Sunday, June 06, 2004
A major crisis could well be a lot closer than many people believe possible. Saudi Arabia is in a parlous state, in terms of political stability, and the price of oil, which has been steadily rising for a long time, is in position to spike, and I don't mean by $10. It could go to, say, $80, maybe $100, in the event of a massive terrorist attack in Arabia. Historically, gold and oil have tended to move in tandem, and a crisis of the proportions I am talking about could well result in a spike in gold too, to say $500 - $600, perhaps more.
Let me just say from the outset that the Federal Reserve has confirmed our Stock Market Crash forecast by raising the Money Supply (M-3) by crisis proportions, up another 46.8 billion this past week. What awful calamity do they see? Something is up. This is unprecedented, unheard-of pre-catastrophe M-3 expansion. M-3 is up an amount that we've never seen before without a crisis - $155 billion over the past 4 weeks, a $2.0 trillion annualized pace, a 22.2 percent annualized rate of growth!!! There must be a crisis of historic proportions coming, and the Federal Reserve Bank of the United States is making sure that there is enough liquidity in place to protect our nation's fragile financial system. The amazing thing is, the Fed's actions mean they know what is about to happen. They are aware of a terrible, horrific imminent event. What could it be?
One can draw no other conclusion except that the Fed is acting irresponsibly in its managing the money supply, in fulfilling its duty to "maintain a stable currency." I reject the notion that the Fed is acting irresponsibly. No, something is up, bigger than we have ever seen in the history of the United States. Let me ramble. Perhaps they simply see the ominous technical landscape we have been warning about in recent issues, and are attempting to pull out all the stops to avert the predicted crash. The recent rally in just about everything is similar to 2003's market behavior when the Fed pumped massive amounts of liquidity into the system during the first half of the year. This time seems different. The amount of liquidity is too large. The Fed is deflating the value of the monetary base by a fifth! Why are they willing to do this? Wisdom says something bad is up - big time.
How much time do we have left?
In the light of these prophecies there should be no doubt in the mind of any priesthood holder that the human family is headed for trouble. There are rugged days ahead. It is time for every man who wishes to do his duty to get himself prepared--physically, spiritually, and psychologically--for the task which may come at any time, as suddenly as the whirlwind.
- Ezra Taft Benson, General Conference, October 1961
A Majority of One