For some reason, recent trading has reminded me of what we experienced in September 2006, except in reverse. Two years ago, ECU was at an all-time high and was rising even on days without positive news releases. This time around, ECU, like almost all other juniors, is on the rocks and has been meandering for several months if not for a couple of years. In September 2006, it seemed like the sky was the limit but then reality, or should I say suppression, set in as da boyz hammered gold and silver for days and days. Naturally, the steam was taken out of the juniors and the sector has not recovered since. So let us hope, this post Labour Day brings us the reverse or return of the Happy Days as the coil by now possesses sufficient potential energy to drive us up for many months without major pause.

Funny how NY was driven to hold gold below $830 this week regardless of increasing physical shortages, Russia/West confrontations, the approach of a major hurricane to the energy rich U.S. Gulf coast, and sizable upward gold price moves in Asia. Perhaps this is the planned launch pad value determined several weeks ago. It is also amazing that NY was able to hold crude in check for most of the week considering many of the same factors noted above. Even Putin's threat to shut-down the crude/natural gas pipelines, for maintenance of course, to Europe failed to break Wall Street's suppressive grip on crude. From here on in though, gold and silver could rocket anyday without much notice as most of the financials are in dire states indeed.

The usually well researched George Ure had an interesting post on the Russia/U.S. showdown today that supposedly originated from the UN's Geneva, Switzerland office. Of course, there is no guarantee that any of it is true but it seems reasonable and the report cannot be any more false than what U.S. media outlets issue. I have posted the article below for reference.

Lastly, further below, I have provided the latest storm track for Hurricane Gustav that shows that the energy rich U.S. Gulf coast is still the bullseye. I believe the storm was just upgraded a few hours ago. It will likely weaken a bit when it moves over Cuba but it should re-intensify quickly as it passes over the very warm Gulf waters soon after.

Have a great long weekend - VHF

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George Ure

August 29, 2008

Russian forces are still holding 12 of 22 Georgian servicemen taken prisoner in Poti last week, including two Yemini Jews, disguised as Arabs. On one of these, Russian military intelligence interrogators found a packet of reports, wrapped in plastic and taped to the man's back. This packet consisted of 'the highest level security matters.'

This concerned the ongoing plan to base Israeli fighter-bombers at Marneuli military airbase, 20 kilometers south of Tbilisi and that these aircraft were intended for a special air raid on the Iranian capital city of Tehran. It was originally felt that six aircraft were to be utilized, three attacking the city itself and three to attack targeted Iranian oil facilities.

The captured Israeli's papers, all written in Hebrew, when translated by the Russian GRU turned out to be somewhat different in nature. While one flight was indeed intended to attack various Iranian oil facilities, the second flight was planned to drop chemical warfare bombs on Tehran. These bombs, which were designed to blow open at a set altitude, were filled with weapons-grade anthrax and this anthrax, kept in a specially sealed box at the U.S. diplomatic offices in Tiblisi, came from Fr. Detrick in Maryland and their shipment had the approval of the President himself. Another twist to the bizarre plot was that the aircraft, made in the United States, were to have their Israeli marking masked with American markings and that these markings were to be applied in a water-based paint that could easily be hosed off when this flight returned to Georgia.

When the Russians learned of this, they immediately notified their Embassy in Tehran and subjected their Yemeni Israeli to what they called 'intensive interrogation,' not unlike the CIA's Bush-mandated torture. In this case, the 'subject expired' but not before revealing more of the joint Israeli-US activity.

In an abstract sense, the Russian counter attack on Georgia indirectly saved the lives of many thousands of Iranians.

The Americans, apparently, were totally unaware of the Israeli false flag portion of the operation. Had the BW attack been successful, the question arises as to whether the American military command would ever discuss any aspect of it. If any of the falsely-marked Israeli aircraft had been seen and wrongly identified as American, there would be heated denials and the matter would quickly be shoved under the carpet by the American media.

"I "float", daily, around the United Nations in Geneva. Whenever there is a media story, there is always a back story, which is kept from the media but circulated within the halls. I can not state that this info comes from the ******* but the **** in Geneva, has the best intelligence network in the world. You also need to understand that state players gossip and engage in "shoptalk" constantly. We are all there to gather or dispense info.

The scuttlebutt is that Russia will be releasing the translations of the original Hebrew docs, as well as the American shipping docs, shortly.

This is why Olmert rushed to Moscow for damage control."

Remember, this is the scuttlebutt going on at the UN in Geneva.

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