Filed under: Andrew Maguire, Big Banks, corruption, CTFC, Dollar, Federal Reserve, gold, Goldman Sachs, Greenback, Inflation, LBMA, madoff, manipulated market, manipulation, market manipulation, scam, scandal, silver | Tags: gold manipulation, silver manipulation
MUST READ!
Goldman Sachs Whistleblower Exposes Gold and Silver Price Manipulation by JPMorgan Chase
Michael Snyder
Black Listed News
April 12, 2010
For a long time many of us have had very serious suspicions that the prices of gold and silver were being highly manipulated. But now, thanks to the mind blowing testimony of one very brave whistle blower, the blatant manipulation of the world gold and silver markets is being blown wide open. What you are about to read below is absolutely staggering. Once the American people learn how incredibly corrupt the world financial system is, it is going to change everything. The government that we are all trusting to guard the integrity of the financial system is failing to do that job. It turns out that the Commodities Futures Trading Commission has been sitting on solid evidence that the elite banking powers have been openly and blatantly manipulating the price of gold and silver. Even though they were basically handed a “smoking gun”, they have done absolutely nothing with it. But now the information has gone public and the CFTC is red-faced.
Back in November 2009, Andrew Maguire, a former Goldman Sachs silver trader in Goldman’s London office, contacted the CFTC’s Enforcement Division and reported the illegal manipulation of the silver market by traders at JPMorgan Chase.
Maguire told the CFTC how silver traders at JPMorgan Chase openly bragged about their exploits – including how they sent a signal to the market in advance so that other traders could make a profit during price suppression episodes.
Traders would recognize these signals and would make money shorting precious metals alongside JPMorgan Chase. Maguire explained to the CFTC how there would routinely be market manipulations at the time of option expiries, during non-farm payroll data releases, during commodities exchange contract rollovers, as well as at other times if it was deemed necessary.
On February 3rd, Maguire gave the CFTC a two day warning of a market manipulation event by email to Eliud Ramirez, who is a senior investigator for the CFTC’s Enforcement Division.
Maguire warned Ramirez that the price of precious metals would be suppressed upon the release of non-farm payroll data on February 5th. As the manipulation of the precious metals markets was unfolding on February 5th, Maguire sent additional emails to Ramirez explaining exactly what was going on.
And it wasn’t just that Maguire predicted that the price would be forced down. It was the level of precision that he was able to communicate to the CFTC that was the most stunning. He warned the CFTC that the price of silver was to be taken down regardless of what happened to the employment numbers and that the price of silver would end up below $15 per ounce. Over the next couple of days, the price of silver was indeed taken down from $16.17 per ounce down to a low of $14.62 per ounce.
Because of Maguire’s warning, the CFTC was able to watch a crime unfold, right in front of their eyes, in real time.
So what did the CFTC do about it?
Nothing.
Absolutely nothing.
Which is extremely alarming, because the size of this fraud absolutely dwarfs the Madoff or Enron scandals. In fact, this fraud is so gigantic that it is not even worth comparing to any of the other major financial scandals of recent times.
But Maguire did not give up. He sent several more emails to the CFTC detailing the open manipulation of the gold and silver markets.
The CFTC did not reply.
Finally he sent them a final email: “I have honored my commitment to assist you and keep any information we discuss private, however if you are going to ignore my information I will deem that commitment to have expired.”
The reply by the CFTC?
“I have received and reviewed your email communications. Thank you so very much for your observations.”
No action.
No acknowledgement that anything was wrong.
No recognition that a massive crime had been committed.
Fortunately, that was not the end of it.
On March 25th, the CFTC held a hearing on alleged manipulation in the gold market by the major banking powers.
Maguire wanted to testify during that hearing but he was not invited.
But William Murphy, chairman of Gold Anti-Trust Action (GATA), was invited to testify. GATA has been compiling data on the manipulation of the gold and silver markets for quite a long time now.
Murphy was only given five minutes to deliver his testimony. He raced through his presentation so that he could get as much information on the record as possible.
Very curiously, the live television broadcast of the CFTC hearing suffered a technical failure the minute before Murphy began his testimony. The technical failure was corrected the minute after Murphy was finished.
Coincidence?
Well, it turns out that there were are lot of coincidences surrounding this hearing.
But we’ll get to that in a minute.
When Murphy finished his statement, the panel asked him for some hard proof of market manipulation. Murphy shocked the panel by revealing the name of Maguire and explaining how Maguire had informed the CFTC Enforcement Division of the market manipulation that was taking place by JPMorgan Chase. The CFTC panel seemed stunned by the revelation and seemed reluctant to learn any further and asked nothing else about it.
Video of Murphy’s revelation to the panel is posted below….
In another “coincidence”, Maguire and his wife were subsequently injured and hospitalized when their car was struck by a hit-and-run driver in the London suburbs.
When a bystander who saw the “accident” tried to block the other driver from getting away, the other driver accelerated directly towards the witness, forcing him to leap out of the way to avoid being hit. The hit-and-run driver’s car then hit two additional cars as he left the area.
But Maguire and his wife were fortunate.
In the past, other would-be whistle blowers that had evidence regarding the manipulation in the gold and silver markets died in “unusual accidents” before they were able to bring their evidence to light.
But there were even more “coincidences” surrounding this hearing.
A week before the hearing, the CFTC announced that they had had a fire in the room where its gold and silver records are held.
Isn’t that convenient?
In addition, after the hearing was over, Murphy was contacted by a number of major media outlets for interviews.
Within 24 hours, every single interview was cancelled.
Every single one.
Is that a coincidence too?
It appears that some very powerful people do not want this information to get out.
It also shows how corrupt the mainstream media has become.
This is a story that is so much bigger than the Madoff scandal or the Enron scandal that it is not even funny.
And yet the mainstream media is avoiding it like the plague.
But there were additional bombshells that came out during the hearing as well.
During the hearing it was revealed that the gold manipulators have accumulated a huge short position in gold and that these huge short positions are “naked”, which means that these positions are not hedged.
These massive short positions have put some of the largest financial institutions in the world in an extremely vulnerable position.
In addition, it has now come out that most “gold” that is traded is not backed by the actual metal itself. For years, most people have assumed that the London Bullion Market Association (LBMA), the world’s largest gold market, had actual gold to back up the massive “gold deposits” at the major LBMA banks.
But that is not the case.
People are now realizing that there is very little actual gold in the LBMA system.
When people think they are buying “gold”, they are actually just buying pieces of paper that say they own gold.
In fact, during the CFTC hearings, Jeffrey Christian of CPM Group confirmed that the LBMA banks actually have approximately a hundred times more gold deposits than actual gold bullion.
Uh oh.
So what happens if everyone decides that they want actual physical delivery of their gold?
It would be such a mess that it is painful even to think about it.
The truth is that right now most of the trading activities on the London exchange are just paper for paper.
But people get into gold because they want to be in a real commodity.
In fact, there are thousands of clients around the globe who think they own huge deposits of gold bullion, and are being charged large storage fees on that imaginary bullion, but what they really own are a bunch of pieces of paper.
If there comes a time when everyone starts asking for their gold it is going to create a squeeze of unimaginable proportions.
Maguire explains this situation this way: “for 100 customers who show up there is only one guy who is going to get his gold or silver and there’s 99 who will be disappointed, so without any new money coming into the market, just asking for that gold and silver will create a default.”
The truth is that it is absolutely impossible for the LBMA to ever deliver all the gold and silver owed to the owners of contracts.
Yes, it is a gigantic mess.
But this type of things is not entirely unprecedented. For example, Morgan Stanley paid out several million dollars back in 2007 to settle claims that it had charged 22,000 clients storage fees on silver bullion that did not exist.
But the scale of the fraud going on now is absolutely mind blowing. The following video contains footage from the hearing related to these issues….
So what is the bottom line?
The bottom line is that the precious metals markets are cesspools of fraud and manipulation.
The markets have been suppressed by the major financial institutions for years, and this has created the potential for a “squeeze” in the precious metals markets that could send the prices of gold and silver into the stratosphere.
You see, the reality is that there would be no gold left in the entire world if all the Gold ETFs (Exchange Traded Funds) asked for physical delivery.
Are you starting to get the picture?
In fact, Maguire claims that the naked short selling scam by the major financial institutions is well into the trillions of dollars, making it by far the biggest financial fraud in history.
Maguire calls what has been going on “financial terrorism”, and he accuses the financial institutions involved in this fraud of “treason” for putting national security at risk.
And national security is at risk.
Because if the true extent of this fraud comes out, it could collapse the entire financial system.
If you have never heard an interview with Andrew Maguire, we encourage you to listen to the audio interview posted below. It will really open your eyes to what is going on in the precious metals markets….
The Century’s Biggest Fraud Revealed
This is one of the biggest financial stories of the decade. Because it is complex, most Americans will not understand it. But the fraud and manipulation in the gold and silver markets has the potential to cause a massive economic collapse even without all of the other factors talked about on this blog.
Some very powerful people have been doing some really, really bad things. Once people understand the truth, they will never look at the financial markets the same way again. Already, faith in the major financial institutions of this country has been shaken by revelations about what has been going on over at Goldman Sachs. The American people have no more appetite for any more financial scandals or for any more Wall Street bailouts. But if the fraud and manipulation taking place in the precious metal markets ever gets totally exposed it will change the U.S. financial system forever.
Please get this information out to as many people as you can. There are a number of very powerful people who are not going to be pleased that sites like this are attempting to get the truth about this massive scandal out.
Filed under: Barack Obama, bolivar, Caribbean, chavez, Chile, CIA, Colonialism, Coup, Cuba, declaration of war, destabilization, Economic Collapse, economic war, Economy, Empire, future war, gas prices, george soros, Honduras, Hugo Chavez, hyperinflation, Inflation, latin america, manipulated market, market manipulation, military base, Military Industrial Complex, NGOs, obama, obama deception, obamas war, Oil, resource war, secret war, South America, USAID, Venezuela, war provocation, White House, zelaya | Tags: ALBA, Bolivarian Alternative for the Americas, CITGO, Curaçao, national endowment for democracy, NED
Obama authorizes covert economic war against Venezuela
Wayne Madsen
Online Journal
January 21, 2010
WMR’s intelligence sources have reported that the Obama administration has authorized an economic war against Venezuela in order to destabilize the government of President Hugo Chavez.
After a successful coup against Chavez ally, President Manuel Zelaya of Honduras, and the very thin 51-49 percent electoral win by Chile’s billionaire right-winger Sebastian Pinera on January 17, a buoyed Obama White House has given a green light for political operatives in Venezuela, many of whom operate under the cover of non-governmental organizations (NGOs), to set the stage for massive street demonstrations to protest Chavez’s devaluation of the bolivar, Venezuela’s currency.
Chavez devalued the bolivar by 50 percent to make Venezuelan oil exports less expensive, thus boosting revenue for his country. However, the devaluation has also seen price rises and inflation in Venezuela and the CIA and its subservient NGOs have wasted little time in putting out stories about consumers rushing to the stories ahead of an increase in consumer products, with imported flat-screen televisions being the favorite consumer item being hyped by the corporate media as seeing a huge price increase and long lines at shopping malls favored by the Venezuelan elites.
The state has exempted certain consumer goods such as food, medicines, school supplies, and industrial machinery from being affected by the bolivar’s devaluation through a different exchange rate and price controls, but it is the price increases on televisions, tobacco, alcohol, cell phones, and computers that has the anti-Chavez forces in Venezuela and abroad hyping the ill-effects on the Venezuelan consumer.
To battle against businessmen who are trying to capitalize on the devaluation of the bolivar, Chavez has threatened to close and possibly seize any business that gouges the consumer by inordinately raising prices. The first target of a temporary closure was a Caracas store owned by the French firm Exito.
International investment analysts praised Chavez’s decision to devalue the bolivar and said the decision was overdue considering the fall of oil prices worldwide. However, the CIA and NGOs, many aligned with George Soros’s Open Society Institute and the U.S. National Endowment for Democracy are planning large street demonstrations against Chavez’s handling of the economy.
National Assembly elections are scheduled for September but the Obama administration has decided that if Chavez can be removed now, his allies in Bolivia, Ecuador, Nicaragua, Paraguay, and some Caribbean island states will quickly abandon Chavez’s alternative to American-led Western Hemisphere financial contrivances and free trade pacts, the Bolivarian Alternative for the Americas (ALBA).
The Obama planners then see Cuba, once again, being isolated in the hemisphere and ripe for increased U.S. political pressure. Cuba was placed on the list of 14 countries requiring additional airline passenger screening as part of the policy to pressure and isolate Cuba. There is a possibility that with the outbreak of U.S.-inspired violence in the streets of Venezuela, that nation could join Cuba on the list as the 15th country.
The Obama administration’s assault is two-fold: economic and political. Pressure is being applied against the gasoline chain Citgo, which is owned by the Venezuelan state oil company, PDVSA, and Venezuelan investment favorability ratings. Politically, the U.S. is overtly and covertly funneling money to anti-Chavez groups through the National Endowment for Democracy (NED), U.S. Agency for International Development (USAID), and groups affiliated with George Soros.
There is also a small military component to Obama’s strategy of undermining Chavez. U.S., P-3 Orion overflights of Venezuelan airspace from bases in Aruba and Curacao are designed to intimidate Chavez and activate Venezuelan radar and command, control, communications, and intelligence (C3I) systems to gather electronic and signals intelligence data that would be used by the United States to jam Venezuelan military networks in the event of a U.S.-inspired uprising against Chavez by U.S. loyalists embedded in the Venezuelan military, police, PDVSA, and media. The U.S. is also stoking cross-border incursions into Venezuela by Colombian paramilitaries to gauge Venezuela’s border defenses. Last November, Colombian right-wing paramilitary units killed two Venezuelan National Guardsmen inside Venezuela in Tachira state. Weapons caches maintained by Colombians inside Venezuela have been seized by Venezuelan authorities. Venezuela has also arrested a number of Colombian DAS intelligence agents inside Venezuela.
Obama signed a military agreement with Colombia that allows the United States to establish seven air and naval bases in Colombia. An additional agreement by Obama with Panama will see the U.S. military return to that nation to set up two military bases.
It is estimated that some 25 percent of Venezuelans are likely Fifth Columnists who would take part in a revolt against Chavez. Many of them based in the Venezuelan oil-producing state of Zulia and the capital of Maracaibo, where successive U.S. ambassadors in Caracas have stoked secessionist embers and where the CIA and U.S. Defense Intelligence Agency have concentrated much of their efforts. In November, Venezuelan police arrested in Maracaibo, Magaly Janeth Moreno Vega, also known as “The Pearl,” the leader of the right-wing United Self-Defense Forces of Colombia (AUC), which has been directly linked to Colombia’s pro-U.S. President Alvaro Uribe and members of his government, including former Colombian Attorney General Luis Camilo Osorio Isaza, appointed by Uribe as Colombia’s ambassador to Mexico.
Filed under: 9/11, american revolution, aristocrats, Bank of England, Big Banks, bloodline, Bohemian Grove, brain manipulation, brainwashing, bush, cathy o'brien, central bank, Child Abuse, child porn, child sacrifice, child sex slavery, clinton, Conditioning, Congress, depression, devaluation, Dictatorship, education, Empire, Eugenics, Fascism, Federal Reserve, Gerald Ford, global government, globalist elite, Goldman Sachs, Great Depression, Illuminati, indoctrination, internationalist, jesuit, manipulation, market manipulation, mason, nation building, New World Order, NWO, obama, occupation, one world governmnet, Pentagon, Population Control, programming, progressives, Propaganda, queen, rape, ritual abuse, ruling class, secret meetings, Secret Societies, Senate, sexual abuse, slavery, softkill, Stock Market, svali, Torture, vatican, Wall Street, whistleblower, Zionism | Tags: Dissociative Identity Disorder, obama bush related
Is the Vatican Practicing Child Sacrifice?
NoWorldSystem
January 13, 2010
“Nothing, in this world, works the way you think it does.” -Jordan Maxwell
Child sacrifice, trauma-based mind control, what do they have in common? They are both used by the largest cult in the world; the Illuminati.
The Illuminati is a cult created by Adam Weishavpt on May 1, 1776. It is a culmination of secret societies that strive to create a global government called a ‘New World Order’, where the United Nations is the framework for the birth of global institutions (ex: WHO, IMF).
The main agenda of the Illuminati is to completely control all governments, religious and financial institutions of the world. Unfortunately they have succeeded in that effort, they have total dominance over the United States (the seal of the Illuminati is on the back of the one-dollar bill), Russia, the European Union and even the Vatican.
They stage military coups against opposing government, install agents and create a puppet-government so that they become in favor of a New World Order. They have infiltrated the mainstream media, all forms of entertainment and even public schools. We all live in this scientific dictatorship that many aren’t aware of, the public is in a trance, our beliefs and opinions are constantly being shaped so that we are in favor of the agenda. One example is Global Warming, promoting the idea that Co2 is a deadly pollutant that should be taxed on a global scale and that a One World Government is needed to solve this problem.
We live in a world were one family bloodline is in control of this New World Order, the bloodline is called the Merovingian bloodline that dates back to the Priory of Sion, the group was sworn to protect the bloodline that now exists in the European monarchy. Many think that all U.S. presidents are elected ‘by the people’, the reality is all 45 U.S. presidents including Obama are the heirs of the Merovingian bloodline. For example, Obama and George W. Bush are 11th cousins and Queen Elizabeth and George W. Bush are 13th cousins.
Many still believe that this country won its independence from the British in 1776, the reality this country has always belonged to the British monarchy, stolen from the Native Americans. The ‘United States’ technically means a ‘Federal Corporation’ of the British crown, and the citizens are nothing more than indentured servants to Europe. The Private Bank called the U.S. Federal Reserve (the system that is now collapsing the U.S. economy through devaluation) is part owned by the Bank of England. Many wonder why big banks like Goldman Sachs and JP Morgan get taxpayer-funded bailouts, well it’s because they are too part owners of the U.S. Federal Reserve, private corporation.
To the elite, humans are all considered slaves that bear no ‘inheritable blood’ and they believe every aspect of human life should be regulated and taxed for the benefit of the elite. They believe that the human lifespan should be cut down by introducing toxic chemicals into our lives, they also believe they should “maintain humanity under 500,000,000 in perpetual balance with nature” according what is written on the Georgia Guidestones.
We are saturated in a mirth of television, drugs and entertainment for this reason, to keep the population away from the truth of what is being perpetuated against us.
Trauma-Based Mind Control
One of the ways the Illuminati influences the masses is by trauma-based mind control, by creating physical and mental pain on a victim so that they become groomed over time for leadership positions. Many whistleblowers for this reason have come out of the dark to reveal these secrets. Trauma-based mind control is used to create Dissociative Identity Disorder (DID), a condition in which a person displays multiple personalities that a mind control programmer is able to manipulate.
Svali (a pseudonym for obvious reasons) explains it best, she is an ex-Illuminati mind control programmer who was born into ‘the family’, she wrote an excellent book called Breaking the Chain – Breaking Free Of Cult Programming that exposes the nature of the cult in great detail.
- Intentional programming of an infant in the Illuminati often begins before birth. Prenatal splitting is well known in the cult, as the fetus is very capable of fragmenting in the womb due to trauma. This is usually done between the seventh and ninth month of pregnancy. Techniques used include: placing headphones on the mother’s abdomen, and playing loud, discordant music (such as some modern classical pieces, or even Wagner’s operas). Loud, heavy rock has also been used. Other methods include having the mother ingest quantities of bitter substances, to make the amniotic fluid bitter, or yelling at the fetus inside the womb. The mother’s abdomen may be hit as well. Mild shock to the abdomen may be applied, especially when term is near, and may be used to cause premature labor, or ensure that the infant is born on a ceremonial holiday. Certain labor inducing drugs may be also given if a certain birth date is desired.
Once the infant is born, testing is begun at a very early age, usually during the first few weeks of life. The trainers, who are taught to look for certain qualities in the infant, will place it on a velvet cloth on a table, and check its reflexes to different stimuli. The infant’s strength, how it reacts to heat, cold, and pain are all tested. Different infants react differently, and the trainers are looking for dissociative ability, quick reflexes, and reaction times. They are also encouraging early dissociation in the infant with these tests.
The infant will also be abused, to create fragments. Methods of abuse can include: rectal probes; digital anal rape; electric shocks at low levels to the fingers, toes, and genitalia; cutting the genitalia in ritual circumstances (in older infants). The intent is to begin fragmentation before a true ego state develops, and customize the infant to pain and reflexive dissociation from pain (yes, even tiny infants dissociate; I have seen it time and time again; they will glow blank and limp, or glassy, in the face of continued trauma.)
Isolation and abandonment programming will sometimes be begun as well, in a rudimentary sense. The infant is abandoned, or uncared for by adults, intentionally during the daytime, then picked up, soothed, cleaned up and paid attention to in the context of preparing for a ritual or group gathering. This is done in order to help the infant associate night gatherings with “love” and attention, and to help the bonding process to the cult, or “family”. The infant will be taught to associate maternal attention with going to rituals, and eventually will associate cult gatherings with feelings of security.
As the infant grows older, i.e. at 15 to 18 months, more fragmenting is intentionally done by having the parents as well as cult members abuse the infant more methodically. This is done by intermittently soothing, bonding with the infant, then shocking it on its digits; the infant may be dropped from heights to a mat or mattress and laughed at as it lays there startled and terrified, crying. It may be placed in cages for periods of time, or exposed to short periods of isolation. Deprivation of food, water, and basic needs may begin later in this stage. All of these methods are done in order to create intentional dissociation in the infant.
Child Sacrifice
In this interview, Svali explains a more public technique of trauma-based programming by child sacrifice carried out during an induction ceremony at the Vatican.:
Public trauma-based mind control has been used constantly against us, for example, 9/11. Many people were so traumatized from the events of September 11th that they would have believed anything the U.S. government had put out based on fear alone. Like torture, terrorism is used to intimidate or coerce subject(s) into behaving and thinking a certain way so that the person(s) remain obedient and do what they are told. 9/11 was the mega-ritual that has accomplished many goals including the invasion of Iraq and Afghanistan because we were constantly told that the terrorists will hit us again if we didn’t do something about it.
“Fear is a strong basis for mind control, whether it’s the kind of mind control that is the mass-mind control over a whole society or if it’s the kind of absolute robotic mind control that I experienced under MK-ULTRA on a U.S. Pentagon level.” -Cathy O’Brien
Cathy O’Brien is also a victim of mind control (was not born into ‘the family’), she tells her story how she was sold by a sexually abusive father to the military industrial complex; “A local politician that was sanctioning this child pornography ring was associated with my grandfather’s blue masonic lodge, when this one particular politician came to my father and told him he can receive immunity from prosecution if he would sell me into MK-ULTRA mind control. My father was thrilled, he agreed to sell me into the project and was trained in how to raise me for MK-ULTRA.”
Filed under: Big Banks, bob chapman, DEBT, depression, devaluation, Dictatorship, Dollar, dollar bubble, dollar drop, dollar dump, Economic Collapse, economic crisis, economic depression, economic disaster, Economy, Empire, Federal Reserve, global economy, global government, Great Depression, Greenback, hyperinflation, Inflation, market manipulation, New World Order, NWO, One World Government, Stock Market, US Economy, US Treasury, world government
Bob Chapman: A New U.S. Dollar is Underway
Filed under: 1984, 9/11 Truth, Africa, aristocrats, Bank of England, Big Brother, bilderberg, Bohemian Grove, Britain, cashless society, Central Banks, Communism, Control Grid, cult, DEBT, depopulation, Dictatorship, Dissent, Economy, elite, Eugenics, famine, Fascism, Federal Reserve, freemasons, George Bush, global economy, global elite, global government, Goldman Sachs, Illuminati, Income Tax, internationalist, IRS, malthusian, malthusian catastrophe, manipulation market, market manipulation, masons, Media Manipulation, Military Industrial Complex, New World Order, NWO, oligarchy, One World Government, Oppression, orwell, Police State, Population Control, queen elizabeth, queen of england, rome, rothschild, ruling class, Secret Societies, slavery, Stock Market, Surveillance, tax, third world, toxic earth, toxic environment, toxicity, truth movement, u.s. economy, vatican, Wall Street, War On Terror, world government | Tags: Dr. Russell Blaylock
Fight The New World Order with Global Non Compliance
Filed under: Barack Obama, bilderberg, Central Banks, China, commodities, common currency, Credit Crisis, DEBT, Dictatorship, Dissent, Dollar, dollar collapse, dollar dump, economic depression, econommic collapse, Economy, Empire, g20, george soros, global central bank, global currency, global economy, global elite, global fascism, global government, global oligarchs, global treasury, Globalism, globalist, gold, Great Depression, Greenback, hyperinflation, imf, IMF bonds, Inflation, internationalism, internationalist, internationalists, manipulated economy, manipulated market, manipulation, market manipulation, New World Order, NWO, obama, Oil, oligarchy, One World Government, Petrol, SDR, SDRs, single currency, slavery, socialism, soros, Stock Market, UN, united nations, US Economy, World Bank, world currency, world government
Soros: “An Orderly Decline of the U.S. Dollar is Acceptable”
Billionaire globalist says China must be more subservient to the IMF’s New World Order, warns Americans that it would be unwise to resist a new world currency
Paul Joseph Watson
Prison Planet.com
October 28, 2009
Billionaire globalist George Soros told the Financial Times during an interview that China will supplant the United States as the leader of the new world order and that America should not resist the country’s decline as the dollar weakens, living standards drop, and a new global currency is introduced.
Asked what Obama should discuss when he visits China next month, Soros stated, “This would be the time because I think you really need to bring China into the creation of a new world order, financial world order,” adding that China was a reluctant member of the IMF who didn’t make enough of a contribution.
“I think you need a new world order that China has to be part of the process of creating it and they have to buy in, they have to own it in the same way as the United States owns…the current order,” said Soros, adding that the G20 was a move in this direction.
Soros said that there was a flight from currencies across the board, and that this is why the price of commodities, notably gold and oil, were generally rising. He also stated that an orderly decline of the dollar was “desirable” and that the entire system needed to be reconstituted towards a global currency.
“You need a new currency system and actually the Special Drawing Rights do give you the makings of a system and I think it’s ill-considered on the part of the United States to resist the wider use of Special Drawing Rights, they could be very useful now when you have a global shortfall of demand, you could actually internationally create currency through Special Drawing Rights,” said Soros, explaining that this was already in process after the IMF injected an allocation of Special Drawing Rights (SDRs) equivalent to $250 billion into the global economy.
Soros also stated that richer countries were already transferring wealth to poorer countries via SDR’s, with the IMF paying for the half per cent transaction cost.
Soros said the world would have to go through a “painful adjustment” following the decline of the dollar and the introduction of a global currency. Reading between the lines, he essentially threatened to kill the dollar completely if the United States did not get on board with the global currency.
Soros predicted that China would become the new engine of the global economy, replacing the U.S., and that this would slow economic growth and reduce living standards. Soros characterized the United States as a drag on the global economy because of the declining dollar.
Watch the video interview below.
Filed under: Africa, African Union, bernanke, bilderberg, Bob Zoellick, central bank, China, common currency, Communism, Daniel Estulin, DEBT, despotism, Dictatorship, Dollar, dollar collapse, dollar dump, Economic Collapse, economic depression, Empire, Fascism, Federal Reserve, g20, george soros, global bankers, global central bank, global currency, global economy, global elite, global government, global oligarchy, global treasury, Globalism, globalists, Great Depression, Greenback, Henry Kissinger, hyperinflation, imf, Inflation, internationalist, internationalists, logan act, manipulated economy, manipulation, market manipulation, Masaaki Shirakawa, New World Order, NWO, oligarchy, One World Government, poverty, Robert Zoellick, Russia, SDR, SDRs, single currency, slavery, socialism, sovereignty, Stock Market, super currency, Timothy Geithner, trilateral commission, UN, united nations, US Treasury, World Bank, world currency, Yoshihiko Noda | Tags: g20 scotland, scotland g20, st. andrews
G20 Elite Plan African Union Controlled by the IMF
The Corbett Report
November 11, 2009
 Daniel Estulin |
In an exclusive interview with The Corbett Report earlier today, Daniel Estulin revealed the behind-the-scenes details of last week’s G20 Finance Minister’s meeting in St. Andrews, Scotland. Many of these details come from actual G20 documents that his sources were able to sneak out of the meetings in spite of security measures which, Estulin notes, were unprecedented “even by Bilderberg standards.” These documents, which contain valuable information about the conference, are available at BilderbergBook.com and have been mirrored on The Corbett Report homepage. They were smuggled out at great personal risk and need to be disseminated widely.
The key issue discussed at the meeting, according to Estulin, was “the next step in globalization, which is the creation of the African Union.” This is part of an unfolding agenda of the ceding of national sovereignty to unnacountable regional governments which can more easily administer and implement the aims of the financial oligarchs. One of these aims is the elite’s exhaustively documented penchant for population reduction, including tying development aid to population control problems. “The creation of the borderless African continent will be spearheaded by the IMF.”
One of the smuggled documents shows that an attendee had the IMF articles of agreement at the meeting and highlighted the fact that funds were made available “under adequate safeguards” to member nations. This is code speak for imposing draconian measures designed to plunge countries into virtual servitude, with the result that in Africa, countries spend five times more revenue on servicing their IMF debts than they do on health care for their own citizens.
Watch an excerpt of the interview in the video below:
The meeting’s attendees, also identified in the smuggled documents, reads like a who’s who of the financial oligarchical elite, including leading Bilderbergers such as U.S. Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben Bernanke, World Bank President Bob Zoellick, Turkish Finance Minister Ali Babacan and British Finance Minister Alistair Darling and many others. The Trilateral Commission was also represented at the conference by Japanese members Yoshihiko Noda and Masaaki Shirakawa.
In the interview, Estulin discusses the G20’s debate on dumping the U.S. dollar which he first revealed would be on the meeting’s agenda in a press release last week. He indicates that the matter, although discussed, was rejected . “The American and the British delegations tried to persuade the Russian and the Chinese delegates to devalue the dollar and create a basket of currencies or another world currency to take the place of the dollar,” he said. “Luckily, both the Russians and the Chinese told the Americans and the British to go pound sand. They were not willing to do this.”
The idea that the Western financial oligarchs are aiming to dump the U.S. dollar is in line with recent reports that Goldman Sachs (whose members are suspiciously well connected to the upper echelons of the U.S. Treasury) actually took up positions to short the housing market right before the crash. Although a pre-meditated attempt to bring about a financial collapse would appear not to be in the financial oligarch’s self-interest, it makes perfect sense when one considers this as a problem-reaction-solution operation of creating a problem in order to get the public to support a pre-determined solution. In this case, the endgame has always been to use a financial collapse to usher in a New World Order. Now, exactly as precicted, everyone from Kissinger to Soros is using the economic collapse to call for a new financial order of greater international (read: unelected, undemocratic and unaccountable) control over world financial markets. Indeed, just as the G20 was wrapping up, talking heads like Damon Vickers were starting to insert talking points about a new global currency and a “New World Order” onto CNBC. Although it is good news that the dumping of the dollar failed to gain traction at this meeting, it by no means insures that this disastrous move will not continue to be pursued by the influential globalist financiers.
On a positive note, Canadian Finance Minister Jim Flaherty made a show of standing up for the people of the planet by noting that “the recent public policy of privatizing profits and socializing losses is unacceptable to taxpayers,” to which someone responded “Do you think they have noticed?” The response provoked laughter from the assembled oligarchs. Mr. Estulin has a message for the G20 oligarchs: “Gentlemen of the G20, in case you’re wondering: Yes, we the great unwashed have definitely noticed.”
Listen to the full interview by clicking here
U.S. Gives Up Economic Independence to the IMF
World Bank and IMF Join Global Attack on U.S. Dollar
U.S. Dollar Will No Longer Be World Reserve Currency
Filed under: bailout, bank bailout, Big Banks, China, Credit Crisis, DEBT, deflation, devaluation, Dollar, dollar collapse, Economic Collapse, economic depression, Economy, Federal Reserve, global currency, global economy, Great Depression, Greenback, hyperinflation, imf, Inflation, interest rate cuts, Japan, liquidity, market manipulation, private bank, rate cut, SDR, SDRs, Stock Market, US Economy, Wall Street, world currency, Yen
Even the Fed Doesn’t Want to Hold U.S. Dollars
Seeking Alpha
Friday, October 23, 2009
This is the scariest image in finance:
The above chart shows the dollar’s performance since the Fed announced its Quantitative Easing program in March. This chart tells us two things:
1. Americans just got 15% poorer on the world stage thanks to Ben Bernanke
2. A currency crisis is in the works (and perhaps already starting)
Regarding #1: When the financial crisis hit, the Fed realized it would need to keep interest rates low while it attempted to bail out the banks (80% of the $200+ trillion in derivatives sitting on commercial banks’ balance sheets are related to interest rates).
The problem with this is that it makes Treasuries very unattractive to foreign investors (China & Japan) who want a higher yield. Consequently, the Fed decided to pick up the slack by buying $300 billion worth of Treasuries through the now famous Quantitative Easing program.
As I noted last week, the Fed is now the largest buyer of US debt (it bought more debt than the next three largest buyers combined in 2Q09). China and Japan are no one’s fools. And they’re not going to fund a monetary policy that is both profligate and likely to erode the value of their dollar holdings.
Which brings us to item #2: the coming dollar crisis.
I am not a huge fan of technical analysis, but it is a useful tool for navigating a trader-heavy, liquidity driven, manipulated market such as today’s. On that note, I want to point out that the dollar began forming a falling bullish wedge pattern starting in June (see above chart). This pattern entails an ever-tightening range of lower highs and lower lows and typically precedes major breakouts to the upside.
Except it didn’t.
As you can see, the dollar broke down out of this pattern in late September. It then rallied back up into the trading range before breaking down again. This is bad news. The next line of support (place where the dollar could bounce) is 76. We’ve already broken that one too.
Now the next line of support is 72. Now, the dollar has only fallen to this level once in the last 30 years (Summer 2008, see the chart below). If we fall below that, then we’re in uncharted territory and a major dollar devaluation is in the works.
Perhaps it’s already happening.
To review a point made earlier, the dollar has lost 15% of its value since March 2009. On an annualized basis, we’re talking about the dollar losing almost a third of its value in one year (30%). That is an absurd level of devaluation. And China, Japan, etc. have had enough. It is now clear that a flight from the dollar has begun; the Fed buys more US debt than the next three biggest buyers combined.
However, what most people don’t realize is that even the Fed itself is shifting away from the dollar. Everyone knows that China and Japan hold massive foreign reserves (the dollar). But the US Federal Reserve does this too (we own euros, yen, etc.). And for some reason the amount of foreign reserve assets (non-dollar assets) on the Fed’s balance sheet skyrocketed by 50% to $133 billion at the end of August.
Now, $133 billion in foreign reserves is nothing compared to China and Japan’s ~$3 trillion. But a 50% increase in one week is an astounding rate of change.
The culprit?
A 500% increase in SDRs: the “global” currency issued by the IMF. The blog ZeroHedge caught this story first and pointed out that SDRs are the IMF’s means of maintaining a “super reserve” currency for the world. SDRs are defined as: a basket of currencies, today consisting of the euro, Japanese yen, pound sterling, and U.S. dollar.
Now, one has to wonder why the US Federal Reserve decided to suddenly buy $40 billion worth of SDRs overnight. The answer is that the IMF decided to massively increase the amount of SDRs outstanding from SDR 21 billion to SDR 204 billion in late August.
This came as part of a G20 decision made in April 2009 to stabilize the global financial system. Interestingly, of the countries involved in buying SDRs, the US bought the most at SDR 30 billion, compared to Japan (SDR 11 billion), and China (SDR 6 billion).
I realize this is getting a bit technical. But in simple terms this means that the US Fed intentionally participated in a world reserve currency scheme that devalued the dollar.
Folks, even the Fed doesn’t want to own dollars. It’s time to look for a currency that can’t be devalued.
Filed under: Bolivia, China, common currency, Credit Crisis, Cuba, DEBT, deflation, Dictatorship, Dollar, dollar collapse, dollar dump, Economic Collapse, economic depression, Economy, Ecuador, Empire, Euro, evo morales, Fascism, fiat currency, France, g20, gas prices, gasoline, global bankers, global central bank, global currency, global economy, global elite, global government, global treasury, Globalism, globalist elite, Great Depression, Greenback, Honduras, Hugo Chavez, hyperinflation, imf, IMF bonds, Inflation, internationalist, internationalists, Iran, Japan, Jose Antonio de Sucre, latin america, market manipulation, middle east, New World Order, Nicaragua, NWO, Oil, One World Government, Petrol, putin, ruble, Russia, SDR, SDRs, Simon Bolivar, single currency, socialism, spain, Stock Market, super currency, tax, Taxpayers, Tehran, UN, united nations, US Economy, Venezuela, Wall Street, World Bank, world currency, world government, yuan
Russia and Iran Now OFFICIALLY Talking of Dumping Dollar for International Trade
Washington’s Blog
October 18, 2009
After the Independent reported that Middle Eastern oil producers, plus China, Japan and France have all agreed to start trading oil using a basket of currencies – instead of the dollar – starting in 9 years, spokesmen for those governments denied it.
The Independent’s reporter explained why the governments were denying the rumor.
But now the governments themselves are starting to admit that they are switching out of the dollar.
For example, Russian Prime Minister Vladimir Putin said Wednesday that Russia is ready to consider using the Russian and Chinese national currencies instead of the dollar in bilateral oil and gas dealings. As Russia’s newspaper RIA Novosti writes:
Russia is ready to consider using the Russian and Chinese national currencies instead of the dollar in bilateral oil and gas dealings, Prime Minister Vladimir Putin said on Wednesday.
The premier, currently on a visit to Beijing, said a final decision on the issue can only be made after a thorough expert analysis.
“Yesterday, energy companies, in particular Gazprom, raised the question of using the national currency. We are ready to examine the possibility of selling energy resources for rubles, but our Chinese partners need rubles for that. We are also ready to sell for yuans,” Putin said.
And Iran’s Press TV reports that Iran wants to completely drop the dollar from its foreign exchange:
Since October 2007, Iran has received 85 percent of its oil revenues in currencies other than the US dollar and Tehran is determined to find a substitute for the US dollar for the rest of its 15 percent of oil revenues, the report added.
This story is confirmed by the Tehran Times, which notes:
As I have repeatedly noted, many countries have been moving out of the dollar for years. The process is simply accelerating.
In line with this plan, Iran has informed Japan that it should use the yen instead of dollars to pay for the oil it buys from the Islamic Republic.
In addition, Iran has decided to open a bourse for oil and gas transactions in currencies other than the U.S. dollar, especially the euro.
Latin America plans US dollar replacement
Press TV
October 17, 2009
Leftist Latin American leaders have agreed on using a new intra- regional trading currency, dubbed as Sucre, instead of the US dollar.
Bolivian President Evo Morales, who hosted leaders of the Bolivarian Alternative for Latin America and the Caribbean (ALBA), said that the “document is approved.”
During the seventh ALBA summit, the leaders agreed on the currency reform as well as approving plans to impose economic sanctions against the coup leaders in Honduras, AFP reported.
The currency, Sucre, is named after Jose Antonio de Sucre who fought for Spain’s independence alongside Venezuelan hero Simon Bolivar in the early 19th century.
Sucre is scheduled to be rolled out in 2010 in a non-paper form.
The nine members of ALBA, conceived by Venezuelan President Hugo Chavez, are Cuba, Dominica, Venezuela, Ecuador, Nicaragua, Honduras, Saint Vincent and Antigua, Bolivia and Barbuda.
The bloc also agreed to replace the International Center for Settlement of Investment Disputes, which is in charge of arbitrating international disputes and has probed a large number of contract disputes between Western energy firms and members of ALBA.
ALBA, which has already lost many of its members, including Ecuador, is echoing the moves of the European Union and its introduction of euro.
Filed under: 1984, 2-party system, anti gun, Barack Obama, Big Brother, bilderberg, biometrics, Bush Sr., cap-and-trade, carbon dioxide, Carbon Tax, Christopher Monckton, climate change, Co2, common currency, Communism, copenhagen, Copenhagen treaty, Credit Crisis, DEBT, Dictatorship, DNA Database, Dollar, dollar collapse, Economic Collapse, economic depression, Economy, Empire, energy, energy tax, environmental taxation, Fascism, Federal Reserve, fiat currency, g20, george h. w. bush, george soros, global bankers, global central bank, global climate treaty, global currency, global economy, global elite, global government, global police force, global tax, global treasury, Global Warming, global warming treaty, Globalism, globalists, Great Depression, Greenback, Gun Control, gun control treaty, health care reform, hyperinflation, imf, IMF bonds, Inflation, International Banks, international criminal court treaty, international treaty, internationalism, internationalist, internationalists, internet, jerome corsi, left right paradigm, Lord Christopher Monckton, market manipulation, neocons, New World Order, NWO, obama, obama deception, obamacare, One World Government, orwell, SDR, SDRs, single currency, socialism, sovereignty, subprime, subprime lending, super currency, Surveillance, truth movement, UN, united nations, US Economy, us sovereignty, Wall Street, World Bank, world currency, world government, world police force, world tax
Obama Will Surrender America To World Government
NoWorldSystem.com
October 17, 2009
“Out of these troubled times, our fifth objective – a New World Order – can emerge. . . Now, we can see a New World Order coming into view. A world in which there is a very real prospect for a New World Order. . .A world where the United Nations, freed from a Cold War stalemate, is poised to fulfill the historic vision of its founders.” -George H.W. Bush
The Minnesota Free Market Institute hosted an event at Bethel University in St. Paul on Wednesday evening. Keynote speaker Lord Christopher Monckton, former science adviser to British Prime Minister Margaret Thatcher, warned the American people to stop Obama from signing a ‘global climate treaty’ at the climate change conference in Copenhagen in December 7-18 that will ultimately surrender U.S. sovereignty to a World Government under the guise of helping the environment.
With every passing day it becomes more evident that Obama is nothing more than a globalist, it is obvious from health care reform that he doesn’t care about the middle class, he is in the pocket of the internationalist elite like Kissinger and the rest of the global elite that wish to establish a World Government Dictatorship under the auspices of the United Nations.
If this international climate change treaty passes, Americans will have no choice but to pay a global climate tax that will be paid directly to the United Nations, at first the tax will be introduced to the public gradually such as a barely noticeable tax at the gas pump, which will later be increased once it has been officially established.
The Bilderberg Group has discussed this new global tax this year among many other things like creating a fast-but-painful depression to better establish a New World Order. The IMF, a United Nations entity has already declared itself the global central bank that will set regulations and issue a global currency to the nations. People like George Soros, IMF and the World Bank are betting against the dollar and with the help of the Federal Reserve will topple the dominance of the U.S. dollar in the world market to destroy the U.S. economy and force the global dictatorship on the western hemisphere.
We are beginning to see the emergence of a New World Order this year, with talks of a new global currency, a global climate tax, a global police force with access to a worldwide database of DNA, biometric and fingerprint records, an international gun-control treaty, an international criminal court treaty, the internet moving towards world government it’s crystal clear what is about to happen in this country.
Obama Poised to Cede US Sovereignty, Claims British Lord
Russian Scholar Says US Will Collapse By 2010 – Re-Colonization of America Before 2011
Filed under: big bankers, Central Banks, common currency, Credit Crisis, DEBT, Dissent, Dollar, dollar collapse, Economic Collapse, economic depression, Economy, Empire, False Flag, Fascism, Federal Reserve, fiat currency, g20, global bankers, global currency, global economy, global elite, global government, Globalism, globalist elite, gold, gold standard, Great Depression, Greenback, hyperinflation, imf, IMF bonds, Inflation, interest rate cuts, internationalist, internationalists, Iran, main street, market manipulation, New World Order, NWO, One World Government, private bank, rate cut, Robert Zoellick, Ron Paul, SDR, SDRs, silver, single currency, socialism, super currency, UN, united nations, US Economy, Wall Street, World Bank, world currency
Gold Hits New Record High of $1,043/oz
NoWorldSystem.com
October 6, 2009
Gold has hit a new record this morning at $1,043/oz.
Bank of America predicts gold prices will hit $1,500/oz by 2011 and Peter Schiff an Economic Analyst stated he sees gold reaching $1,500 to $5,000/oz, if the trend of gold keeps going up it would mean the dollar is collapsing.
The Federal Reserve will likely raise interest rates soon, the fed’s plan to save the economy is by continuing to flood the market with fiat dollar that are backed by nothing, the economy is slowly being lowered into the ground like a casket. Ever since the country got off the gold standard the dollar has devalued resulting in inflated prices in all commodities.
The sharp rise of gold from under $1,000 to quickly $1,043 is also likely attributed by the recent G20 and UN meetings discussing the hatred of the dollar as the leading currency in the world market and the desire to move toward a new economic World Order by creating a global fiat currency (SDR bonds) that are printed by the IMF.
Owning gold is really a long term investment and a safe-haven when there’s dreary times; with record debt and unemployment, socialism for the banks and auto corporations, plans for mandatory health-insurance, the failed costly-wars in the middle-east and the hawkish stance against Iran and Pakistan.. it’s going to be one hell of a ride in the next few years.
Ron Paul on Fox News – “We MUST go back to the gold standard”
Filed under: big bankers, Central Banks, CNBC, common currency, Credit Crisis, DEBT, deflation, Dissent, Dollar, dollar collapse, Economic Collapse, economic depression, Economy, Empire, Fascism, Federal Reserve, fiat currency, g20, G7, global bankers, global central bank, global currency, global economy, global elite, global government, global treasury, Globalism, globalist elite, gold, gold standard, Great Depression, Greenback, hyperinflation, imf, IMF bonds, Inflation, interest rate cuts, internationalist, internationalists, jim rickards, main street, market manipulation, New World Order, NWO, One World Government, Pennsylvania, Pittsburgh, Pittsburgh g20 summit, Pittsburgh summit, Pittsburgh summit 2009, private bank, Protest, rate cut, Robert Zoellick, SDR, SDRs, silver, single currency, socialism, sovereignty, stimulus, Stock Market, super currency, tax, Taxpayers, UN, united nations, US Economy, US Treasury, Wall Street, World Bank, world currency, world government | Tags: Dictatorship, Empire
World Bank and IMF Join Global Attack on U.S. Dollar
Larry Edelson
Money and Markets
October 4, 2009
In my emails to you over the past couple of weeks, I’ve shown you why Washington has no choice but to devalue the dollar — and how global leaders and even the United Nations have joined the attack on the greenback by demanding it be replaced as the world’s reserve currency.
Now, just this week, the International Monetary Fund and the World Bank have begun adding their voices to the international choir calling for a new global reserve currency:
* Last week, World Bank President Robert Zoellick warned that the dollar’s status will be challenged and shouldn’t be taken for granted.
* According to Turkish Deputy Prime Minister Ali Babacan, it’s likely that the role of special drawing rights (SDRs) based on a basket of currencies will be discussed as an alternative to the dollar during meetings of the World Bank and IMF in Istanbul next week.
* Meanwhile, global governments, central banks, companies and investors continue to slash their dollar holdings. According to the IMF, in April through June of this year, the greenback’s share of global currency reserves fell to the lowest level in a decade. Holdings of euros, in contrast, rose to a new all-time record high.
All this adds weight and momentum to the devaluation of the dollar. It is DEFINITELY ON THE TABLE. Indeed, for the first time I can remember, the G-7 finance officials, meeting this weekend, are rumored to be breaking with tradition and choosing not to release a statement on the global economy and currencies.
I feel this is an extremely significant development: At last week’s G-20 meeting, the group officially anointed itself as being in charge of global economic affairs.
Plus, we now have the G-7 refusing to discuss the dollar, which is highly unusual. Many will say that, if the G-7 does indeed refuse to comment on the dollar at this weekend’s meeting, it’s merely a sign they’re beginning to turn the reigns over to the G-20 for currency matters.
Baloney! The G-7 WILL discuss the huge “global economic imbalances” in the world. And to me, that’s code talk for a currency devaluation on the agenda. Members of the G-7 ARE discussing it. They’re just NOT doing it in public.
It reminds me of the 1985 Plaza Accord, where James Baker committed the U.S. to a depreciating dollar, bulldozing over our creditors, and ultimately precipitating the ‘87 crash.
The difference: Back then the U.S. was in a position to lead the devaluation. Today, it’s not. Today, our creditors are going to bulldoze over us.
IMF Catapults From Shunned Agency to Global Central Bank Issuing Debt to the World While U.S. Dollar Plummets
Huffington Post
October 2, 2009
“A year ago,” said law professor Ross Buckley on Australia’s ABC News last week, “nobody wanted to know the International Monetary Fund. Now it’s the organiser for the international stimulus package which has been sold as a stimulus package for poor countries.”
The IMF may have catapulted to a more exalted status than that. According to Jim Rickards, director of market intelligence for scientific consulting firm Omnis, the unannounced purpose of last week’s G20 Summit in Pittsburgh was that “the IMF is being anointed as the global central bank.” Rickards said in a CNBC interview on September 25 that the plan is for the IMF to issue a global reserve currency that can replace the dollar.
“They’ve issued debt for the first time in history,” said Rickards. “They’re issuing SDRs. The last SDRs came out around 1980 or ’81, $30 billion. Now they’re issuing $300 billion. When I say issuing, it’s printing money; there’s nothing behind these SDRs.
SDRs, or Special Drawing Rights, are a synthetic currency originally created by the IMF to replace gold and silver in large international transactions. But they have been little used until now. Why does the world suddenly need a new global fiat currency and global central bank? Rickards says it because of “Triffin’s Dilemma,” a problem first noted by economist Robert Triffin in the 1960s. When the world went off the gold standard, a reserve currency had to be provided by some large-currency country to service global trade. But leaving its currency out there for international purposes meant that the country would have to continually buy more than it sold, running large deficits; and that meant it would eventually go broke. The U.S. has fueled the world economy for the last 50 years, but now it is going broke. The U.S. can settle its debts and get its own house in order, but that would cause world trade to contract. A substitute global reserve currency is needed to fuel the global economy while the U.S. solves its debt problems, and that new currency is to be the IMF’s SDRs.
That’s the solution to Triffin’s dilemma, says Rickards, but it leaves the U.S. in a vulnerable position. If we face a war or other global catastrophe, we no longer have the privilege of printing money. We will have to borrow the global reserve currency like everyone else, putting us at the mercy of the global lenders.
To avoid that, the Federal Reserve has hinted that it is prepared to raise interest rates, even though that would mean further squeezing the real estate market and the real economy. Rickards pointed to an oped piece by Fed governor Kevin Warsh, published in The Wall Street Journal on the same day the G20 met. Warsh said that the Fed would need to raise interest rates if asset prices rose – which Rickards interpreted to mean gold, the traditional go-to investment of investors fleeing the dollar. “Central banks hate gold because it limits their ability to print money,” said Rickards. If gold were to suddenly go to $1,500 an ounce, it would mean the dollar was collapsing. Warsh was giving the market a heads up that the Fed wasn’t going to let that happen. The Fed would raise interest rates to attract dollars back into the country. As Rickards put it, “Warsh is saying, ‘We sort of have to trash the dollar, but we’re going to do it gradually.’ . . . Warsh is trying to preempt an unstable decline in the dollar. What they want, of course, is a stable, steady decline.”
What about the Fed’s traditional role of maintaining price stability? It’s nonsense, said Rickards. “What they do is inflate the dollar to prop up the banks.” The dollar has to be inflated because there is more debt outstanding than money to pay it with. The government currently has contingent liabilities of $60 trillion. “There’s no feasible combination of growth and taxes that can fund that liability,” Rickards said. The government could fund about half that in the next 14 years, which means the dollar needs to be devalued by half in that time.
The Dollar Needs to be Devalued by Half?
Reducing the value of the dollar by half means that our hard-earned dollars are going to go only half as far, something that does not sound like a good thing for Main Street. Indeed, when we look more closely, we see that the move is not designed to serve us but to serve the banks. Why does the dollar need to be devalued? It is to compensate for a dilemma in the current monetary scheme that is even more intractable than Triffin’s, one that might be called a fraud. There is never enough money to cover the outstanding debt, because all money today except coins is created by banks in the form of loans, and more money is always owed back to the banks than they advance when they create their loans. Banks create the principal but not the interest necessary to pay their loans back.
The Fed, which is owned by a consortium of banks and was set up to serve their interests, is tasked with seeing that the banks are paid back; and the only way to do that is to inflate the money supply to create the dollars to cover the missing interest. But that means diluting the value of the dollar, which imposes a stealth tax on the citizenry; and the money supply is inflated by making more loans, which adds to the debt and interest burden that the inflated money supply was supposed to relieve. The banking system is basically a pyramid scheme, which can be kept going only by continually creating more debt.
The IMF’s $500 Billion Stimulus Package:
Designed to Help Developing Countries or the Banks?
And that brings us back to the IMF’s stimulus package discussed last week by Professor Buckley. The package was billed as helping emerging nations hard hit by the global credit crisis, but Buckley doubts that that is what is really going on. Rather, he says, the $500 billion pledged by the G20 nations is “a stimulus package for the rich countries’ banks.”
Why does he think that? Because stimulus packages are usually grants. The money coming from the IMF will be extended in the form of loans.
These are loans that are made by the G20 countries through the IMF to poor countries. They have to be repaid and what they’re going to be used for is to repay the international banks now. . . . [T]he money won’t really touch down in the poor countries. It will go straight through them to repay their creditors. . . . But the poor countries will spend the next 30 years repaying the IMF.
Basically, said Professor Buckley, the loans extended by the IMF represent an increase in seniority of the debt. That means developing nations will be even more firmly locked in debt than they are now.
At the moment the debt is owed by poor countries to banks, and if the poor countries had to, they could default on that. The bank debt is going to be replaced by debt that’s owed to the IMF, which for very good strategic reasons the poor countries will always service. . . . The rich countries have made this $500 billion available to stimulate their own banks, and the IMF is a wonderful party to put in between the countries and the debtors and the banks.
Not long ago, the IMF was being called obsolete. Now it is back in business with a vengeance; but it’s the old unseemly business of serving as the collection agency for the international banking industry. As long as third world debtors can service their loans by paying the interest on them, the banks can count the loans as “assets” on their books, allowing them to keep their pyramid scheme going by inflating the global money supply with yet more loans. It is all for the greater good of the banks and their affiliated multinational corporations; but the $500 billion in funding is coming from the taxpayers of the G20 nations, and the foreseeable outcome will be that the United States will join the ranks of debtor nations subservient to a global empire of central bankers.
Man Throws Shoe at IMF Chief
Filed under: bloomberg, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, equity market, global economy, gold, Great Depression, Greenback, High Frequency Trading, hyperinflation, Inflation, liquidity, liquidity rebates, manipulated economy, manipulated prices, market manipulation, price fixing, Stock Market, US Economy, Wall Street | Tags: Joe Saluzzi
Trader: Market is manipulated and volumes ‘fictitious’
Filed under: comex, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, manipulated economy, manipulated prices, market manipulation, price fixing, silver, silver shortage, Stock Market, US Economy, Wall Street | Tags: john embry, kitco, paper investment
Physical Gold Remains Over +1,000 an Ounce
Gold buffalo 1oz coins are trading between 300 to 400 over spot price on ebay.
Market Oracle
October 24, 2008
It appears that there is a common refrain going around the investment community. It goes something like this:
“Gold should be doing better, and, since it isn’t, I am not going to buy it”
Investors who believe this are making the mistake of thinking COMEX gold is the same as real physical gold. It is not.
COMEX gold is a form of debt. It involves one party promising to produce gold (money) to another at a future date. Like all forms of debt, a COMEX futures contract is only as good as the counterparty behind the contract. Right now, because of low margin requirements, sellers of gold futures only have enough gold to cover 10% of outstanding contracts stored in COMEX warehouses. Considering that the biggest sellers of gold futures contract are insolvent financial institutions, it is obvious that COMEX gold has enormous counterparty risks . If even a quarter of outstanding contracts asked for physical delivery, it would be enough to guarantee a default. Since a financial collapse would actually creates the risk total default (insolvent banks can’t produce the gold or cash), COMEX gold fails miserably as a safe haven . This is why COMEX gold prices are falling, while physical gold is disappearing from the market place
Because of scarcity, physical gold is selling at an enormous premium to gold spot price (which is set by COMEX). How big a premium? Well, on eBay 2008 gold buffalo are trading between 300 to 400 over spot price. That is a 50% premium. The enormous premiums being paid in the physical market means that a large number of December gold contract holders are likely to request delivery. A volume, whether it causes defaults or not, is likely to change the marketplace perception of gold and cause a rush of into a physical gold plagued by shortages. Gold will skyrocket over 2000 in a matter of days.
I am not the only person who believes COMEX gold futures are on the verge of collapse. I urge you to watch this video (skip to 11 minute mark) and read the extract below to see what others are saying about paper gold:
http://noworldsystem.com/2008/10/26..-is-down-when-it-should-be-up/
Demand For Gold Soars
http://www.telegraph.co.uk/financ..-gold-soars-has-price-tumbles.html
Fitch says gold price will hold up reasonably well over 12-18 months
http://www.mineweb.net/mineweb/vie..=Detail
Filed under: 2008 Election, Alex Jones, Amero, asia, Australia, BP, Britain, Canada, China, Control Grid, Credit Crisis, DEBT, Dollar, dubai, Economic Collapse, economic depression, Economy, Europe, european union, exxon mobil, Federal Reserve, gas prices, global economy, global elite, global government, Globalism, Great Depression, Greenback, hyperinflation, Inflation, internationalist, internationalists, Iran, Japan, John McCain, kuwait, Lindsey Williams, london, manipulated economy, manipulated oil prices, manipulated prices, market manipulation, Mexico, middle east, muslims, neocons, New World Order, North American Union, Oil, OPEC, Petrol, price fixing, Saudi Arabia, single currency, Stock Market, United Kingdom, US Economy, Wall Street | Tags: global currency, global currency system, globalization, Mohammad Ali Khatibi, oil bourse, oil cut, one world currency, shell, Stanley Monteith, t-bills, the energy non crisis
Lindsey Williams Predicted Oil Will Be $50 a Barrel
Insider of the Global Elite was told: “Price of crude oil is going down to $50 a barrel. . . gas will be $2 to $2.50 a gallon” (1st video @ 7:11). “The entire Arab world will be bankrupt” (2nd video @ 7:34) “. . . you are going to shout and dance on the street at $2 a gallon and mark my words within 3-4 weeks time you are going to shutter in your boots because the dollar is going to go to zero, they’ll have an excuse to bring in the North American Union, they will be able to issue a new currency . . .” (3rd video)
Lindsey Williams on Alex Jones Show, October 26, 2008
Oil falls to $63, OPEC plans on cutting supply of oil
AP
October 26, 2008
Oil prices fell to 17-month lows at $63 a barrel Monday in Asia as investors weighed Friday’s OPEC output cut against growing evidence of a severe global economic slowdown that would undermine crude demand.
Light, sweet crude for December delivery fell 32 cents to $63.83 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore.
Investors brushed off a 1.5 million barrel-a-day cut announced by the Organization of Petroleum Exporting Countries on Friday, focusing instead on falling crude demand as economies across the globe reel from the impact of a credit crisis.
On Friday, oil fell $3.69 to settle at $64.15. Prices have plunged 57 percent from a record $147.27 on July 11.
“The mood is fairly negative reflecting worry about the international economic outlook,” said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. “If there is further weak economic data in the U.S. or Europe, prices could come under more downward pressure.”
Iran’s OPEC governor Mohammad Ali Khatibi said Sunday a reduction in production “will be considered” at the group’s next meeting in Algiers in December — a meeting that might even be held early if necessary.
“I thought the OPEC cut was a fairly decisive act, but concerns of recession in the major economies remain dominant,” Moore said. “OPEC’s cut does take a step toward tightening the market.”
http://www.reuter..dName=domesticNews&rpc=22&sp=true
Oil Can Fall to $50-$60 if Credit Stays Tight
http://www.cnbc.com/id/27160853
Oil down 50pc from July high
http://www.telegraph.co.uk/finance/finance..-July-high.html
Filed under: Big Banks, comex, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, food crisis, food market, food prices, food shortage, gas prices, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, manipulated economy, manipulated prices, market manipulation, nationalization, Oil, Petrol, price fixing, silver, silver shortage, Stock Market, US Economy, Wall Street | Tags: kitco, paper investment, run in banks
Why Gold Is Down When It Should Be Up
Alex_Wallenwein
The Market Oracle
October 13, 2008
Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, “because Comex-gold isn’t gold” – and because it deceptively pretends to be ‘the’ price-setter for real gold.
Gold is gold, paper is paper, and “Comex gold” is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked.
The real supply and demand determinants for Comex gold are not actual gold investors but fund managers . Fund managers are inextricably intertwined with the world of contract-based credit instruments. They use bet on Comex gold contracts to hedge their other (currently horrendously losing) bets with something they all, in their in-bred belief in paper markets, believe will ‘go up’ in value while everything else is going down.
However, these very same fund managers and their paper-bound investment psychology are the exclusive reason why Comex gold is dropping in these times when everyone (including fund managers) expects gold to rise. As already stated, though, and as they now finally realize to their own dismay, Comex-gold just isn’t gold – and that causes even further selling.
Two Losing Bets, Compounded
Fund managers’ other bets are losing money fast, now, so they need to raise cash to keep up the overall value of their respective funds, so they can earn their management bonuses and avoid getting booted for lack of relative performance. Guess what they cash in on? The very same Comex paper-gold they mistakenly bought as a ‘hedge’, of course.
Meanwhile, real investors in real gold are enjoying their shopping spree – except that the spree turned into a treasure hunt as the shelves and display cases of gold dealers look more and more like the supermarket shelves in the old Soviet Union – bare.
This is the only ‘bare-market’ in real gold the world will see for a long, long time to come.
With this split, this disconnect, between Comex illusion and gold reality, one thing or the other will have to give, and it won’t be physical gold that gives.
The system built up around the reputation of Comex-gold as being a price-setting mechanism for real gold plays right into the hands of the financial establishment. The establishment depends for its (now increasingly meager) existence on the illusion that gold “isn’t living up to its promise” as a real inflation and disaster hedge. The implication, of course, is that investors might as well stay in the computer blip and paper world.
As the Comex gold price illusion drops, many retail investors are still persuaded to keep their money circulating in the paper world, and that ultimately feeds the system. Of course, by now that ‘feeding’ mechanism looks more like life-support, but try and unhook someone who is on life-support. The results are dramatic, inevitable, immediate – and final.
Yet, even on life-support, the system is deteriorating at a catastrophic pace. It would be hilarious to watch if it wasn’t for the fact that we are all depending on this phony system for our real-life support. Without credit freely circulating through the commercial paper universe, for example, grocery stores won’t have food on their shelves, there won’t be gas a the gas station, and your bank will be shut. Cash doesn’t transfer very well without the bank settlement process.
That’s the problem.
COMEX Gold Drops $681 on October 24, 2008
Filed under: austria, Bank of England, BOE, Britain, Central Banks, Credit Crisis, DEBT, Dollar, Economic Collapse, economic depression, Economy, Europe, european union, Germany, global economy, gold, gold shortage, Great Depression, Greenback, hyperinflation, Inflation, Lehman Brothers, london, manipulated economy, manipulated prices, market manipulation, mortgage, mortgage companies, mortgage lenders, nationalization, platinum, silver, silver shortage, south africa, Stock Market, switzerland, UBS, United Kingdom, US Economy, us mint, Wall Street | Tags: HBOS, Jurg Kiener, Krugerrand, run on banks
Gold Runs Out In Germany
Allan Hall
London Evening Standard
October 12, 2008
Risk-averse Germans are turning to gold in troubled times – but there’s none left.
German gold dealers say demand has skyrocketed this past week to 10 times normal so no more orders can be taken for the foreseeable future.
“The demand exceeds our capacities by a great deal,” said Heiko Ganss, head of precious metal company Pro Aurum.
“The requests cannot be satisfied right now,” a dealer from the Düsseldorf WGZ Bank confirmed.
“Demand for gold as a conservative investment has risen dramatically,” said stephan Henkel. “right now the demand is about 10 times as high as in normal times.”
Gold deliveries now take between four and six weeks.
The US mint said on Monday it had exhausted some of its supply of bullion coins and was struggling to meet demand for gold, silver and platinum.
South Africa’s Rand Refinery, producer of the world’s most popular gold bullion coin, the Krugerrand, temporarily ran out of the coins in August.
Londoners Queue-Up on Sidewalk to Buy Gold in Rush for Money Haven
Bloomberg
October 9, 2008
Londoners stood in line outside the largest gold coin and bar retailer in the city’s West End shopping district, clogging the lobby and trading among themselves as they sought a safe haven for their money.
“People want something tangible, something they can hold on to, something the banks can’t give them,” said Chris Burrow, the owner of ATS Bullion, the gold dealer in the Strand that traces its roots back to the 17th century. “There’s no time to breathe. We’re rushed off our feet. Staff are exhausted.”
As U.K. stocks tumbled to a five-year low, paced by financial-services companies, gold advanced. Since Lehman Brothers Holdings Inc.’s Sept. 15 filing for bankruptcy protection, exacerbating the worldwide credit crisis, gold for immediate delivery has jumped 19 percent.
“Investors are rushing to safe havens and physical gold seems to be the favorite one,” said Frederic Panizzutti, a senior vice president at MKS Finance, one of Switzerland’s four bullion refiners.
British government action to prop up the banking industry has failed to reassure investors. The U.K. on Oct. 8 promised 50 billion pounds ($86 billion) of capital to banks, the same day the Bank of England cut its benchmark interest rate by half a percentage point. Last month, the government brokered a takeover of HBOS Plc, Britain’s largest mortgage lender, and seized control of Bradford & Bingley’s mortgage division.
Austria Witnesses New Gold Rush
BBC
October 12, 2008
The financial crisis is prompting people to look for safer forms of investment than stocks and shares.
The interest in gold coins is so great that many of the world’s major mints are struggling to keep up with demand, including the Austrian Mint, which produces the Vienna Philharmonic – one of the best-selling bullion coins worldwide.
Sales of Vienna Philharmonic gold coins have gone up by more than 230% since last year.
Kerry Tattersall, the director of marketing at the mint, says production has gone into overdrive.
“We are running at present something like three shifts on all of the machines, on the presses, producing both gold and the silver bullion coins.
Read Full Article Here
Central banks all but stop lending gold
Javier Blas
Financial Times
October 8, 2008
Central banks have all but stopped lending gold to commercial and investment banks and other participants in the precious metals market, in a move that on Tuesday sent the cost of borrowing bullion for one-month to more than twenty times its usual level.
The one-month gold lease rate rocketed to 2.649 per cent, its highest level since May 2001 and significantly above its five-year average of 0.12 per cent, according to data from the London Bullion Market Association.
Gold lease rates for two, three, and six months and for a year also jumped to levels not seen in the last seven years.
Traders said the jump reflects the fact that central banks — mostly European — have almost completely stopped lending gold in the last few days and are not rolling forward old leases after maturity. This is because of fears that some borrowers might not repay their bullion loans if they are engulfed by the financial crisis.
“A number of central banks have been cutting back on their gold lending,” said Tom Kendall, a precious metals strategist at Mitsubishi in London.
John Reade, a commodities strategist at UBS, added that there had been a lot of talk about some central banks being unwilling to lend their gold because of a redoubled focus on the risk of borrowers not returning it.
http://seekingalpha.com/article/99680-..ces-tell-two-different-gold-stories
Blatant Banker Manipulation Of Gold Prices
http://www.prisonplanet.com/blatant-banker-manipulation-of-gold-prices.html
No Mass Mania for Gold Yet – Less than 1% of Public in Western World Have Invested in Gold
http://news.goldseek.com/GoldSeek/1224161100.php
Spot Gold Price Is Now Meaningless
http://www.istockanalyst.com/article/viewarticle%2Barticleid_2713209.html
Gold expected to rally above $1000 in Q1 2009
http://network.nationalpost.com/np/b..o-rally-above-1000-in-q1-2009.aspx
What the Pros Say: All that Glitters is Gold
http://www.cnbc.com/id/27095525
Kiener: Gold Prices To Double On Paper Market Default
http://www.prisonplanet.com/kiener-..o-double-on-paper-market-default.html
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