“The world’s financial, monetary and economic system is in ruins,” says Ed Steer in Casey Research. There’s so much bad news it’s difficult to know where to start. The silver lining is gold and silver prices look set to explode…

More from Ed:

Doug Casey had an interesting (and very apropos) comment yesterday…”This is actually the biggest thing since the War between the States. The question is what to do when the riots start. Good thing there are SWAT teams everywhere to keep things under control. Maybe they’ll arm the TSA to help.” Former Lehman CEO, Richard Fuld, could have used a SWAT team at the Lehman Brothers gym this past weekend, as CNBC reports that he got punched in the face. I’m surprised he got off that easy. The story is here.

Talking about how bad things might get everywhere…here’s a photo that shows how desperate things have become in Britain these days.

Today’s first offering (from The King Report) is a story filed by the American Press in Berlin and posted at the web site of breitbart.com. It’s certainly worth the read as Germany’s finance minister has a few important things to say that are of note. The story is entitled “Germany considers national financial “shield”. The link is here.

The second piece is the latest from silver analyst Ted Butler. He says that an explosion in the price of silver and gold is imminent. I couldn’t agree more…as all the signs point to it. It’s entitled “An Exceptional Opportunity” and the link is here.

Like lightning at midnight, what the economic crisis throws into stark relief is the corruption at the heart of our system. The Empire is like a towering tree hollow at its center, its core eaten out by termites and dry rot. It will surely make quite a crash when it falls, or is pushed over. - Justin Raimondo, anitwar.com - 03 October 2008.

There is nothing to add to this missive that I haven’t said (in one form or another) many times before. I note that Gold is up $29 in early London trading (5:40 a.m. NY time) as I write this…and silver is up 64 cents. Nobody knows what the real free-market price of either of these metals is, because they’ve never traded in a free market…ever! All the power and all the money in the world doesn’t want us to find out either…for that would be the end of them. Let’s see how they make out today.

Source: And Then There’s This… Tuesday, October 7, 2008