The Ascendancy of Gold

The Ascendancy of Gold

That bright, yellow metal that has launched countless wars and built numerous empires has started its striking come back and all because of the blow back from the vary nation that had sabotaged its initial place in the world economy.

Least we forget, it was the USA, under Nixon, which removed the US and thus the non-Soviet world off of the gold standard in 1974. It did it because the US bankrupted itself by 1972 and when the US released the dollar peg against gold, the dollar devalued in half by the end of 1973. This move than helped cement the dollar in its place as the world reserve currency and allowed the US to print its insane prosperity even as its industry and jobs fled further and further afield.

So now,we come to 2012, where the US, desperate to hold on to it illusion of wealth, in a bankrupt, de-industrialized land of massive poverty and unemployment. To do so, to have any chance of kicking the can of responsibility further down the road of history, the US must destroy any threat to the Dollar. It did this in its invasion of Iraq, in its bombing of Libya. Even as its empire collapsed under the strain of insane debts and more and more nations started using their own currencies between each other, the US lashed out diplomatically, economically and militarily, like a spoiled and enraged child.

However, the use of various, minor and not so minor currencies, constantly changing in value and linked equally to nothing but trust, as much as the Dollar itself, were and are a minor threat. As soon as harder times hit, those nations instantly rush to the Dollar, which they have always still kept in reserve, just for such instances.

But something has changed and changed indeed.

The US has cultivated its regime change war against Iran for the better part of the past decade, through the Bush and now Obama administrations, with absolutely no real change. If anything, the rhetoric of the past two years, of both branches of the One American party, have become ever more shrill and venomous.

So what changed?

The US and its fellow psychopathic travelers, the EUcrats, have decided to take the final move to fully cripple Iran, by banning or embargoing any and every company and bank and nation that has any dealings with the Iranian national bank. In other words, not only are these two police states planning on making the US Dollars and for that matter Euros, that Iran holds, inert, they plan to hold the rest of humanity hostage.

But in doing so, the Americans and the Eurocrats created the very conditions that have assured the destruction of that same Dollar and in turn its Euro cousin.

Iran, as these psychopaths like to point out, is isolated from the world. Well that is not nearly the reality, as it still carries on very active trade with Russia, India, China and Japan, not to mention close relations with a large host of South American leaders, to include the critical Brazilians and Argentinians. In truth Iran is only isolated from the Western financial institutions.

And so came the monumental announcement that Iran and India have signed a deal that oil trade will come in gold, not dollars.

While the oligarch owned American press has made light of this and has said as little as possible, the earth quake of this move has shaken the very foundation of the economic order of the West.

The effects are many fold. Directly, this has shown other nations that there is still an active alternative to the US dollar, one that is anchored in an inherent value that has proven itself for thousands of years. Gold is immune to currency shocks, it simply can not be inflationary printed at the will of politicians. Gold is also fungible across all borders, something the Iranians can then use to buy needed goods from other countries. This will in turn drive more and more nations to use gold and dump the Dollar.

As a matter of fact, quite simply, just for 2012, the Indians no longer need those $12 billion US Dollars that they will use for Iranian oil. If they sell those dollars on the markets, they further suppress the Dollar and demand for it. While $12 billion is a very small hit, there is such a thing as death by a thousand cuts.

Further, the value of gold itself will rise, with its renewed value and will further depress the value of the US Dollar, forcing the American government to print more and absorb a greater inflation rate.

If, over the next couple of months, this begins to catch on with other nations, the Dollar's death knell may have already sounded.

Who Owns the US Dollar

At first glance, this would seem like a rather silly, stupid and pointless question. Why, the average person would answer, the American people own it. Or rather, if one had to get more technical, the American government, which is in turn, being a Republic, owned by the people, one in the same.

But, as most such simple seeming things in life, the truth is neither simple or straight forward and the answer is neither silly, stupid or pointless, but indeed is critical to the well being of nations and hundreds of millions if not billions of people.

For the truth of it, neither the people of America nor the government of America owns the US dollar. How’s that, you say? Well, if one was to really dive just a bit deeper, before hitting the rocks just under the US greenback pond, one would quickly discover that the actual US dollar has not existed since 1913, where it was effectively killed. What is now called the US dollar is actually a Federal Reserve Note, says it right at the top of each bill. Why does that matter? Read on.

First of all, a US dollar, as something before 1913, was an instrument of wealth. That piece of paper, or just as common a gold or silver coin, had actual worth, anywhere in the world. It was worth its weight in gold, be it actual gold or paper. A Reserve Note, on the other hand, is a debt instrument, which not only is not wealth but is the opposite of wealth. Its very existence is a sucking sound on wealth, wealth being transferred, in this case not to the poor masses (as defined by defunct and unworking Marxism) but to the top 1% (equally defunct and unworking, but its only now starting to go that way).

How is that you say? Why quite simple, but for that answer, again, we must follow the rabbit down the rabbit hole.

The Federal Reserve, unbeknownst to many outside the US and almost everyone in the US, is NOT a Federal, that is, government entity. It is about as governmental as Federal Express. In truth, it is a wholly private, untraded, and thus unsupervised, banking corporation, with a secret cabal of owners. One can assess some of those probable owners by those corporations/banks who were bailed out, while others were allowed to die.

Effectively, this private banking concern, the only one of its kind in the world, has the exclusive right to make the US dollar, or rather the Federal Reserve Notes (debt) called the US dollar, the one and only legal tender of America. Now, when the US government wants or needs money, it can not simply “have” money. Put aside the notions about not starting the printing presses and so on, the simple fact is, not only can the US government NOT coin currency, it can not just have it either. Remember, these are Reserve (debt) Notes.

So, when the US government wants money, the Treasury Department prints bonds (promissory notes aka debt obligations) and “sells” these to the Federal Reserve (private banking concern), which than “gives” the US government Federal Reserve Notes (tender). Thus the money the US government and thus in turn, the US people and all peoples and nations in the world who hold dollars (and why do you think they push these on the world so much?) are debt instruments owed to the Federal Reserve, by the holders. Thus, sooner or later you must return them, plus a percentage. Of course, to the Federal Reserve, the percentage is better.

But, let us take this one step further, and here is the really scary part. To note, no one’s logic ever seems to go this far, so for many, this may be your final Eureka moment, when you figure out just how screwed and owned you really are.

If the only legal tender is the Federal Reserve Note and it must be paid back at its face value plus percent, again, in Federal Reserve Notes, well how do you do it? Let me explain. If the Fed offers you (like a crack dealer) $100 million Federal Reserve Notes and you must pay it back, sooner or later with a 2% add on, thus, let us say, in 1 year, you will owe and must pay $102 million Federal Reserve Notes, well, how do you do it? Simply put, you only have $100 million, where do you get the other $2 million Federal Reserve Notes? You can not print them, you can not mint them, well, you have no choice but to ask the Federal Reserve to print them. Thus you get your $2 million more to pay back the debt, but that itself has a 2% attachment, that again, you must ask the Fed to print and at a percentage and so on into perpetuity….well not really, because in a rather short order, the Fed and its owners will own everything.

Rarely has so brilliant and patient a ponzy scheme been dreamed up than this.

And by exporting it overseas, they are sucking in the rest of the world’s finance, into their ever greedy, chubby and purely evil little hands.

So, leaders of the world, why the bloody Hell, are you giving away the future of your peoples and nations to this tiny group of American parasites, who have already bleed the US dead dry, where the top 1% holds over 60% of that nation’s raw wealth?

Cut them off and starve the beast.

Anglo Finance on the March

This week has seen an unparalleled assault upon the Euro by the Anglos. But, like most things, this is only another play in the dollar/pound death throws, aimed to take everyone down and drown them in blood, before they themselves die.

As everyone knows, the Anglo finance has been a cancer upon humanity for well over a hundred years now. It is this group, as I mention in The Six Evils of Wall Street and the Suffering of Humanity that brought us the Communist Revolution in Russian, the Great Depression world wide, the Rise of Hitler and WW2 (from which they again profited handsomely), the Cold War, the Asian Flu, the Rape of Russia and now the Greater Depression.

In this last bought, feeding the world lies and hoodwinking everyone, using their good name (why they still have one is pure PR), the Anglo unloaded poison on every economy in the world. Hundreds of millions have lost their jobs and livelyhoods, while the Anglo bankers laugh in their palaces. Tens of millions have lost their lives, not that it matters to these spawn of Satan.

But to survive, these elites must have more credit, more life blood, but that can only happen if there is no other choice than the bankrupt dollar and pound. To that end, the assault on the Euro has been long in coming.

First, Goldman Sachs, the vampire squid rapped around the face of all humanity, early on, helped crooks in the Greek, Irish, Portugees and Spainish governments hide their debts, for a price, knowing this will undermine the Euro, when the Anglo sponsored con game falls. When these nations started to fall, but were not enough to topple the Euro, stage two started.

Stage two came into effect this week, when US rating firms started a mass devaluation of the credit ratings first of Greece, than of Portugal and now of Spain, with Ireland, Iceland and Itally on the horizons.

Now, two questions are obvious: one: if these nations deserve to be down grades, whey are the US and UK still enjoying AAA ratings? The UK deficit, after nationalizing half their banking system, is 12.6%, .1% less than Greece. The British are printing cash as fast as they can, while their zero interest rate is bankrupting their own seniors. But they have a AAA rating? And the Americans? Hell, a nation that has present and future debt obligations of over 500% of their GDP, who is running deficits 150% higher than their budget is AAA? A nation that is a debtor to every third world hellhole in the world, while running only one industry: military, and importing everything else, is AAA?

The second question is: after all the lieing that these rating agencies did to create this Greater Depression, why does their ratings, or opinions (for what is their ratings but opinions) still matter? They are thieves and liars, why listen to them?

But why do this? Because without the Euro, investors will be forced to buy dollar and pound bonds and thus help, if for a little further, prop up the Devil and his Anglo puppets.

Why a Strong US Dollar Foreshadows Economic Doom in 2010

Normally, in what passes for orthodox economics, a strong currency for a consumer nation is a good thing, a positive development. And America is the biggest consumer, and one of the smallest producers, in human history.

However, in these turbulent times, this economic train wreck that has been on an acceleration course since mid 2007, a strong currency or rather, specifically, a strong dollar is an absolute disaster. Allow me to explain.

Nothing has actually changed in the US economy since the absolute collapse and nationalization of the US banking firms, and along with it the British banking houses, of 2008. Indeed, in America, the exact same games that brought down the private banks are still being played by the now government owned (or is it that they own the government...that is for another thesis) entities and this is called now called recovery. Case in point: several major banks are paying back their TARP funds and the US press is screaming to the high heavens about the wisdom of the Marxists running America. True, many of the fools that are still the majority, though shrinking, of the electarite, buy into this, but let us look closer. The TARP fund is being paid back in one of two ways: 1. unspent TARP monies are being given back to the government (note I do not say owners, since the taxserfs will never ever see this cash again) and this is called recovery or 2. the banks are selling new stock through new IPOs to pay back the debt, which in turn delutes the value of the old stock which is held by the government, thus giving with one hand and mugging with the other, again, this is called recovery. None of the other US economic indicators have improved, especially when DC's fluff and out right lies are removed.

Now having established the continued progression of the US financial collapse, why than has the USD grown in strength so much in the past 2 weeks and continues to do so? For that we must look a the world wide picture and to the foundation of the next tidalwave that is about to sink us all.

The great Anglo Heist, the out right con job and mugging of the entire world by the Anglo Saxons (US/UK) has kicked out the supports of a lot of other nations, many of whom were dancing on supports of smaller EU and Gulf Arab con jobs. These have spent all of 2009 trying to balance themselves on a single stilt that itself is rotten through and through and again, the Western press has called this recovery or at least survival.

That all is about to change and the first dropping shoe, in what is about to be a shoe storm, was Dubhai. Simply, it defaulted on most of its debt and told its debt owners that it was their fault, which it was also, for giving it money and not its fault, is the heroine junky ever at fault for his addiction -- well yes, for spending it on failed indoor winter wonder lands, artificial islands and hundreds of near empty sky scrappers.

Following this came the news of Greece's down grading and eminent demise. Greece is part of the PIGS (Portugal, Ireland, Greece, Spain) all of whom are on the edge. But in Europe, they are not alone, they are in a club that also includes Ukraine, Belarus, Lithuania, Latvia, Estonia, Hungary, Iceland and possibly Denmark, Poland is also well on its way with massive government deficits for a "recovery". Healthy or recovering EU economies are faced with massive losses and bailing out nations who, like drowning men, will pull the healthier economies into the Abyss with them.

Behind these stand other nations, such as Georgia, Turkey, Venezuala, Mexico, Columbia, Nicaragua, Argentina, as well as much of Africa.

Than there is China, who has taken bubble blowing to unprecidented levels. It has masked over capacity by doing something incredibly stupid, increasing that capacity further and further, and using the extra capacity in the creation of yet more capacity. Sure, this puts off judgement day by a few years, but it is coming and 2010 will be that day. World demand has not only not returned to the levels of 2007, and Chinese production capacity is well above what it was in 2007, but what demand has remained, is now being guarded by every economy to make sure its means of satisfying that demand, and thus providing jobs, stays at home. China, reacting like a blind sided, and spoiled brat who is used to everyone pandering to it, has swung out at the world and wound up in trade wars with the EU, US and Russia. Of course, this only further cuts demand for that ever expanding capacity. Judgement day is indeed here, as the majority of China's citizens, who make up the shoeless peasants and the near slave labourers in the plants, will never be able to afford what they produce.

So, with all this happening, nations are running to buy the USD in a false hope of its stability. This in turn strengthens the USD, killing further any recovering local industries, while giving government the means to further indebt the whole of the nation. With moves like their new socialist health care and Cap and Trade, the Americans will smother their own industry, creating millions more unemployed and raising anger to a boil, all ahead of the November 2010 parlimentary elections. The temptation to spend with abandon, to ease the anger, at least until the elections are over, will be impossible to resist.

The hangover that will be felt, first by the Americans, than by anyone who owns their debt, pretty much everyone, on January 2011, will make every other year of the past 1,000 seem like a warm spring day.

Is America's Ft. Knox Full of Fake Gold?

Considering that Ft. Knox stocks gold for not only the USA but also for many countries, international relations could very well be in jeopardy, not to mention many economies. The question of whether officials at Ft. Knox are storing tungsten filled gold bars, so called "salted" gold, which hold a small fraction of the normal cost of the bullion, were recently brought up by an American media company, CNBC, during an interview of Howard Ruff by Joe Herman.

Howard Ruff is a financier investor and advisor who advocates for hard currency, that is, currency backed by valuable commodities, such as gold or silver. He is also an economics writer with many published works, who is an expert on hyperinflationary economics.

Also on another American media company, Fox, the issue was also brought up, in this case, whether there still is gold at Ft. Knox, an institution that has not had an independent audit for 50 years. As the interview states, much of the gold may not be there, or may not even have been there in many years.

http://www.youtube.com/watch?v=sQgciOPMyMI

While these have been conspiracy theories for many decades, the questions have now gone mainstream. At $16 per kg, and with the exact same density and weight, as gold, tungsten makes for a perfect filler. Simply weighing a gold bar, with cutting it, will not allow for distinction from true bullion.

Such a breach of public and international trust may doom more than just key relationships, but also the international credit rating of the US, which would suddenly find itself in hundreds of billions of dollars of additional debt, while allied governments and economies who relied on that gold would quickly start to fold.

One of the models upon which America hails itself: Athens, had done the exact same thing. After the first Pelopinesian Wars, Athens guarded the island treasury of its alliance of city states. Instead of acting in good faith as guardian, it quietly stole from the vaults and built many great works, such as the Parthenon, with that stolen gold. Of course this drove many of its allies to side with Sparta in the next war.

Again, as stated, the facility of Ft. Knox, has not had an independent audit in over 50 years and as such no one really knows what is or is not there. The US Congress has demanded audits, but just like the Federal Reserve, the Treasury Department has refused to tell the people of America and especially in this case, the World, the truth. Requests by members of the American parliament to physically inspect the facility, have equally been turned down for almost 20 years.

If the members of Congress are not allowed to find out the truth and there is no accountability in the American government, than it is truly time for an international organization, backed by all interested and affected parties, such as the UN or World Bank or IMF to demand a full inquiry and pressure the rogues in the Obama Regime to come true.

The Lands of Sponge Bob Square Pants and His Wonderful Bubbles

Like the American cartoon that has flooded our televisions, for those who have cable and get the US channel Nickelodeon, and the minds of our children (yes I saw a Sponge Bob walking around taking photos with tourists on Red Square, right beside the Stalin and Lenin look alikes...very disturbing), watching the American financial leadership is like watching the Sponge Bob show. I am still assigning roles, mind you, but Bernanke, the chief of the private pirate bank called the American Federal Reserve is definitely Squidward the Squid and Gerthner head of the misnamed Treasury Department (a ministry that has no treasure outside of little pieces of debt paper it sells for other paper) is Sponge Bob, the ever eager, ever ready, ever energetic numb skull who loves most of all to blow his wonderful bubbles.

Not to be out done by the previous generation of American and English bubble blowers, who for the past 20 years have solved one train wreck after another, by constantly switching from one rail road to a yet bigger gage rail road, pulling a yet a bigger train to wreck. Now, with the US/UK and really the world economies in free fall from the insane housing/hedge fund/debt bubbles, these slap stick comedy characters have decided to solve it all with one more, one great, one magnificent, stupendous and stupefying bubble of all bubbles. But unlike Sponge Bob's $.25 bubbles, this mother of all bubbles (mother as Lilith was/is the Mother of all Monsters) is a King Bubble built upon tens of trillions of dollars of created debt and cash, all manufactured in a short 10 months and still being churned out at an incredible rate.

The mother of all this is the creation, for the first time, of the USD Carry Trade. What is a Carry Trade? It is where one can borrow money from a country at a zero or near zero rate and invest it with abandon into other higher paying investment and than repay the original debt for little loss. Add to this buying on leverage and you have a bigger disaster than ever.

What? Leverage buying is alive and well?

Well yes, absolutely. The Yanks and Limeys, you see, have done absolutely nothing, zip zero nothing, to fix the issues that got them and then pulled all of us, into this fine mess. Instead of fixing the giant corruption, the capitalism, which is nothing more than corporate fascism and instead of reimplementing real free markets, real free enterprise and a mercantalistic system, they have instead told their biggest thieves and destroyers of the common man's life that hay: You are to big to fail: so here, have plenty of more cash and debt and we will continue selling it to the suckers and fools of the world. In this category, I place our central bank, which for the life of me, I will not understand why, continue to invest in American debt.

Thus they created a giant American carry trade, which in turn has spurred a giant run on commodities, yet again, a continued selling of toxic assets and a new housing boom in the US. Yes, all those old bubbles are back, but linked together by the American Carry Trade monetary bubble, creating a yet even bigger disaster for the world. But how bad could a carry trade bubble collapse really be? Ask the Japanese, their decade old carry trade bubble collapsed a year ago and in the process, they lost 38% of their manufacturing output in 4 months and for the first time since the end of WW2, have shanty towns.

Of course the US can not loose the equivalent amount of industrial production that Japan lost, it no longer has it, it will have to start an industry borrowing, just to have enough to shut down and foreclose upon.

This will of course, again pummel our economies, as our central banks and investment funds, for some God forsaken reason and blind faith in American debt, continue investing in what has become the world's biggest money pit. But for all our suffering, the darkness settling on the Anglo world will be much, much worse.

Is it any wonder than, that my friends and contacts in America tell me everyone is buying up ammunition and weapons in insane numbers?

You Bet a Weak Dollar Drives Inflation

So here I am in this position as a global sourcing manager and I've got news for you, a weak dollar is going to kill the American economy. What you say? How could that be? Why the Fed swears up and down that it's doing this to save the US economy.

Well the problem is, the Fed has built a house of cards over the years, with a massive creation of M3 (cash) flooding the world, very low interest rates and no regulation of lending along with low amounts of reserve cash at banks...all to create a perfect storm. Of course, for those who create the money (the private banking system called the Federal Reserve) this is a windfall that's moving your wealth to their pockets...suckers.

Now, back to this driving inflation thing and the weak dollar. As most people learned in the one or two economic classes they might actually have taken, a weak currency allows a nation to export more, especially finished goods. Alas, that's under normal circumstances and there is absolutely nothing normal about the modern American shamonomy. With most of the US' manufacturing base overseas there is little to either 1. export or 2. export that does not require at least some of the components to be manufactured globally and brought back to America.

Again, back to the sliding dollar and my suppliers. Well now, I've just gotten done with several supplier conferences and guess what: I've got suppliers from India to Indonesia, from Italy to Canada asking for price increases from 7-15%. Yup, ghouls and goblins (it is Halloween) this is called inflation, inflation driven by global manufacturing and the falling dollar. And while we here in what's left of American industry might still be able to fight off these full increases it should never be mistaken for what it is: a rear guard action and that's absolutely what it is, a fighting retreat just made worse by Mr. Bernanke and the interest knife he wields. Never mind how he'll compete for investments for Uncle Spend Like a Drunken Sailor's budget deficits when competing with much higher European and Japanese rates.

So boys and girls, ghasts and ghosts, while the shock might not be hitting you yet, just give it another 3 or so months and you'll definitely have a yule tide log...that'll cost you 15% more.