Nevertheless Mexico's economy is booming ( and is now referenced as a safe haven for emerging markets {check Pointcast} while British Columbia's is the slowest growing in Canada. So much for quality being a precursor for a healthy economy.

its growing gold eagle sales?

Anyway, my post was to John K ( Worldview ) , or to anyone who can answer this question:

Hashimoto now plans to use the $2.8trillion public postal fund to bail out the insolvent Japanese banks. Just how are these assets allocated? Stocks, bonds, real estate, cash, etc? This money will not be of much value if it is invested in the bankrupt banks, will it? Are non-cash assets to be liquidated?

I wonder, in a similar situation, would our US of A do the same with our retirement accounts -- ie 401ks, 403bs, etc?

Your posts regarding juniors etc . I generally agree with the thesis, however remain concerned with the bigger picture of au going south,cb's response, euros et al. Currently long on the juniors and one inparticular looks to have some promise. Have you reviewed MNP -V it is a Canadian mining venture . Madison Enterprises Corp has good management and an active Board.They are well financed and have earned 65% of the Mt. Kare property in Papua New Guinea contigous to Placers pogera property. Initial drill results look good ( maybe 1.7million tons ) next release should be about 80 holes ( dec? ) independent assays with blinds , metalurgy is complex like pogera's. Placer is supposed to be interested because of it's proximity. I have 3or 4 more others that could be discused if there is any interest...any comments? regards

rate of inflation in order to minimize the macroeconomic risks following from lower equity prices,

wider corporate bond yield spreads, and more volatile exchange rates. Too much of an export-led

recovery for Japan does not seem compatible with long-term stability for the world economy. For

the third-quarter of 1997, Japan's current account surplus swelled by 67% year-over-year. In view

of the slowdown now about to strike many of Japan's Asian export customers, Japan will have a

strong incentive to increase sales to the US and Europe. In view of Japan's already existing trade

frictions with these regions, Japan might be more open to accepting internal reforms that would

promote domestic spending in its own economy on goods and services produced both at home and

abroad.

http://lp-llc.com/cents/lonski.shtml

aggregates is one factor in one's thinking about where the economy and inflation are going. Though

difficult to read, strong money growth numbers certainly go in the same direction as strong growth

and upside inflation risks. Of credit conditions, he said, Generous may be too strong a term, but it's

certainly not restrictive in any way, and I think that's one area that bears watching.

All the money measures are running strong, said another well-placed Fed official, adding, It's

one of the many things we look at.

An administration official, meanwhile, observed that the official position is that the impact of the

Asian crisis will be modest, but added, I've got a feeling we could be underestimating the effects.

The official said the Asian crisis is potentially more serious than the Mexican peso crisis, because

there are quite a lot of weak links in the chain. The official further said the U.S. stock market still

looks overvalued so that there is a lot of potential for a big stock market correction.

http://www.economeister.com/curracct/971119ca/usfed_ma.htm

[TOPICS: MNSFED]

Japan's economy, Prime Minister Ryutaro Hashimoto admitted

yesterday that his government must finally bite the bullet and use

public funds to bail the nation's banking system out of its difficulties.

These measures are expected to be announced on Dec 10 and to

include a provision for a new publicly-funded agency that will buy

preference stocks in Japanese banks to boost their depleted capital.

Mr Mitsuzuka again stressed yesterday the government's determination

not to reverse its fiscal stance. But it now appears certain that the

government will employ funds from Japan's 220 trillion yen ( S$2.8

trillion ) postal savings system as a means both to rescue the banking

system and also to apply some further stimulus to the economy by

what is in effect a backdoor method.

http://www.asia1.com.sg/biztimes/3/focus21.html

I am honored that you think that I, who consistently does poorly at foreign languages could pull off the stunt that you describe.

If ANOTHER is not who he/she claims to be, then that person must be a master story teller.

C'mon JTF...fess up!

away...to be suspicious

ÉßprivateEYE

South Korea reveals financial bailout plan

SEOUL, South Korea ( AP ) - Struggling to stop its once-mighty economy

from sliding into chaos, South Korea fired its economy minister Wednesday

and said it will ease currency controls, borrow dollars abroad and clean up

debt-ridden banks.

Whether the emergency measures will regain the confidence of foreign

investors could determine whether South Korea becomes the next Asian

victim of financial freefalls - with far larger ramifications.

Initial reactions from analysts were less than enthusiastic. They said the

measures were not drastic enough and came too late, and that the country

will need a bailout from the International Monetary Fund.

South Korea's meteoric ascent out of the poverty and economic chaos of

the Korean War era gave rise to the world's 11th-largest economy.

There is a possibility that the government will ask for IMF loans.

Foreign investors have been bailing out of the South Korean stock market

and converting their holdings to U.S. dollars. But local investors pushed the

benchmark Korea Composite Stock Price Index up slightly at the close

Wednesday on expectations the new measures would invigorate the

economy.

http://canoe2.canoe.ca/BizTicker/CANOE-wire.SKorea-Economy.html

His/her posts are engaging simply because they are so different from what we are accustomed. I am fascinated even when I don't learn anything.

It is unfortunate that we do not have responses from other Kitcoites that have the same cultural background.

btw, ALL - My ( yet to be famous ) Éß:JO/GOLD Similarity Chart© is holding up well...I guess you know what this means for the mighty-mellow-Yellow.........ugh.............oh no!..............ugh...........

and Savage - chaeck it out for yourself. Optionvue is a Great program for the price. If you hurry you can get a good price break. Here is the sight http://www.optionvue.com/ download a demo http://www.optionvue.com/demoinfo.htm

away...to the MARK

Éßtryingtobesubtlebuythedipsnowormiss

¿irvine-boy?

Thiessen sends signal about higher interest rates

OTTAWA ( CP ) - Canadians can expect short-term interest rates to start rising soon, the governor of the Bank of Canada said today.

Gordon Thiessen told a news conference the excess capacity or slack that has been keeping inflation low will likely run out at the end of 1998. And that means the bank must start moving away from stimulative monetary policy to ensure Canada stays within an inflation target of between one and three per cent.

The bank continues to forecast average annual growth of four per cent through the balance of this year and next and Thiessen said unemployment will be coming down. But he couldn't say when.

In the meantime, the bank will face the challenge of setting policy so that the economy will continue to grow at full potential while keeping inflation low, Thiessen said.

Preserving low inflation is a prerequisite for making the economic expansion a long-lasting one, he said. It is by prolonging the expansion that we are going to achieve sustained reductions in unemployment.

That will mean a gradual moderation over the medium term in what the bank believes has been a high degree of stimulation in the money supply through low interest rates, Thiessen added.

I believe this new system will work. Thanks, Bart, for sticking with it and trying to cut down on the extraneous posters.

In Cormier’s report “Silver stocks, there ain't too many!” -posted at GOLD-EAGLE, he recommended six silver stocks with outstanding potential - albeit within a precious metals bear market. Let’s capsulate here how these stocks have performed since their mid-year lows:

Pan American Silver ( PAA ) ........UP 53%

Silver Standard ( SSO ) ...............UP 57%

International Avino ( ASM ) ........UP 50%

First Silver Reserve ( FSR ) ..........UP 86%

United Keno Hills ( UKH ) ..........UP 11%

Clifton Mining ( CFB ) ................Down 4%

That’s an average 42% Silver portfolio gain during the last five months - while gold have been miserably dribbling downwards!!

KUDOS & ACCOLADES for an Analyst Par Excellence: Claude Cormier

Please be aware that if you CLICK on the silver stock symbol in his report “Silver stocks, there ain't too many!” - the curent daily price chart pops up.

You may read his entire mid-year SILVER FORECAST at:

http://www.gold-eagle.com/gold_digest/goldbug613.html

We have all recently learned the Rothschilds & Soros have been covertly buying up silver properties via a company going public very soon. And today our own RJ reiterates his bullish outlook for the ‘Poor Man’s Gold’ -- SILVER. However, we must should due reverence to Claude Cormier, who first shared his considerable insights with us about silver in his mid-year “Goldbug’s Weekly Comment.”

In Cormier’s report Silver stocks, there ain't too many! - posted at GOLD-EAGLE, he recommended six silver stocks with outstanding potential - albeit within a precious metals bear market. Let’s capsulate here how these stocks have performed since their mid-year lows:

Pan American Silver ( PAA ) ........UP 53%

Silver Standard ( SSO ) ............UP 57%

International Avino ( ASM ) ........UP 50%

First Silver Reserve ( FSR ) .......UP 86%

United Keno Hills ( UKH ) ..........UP 11%

Clifton Mining ( CFB ) .............Down 4%

That’s an average 42% Silver portfolio gain during the last five months - while gold have been miserably dribbling downwards!!

KUDOS & ACCOLADES for an Analyst Par Excellence: Claude Cormier

Please be aware that if you CLICK on the silver stock symbol in his report Silver stocks, there ain't too many! - the curent daily price chart pops up.

You may read his entire mid-year SILVER FORECAST at:

http://www.gold-eagle.com/gold_digest/goldbug613.html

Re UPTURN OF THE DOLLAR

Has anybody read Robert Tkoch's Current predictions [Post 03:07 19th Nov] ?

His predictions [ Aug and Sep 97] were originally given to us by you, Nick@A? He seems to have been spot on, doesn't he?

I'd be interested to learn a bit more about Long and Short Term investing..Timing would seem a little dicey for a beginner?

Though he speaks of Currencies [US$ & Deutsche Mark], I see in his post that he asked how the Kitcoites would apply his 'currency' advice to the Gold Market.

Would this apply only to Gold SHARES? What about bullion?

And what about those mines that 'hedge' ?

Could someone please comment on this?

Thanks in advance.

I find the business about England being behind a variety of terrorist activities hard to believe, without substantiation. However, there may be powerful groups in England who have traditionally used terrorist organizations for their own personal gain ( separate from the elected government ) , just as it seems that factions within the US government are suspected of doing the same thing. One problem about having a concentration of power of any kind - including intelligence - is that it can be corrupted.

I no longer ignore what Lyndon Larouch says, although I do substatiate what he says from other sources before I take it seriously.

LaRouche was just beginning to talk about the disaster going in

Brazil, to the South of our border here.

LYNDON LAROUCHE: Well, people who've been following

Executive Intelligence Review magazine during the past couple of

months, are aware of the fact, that the financial crises in Mexico,

and in South America, like those which are occurring in the Far East

-- in Southeast Asia and in Japan -- are actually organized out of the

British Commonwealth, centered in London.

Brazil: Another Bottomless Blowup of Our Systemic Crisis

That is, if you look at the financial institutions and agencies, such as

George Soros, which are running these operations, which are

resulting in triggering this depression, you will find that 80 to 90

percent of all of the forces involved, are British. So, this is a British

operation.

Brazil is exemplary of that. There is virtually nothing in Brazil of any

significance, behind the Brazilian crisis, which is not British -- and

that includes George Soros.

The Brazil crisis, on the surface, has no bottom. Brazil is a large

nation; it's the largest nation outside the United States, in the

Western Hemisphere, as an economy. It is absolutely -- except,

unless you have a military coup d'etat, which establishes some

degree of sovereignty over the country -- there is no bottom to the

Brazil crisis.

Now, the Brazil crisis will hit while the impact of the crises in

Southeast Asia, Taiwan, Japan, Korea, are hitting with the utmost

force. While we're looking at the conference now going on in the

Philippines, in Manila, which is trying to pick up the pieces from the

crisis so far, which will not work. Nothing good will come out of

Manila. This thing is, there'll be a number of nations which will say

good things, but there will be no good decision coming out of

Manila. There'll be a catastrophe -- leading to a worse crisis, in the

weeks following the conference in the Philippines.

In the meantime, we're going to have a blowup in Brazil, which is

going to blow up here. Which means that, in a very short order,

you're going to have waves of crisis hitting the U.S. markets, based

on the combined impact of the Asian, and South American, crises.

You could have a new Mexico crisis very easily, in this context.

In the meantime, all of Eastern Europe is blowing up, including the

former Soviet Union. There's a crisis in Russia, which is major. And

which can hit the European markets hard and fast. The bonds which

are issued by these cities within Russia, these city bonds, these can

go into a chain-reaction effect. And under present conditions, with

the other things going on, Europe can be hit.

In other words, we can, before Christmas, we can find a big hole,

and nothing much more, in the Christmas stocking -- that's the way

it's going. And the developments in Brazil are one of the big bombs,

the big detonators, which can blow out the U.S. financial market.

EIR: You've said that the only solution for the crisis, is that your

policies control the actions of the U.S. government -- and actually,

not just even your policies, but that in a crisis which develops from

minute to minute, from hour to hour, you actually have to have

hands-on control of the economic-financial actions of the U.S.

government. But how can you, as a private citizen, the head of a

small organization, not even an official of any major corporation,

how can you hope to determine the financial policies of the United

States government?

The History of Mankind Is the History of Ideas; In Such

Periods, Ideas Prevail.

LYNDON LAROUCHE: Well, you know, it's a funny thing --

history. If you look at the course of history, you find that the history

of mankind is the history of ideas. That, between revolutions, which

are based on ideas, that governments dominate, other institutions

dominate. But, whenever you come to a crisis, in the history of

mankind -- like the fall of empires, and we're in that kind of period

now -- you find that suddenly governments which seemed

all-powerful, suddenly crumble. Empires crumble. Financial

institutions which have seemed all-powerful, crumble, go bankrupt,

and disappear. Leave the empty windows staring out at you, where

there was once this bank you thought was invincible.

In such periods, ideas prevail.

The important thing to be in history, the only thing to be, is a person

of ideas. That is, real ideas, not funny gimmicks, but solid ideas,

based on study of science, art, and history, and things of that sort.

Now, you just ask yourself, how did this crisis happen? Well, some

people said it was inevitable. Maybe somebody on Mars did it, or

Venus, or some flying saucer people may have done it, some people

will say.

And you say, how did this crisis really happen? This crisis happened

to a civilization which was going along quite successfully, with all its

shortcomings, until about 30 years ago, when some terrible mistakes

were made, in changes in direction of policy.

Now, these mistakes didn't happen accidentally. They happened

because the society had certain cultural weaknesses in it, which

made it susceptible to these mistakes. But the past 30 years, except

for what we did in the civil rights efforts, in the middle of the 1960s,

I can say fairly, that every change in policy, which we in the United

States, and most other countries, have made, during the past 30

years, has been one succession of one catastrophic mistake after

another.

Who made these mistakes? Well, the mistakes were obviously made

by people with a great deal of influence.

Who were those people?

Well, these were the big foundations, such as the Ford Foundation,

that's part of it. Other institutions which are less famous than the

Ford Foundation. These mistakes were made because people who

were elected to government, or people who were in government, as

appointed or civil service officials, agreed to make these decisions, or

a majority of them.

The same thing is true in other countries. How do these mistakes

occur? The parties, the institutions, the governments, the powerful

institutions of the private sector -- these are the people who pushed

the policies, which led to the catastrophe.

So, all of these institutions, whether government or private, are now

useless. Because they are the people who made the catastrophe

which is now hitting us. Do you expect from these sources, the

ideas, the proposals, which are going to get us out of the mess? Of

course not. What you're going to get is more intelligent people, in

leading institutions, such as government, will turn to people outside

of government, who have not been making these mistakes -- and

turning to them, and saying, ``What do you got to say? We admit

we're bankrupt. We don't know what to do. We are presiding over a

catastrophe, which we made. Tell us, what to do. Tell us how to

correct our errors.''

And they will have to turn to people outside the mainstream. That's

how governments survive ... if they do survive, is by correcting their

errors in that way.

Why Global Warming Is a Scientific Fraud

EIR: Thank you. Next month, in December, in Kyoto, Japan, there's

going to be a world summit, a so-called world summit, on Climate

Change. Now, the 21st Century Science Associates, with which

you're associated, has just issued a 100 page special report, ``The

Coming Ice Age: Why Global Warming is a Scientific Fraud.'' Could

you tell us about this, please?

LYNDON LAROUCHE: Well, there are several problems here.

One, you have people who are stubbornly, but in a sense, honestly,

mistaken. But then you have people who are dishonestly mistaken.

The leadership of the ecologist movement is a bunch of deliberate

hoaxsters, and I wouldn't give you two cents for their integrity or

honesty.

That virtually everything we've adopted, since 1970, in the way of

so-called environmentalist rulings, and policies, has been based on an

outright fraud, and that's completely provable.

But then you get into another problem. Let's take the case of the El

Nino. The El Nino is a natural phenomenon. Let me explain

summarily some of the points. Not to go into too much detail, but

just to give a picture of it.

You have a broad stretch of water, from the islands of the

Archipelago in Southeast Asia, such as Indonesia, and so forth,

across the Pacific, along the line of the Equator, toward South

America. Eh? Toward Ecuador, and Peru. This is obviously the part

of the world's oceans, which has the greatest concentration of heat

from the sun. And the water in this area will be very hot, except for

two types of currents: one are the Coriolis forces currents, which is

the waters of the Northern and South Pacific interchanging

temperature with the equatorial waters; and then you have a second

one, vertical, which is the surface waters, which are heated in the

Pacific, being cooled by the waters from the depths of the Pacific.

If you get, for any reason, you get a disturbance of these two cooling

factors, you get an accumulation of temperature in the line across the

Equator. You'll get a process, then, of this hot belt, moving across

the Equator, toward Peru.

Now, this was called by the Spaniards, El Nino, meaning Christ

Child, because it would tend to hit Peru about Christmas time.

Hmm? A perfectly normal phenomenon. But, this also affects,

naturally, what happens to the atmosphere. What happens in the

oceans is very relevant to what happens to the atmosphere.

Therefore, you will get a tendency -- a split in the Gulf Stream, or

the Jet Stream. And you'll get very sudden, and dramatic, weather

changes as a result of the so-called El Nino effect. What is in

progress is no worse than has happened many times in the past,

although some people have tried to build it up, and associate it with

Global Warming.

The problem is, that the weather people tend to ignore

considerations which are beyond their spectrum. And therefore they

will come to improper conclusions, because of factors in determining

weather, which are outside the normal climate kind of stuff that they

consider, statistical kinds of things they look, and therefore they will

make honest mistakes.

A similar thing is, that up until recent time, everybody in the business

who was a scientist, knew that the determinants of long-term heating

and cooling in the planet, had a great deal to do with two things.

We're talking about 10,000-year cycles, and 100,000-year cycles. Or

double 10,000-year cycles, and double 100,000-year cycles.

The Astrophysical Determination of Ice Ages

For example, and these are mostly have to do with the Sun, and

certain precessive changes in the characteristic of the elliptic orbit of

the Earth around the Sun. That is, the way in which the Earth is

positioned with the Sun, relative to the seasons, changes. And you

get periodic ice ages, which we've had for about 2 million years in

the Northern Hemisphere. We are now in a cooling period. And all

these guys, who are talking about global warming, are idiots.

For example. If you had a lot more carbon dioxide. All right, the

idiots will say, that means you're going to have the greenhouse

effect, and you're going to have hot atmosphere on the Earth. Bunk.

If you increase the carbon dioxide content of the atmosphere, you're

going to have two effects. Number one, the plants are going to be

very happy. And when plants are happy, they grow. You have a lot

of heat around? The plants love heat, and they love carbon dioxide.

If you have a hot house, a greenhouse you're running, you know.

heat and carbon dioxide and these plants are just so happy, and they

grow so lushly. Hmm?

So, what happens then, is you get also much more rain. The Earth

becomes ... deserts begin to bloom, because of more rain. You have

also an increase of the amount of moisture on the land, and thus you

have a lowering of the level of the oceans. Also, in the process, as

the process continues, you'll get an ice age.

Now, how's an ice age formed? It does not form on water; it forms

through the deposit of snow on land. Huh? And it builds up and

builds up..

For example. During the height of the Ice Age, the last ice age, the

world's oceans were between 200 and 400 feet in level below the

current levels. So that, if you want to talk about weather, and

cooling, and so forth, you have to take in the larger context of things,

including the Solar System. The biggest determinant of the climate,

and conditions on Earth, is the relationship of the Earth to the Sun,

and things that happen to the Sun! And then, the Sun's effects, and

those changes, and their effects on our climate.

So, people in this area, are nonsense. The question, for example, the

ozone hole -- a complete hoax. First of all, it has nothing to do with

cancer. The part of the spectrum which ozone deals with, has

nothing to do with the part of the spectrum which causes skin

cancer.

Secondly, the ozone hole, to the extent it exists, and there's no such

thing as a simple ozone hole, has been around on this planet for well

over 2 million years. So that, ... Well, I guess we have to wind this

up...

ARMAGEDDON SCENARIO, ATTEMPTING A NEW `CUBA

MISSILES CRISIS'

``EIR Talks,'' transcript of November 18, 1997

[EIR Talks airs each Saturday on satellite at 5 PM Eastern, on G7 transponder 14

91 degrees West, and each Sunday EIR talks is on shortwave WWCR at 5PM

Eastern, 2200 UTC at frequency 5.0707 Mhz. For further details, call

703-777-9451.]

EIR: Welcome to EIR Talks, my name is Tony Papert, I'm standing

in for your regular host, Mel Klenetsky, and Lyndon LaRouche has

joined us one the phone from Germany. Lyn, you have said that the

world is days or weeks already into a countdown toward nuclear

Armageddon in the Middle East. Could you please explain?

LYNDON LAROUCHE: Well, that's from Britain, there is an

orchestration using Israeli puppets to have the Israelis, under either

Netanyahu or people like Ariel Sharon, launch military attacks on a

number of targets in the region, but with the proviso that the Israeli

Government be prepared to use nuclear arsenals to deal with

anybody who resists these Israeli non-nuclear attacks. The obvious

targets are number one, Lebanon, number two, Iraq and Iran ( two

and three ) and number four, Sudan.

The British are orchestrating this in several ways, including the

British operations to have new sanctions put on Iraq, which is a

British Operation. Saddam Hussein is bungling the whole situation --

he doesn't understand what reality is -- but nonetheless the British

are playing him and misguiding him.

Iran is a major target, Sudan is a target. The British have made the

targetting, Israelis have backed it up. Already in the recent period, in

the international press and other circuits, including the coming issue

of Jane's Military, is featuring the threat of nuclear attacks upon

Iraq, Iran, in particular. The discussion of the nuclear arsenal of

Israel, strategic arsenal, being used, is out in the open.

What we have on our hands at present, is the equivalent, in the

Middle East terms, of what happened in 1962 with the Cuban

Missile Crisis. If you compare the present events with that, you say,

wait a minute, they're the same thing.

There were no nuclear missiles actually used in the Missile Crisis,

but the threat of their use, was deadly, and resulted in a fundamental

change in world politics. And, that's what's at stake here. Whether

the Israelis actually use the nuclear weapons or not, is a secondary

question, of course that would open up new dimensions, but the

mere threat of using these weapons, and conducting military

operations under the cover of use, threatened use of these weapons,

is the scenario.

London: Proven and Admitted Harboring Terrorist Operations

Now, my estimate is that, the way you pull this off, if you are a Brit,

you would use terrorists, and remember that out of the thirty

terrorist groups, international terrorist groups, listed by the U.S. State

Department, 26 of them are operated out of London. That is, they

are officially harbored with headquarters in London, or operations in

London, harbored by the British Monarchy openly.

So that most international terrorism that occurs in the world today is

run out of London, with the consent of the British Monarchy. That's

a fact. The British themselves have admitted, that they harbor these

groups. They have stated why they harbor these groups.

So, all you have to do to imagine a sufficiently hard impact of

terrorist groups, coordinated from London, in which the Israelis are

attacked, or Israeli targets, such as embassies, are attacked, in which

a total of about a couple of hundred Israelis are killed. Under those

conditions, Israel will go ape, and Netanyahu, or his successor, such

as Sharon, or some people like that, will immediately get control of

the nuclear arsenal because nobody will resist, their getting control of

the nuclear arsenal, control of it for warfare purposes.

At that point, there will be attacks, including on Iran, Iraq and

possibly also Sudan; Sudan has also been targetted from Israel, for

this attack. All run by Britain. This will put the world in a grip of

terror, and the paradigm will be changed, globally, as it was in 1962.

And the British will have had their way. This is the leading threat

right now, strategic threat.

The White House is in a sense, aware of this, and is trying to handle

it obviously by crisis management methods.-- which will not work.

Unless the Israelis have a coup, in effect, and get these guys out of

there now, to stop this scenario, it will happen. And, unless we

openly stop putting sanctions on Iraq, Sudan and other places. Let's

put the sanctions where they belong.

If twenty-six of the thirty Listed Terrorist Groups are officially

headquartered in London, or harbored there, with the official

admitted approval of the British Monarchy, -- and we have proof of

that -- then WHY are we putting sanctions on other countries for

harboring international terrorism, when 26 out of 30 international

terrorist organizations listed as a menace by the State Department

are all harbored in London?

That's the nature of the issue.

Until we are willing to take on these Israelis, and the Netanyahus and

Sharons, and so forth, and their friends, and take on the British on

this thing, we stand in threat of this terror.

[commercial break]

How Much Can You Get out of Pump-Priming If the Well is

Dry?

EIR: The entire world now is focussed now on Japan's struggle with

the help of the United States, against financial collapse. As you well

know, a large Japanese bank has failed for the first time since the

Second World War, the government of Japan has announced a $63

billion fund to deal with these collapses. I know that you are

uniquely qualified to tell our listeners what is really going on in and

around Japan and what it means.

LYNDON LAROUCHE: As most people know, that with

knowledge of this crisis was coming up on Monday, of this week,

U.S. Treasury Secretary Rubin communicated an outline of U.S.

potential posture of this matter to Japan, in letters, much of which

was leaked to the public. At at certain point, the Ministry of Finance

official responsible, essentially rejected the formal proposal that had

been made by Rubin, which put the whole thing back to ``Go,'' and

so you had Lawrence Summers, who is number two at the Treasury,

filling in, with a policy which is very much like--I don't know if its

totally Alan Greenspan's policy, but its very much like it--and so,

instead of the kind of measures, which had been proposed by Rubin,

they went to a bailout.

Now, the question is, how much can you get out of pump priming if

the well is dry? In other words, this particular gimmick, which has

been pushed, as of Monday into Tuesday, this gimmick may not

hold up during the coming days. How long this will last before a

bigger crisis hits Japan, is a question mark.

There's a big political factor here, in the sense that what has been

proposed is the conversion of some Japan savings, as backup to

bailout banks.

Now the history of this is that this saving operation was created by

the government in order to provide Japan's normal people, small-,

medium-sized people, shall we say, in terms of income, with a place

of refuge, in which they could put their savings without risk from the

private sector. Now the attempt of the government, through the

Ministry of Finance, to push this thing back into bailing out banks

which are bankrupt, that is people's savings, may cause a political

crisis in Japan. There is no reason to believe politically that this thing

will stick.

It's a big mistake by the Ministry of Finance top officials, it's a big

mistake by the United States to go along with it. We should have

been much more firm on this thing. There is no way you can deal

with the present crisis through bailouts. There's no--

Put Your Money Where Alan Greenspan Has His

Look! For example, people should ask themselves, where should I

put my money? And the answer you should give them is, You

should probably put your money where the Chairman of the Federal

Reserve System puts his money. In money, not in investments. A

significant part of the $5 million that Greenspan lists as his assets is

in cash. Now, why would a man like Greeenspan put 40% of his

holdings in cash? Because he knows that all investments are at risk,

contrary to what he tells you to do. And so we've come to the point

where there is no part of the financial system which can be saved by

bailing it out. If its bankrupt, put it through bankruptcy, bankruptcy

reorganizations, to any bankrupt institution.

But this would mean that the governments of the world would have

to go back to the kind of protectionist measures which were used

during the 1950s before 1959, for example. And, that's what has to

be done.

Until governments get the nerve to do that, there is no bottom to the

present financial crisis. Japan had a euphoric boom in world markets

for a couple of days, how that would last is uncertain, but expect bad

weather on financial markets, to hit again very soon. This is not

over. This is just at the opening phase.

And it's going to become much, much worse, in Europe, as well as

in the United States, as well as in Asia.

EIR: In Korea, the South Korean government just abandoned the

effort to support its currency, the won, I would think this would

have major effects on the crisis in Japan, among other things.

LYNDON LAROUCHE: Absolutely. This is one of the pressures

which is going to hit hard on Japan, because the Korean economy,

the South Korea economy, is very close to the Japan economy. And

this shock from Korea hitting the Japan markets, with this highly

questionable bailout.... A friend of mine has had the right comment

recently on it, saying that this pump priming will stop, when the

Japanese lose the yen, to continue priming the pump. And we're

getting to that point fairly fast.

EIR: We're nearing our break, but I know that you have written a

major piece for the issue of EIR magazine dated November 18,

entitled ``What economics must measure,'' and I wonder if you

could give our readers an advance preview of that major

contribution.

LYNDON LAROUCHE: As I think people know by now, that on

the fifth of November, I keynoted the morning session of a

symposium on the current crisis, in which I noted that the present

financial, the present world depression, -- let's call it that... Oh, we'll

have to get back to this...

[commercial break]

This is my first post ever to Kitco.....I've been watching the discussion since the late Oct. crash....Have I ever learned a lot!

I would like to ask anyone who may be interested, to respond to the following questions:

1 ) Where do you see gold prices on the spot by Jan. 1, 1998 and why.

2 ) Where do you see gold prices by June/98 and then Jan. 1/99 ..why?

I really enjoy this site ( even the crazies! )

Thanks!

money like a depression was underway, opined the Overpriced

Stock Service newsletter in its November issue.

http://www.latimes.com/HOME/NEWS/BUSINESS/t000104626.html

http://biz.yahoo.com/finance/971119/emerging_markets_for_1.html

That's a VERY good start to my Financial 'Encylopaedia !! {:^}}

Thank you!- and I should be thoroughly ashamed of myself for not knowing it was SOUTH AFRICA!!

Regards

Using the science of heliocentric astrology, I believe that there will be

an upturn of the US dollar in mid-December, 1997.

I have a question for this group. If, after reading my prediction,

you were to apply it to the gold market, how would you bet? That is,

IF the US$ begins an upswing as predicted, HOW would you bet on gold

or silver to profit from that upswing?

I have attached a text version of the prediction to this message. You can read the original prediction, along with my previous forecasts and their results, at:

http://www.starcenter.com/finance.htm

------------------------------------

US$ UP, DEUTSCHE MARK DOWN:

Written November 10-14, 1997 by Robert Tkoch

According to various converging heliocentric factors, it seems that the

value of the US dollar will increase in mid-December, 1997.

The Full Moon, which takes place on December 13, 1997, at 6:37 PM

PST, indicates quite a bit of expansive positivity and excitement

surrounding that currency.

Although there is some chance that it could go either way, up or down,

there seems to be a 90% chance of it going up. To be safe, you might

wait and see, then coming in on the trend. But I myself will bet on the

upturn before it begins.

So in all likelihood, it should be profitable to go long the US$ index, or to short the Deutsche Mark.

However, another factor throws some uncertainty into the timing. The

New Moon of November 30, 1997, at 6:14 PM PST, is also mildly

favorable to the dollar, though not nearly so much as the Full Moon

will be. This somewhat positive New Moon will try to counteract the

previous general downtrend, and it is debatable whether it will send the

dollar up or not. So in the period between November 30 and December

13, the dollar may rise somewhat.

I recommend taking a small long position on the US$ Index around Nov.

30, if other factors deem it advisable, and monitoring it closely. Then,

around Dec. 13, I recommend taking a MAJOR long position on the

dollar, especially if the period between Nov. 30 and Dec. 13 has been

mild.

I foresee an uptrend lasting at least two weeks after Dec. 13, and possibly much longer. I have not yet looked ahead in time, so I have no exact prediction on the length of the uptrend now. But I recommend liquidating the long US$ positions when the uptrend begins to level off.

Recommended Investments:

Around Nov. 30, 1997: commit 20% of your investment to:

Long the US Dollar

Short the Deutsche Mark

( Or purchase out-of-the-money January calls

on the US$ Index or January puts on the Deutsche Mark. )

Around Dec. 13 --- if the US$ has already increased enormously

( improbable ) , do not invest more. Monitor your investment until it seems

to be levelling off, and then sell.

Around Dec. 13 --- if the US$ has only increased mildly, gone down a

little, or remained the same ( the mild increase is most probable ) , then

commit 80% of your investment to the same as above.

Sell when the trend seems to be levelling off.

( For options purchasers: you may buy February or March options, if you

prefer the long-term. )

For my own investment, I will watch the trends carefully. Probably, I will ignore the Nov. 30 opportunity, concentrating on the Dec. 13 bet.

At the time of this writing ( Nov. 10, 1997 ) , I plan to purchase out-of-the-money puts on the Deutsche Mark around Dec. 13, 1997. I may buy both January and February options.

This change, centering on December 13, 1997, should end the trend

begun in early August, 1997. At that time, I predicted that change exactly. You may read that prediction, along with its results clearly illustrated on a graph, at: http://www.starcenter.com/finance.htm#$down970804

If, on the other hand, I am wrong, and the dollar falls after Dec. 13, and continues to fall for a few days --- liquidate the investment, and take your losses. However, sometimes, just when the commodity is about to rise, it will suddenly fall sharply, then triggering the buy signals which initiate the rise. So it is possible that within one day of Dec. 13, there could be a drop in the US$. This would represent the best buying opportunity.

This bet should be most effective IF the US$ remains fairly level, or

decreases somewhat, in latter November. I will monitor its changes, and

will post any modifications to this prediction here on my site.

Sincerely,

Robert Tkoch, November 14, 1997

Again, thank you for your time and advice...I'll be hanging around eavesdropping on y'all...

I think the secret of cold fusion lies in the zero point energy mystery -- which will remain a mystery for some time to come, despite the awakening effect of the internet.

Good night -- hope the US market is in one piece in the AM -- the Tokyo news blackout is real suspicious, isn't it?

Some companies have lowered their cost-per-ounce considerably.

I don't know why I'm so wound up today -- perhaps it's because I just reread Robert Heinlein's Requiem. He was a posivitist if there ever was one. But-- he also believed that the cycles of war and hardship were part of us as well. Somewhere in this book he said that freedom is impossible unless there are men that can fight like a Kzin Warrior of Ringworld fame. One could either die fighting for it, or just die.

He also believed that the human race could survive almost any hardship. I like the epitaph of D.D. Harriman, the fictional businessman that financed the first Moon Rocket, and stowawayed on the first trip:

Under the wide and starry sky

Dig the grave and let me lie.

Glad did I live and gladly die

And I laid me down with a will!

This be the verse you grave for me-

Here he lies where he longed to be,

Home is the sailor, home from the sea,

And the hunter home from the hill.

Apparently Heinlein was inspired by a marker on a grave in Samoa with the above words. I believe like him that we will have difficulties, but that we will surmount them, reach the stars, and meet non human intelligence ( other than whales and porpoises ) . It is important to always have faith in the human condition.

Your reference to Astrology and Particle physics -- that was not my intent exactly to point out, but it is possible that some aspect of the mystery of the zero point energy, the casimir effect and Bell's Theorem may come from unraveling the mystery of Astrology. I am not talking about Astrology in the form that it exists now, but in a quantitative, analytical from. I am talking about phenomena that do not obey the inverse square law most physical interactions in the universe follow. If you doubt this, you should see what the Japanese have apparently done with over unity motors -- Takahashi, and Wankel have invented prototypes of these motors that most of our modern Physicists would consider nonsense. But -- then why has Edward Teller written an article on an interstellar drive based ( as I recall ) on the Casimir effect -- why does Mikio Okaku talk about time travel -- and why did Hannes Alfven talk about zero-point energy? On the latter I have been frustrated in being unable to get only fragments of H. Alfven's prose on zero-point energy -- because I think it was unpopular.

Hope you enjoy this post! Here's the the unknown future that is undoubtedly stranger than we can imagine!

http://www.fiestanet.com/~www/extsoft/timezoneinfo.htm