This writeup by R Russle was forwarded to me without a referenced chart. The point of the chart was a huge head and shoulders pattern for gold. Looking good!

Gold has been struggling to consolidate above 1,000. It's now apparent that 1100 is the latest platform and support for gold. This week gold finally broke out from its powerful base. As I write, June gold is up 11.50 to 1164.30. June gold is above the halfway span of 1100 to 1200. My thinking is that gold's next important move will be June (the active month) gold advancing to 1200.

With the US dollar "backed" by the greatest debt mountain in the history of man, sovereign funds and central bank reserves have turned to the dollar's chief competitor, the euro. Along came the Greek "problem" and where in Gods' name is the "safe-haven" currency? You and I know, it's called gold. Every major nation is now seeking to boost its mix of gold while getting rid of the questionable currencies.

From what I gather, subscribers who have been with me for years are getting nervous about their gold holdings. Many have never before dealt with the kind of paper profits they are now amassing. And they are sorely tempted to take profits. My advice is, as it has been all along, to SIT.

This ten-year bull market in gold is not going to end with a whimper, more likely it will end amid mass hysteria. The question we should ask is not how high gold may go, but how low the dollar may fall. With the US facing an insane $40 trillion in debt and future liabilities, the US has two choices -- renege on part or all of its debt or inflate its debt away. The debt situation has become so crazy that Fed Chairman Bennie S. Bernanke is lecturing anyone who will listen that the US MUST start paring down its spending and thus, its debt.

Wait, how about just cutting back on the stimulus programs and the "bail-out everything" spending? And how about raising short-term rates? "Can't do it," warns Bennie, the economy is still too weak. The Fed continues to wait for an increase in employment. Sadly, it doesn't appear that it's happening.

Bernanke has been advertised as our leading expert on the Great Depression of the 1930s. Therefore. Bernanke was the perfect candidate to save America from another Great Depression. But Bennie has never had to deal with anything like this baby.

I said from the beginning that you can't manipulate or spend yourself out of a primary down-trend. The unintended consequences of a battle against the great tide of the market is likely to be the end of the US as the leader of the civilized world.

There is no anger like the anger of a people who believe they have been betrayed by their leaders. I was in Milan in 1945 when a furious crowd hung Mussolini (photo below) and his mistress upside down in a local gas station. Italians felt Mussolini had betrayed them and brought Italy to it's low estate.

And I think of the Federal Reserve system and it's promotion of fiat currency. When Americans understand that they have been betrayed in that they have been working and saving for worthless (non-intrinsic) "money," there'll be holy hell to pay. That's my prediction, and amid a state of national anger, I believe we'll see the termination of the Federal Reserve, probably the greatest fraud ever foisted on the America people.