of wine."
-BILL BONNER, Daily Reckoning, 10/30/02

* * *

"It seems that the lower our economy sinks, the higher the stock market soars. Maybe if we all quit our jobs on Monday, the Dow will hit 64,000 by Christmas." -ERIC FRY, Daily Reckoning, 10/28/02

* * *

"The dollar is America's greatest success story, because each one costs less than a penny to produce and yet, is sold throughout the world for $1 apiece. What American export can match that?"
-JIM GRANT, Grant's Interest Rate Observer, NYC Conference


MARKET NEWS DIGEST ...
Ten Largest Securities Firms Ready to Pay $1 Bln to End Probes
By Monique Wise and Philip Boroff - Bloomberg

New York, Oct. 31 (Bloomberg) -- Wall Street's 10 largest securities firms are ready to pay as much as $1 billion to try to resolve conflict-of-interest investigations that have pummeled their shares and hurt their reputation with clients, people familiar with the matter said.

Morgan Stanley, Credit Suisse First Boston and eight other firms are prepared to subsidize non-investment banking firms that produce stock market research, the people said. They also are considering separating research and investment banking. Citigroup Inc. plans to create a new unit for its brokerage and equity research in an effort to settle allegations it deceived investors with misleading stock recommendations.

Lawyers and executives for the securities firms say that the plan, created by New York Attorney General Eliot Spitzer and U.S. Securities and Exchange Commission enforcement chief Stephen Cutler, is flawed because it requires them to finance competitors, the people said. The executives, who will meet with regulators today at the New York Stock Exchange, say they have little choice but to accept it as part of a settlement to end investigations that have helped erase 20 percent from the Amex Broker/Dealer Index of 12 securities firms this year.

Under the plan, Wall Street firms would be required to pay the independent companies to create reports on all of the 7,300 companies that trade the New York Stock Exchange, Nasdaq Stock Market and American Stock Exchange.

The proposal also asks whether firms should adopt a single ratings system, such as "buy," "sell" and "hold." While the SEC now requires firms to have a three-tier system, Morgan Stanley, for example, earlier this year adopted the terms "underweight," "equal-weight" and "overweight."

Steve Balog, a former technology research chief at Merrill, said the proposal is an improvement over the status quo. Even so, independent research won't have much effect on investors, he said. That's because investors prefer positive reports that will drive their stocks up.

"Negative research is easy to produce, but there's no market for it," said Balog, a principal at a Cedar Creek Management, a Summit, New Jersey, money manager. "People don't want their parade rained on."

SOURCE: http://www.bloomberg.com


Consumer confidence slides to 9-year low - CBS.MarketWatch
By Julie Rannazzisi, Oct. 29, 2002

NEW YORK (CBS.MW) -- Stocks extended losses Tuesday after a key reading on consume confidence dropped to its lowest level in nine years, igniting worries that spending may falter in the coming months.

The October consumer confidence index tumbled to 79.4 from September's 93.7 level, mirroring the recent decline in the University of Michigan's sentiment gauge. Economists polled by CBS.MarketWatch.com had expected a 90.1 reading.

Both the expectations and current conditions indexes took nosedives as well. Check economic calendar and forecasts.

"The outlook for the holiday retail season is now fairly bleak," said the Conference Board, which releases the data.

SOURCE: http://www.cbs.marketwatch.com


Coin trade becomes more like a market - NY Times
By BERNARD SIMON, Oct. 27, 2002

TORONTO -- The Professional Coin Grading Service has begun tracking the coin trade electronically in much the same way that Standard & Poor's tracks the stock market.

The firm's CU3000 index, which can be found on its Web site, pcgs.com, covers 3,000 American coins and incorporates within it nine other subindexes. Visitors to the Web site can find 12-month highs and lows, as well as 1-, 3- and 10-year charts for each.

The daily price guide is among the recent moves by coin experts to quantify their passion and to transform coin collecting into a liquid investment with easily identifiable objective values. And as the turbulent stock market has encouraged investors to take a new look at more tangible assets, there is some evidence that those efforts have had some effect.

Under a widely used grading system, coins are assigned a point score between 1, the worst, and 70, the best, depending on variables like luster, scratches and other marks.

Grading and daily price guides have "certainly made the coin market more liquid, just like organized stock exchanges made equities more liquid," said Dalton L. Chandler, an analyst at Needham & Company, an investment firm based in New York.

Over the last few years, some investors have shifted money from the stock market into coin collections. "They have good rates of return — not as good as when we were riding the Internet bubble, but the coin market hasn't burst," said Arnold-Peter C. Weiss, a surgeon in Providence, R.I., who has played both markets.

Dr. Weiss said he had taken "a big hit" on a few dot-com investments. But he has done well, on paper, at least, in coin investments. In 1998, he bought a type of ancient Greek silver coin, minted by the city-state of Megalopolis and featuring the head of Zeus, for $60,000. It fetched about $200,000 last year at an auction at Bank Leu in Zurich, Dr. Weiss said.

In July, the only known 1933 American double eagle, a $20 gold coin, was auctioned in New York for $7.59 million, a record price for a coin.

Coin experts say interest has been stimulated by the "state quarters" program of the United States Mint. Every 10 weeks, the mint issues quarters celebrating one of the 50 states, in the order that they joined the union. The program began in 1999 and is to run to 2008. The releases this year are for Tennessee, Ohio, Louisiana, Indiana, and Mississippi.

Scott A. Travers, a Manhattan coin dealer and author, said questionable grading services have surfaced on eBay and have "fooled consumers into paying higher prices." Kevin Pursglove, an eBay spokesman, said eBay is aware of the complaints. He said that the company provides links from its Web site to the Professional Coin Grading and Numismatic Guaranty sites, but that it is "up to buyers and sellers to determine what services they use."

Serious coin collectors and investors should buy only coins graded by Professional Coin Grading or Numismatic Guaranty, Mr. Travers said.

SOURCE: http://www.nytimes.com


Two-tiered coin market in place, CDN NEWSLETTER
October 18, 2002

The market for rare coins has had, and continues to have a super year. However, even in a bull market there are areas that either lag behind or aren't doing as well as others.

According to one astute dealer from the Midwest, "a two-tier market definitely exists" today. On the one hand, there are many rare coins available that are considered ugly or just so-so. These are the coins that have been appearing regularly at coin shows and auctions with little fanfare.

As a result, the prices realized at auction or at shows for these types of coins are of little consequence. Finding demand for these examples at current levels is extremely difficult. Dealers are aware that this supply of coins is not feeding the strong demand that exists for quality rare coins. This segment of the market seems almost destined for some discounting.

The other side of the market tells a completely different story. Avery strong, vibrant market is in place for pretty, attractive coins. Buyers are pursuing premium quality coins for the grade at each level of preservation. They want coins that have tremendous eye appeal. Coins that are brilliant white are preferred but so too are those that have attractive, original color and surfaces.

Today's demand will buy this quality of coin no matter what its denomination. These buyers are very knowledgeable and able to spend the "big bucks" it takes to successfully own these coins. Dealers tell us that several of their clients have made "good money" on coins - a couple of years ago are enjoying nice gains today. And, they are using these profits to buy more coins.

There are some areas of the market that are especially sought-after. Early Type is doing very well Buyers are in a holding pattern waiting for dealers to provide them with just the right Type coin. Attractive Circ examples are pleasantly received. Uncirculated examples are treasures anxiously anticipated. Other hot areas include Walking Liberty Half Dollars, especially PQ MS64s and MS65s.

SOURCE: Coin Dealer Newsletter - http://www.greysheet.com


Gloom may cause 'double-dip' - CNNfn
Crumbling consumer confidence could tip U.S. economy back into a recession, surveys say. October 28, 2002

NEW YORK (Reuters) - The struggling U.S. economy could slip back into recession if consumers don't start feeling more upbeat soon, the director of a widely-watched consumer research report said on Monday.

Nearly six in 10 Americans rated the economy as poor in October, more than during last year's recession, a separate CNN/USA Today/Gallup poll said, despite optimism for better days next year. That gloom could soon drag on a recovery being driven almost entirely by consumer spending.

"Unless the downward momentum is quickly halted, the accumulated loss in consumer confidence could tip the economy back into recession," said Richard Curtin, director of the University of Michigan's Consumer Research Center.

Many analysts are concerned the risks for a pullback in spending are climbing right ahead of the crucial holiday retail season. Most retailers book about a quarter of their sales during the November-December holiday season and some book the bulk of their profits during that period.

"The holiday shopping season will be challenging for both consumers and retailers," the University of Michigan said in its October report. Added Curtin: "Consumer spending will depend on getting even larger discounts, and profits will depend on making even larger cost cuts."

SOURCE: http://www.cnnfn.com


Mortgage lenders grow wary in some areas
By Thomas A. Fogarty, USA TODAY, Oct. 29, 2002

Signaling industry concern about the longevity of the housing boom, some big mortgage companies are tightening credit in overheated local markets to hedge against possible losses.

Mortgage giant Washington Mutual is "monitoring closely a limited number of higher-risk markets and has adjusted loan terms," Chief Financial Officer William Longbrake told analysts.

Likewise, executives at National City have told analysts they're building reserves and tightening credit. CEO David Daberko told trade newspaper American Banker that the Cleveland-based lender is taking "a cautionary view" of the economy.

The acknowledgments also reflect an intensifying debate about when and how the seven-year bull market in housing will come to an end.

"Somehow, there's going to have to be some air let out of it," says real estate tracker Bradley Inman, owner of Inman News Features. Inman says the only question is whether the end is "a slow glide to Earth or a major crash."

SOURCE: http://www.usatoday.com


COMMENTARY ...

RESTORING THE STANDARD - Craig Smith, CEO SATC
Nov. 1, 2002 (All Saints Day)

The time has come to restore the standard of greatness in America from the bottom up. Isn't it interesting that we are being told daily that we need a revival of ethics in the financial community, but there is hardly a mention of the historic role that gold and silver coins have played in keeping our money system honest?

At this juncture, most of the western world could care less about gold because we have been convinced that man can control his own destiny. Life has been so great in the U.S. and most of the western world over the past 60 years that we have given ourselves the credit for our prosperity rather than giving God the credit. This is the type of moral/economic decline that leads to depressions and ultimately destruction.

In contrast, Muslims acknowledge man's true need to live by a higher order. The gold Dinar project has taken on added significance since 9/11, with some Islamic countries seeing it as a firewall against "an inherently unstable and ultimately unjust global monetary system", according to Nor Mohammed. The Koran has explicit injunctions against usury of any form and prohibits "infidels" from managing "Muslim" money.

Wouldn't it be a tragedy if America, a nation that founded it's monetary system and "dollar" upon a gold and silver standard -- that was based on our national holy book (the Bible) -- were to be brought to our knees by a new gold/silver based currency (the Dinar) launched from a tiny country in the Middle East like Malaysia?

"A false balance is abomination to the Lord: but a just weight is His delight," according to Proverbs 11:1. For 6,000 years gold and silver have served as an honest, non-corruptable money system. Usury and interest are not only forbidden in the Koran, but also in both the Bible and the U.S. Constitution. My, how far we've fallen thanks to our "modern" economic theory, which presumes to violate clear economic laws in favor of the promise of perpetual prosperity from government and FED leadership.

It's something for every God-fearing American to think about, which is why I included all of America's original founding documents in my book, Rediscovering Gold in the 21st Century. I suggest reading them over ... again!

So far in 2002, gold has outperformed almost every other asset class, such as stocks, bonds, CDs and mutual funds. September 11, 2001 changed the economic landscape dramatically yet some financial "experts" have yet not changed their recommendations to include tangible assets, like gold and silver coins.

Building a financial portfolio that is able to withstand the storms of life is not easy, but it can be done. It seems every financial advisor has a little different perspective on which assets offer the best return and safety, but wise counselors now recommend gold as a portfolio hedge.

For over twenty years, we've encouraged clients to diversify a small portion of their assets into U.S. gold coins for three reasons:

1. Safety
2. Privacy
3. Profit Potential ... in that order.

Gold coins represent timeless value. Tens of thousands of Swiss America clients have listened to us over the years. I invite you to read what my clients have to say about their Swiss America experience.

Swiss America would like to help you make sure that your 'investment pyramid' is secured with a gold foundation so we need honest answers to the following three important questions ...

1. How long Do you plan to hold your investment?
2. What level of return do you hope to achieve?
3. What degree of risk are you prepared to accept?

Based on your personal choices, you should adjust your portfolio to fit your goals. Swiss America offers a two- way liquid market in all U.S. gold and silver coins and bullion-related products.

The best way to determine the percentage of your portfolio that should be allocated to tangible assets is to discuss your goals with a Swiss America broker by calling toll-free: 1-800-289-2646.

While it is true that INDIVIDUALLY we can only have a small effect upon reforming our national economic and legal system, there is something we can do to protect ourselves financially -- by putting ourselves BACK on a gold standard with personal assets. In doing so, we are doing our part to help restore the standard of greatness in America ...one person at a time. -CRS

Read more from Craig Smith in THE NEW GOLD RUSH ...


THE ANTI-GOLD CROWD'S SECRET - Richard Russell, DTL
Dow Theory Letters, Oct. 23, 2002

GOLD - I'm going to start this letter with two very important charts. The first is a point & figure chart of gold going back to 1999.

What I want to point to is this huge "head-and-shoulders" bottom formation. This is not just any old formation; it's a HUGE formation.

As I see it, this is a picture of accumulation. It's a picture of patience, of watchful waiting. At what point would this chart turn clearly bullish? It would turn bullish if or when gold breaks out above 330.

When might that happen? Frankly, I don't know nor does anyone else know. But the accumulation is there; the base formation is there. The chart is "telling us" that somewhere ahead gold is going to move up and break out above 330. In the meantime, it's accumulation time for gold and gold shares.

GOLD AND THE S&P - Here's the secret that the anti-gold crowd doesn't want you to know about. It's a monthly chart showing gold divided by the S&P. In September 2000 this ratio turned up in favor of gold. In August 2001 the ratio broke up above its 50-month moving average. The chart is telling us that gold, the metal, has outperformed stocks (the S&P) for the last two years. And as you can see on the chart, this situation is accelerating.

SOURCE: Dow Theory Letters, 10/23/02


LOOKING OUT FOR THE TRIGGER - Roger Arnold, MyHomeLender
10/30/02

With the consumer beginning to give way in the US and the debt overhang in the US, Japan and Germany most traders and analysts are concerned and looking out for the "trigger" that will begin the rapid downward cascading of the worlds markets; both equity and debt.

That surprise would probably have to come from the US, Japan or Germany. There are many possible scenarios that could be the catalyst and we have reviewed most of them over the course of the past year.

They would most certainly involve a crisis of confidence leading to US consumer capitulation, unemployment rising, stocks falling, the cost of capital increasing, revenues and earnings falling, debt defaults increasing, cash flow velocity falling, currencies depreciating, gold and silver increasing, municipal bond defaults increasing.

The probability of something like this occurring is increasing rather than decreasing as the world economies continue to slow and the problems, primarily in the worlds capital markets, are not being adequately addressed by governments and central banks.

The next question is how bad will it get?

The US has elections coming up that will be pivotal in determining the fiscal response to the economy in the US. If the democrats successfully take both houses of congress and either stop the tax cuts or worse force taxes up while government spending is also increasing the stage could be set for a 1930's style depression.

The only proper response economically anywhere in the world to the current geo-synchronous slow down is massive tax cuts world wide. All other debates over monetary and fiscal policy initiatives are secondary.

Without across the board federal tax cuts into this slow down the downside will be much worse and there is no upside.

SOURCE: http://www.myhomelender.com


THE GOLD DINAR: A NUCLEAR WILD CARD - Jim Sinclair, Tanrange
October 28, 2002

The planned introduction of the Gold Dinar is not an act of revenge by Malaysia. It is true that there was a huge and devastating currency raid a few years ago by a famous US trader, who leveled Asian monetary units and caused the major Asian economies to falter. It is true that some of those economies have not fully recovered. However, it is also true that history may point to this currency raid and raider as the germination of the seed for the uniting factor of Islamic economic power that changed the economic and monetary world.

I am however starting to think that the plan for the Gold Dinar and support from other Islamic nations is a planned offensive against the use of the dollar as a settlement currency for oil. It is perceived, and correctly so, that the Islamic world is controlled via the use of the US dollar as the main settlement currency. When I say "controlled" I mean whatever happens economically in the USA is exported there via the dollar. Dollars exchanged for the Gold Dinar currency as a measure for gold settlements quarterly or gold convertible to pay for certain oil imports would end all the debate of whether or not gold has a place in the monetary system.

What we are hearing now is that the Gold Dinar will be used as a "measure" settled quarterly in gold on an Islamic intra- nation basis, but that could change quickly. A review of the trade balances of Malaysia and its intra-Islamic trade partners indicates that if the Gold Dinar is employed as now suggested, it would tie up approximately 200 tonnes of gold production equal to 10% of new mine supply. If Malaysia went all the way and went to convertibility with a 15% gold cover, they would utilize more than 300 tonnes of new production. Either way, this is the Wildest of Wild Cards for Gold.

The advent of the Gold Dinar, as now envisioned, would remove any discussion of whether or not we are embarking on a very long-term bull market in gold. I have already told you that I believe this is not just a gold recovery, not just a gold bull phase, not just a gold bull market, but the advent of the return of gold to a monetary application in which gold will be in a bullish posture on balance for the rest of my life. I expect to live until at least 2030.

Few Islamic nations have affinity with Hussein, but fewer like the idea of the US attacking Iraq, an Islamic country. For what it is worth, I am told there is a significant possibility that when the US attacks Iraq, the united Islamic salvo back will be at the US dollar via the Gold Dinar -- not as a measure, but rather as a convertible currency. Confidence that the Saudis will come to the rescue of the dollar stands on thin ice. The Saudi Royal Family is under significant pressure from the fundamentalist influence there. They are less likely than most observers think to rescue the dollar this time. The Gold Dinar is the major wild card in the entire history of gold. It must be monitored very closely.

TRANSLATED FROM THE "AL-FATH AL-'ALI AL-MALIKI" PP. 164-165

"This Fatwa considers paper-money to be fulus, because it only represents money and does not have value as merchandise. It follows that since Zakat cannot be paid in fulus, which has no value as merchandise, it cannot be paid in paper-money, which value as weight of paper is null. On this basis, it becomes clear the urgent need to restore the use of the Dinar and the Dirham as payment of Zakat. If the millions of Muslims who now make their payment of Zakat in paper money would do it in newly minted Dinars and Dirham's, they will put in circulation millions of gold and silver coins into the mainstream of daily commercial activities of our communities. That single act will became the most important political act of the century, opening the path towards the establishment our own halal free currency breaking away from the usurious financial system. The return to the payment of zakat in gold and silver is an essential part of the reestablishment of Islam."

Those are serious words and should not be taken lightly. You see, the establishment of a gold-based currency is rebellion against the IMF as it is distinctly forbidden under IMF rules. The advent of the Gold Dinar would be the "Nadir" of the IMF & World Bank.

These are uncharted times. I believe that the Islamic Nations are quite serious about this and that in some form, it will happen on schedule or sooner. Now we can add a "Nuclear Wild Card," an independent gold-based Islamic currency to the 5 elements for a long-term bull market in gold.

4 of the 5 elements for a long-term bull market in gold are in. The 5th element may well be here as well. Now the Wild Card has raised it's head. Where is the greatest risk in gold now?

In my opinion, the short side of gold has infinite risk. The long side of gold has significant fundamental support.

SOURCE: http://www.tanrange.com


48 MYTHS ABOUT GOLD - Jason Hommel, Gold-Eagle.com
Oct. 28, 2002

False ideas about gold have been systematically put forth, as propaganda in America, through the schools & universities, newspapers & TV for generations. These false ideas are deeply rooted in the minds of many people, having become a part of popular world-view of American culture, which is why I call them myths.

Only a few people see through the myths to recognize self- evident truths easily. Others need more help, which is the purpose of this list. Most people will only begin to wake up to reality when they see the price of gold move far higher than they thought possible, and they start struggling to understand what is going on.

I have been working on this list off and on since the spring of 1999, but never published until now, October 2002.

1. I CAN'T AFFORD THE RISK OF INVESTING IN GOLD:

Wrong. The real risk is in not having any gold. If you do not own gold, you have put 100% of your portfolio at risk to go to zero. Every investment is a risk. The value of cash can go to zero with runaway inflation. The value of stocks can go to zero after bankruptcy. The value of land can go nearly to zero in a depression when there are no buyers, and you have no ability to pay an assessed property tax, and the government puts the property up for auction to pay the tax.

Today, in the fall of 2002, the United States is experiencing large trade deficits, which is putting very strong pressure on the dollar to devalue about 30%, or more. So there is a huge risk for holding cash or bonds. The truth is that gold and silver are the very safest investments you can own.

2. U.S. TREASURY BONDS ARE THE SAFEST INVESTMENTS IN THE WORLD, MY BROKER TOLD ME SO:

Wrong. Your broker does not work for you; brokers work for investment banks. The banks are partners with the government, and the government has bonds to sell. Bonds have a risk that gold does not have. Bonds can drastically swing down to zero value in two different ways, either due to inflation or default. Gold represents "payment in full," cannot default, will never be inflated away, and will always be worth something substantial.

The U.S. has actually defaulted on its monetary obligations numerous times in history. In the revolutionary war, money to pay the soldiers was printed up that became worthless. In the civil war, greenbacks were printed up that became worthless. The Fed defaulted on the dollar in 1933 and later in 1971.

And even if U.S. Treasury Bonds are paid off by printing more paper money, who is to say that the paper dollar of the future will have any value at all?

U.S. Treasury Bonds are a con game that has two purposes. First, bonds enslave the government to the ones who issue the debt, because the borrower is the servant to the lender. Second, by offering bonds to the public, bond purchases help to siphon money away from people in the economy who would otherwise have no other option but to either save their money, or to invest directly into the economy which would allow them to prosper and accumulate wealth.

3. THE ONLY REASON GOLD MIGHT GO UP IN VALUE IS A POTENTIAL WAR IN THE MIDDLE EAST.

Wrong. Gold must go up for a long list of fundamental, long term, systemic reasons related to supply and demand factors. The media falsely claims that war, or short term political tensions, are the only reason gold "might" go up because most political worries are temporary. For the most part, political worries or rumors of war are distractions from the real risks, which are pervasive, systemic, and long-term.

Read the other 45 Myths at the link below. SOURCE: Goldismoney


UNLOCKING THE MYSTERIES OF CREATION, PT. II - Book Review
by David Bradshaw, My Idea Factory

You are about to experience an awesome journey of discovery. This treasury of historic and scientific knowledge puts life- changing keys in your hands to understand our world, and its amazing past.

Page after fascinating page colorfully unfolds before your eyes as you tour creation with the insight of the Bible as your guide. Expose and dismantle evolutionary deceptions that have distorted our generation’s view of the seen world. The skepticism and unbelief, sown by those who disregard the divine authorship of the Bible, are refreshingly overturned through this God-honoring “mini-encyclopedia” of the Creator’s insight.

By “considering the work of His hands,” parents and children encounter a vast wealth of evidences that confirm a confident faith in the Genesis account of creation.

Every student in every school will be challenged to "THINK!" as they are guided by these insightful and lavishly illustrated chapters to “reason together” with God’s Word.

Evolutionary myths are exposed and a rich Biblical foundation is laid as you explore mountains, planets, fossils, strange animals, dinosaurs, and the astonishing world of ancient civilizations. This volume is designed to be used as basic curriculum of Christian home-school families.

If you know anyone who might be intimidated or bullied by evolutionist/atheist reasoning this colorful book will arm them to be better equipped with intelligent, simplified and reasonable answers that most college educated professors haven't even heard.

When God was taken out of science and history studies, those subjects became boring for many students. This book puts God’s power and awesome orchestration into the equation and suddenly science and history come alive!

PART ONE - In the beginning... Science and the Bible agree! The earth was once very different and "very good!" When did it all begin? Surprising facts from the cosmos and the earth unveil the truth about our planet's age.

PART TWO - True science dares to put the big bang and medieval thinking to the test. From woodpeckers to whales, fossils to philosophers. Evolution is seen for the deception it really is.

PART THREE - Has the Missing Link been found? Discover amazing mysteries and myths about dinosaurs: What were they like? Why are they gone?

PART FOUR - How do we make sense of all the mysteries of ancient civilizations? Awesome advancements before the flood. Pyramids, UFOs and ancient technology all make sense in light of the Biblical record.

CONCLUSION

Unlocking the Mysteries of Creation will help you;
-Discover the scientific accuracy of the Biblical Creation account.
-Unveil the fundamental fallacies of evolutionistic myth.
-Build unshakable confidence in the reality and power of God's Word.

This book is a gift from above for every earnest truth seeker. The author has done the human race a great service in combining excellent content with spectacular imagery.

This work is sure to become a classic for parents, grand- parents, home schoolers, public schoolers ... in short -- everyone! I recommend placing your order for at least one copy today of either the hardback book ($32.95) or the CD rom ($19.95). While supplies last, I will include a copy of The Big Picture with your order at no charge. email your order to me.

If you decide to order multiple copies, let me know and you may qualify for a quantity discount.

P.S. Still not sure? Read the full book review here

P.P.S. Here is an assortment of pages from the book


ABOUT THE EDITOR
David Bradshaw is the editor of Swiss America's Market News Digest and Real Money Perspectives. He is the founder of Idea Factory Press... publisher of Rediscovering Gold in the 21st Century and The Big Picture. Contact at ideaman@swissamerica.com






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