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The Best Mistake You'll Ever Make

By Jeff Clark, BIG GOLD October 26, 2011

The following conversation took place between a friend’s son and I; he’s a bright but relatively young investor. He had purchased some gold based on some things I’d told his father. Shortly afterward, the price dropped hard. As you’ll see, he was not very happy with my advice and said so in an email to me. So I called him…

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Filed under economy economics investing dollar gold fiat money

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Yuan Gold Contracts a Step toward Reserve Currency

By: Dr. Jeffrey Lewis Posted Monday, 24 October 2011

On Monday, the first gold contracts denominated in the Chinese Renminbi (also known informally as “yuan”) came to the Hong Kong market.  Analysts have been quick to note the implications of a yuan-denominated contract, realizing that the new contract could drive nearly three times as much demand as the dollar-denominated contract.

Looking at the yuan product from the macro-view, a move into gold is about more than just gold—it’s about reserve currency status. 

Dollar’s Monopoly

The US Dollar has a monopoly as the world’s reserve currency.  The size and scope of the US economy and financial markets, combined with the relative stability of the political climate, made the US dollar a preferred currency for international trade. 

However, the reason most cite for dollar dominance isn’t the United States’ role in international commerce, but its monopoly on a single product—oil.  In an agreement with Saudi Arabia, the United States effectively tied the global oil market to the US dollar.  No other currencies could be used to purchase “black gold,” the driver of modern industry.

Signs of Defiance

As China grows, it naturally wants to extend its reach as an economic powerhouse. Recently, in a move that rattled those who see the dollar as the only reserve currency, China agreed to trade oil and energy products with Russia in their own currencies.  This should have been seen as a warning sign, a move that would lead to new policies to make the Renminbi a global currency for commerce.

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Filed under economy economics politics'news dollar reserve currency yuan Chinese Renminbi China oil Saudi Arabia gold

Notes

The Moral Unraveling of the EU, Bailouts and Central Banking

from The Daily Bell Saturday, October 15, 2011 – by Anthony Wile

Slovakia has now approved the European debt-crisis bailout fund, but the problems Europe is experiencing are similar to those faced by America in the grip of the Fed’s immense bailouts of the past two years.

Increasingly, these are seen as morally repugnant by citizens throughout the West. And this has significant consequences that the mainstream press declines to report.

Dominant social themes work by omission as well as commission; in this column, I want to re-examine potential ramifications. I’ve done it before, but I think it’s worth repeating. Not enough commentators, even in the alternative media, point them out in my humble opinion.

Money continues to flood Western regimes and financial institutions with billions and billions that they don’t deserve and cannot properly apply. Perhaps there is no alternative but to “kick the can down the road.” On the other hand, perhaps the bailouts are part of a wider elite destabilization effort, one intended to generate chaos and misery that will pave the way for global governance and maybe a new world currency. This is the view of the more conspiratorially-minded among the alternative media.

For whatever reasons, the bailouts, against all logic, continue apace and are being increasingly resisted … not merely for their Draconian impacts but because people are using technology to become more informed. This bailout saga, therefore, has been unusual, not only for the incalculable wealth that’s been extended but also because it’s played out in front of millions.

The ramifications continue to be felt in my view. The push-back began in the US with TARP and then continued with revelation of US$16 trillion-plus (probably more) in short-term loans extended by the US Federal Reserve to financial institutions – not just in America but around the world.

Now US Congressman Ron Paul is conducting the Federal Reserve’s first “audit.” Ben Bernanke speaks, but his pronouncements have nowhere near the power or authority of his predecessor Alan GreenspanOccupy Wall Streetand alternative journo Alex Jones are both holding organized protests outside Fed buildings. In Southern Europe, protests and riots (Greece) rise wherever the EU and its bankers attempt to impose “austerity.”

The Internet has allowed people to see – finally – exactly what’s going on. Prior to the Internet, the controlled mainstream news would have explained in unison that the Fed “made massive adjustments to the global financial fabric to ensure that systemic collapse was mitigated …” or employed other nonsensical euphemisms. These sorts of non-explanations would have been repeated ad nauseum.

But in the era of the Internet, such gobbledygook has been effectively negated by literally millions of articles (and thousands of videos) explaining what central banking really is – monetary price fixing – and how central bankers “print money from nothing” to advantage their cronies at the expense of everyone else.

The system survived because it appeared so incomprehensible that it was beyond criticism. Not anymore. People around the world “get it” and the anger is breaching even the indolence of the political class. Eventually, if certain fundamental knowledge becomes widespread enough, the elites may have to take a “step back” as we have predicted they might. Resistance is spreading.

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Filed under economy economics politics central banks Federal Reserve the Fed End the Fed ECB BOJ inflation deflation money printing crime news euro dollar gold bailouts Internet occupy Occupy Wall Street occupytheFed Bernanke Ron Paul for President

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'The Dream Is Collapsing'

by William Norman Grigg  September 28, 2011

.  .  .  there are many points of correspondence between [film director Christopher Nolan’s] "Inception" and the similarly elaborate exercise in collective delusion and artful deception called the "American Dream."

*  *  *

An idea that is “incepted” (that term appears to be a neologism of Nolan’s coinage) into a dreaming person’s subconscious mind can continue to grow and expand in the individual’s waking state.

*  *  *

"What is the most resilient parasite?" Cobb [Nolan’s protagonist in the film] muses at one point. "Bacteria? A virus? An intestinal worm? An idea. Resilient – highly contagious. Once an idea has taken hold of the brain it’s almost impossible to eradicate. An idea that is fully formed – fully understood – that sticks; right in there [gesturing at his head] somewhere." As he had learned, this can have tragic – and even fatal – consequences. 

This principle is more than just a clever dramatic device. It is made vivid and palpable as the Power Elite’s “dream architecture” collapses all around us.

The “inception” responsible for the current system of institutionalized delusion was the creation of the Federal Reserve System, the Regime’s official counterfeiting arm. The Fed infected the world economy with the idea that wealth can be created ex nihilo by fiat money “dream architects.”

In the real world, currency – gold and silver – were tangible substances with specific characteristics that made them valuable and impossible to counterfeit. The pseudo-world created by the Fed, however, is one in which the laws of economics appear to be suspended, meaning that “wealth” and “value” can be conjured into existence simply by emitting more paper, or doing the equivalent in the digital realm.

Creation of a central bank was necessary in order to permit the Regime’s “extractor class” to slip the shackles of hard currency. This eventually led to FDR’s confiscation of gold in 1933, and to the Nixon administration’s final repudiation of the gold standard in 1971. 

In the real world, currency – gold and silver – were tangible substances with specific characteristics that made them valuable and impossible to counterfeit. The pseudo-world created by the Fed, however, is one in which the laws of economics appear to be suspended, meaning that “wealth” and “value” can be conjured into existence simply by emitting more paper, or doing the equivalent in the digital realm.

Creation of a central bank was necessary in order to permit the Regime’s “extractor class” to slip the shackles of hard currency. This eventually led to FDR’s confiscation of gold in 1933, and to the Nixon administration’s final repudiation of the gold standard in 1971. 

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Filed under politics economics economy psychology Christopher Nolan Inception American Dream collective delusion power elite Federal Reserve fiat money currency gold silver gold and silver counterfeit the Fed End the Fed central bank FDR Nixon confiscation of gold gold standard

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Pay attention #Occupy protesters. The root culprits are the central banks and the fiat currencies they create out of thin air. To solve the world’s economic problems we need first to get out of debt (no more bailouts or stimulus) - - - allow the market the freedom to work as it was meant to. Then we need to replace the fiat currencies (paper money) with something that has true value and cannot be manipulated by governments and bankers as paper can. That likely means a return to some kind of gold standard. Gold has been recognized everywhere on the planet as having intrinsic worth for thousands of years. Bankers and governments hate gold because they can’t control it or the persons who possess it.

littlebitmore:

Fiat (Latin, meaning “let it be so”)

It turns out that the biggest villain of all is not a person, but a system.

Specifically, the fiat money system.

If you’ve got four minutes, check this out to see why the rich are getting richer while everyone else is getting taken to the cleaners and ground into the dirt.

And why nothing will change until we attack the problem at its root.

(Source: realecontv.com)

Filed under ECB End the Fed Federal Reserve Libertarianism Monopoly money Ron Paul Ron Paul for President bankers banks central banks control economics economy fiat currencies gold gold standard governments paper money politics video Occupy Occupy

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Euroland & the Gold Rebound

By: Jim Willie CB, GoldenJackass.com                                                       Posted Wednesday, 12 October 2011

The harsh reality is that when Greece inevitably defaults, a string of bank failures will occur that hit Europe, London, and the US simultaneously. 

ENGINEERED GOLD DECLINE HALTED

This article would be remiss not to point out that history is being made. The COMEX has decided to raise margin requirements when a falling price is occurring, for both gold & silver. Normally, the opposite is the case. Notice no USTBond margin hikes, even though an asset bubble. If truth be known, the damage done to the Paulson Fund had a big hand in knocking down gold. Motive is painted on the walls. Policy is to tarnish the precious metals as the global monetary system continues to crumble, as the USGovt deficits head toward $2 trillion annually, and the USEconomy enters a recognized recession along with Western Europe, before renewed stimulus is attempted. With all the destinations staring the bankers and politicians in the face, they wanted the Gold & Silver prices to be pushed down. The next upsurge will be one for the history books. With new money heading to fill holes in the bank bond bailouts, the recapitalization of numerous banks, the economic stimulus, and the government debt monetization (led by the US), the debasement of major currencies will be astounding. The Gold & Silver prices will make strong new highs repeatedly.

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Filed under economy economics politics Europe euro eurozone crisis recession gold gold rebound economic stimulus banks recapitalization of banks debt monetization debasement of currencies politicians central banks renewed stimulus