Historically, when people used gold or silver as money, ownership of something purchased transferred from the seller to the buyer. If the subject was purchased for €10 and the buyer paid in €10 worth of gold or silver, it was an even exchange, and thus the buyer completely owned the object. Today this is no longer true, as the money used is debt money, created by debt out of thin air by the Central Banks. Consequently the seller is burdened with the debt of someone else, without obtaining real value for his sale.
The U.S Constitution states that Congress alone has the right to “coin money.” However, The FED is a private foreign bank, like almost all other central banks in the world, and the U.S. dollar is not even United States money, despite the fact that it says “Federal Reserve Note” on each dollar printed. This is very important to understand and set in mind. Similarly is the case with almost all other currencies, like the euro, yen, etc.
Printing more money doesn’t make more goods and services; it simply dilutes the value of existing goods and services among a larger number of dollars or euro’s, actually it is theft by the government through inflation. Wealth doesn’t come from money but from the goods and services that money buys. While, the U.S. may have dropped the gold standard over 40 years ago, gold still is the one thing that every nation still has; even Greece today is holding gold. In fact, the bankrupt PIIGS countries have combined over $180 billion dollars worth of gold in their vaults. They may default on their debts. But will keep their gold ingots on the side for later. And with China focused to become the next reserve currency provider, India – the world’s largest democracy – is also setting the stage for a new “gold standard”.
Tax money collected from citizens goes directly to the privately owned Federal Reserve or the local central bank. This is the way that the scam actually works: The Central Bank loans money to, and buys the debts of the government. However, the central banks do not really have the money so when they need it, they just print more. The money that they print is not worth anything because there is nothing backing it. In the past the United States Dollar was backed by a “Gold Standard” and that was what determined the value of the currency. (Bankers Control the Government)
In effect, central bankers are doing now something previous they only could dream of doing: printing money without causing inflation. Politicians, too, are enjoying this once-in-a-lifetime opportunity for recklessness. They will be able to do what none could do before: borrow money without paying it back. There is no need that governments repay their loans to central bankers, as the money they lent to governments, didn’t come from taxpayers, it came from nowhere, like the rest of the world’s money. Here an enhanced explanation to better capture the fraud committed by our leaders to striping-bare taxpayers and to enslave the public at large in the process.
On the contrary, if gold and silver were to collapse, say 50% down, it would be proof that our leaders are taking the right steps to get the economy on track. But politicians won’t become wise overnight all at once, while the first genius amongst them still has to stand up. So, to preserve your wealth, it’s still better to buy your wealth insurance in gold and silver.
The US dollar:
The dollar anyhow will go down, it has risen based on the expectations of all the talk of envisioned rate hikes, and as most other currencies went down relative to the US Dollar, those were converted in US Dollars as a preservation. – These rate hikes aren’t coming. Further, the dollar also has risen, because everybody thinks the Fed has finished printing money, which in fact is an obvious lie. Now, they’ve created a situation to print a lot more and that will come. When the dollar goes down, it’s not going to have anyone interested to hold the worthless paper. No one is going to buy it. Nobody is going to fight that currency war again. America is going to lose that war. And anybody that holds US dollars is going to lose that war too.
The Federal Reserve has been lying to the people since 2008. They don’t have an “exit plan”; they NEVER had an exit plan. And with $1.7 TRILLION in worthless mortgage backed securities on their balance sheet, and $2.5 TRILLION in Treasuries, the end game is torching the Federal Reserve note and leaving the American people in absolute servitude and neo-serfdom.
“Criminals are running the Federal Reserve and using it as both a sword to steal money and a shield to conceal their crimes.” – John Titus
The implications of this knowledge are truly staggering because it means that anyone with fiat money, owns nothing at all.
The global economy is downshifting:
This epic debt bubble will ultimately burst first by deflation before then exploding in hyperinflation due to additional massive money printing efforts by frightened global central bankers acting in unison.
The global economy is downshifting fast, and with many flashing red warning lights indicating as much.
Central Banks are failing and global currency markets are in disarray. The global Bubble is bursting – henceforth-financial conditions are tightening. Bubbles never provide a convenient time to tighten monetary policy. – Best practices would require central bankers to tighten the money supply early before Bubble Dynamics take firm hold. Central bankers instead nurture and accommodate Bubble excess. It ensures a dead end.
What does it mean when currencies are in retreat across the globe? It means that speculator’s money is rushing out of weaker economies and back towards the stronger US Dollar. This is consistent with a liquidity crisis, one where all the borrowed money used to spark all those heady asset gains and falling yields on the way out do the exact opposite on the way back.
Doug Casey is right – there’s never a good time to pop a bubble. So the central bankers just sit, paralyzed, afraid to even raise rates by a token amount for fear that the domino’s chain of global bubbles will burst as a result. They needn’t fear: the bubbles will burst no matter what the Central Bankers do!
Central banks can print money, but if banks don’t lend and consumers don’t spend, then there is no inflation. But the C.B. failure to cause inflation by money printing has led to discussion about new ways to cause inflation, including negative interest rates.
How would this work in practice? If electronic deposits had negative interest rates, people would just move to cash. But could they? What if the government outlawed cash? What if the government separated “digital” money from “paper” money and said that paper money was worthless?
The negative interest rate, invented by bankers is another way to steal your money. The only defense for savers may be hard assets such as land, art, natural resources and precious metals.
Gold is ridiculed by anyone who views gold as an investment. But Russians and Chinese continue to acquire gold at a record pace. Physical gold and silver are now in short supply.
Before becoming Fed chair, Bernanke also said that the Fed could always produce positive inflation if it really wants to. He said,
“The U.S. government has a technology, called a printing press – or its electronic equivalent – that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”
Central banks around the world are using reckless monetary policies to stimulate their economies, and as QE and ZIRP – Zero interest Rates – didn’t work, they still keep hammering about necessary inflation to stimulate economies.
To Avoid depression Inflation can be created instantaneously:
But if they really want inflation, there is a factual solution, to create instantaneously inflation by simply changing their policy in announcing the world that effective immediately, the price of gold is US $ 5.000/ounce. The Central Bank will be a buyer if the price hits $4,950 per ounce or less and a seller if the price hits $5,050 per ounce or higher. In other words, they will print money when they buy and reduce the money supply when they sell via the banks. This is exactly what the Central Banks do today in the bond market when they pursue QE. They only would simply substitute gold for bonds in their dealings. And more suitably target the gold price rather than interest rates.
A rise in the price of gold from today’s level to $5,000 per ounce is about a 75% devaluation of the dollar; measured in the quantity of gold that one-dollar can buy. This 75% devaluation against gold will cause all other dollar prices to rise. Oil would be $375/barrel, and all other price will rise accordingly. Voila there is the required inflation. Don’t think it is impossible, in 1933 to break the deflation of the Great Depression, President Roosevelt ordered an increase in the gold price from $20,67 per ounce to $ 35 per ounce, that was about a 75% rise in the dollar price of gold. And the Depression was over. The economy grew strongly from 1934-36.
And to show the necessity of such a move, the IMF worrying about severe deflation, and told the world recently:
Governments and central banks risk tipping the world into a fresh financial (deflationary) crisis, the International Monetary Fund has warned, as it called time on a corporate debt binge in the developing world. Emerging market companies have “over-borrowed” by $3 trillion in the last decade, reflecting a quadrupling of private sector debt between 2004 and 2014, found the IMF’s Global Financial Stability Report.
This dangerous over-leveraging now threatens to unleash a wave of defaults, which means severe deflation that will imperil an already weak global economy.
Is the IMF actually telling the truth this time? In that case the world is facing the greatest debt bubble it has ever seen, which is a monumental threat to the global financial system.
Latest Development – the FED is nationalised!
It sounds unbelievable but good news is on its way concerning the abolishment of the Federal Reserve Board, known as the FED. The Central Bank has been taken over by the USA military and is effectively nationalized. Visiting the home page of the Federal Reserve Board confirms that it is no longer in operation and replaced by a government owned site, which can be checked. This site isn’t in operation http://www.federalreserve.org and replaced by the government owned site: http://www.federalreserve.gov/
The US military, under the new leadership of Marine General Joseph Dunford, has come out with guns blazing to free the people of the United States and the world. Under his command, the US military has taken over the Khazarian mob’s main source of power, the Federal Reserve Board.
The Chinese coordinated with this move by announcing their China International Payments System alternative to the Khazarian controlled SWIFT system meaning their take-over of the US dollar system outside of the United States was proceeding as planned. The implosion of the big Khazarian mafia banks is now just a matter of time.
Implicating that the ECB, Bank of Japan, and basically all other central banks are going to be returned to the people. The Khazarian Mafia is no longer able to steal from us the people. Sounds too good to be true, but the intelligence sources are known to be quite reliable. Expect more developments in the coming weeks.
Germany engine of Europe:
Germany’s economy is the economic engine of Europe. It is the primary source of the money required to save Greece, Spain, Portugal, Italy and France from default.
And Germany’s economy is sputtering and stalling, initiating a major economic collapse in the EU, and is suddenly being beset by a long list of debilitating crises.
The list includes exploding unemployment, plunging exports, skyrocketing costs for social services due to its immigration crisis and an RKM instigated and debilitating emissions scandal at Volkswagen and other German carmakers that is likely to leave its largest employers a smoldering ruin.
Just when things couldn’t get worse…
Bloomberg reports that Deutsche Bank — Germany’s largest bank — is about to report a massive third-quarter loss of 6.2 billion euros ($7 billion). The bank itself admits that the losses are likely to eliminate its dividends for the entire year. – And to dismiss 2.900 workers.
And as if to add insult to injury, Germany’s economic ministry just reported that factory orders unexpectedly plunged in the most recent reporting month, sending a clear signal that the economy is going down the tubes. And, Germany’s growth forecasts were slashed by well over 14%.
History repeats itself:
The most important thing to focus on is how in Cyprus in 2013 the lies and propaganda were spread for months leading up to the collapse. Then in the space of a single weekend, the whole mess came unhinged and accounts were frozen.
One weekend is not gradual process. It was sudden and it was total: once it began in earnest, the banks were closed and people couldn’t get their money out. There were no warnings that this was coming because everyone at the top of the financial chain is highly incentivized to keep quiet about this. Central Banks, Bank CEOs, politicians… all of these people are focused primarily on maintaining confidence in the system, NOT on fixing the system’s problems. Indeed, they cannot even openly discuss the system’s problems because it would quickly reveal that they are a primary cause of them.
For that reason, you will never and I repeat NEVER see a Central banker, Bank CEO, or politician admit openly what is happening in the financial system. Even middle managers and lower level employees won’t talk about it because they don’t know the truth concerning their institutions or they could be fired for warning others.
So remember you will not be warned of the risks to your wealth by anyone in a position of power in the political financial hierarchy, with the exception of people like Ron Paul who are usually marginalized by the media.
The Moral of this Essay:
Would you let the system continue as it is, knowing 50 million people will die? It may sound like a strange question but it’s a deadly serious one that our government officials know about for many years. That number is the estimated outcome if the current system breaks down in the EU, and at least a comparable number in the US. One hundred million or more people without money, no food, no water, no medicine, no police… nothing. Resulting in rioting, looting, burglary and mass chaos.
Of course nobody knows what would happen if the system breaks down and then THE TRUTH is told to the people. – The Truth is just a lie that hasn’t been found out! – That’s where the problem lies and that’s where the situation can be fixed without it all falling apart…
Tell us ‘The Truth’ about how the world got in this state and then tell what’s going to be done about it, as solutions are at hand, just maybe we all can move on peacefully.
That’s all we people ask for… THE TRUTH.
FED quietly revises total US debt from 330% to 350% of GDP
After ‘discovering’ another $ 2.7 Trillion in debt!
Changes in way the Fed reports the total amount of debt in the economy revealed $2.7 Trillion of debt that was previously unreported. Makes us wonder how much more debt is being concealed by fraudulent government accounting methods using off balance sheet entries.
European Ruin Union
Finally Nigel Farage blasts Hollande and Merkel!
October 19, 2015 at 11:41 am
Latest Development in Finance:
It can now be reported that the Bank of International Settlements (BIS) and the International Monetary Fund (IMF) have notified U.S. Treasury Secretary Jack Lew that Glencore Commodities is now up to $250 trillion in derivative and ETF debt that is about to infect all worldwide banks and financial exchanges, including the U.S. Federal Reserve itself. – Glencore Commodities was founded by the late commodities trader Marc Rich who was the chief fundraiser and crooked swindler acting on behalf of his two white trash benefactors, Bill and Hillary Clinton.
Reference: Marc Rich was illegally pardoned by Clinton before he left office.
Is Glencore The Next Lehman? The World’s Largest Commodities Trading Company Is Toast!!!
Read more about what Bill Holter writes: …this coming rally will be the one you NEVER sell for dollars, euros, yen, pounds or maybe even yuan. It will be foolish to “sell” your gold for a fiat currency …ANY fiat currency. I believe when the system breaks and gold does go into hiding, it will not reappear for sale until new and credible currencies are issued. The mindset will change and holders of gold will only be coaxed to sell for something they can have confidence in. It is this thought process which will be at the center of asset repricings as we re set.
Let me finish with this, I and many others have been called “fearmongers” for writing about the coming collapse. “We”, those who said these same things in 2007 and 2008 were branded fearmongers then also. The thing is this, nothing has changed, nothing has been fixed and in fact the world is more in debt and further leveraged than it was back then. This is 2008 all over again only worse and this time …the global central banks and sovereign treasuries cannot ride in and fix anything because they have already blown their credibility!
We live in a world which is financially foundationed by the currency of a bankrupt issuer who prints this money to purchase their own bonds. Several $100 trillion of debt and over $1 quadrillion in derivatives rely on this currency for their “value and pricing”. It amazes me how so many people who once knew “what” exactly they owned, now don’t even have a clue because of the psy ops so well orchestrated.
This is for ALL THE MARBLES and THE MOST IMPORTANT CROSSROADS IN MODERN DAY HISTORY! Please dig deep for your own common sense and logic …your financial life depends on it http://www.silverdoctors.com/bill-holter-what-do-you-suppose-will-happen-to-gold-silver/