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nice article viewing the current crisis in a more geopolitical vantage point:
http://www.marketoracle.co.uk/Article14364.html
Yes, we are at a crossroad, historically, politically, and economically.
This cannot last forever.
Anyone wonder why China is showing off her military might lately? They learn their historical lesson well, indeed. No more freeloading, deadbeats!
Get and hold your physical gold. Its price might go to the moon.
http://www.marketoracle.co.uk/Article14364.html
The confluence of record debt levels in the West as savings in the East reached record levels has altered our world in a way not yet understood: UK and US control over global credit is ending and it was this control over credit that was responsible for their extraordinary geopolitical influence.
That Russia and China, both former communist powers, support the return of gold and silver whereas the US and UK, both capitalist powers, do not is understandable. This is because the power of capitalism lies in its substitution of credit for gold and silver, a monetary slight-of-hand which England and the US leveraged for financial gain and world dominion—over Russia and China.
The ability to print money in a world where everyone is for sale is an immense advantage
The capital of capitalism is, in actuality, a smoke and mirrors shell game wherein credit and debt are substituted for money; and, as long as the game of capitalism expands no one is the wiser because the fraud is so subtle. Capitalism, however, is no longer expanding. It is contracting.
The ability to print money in a world where everyone is for sale is an immense advantage
The capital of capitalism is, in actuality, a smoke and mirrors shell game wherein credit and debt are substituted for money; and, as long as the game of capitalism expands no one is the wiser because the fraud is so subtle. Capitalism, however, is no longer expanding. It is contracting.
The symmetry of history is as wonderful to behold as it is surprising to those who do not understand it. In the 1800s, England “woke” China by forcing China to accept British opium under the guise of free trade; but it was actually China’s refusal to accept England’s paper money that caused England to invade China.
Today, just as then, the intent of the West is to leverage its paper money in order to maintain its advantage in paper-based capital markets; but, today, circumstances are far different. Today, China is awake.
Today, just as then, the intent of the West is to leverage its paper money in order to maintain its advantage in paper-based capital markets; but, today, circumstances are far different. Today, China is awake.
Burdened by increasingly onerous amounts of defaulting debt as their credit-based economies contract and collapse, they are now reduced to printing more and more money desperately hoping to outrun the compounding debt they themselves created.
In this struggle, too, central bankers are losing control. Only by selling more and more of their gold have they been able to slow gold’s rise. Today, literally, they are scrapping the bottom of the barrel as they are running out of deliverable gold.
Toronto analyst Rob Kirby’s recounting of the behind-the-scenes activity that recently drove up the price of gold is but one example of this on-going battle. On the last day in September, Kirby reported large buyers of gold entered the futures market and demanded immediate physical delivery on the September contract.
The counterparties, allegedly JP Morgan Chase and Deutsche Bank, both complicit in the central bank suppression of gold, counter offered with premiums 25% above spot if the contracts could be settled with paper money instead of physical gold but the buyers refused, sending gold to record highs as the banks scrambled to deliver gold they did not own.
Questions were also raised about the quality of the gold bars delivered.
Evidently, the bars provided by the Bank of England had to be re-cast as to meet the .999 quality necessary for delivery; and Professor Antal Fekete in his current article, The Gold Basis Is Dead—Long Live The Gold Basis, adds more to the controversy surrounding deliverable gold.
Deflation is a monetary black hole that once in motion can’t be escaped
To support the declining value of their paper currencies, central bankers in the West and Japan are struggling to control the price of gold, the one indicator that mirrors the declining value of paper money.In this struggle, too, central bankers are losing control. Only by selling more and more of their gold have they been able to slow gold’s rise. Today, literally, they are scrapping the bottom of the barrel as they are running out of deliverable gold.
Toronto analyst Rob Kirby’s recounting of the behind-the-scenes activity that recently drove up the price of gold is but one example of this on-going battle. On the last day in September, Kirby reported large buyers of gold entered the futures market and demanded immediate physical delivery on the September contract.
The counterparties, allegedly JP Morgan Chase and Deutsche Bank, both complicit in the central bank suppression of gold, counter offered with premiums 25% above spot if the contracts could be settled with paper money instead of physical gold but the buyers refused, sending gold to record highs as the banks scrambled to deliver gold they did not own.
Questions were also raised about the quality of the gold bars delivered.
Evidently, the bars provided by the Bank of England had to be re-cast as to meet the .999 quality necessary for delivery; and Professor Antal Fekete in his current article, The Gold Basis Is Dead—Long Live The Gold Basis, adds more to the controversy surrounding deliverable gold.
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