Excerpts: Æ8; First is the diagnosis. The USDollar and USTreasurys act much like a cancer and its metastasis agent respectively within the global banking system, not just the Western continents. The time has finally come for numerous economies to sever the US$ and USTB connection, or face ruin. Foreign governments, central banks, and financial entities of significance have concluded that the United States, its financial structures, its defense contract structures, and global bank entities, have morphed into very dangerous criminal enterprises. These cancerous organizations are replete with gigantic USGovt-sponsored Fannie Mae mortgage fraud, now endorsed and underwritten by the USGovt, but not before their export to foreign bank vaults. They are replete with central bank association with Wall Street financial crime syndicates, which not only process the gigantic mortgage fraud (far deeper than simple subprimes), but also handle vast money laundering from Afghan narcotics trafficking. They are replete with military aggression used in foreign policy, resource acquisition via national annexation, and political retribution when policy is challenged. They are replete with arms dealing, weapons theft, and accounting fraud centered in the Pentagon, with heavy partnership tied to a tiny Mideast ally that does not speak Arabic as its native tongue.
Second is the motive for action. The decision has apparently been made by a consortium of powerful foreign financial entities, a collection of bankers and industrial firms, that the USEconomy and US population cannot be separated practically from the syndicates lodged like parasites within the body American. A cancer has spread across the globe at the same time. Consequently, the only practical response for the foreigners is to cut off the United States from the global financial system, to pull the rug from under it, and to kill the parasites and cancers by whatever means. The American public has been unsuccessful in properly ridding itself of the vermin, in the majority unaware even of the abusive treatment from hegemony practiced routinely decade after decade. Hence, a decision has been made to inflict heavy damage upon the US population in order to subdue the American crime syndicates. The risk to the rest of the world is too great in permitting the vile syndicates to continue. They must cut off the cancer and dislodge the parasite, or risk destruction to their own nations. They must stop the great American criminal enterprises. The USCongress itself is grotesquely compromised by lobbyists, deep campaign contributions, regular defense contractor payoffs, even hefty Fannie Mae loans as favors. The USGovt has become host to deeply compromised regulators like the Securities & Exchange Commission, the Commodities Futures Trading Commission, the Federal Deposit Insurance Corp, even as the Debt Rating Agencies and Bond Insurers have been subverted. The law enforcement bodies like the Attorney General, the FBI, and Drug Enforcement Agency are also used as active agents to protect the syndicate, to harass opponents, and more. Then lastly the US press networks seem to be force fed by the USGovt, and heavily influenced by a certain Mideast slant, thus distorting the US global outreach role.
Third is the decision and vehicle. These foreign financial entities, led by USTreasury creditors (investors), have decided on a new global reserve currency. It will effectively render the USTreasury Bond to the dustbin, chopping block, and cemetery. They intend to launch this new currency, so as to undercut the US Machine, powered by the USDollar. This is how they pull the rug from under the many syndicates operating under the protection of the United States Govt, that is the banker gangster (i.e. bankster) thieves, bond conmen, banking assassins (IMF, World Bank), drug merchants, and weapons dealers. Late in the first week of October, in Berlin Germany, a consortium of finance officials met to hammer out an agreement to form a new global reserve currency. They did so in secrecy. The new global reserve currency mentioned will potentially be weighted by an undetermined formula of the new Nordic Euro, Russian ruble, Japanese yen, and new Arab Gulf dinar. One profound aspect in common among these four currencies is their association with economies commanding export surplus. This is a total reversal of the USDollar, tied to deep deficits, more recent insolvency, and economic implosion. The new global currency is ready to be launched with a push of a button. They are waiting for the right moment to deliver the deathblow to the US financial structure. The US will be shown its rightful place on the debtor bench, earned by a crescendo of celebrated debt abuse. The timing will likely be in synch with a climax of US disintegration, fully assured. The new currency will have a core of precious metal whereas the outer ring will be made up of a currency basket linked to surplus nations rich in resources and technology expertise. These two components will be combined in bilateral agreements. The objective is to install a stable commodity based currency tethered to actual commodity prices, and thus to mitigate the effect on exchange rates from whatever inflation is produced.
Æ8; The new Gulf dinar will be primarily gold backed, but also backed by other commodities, a large minority weight given to crude oil. In other words, a new gold currency will emerge, which will be tethered in a principal fashion to crude oil. This marks the end of the Petro-Dollar, complete with its sick protection racket element. The Arab and Persian Gulf and West Asian nations can proceed with a more healthy, robust, sane, and stable currency system separated and insulated from the United States. A key element of the new global currency basket is the absence of USDollar and British pound sterling. Consequently, each nation will be kicked into the Third World. The Canadian Dollar will likely be kept at a low level in order for the Canadian supply chain to feed the expanding Chinese economy, with cheap commodity prices. The best way to protect yourself is to invest in physical gold or silver, especially silver, since an unspeakable loss of wealth will come to the US victims caught inside its walls, if they leave themselves vulnerable. Dhubai has long lusted to become a world gold trade center. They will have their wish.
The sequence will unfold in an event driven scenario in the next several months, but not a calendar driven flow. Many decisions and apparatuses are in place. The process is well advanced and ready to go at any time, having been created in secrecy, apart from destructive and disruptive US actions. Plenty of past precedent showed that the US attacks some formations. See the Asian regional credit market meetings, for instance. The movement will be revolutionary, since the USDollar and its USTreasury Bond trading vehicle will be removed from prominence and leadership. The catch phrase is “the rug will be pulled from under the corrupt Americans” with shock. The movement will be led by Russia, coordinated with China and the Gulf States (two primary owners of USTreasury Bonds soon to default) with heavy involvement by the Teutonic tribesman in full color garb from Berlin, along with key old trusted allies in Tokyo. All parties will pay particular attention to protect Chinese interests, since young, ripe with potential, not fully developed, and highly vulnerable to US$-based writedowns.
The world inside the United States is soon to be turned upside down! It is anybody’s guess what the trigger flashpoint event might be. My guess is the USDollar is soon to instantly lose its global reserve status, as a result probably by a Saudi announcement that oil is to be purchased using a new currency backed by commodities led by gold. Arabs have turned to the Russians to help them to escape from under the US Protection Racket extending over many years, and reaching climax proportions since the 911 events and the Iraqi War in their back yard. Saudis must react soon. Their financial system faces turmoil from close association with the USDollar, linked via an enforced peg. The Saudi Arabian M3 money supply growth, an indicator of future inflation, accelerated to 22% growth in August after 21% growth in July. Cut or be further hurt! The flashpoint even might be the disintegration of the USEconomy from supply and distribution seizure interruptions. Chaos would result, enough to dislodge the USTreasury Bond from anything remotely described as a Safe Haven.
Æ8; The implications of the new global currency are profound. The benefit goes to the Europeans, Asians, and Arabs. The pain goes to the United States, United Kingdom, and perhaps somewhat to Canada. Here is the process for the USEconomy, centered in crude oil. No longer will the US be able to conduct a credit card transaction when purchasing crude oil, carried out as a USTreasury Bond swap with the oil producing nations. Instead, the US will be forced to bid up foreign currencies accepted for oil transactions, like the Gulf dinar. In doing so, the USDollar will fall in value as a direct reflection of the enormous trade deficits, since the US imports 72% of its energy needs. This bidding process will force up the currencies either in the global basket reserve currencies, or the Gulf dinar, depending on what the OPEC nations led by Saudis demand.
The US will soon be treated like all other debtor nations, feel the insult, and embrace reluctantly the impoverished trend. My transitional image is an immediate kick down the financial staircase into the Third World basement. This means the creditors are calling the songs and the debtors have to dance to the tune. The USDollar will collapse due to the disruption of the supply chain and disintegration of the USEconomy. The end result is an assured sudden and breathtaking default and bankruptcy. Whatever new Bretton Woods Accord is struck will be defined by creditors and not debtors!!!
The Powerz attempt to drive down the paper gold and paper silver prices, so as to kill demand. They have failed, and a day of reckoning comes. The paper game is soon to end.
In late September, on back to back days, the departure of silver from physical stocks in the COMEX vaults was huge, as in 600k oz silver and 250k silver. At one point only 5000 oz silver remained in inventory. The decline in the silver price coincides with vanishing inventory! A default event is close. Criminal fraud prosecutions could follow.
My full expectation is for criminal prosecutions and very public arrests to come to COMEX officials, who have sponsored fraud in several contracts like gold and USTBonds, and engaged in massive collusion with the Commodities Futures Trading Commission, surely with the Dept of Treasury also. The exposure will add fuel to the gold rush.
In many areas of the world, the premium for gold delivery is $130 to $150 above spot. Mark O’Byrne, from Gold Investments in Dublin Ireland, said “Premiums continue to surge on a daily basis on bullion coins and bars, making the spot price less relevant all the time.” On EBay, investors have bid 1-oz Kruggerands up to $1300 each! In Austria, a gold rush has reached hyper-drive.
An important breakdown in the paper market could happen at any time.
The demand for physical gold and physical silver is growing magnificently. Dealers have reported countless stories of huge demand, big enthusiasm, and gradually depleted supplies. Many entire nations report huge demand also.
The physical gold market is ultimately the final arbiter on price. The lease market is an excellent forward indicator on physical price movement. Silver lease rates have tripled, just like gold, which are strong forward indicators on physical price. Silver is attractive to legions of less wealthy investors.
Gold above ground will soon get revalued much higher, now taking place. The process will most likely NOT be led by the United States, but rather by most every other foreign major nation, from Europe to Japan to Arab lands to India to Russia to China, even South America. By avoiding gold hedge investments, a hedge against phony money, Americans will find themselves destitute and poor in their new home, the Third World. The rug will indeed be pulled from under them, even as press networks fill their eyes and ears with propaganda and false news that aids the Ruling Elite who have executed a Coup d’Etat, complete with multi-$trillion larceny.
Æ8; The foreign currencies have all but brutally devalued. This is the direct effect of the liquidation phase prior to the death of the USTreasury Bond. Since the USDollar bore a 1% yield for over two years from 2002 to 2005, it was the great wellspring for cheap money. The speculative trades fed off that cheap rate, but they are unwinding. Many spread trades are anchored by USTBond. The vast credit derivative destruction settles in USDollars, a factor causing bizarre US$ demand, not adequately reported. These two factors result in big US$ demand in an artificial atmosphere, taking delivery of nothing. The practical effect is to push price structures higher in all these foreign economies. They will fight back very soon in defense of their nations, which are orders of magnitude more healthy than the utterly fractured, distorted, gutted, corrupted, imbalanced, bankrupt USEconomy.
BRIEF COMMENT ON GOLD, SILVER & MINING STOCKS
Æ8; The gold price and silver price have each suffered as this great margin call phase proceeds in de-leveraging. Be sure to know that the Laws of Supply & Demand are destroyed temporarily for the precious metals. Two markets exist, one paper and one physical, with a vast gulf between them, causing great strain, ultimately to break. Order has been ruined, but it will return, but only after more events steeped in crisis. When the US-based bank runs pick up speed and accelerate into a nationwide crisis, gold will be recognized. When the COMEX and LME enter default, gold will be recognized.
When this disruption phase ends, the gold & silver prices will reverse course and seek their true value. Until then, the process is emotionally gut wrenching. The immediate beneficiary of abated liquidation will be physical gold & silver. Their price decline has been gradual and linear. Their price rise will be fast and exponential.
My informed opinion is that the USTreasury Bond will undergo tremendous strain very soon. Also, the USEconomy will enter a disintegration phase very soon. Since the bank system has had almost no repair and removal of blockages, the seizures will return. Any gifts to bank balance sheets from rescues will be eaten with acid quickly, all in time. The only practical result of massive bailouts has been redemption of criminal fraud. The entire distribution system, both overseas and domestic, connecting to the US and connecting within the US, is soon to break down, if not collapse.
Sadly, the only relief for gold & silver investors, both physical and mining stocks, comes when the United States system breaks down. That event is assured. Many are expecting a return to normalcy, which will never happen. Investment with an eye toward the upcoming breakdown and collapse is difficult. Patience amidst harmful body blows is difficult.
EXPECT GRAND CRISIS AHEAD. EXPECT PROFOUND DISLOCATION EVENTS AHEAD. EXPECT PRICE DISCONTINUITY IN GOLD & SILVER AHEAD. FOREIGNERS HAVE PLANNED TO PULL THE RUG OUT FROM UNDER AMERICANS. THEY AWAIT THE RIGHT MOMENT OF WEAKNESS AMIDST CRISIS. THAT MOMENT IS COMING, AS ASSURED AS THE DAWN FOLLOWS THE NIGHT. THE END TO THE NIGHTMARE OF CORRUPTION IN LEADERSHIP AND STEWARDSHIP OF THE USDOLLAR AND USTREASURY IS NEAR. IF YOU BELIEVE THESE WORDS ARE EMPTY, GET BACK TO ME IN 4 TO 6 MONTHS. THE FLOW OF EVENTS IS ACCELERATING.
