From our friend Chris Powell:

10:54a ET Saturday, October 18, 2008

Dear Friend of GATA and Gold:

Your secretary-treasurer was given a fair amount of time Thursday night to explain the gold price suppression scheme to the annual fall dinner meeting of the Committee for Monetary Research and Education (www.CMRE.org) at the Union League Coub in New York City.

It was a good crowd, about a hundred people, mostly from the financial industry, and it enjoyed the unscheduled attendance of Robert Mundell, the Nobel Prize-winning economist from Columbia University who is regarded as inventor of the euro (http://www.robertmundell.net).

The CMRE always has been a gold-friendly group and the questions from the people in the audience suggested that they were more interested in gold’s prospects right now than in anything else.

Mundell had a couple of notable things to say about gold. First, that China, with

“The next Fourth Turning is due to begin shortly after the new millennium, midway through the Oh-Oh decade. Around the year 2005, a sudden spark will catalyze a Crisis mood. Remnants of the old social order will disintegrate. Political and economic trust will implode. Real hardship will beset the land, with severe distress that could involve questions of class, race, nation, and empire.”

– William Strauss and Neil Howe, The Fourth Turning, 1997

When IndyMac …

One thing that the world has forgotten for the most part, is that gold is money. It has been parroted around for three generations as a commodity only, with little industrial use or demand, and no value as a currency.

Humans have this interesting tendency to forget history, even though through all of time it consistently repeats itself.

The cycle I am speaking of is the one where societies and economies cycle back and forth between paper fiat money backed by nothing but a governments promise that it has value, and currency that is backed by gold and silver.

This is not new, and in my opinion will happen again, as it always has, for thousands of years.

For a while now I have been going on about how the Chinese, OPEC, and other nations are sitting on trillions of USD in their reserves are not going to simply sit on it and watch