http://www.guardian.co.uk/feedarticle?id=7256245

http://www.iol.co.za/index.php?set_id=1&click_id=139&art_id=vn2008012511485

1961C209455

I have recently read a book titled “The True Story of the Bilderberg Group” by

Daniel Estulin. He reveals how the industrialized world is dominated by a handful

of very rich and powerful people led by the Rockefeller family through the

Bilderberg group and closely allied CFR and Trilateral Commission. The

Bilderberg group meets once a year but rarely gets press coverage because its

members include the media barons who own and control the Press. The group is

motivated to continue to grow and protect their collective wealth. They control the

banking world, they buy political influence, they shape and influence foreign and

economic policy entirely for their own selfish purposes. One of their major aims

has been to have access to raw materials at cheap prices. They have conspired

to suppress the price of commodities to achieve this goal which has at the same

time maintained the third world countries in poverty which also served their

purpose of preventing any country from becoming rich enough to challenge their

de facto economic colonization. Two of the instruments of global economic

colonization have been the World Bank and the United Nations who have

saddled many third world countries with debts that they can not repay, while

prominent spokesmen eulogized about their vision to eradicate poverty!!

This week a very serious problem came to light for these elitists, and in particular

the Gold cartel who are part of the shadowy world domination cabal. Having kept

South Africa in a state of poverty has resulted in a total lack of investment in their

electricity generating infrastructure. This has now reached crisis proportions and

last week the electricity utility ESKOM had to shed 4000 MW of power demand

which resulted in entirely shutting down the mining industry. The unusually wet

weather in parts of South Africa making coal stocks unusable is being used as

the scapegoat but it was just the straw that broke the camel’s back.

The deputy President made a speech where

QUOTE

She admitted that the government had underestimated the country's economic

growth, which had seen electricity demand far outstripping supply in recent

years. (It was ironic that) "we have a growing economy that everyone envies, but

have to suffer this pain. We have a positive on one hand and a negative on the

other. "Maybe we were pessimists who did not believe in our economic growth,"

she said.

END

That clearly is not just a temporary problem of rain soaking some stocks of coal

dust!

Despite the lack of investment in power generation South African heavy industry

has continued to expand and even such power hungry installations as Aluminum

smelters have been constructed.

ESKOM has projected that the crisis will continue for 2-4 weeks but that is very

wishful thinking. This problem is NOT going to go away in that time frame.

ESKOM plans to spend 43 B$ in power generating expansion over the next 5

years but this will not bring any relief in the short term. Furthermore the high price

of coal on world markets has encouraged coal miners to export their coal rather

than to sell it to ESKOM.

This is a MAJOR CATASTROPHE for the gold Cartel. They have stepped on

their own land mine. Gold output from South Africa is going to be dramatically

reduced. Deep mining can not have ANY power interruption. A power outage of a

few hours while men are working below ground would be fatal. If any outage is

threatened a shift must be cancelled. This comes at a time when the Western

Central Banks have seriously depleted their gold hoards from years of

surreptitiously dumping gold on the market and Eastern central Banks are

starting to accumulate gold to diversify out of paper money, and investment

demand is climbing rapidly as credit and equity markets are rocked by

uncertainty.

What wonderful timing for GATA to be making a FOIA request to the US

Treasury about the state of the US gold reserves, running a one page ad in the

Wall Street Journal and staging a major conference in Washington!

Meanwhile the Open Interest on the COMEX at 550,000 contracts is at historical

record levels. How many contracts will stand for delivery? This has to be

resolved in the coming weeks and I expect it will be resolved in favor of the bulls

as the shorts start to panic.

The Cartel is definitely looking into the abyss. Investors must expect high

volatility as the cornered rats become desperate to shake out weak longs but this

will not be a time to trade. The cartel has stepped on its own land mine and is

severely wounded. Gold price drops will not be reflecting weakness in the gold

market fundamentals but weakness in the Cartel’s increasingly untenable

position.

I expect the outcome will be a quantum leap in the price of the precious metals

which will trigger a feeding frenzy in the mining equities that are presently so

seriously undervalued.

Adrian Douglas

Marketforceanalys.com

Adrian Douglas writes many articles on his observations and analysis on financial markets, gold and silver markets, and some selected company stocks. The articles were all initially published at www.lemetropolecafe.com.