Dear Friends,

The power of the derivative manufacturers is clearly stronger than the combined power of world central banks.

The mockery made of the $1 trillion Shock and Awe of the euro rescue package is telling. The public relations that Monday had to be approved by the architects of what is now a joke.

The real story is that the credit default swaps derivative dealers are stronger than all central banks put together. Soon markets will see this and rush to the side of the stronger which are the currency shorts of the Western world.

Gold will be purchased for a very long time to come as currencies will offer no storehouse of value. The central banks have publicly lost the battle and no cover will serve to keep this realization away from international money.

The euro pulled back almost, but not quite, to the base line of the flat bottom triangle and is now looking at $1.10 support. The size of the fortunes which are being made by the attacking forces boggles the imagination.

Those that will make the largest profit in gold are just the same forces now attacking Western world currencies.

You must stop being driven crazy by watching the day to day action of gold which is destined only to become increasingly volatile.

Good gold shares in any category of production will at one point outperform gold 5 to 1.

The end of confidence in the fiat money system is behind us. From here on it is structure after structure that is going to fall.

The power of the derivative manufacturers is clearly stronger than the combined power of world central banks.

Respectfully,
Jim