A melt down is on the near horizon, far exceeding that of Chernobyl Ukraine, but this time, will be intentionally done, probably by summer, and Gold will pop to over $1000/oz, virtually over night, and maybe to $1500/oz. With moderate-of-late Sharon out of the political picture with a stroke, it will be difficult for Perez to hold the middle ground in Israel's politics to secure a centrist political party victory supporting Palestinian statehood and unilateral withdraw and moderation, as the Likud party chief, and former Prime Minister, Benjamin Netanyahu resurfaces from the shadow's of the parting Sharon. It wont take long either after the March Israeli election.

Netanyahu wont mess around with Iran by begging for useless endless negotiations as are the EU-3 presently doing with Iran. Israel is relatively immune to Iran's threaten oil price increases, and will strike from the get go. Israel already has a massive stock pile of 2000 bunkerbusters and has a vast array of anti-missile batteries to counter the Salaam III 1500-mile range Iranian missiles. It wont matter what Iran says, truth or not, Israel will defend itself from being "wiped off the map". The Israeli knows that a vote for Deputy Prime Minister Ehud Olmer, Sharon's present 2nd, now tainted with the middle of the road tact, is too dangerous, in the presence of being threaten to be "wiped off the map", as the Iranian President has recently proposed. With Israel in fear of growing threats and extinction from Iran, Israelis will fall back on the old warrior, Netanyahu, as a necessary vote to defang Iran and preserve Israel.

Based on history, Netanyahu will act and act quickly, before summer. With multiple wars, oil supply uncertainty, vast fiat money printing, and global moves by central banks to buy gold in a supply deficit market, it is a no-brainer where gold will go this year. Gold will be in the four digits by July 4th, but initiated with a more impressive fire work show than that ever seen in a USA ballpark. The hard line Likud chief, Benjamin Netanyahune, will move as the bold man he is. Is there really any choice? Is there really any doubt?

The big surprise this day was the lack of a big gold move to the upside. The Gold Cartel must have been in play big time this day, or no one has their eyes open. This may be the cause of staggering open interest driving force in today's action. An ominous indicator may be, of course, the acquisition of jet fighter airborne tankers for the roundabout trip around Arabia, to Tehran. However, I see that as a military ruse, as Israel will directly violate Jordanian and Iraqi airspace, while faking delay to get the tankers, and will go for the jugular, hitting missile batteries and nuke facilities in a massive week long strike.

The USA will be out of this one, ostensibly, having its hands full in Iraq, but would love to hear an end to the "Death to America" screams, as the USA covertly supplies Israel with logistic support. Bush has been waiting a long time for Iraq to stabilize before taking action against Iran, knowing full well, the EU-3 would fail, especially after Iran rebuffed Russia's deal to process nuke material in Russia. Sharon's parting now trumped that delay, and Netanyahune will strike. What other choice does Netanyahune really have? NONE!!!

Derrick Michael Reid
Laguna Beach CA

© 2006 Bill Murphy
Bio and Archives

Derrick Michael Reid, ESQ: DOB 6-30-54 Ohio, and 50 years living in Southern California, a hard-right Ronald Reagan type. Electronic Engineer BSEE University of California Berkeley, 1975, with 10 years experience for various high-tech electronic firms, Graduate Studies in Semiconductors at USC, and Patent Lawyer, JD, Western State University 1981, with 25 years of sole practice including litigation and patent prosecution, mostly high-tech satellite communication systems at federal research labs. Presently also engaged in setting up Web based gaming in Russia with a Russian wife and two wonderful little boys having dual residences in both Laguna Beach CA and Vladivostok Russia, and routinely privately writing to Bush and Putin on courses of action as interested in global affairs.