Monday, March 14, 2011

The Rule of Gold After The Financial Collapse

SARTRE, Contributing Writer
Activist Post
In a secular world, the operative "Golden Rule" is "He Who Has the Gold Makes the Rules". The condition of the global financial banking system is untenable. The aggregate amount of debt worldwide is anyone’s guess. The introduction of derivatives and counter claims pushes the chain of obligations into the unknown. All that is left is for central banks to create mountains of uninterrupted counterfeit money to roll over and delay the inevitable. The IMF chart of World Currency Reserve is a skyrocket line to oblivion. It does not reflect a healthy stockpile of treasure, but certainly manifests a new debt machine running to infinity. The Bullion Vault explains this reality in the following manner.
"Sure, the Fed can create money. But it can't create credit (from the Latin credere, "to trust, have faith"). And it sure as hell can't let America's outstanding debts – both private and public – simply get written off now, neither at home nor abroad. Not after all that crashing and banging in ER from 2007-09.
So never mind the record-large cash pile sitting at non-financial corporates. Never mind that their problem is too much debt, not the $1.8 trillion in cash they've already got. Never mind the 50-fold growth since 2007 to $1 trillion in US banks' cash holdings either. Again, debt is their problem – not a lack of money – but it doesn't matter. New money is the only fix Dr. Ben now has to hand (he's all out of interest-rate cuts). So those foreign reserves, US corporates and domestic banks already drowning in money will get flooded with more".
Back in 1966 Alan Greenspan wrote in The Objectivist, Gold and Economic Freedom.
"Under a gold standard, the amount of credit that an economy can support is determined by the economy's tangible assets, since every credit instrument is ultimately a claim on some tangible asset. But government bonds are not backed by tangible wealth, only by the government's promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets".
Since the gold standard was abandoned worldwide, the banksters have run wild. 

So who owns all the gold? Part of the answer is that the official sector holds much less, than one might think.

Wealth Daily concurs with the Dollar Daze list of largest holders of bullion - United States, Germany, International Monetary Fund, Italy, France, SPDR Gold Shares, China, Switzerland, Japan and Netherland, rank as the top ten.
"Central banks and multinational organizations (such as the International Monetary Fund) currently hold just under one-fifth of global above-ground stocks of gold as reserve assets (amounting to around 30,500 tonnes, dispersed across 110 organisations). On average, governments hold around 10% of their official reserves as gold, although the proportion varies country-by-country".
So how much gold is there above ground?
Total 165,600 metric tons above ground stock
1 metric tonne = 32,150.746 Troy ounces
Total 5,324,163,537 Troy ounces
Price Quote at $1,424.00 per ounce
Total value in U.S. Dollars = 7 Trillion, 581 Billion, 608 Million, 876 Thousand and 688 Hundred Dollars of all gold worldwide.

Since the US Mint reports that Fort Knox stores 147.3 million troy ounces, current redemption in U.S. Federal reserve notes would be approximately $366,261,298,432. That is a drop in the bucket against the outstanding Federal obligations, which exceed world GDP. Then there is the question of exactly how much gold remains in government hands or if the bullion is actually good delivery gold. View the video there is no Gold at Fort Knox for an alarming report. Have you ever wondered why the Federal Reserve and their co-conspirer central banks for decades waged a war against gold? The Paper Empire sums up quite nicely.
"The Federal Reserve is arguably the most powerful institution in the world as it maintains the sole legal right to counterfeit the world’s reserve currency without limit and without oversight. This allows them to bail out the too big to fail banks, manipulate currencies, support foreign central banks and corporations and allow near endless government spending above and beyond what the government can pay for through direct taxation. A true, enforceable gold standard would put an immediate end to all of that".
Now examine the seamy history of IMF gold sales. The next video, The IMF sold Gold plated tungsten bars to India, illustrates why the international banking system needs to be eliminated. The Gold-plated tungsten bars scandal is about to erupt. Imagine the chaos among banking circles when governments become aware of a bait and switch delivery fraud.

If all the gold in the world has a current value of less than eight trillion dollars, how much could be bought by the Forbes 2011 Billionaires List, which breaks two records: total number of listees (1,210) and combined wealth ($4.5 trillion). How much do they already own? 

What is never disclosed in official statistics of wealth ownership are the names of the true underworld bosses of the global controllers. The shadow manipulators conceal the extent of their money hordes. Most public lists painstakingly omit the master criminals. Their plan is to buy real assets with counterfeit notes obtained through illicit profits from rigged markets and phony financial derivative instruments.  

When the banking system finally collapses with mathematical certitude from the burden of compound interest, these same crooks will be prepared to provide a specious substitute. The schemes described in IMF Plotting Gold-Backed SDRs?, make the following point.
"The IMF is about as likely to help individual European countries subvert the euro via gold as it is to encourage debtor countries not to honor banking their debts. The IMF is a creature of the power elite, and it will always remain so, in our opinion. But none of this militates against the idea of the IMF backing its OWN currency (SDRs) with gold".

Since 1999, the bulk of sales from central banks have been regulated by the Central Bank Gold Agreement/CBGAs which have stabilised sales from 15 of the world's biggest holders of gold.
Significantly, gold sales from official sector sources have been diminishing in recent years. Net central bank sales amounted to just 41 tonnes in 2009.

A most revealing fact is that central banks and governments do not possess the bulk of gold supplies. The World Gold Council publishes an astounding pie chart, 83% of above ground stocks are in the hands of industry, investment and jewelry concerns. This overwhelming percentage points to an alternative to the fiat paper debt created banking tyranny.   

Only individual ownership of gold, directly in your own possession can preserve any store of value when the next Draconian level of the Totalitarian Collectivism system is imposed after the financial meltdown hits in earnest.

How much gold is enough?, offers up this solution.
"When individuals acquire gold in mass, politicians will be forced to address the public debt, and the true extent of the unconscionable confiscatory taxation condition that we all suffer. Limited government can be achieved, but must be based upon a currency that has gold convertibility. There lies the answer, keep enough gold to insist that real money will replace phony Fed notes. Nothing less will restore a store of value or a nation of free citizens".
Remember that tyrannical regimes are always arbitrary. Executive Order 6102 was signed on April 5, 1933, by U.S. President Franklin D. Roosevelt "forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates" by U.S. citizens. This kind of blatant violation of the U.S. Constitution is routine. Citizen ownership of gold could very well become illegal again. 
However, if it is, you will already know you are a pawn in a fascist state. 

The risk banning gold ownership and government confiscation is always real for individuals. However, the prospects of rounding up gold bullion as contraband from banking institutions or the chosen and privileged financial elite, would require a coup d'état. The establishment will sacrifice hundreds of millions of expendable serfs, before it relinquishes the reins of superiority over the humble taxpayer.

An underground barter economy will thrive, while it is condemned as a black market. Any attempt to substitute new money with a gold component, must allow for unlimited convertibility for it to be a legitimate monetary system. As long as the same globalists retain political rule, you can bank on the scheme proposed to be another sophisticated attempt to rob and enslave you, all over again.

Douglas Herman offers up four possible scenarios, the best of which requires an old currency recall, and replacement with new species money. The other theories feed into the control matrix of the globalists to implement even greater despotic methods of servitude. Intentional civil unrest provides opportunistic excuses to herd the cattle into the pens of slaughter. Just owning private gold will not protect citizens adequately, until the gold hordes of the elite are stripped from their control.

The decisive test remains the same, who has the bullion makes the rules, with one caveat. If you are so foolish to accept the next new-fangled money hoax from the same banksters who brought you their planned global collapse, you deserve to be a slave. Business wealth creators need to lead the charge to abolish the phony debt created money monopoly. Financial Armageddon lays at the feet of humanity. Gold alone will not save you, but it will allow the means for rebuilding a society free of banksters’ tyranny, only, if you have the courage to remove their ilk from all seats of power and government.    

Original article archived here 

SARTRE is the pen name of James Hall, a reformed, former political operative. This pundit's formal instruction in History, Philosophy and Political Science served as training for activism, on the staff of several politicians and in many campaigns. A believer in authentic Public Service, independent business interests were pursued in the private sector. Speculation in markets, and international business investments, allowed for extensive travel and a world view for commerce.  SARTRE is the publisher of BREAKING ALL THE RULES. Contact   

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Anonymous said...

The deflationary depression has not abated.

We see very real commodity inflation, but commodity inflation is not coupling with wage inflation, which keeps consumer prices under control.

There is a very real decline in the standard of the American standard of living. Housing has gotten vastly more expensive due to falling wages, rising property taxes and maintenance costs.

But, the American consumer market is still economically very powerful, if it is increasingly being controlled and funneled by centralized-planning.

The debt everyone from China to your own bank holds is foundering, becoming increasingly less tenuous. Deflation rules the roost.

If 50% of Bank of America's mortgages are bad, then 98% of Fannie Mae and Freddie Mac mortgages are bad. And there is no correcting that without massive wage inflation.

Yes, dollars buy less gold. But this is insignificant, and it is largely due to unregulated marketing-hype.

There is no cogent economic reason other than hype to explain the rise in the price of gold.

To say gold is going up because the dollar is going down, simply is not true. The dollar is not going down. We are in a deflationary depression. Cash is king. You can by a 40 foot sailboat right now for $3000. I bought 23.5 acres last summer for less than 1/2 its assessed value.

Yes, your dollar buys less gasoline. This is not insignificant, and is in fact a tool of Western hegemony.

The worldwide demand for oil has fallen every month for over two years, and it will continue to fall too. Did you see all the Japanese cars get destroyed over the weekend?

But, American oil companies need a high price at the pump. So they get what Congress allows them. American power is in part a function of the power of a barrel of crude oil.

The function of an ounce of gold however, is not.

And I am firmly convinced, the rug is going to get pulled out from underneath all the gold bugs, many of whom are not going to see it coming.

I am firmly convinced the federal government is behind the rise in the price of oil AND the rise in the price of gold too.

I am firmly convinced a trap is being set with gold -a trap whose jaws will slam down so fast, many countries dabbling in gold will be completely broken by this trap.

The other shoe is still -yet to drop- in this deflationary depression.

When it lands, understand me, the rules of the game are again going to be hidden in no man's land, the no-fly zone and the DMZ.

All is NOT quiet on the Western Front.

War is coming.

Don Robertson
Limestone, Maine

Mouser said...

The key domino in getting the world to accept a global fractional reserve currency is China.

Don't misunderstand, global currency is 100% suicide and will lead to an effective one world government by the oligarch banking families.

The private central bank in China is rumored to be 50/50 rather than 100% Rothschild owned as it is in the other 192 of 197 countries. Therefore, it is slighly harder to implement the private fractional reserve global currency in China than elsewhere in the Rothschild empire, excluding Iran, Sudan, North Korea and Cuba.

George Soros (Swartz) has the job of selling the Evelyn Rothschild (Bauer) plan for defacto global autocracy as instead being the salvation of the economic crisis.

event - reaction - solution

debt suffocation - fear of devaluation - global fractional reserve currency (world government)

Once the China domino falls, the door will be wide open to implement a private global currency in 193 countries. It will be touted as "gold backed" instead of "fiat", but actually will only be fractionally gold backed at less than 1:100.

More importantly it will be a private currency - meaning that Rothschild and the oligarch banking families will be able to create money autocratically with out input from the people of the world who use it.

This 'gold backed', fractional reserve, private global currency will be lent out to governments and individuals with usury. Thus ensuring literal debt slavery from cradle to grave for individuals and countries.

As the life blood of any society, Rothschild will hold everyone and every country in the palm of his hand. And once implemented, anyone who dares to oppose him can be taken off the grid with the flick of a key stroke.

Worse than heroin. As bad as cancer. Manifest dictatorship disguised as "economic freedom". Orwellian doublespeak - 100%.

Don't do it, ever.

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