PARTY IN THAILAND

Londoners recently had a party for the G-20 meeting.  But they are not alone as it seems everyone is partying these days with civil unrest in Greece, China, Iceland, Ireland, Canada, and even the United States is having tea parties.  The Association for Southeast Asian Nations, ASEAN, scheduled a summit on 12 April 2009 in Bangkok and Pattaya Thailand.

There are deep problems in Thai politics at the moment and protesters stormed the hotel causing the ASEAN summit to be canceled and leaders to be evacuated via helicopter.  Later the Thai prime minister Abhisit Vejjajiva was chased out of a government building by a rogue who snatched a security guard's gun.

Thailand has long been a prime tourist destination in East Asia.  But the Thai police force is flaccid and the military was brought in to deal with protestors leaving at least 77 wounded.  Unfortunately, beautiful Bangkok may become a destination to be avoided and the geo-political implications of this instability should not be understated.

THE THERMOMETER OF NATIONS

Because currencies are now merely illusions they function like the common stock of nations.  Their performance, relative to gold, portends their future.  Has the gold price been sending out the invitation for these latest parties?

As unemployment mounts with world leaders exacerbating the greater depression the confidence in the system begins to wane.  But what happens as belief in the system fades?  There is some psychological point, arrived at through either erosion or mass capitulation, where the middle class Atlas shrugs and retreats from the increasingly arduous task of bailing out the violent State and Plutocracy.  The Matrix requires highly dedicated, educated and motivated livestock to operate and oil its gears.  When that livestock loses faith and belief in the system the machine simply grinds to a halt.

The reaction to global quantitative easing is resulting in an increased flow of gold out of central banks through their bullion banks as evidenced by the ECB and Deutsche Bank's actions to prevent a COMEX failure to deliver in March.  The gold price suppression scheme is failing, the derivative illusion is evaporating and tax revolts are coming.

REFLECTION

Think back over the last five years.  The Thai, British and American political temperatures have been steadily rising as measured by gold.  Over the past year belief has begun fading fast with real unemployment around 20%.  The national temperament is simmering as the price of gold bubbles around all time highs and refuses to cool. And gold is not a portfolio asset; everything else is.

As discussed in The Great Credit Contraction Book these consequences have happened repeatedly throughout history.  The system does not collapse but evaporates.  When people have lost everything and have nothing else to lose then they lose it.  Do not be collateral damage.  There are ways to prepare and protect yourself, your family and your assets with extra food and physical gold and silver playing a vital role.

Disclosure:  Long physical gold and silver with no position in GLD, SLV, TLT or other Treasury instruments of either the US, Britain or Thailand.