FRN Reserve Currency
Global Reserve Currency
Global Reserve Currency is based upon having busted the myth of the petro-dollar. Instantaneous currency conversion renders the so-called petro-dollar a nice sounding farce. Its time to take on the myth of the FRN being the world "reserve Currency". The connection to the Petro-Bond and the so called reserve currency is well believed, and very typical of those with an agenda or belief system, so orientated.
There is no such thing as the petro-dollar, but rather, the petro-bonds, US treasuries, held by foreign countries, the petro US denominated exchanges making it very easy for oil and gas sellers to convert their convertible currencies into US bonds, and hence, the petro-bond, as the petro-dollar is a fleeting thing, instantaneously converted from one currency to another, by the press of a computer button, just like the procurement of PETRO BONDS from US currency received through US denominated oil exchanges, into PETRO BONDS.
And there they sit, in countries forex reserves. It is the holding US Treasuries in foreign forex reserves that give the US advantage, through its deepest BOND structure, that can absorb trillions of dollars and be held by foreign countries, and thus, it is the HOLDING OF US TREASURY BONDS that gives support the US dollar, and thus, in effect, Russia, China, and all other countries that hold US treasuries BONDS, the PETRO-BONDS, that support not only the US FRN (dollar) but effectively support US foreign policy.
Currently, about 85% of all global transactions are in dollars. Assumption is made that 50% of the world bonds are US bonds held in forex reserves. The US has an economy about 25% of the world economy, that thus, the transactional and Forex Holding exceed that world economy proportion and thus the US, by virtue of US dollar denominated exchange transactions, and by virtue of having a DEEP bond stack to absorb 50% of world government bonds, enjoys an advantage in supporting its currency. In this way, one might argue that the US dollar is the world reserve currency, simply from its transaction ease and deep bond stack. The FRN value is not based of the illusionary petro-dollar nor any pretend "reserve currency" but rather the transactional ease of the deep bond stack.
The big news this last week is believed the mass movement by the banking cartel to diss commodities in general, to starve people around the world and the bad press associated, but to keep gold/silver transactions, but moved to the FOREX RESERVE. This can not be understated in terms preparing for the world for the collapse of the FRN, 110+ years after creation, fueled by leftist political pandering. In order for the US bond stack to fail as a global dominate means to hold wealth, it must be replaced and there is only one other currency that can replace it, and that is GOLD (and silver) reset to much higher prices, into which currencies such as US BONDs can be converted and held globally. Russia and China and other countries do not have this massive debt structure sufficient to hold a goodly portion of global forex reserves. Currently, the US bond market is the only one big enough.
Thus the reset to gold, to switch the US PETRO-BOND (aka US forex treasuries bonds) to gold as being the only market can could possibly absorb trillions of US bonds, but only after GOLD resets to multiple higher prices. US banksters and China are working to transfer gold to China so that, when a new global settlement and currency structure is established, where GOLD can act as the global reserve currency, with most nations participating fairly. Thus, not only is the US bond market a fail, along with the fiat FRN, in both transactions and forex reserves, but will be replaced by gold denominated exchanges, trade settlement, and forex reserves in tonnage, and hence, GOLD will replace the dollar in international transactions and forex reserve holdings. The pieces are coming together.
Inflate or deflate, that is the question. Gold being a global money, is a better inflation and deflation indicator because of that, than any other indicator. Generally, I see many factors affecting the economy and the probable outcomes of inflation and deflation, the major debate this day in the cafe. The gurus talk about monetary inflation versus price inflation. Does any think that average Joe really cares what label is placed upon a 10$ Big Mac, other than expensive, or a 5c Big Mac, other than cheap?
1) Gold, the accepted indicator of inflation, and that means, deflation as well, is currently screaming inflation, of course there are other less important factors, uncertainty (credit squeeze), supply (manipulation), and war (Iran).
2) Unless wages and prices fall in tandem, there is no deflation. Housing and auto prices are dropping in an over supply market that is normal recession price action. However, wage rates are not declining in nominal terms, and unless wage rates ($/hr, the price of services) and prices (the price of goods & services) fall together, there is no deflation.
3) The corollary is that unless wages rise and prices rise in tandem, there is no inflation.
4) When wage rates are flat or falling and prices increases, that is stagflation, the opposite of productivity.
5) When wage rates are flat or rising and prices decrease, that is productivity, the opposite of stagflation.
EMPLOYMENT and PRODUCTION, expansions and contractions, were not mentioned. That was intentional. Employment and production, number of units sold or hours worked, and expansions and contractions has to do with economic strength, not inflation and deflation, per se. A second order affect of full or partial employment or production or expansion or contraction will affect wage rates and prices, that then in turn, becomes inflationary or deflationary, but not production, employment, or GDP raw numbers per se, because we are talking about the value of dollars vis-…-vis gold during inflation and deflation, and not how many dollars are earned or lost.
The subprime fall out and the credit squeeze hit last year big time, and frankly, it has triggered recession, but time is needed to see how it all pans out into inflation, deflation, stagflation or productivity, so lets keep your eyes on the wage rates. If wage rates in $/hr start to fall, significantly, along with prices, deflation rules. During inflation periods, wages and prices rise in tandem, and gold prices increases long term. During deflation periods, wage rates and prices fall in tandem and gold decreases long term as well. Based upon all that I see, the tilt is toward inflation, not deflation, but we are in transit, so its difficult to really say with precision.
Inflation and deflation must be viewed in across-the-board price and wage rate increases and decreases over a significant trend period, to really make the call. But soft markets, in transition are difficult to analyze and I suppose that is the problem with saying if inflation or deflation is currently present. Long term trend analysis seems to be the key in inflation and deflation determination. The spiral down of the great depression probably started off like a recession does, and the spiral down of wage rates and prices was extreme. Wage rates, however, are not decreasing today. Wage rates may be flat, but not decreasing. I work for 40% more in $/hr this year than last, but without an increase over 5 years, and generally held even, relative to inflation, for example. As people are currently being dislocated, as businesses go belly up causing that worker dislocation, it reflect is normal jungle action that keeps culling bad businesses in favor of better ones.
Surely, wage rates can become soft, but generally, wage rates ($/hr) are holding, but prices are falling, but with up tics in unemployment, and that is a clear recession indicator. When wage rates in nominal terms start to fall, along with prices, then look out for gold dropping in dollar price, just like, when there is inflation, gold is the place to be. If one is calling for deflation, now, I would be prepared to buy treasuries and bonds in a couple of years from now, and then hold dollars over the very long term. Just like a transition can appear to be deflationary, it can also appear inflationary, short term. Gold is the ultimate deflation and inflation indicator. Gold is presently rising, and I believe inflation is increasing, and gold is better bet, long term.
When miners' supplies increase, which is unlikely, and when inflation abates into deflation, which is unlikely, gold bugs better have plan B ready to go, several years from now. Gold is nice to hold, but lets not be stupid. Can you imagine those poor saps who bought at $850/oz in 1980 and struggle through the manipulation of the 1990s? In this bullion bull run, its better to get in early, as early as you can, than too late. One possible plan B is a shift to real property, when, in 2015, or there about, when Gold is between 5-10K$/oz. If deflation runs ramped, plan B may be perfected in 3 years, at about $2750/oz. But in either case, 3 years maximum or 7 years minimum, gold bugs wishing profits in FRNs should remain flexible. But that is the economics of investing in bullion for FRN gains, which does not address the need by all to retain personal wealth through gold possession, or the return to real money to keep government and banks honest with the people.
I don't see deflation yet as defined by me as being a drop in prices in a supply restricted market, as there are plenty of houses and car for sales, with wage rates falling, that is not yet observed. Unless, see wages and prices falling together, inflation will dominate, over the short and long term. Don't get me wrong, there is the possibility of deflation, the whole global economy could collapse over night, but there is also the possibility of inflation, stagflation, or productivity, through normal economic cycles. The determination should be based upon an outwardly measured facts, and that is, actual prices of good & services and wage rates.
While all the gurus can look at money supplies and available credit numbers through their crystal balls, and make speculative and intellectual pronouncements about monetary inflation, those money supply affects eventually have to be extrapolated into their affects on prices and wage rates, which is the bottom line, at least to average Joe. Some strongly look to available credit and MZ3 money supplies, and surely, those are very good driving indicator to look at, and then they pronounce a plausible outcome, that deflation is here. As the Russians say, its possible, but as we Americans say, anything is possible. So, looking at the inflation and deflation drivers, the second order analysis, is great, but mostly, one should look to the primary effects, first order analysis, PRICES and WAGE RATES, and not the secondary affects. Looking at propensities is nice, but looking at the HERE AND NOW, is real and for sure.
Falling goods and services prices, which claimed to be the hallmark of deflation, is also the hallmark of productivity, yet falling prices in the presence of increasing productivity, is a good thing. Deflation and inflation are not inherently bad things. Surely, if I make 10x more and prices increase 5x, I made out big, and if I make 5x less and prices decrease 10x, I made out big, and as such, in both inflation and deflation periods, we all can do very well indeed. So, wage rates and prices must be analyzed together, the Ying/Yang thing. Am I better off? (As Reagan would say).
Employment and Production, contractions and expansions, do not determine how well I made out in dollar terms, even though, if extreme, employment and production, high or low, will eventually show up in wage rates and prices. Typically, however, contractions are associated with recession, severe contractions are associated with depression deflation, expansions are associated with inflation, and long term expansions, which we just had, are associated with hyperinflation, naturally so, in the second order analysis, but are not determinative in the first order.
So, wage rates and prices I believe are key, to any accurate pronouncements of inflation, deflation, stagflation, or productivity characterization of the current economy. Trying to show a direct causation between available credit and money supplies to prices and wages is very shadowy at best, as the economics these days are so complex and entangled with unscrupulous on and off book accounting, which is very difficult, if not impossible, to understand with clarity, and hence, the conflicts in the guru camps, and in the caf‚ as well.
Today, I see that prices are mixed, housing and autos are down in prices, and commodities are up in prices, but with wage rates being flat, and currently, that says we are in a period of either stagflation or productivity, or in no-man's land, on the precipice therebetween, with hyperdeflation or hyperinflation lurking, and ready to pounce, in a major league way. Which way it gets resolved will be key, to an ultra-long term gold hold/sell/buy position, but not the near term, which is the underlying reasons for considering all of these possibilities.
The FRN has been inflating in purchasing power, that is, its purchasing power relative to 1 Silver Eagle, over the last 100 years, has been continuously degrading, but, with increasing nominal wages generally, over that entire same period. With a helicopter fiat printer at the FED helm, the inflation result seems like a sure bet, and gold will rise on that basis alone, but will ROCKET higher when considering other affects, such as uncertainty (credit squeeze), supply (manipulation), and war (Iran), indicating a long term BUY call in bullion is now clearly justified. However, if deflation runs ramped, then, there should be an initial surge in bullion as well, with the HOLD position, as uncertainty will dominate, SHORT TERM, but only for about 3 years only, and hence, we need to be a bit nimble in gold holdings, over then next several years and the decade to come, to determine when to sell, if profit driven, to see just when deflation raises its ugly head. Timing is everything.
So, the deflation versus inflation debate rages on, but in the short term, bullion should do well either way, relative to the FRN, but inflation is more likely, even hyperinflation is more probable, and a gold price moon shoot is more likely, and a long term BUY position is the better position. With FRN being held as the reserve currency, and there is allot of FRNs out there, inflation and deflation can still be controlled by the FEDs, and their bent is inflation, rather than deflation, and that should have a snow ball affect, and that means, HYPERINFLATION is more probable than not, signaling the current BUY position. Black Hawk Bernaki Loaded for Bear, will saves jobs at the expense of inflation, which, if wages rise commensurately, may not be really so bad. But either way, inflation or deflation, gold should do very well over at least the next three years. Got Gold? Got Silver? If not, get some now.
Gold Cartel and Russian Geopolitics
Reporting from Vladivostok Russia, it is an interesting day when the lemetropole CAFE and the OReilly FACTOR "Bills" are jointly considered. To comprehend the Billy relationship, first considerations are the out year projections of the global confluence occurring through globalization, which calls for wars to be replaced by the trade wars and calls for all fiat money, such as the US FRN dollar, to be replaced by gold and silver as a UN treaty global medium of exchange, two perceived inevitable consequences of the global confluence. The global confluence toward a democracy century using real money without wars is driven by optimal exploitation of individual human greed and desired freedom. Gold, war, and geopolitics are so intertwined, that a discussion of any one of them in isolation does not provide the comprehensive view, particularly when considering out year projections. The Billy relationship is had first by considering the FACTOR's comments re Putin and Iran, and then secondly, by considering Midas' comments re the Gold Cartel and mainstream market media, when entering this cosmic no-spin zone of triptych analyses of two parallel universes functioning in a like manner.
Centralized political control may be needed in Russia in some measure for some time, when justified to combat undue influences from serious mafia infestations, government corruption, and oligarchical concentrated wealth. Russia needs a Robert Kennedy to go after the mafia, a John Edwards to spew class warfare to redistribute oligarchical wealth, and a Thomas Jefferson to motivate and teach the Russians towards a strong democracy culture.
Putin's domestic successes include 1) defeating the Chechnya rebellion, 2) building pride through fishing trips, arctic flags, and bomber missions and by slamming the US and Bush, the cold war victors, 3) maintaining minimum democratic functions with an unaltered constitution, 4) repairing churches for building a moral core, 5) increasing GOLD forex reserves for economic security, 6) improving the general economy, 7) maintaining a sound national defense, 8) securing national borders, and 9) building an energy empire rivaling OPEC, with Salkaline Gas Japan, Siberia Oil China, Eastern EU petrol lines, Baltic Gas lines to Western EU, and sourcing peaceful nuke reactors and fuel processing in a comprehensive energy profile. In sum and overall, Putin has increased Russian interconnectedness to the world CORE of cooperative countries, which is a very good thing for world peace over the long term, and in this regard, gets high marks for his leadership. What seems at times to be so apparent and obvious on its face, becomes a different reality when heretofore unknown considerations and long term projections are better understood.
Now comes the first Billy, with Mr. Bill OReilly on the FACTOR calling Putin evil. OReilly may have no clue as to exigent needs in Russia justifying what would be, by western standards, conduct considered less than purely democratic. OReilly may fail trying to judge the Russians through American standards.
Putin, as well as the Chinese, save domestic political face with their ostensible support of Iran and the slamming of the US, but all know the US could, should, and will blockade Iran and force strict AIEA compliance. Any Iranian blockade and Gulf of Tonken strike taking out weapon nuke facilities and missile batteries should however avoid Russian built peaceful nuke reactors, as Russia should remain present there to help keep an open eye for any AIEA violations using Russia built reactors.
In a simplistic first order analysis of the acts, (media controls, Iranian support, and increased Iranian sanctions blockage), one gets the "OUR PAL PUTIN" in derision from the FACTOR, naturally so from a limited perspective as one goes with what one thinks from one's current orientations and understandings.
In a simplistic second order analysis of the propaganda wars, characterized by "Bush is a Maniac with Razor Blades" and the "Evil Americans", Americans are taken back with those unkind words, and OReilly reacts negatively, and is tempted to spew the counter propaganda, without perhaps a clear understanding of Putin's targeted audience and the reasons for the slams in the first instance.
If however, one advances to the third order analysis, and looks at the global confluence, the reasons why it is occurring, the goals and benefits of the confluence, and the paramount desires and at-all-costs importance to move all in that right confluent direction, then the first and second order analyses become somewhat insignificant over the long term view. It is only in this third order analysis, in keeping the confluence movement in the "right directions", does really literally see "OUR PAL PUTIN", interconnecting Russia more with the world, which is a good thing.
Here are some supposed facts. Putin knows that the US can, in a heartbeat, take out Iranian nuke facilities and missiles batteries. Putin wants economic gain from building peaceful reactors and recurring income from processing nuke fuels. Putin does not really want Islamic Tehran to possess long range nuke-tipped missiles, as Tehran is just too close to Moscow, having been already struck by islamofascists. Putin wants political gain and wants to rally domestic Russian support with increased political popularity, to build Russian pride, and lambasting the Americans and Bush furthers these objectives domestically as well as cementing his current political lock on power in Russia, a perceived selfishness. Putin and his Slavic Russian core have no problem with the black flag approach when necessary to putting down terrorism and islamofascism rebellion, as in Chechnya, and in the war on terror, this is a huge plus serving the confluence well.
Putin plays out his political strategy for his own selfish gain, that also serves Russia temporally, yet also serves, over the long run, global interconnectedness. Putin will in effect rely upon Bush to be Bush, the gunslinger, doing the evil deed (Iranian blockade and Gulf of Tonken redo), if necessary, to take out Iranian weapon-nukes and missile facilities, saving the peaceful reactors built and supplied by Russia. And just like personally thanking Putin for supporting the middle east peace conference, Bush should not counter slam Putin abstinence on increased sanctions, realizing its just the political gamesmanship, but ignore it with a healthy practice of "sticks and stones". Bush should remain above the name calling, and remain civil, but firm, and in so doing, speak volumes as to US civility and strength.
So, Putin slams publicly Bush with the "maniac with razor blades" and gains political support, internationally and domestically, knowing full well that Bush will act if necessary when the time comes, to heel Iran and curb the nuke arms development, so as to protect Moscow and indirectly sedate the islamofascists in the middle east, the heart of which is the Persian empire, and else where indirectly, such as in Muslim portions of southern Russia. So Putin slams Bush publicly and blocks severe sanctions, keeping in good stead with his Iranian customers, as OReilly gets upset. The politically smart duplicity of the Putin plays can be seen for what they are, view as bad in the first and second order analyses, but in the end, viewed as good, as the Russians want what the US wants, and both are headed in the same "right" confluent direction, though currently one is perceived as an aggressor (Bush) and the other (Putin) as a peace maker for the latter's political gain, as the CONFLUENCE marches on, the overwhelming long term consideration.
In the first order analysis of the actions of blocking Iranian sanctions, and the media controls, etc., and in second order analysis of the propaganda of the "evil Americans", Putin can be considered "evil" from the US perspective, ala OReilly, yet, in the important third and "reality" analysis, Putin and the Russians, Bush and the Americans, are on the same team of increased global interconnectedness which drives the confluence in the right directions over time, and which will necessarily defang Iran, as Putin is counting on Bush to be Bush, while making political gain. Sure, its unfair, and this unfairness will continue, as it's a sure bet that Razputin's CIRCOVOY-MISHKA (circus little bear) Mr. Medvedeva (literally meaning Mr. Bear) will follow Putin's orders accordingly. But unfairness is not as important as keeping Russia moving in the right directions in the confluence, and keeping Moscow politically strong in view of the undue influences is a good thing.
For the analogy, lets look at Midas' continued disgust with actions by the Gold Cartel in a first order analysis, and then look at the fiat money propaganda machine of FED reporting and pronouncements with supporting planet wall street commentary in a second order analysis, and finally look at the third order analysis of the long term "right" direction consequences of the FED and Gold Cartel actions.
The Gold Cartel has its primary muscle based in the European Central Banks (ECBs) selling tones of gold by member encouraged by Uncle Sam under the WAG2 1999 agreement. The US may also be selling, swapping or leasing gold as well. The WAG2 forms a horizontal agreement between horizontal entities to fix sell tonnage levels to affect gold price, which entities also enjoy governmental immunity that might otherwise be considered inherently unlawful. Midas screams bloody murder at the Gold Cartel day in and day out for the outrage done to the mining business by the suppression of the gold price, understandably so, if you are a gold bug. These acts, in a first order analysis, are perceived as inherent violations of anti-trust principles carried out in a global conspiracy.
The Gold Cartel minimally includes the ECBs and Uncle Sam, to affect gold prices. The ECBs have the largest collective hoard of gold bullion in the world, most notably, France, Italy, Germany, England, et al. Of course, gold sales have reduced gold bank stocks over the term of the agreement. Good old Uncle Sam has also been the leader in fiat printing injecting fiat money into all foreigner's forex reserves, as the FRN is world's reserve currency. The number of tons of gold sold has been perceived as timed to suppressed gold prices, which gives average Joe and others around the world, a comfortable feeling with the sound value of fiat money, which has a tendency to calm markets, a stated public policy, to keep a strong fiat dollar. The effective uses of WAG2 has been to suppress the rate of increase of the gold price, which tends to support the fiat FRN dollar, an Uncle Sam goal, as well as supporting the fiat money of the ECBs. Hence, the charges of conspiratorial manipulation of the gold price, to which Midas daily complains.
However, the Gold Cartel does not stop with the central banks, but extends its suppression tentacles to Bullion Banks, Commercial Banks, and Major Miners as the enablers selling physical gold, naked short selling physical gold and mine shares. Through forward hedging of future bullion production by major minors, the price of gold is suppress even further. Barrick Gold, as a major miner, for example, is the world's leader in gold bullion production, having a monster hedge book of 9.5 million ounces. It is of general belief that hedging is good for developers to provide necessary funds to launch production, but not so good for the majors, having reserves, production, and cash flow, when well managed, offering the potential of increasing growth of the company within a current business cycle. On this basis, the hedge book at Barrack is unwarranted, as now many other miners have been are been acquired by Barrack using acquired hedge money. Competition in the gold industry has been destroyed in some measure through major miner hedging for forward production.
When a major minor, with reserves, in production, with cash flow, seeks to hedge further production for purposes of growth through acquisition, then what the major effectively does is manipulate the bullion price down on the short side of bullion when hedging, depressing competitors' share value to their disadvantage, for Barrick's short term loss of value as well, during this current temporal hedge dumping of forward production, for purposes of monopolizing global gold production by acquiring all competitors and all gold resources, on the cheap, and in doing this, Barrick could be considered operating pursuant to unfair predatory practices. Hence, the cries of unfair competition and miner sector damage from Midas, and rightly so. The majors, to be fair competitors, must dehedge your hedge books. Midas, in a first order analysis, has rightly slams the majors for holding a large hedge book.
The gold price manipulation does not stop with the bank gold sales and major miner hedging, but is furthered through the propaganda machine of the FEDs and their planet wall street lap dogs, including CNBC's Mr. Kudlow and Mr. Cramer, for examples, in the second order analysis of the propaganda war.
The FEDs spin and talk the dollar up, while the mainstream DOW pundits talk down gold. Further, inflation numbers keep getting messaged, and apparently falsely reported in some measure. Just go shopping, and one would discover that inflation is a fact, and in double digits. Also, the news shows will not fully address the manipulation or management of the bullion gold price, and tend to cut off any real discussion of manipulation of the gold price. Mr. Cavuto on Fox News will apparently not touch the gold manipulation topic. Midas has been effectively black-balled on national market news show, the DOW boys just don't want to hear the bad news. It seems the DOW market pundits don't want anyone rocking their "everything is nice" world spewing so-called far out conspiracy theories that could damage the focus of their programs.
However, no one in the major media has, as they refuse to, fully and fairly explained why gold was driven so low in 1999, and yet, is now at an all time high. They either have no clue, or refuse to understand why, or actually suppress fair and accurate information. Take your pick, but the free media in the USA could be compared to the media controls in Russia, but I doubt, the FACTOR would get all upset about the inaccurate or nonexistence reporting of the suppression of the price of gold. Is there duplicity on the FACTOR? You make the call. There has been several communications to the FACTOR, including to the so call OREILLY watch dog, Ms Laurie Dhue, but without any results. The topic will not be touched. And Mr. Cavuto is no different in this regard, as failing to go after the really big story in Fiat Money and Bullion Prices, as he merely regurgitates the DOW closing numbers, which are habitually propped up by the "plunge protection team", contrary to fair and free market expectations, without a single question as to why. Midas appears disgusted with the planet wall street propaganda machine and the see no evil crowd, and rightly so, in the second order analysis.
The value of the dollar, oil prices, budget deficits, equity markets, trade deficits, terrorism, and even war, are all nice conventional things that planet wall street likes to talk about, as is their school training, being always correct about how to justify to the sheeple recent upward moves in the price of gold (POG). However, many of these gold pundits come up short in their analysis. They simply fail to see the total affects that suppress gold prices to support fiat money.
Many out there in the blogisphere complain about the government, the FED and the Treasury and the spin talking up an inherently debased fiat dollar, which tends to drive the price of gold down. At the lemetropole dot com Caf‚, for example, the caf‚ members believe that the USA is in the midst of the biggest spin game ever, talking up the dollar. The price of gold has been, is now, and is likely to be continually manipulated for the purposes of keeping faith in the fiat money regimes. A believer in fair and accurate market reporting, cries foul, time and time again, rightly so, but without much success.
Gold is sold by the central banks and timed to suppress the price of gold on the spot market, yet, the mainstream media says habitually says nothing. Mine shares are outrageously shorted, such as the 39 million short share position on the number one silver major miner CDE. There is also a huge concentration of silver bullion short positions on the COMEX as analyzed by Mr. Ted Butler. There is a huge concentration of gold bullion short positions on the COMEX as well. The level of concentrated shorts of major miners and COMEX bullion is prima facie criminal manipulation, yet no charges are filed by the US government, as if, criminal manipulations of bullion prices and shares, get a free pass.
How possibly can these massive suppressive short positions be legal and justified in view of limited amount of available bullion supplies? The answer is that they can not. Why is not the Government investigating these inherently criminal price manipulations? The answer is because it suppresses bullion prices that support the government's fiat money. Why is not the mainstream media investigating the short positions and lack of government market supervision and oversight? The answer is because it does not fit within their DOW market bullish posturing, as gold is both a contrarian play to fiat money and general equities. In sum, bullion and share prices are managed and manipulated to suppress bullion and support fiat money, which is just fine and dandy with the US Government and planet wall street, who conveniently just merely look the other way.
The lack of serious reporting of the gold suppression through central bank sales, swaps, and leases, and the concomitant lack of accurate and fair reporting of market manipulations and bullion suppression, by misdirecting words or lack of words, is a form of market propaganda that has succeeded in large measure to keep the public clueless, to Midas' continued consternation, from which, Midas complains regularly, and rightly so, if you believe that market commentary should be fair and accurate, in the second order analysis.
In the third order analysis, and the question posed is whether the Cartel gold price suppression and market propaganda that is also gold price suppressing, really so bad, and what are the consequences of these functions over the long term, in view of the global confluence and the return of gold and silver money as the only global medium of exchange?
Most gold bugs blame the FEDs and concentrating manipulators for unfairly suppressing the price of bullion and mine shares, and rightly so. But one asks the complainers, such as Midas, what is your solution to the current use of fiat money, and what is the end game prediction? Do the gold bugs really want all government officials to come out tomorrow and start slamming the fiat dollar as worthless, lift the short position over night, and immediately throw the world into a decade long recession, so that gold can explode to $5000/oz tomorrow? No politician would want that recession start as his mark in history, nor would average Joe appreciate the economic dislocations pendent.
The FEDs are playing the fiat money game, as it was given to them, the best they can, from their perspective, as one must admit, the FEDs are doing a pretty good job at it as well, propping up the economy and an inherently worthless fiat dollar through market interventions, manipulation, and propaganda, and are actively managing all markets, the perceived evil, including gold, for maintaining goldilock economies and soft landings, which talking up and manipulation, in the first and second order analysis, of the dollar for that purpose, is not necessary inherently evil in deed or intent, nor would the average Joe on main street, the voting public, think it inherently evil.
Think about the object of the US Government trying, in good faith, to keep the economy growing over market turbulence, to keep average Joe continuously employed and housed, even though, the consequences have been gold suppression, inflation, and the subprime fiasco, as well. The reality of the markets as it exists today, is what it is, without regard to the blame game and the charges of the evil manipulation. The government will naturally try to do things for the common good as they view it, and market intervention and propaganda are the tools often used. As long as fiat is used, gold bugs will be at odds with the government, their gold sellers, the concentrated short manipulators, and the nonreporting news media.
However, world bank gold sales, for the last decade, has suppressed the POG through the 90s and to this day, but gold availability for suppression may be finally running out of steam with insufficient gold stocks in the central banks to continue the suppression in earnest, and consequently, gold has made a spectacular come back since 2001, and there is much more upside to come in the POG. The accelerating price of gold can not be stopped relative to fiat money. World bank gold sales suppression, that is, world bank POG suppression sales, loans, and leases for continuous short selling by the bullion banks, major miner forward production hedging, and the massive commercial bullion and mine share concentrated short positions have all functioned collectively to suppress the POG over the last two decades. The suppression of the POG has lead to low mine exploration and bullion production, naturally so, but now with increasing demand in the face of decreasing supplies and increasing spot supply-demand deficits, and in combination with environmental resistance to new mine openings, and the inflating fiat moneys. The aggregate affect of the manipulation and short selling has set up a monster bull supercycle in bullion relative to fiat money around the world that will suffer from increasing inflation, and leading to ultimate destruction of all fiat money, as the world return to real gold and silver money.
These sound fundamentals are the drivers in the increases in the POG, presently in the face of a massive commercial short positions build up over the years, now looking forward to massive short squeezes to propel the POG into four figures and soon, if not five figures. The inevitable pending massive bullion and share short squeezes, and parabolic accelerating POG prices in the near and long term, is a done deal. It will take this massive short squeeze, four figure POG, five to seven years of increased POG, and increased exploration and production to bring the POG back to normal equilibrium, as is, in normal commodities markets. In effect, the Gold Cartel and continued use of fiat moneys have handed the gold bugs a dream world, where low gold prices, even if at all time high in nominal dollars, can be taken advantages of now, as the POG moves to at least $2750/oz by 2010, and much much more in the out years. Those seeking trade profits and economic protection can buy gold, silver and mine share positions, and make some good money with real financial protection. In a close loop system, negative feedback eventually comes back and put the system back in order, and the POG must and will go to the moon, relative to decreasing valued fiat moneys.
Managing or manipulating, depending on your view, is nothing more than the choice of words, to reflect your approval or disapproval of the engineering or intervention of the POG or any market, such as the DOW. Taking a very long-term perspective, all governments can forestall, but can not stop, the inevitable collapse of all existing fiat moneys, the result of which will be the return to real money in circulation, as well as the demise of the national debt. If the value of the FRN goes to zero, the value of the national debt goes to zero, which should be considered a good thing. And as foreign bank FOREX FRN reserves value goes to zero, foreign countries are made to effective pay their fair share in civilizing this world through US expenditures on military might, as the close loop system provide the negative feedback.
A return to real money and elimination of the national debt, are good things, for the interconnected global confluence. Getting there without much pain, is the real trick, however. Just give the fiat money regimes a little time to collapse, but collapse they will. There is no other solution possible, if one thinks about the need to continually print more to keep the fiat regimes going, as the fiat end game is at hand, as the dollar (and all fiat moneys) is going down, way down, eventually to zero, with FEDs in charge, striving for a soft landing.
The US Government, in its glorious wisdom, or inadvertence, which is most likely, or stupidity, as is the name calling in the cafe, has set upon a course of destroying fiat, through poor budgetary practices, perhaps driven by the need to militarily civilize the world. The return to real money, a democracy century, and the elimination of the national debt, are good things, as the FNR dollar goes to zero worth, in the out years. For a return to constitutional real money, true real money believers should actually wish them continued success, in the dollar's continued but graceful degradation to that soft landing of zero value. In the mean time, one can take advantage of the market management or the manipulation, if you wish, and make some money in bullion or otherwise preserve wealth through real money gold and silver coinage and bullion bars and mine shares. Preferably, there will be a concurrent demise of all global fiat moneys with the elimination of the national debt and a return to real money, that will be as painless as possible for the average Joe out there, and all should wish the government, all the best, in so doing.
In the final third order analysis, the government through their manipulation of the price of gold has in effect accelerated the return to real money through the prospective demise of all fiat moneys going to zero value, and has set upon a course of wiping out the national debt, while democratizing the world, and upon a course of returning the world to a real money global economy so as to prevent unfair trade practices between nations, as war is replaced by the coming trade wars. Hence, the manipulation, triple deficits, and even the subprime mess, can be viewed, over the very long term, as positives for the world at large, if you are a real money believer and view the confluence as a done deal.
The world is fix sized as a close loop system with negative feedback through human cultural evolution, that inherently drives the global confluence that has been going on for 5000 years, and it will not stop, despite any temporally perceived evils. Putin and his media control will be proved to be without lasting effect, over the long view, and in counter moves, will actually accelerate the building of strong democratic institutions in Russia. The gold Cartel and its gold suppression will likewise be proved to be without lasting effect over the long view, and will actually accelerate a return to real money. The propaganda from Russia or the US FED, and their respective media allies, will not have lasting effect as accurate information finds a path to clear understanding. If you are an American of high democratic ideals or a gold bug believing in constitutional real money, Putin and the Cartel are long term positives but short term temporal problems that will be eliminated in the out years as the confluence marches on, in this democracy century, as the world moves from FRN dollars and war to real money and the trade wars, undeniably so.
If you believe in pure democratic principles, then Russian media controls and Iranian support should be slammed, rightly so, in a first order analysis. If you believe in free markets and fair competition, then the Gold Cartel and predatory miners should be slammed, rightly so, in a first order analysis. If you believe in fair in accurate commentary, then Russian propaganda attacking Americans and President Bush, should be slammed, rightly so, in a second order analysis. If you believe in fair and accurate reporting of markets, inflation, and financial statistics by the FEDs and planet wall street commentators, then the "everything is fine" blind-eye propaganda of the FEDs and market pundits should be slammed, rightly so, in a second order analysis.
If, however, you have an understanding of, and believe in, the confluence of global interconnectedness, and the inevitable human cultural drivers thereof, in a negative feedback global closed loop system, then you, in third order analyses, dismiss in large measure, such first and second order analyses that comes up short over the very long term, and would necessarily believe that the temporally perceived evils and short comings of the Gold Cartel and Russian Geopolitics are actually good things accelerating the global transitions from war to trade wars and the transitions from fiat moneys to real money, in this democracy century, which are, in the end, very good things, not bad things, in the long view, for mankind, now hopefully realized here from a Gold Cartel analogy to Russian geopolitics.
USA Russia China, Showboating the People
USA, Russia, and China, the big three of the connected core, are apparently on the same team, in the big scheme of thing. Chris Powel of GATA suggested on KWN that Central Banks (CBs) including Russia and China and the USA through the FED, are in on the gold suppression scheme. This is consistent with my contention that totalitarians there or here, totalitarians everywhere, are the same, to control and enslave the people as tax mules or state dependents. One of Freedom's pillar is GOLD in the hands of the people. CP suggests that Russia or China could pull the plug on the gold suppression scheme by dumping dollar for-ex reserves, which may be considered by some an act of war. The better view is that Russia and China are happy to accumulate gold, with the FED suppressing the price, in treason, as the FED is leasing the same and will never get the US gold back. Russian and China will go along with the gold suppression scheme, while keeping back up currency reserves, with large FRN for-ex. It makes sense that China would allow gold to drift lower at times thereby allowing FED's bank, JMP to pick up more physical gold, on the cheap for profit for off loading to China, in treason to the USA. In the end, all must look at Governments as totalitarians suppressing and enslaving the people, for more and more government power over the people who can only push back through riots, rebellion and the MOPEd vote, the later of which is another pillar of Freedom, whist the oligarchsters, banksters, and greedsters suck the people dry through national debt, housing debt, car debt, student debt, credit card debt, and more debt and more debt.
Question of an explosion in gold price remains if JPM will go cowboy, and flush the hedge funds and speculators yet again, but now on the long side, apparently thumbing its nose at the CBs, that is, the FED and by extension the US Government. Within limits, one would think that the COMEX gold market will go back to the graceful retreat up in price, to provide an orderly ascent, allowed by the FED so as not to scare the MOPEd people, yet allow JPM and GS and the gold cartel to flush Hedge Funds and Speculators on the COMEX repeatedly for profits, yet keep the totalitarians in control, enslaving the people, whist the oligarchsters and banksters continue to suck the people dry through debt of all kinds. Overall, the game is rigged, to keep the totalitarian in control by suppressing and enslaving the people, as tax mules and state dependents, to keep the MOPEd people in line, allowing the masters of CBs and governments, that is, the oligarchsters, banksters and greedster to continue to profit off of perpetual debt upon the people. The dealer dealt himself 3As with a pair of jacks, showboating the folks in perpetuity, enslaved as tax mules and state dependents.
It may be that an explosion of the interest rates will be the undoing of the gold suppression. Michael Pento is on record of saying that a 4% Fed fund rate, and game over, that deficits will run out of control, and interest rate spikes, and the bonds fall out of bed. Hugo Price says that interest rate trend is up. Apparently the 10 year hit 2.72%. Last night on bloomberg, it was reported that the 10 year was 2.71% which is a tad above 1.5% of many years, so there is some evidence that interest rates are on the rise, which necessarily means the bonds will fall out beds. As such, the FED is believed to have lost 192B$ recently on bond value decreases, and interest rate rises would lead to an equity fall, and a system collapse, and with game over, resulting in marshal law as the people riot when nanny state support ends, and DHS arms itself as the government effectively confiscate guns, with financial repression being over and bank system is then out of control, as money floods into gold where possible. The fractional gold reserve system is under attack and stress, as the LBMA of London reports 1300 ton reduction apparently used to smash the price of gold in April 2013, trying to keep control of the gold price through the fractional gold reserve system that is under stress while gold GOFO rates are negative, indicative of gold in record tight supply conditions, no doubt from the missing gold that ended up in China, as the US COMEX and EFTs are drained of gold now practically ALL GONE.There appears to be a confluence of conditions that suggests that the financial suppression of the CBs under the control totalitarians under the control of Oligarchsters and Banksters, is playing out before our eyes. Mean while, the Reps and Dems do the Benghazi blame game and IRS attack dog political game so as to entertain the red and blue lions looking only for fresh meat to chew, having no clue that revolutionary freedoms have long been abandoned in the USA.
Are global paper currencies bound to fail? History says yes, 600 fiat currencies have all failed, with an average life of 40 years. Nixon closed the gold window in 1971. Is the fractional gold system Doomed to fail? London and Comex stock piles draining, with GOFO rates negative. Will the FED ever get its leased gold back? No way is China going to give it back, gold being financial power. Has the flow of gold from west to east continued? Most likely, and pandered totalitarianism is based upon the FRN. Will Gold eventually become the world reserve currency? No other conclusion is possible.
China Reserve Currency Imperialism
Many claim that china wants the yaun to be the world's new reserve currency. Where does that come from? Has the PBoC announced such an intention. That assertion is contrary to Chinese culture which is an inwardly looking culture, and is why Formosa is such a big deal. China desires to keep its country whole, secured from outside manipulations. Chinese culture, which is the driver, does not target a yaun world reserve currency. The better answer is that the Chinese will engage the outside world to keep outside influence out of china. A world bullion money exchange does that. Acquisition of mines outside of China does that. The only real reason why any power would want a reserve currency is to extend diplomatic power and influence for controlling foreign lands, which is not Chinese culture. The better explanation is that China is accumulating bullion and may back it currency for the purpose of keeping China whole and safe from foreign manipulations and imperialism. This talk of an RMB world currency dont square. Russia and England are more likely to desire control through a world reserve currency, reliving the dead age of imperial powers, but not China.
This comes from personal interaction, and it comes from recent history, it comes from an overall general understanding of history, and it comes from present political realities. The last imperial stage saw the Europeans man handling of china, and that is believed to be the most relevant period. Sure, anyone can chop trees, and surely facts can be found to support a desired position. The Chinese wall stands as a monument to what? A generalist looks at the big picture, without falling into the trap of self interest looking for biased outcomes. One can build a case for the desired outcome, coming from a perspective in terms of chopping down a particular tree looking for a desired outcome.
China has enough headaches, trying to keep itself from flying apart, with Muslims in the west, the Tibetan Buddhists in the south, the capitalist in the east, the peasants in the center. There is no evidence coming out of china proper, of a government official saying that China seeks to have a world reserve currency. Surely, one could project the intention, if guessing is the game. But from a totality of the circumstances known, from a generalist perspective, the acquisition of gold is more of a defensive play, than imperialistic tendencies to conquer the world. Just Saying, without the rancor.
An the highest level of general thinking, hot wars turn into trade wars as paper currency turns into real money. Gold is the projected world reserve currency, not the RMB.
The later half of this century will wage war, not by guns, but by trade, and the major issues then will be fair free trade war which in fact has begun in earnest, as well as over population, and environmental issues and resolutions. I wont be around to enjoy the fruits of 5000 years of cultural evolution of man-kind, in this regard of the inevitable global confluence, but it seems, that we as a specie are moving to a better plane of intercourse. With endless fiat money printing, paper currency will become history as well to prevent cheating banks from destroying the value of hard earned savings and wealth in order to sustain the trade wars. The world banks' and governments' only solution to fair trade, is the necessary use of a standard medium, Gold and Silver. As governments learn that expenditures of real money on military hardware and personnel diminishes their returns and limits their abilities to invest in trade productivity in trade wars, expenditures will shift away from war materials and fiat money to trade capital assets and real money for improved global trade competition. The ultimate projection is that the Dollar and War are completely replaced by Gold and Trade, say by 2025.
This is why the bullion bank selling of US gold treasure, leased from the FED Bank is treason.
Trapped Central Banksters
Ron Paul has one thing right, eliminate all taxes on bullion coins, its mere money any way, and why should we be taxed on exchanging one currency for another? Here is why those totalitarian socialistic fascists in control, want to tax bullion coins.
Eliminating bullion coin taxes would help send fiat money faster to its ultimate destruction, thereby defeating through market forces, the printing presses, which is the means used to enslave us. This is why CBs, through their bullion hit men, eg JPManipulator, manipulate and suppress bullion prices. They want to the peeps to have confidence with the worthless paper money con game.
All fiat currencies eventually go to zero value, anyway, because of reasons stated, lack of political will for balanced budget, more and more hand outs, etc, thus the implosion, based upon the nanny state insatiable need for deficits enabled by the money printing presses. It will happen anyway, as intelligent Europeans/Americans line up, in increasing numbers at the bullion coin shops and banks to get protection from the vile central banksters. Fiat paper money has no intrinsic value, and has inherent value bases upon, threat of imprisonment if you dont pay taxes in that paper money, hence, the artificial demand, leveraged by manipulated interest rates. Hard real money has intrinsic value, and cant be just printed, as it takes money value, energy, and much work effort to find and develop mines and mint the bullion coins. And once made, it retains its intrinsic value, or so it has for the last 5000 years, that all can trust, real honest money, and that cant be devalued by the printing presses which robs us all every day of our lives.
Destroy paper money, and your obscene socialism blow up in smoke, as we are all witnessing these days. But removing taxes on bullion will speed up the necessary and inevitable implosion of fiat money. And until that happens, sustain economic growth, and freedom from government, is but an illusion of market interventions, and government manipulations, perfected by the Central Banksters' printable irredeemable ponzie coupons. Bernake claims gold is not money, and that he want to save the banking system. ABSOLUTE BULL. He wants to save the totalitarian printing presses, as the political hack he is.
Central Banks around the globe are doing the double dutch, printing paper money, yet buying gold bullion by tons. Why? BECAUSE THEY, BY THEIR CONDUCT, HAVE IN FACT, LOST CONFIDENCE IN PAPER FIAT MONEY.
They know what is going to happen and why. The world economy is going down hard. Its not a matter of IF, but when, and so they can only kick the can, down the road, as none will allow an implosion on their watch.
BUT, no matter how hard they try, they can not solve a debt-insolvency problem, with MORE DEBT, nor will they allow the necessary deflation to take hold, to deleverage the financials, which is necessary, and the resulting global depression, and hence, their ONLY solution is to debase the currency, with resulting inflation, of course, to reduce the real value of debt, but there is the rub, in so doing, currencies eventually collapse into hyperinflation, (loss of confidence), and the resulting global depression. THEY ARE TRAPPED, and they know it, and that is why the Central Banks are buying gold. Our founding fathers knew the evils of the combination of printable money and political usurpation of sovereign rights, and set forth a constitution based upon a limited federal government and real money hard silver coinage. But, the politicians threw that out, because of their power trip over the people, and the courts let them get away with it.
30 US states are hopelessly insolvent. US muni bond market will take a huge hit in the out years. 12 US states have real money bills pending in state capitals, to regain sovereign freedom from USSA DC's printing presses. THE REBELLION HAS BEGUN, to strike at the heart of the evil empire, the USSA, and recapture our constitution rights and freedoms from DC tyranny.
US Seizes EU's Gold Hoard
The US, in a financial gambit, of back door dealings and global financing, has seized nearly ALL of EU's gold held in US Depositories. The Two Stage Snatch is possible. The EU is a basket case. The US a close 2nd, of course. So, these socialistic politicians will money print, of course, to postpone the debt collapse. The US will loan or back-stop the EU, with unlimited money printing, ultimately putting the US tax payer at risk. Nothing new there. But, the EU wont make drastic changes to its econo-socialistic cultural, politics and resulting spending ways, with the resulting debt collapse. US will help kick the EU Can down the road until the EU eventually busts, anyway.
In stage one, the EU disintegrates, the Euro goes into hyperinflation, and fails, with the US holding the bag, of Euro's and EU debt, considered worthless. As soon as the EU defaults on US obligations, US seizes substantial quantities of European gold held in US depositories, calls it even, and doubles the US hoard from 8K tons to 16K tons.
In stage two, the Federal Reserve Note, the US paper dollar goes into hyperinflation, and fails. The US redeems FRNs, say, 50T$ of US reserves notes at, say, 5B$/ozAu, the redemption rate, which equals a mere 10KozAu, and calls it even. Encumbrances on US Gold are cashed out, at the official rate of 50$/oz, the cash out price, which at about 4000tons encumbered at 50$/oz for $5B that could be then redeemed for 1ozAu. The US reboots on the Gold standard, and the world economy returns to a gold standard with the demise of the global paper fiat monetary complex.
The US would have the world's largest hoard of gold, say, 16,000 tons, and would remain the financial rulers of the world, say, by 2018, in a two stage snatch. Ukraines 34 tons of gold went missing, just like Iraqi gold went missing. Who done it?
EU has US Taxpayers Pseudo Banks
EU and US Banksters/Politicians cant help themselves to print money to kick the can down the road to the inevitable implosion of global bond markets and inflation, if not a total collapse of all western currencies, in the most likely hyperinflation (loss of confidence) scenario.
So, who among you are going to be left holding the bag of cash, that aint worth a continental? Eventually, all of these bank losses will be back-stopped by the US taxpayer, (including EU debt losses), as the politicians in the EU and US screech (falsely) that we must always bail out banks and those supporting and perceived necessary 40million$/year bonuses, less the campaign contributions and political power cementing in the corrupt beds of Wall Street stop, losing the enslaving TOTALITARIAN SOCIALISTIC FASCIST control over us TRUE AMERICANS who believe in honest money and limited federal government. You know, that trashed constitutional stuff.
THE UNLIKELY CASE. Europe debt problem is racing to an explosion. If the EU bond market collapses, there can be a rush to further liquidity needs, and those with profits in bullion will sale to raise cash to cover losses. In this scenario, selling pressures will hit the commodities generally, tending to take silver down. Gold is not a commodity though transacted as such. Gold is simply a store of real money.
THE LIKELY CASE. Europe debt problem will be solved by money printing kicking the debt collapse down the road. US and EU will engage in both qualitative and quantitative easing to counter the debt collapse problem, as a temporary fix only. Gold should advance higher, as the ultimate store of wealth, and safe haven play, and that will drag silver up with it, with Silver out performing, regaining its role as a monetary metal, the ultimate street currency. Markets are highly volatile. Start loading the boat with Silver.
FED QE to Infinity and required Gold Price Suppression
Clearly, the FED is trapped, QE to infinity, kicking the can, or pull QE and immediate economic Depression and fiscal deficits rocket higher. To keep the QE game alive, the FED/BIS directs bullion banks to manipulate the bullion market keeping the price of gold and silver low, as gold/silver is the canary in the coalmine, to make the dollar appear better than it is, for as soon as QE is pulled, bond market collapses, fiscal deficient skyrocket as unserviceable, the dollar sinks into oblivion, hyper-inflation ravages the people, and the resulting wide spread economic depression. But until then, the middle and poor classes are sucked dry, as the banks manipulate all markets using ZIRP free money, as the rich get much much richer, and hence, the unlikeliness that QE will be pulled.
The FED/BIS by directing the bullion banks (eg GS JPM) to short bullion, to give the false appearance that the dollar is sound, reduce the price of bullion, so that smarter eastern country, read Russia China et al, can buy bullion on the cheap, thus transfer gold/silver from west to each, yet bullion in the US is that last ditch defense to the inevitable collapse of the paper currency dollar, and thus, the FED is committing regular TREASON against the people of the US, so that the banksters and greedsters (bullion banks) can profit on the backs of the middle class and poor, and so that eastern countries can get their fill of bullion, and hence, acquire long term economic and military power adverse to the US. TREASON and GREED rule the FED bank and bullion banks, that unduly influence the US government, in a totalitarian fascist corrupt system, destroying the middle class, sucking the country dry of wealth, to enrich the 1% and the banksters, leading to economic depression and hyperinflation, without a last ditch defense to monetary failure.
The conclusion was make early on, that the yakity yak gold bugs do not cross dimension in necessary and indispensable thinking, and that Andrew Maguire was going down the wrong procedural route, to stop the manipulation. Well well, another turth brought to light and now admitted, publicly on Keiser. But, you all will get there, maybe not soon, but eventually, as I have faith in your persistence, and may be there are some real smart guys, just maybe, who will finally get there, who do more than yakity yak and complain, who will take a serous 2nd look at the proposal to end bullion manipulation, set forth and published for all to see, but such real smart guys would first have to understand the totality of AM's broadcast, then realize the that government agencies and coastal US district courts suffer from undue influence, then realize that yakity yak gets no where, and then finally realize that that plan is the only way to bust the con game here and now. May be there are some real smart guys out there, just maybe. The gold community and whistle blowers can blow hard all they want, and do the Kesier rant, and of course, get no where, unless someone steps up and fund the plan, and until then, you all should just kick it, and ride the ride, and complain to high heaven, and sell subscriptions, or glorify your angry bad selves on KWN, or just yakity yak till the cows come home, as that has been the only sure loser method going on 15 years now. You can lead horses and gold bugs and yakity yak cows to water, but you cant make them act.
Bullion in hand represent freedom from government. At 2000 tons x 32,000 = 64m oz gold, and 750m oz silver are mined each year. Demand has to blow that away, for metal to "over run" the printing presses. Demand will come only when the paper money fails. Governments have the printing press with QE and ZIRP enabling market rigging with relative impunity, the bullying pulpits to pander the people to believe things the governments wants to sustain it own totalitarian control over the people, distant public memory of silver in circulation, trashed Constitution, a corrupt judiciary, totalitarian socialistic fascist controls, a pandered population believing socialism and income retribution and sharing and more government is the way forward, world wide fascist combination of governments and banks, police state taxes on bullion, inter alia. It seems that over run could take a long time. Defense to the assault on freedom is as useless as the CFTC, all just waiting for the next assault on freedom, right? The bullion camp has only yakity yak cows, screeching unfair, but unwilling to go over to the offensive, with the plan, to free mankind worldwide.
Store of Value and Medium of Exchange
Gold is a Store of Value (SoV). The FRN is a medium of exchange (MoE). SoV and MoE can not be separated. Close loop systems are in place, as the earth is finite, though time delays and manipulations can skew the relationship at various points in time. Gold (SoV) is rising respecting the FRN$ (MoE), that is, they can not be separated, indefinitely.
Banksters and Greedsters (eg GS and JPM) will seek to selfishly profit by manipulating markets, but like all manipulations between any SoV and any MoE, fair market value, that is, an equilibrium between a SoV and a MoE will be had in time, during the endless struggles of mankind.
QE and ZIRP are causing a collapse of the fractional reserve fiat money complex. Gold and Silver price manipulations are causing a collapse of the fractional bullion reserve complex. Infinite printing of a con fiat paper currency borrowed at no risk and bullion price suppression catches up eventually to a fair market value equilibrium between the MoE and the SoV, and in the current case, between totalitarian FRNs and Constitutional Gold and Silver money, a reasonable FVM is placed at about $45,000/oz Gold and $6000/oz Silver, on its way to infinitely, as the FRN collapses, in the prospective greatest transfer of wealth the planet has ever witness.
Fundamentals dont mean anything in todays markets, or do they. Its all interventions and manipulations. What is an investor to do? Stock and Bonds are being inflated, and short term profits could be made for the trader, but will collapse as does the dollar. Housing is perceived as key to economic recovery, so it is being intentionally inflated, so look out below, when the 2nd housing bubble pops. When the fiat regime pops, hard assets without counter party risk are the best. So, Hard Assets and Commodities in hand, without counter party risks. Precious Art, Precious Diamonds, and Precious Metals are the go to safety classes to invest, even if not intentionally inflated by gov, and so you risks so term prices, for long term value. Of the three, cash, which will only mean Gold and Silver Coinage, will be king, and of the three, Art, Diamond, Metals, the metal hard asset class will do the best, being Monetary Metals, a mush have by all. So there you go.
Counterfeiter In Chief
Michael Pento, of Pento portfolios, coined the Phrase, "Counterfeiter In Chief". Mr Pento is one of the best, in market analysis, regularly previewed on King World News. You want to protect your wealth? Talk to Pento. He is YOUR MAN!!!!
On a very sad note, for the poor and middle class, just got their butts handed to them today, and they dont even know it. Ben Bernake, US FED BANK chairman, and counterfeiter-in-chief, did it, QE to infinity, bullion hoards going up fast this day. They will print those irredeemable ponzi coupons (U.S.D$), until the dollar is completely destroyed, as all ponzi schemes end up, as history repeats time and again.
I will try to put it as simply as I can. Socialists promise more than they can deliver to pander for political control, and it works, through 100 years of leftist pandering, to where, as Maggie thatcher said, you eventually run out of other people's money, eg 16T$ in debt, with T$ deficits, collectively, so huge, and interest rates must remain a zero, less an immediate fiscal cliff.
The central banks (CBs) use printable fiat money, having no intrinsic value, and can print as much as they want (which gold and silver prevents) That is why we have paper money, so that the socialists can print what ever they want for anything. There is one little problem to that. It always gets OUT OF CONTROL, because political pandering is the key to power. History repeat
The problem is an INSOLVENCY problem. The debt of the western world is beyond paying off, or even servicing with market forces, so they lower interest rates, and print money to keep the system afloat. YOU DO NOT CREATE wealth printing money, you dilute the value of the money and debt, and so, the printing of money destroy the wealth and most importantly, Wages and Benefits of the poor-middle classes, so that the banks will not implode, (and they get to keep their bonuses, campaign contribution, and a fascist lock on political powers by the Bankster Politico MOB BOSSES. Thus the banksters are supported on the backs of the middle class and poor, to continue their wild derivative bets, loose money, bonuses and campaign contributions. The RICH can easily dodge the devastation.
The politicians ALL KNOW THIS, but wont be honest with the people. They would rather kick the can, with another heroin paper injection, so that the system does not implode on their watch. Problem is, every time they do it, the impact is less, to where now, they must print TO INFINITY, open ended printing.
If they cut back BORROWING or CUT BACK SPENDING, the austerity, economies implode, financial markets lock, into the economic abyss way beyond the GREAT DEPRESSION we are now in. THEY ALL KNOW THIS. They have one other choice. get another, and another, and another credit card, and print more money, increasing the debt, but putting off the day of reckoning, NOT ON MY WATCH!!!! Infinite printing leads to hyperinflation, a loss of confidence, and thus the INEVITABLE global fiat paper money complex implosion, say by 2015, absolutely destroying of paper money wealth, and the devastation of all economies. Thus, if they stop printing, it implodes now by depressionary deleveraging, a natural response to the easy money policies by the socialistic elite. Thus, if they continue to print, it implode by hyperinflation, a loss of confidence because
the paper money wont be worth a continental. THIS IS ALL VERY WELL KNOWN, and history WILL repeat itself.
The powers that be wont be honest, will do the double ducth, but you all now know.
The global economy, and particularly the western world, is absolutely DOOMED. Gold and Silver money will be the last man standing in money wealth. Gold and Silver have always risen, to replace fail fiat paper money, as the real hard money everyone trusts and can be used, as it rises, to pay off fiat paper money debt, during depressionary deleveraging that always occurs during economic down turns, and that is why, gold and silver do well, in both inflationary and depressionary times, but not in good fiat paper money times, eg 1990s. Governments will not do the right thing, ditch socialism and paper money, to minimize the impact and pain to come, as an economic depression will IMMEDIATELY occur. NOT ON MY WATCH!!!! (is the watch word) They are cowards, and so are the people. And as the crisis continues to unfold, these politicians, will start wars, to distract the people, because, as we all know, no crisis should go unexploited for political power.
What to do? The rich are moving into bullion, finally, they aint that dumb, though I wonder at times, and only the small guys out there are hesitating believing MSM BS about risks, the smart money is making a move NOW finally, even though real real smart guys, like James Dines, got in 10 years ago, because they got vision and understand history, but at some point in time, mom and pop will get it to, big time as the paper implodes, and there will be bank runs, lines at coin shops, riots in the streets, tanks on wilshire blvd.
If you dont have wealth for these rainy days, soup lines are your future, so be good little socialistic pigs and get ready to feed at the trough, in salute to socialistic fascist elite you jerks voted in. If you do have wealth, get into hard assets, in your possession, out of the system, and that include real estate (now bottomed, particularly farm land so ya can eat), bullion, gems, paintings, etc. Have a nice decade, get some pop corn, this is going to be WILD!!!!!!!!
Ben Bernake is a lying thief, as they all in DC are. Now you all get this straight, Ben Bernake, FED bank chairman and counterfeiter in chief, said ALL YEAR LONG, no more QE (monetization of debts, printing money). You get that? Do you really get that?
Quote: It is getting very close to the time of blood spilling with US tanks on Wilshire Blvd. Maybe this decade. Bernake will kick the can, no choice, and print more electronic money, until the fiat paper money is of no value, economic devastation, riots, and the implosion. And ya can blame it on the totalitarian socialist fascist pigs in DC destroying, day by day, our freedoms from government. Its getting close to REVOLT against our DC enslavers.
Freedom Loving Americans may consider weather its time to REVOLT, because the vote, (alla the tea party, and national debt raising again) aint worth do do.
Ponzi, Madoff & Bernake
Pyramidal ponzi schemes eventually collapse under exponentiating demands for new money. Ponzi and Madoff ponzi schemes, defrauding investors, finally collapse. The USA operates the grandest of ponzi schemes, using IRREDEEMABLE bank notes, (Federal Reserves Notes). Meaning you can not redeem them at the bank, and are as such, PER SE frauds upon all US bond and dollar holders, as notes should be redeemable. But they are not redeemable. They are merely pieces of paper with interest rates attached, now essentially zero. The US Government must necessarily borrow more and more and more money each year, just to keep the ponize scheme going, supported by bullion bank commodity manipulations, MOPE (management of perspective economics), and continue calculus changes of economic statistic to fool the people over and over again, with debt monetization and quantitative easing, and all the other buzz words of THE BANKSTERS.
The mounting government debt can not be stopped. Politically, the politicians, BOTH PARTIES, have ruined us all. The implosion of the US dollar and the concomitant implosion of the US economy is certain, less the ponzi scheme be stopped, dead in its tracks, with at least 5 years of economic depression resulting. But how could it be possibly stopped, with all the HOPE AND CHANGE government deficit spending? It cant. Not even the Republicans are brave enough to suggest the demise of all federal social programs, necessary. The US dollar, having already lost 95% of its value over the last 100 years, under the Federal Reserve management, is going to zero. Protect yourselves, my fellow countrymen from the abuses of the FED printing presses. Get out of dollars and into hard assets, such as, farm land, bullion, commodities generally, and blue-chip stocks particularly on life necessities. YOU ALL HAVE BEEN WARNED.
US Government Supports Inherent Worthlessness
Physical demand for precious metals is very strong on the streets of the good old USA. Americans understand paper money, but deep down, they also trust the value of gold and silver. But a funny twist occurred in my 401(k), which is now my 201(k), the K is gone. There are no more 24K contributions. The US government allows for income tax deductions for contribution to your retirement account. Gold, Silver and Platinum Eagles are recognized as legitimate IRA investments and contributions. The US Government, is such a pal, right? Not so fast.
A funny thing happened on the way to the MINT, to pick up some more Eagles for the golden years, they have virtually closed their doors on Eagle deliveries. Some say that this is an orchestrated attempt to keep bullion out of the hands of the people, so that the people must depend exclusively on fiat money for wealth preservation. Some say this is part of enslaving Americans by the Government's controlled fiat money and companion tax regime. Others say the lack of Mint deliveries of eagles is a way to reduce demand of bullion and thereby prop up the dollar and suppress gold and silver prices. If the Mint is not going to deliver eagles in serious quantities, as they are more than capable of doing, what other currency, beside the dollar, is allowed in your IRA. Bullion bars, to my knowledge, are not part of the IRS recognized stores of wealth for IRA contributions. When the Mint shuts down substantial deliveries of IRS recognized IRA eagle coinage, while not allowing retention of the bullion bars in your IRA, the Mint, in combination with the IRS, both treasury facilities, are in affect suppressing bullion prices and forcing people to hold fiat dollars for their GOLDEN years, whether they want to or not. We are stuck with it, and they will make sure we stick with it. Also, the treasury, using its Mint and IRS enablers, can do this with impunity, as the courts have declared the recognition of fiat as lawful money. The Treasury, IRS, Mint, as enabled by the courts, have effectively closed the Mint PM window to the folks. Ain't that special?
In the mean time, the congress sits there and does not require an audit of the nation's gold reserves, when obvious allegations of serious depletion have been boldly and notoriously made, in public, for all to see, when congress could order such an audit in a heartbeat. Something is just not right there. Maybe it is a national secret, or a national disgrace, take your pick, that no authority wants to make public the surreptitious divestment of the nation's treasure, as that might, in a day, debase fiat into oblivion, and hence, the Ft Knox audit has not been had, over the last 50 years. Ain't that special?
The Government's PPT and the FED have worked their magic, sure enough, time and time again, with their hail Mary plays near the close of the DOW each day, to prop up the markets using "intervention", to give all new found faith in those fiat dollar denominated shares. The President claims he is a free market guy, yet, but in a meltdown, intervention is necessary. So even the President of the United States is now on record that intervention is necessary. Well necessary is just a how-much indication, not that "intervention" is inherently immoral and contrary to the necessary workings of any capitalistic free market. So, get this straight, "Intervention", is DC slang and FED speak for market rigging, which just so happens to match well the SEC and CTFC do nothing enforcement of fair market laws with their see-no-evil allowance of the concentrated precious metal short positions allowed to be sustained in perpetuity, to suppress the price of gold to prop up the fiat dollar. Ain't that special?
So, let me, and YOU, get this straight, the Mint violates law and the public trust by limiting deliveries of eagle coinage, while IRS says only Eagles are the only proper precious metal IRA deduction, while the SEC and CTFC turns a blind eye to criminal manipulative concentrated shorts on the COMEX that suppresses gold and silver prices to prop up the fiat dollar, while congress does nothing to ensure and account for the nation's treasure by failing to conduct a gold audit, while the IRS and the courts agree that fiat money is the only lawful money for tax and commerce purposes, notwithstanding the plain language of the constitution, while the President said interventions are necessary thus admitting market rigging, is necessary, where the FEDs bail out the Wall Street banksters who took billions in bonuses, while the Government's plunge protection team PPT props up the general equity market to maintain our rigged markets, and all this is collectively done, in concert, to save the almighty fiat dollar from devaluation, which fiat is inherently worthless. Ain't that special? So get this straight. The entire US Government, in every sector, has been mobilized to prop up inherent worthlessness. Ain't that Special?