Something is going on that yourgovernment does not want you to know about. Very few journalists havewritten about it and little or nothing has appeared in the mainstream media. The story could be one of major stories of our time.

Western powers have tried to destroygold as a backing for currencies for many years. Presently the majormedia won’t touch the story and that is understandable.

Something we have been writing aboutfor years is the Shanghai Cooperation Organization known as SCO. Fewhave been listening and few have been interested in what their missionis and what they have been up to.

Some of the members are large oilproducers and some, like China, are large oil users. Some have verylarge US dollar surpluses. As well, some are large commodity and goldand silver buyers. In fact, members are in a great part responsible fordriving these prices higher. It is debatable, but we believe there is aconscious effort to accumulate gold and silver, dump dollars and toback their currencies with gold.

China and Russia are both large goldproducers and for a number of years have been buying up domestic goldand silver production, so that it never reaches the market and does notaffect prices. If anything the absence of sales tends to push themarkets higher. As a matter of fact Russia and India are visiblebuyers. Even Iran with its oil surplus recently announced that they hadpurchased 340 tons of gold. Their recent gold purchases are verysignificant as affiliate members, which have access to the present andultimate direction of the group. You might say buying gold has been aprotective effort to shield members and close observers from theproblems generated by dollar policies. They are accumulating gold, asmany have been worldwide, for the past ten years, but particularly overthe past few years.

This buying, for protection, has served to thwart the efforts of US policymakers,the Treasury, other central banks in Europe and the Fed, from beingable to continue the blatant suppression of both gold and silverprices. The malefactors, except for forays into derivatives andfutures, which are transitory, have lost control and suppression ofgold and silver prices, and it is only a matter of time before allvisages of any control will be visible. Since 1988, in August whenPresent Reagan signed the Executive Order creating, “the President’sGroup on Financial Markets” and the subsidiaries that have grown out ofthat policy, that the Treasury won many if not most of the battles.The SCO in part changed that and now they and the public are winningthe war for a fair and free gold and silver market. The current classaction lawsuits, including RICO, are a testament to the marketmanipulation in silver, which is finally coming to an end. HSBC andJPMorgan Chase, the latter that is the major owner of the Fed, aregoing to be finally prohibited from rigging these markets. Theirofficers all belong in jail, but elitists never go to jail; they payfines, and keep right on robbing the public.

Other SCO members and observers areaccumulating gold as well, be it in smaller amounts. We might add thatother nations observing Russia and China and their gold purchases arebuying as well. These participants must believe that there could be areturn to sound money; otherwise they wouldn’t be gold buyers. Buyinggold is certainly preferable to holding US dollars,which have consistently fallen in value versus other currencies overthe past ten years. Then again all currencies have fallen versus goldover that period, some 19.6% annually. It is nice to see nations arefinally waking up to the reality that fiat currencies will all over time deteriorate versus gold. The temptation is enormous to deficit spend.

The most interesting aspect of the SCO is that they do not strive for political agreement such as the European Union.They are interested in economic stability and development andsecurity. There is no overall binding laws. Nations retain theirsovereignty, which is the exact opposite of what the elitists in the USand Europe desire, and that is world government. The SCO has providedgreat flexibility something that is non-existent in elitist controlledcountries. Another interesting facet is that the SCO probablyrepresents half of the world’ population, far more than the US andEurope. As these nations accumulate gold so does some of theircitizens, which puts strong upward pressures on gold prices on acontinuing basis.

In addition some of these nations, suchas China, are spending dollars by buying natural resources and otherthings in other nations in an attempt to relieve themselves of excessdollars earned in trade. Both Russia and China fully realize that theUS dollar is in serious trouble and has been for a number of years dueto fiscal debt and the unbridled creation of money and credit by the Federal Reserve. They well know the dollar is in serious trouble and what the outcome will probably be.

As the economies of the US and Europebecome more deeply mired in problems the economies of SCO nations moreand more resemble the free economies of old that were very successful.You might say they have found their way back to basics and sound money.As the dollar comes under further downward pressure more nations willprobably join the SCO to escape the clutches of European and American imperialismand bureaucracy, which for some years has been onerous andunsuccessful. What we see is a natural path by nations to extricatethemselves from the control of Wall Streetand the City of London, which have dominated the world for so long.All these facts considered we believe gold will find its waysubstantially higher with the participation of these nations, a factorthe West never figured on. These ten nations are sucking excess goldout of the market every day and that will continue indefinitely.

These SCO nations are well aware thatthe surge of hot dollars created by the Fed out of thin air are headedtheir way and with them inflation.Brazil was the first nation to attempt to stop this onslaught byimposing a 6% tariff on interest and dividend paying Braziliansecurities, purchased with US dollars.Over the last two years between stimulus and the Fed $2.5 trillion hasbeen injected into the US and world financial system. As a resultcommodity and gold and silver prices have exploded. This has caused thedollar to fall in value versus other currencies and gold. There is noquestion more and higher inflationis on the way, as the Fed gets into QE 2. You can also bet that QE2will not be $600 billion, but more than $2 trillion. Inflation isalready showing up in food, petroleumproducts, airline fares and in many other items that we use every day.As usual the government says there is little or no inflation. Evencompetent economists still use government’s bogus figures. What canthey be thinking of? They know what is going on as well as we do. Thatmeans we are embarking on the highest inflation rates in US history.Thus far the undertow of deflation has been superseded by governmentbanking and Fed aggregate creation. The Fed, in order to subduedeflation and such spending has to always overshoot the inflation theycreate, so that they can be sure that deflation cannot take hold. Thismoney and credit is in the process of working its way through theeconomy, spreading inflation as it winds its way through.

The only investors who are beingafforded protection are those who have invested in gold and silver andcommodities. That is less than 2% of the American population. Wepredicted in mid-May that QE2 and QE3 would take place for a combined$5 trillion over the next two fiscal years. In fact, the Fed was latein starting in June and as a result 4th quarter GDP growth willprobably be 1% and the 1st quarter of 2011 will probably be in theminus column, as unemployment heads to 25% and extended benefits run out. We are not seeing growth; we are seeing forced feeding.

The Fed’s promises are not worth thepaper they are written on. Ben Bernanke will print money until hecannot anymore and we have hyperinflation.That is because he has no other choice. He has no way out and he knowsit won’t work. Tragically, this is where we are headed and there is noway to stop what the elitists have put deliberately in motion.

As long as quantitative easing is official Fed and Wall Streetpolicy, gold is going to continue to rise with silver, and thestronger the case is that gold is the real world reserve currency. Thatmeans all currencies will eventually have to be backed by gold. Webelieve that elitists have accepted this fact and that was borne outrecently by World BankPresident, CFR, Trilateralist and Bilderberger Robert Zoellick. We canassure you that was no slip of the tongue. That was a cleverly plantedtrial balloon to get public reaction.

We do not see QE2 and QE3 asincompetence or bungling. It happens to be the only option available tothe powers behind government. The same errors committed during the Great Depressionof the 1930s are being repeated and economists, including Mr.Bernanake know they do not work. Yes, the Fed contracted money supplyand when they let it loose again, it was too late for it to be inanyway effective. Next comes tariffs as an outgrowth of: currency wars;interest and dividend penalties on the inflow of hot, inflationarydollars and retaliatory tariffs as a result of losing 8.5 million jobsand 432,000 businesses over ten years to free trade, globalization,offshoring and outsourcing. Smoot-Hawley tariffs and even dumb Fedmoves were bad enough, but Hoover’s raising of taxes by 150% was amonumental piece of stupidity.

At the root of all this is that the Fedis supposed to be saving the US economic and financial structure. Theyare not doing that, they are saving the banking system and Wall Streetinstead and these are the

miscreants that caused the problem inthe first place. The result of this policy of zero interest rates andeasy money is that few are saving.

There you have it, planned destruction.Is it any wonder the SCO members and observers are buying gold onevery dip and will not stop doing so until they run out of dollars. Ouronly question is; what took them so long and why are they not buyingmore faster?