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Posts Tagged ‘currency manipulation

Fooled Again!

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by John Rubino
Posted December 2, 2011

THE PATTERN IS BY NOW SO FAMILIAR THAT IT DESERVES A PLACE BESIDE other technical indicators like moving averages and Fibonacci retracements. It begins with part or all of the global economy appearing to implode under its five-decade accumulation of debt. The public sector/central bank nexus responds with a liquidity injection, leading the markets to rally explosively and the pundits to declare the problem fixed. Then the markets gradually remember that liquidity and solvency are two different things, and that the mortgage lenders/money center banks/PIIGS countries/hedge funds/State and local governments, etc., are insolvent, not illiquid. And the cycle begins again.

But what to call it? “Sucker rally” seems a little too benign and prosaic for a process that looks more like fraud perpetrated on a learning-disabled, desperately-credulous victim.

“Death throes of a decadent system” is accurate but too pretentious and doesn’t convey the cyclical (and cynical) nature of the process.

“Financial terrorism” is better, since the regularity of the cycle — and the fact that central banks have absolute control over the timing — imply that there’s massive insider trading going on, possibly as part of a scheme by the (name your favorite elite conspiracy group) to suck as much wealth out of the system as possible before finally letting it collapse. Still, the term doesn’t convey the comic aspect of rich, supposedly-astute players getting suckered over and over. Incompetent money managers are funny.

In the end, what it’s called is less important than the fact that it’s a great trading indicator. Starting in 2007, if you’d gone long risk when the markets were falling apart — on the assumption that panicked governments would quickly intervene — and then taken profits and gone short a few weeks after the intervention, you’d have made a fortune from all the volatility.

The current market looks like another perfect set-up: A week ago, Europe was collapsing, China was slowing down and the US budgeting process was paralyzed. Stocks around the world had fallen hard, and a Euro-zone breakup was being actively planned for by governments and trading exchanges. Armageddon, in other words. So the central banks inject another hit of liquidity and Germany and the ECB appear to embrace the commingling of the continent’s balance sheets. And voila, the bulls are back in charge.

Now, trading strategies work until they don’t, and there’s always the risk that this latest bailout will actually fix the world’s problems and usher in a new era of consumer-led growth with soaring corporate profits, low inflation, and rising share prices. But…nah, why even give this possibility serious consideration? Nothing that was promised this week will make much of a near-term difference. Lower reserve requirements in China and cheaper dollar-denominated loans in Europe are just tweaks to already existing programs. More fiscal integration in Europe is inevitable if the common currency is to function as promised. But think for a moment about what this implies — Germany and France getting to micromanage Italy’s pension and tax system — and it clearly isn’t happening this month. Getting from here to a German-run Europe will take maybe five more near-death experiences, and in any event won’t address the fact that even Germany’s balance sheet (when you include its unfunded liabilities) really isn’t AAA.

So, the pattern should hold: “Risk-on” trades work this week, then things get choppy for a while. Then the markets grow cautious and finally terrified. The most likely catalyst for the panic stage is the massive, front-loaded refinancing schedule that Italy and Spain have unwisely set up for early 2012. But it could be anything. The point is to be short risk when it hits but not to marry the position, because more liquidity is on the way. The con will keep working as long as the world continues to see fiat currencies as valuable.

The moral unraveling of the EU, bailouts and central banking

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

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 Greenspan. Occupy Wall Street and 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.

We can see this in Slovakia, where that Eastern European nation was the last holdout among euro-zone nations to approve the EU’s most recent sovereign bailout fund. On Tuesday, the parliament rejected the fund and brought down the government of Prime Minister Iveta Radicova. On Thursday, the parliament voted FOR it, but the point had been made.

Even parliamentary representatives, notoriously resistant to the public sentiment they are supposed to be accommodating, are now beginning to reflect the animosity of their constituents. The Telegraph‘s Ambrose Evans-Pritchard recently captured this sentiment in a column entitled, “EU bailout is racket for financial elites.”

Twenty years ago, no mainstream paper in the world would have run such an article – even given today’s extreme stress and provocation. But times have changed. The financial system has come in for criticism the likes of which has not been seen (or heard) for decades. Here’s an excerpt from Evans-Pritchard’s article:

What the Slovak debate has shown us yet again – as if the political storm in Germany over the past two months has not been enough – is that escalating bailouts are nearing their political limits. The traumatic affair almost brought down the German government. It has in fact brought down the Slovak government. You can’t keep doing this. Democracies are not to be toyed with …

Slovakia’s cry of defiance has not been entirely pointless. Richard Sulik – the speaker of parliament – has caught a mood of popular disgust that goes far beyond his own country. His objections are unanswerable.

How can there be any justification for a state of affairs where a poor but rule-abiding EMU state must bail out a serial violator with twice the per capita income, and triple the level of the pensions – a country which is in any case irretrievably bankrupt? How can it be that the no-bail clause of the Lisbon Treaty has been ripped up?

But he also touched on the most neuralgic issue, reminding everybody that the EFSF is ‘mainly for saving foreign banks’. These are French, German, British, Dutch, and Belgian banks, of course … ‘I’d rather be a pariah in Brussels than have to feel ashamed before my children,’ Sulik said … Bravo.

“Bravo,” writes Evans-Pritchard, summing up the New Age’s defiance to establishment ways. We began to write about this back in August of 2009 when The Market Oracle’s Stewart Dougherty – a financial consultant – sent us a column entitled “The Metastasis of Moral Hazard and its Effect on Gold.” He wanted us to see what he’d written. Here’s an excerpt:

The colossal miscalculation made by Washington and Wall Street is that they could control the moral hazard genie once they removed it from the bottle. They believed they could use the genie to enrich themselves with trillions of dollars’ worth of taxpayer money, and then replace it in the bottle before its magic spell of immorality metastasized throughout society at large. They assumed that the people would be too stupid to see what was going on. And that even if the people did figure things out, they would willingly wear the thick, choking chains of debt being welded to their necks by the financial elite and its Washington enablers.

Instead, thanks to the Internet and the democracy of information and insight it affords, the people were instantly wise to what was happening, and it stirred them. The concept of “an eye for an eye, a tooth for a tooth,” harkens to the Bible. And perhaps Shylock was speaking for all of humanity when he said, “If you prick us, do we not bleed? If you tickle us, do we not laugh? If you poison us, do we not die? If you wrong us, shall we not revenge?”

We thought then, and believe now, that Dougherty wrote one of the decade’s most profound columns, capturing the MORAL dimension of the fraud of “bailouts” and the impact of their fundamental – even obscene – unfairness. We wrote about his column (you can see it here: Have the Immoral Actions of Central Bankers Precipitated the Decline of the West?) and commented:

Dougherty has written a REAL article of REAL observations about the end of Western civilization. Sheesh, … Spengler’s Decline of the West in three darn pages … He’s right, he has gotten the morality right. It’s not just the culture of the West, or its promotions, or even its social organization that is finished.

You CANNOT, as a society, witness a couple of guys pull a trillion out of their back pockets without feeling, well … snookered. And after feeling snookered, something else begins to percolate. “Hey,” you say, “wait a minute. I sit here with my debts and my job and my house in foreclosure and this guy – THIS GUY – throws around trillions? Wait a minute. WHEN DO I GET MINE!”

Now the rage spreads.

The Internet Reformation is a process, not an episode.

David Galland: The System is coming unglued

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by David Galland
from Casey Research
Posted September 9, 2011

Our video host Stefan Molyneux speaks with Casey Research Managing Director David Galland about the debt situation in the US and whether the federal government can do anything about it… assuming they’d even want to.

TRANSCRIPT

Stefan: Hi everybody, it’s Stefan Molyneux, host of Conversations with Casey. I have on the line David Galland. Thank you so much, David, for taking the time to chat today.

David: Nice to be here.

Stefan: So, we are seven-tenths of the way towards fascism in the United States. I wonder if you could expand upon that. I sort of get a sense that that’s probably true, but you have a little bit more than my gut instinct – you actually have some pretty professional opinions to work with on that.

David: Well, all the elements for fascism are in place. We have a monetary system that is accountable to no one and that’s a very good start. If you think about it, the way that the monetary system is structured, the government at this point can literally spend money on anything. They talk about capping the federal deficits and all that, but they’ll get past that in no time at all. Probably by the time the viewers are watching this they will have announced a big deal, you know, that they have raised the debt cap. And you know, once you have – if you pin your money to nothing, if you have a monetary system that is based on nothing, then you can afford anything. You can afford all the wars you want, you can afford all the bureaucracy you want; and so they have. That’s a first step.

I mean, we’ve – just as an example, here in the little town in New England where Casey Research is located, they have a – they’ve just finished building a massive new Homeland Security center. This is a town of roughly 4,000 permanent residents; it’s a tourist town. It’s the kind of place where the worst crime you’ll ever see is somebody stealing skis from a ski slope, and yet we have something like 36 policemen. We’ve got this huge, brand-new Homeland Security center. Why? Well, because after 9/11 and the overreaction of 9/11 the government made this money available because it could make the money available, because there is nothing stopping it from doing that. And there’s all these local police departments, which should have an “Andy of Mayberry” type police force, took the money and they spent it, and now we’ve got a semi-militarized local operation. So this has gone on and this is multiplied right across the country… and the world.

Stefan: And of course, the decisions that people make in expanding the public sector have immediate implications in payroll, but I think what America is really facing are the long term implications of unfunded pensions that just run into the hundreds of billions of dollars. It’s a lot of the stuff that is not really counted in the public calculation of the debt, which is more immediate obligations, but the unfunded liabilities run $75 to $100 trillion according to many estimates. That’s not something that you see, which makes the whole conversation about should we have two trillion here or there ridiculous to anybody in the know.

David: Oh, absolutely. Again, on the point about whether we’re sort of on the way to a fascist state – and I – this isn’t just the US – it’s important that, you know, people understand this is all over the world. At this point, none of these governments is operating on anything that remotely resembles sound principles. They’re operating on a number of different priorities and a number of different interests – self-interests, because politicians after all are just people. So whatever it takes to kick the can down the road, they’re going to do. You mentioned $75 trillion in unfunded liabilities, absolutely. Because at this point, this is essentially sort of a rising tide of bureaucracy over the last hundred years that is cresting at this point. And they have done this because there are no real operating principles other than buying the votes that they need to get re-elected and to stay in office for as long as they can, and then they pass the baton to the next bureaucrat and the system continues. But it’s reaching the point where, I think, within a relatively short period of time it’s got to come to an end.

Stefan: Now you’ve written an article recently which I found very interesting – I just shared it through my Facebook as well – it’s called The Greater Depression. So you have the Great Depression and now we’re looking at the Greater Depression. I wonder if you could talk about the mechanics and the future as you see it as we go into this abyss.

David: Ultimately, what we’re faced with right now and this is, I think, just some fundamental principles – because there are so many aspects of what’s going on in the economy today that it makes it for most people – for virtually all people – it makes it very hard to really understand what’s going on. So sometimes you just have to sort of step back and ask a few questions to try to get some sort of a compass, if you will. And first and foremost the crisis we’re in right now is caused by debt, too much debt. As you mentioned before $75 trillion in government obligations – everybody knows that money is never going to get paid. So we’ve been brought to this point of extreme government borrowing. Who would have thought we’d see $1.5-trillion deficits? I mean, nobody – five, six years ago if you would have asked anybody on this planet if the US government could run a $1.5-trillion deficit they would have said no way. Well, here we are. So all of the conditions of what this – you can call it a debt-induced depression, all of the conditions that sort of brought us to this place have not improved since the beginning of this crisis; they’ve only gotten worse.

So what’s the ultimate outcome of this? Well, what’s the one thing that a heavily indebted person or an entity like the government can’t handle? And it’s rising interest rates. You can’t afford for the bank to bump your payments up to, you know, 20% because you’ve missed a payment. Well, the same thing’s true of the government and we are now – we are still – the US interest rates are still bouncing around, you know, all-time lows. It’s completely – it’s a complete aberration. And it can’t last. So why things are going to get worse is because interest rates have to go up. Even if they return to sort of a more normal five to six percent range, from a historical standpoint it would be devastating to the US economy. So the government is doing everything it can to try to get out of this trouble but there really is no way. They have very limited impact on long-term interest rates and if it wasn’t for the fact that Europe was such a basket case and that Japan was such a basket case right now, interest rates in the US would already be taking off but I don’t think we’re going to have to wait long for that and then things are going to get interesting.

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Economic collapse is a mathematical certainty: The top 5 places where not to be

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by NewAmericaNow
Posted June 26, 2011

Central Bankers race toward global currency solution

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from The Daily Bell
Posted Thursday, August 11, 2011

CENTRAL BANKERS ARE RACING to shield their economies from fiscal tightening and lopsided currency swings that threaten a new global recession. In the 72 hours after a Group of Seven conference call on Aug. 7, the Federal Reserve pledged to keep interest rates near zero through at least mid-2013, the European Central Bank intervened in bond markets and the Bank of England indicated it’s ready to add more stimulus if needed. Japan signaled renewed concern about the yen and Switzerland yesterday stepped up its fight to curb an “overvalued” franc. … While the actions aren’t as directly coordinated, the push is one of the broadest since the Fed, ECB and four other central banks cut interest rates together in October 2008 to limit fallout from Lehman Brothers Holdings Inc.‘s collapse. – Bloomberg

Dominant Social Theme:
The experts at the world’s central banks are on the job.

Free-Market Analysis:
This Bloomberg article is just another in a long line of disappointing mainstream financial reports that does nothing to address the real issues causing the crisis and, in fact, does everything to try to misinform the public into believing that the “experts” have all under control.

Well, we do not think more jaw-jaw is what people want to hear right now, or that the money magicians are capable of doing anything to stop the rapid erosion of public confidence. And based on the recent upward move in Honest Money, it is quite obvious the markets don’t want to hear it either.

Regardless of what Bloomberg wants people to believe, the world’s central banks are NOT independent banks led by teams of “experts” dedicated to establishing prudent national monetary policy. No, they are nothing of the sort and never were intended to be. They are simply a cartel-like crime syndicate that operates under the direction of the Swiss-based “super central bank,” the Bank for International Settlements. And the BIS is just one more tool in the arsenal of elite monetary control of the world.

The BIS sits like a great spider at the heart of the corrupt and ruinous central banking mechanism that the Anglo-American elite has successfully foisted upon the world. It coordinates the policies of these ruinous entities – not to any great effect – but to ensure that the Anglosphere maintains control of what it has built.

The Western elite’s banking scheme is a central part of how the Anglosphere has managed to dominate the world behind the scenes. Through central banking and the BIS, the Anglo elites have a stranglehold over economies worldwide. Even though most of the world was aligned against a presumed to be corrupt BIS after World War II, it somehow managed to escape dissolution. This is because it is a prime asset of the City of London, that mysterious one-square mile patch of real estate at the heart of London where the Bank of England itself is located.

However, today all of the elite’s poisonous machinations face an unprecedented decline in public confidence. And nowhere is the threat of total collapse more intense than on that most important elite edifice of all – the central banking system itself.

It is only the confidence of the public that enables the continuous printing of unrestrained fiat currencies – which combine to provide the base of an international Ponzi scheme. But something’s happening around the world that the money masters didn’t plan on. People are waking up.

But you wouldn’t know it by reading articles like this one, excerpted above. No, Bloomberg, a mainstream media outlet to be sure, would rather you believe that there are sweaty-browed experts working around the clock to fix the situation. So what magic tools do they have? What are the experts doing about this financial mess? Here’s more from the article:

Finance ministers and central bankers from the G-7 nations, which include the U.S., U.K. and Germany, said in a statement Aug. 7 that they will “take all necessary measures to support financial stability and growth in a spirit of close cooperation and confidence.” …

The next day, the Frankfurt-based ECB, which last week restarted its bond-purchase program after an 18-week hiatus, extended its focus to include debt of Italy and Spain, the region’s third- and fourth-largest economies.

The Fed’s decision Aug. 9 to hold its key interest rate at a record low through mid-2013 and signal it’s ready to use additional tools comes as U.S. politicians are tightening the nation’s fiscal belt and the economic stimulus enacted by President Barack Obama in 2009 comes to an end.

Bank of England Governor Mervyn King told reporters in London yesterday that headwinds buffeting the nation’s economy are intensifying “by the day” and officials can expand stimulus if the outlook for growth deteriorates further.

Bank of Japan Governor Masaaki Shirakawa said Aug. 9 that volatile exchange rates could have a “negative impact” on the economy, after the central bank last week added 10 trillion yen ($130 billion) of stimulus and the country unilaterally intervened in the currency market to weaken the yen.

Switzerland’s central bank said yesterday it will increase the supply of francs to fight the currency’s “massive overvaluation.”

That’s it? The central banksters have decided to do MORE OF THE SAME. They’re all going to work to make sure they “print-in sync” as much new money as “necessary” so that none of them face total collapse and threaten to take down the entire game? That’s the plan? And they will directly intervene in the market to create the illusion of demand/strength by buying the garbage debt from countries like Spain and Italy? This is the plan? Isn’t that called market manipulation?

Wow. Well, here’s a better plan. Stop the insanity! You cannot fix a dysfunctional monetary system that is built on a fraudulent premise by simply increasing the degree of the crime. The impossibly wealthy families who desire one-world governance will stop at nothing – including the use of force – to complete their centuries-long mission. But arrogantly, they will refuse to cease their devious efforts and instead will try to use these crises to bind the masses into accepting a fear-based international monetary solution. Out of chaos… order.

In fact, just the other day one of China’s faceless mouthpieces, the Xinhua News Agency, came out in an editorial to the world and stated, “International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country.”

And then there is this statement from Fed Chair Ben Bernanke, “Policy makers must respond forcefully, creatively and decisively … crises that are international in scope require an international response.”

Can’t you just see the smile on Christine Lagarde’s face as she gleefully embraces her new position as Head of the International Monetary Fund? For surely there is an IMF logo engraved on the international boot readying itself to slam down on the faces of current and future generations. But hold on a minute… will the puppets/experts running the world’s central banks – and Money Power standing behind them – be able to pull off this global manipulation?

We’re not so sure they will. And we certainly don’t wish them luck.

All across the world, the modern Internet Reformation is beginning to reshape the way people relate to power in the modern age. While it is not as obvious as during the era of the Gutenberg Press, there is formal doctrine accepted by Western societies that is beginning to shatter. That formal doctrine may be termed regulatory democracy and it has been leavened with numerous assumptions that on closer inspection turn out not to be true. Like what money is and what it is not. And it is the Internet itself that allows for information to spread that undermines the various precepts of regulatory democracy.

It is this hierarchy that promulgates regulatory democracy and its various dominant social themes – the fear-based promotions that the Western power elite uses to control the conversation and to further centralize power and authority worldwide.

And one of those fear-based promotions that the masses have been bombarded with is the “expert” theme. The public is constantly being promoted into accepting a passive position with respect to how the financial world operates. They are meant to be overwhelmed with facts and complicated economic formulas so they feel helpless, confused and generally incapable of mastering their own financial destinies. After all, how could anyone understand such a complex subject as money?

Well, all around the world people are starting to understand that the system is rigged and money really isn’t complicated at all. The Internet Reformation reveals the cartel’s synchronized efforts to manipulate public confidence so they can continue their fraudulent and manipulative wealth redistribution game.

Conclusion:
The reality of the situation is this: there are no magic monetary tools that can fix the global monetary crises hidden in the basement of the Federal Reserve, the Bank of England, or any of the others. The fiat money instruments themselves – dollars, euros, yen, etc. – ARE THE PROBLEM.

And in this alternative media-led ‘Net era, the old men hiding behind the central banking curtains are starting to look rather pathetic. The illusion is fading and people are waking up. In fact, the European Union is failing, various serial wars of conquest are not going well, and the fear-based memes of the elite are continually being debunked by an Internet that adds more to humankind’s real knowledge base every day. It will take decades if not centuries to control the damage that has already been done (from an elite standpoint), and what has been done cannot be undone.

Will the international power elite lose their destructive ability to create money out of nothing and their control over legislative power that currently prohibits private money competition? Will the elite be forced to take a step back in the face of a massive public awakening? Or will an Orwellian-style society be forcibly foisted upon us all with the UN, IMF, World Bank, BIS, NATO, WHO, ICC and all the other edifices of world government eventually control every aspect of our lives? Only time will tell, but the Internet Reformation gives one great hope that the “best laid plans will be laid to rest.”

Central scam artists downgraded: Greenspan – Bernanke – Federal Reserve

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GoldSilver.com
Posted August 8, 2011

It seems Alan Greenspan, the Ex-Chairman of the US Federal Reserve and mentor of his protege in crime, current Fed Chairman, Ben Bernanke, should get their fables straight before they appear on television.  Check out how brazenly dangerous Alan Greenspan conducted himself this past Sunday morning on NBC’s Meet The Press:

 The United States can pay any debt it has because we can always print money…
Alan GreenspanAugust 7, 2011


Wait a second, perhaps Alan should check with Ben on their story because according to Ben’s interview late last year on CBS’ 60 Minutes, the US is not printing money and the monetary base is not expanding all that much:

One myth that is out there is that what we are doing is printing money. We are not printing money… The money supply is not changing in any significant way. –Ben Bernanke, December 5, 2010


It looks like Alan and Ben need to get on the same page when it comes to money printing and what is officially happening to the monetary base of the US dollar:

Finally there is the instant classic of Ben Bernanke’s recent denial of historical facts, common sense, and basic economic laws. Check out Ben’s ridiculous retort when asked by Ron Paul on July 13, 2011 as to whether or not gold is money:


Central bankers and the lies they tell are the antithesis of gold. When they blurt moronic statements in large public forums like the aforementioned examples, gold, the true money of mankind tends to explode to the upside. The central scam artists can say whatever they want.  The fact is that the dollar, euro, yen, franc, pound, peso etc. are and will continue to bow to true free market monies, gold and silver.

For this reason we continue to convert our paper debt based cash and fiat currencies into physical gold and silver bullion long-term. With central bankers like these, it is making the inevitable wealth exchange happen at breath taking speed with a real possibility of the move going parabolic. Are you ready?

Too stupid for words – If this doesn’t convince you hyperinflation is upon us, nothing will!

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by Andy Hoffman (Ranting Andy)
Posted August 8th, 2011

LAST NIGHT I CAME ACROSS AN ARTICLE DEPIECTING SUCH A LEVEL OF STUPIDITY, MORAL HAZARD, and chutzpah, that I had to reread it several times to make sure it wasn’t satire.  I figured there is no way such “luminaries” in the eyes of the doting public could possibly give such moronic, and destructive soundbytes, particularly during the most significant sovereign threat the U.S. has faced since Pearl Harbor.  But they DID anyway, and weren’t even challenged by the press.

I initially sent a brief email stating my loss of words, but as any of my readers know, that condition rarely lasts long, particularly when pertaining to an opportunity to castigate two of the people I hate most on EARTH, Alan Greenspan and Warren Buffett.  I had also gone essentially a whole day of sleep, but now that I’m refreshed the creative juices are again flowing. No need to list the Hall of Shame accomplishments of these clowns, particularly Greenspan who, unlike Buffett never earned a dime in the “legitimate business world” (sorry, I had to steal that phrase from Dr. Phillip Bombay in “Back to School”, my all-time favorite comedy).

Given the ongoing, and now accelerating, COLLAPSE of the U.S. financial system, sometimes one really needs to EMPHASIZE how far down the rabbit hole we have gone to realize that the odds of escape are no better than a ray of light in a black hole.

This weekend, amongst perhaps the most intense GLOBAL episode of “Sunday Night Special” ever, in an attempt to assuage investor fears, the puppet media trotted out their two biggest shills, Greenspan and Buffett, to give worldwide investors their sage advice.  But rather than to even hedge their comments, they straight out stated ‘all is well, nothing to see here.

Greenspan, in my mind THE NUMBER ONE PERSON RESPONSIBLE FOR THIS MESS, whom in his retirement years has been subtlely hinting that he remembers his roots as advocate of REAL MONEY (i.e. gold), decided to do a 180 and return to the Greenspan of old, fearless of “irrational exuberance” and ever-willing to implement the “Greenspan put” with a few strokes of his money-printing keyboard.

In response to a Meet the Press question regarding the validity of S&P’s decision to downgrade U.S. Treasury debt, he vociferously defended his former employers by stating  “The United States can pay any debt because we can always print money to do that. So there is zero probability of default.”  Yes readers, he actually said that, in front of a GLOBAL audience, fully believing this would be a comfort to bondholders, creditors, and rating agencies alike.

Even better, everyone’s favorite government sell-out and insider trading expert, Warren Buffet, had the gall to not only attack S&P, but add that a new rating of AAAA should be instituted so the U.S. could be UPGRADED!

Readers, we are entering a VERY, VERY DANGEROUS TIME, unprecedented in human history.  The largest, most destructive fiat Ponzi scheme of all time is on the verge of certain collapse, and frankly at the pace things are going such a cataclysm could occur at any moment. Bill H., also of GATA fame, penned a great missive this morning comparing the time frames of a mania versus a panic, driving home the conclusion about how fast things can plummet when CONFIDENCE is lost and FEAR takes over, as opposed to the slow-motion inflation of a GREED-based bubble.  That loss of confidence is picking up steam as we speak, and comments like this are the type that could potentially start an avalanche at any time.

Yes, Greenspan is an old, senile coot, but he has had more influence over world monetary policy than any man in history.  And more importantly, we now have the past TWO Fed Chairmen, Greenspan and Bernanke, who have cumulatively destroyed the dollar for 24 of the 40 years it has reigned as “reserve currency”, giving similar statements about ‘helicopter drops’ in terms of the arsenal available to them. With protests and in some cases riots going on all over the world in response to rising inflationary pressures (Egypt, Libya, Tunisia, Algeria, Bahrain, Greece, and now more civilized nations such as Israel and the UK), such massively hyperinflationary statements from the reserve currency’s LEADERS can only bode for potentially horrific near-term outcomes, in my view.

Sorry for the light humor about Back to School, as frankly this is no time for humor of any kind.  At the GATA conference, Jim Rickards spoke about the psychology of complex systems such as financial markets, noting that every system has its own threshold of pain, and that at any time we could witness the “straw that breaks the market’s back.”  Once the hyperinflationary genie is out of the bottle (and it’s pushing FULL FORCE at the cork right now), the 1971-2011 worldwide status quo will be GONE FOREVER, replaced by a MUCH SCARIER reality, the type that has inspired insidious fictions such as 1984, V for Vendetta, and Atlas Shrugged, as well as more diabolical realities such as Stalinist Russia, Fascist Italy, and Nazi Germany.

Holding any material portion of your “wealth” in DOLLARS, POUNDS, or EUROS appears SUICIDAL, particularly if held in insolvent BANKS in the U.S., UK, or Europe.  All one needs to do is look at the chart of Bank of America, THE LARGEST AMERICAN BANK, (http://www.ffiec.gov/nicpubweb/nicweb/top50form.aspx), which has been bailed out perhaps a half dozen times (on its own and via Merrill Lynch and Countrywide Credit), to realize that NO AMOUNT OF PAPER, ACCOUNTING CHICANERY, OR PPT SUPPORT, will ultimately be able to save the system.

NOW IS OFFICIALLY NOT SOON ENOUGH to PROTECT YOURSELF from the tsunami which is about to wipe out the Western financial system once and for all.  The receding of the waters is long past, and now the wave is within spitting distance of the shore