Courtesy Jim Willie Hat Trick Letter (Gold Analysis)

◄$$$ CELENTE WARNS OF WAR FOR FINAL DIVERSION $$$. Gerald Celente is director of The Trends Research Institute. His past forecasts have made him a recently established legend. He warns of war in the wind. Here are some key messages from Celente. Phantom dollars are being used in rescues, bailouts, and stimulus, but they are printed out of thin air, backed by nothing. One should therefore expect no solution by using the same devices and medicine that caused the original problem. Whisky cannot straighten out the drunk. The previous major bubbles did not produce anything except profound losses. Some truly special technology was developed and produced simultaneously, but the bubbles did not produce them, and the bubbles inhibited their full deployment into any economies. Celente describes the 'Bailout Bubble' built atop another colossus of paper, with a core center of USTreasurys. Just as with the other bubbles, the USGovt has created a bubble that will also burst. Celente warns that this USGovt 'Bailout Bubble' is a system killer. Unlike the Dot-com and Real Estate bubbles, when this USGovt bubble dissolves, no future bubble is possible since this bubble is at the very foundation of what manufactures bubbles. No fiscal fixes or monetary policies will be available to inflate another bubble, since the machinery would be destroyed. A series of big bubbles is now lodged in the machinery. My better analogy is that cancer has entered the monetary machinery itself, so that when it bursts, no effective reaction can take place as the machinery is ruined by the cancer itself. Since the 'Bailout Bubble' is neither called nor recognized as a bubble, its abrupt and spectacular explosion will create chaos. A panicked public in the eyes of authorities and leaders must be diverted. Expect a shift of the blame for the catastrophe away from the policy makers and Wall Street conspirators, onto some scapegoat. Expect the ultimate diversion, WAR.

Celente warns: "This is the Mother of All Bubbles, and when it explodes, it will signal the end to the boom/bust cycle that has characterized economic activity throughout the developed world. All of this terminology is econo-jargon. It is like calling torture 'enhanced interrogation techniques.' Washington is inflating the biggest bubble ever: the 'Bailout Bubble.' This is much bigger than the Dot-com and Real Estate bubbles which hit speculators, investors, and financiers the hardest. However destructive the effects of these busts on employment, savings and productivity, the Free Market Capitalist framework was left intact. But when the 'Bailout Bubble' explodes, the system goes with it. Given the pattern of governments to parlay egregious failures into mega-failures, the classic trend they follow, when all else fails, is to take their nation to war. At this time we are not forecasting a war. However, the trends in play are ominous. While we cannot pinpoint precisely when the 'Bailout Bubble' will burst, we are certain it will. When it does, it should be understood that a major war could follow." Even Russian leader Putin warned at the London G20 Meeting to avoid the temptation toward a wider war.