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Armstrong Economics ~* Will Gold Reach $5,000+? | 2] Correlation of Cyclical Convergence 2 In the United States Will Gold Reach $5,000+? by: Martin a, armstrong Former Chairman of Princeton Roononics International, Ltd. ‘and the Foundation For The Study of Cycles OW has been one of the acct wisportrayed mediums of woalth since the 1970s, Usually it has been marketed as the hedge against inflation during the good ld days of the 1970s and 1980s. However, this has been a great misconcep- tion oF the role gold truly plays. Tt is’ coming into its om and is still poised to rally to at least test the $3,000 lovel if qot mich higher, But this portentcus view harbors within a lot of correlations on @ global scale Ghat truly needs sane in-depth understanding. Gald 1s aot about to make such a rally Without critics) developments in goverment, Gold is not the hedge against "inflatice’ bat against. the “collapse in the confidence of governreit." Government holds power caly for as the long as the people allow it. Peocle are complaisant ani will tolerate mich. During the 1970s and the days of OPEC, ‘I will never forget a riot in Philadelphis of ‘white middle class workers overturning cars and setting then on fire because people could not evea get to work. There is a thin Line between civilized condoct ant a tob. hen people can'no longer function in a basic way, holy hell breaks lease. . ‘The US political goverment has just ‘become the greatest thrast to our way of life, it is hard to understand bow we bave degenerated with no sense of posterity. This recent incident going after UBS is a very serious departure in the entire rule of law. Switzerland has existed vith its Secrecy banking laws for a very long time, Tt was neutral during the world wars art its own rule of 1aw has been respected by all pations until now, Why has the US now Seught to destroy the civilization as we have known it? the refusal of governaant to live within its mans is destroying every~ - 7 thing. Instead of reforming, they are lashing cout against our own people 35 well as the hole world. They justify thelr actions by their om self-interest, Nhatever they decree ‘the courts merely rubber stanp, te have no ane left in our corner to prevent: the econenic suicide that ss taking place, Zn the last issue, T explained ina bit more detail the correlation of, Per. ‘spective, vnich Thee det inot et the Sach Dinensicn Of eamplexity. For the first tim, I will now show the 51.6 year Eeonomic Con Fidence Model aligned to the United states and we will see the dollar in a new Light. T have provided charts of the enpirical cycles of American tusiness that we first published back in 1979, This hegins post-civil war and clearly illustrates the struggling economy for ‘there were mre people killed in the civil war than mst other wars con ‘bined. | our first chart begins with 1870 one year after the fanous Panic of "62 ‘Where Jim Fisk and others tried to Corner the market on Gold sending its Value at the tine to $162 per ounce, ‘Adjusted for inflation, that price today would surely be Closer to the $10,000 level in contenporary dollars. We can see the peak in 1873 from which ‘there sas a serious and steep major Depression that was known at the tine as the "Secondary Postwar Desress-| on," The recovery was attributed to a return to sound money known as the Gold Resumption Prosperity. The US had abandoned the gold standard during the Civil war. There ws no paper money printed by the Paderal government unt