Central Banks.

The End of Capitalism? – Fascism 2.0?

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To many, Capitalism, is what makes the world go round. But many others don’t really know what that is.

Population growth - From Jesus Christ until 2050. Where will all the food come from to feed these extra mouths?

So what is Capitalism?

Capitalism the word, derives from the word Capital – and Capital is…. “Savings”.

Of course savings, are generally stored in Banks, and that “capital” should generate interest. Of course interest is what the Banks give to the owners of Capital, and traditionally, the Bankers loaned out that capital to business people who would use that injected capital to increase profits, and those increased profits, would pay back the loan, and add value so that the expenditure of the capital is justified.

If we have a population explosion, such as happened after the second world war – the baby-boomers – we have a situation where fast approaching retirement the ‘boomers’ are now saving like crazy in their pension accounts, insurance or assurance policies, bank accounts and stock market brokerage accounts. Of course those who retire inevitably need income from their savings (some of which went into buy-to-let property which led to the boom, between 2002-2007) And yet interest rates have been lowered to zero per-cent or close to it, in Europe, the UK. and the U.S.

So as these savers are looking for yield from their savings, this has driven down Bond yields (A bond is a loan, to a country – such as aTreasury Bill, or Gilt – or a corporation, which generates interest to the holder.).And we know that to produce that interest, we need to generate growth – in the economy, and in the corporation.

BUT, all that growth relies on energy, and despite recent price falls in oil and gas, longer term, much of what happens in the sphere of energy is reliant on oil and gas production, which because of something economists are famiIiar with – EROI – Energy Return, On Energy Invested – we know that we are close to or past the Peak, and the energy cost of producing more energy, will lead ultimately to a collapse in the economy.

But few in the mainstream media, or among our politicians are willing to discuss this or how we might resolve this issue. Fracking is the U.S’s attempts, but as energy prices have fallen, the financial cost of Fracking is now placing undue strain on oil and energy suppliers, and upto 100,000 workers have been laid off in the U.S., and numerous oil companies are either in, or facing bankruptcy.

In the UK, the government has given corporations the power to search for oil and gas under homes, without the normal permissions processes, that the local community normally have, through the licensing process, and through local council control and planning laws.

This therefore begs the question, what should we be told, and if we should what we need to do about it.

This video over an hour long explains how we have been duped.

Video:

At almost two and a half hours long this video below gives a full picture of how those in power, are still duping us.

Video:

As these videos suggest, the rise of the corporation and its influence of the political process, suggests we are well on the way to neo-fascism along the lines of Hitler’s Germany. And the energy revolution I spoke of in a previous post can’t come soon enough.

And Michael Ruppert who you saw in the first film, was a man on the inside, who having been threatened and shot at by CIA operatives, left the police force to investigate how the world really works. Here he discusses his findings, shortly before his untimely death at his own hand.

Video:

According to one recent Reuters article, China has now decided to update the world with its Gold holdings on a monthly basis, and has informed us, that they have added another 19 tonnes to their holdings. Not a huge figure given what we have learned of imports and production in recent years, but perhaps it is an attempt to ratchet up pressure on those pesky western bankers in the IMF that have refused entry to the SDR currency basket?

Time you made some changes in your life?

Time to get some Gold? Or Silver? Or Crypto-currency?

W.

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WHY has the Gold price NOT Risen exponentially – YET?

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BoE

Central Bank Manipulations?

The reason Gold has not exploded yet, is because Gold as a physical asset, is undervalued in the West (in general), and highly valued in the East for historical reasons. (Partly as a result of Western Central Banks, having too much power, and thus ensuring regulation gets passed to limit Gold’s usefulness as a store of wealth and partly, because the Chinese had their education in paper currency back in the 11th Century, and others in the Far-East had their education more recently, with the currency crises of the late 1990s.)

As Gold heads east, it is in the interests of those who wish to accumulate it, to play devil’s advocate and allow the manipulations to continue. As I stated in my last post, both Russia and China, are unimpressed that when they sell goods on International Markets, they receive a depreciating currency, that can be conjured up out of thin-air [or to be more accurate – digits on a computer] by its manipulators…

When the Tide goes out (to borrow a phrase used by Warren Buffet) i.e. When Gold becomes part of the process for settling International Trade again, then we will see who is wearing no shorts – (i.e. a fast-reversal back to Bretton-Woods) i.e. which countries, are spending more than they earn – Internationally speaking – and who is managing their economy well, by exchanging physical goods, for physical goods (in the form of physical Gold, or a gold backed currency which can be exchanged for Gold)

China’s approach is therefore like an aeroplane coming into land, and on the approach path to forcing the world’s trading nations to stop using currency inflation to buy up scarce natural resources, and Gold will at that time achieve its real value.

That time will happen when the first country breaks ranks, and demands Gold for its goods, and has enough Gold to withstand a draw of its currency for International Trade, and the only country that comes even close to that is China (and perhaps Russia) and therefore when China finally – officially – releases its Gold holdings – which Pravda in a recent article suggested was 30,000 tonnes, (because they have re-smelted their Gold, and re-cast it into 1Kg bars) then the value of Gold will achieve the exponential rise we have all been expecting.

By end 2015, China, has to float its currency, (WTO regulations) so perhaps is hedging its bets, by holding huge Gold reserves to act as a floor under the value of their currency. Reference – http://english.pravda.ru/news/business/21-05-2015/130683-china-0/

That to me makes perfect sense. It will also mean those countries of Africa, South America and other developing nations, who sell raw materials, will experience rapid rises in living standards, and many will end up paying their political masters huge sums, unless the corruption that has been endemic in some of those countries, suddenly vanishes. (Just as happened during the 1970s which may in itself cause other problems as it did, during the decade and the one following.)

Of course, the poor westerner, will experience rapid price inflation for all their most important needs. And those countries who use the American Dollar as their currency system, would be well advised to consider a replacement.

Food, and raw materials, such as oil, gas, copper, tin, lead, zinc, and precious metals, too will all be more highly valued.

Those with good stores of these commodities, will flourish, those who depend on government largesse for their income, will not fare so well.

And paying for things internationally, will require some form of internationally accepted money – one I have been reading quite a bit about in recent weeks is BitGold.

This manages to marry the best of both crypto-currencies, and precious metals.

To widen your reading and viewing material, you might like to visit these channels on You-tube, and search terms and web-sites.

Recommended YouTube Channels:
SGTReport,
TheDailyCoin,
SilverDoctors,
ChrisMartensondotcom,
USAWatchDog,
X22Report,
AMTV,
TruthNeverTold,
SchiffReport,
BrotherJohnF,
Ron Gibson – WhatReallyHappened 2015 (Mike Rivero),
Gregory Mannarino,
FinanceandLiberty,
HyperReport,
Mike Maloney – GoldSilver.com – WealthCycles,
GoldSeek,
RT BoomBust,
RT KeiserReport,
NextNewsNetwork,
Cambridge House,
TrendsJournal.

YouTube Search Key Words:
Dollar Collapse,
Dr. Paul Craig Roberts,
Alasdair Macleod,
James Turk,
Chris Powell,
Jim Murphy (GATA),
G. Edward Griffin,
Peter Schiff,
Marc Faber,
Jim Grant,
Jim Rogers,
Rob Kirby,
Jim Sinclair,
David Morgan,
John Williams, (or Shadowstats.com)
Catherine Austin Fitts,
Bill Holter,
Ellen Brown,
Nomi Prins,
Andrew Hoffman,
Ron Paul,
Axel Merk,
John Rubino,
Mike Maloney,
Jim Willie,
HiddenSecretsOfMoney.

HIGHLY RECOMMEND:
ZEROHEDGE.COM

W.

We’re all slaves now…

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Over the previous weekend, I bought a DVD, of a film, I’d been hoping to watch for some time. I would have gone to the cinema, but my wife prefers Rom-Coms, to historical dramas, and my friends all live disparate lives, so I had to watch it home alone.

It featured that giant of the acting world – Daniel Day-Lewis, in a role he was nominated, and won an Oscar for, having been directed by Steven Spielberg – Lincoln.

The film tells the story of Lincoln’s finals months, as he negotiated with the Confederates who were on the point of being beaten in the Civil War, and also with his own Congress to add the 13th amendment to the constitution. Sally Field played his wife, and her part conveyed the pain that she and Lincoln had to endure as their sons enlisted, or were killed, and as his wife blamed him for their loss.

The 13th amendment effectively brought an end to slavery, and set forth the proposition, that all men were created equal in the eyes of the law, and thus the ownership of another human was contrary to God’s Laws.

The final debates took part in January, and after some political back-slapping and chicanery; The vote, took place, if the film was at all accurate, on 31st January 1865 – almost exactly 150 years ago. The Civil War ended barely three months later and the peace treaty was signed in April of that year.

I mention this, because as a resident and citizen of the U.K, like so many U.S. citizens, the politicians have so indebted us, as to effectively make us all debt slaves to the banksters.

When a Central Bank creates money out of thin-air, to buy up assets, the Bank owners effectively are able to buy assets on the cheap, that they can either sell later at inflated prices, or use to earn income from as a “Rentier”. Bonds being the case in point.

The term “rentier” derived from the French term just prior to the French Revolution, when the various kings, but especially King Louis XVI granted privileges to certain nobility and others who were similarly closely connected to the money power. These privileges granted (for example) the right to collect a toll on a bridge, river crossing or road.

The right to be the monopoly supplier and thus to extract monopoly profits from the citizenry, who became increasingly disenfranchised, dissolute and the poorer while the idle rich were kept in the lifestyles to which they felt obligated.

However, these changes over time, slowly strangled the economy to the point where free trade was stifled. To paraphrase Mrs Thatcher who once intoned something akin to – “They know the price of everything, and the value of nothing.”

These changes ultimately led up to the Revolution, and the former wife of the king – Marie Antoinette issuing her now infamous phrase. When she asked the king why the people were revolting – his reply was “they have no bread” (or words to that affect) to which her reply has become the stuff of legend: “Well let them eat cake.”, though historians suggest this was just “journalistic cliché”

Although these events were important, it wasn’t the real source of the revolution – that was probably because of the financial situation. John Law, a Scot, had introduced in the early 18th century a financial system that inflated land and property prices, disenfranchising those without property, though the economy was also not healthy due to poor harvests, rising food prices, and an inadequate transportation system (due to those privileges mentioned) that made transporting of goods costly and therefore food even more expensive.

The sequence of events leading to the revolution involved the national government’s virtual bankruptcy due to its poor taxation system and the mounting debts caused by numerous large wars between the British and the French.

However, the Americans too once were being bled dry by over taxing authorities in the form of taxes from King George III, and this led ultimately to the Boston Tea Party, where British Cargo Ships were boarded in the dark of the night, and their cargoes of tea bound for England were thrown overboard into Boston Harbour. Thus began the American Revolution.

Which leads me to today.

In the world of offshore asset protection and personal finance, you nearly always come across the claim that there are only two countries that actively tax their residents’ worldwide income: the United States and Eritrea. All other countries only tax income earned at home, though the UK is making steps in that direction.

But, that rule is apparently no longer true.

It turns out that in the early 1990s, Chinese tax officials went on a series of fact-finding missions around the world. One team enjoyed what The New York Times describes as a “long visit” with the IRS, and came away with “a two-volume bound copy of the U.S. tax code and a five-volume copy of I.R.S. regulations.”

After reviewing the materials, the Chinese government decided to write a tax code that would allow them to tax their residents’ worldwide income … the only problem is, they had no idea how to enforce it. And then FATCA came along. Now China knows how to achieve the same.

And given the recent spending on saving American, and other nation’s Banks, the Federal Reserve, have now indebted the people of America and the customers of Europe’s bailed out Banks, to the tune of more than $30 trillion.

With just 325 million Americans, and according to recent evidence, only 63% of the population actively engaged in the workforce, paying that debt has only two possible outcomes – little possibility, and no possibility.

Roughly, 180 million taxpayers, will need to pay almost $95,000.00 each, plus interest (whenever interest rates begin to rise) to pay down this debt, and that’s before any further spending by the successors to Obama’s legacy, or of the unfunded liabilities in medicare, medicaid, pensions or social care.

This indebtedness, is the basis of modern slavery. The UK debt per household is not quite as bad, but is bad enough. the last time I calculated it, it was a mere £76,000 per household of four, but when you break it down to taxpayers, it goes way up.

So you can be forgiven for trying to protect yourself. In the years that follow, I expect governments on both sides of the Atlantic to come after retirees pension pots. We hear so much of how political parties have learned their lessons in regards to spending, but people have short memories, and the parties have too often broken promises, then asked for forgiveness afterwards.

But, one of the ways that you can protect yourself, is with precious metals.

I know, you’ve probably heard this too many times over the last 15 years… You’re probably thinking – “What makes you think precious metals are the answer? “, or “Yeah, right!”.

In the last 15 years, Central Banks have again begun buying Gold, after 30+ years of sales, and falling interest rates, many have asked for their Gold back – Venezuela, Holland, Austria, Germany, or asked to audit their holdings – like Australia.

China has been buying up Gold like there is no tomorrow. India, has historically been the world’s largest buyer, but this has now been overtaken by China’s insatiable lust. And China has been covertly buying from its wholly owned miners, as well as using its huge dollar reserves to buy on the open market, as the Gold price has fallen from its high of 2011.

In fact Jim Rickards has mentioned that he believes that the intention is to protect its huge dollar reserves as the expected dollar collapse occurs, and they’re buying using the dollars they’ve earned selling to the U.S., and loaned the U.S. buying up the Treasury Bonds that have been issued over the last 8+ years but it appears they are now, along with Russia, net sellers of Bonds, and as Jeff Opdyke, Investment Director of Sovereign Society has regularly posted, when China announces its official holdings to the world – all hell will break loose. (though that was done last year in 2015, and to little fanfare)

Because now, they’re increasingly worried about the value of those dollar bonds, and as so many attest, the Chinese are masters of the long game.

It is even possible that China, through the BRICS Development Bank, which Britain recently joined, is seeking to back its currency (at least partially) with Gold, giving it the status that the U.S. has hitherto had.

As inflation begins to pick up in the years ahead, the urge to buy gold, to protect large dollar holdings, will gain traction, and all assets that rise in value with inflation will be chosen as the protection of last resort. But any asset that is the liability of someone else, that may fall to zero, will be sold. And what happens to any asset when everyone wants to sell at the same time?

As interest rates rise, loans will get more expensive, Bond values will fall, and loans will get called in.

Asset values, secured against loans, such as mortgages on property, will fall in value, just as they did in 2008, and that will mean we are back where we were in the “Lehman moment”. Except now, the debt load worldwide, has risen to such a size, that there is no-one big enough to bail out the Central Banks of the world.

Then governments will do what they have always done – seize their citizen’s wealth. (Chancellor Denis Healey famously remarked, he would ” Tax the Rich, until the pips squeaked.” in 1974)

Banks that fail, will seize their depositors money – Cyprus times ten – and Deposit Insurance will not be enough to save the Bank or its Depositors – too Big to fail.

Only precious metals held in the hands, or in secure vaults as custodian assets in safe political environments, with a history of ensuring the sanctity of custody and ownership – not deposit boxes, which governments have now legislated are Bank’s assets, will be safe.

Overseas held precious metals miners too, will mean an opportunity to increase your wealth as the coming collapse unfolds.

One junior miner with assets in at least four countries in Africa, with 18% of a Diamond mine in South-Africa, a 75% ownership of a Nickel mine and smelter in Zimbabwe, a similar ownership of a Gold mine and refinery in the same country, Diamond assets in Angola, and a growing asset base in Democratic Republic of Congo, with a huge gold-copper find there.

To-date, this 9 kilometre rift has only had 3 kilometres explored, and already 2.9 million ounces have been defined as a resource. This miner has a P/E of just 4 (meaning the company earned a quarter of its share value in one year)

Anyone, who has studied markets for any length of time, knows that on average a healthy PE ratio of about 15 is considered normal. Values in excess of 20 are considered expensive, and values below 10, are considered cheap. So a value of 4, means that if the value of the company increases 3 fold, it would still be cheap. I’ll leave you to draw your own conclusions…

And this mysterious company is? ASA Resources on two exchanges – London (AIM: ASA.L) and was  targetted for a hostile takeover, when its board were removed, and its name changed from Mwana Africa (MWA.L).

Of course, this is not a recommendation to purchase, but perhaps an instigation to do your own research…

And if silver is more your thing… One company I have followed for several years which to be honest has only just managed to survive the onslaught of the falling silver prices from the highs of 2011 down to the current silver price of around $16 might be worth your investment research. For many silver miners, the current silver price is below operating costs, but this miner, which was a producer for several years using a toll-mill agreement (i.e. Leasing someone else’s mill and smelter) has managed to survive after divesting itself of some assets, after a failed financing agreement had to be called in and payments went unmade.

There are many, who feel that the silver price, that has fallen so low, will equal the price of gold, as Silver’s industrial uses rise, silver has a wide range of applications. It is found in jewelry, electronics, batteries, mirrors, solar energy, and water purification, just to name a few (10,000 and rising) and the amount of available silver falls. Seventy five years ago, as U.S. president FDR, confiscated that nation’s silver (and Gold), the above ground stocks of precious metals had a 5:1 ratio in favour of silver. In 2013, that ratio had totally reversed, and there was now a 5:1 ratio in favour of gold. Furthermore, there are those who think we may run out of available mine-able silver – TOTALLY – by the mid 2020’s.

Silver is used in small amounts, so small, that recycling would be so costly as to make it almost impossible to achieve economically. And we currently use circa 680 million ounces each year. Though demand in recent years has risen so far, and so fast, with U.S. Silver Dollar Eagle sales rising to previously unheard of levels, that the current price of silver, which is widely believed to be manipulated to protect the dollar hegemony is likely to rise spectacularly, when the price can no longer be held down.

There are a number of reasons why silver may begin its meteoric rise this year. It has already risen from the low $14.00 range to $17, and most of that came in short bursts in February, and April.

India is the single largest consumer of bullion in the world. As the silver price went down globally, consumption went through the roof in India. India’s first quarter 2013 silver demand was up to $1.78 billion — a 311% increase from the previous year. In the first eight months of 2013, silver imports in India reached 4,000 tons, more than doubling imports during the entirety of 2012.

There were two driving forces behind this trend. First, India placed extremely tight restrictions on gold imports. As a result, sentiment in precious metals shifted towards silver. The second factor here is inflation. With the Indian Rupee inflating a staggering 9.3%, it’s no wonder the nation was buying as much silver as they can get their hands on. The peak silver import hit 5,819 tons in 2013, which was the all-time highest it had ever been.

Industrial applications for silver make up nearly half of global silver consumption, and a rebound in global manufacturing is going to drive up demand. The JP Morgan Global Manufacturing PMI has indicated growth for 19 months straight, while factories in the U.S., UK, and Asia reported increases in activity.

In 2013, there were two devastating landslides at Rio Tinto’s (NYSE: RIO) Bingham Canyon mine in Utah, one right after the other. Over 165 million tons of rock went down to the mine floor, suspending production indefinitely.

This event was, without exaggeration, a catastrophe. It was called the biggest non-volcanic landslide in the history of the United States, and is considered the first landslide to have triggered earthquakes (instead of the other way around, which is common). Fortunately, no one was injured by the slide.

The Bingham County mine is the second largest silver mine in the U.S. and accounts for a staggering 16% of national silver production. So we’re talking about four million ounces of silver per year that have essentially vanished — a strong catalyst for a rise in prices

Silver hit its peak value in 2010, going from $16.94 per ounce all the way up to $49. Since then, the price has come down, but demand hasn’t – it has only grown.

In the first quarter of 2013, silver ETFs purchased 20 million ounces of silver.  And in June of 2013, the world’s largest silver fund added a record of 572 tons to its inventory — more than all of its 2012 purchases combined.

This is incredibly important, because it shows us where smart money is going in the market.

And the company I was telling you about has a property in Zacatecas in Northern Mexico, a historical silver mining district. Four rounds of drilling have identified 50 million ounces in the proven category, and 80 million ounces in the probable category, The company is Arian Silver (AIM: AGQ.L)  with  113.69 million shares in issue, at 1.25 pence, when the silver price rises to $100.00+ I have been expecting, this company will rise with it.

 

However, I have also learned of another Copper, Gold and Silver miner, with huge reserves, and the cash to develop it, though some political interference from the government has squashed some of the enthusiasm, and taken some of the shine off it in Mongolia, which does not have a history of stable political institutions and a threat to improve the 30% government holding by an incoming President, brought the share price down thundering from its highs of $27, to its currentlevel. Turquoise Hill Resources though (TRQ.TSX) has huge resources, and is off the radar for many investors at the moment. A fresh rise in metals prices will bring this miner back into focus, and with such huge reserves, and a major corporation in Rio-Tinto, and with the share price at £1.91(C$3.52) as at 26/4/16 these are set to rise

TRQ - Moonshot in the making?
Production figures show rising production at a time of rising prices…

Inevitably we can not know when the Gold and Silver prices will rise to that extent, but it is my sincere view, that we are about 3-5 years away from the steepest rises, but that we may see smaller rises over the period between now and then.

You pays your money, and takes your choice.

Russian Roulette – Is the west about to shoot itself in the head, heart and the foot – just to make sure?

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The west shoots itself in the head, heart AND foot.
Shooting themselves in the foot, head, heart…That should do it.
One year on, as the Federal Reserve celebrates another birthday, both Gold and Silver were beaten down in the London aftermarket close, while trading was at its lowest. And the Russian Rouble was similarly attacked by those behind the curtain.

As the Russian Rouble recovers some of its losses of the last week, in the last few days, I have been re-visiting some of my reading matter, of the last few weeks.

Ever since Russia annexed Crimea, ostensibly to give citizenship to ethnic Russians, but many feel it was to save its only warm water port, “The West”, has been ratcheting up the tension and the rhetoric on Russia.

The NATO block has interfered in Ukraine, too many times. The American led organisation the IMF, has been interfering, with its money, and the West has provided IMF led financial support to the Ukrainian Government and military, and rumours abound, that the IMF and its minions have taken Ukraine’s Gold – some 40 tons apparently – as a surety. (Rumoured to be the source of Holland’s recently returned 127 tons of Gold).

According to Bloomberg today, Ukraine has sold more of its Gold holdings, reducing its holdings from 26.1 tons, to 23.6 tons (2.5 tons) and Russia has bought more rising from 1,168.7 tons to 1,187.5 tons (18.8 tons).

But Russia is not the one in trouble – the Fed and the U.S. is. Russia’s Debt to GDP ratio is roughly 11 percent. What is the Debt to GDP ratio in the United States? According to the IMF it’s 112 percent. What is the Debt to GDP ratio in Japan? It’s a staggering 230 percent. And Russia is sitting on a lot of reserves of very valuable natural resources.

So Russia is not going to fold because of some pressure coming from the United States or NATO. And the real tragedy of all this is the collapse of the rouble is really hurting the Russian people. This is being done by the West as a method of financial warfare. The latest sanctions against Crimea are just hurting the people of Crimea.

According to Dr. Paul Craig Roberts, Russia could unleash possibly one or more “Black Swan” events. For those not familiar with the term, it is a reference to the fact that most swans are White, but occasionally, one is born Black, but is so infrequent as to be impossible to predict, and here is the scary part.

Both Russia and China now don’t believe in the cold war rhetoric of Mutually Assured Destruction – or MAD as it was known.

Now both appear to be willing to make a “First Strike”.

He also recently said about the Gold and silver markets…

“The downward manipulation of the prices of precious metals prevents the “crisis warning transmission system” from properly functioning. More important, the decline in the price of gold/silver vs. the U.S. dollar conveys the illusion that the dollar is strong at a time when, in fact, the dollar should be under pressure from the over-issuance of dollars and dollar-denominated debt.

What we have been experiencing since the 2008 crisis is not only the subordination of US economic policy to the needs of banks “too big to fail,” but also the subordination of law and the financial regulatory agencies to the interests of a few private banks. The manipulation of the bullion markets is illegal whether done by private parties or on public authority, and so we have the spectacle of the US government supporting a handful of banks via illegal means. Not only has economic accountability been set aside, but also legal accountability.”

What people also don’t know, is that the Russians are ready to shelter the majority of their population in major cities in the event of a nuclear war. By contrast, the United States only has facilities for the elite and key personnel in the form of roughly 234 underground bases. These bases are referred to by the military and the elite as Deep Underground Military Bases (or DUMB).

And reports are surfacing from U.S. food processors about huge orders of food by U.S. government agencies to be delivered to these underground bases. The key is the government has requested immediate shipment of this food so that it can be stockpiled. While this stockpiling, has been going on, reports have also surfaced from store managers from all over the country, that a large selection and quantity of food is disappearing from grocery store shelves in states where these underground bases are located such as Kentucky, West Virginia, Kansas, Pennsylvania, etc.

Also, in 2008, the U.S. government ordered 600 million rounds of soft-nosed hollow-point ammunition – 2 rounds for every person in America to be delivered over 6 years.

These are the type of preparations that would be taken if it appeared that civil unrest, world war, or a possible nuclear exchange was on the horizon.

Meanwhile, the Chinese are buying factories, farms, mines, fresh water resources, etc. Other Far Eastern and Middle Eastern sovereign wealth funds are also accumulating these key resources. The Chinese and the Russians understand that at the end of the day it’s all about natural resources and being able to deliver these natural resources to a market that has the money or gold to pay for these key commodities.

A cyber attack on the West’s Banks could close down the banking system for days or weeks. What would that do to the West’s economies? Just think Sony, only ten or a hundred times worse…

If Russia was attacked or provoked more seriously, they could respond by dumping U.S. Treasuries and Dollars, or by asking for delivery on gold futures contracts forcing a default at the COMEX, and/or LBMA.

Or they could just ring up all the leaders in Europe, and tell them, they won’t sell any more Gas/Oil except in roubles, or sell any to NATO members. Germany, France, Italy, and even the U.K., would cave in a heart-beat.

People used to think that those who were preparing for disaster – “Preppers” – were crazy. Now we see the United States government ordering survival kits for employees of every major bank as well as key personnel at the Office of the Comptroller of the Currency.

On this side of the pond, Europe teeters on the brink of a financial disaster. And if Russia simply stated it would not repay loans it has taken from European and U.S. banks (at least not yet) then it might force a rerun of 2008 which would seem like it was a nice day at the shops by comparison.

The European Parliament, as UKIP’s Nigel Farage is so fond of saying, has become a talking shop, a mouthpiece with no teeth. It also hasn’t had its accounts signed off for several years, making monitoring its politicians all but impossible. It has been called a gravy train.

Finally, I ran across two great quotes from the past. They are food for thought.

“The Roman Republic fell, not because of the ambition of Caesar or Augustus, but because it had already long ceased to be in any real sense a republic at all. When the sturdy Roman phlebeian, who lived by his own labor, who voted without reward according to his own convictions, and who with his fellows formed in war the terrible Roman legion, had been changed into an idle creature who craved nothing in life save the gratification of a thirst for vapid excitement, who was fed by the state, and directly or indirectly sold his vote to the highest bidder, then the end of the republic was at hand, and nothing could save it. The laws were the same as they had been, but the people behind the laws had changed, and so the laws counted for nothing.”

– President Theodore Roosevelt

“It is high time for me to put an end to your sitting in this place, which you have dishonored by your contempt of all virtue, and defiled by your practice of every vice; ye are a factious crew, and enemies to all good government; ye are a pack of mercenary wretches, and would like Esau sell your country for a mess of pottage, and like Judas betray your God for a few pieces of money.

Is there a single virtue now remaining amongst you? Is there one vice you do not possess? Ye have no more religion than my horse; gold is your God; which of you have not barter’d your conscience for bribes? Is there a man amongst you that has the least care for the good of the Commonwealth?

Ye sordid prostitutes have you not defil’d this sacred place, and turn’d the Lord’s temple into a den of thieves, by your immoral principles and wicked practices? Ye are grown intolerably odious to the whole nation; you were deputed here by the people to get grievances redress’d, are yourselves gone! So! Take away that shining bauble there, and lock up the doors.

In the name of God, go!”

– Oliver Cromwell – To the Long Parliament – 20 April 1653.

And tonight Sky News got into the fray, when it ran a programme called “The Doom Boom”, suggesting that those who are preparing for the forthcoming crash are somewhat crazy, or slightly unstable, yet the evidence above would suggest, that they may be just doing the only sane thing they can.

We wish all those who have read this over the last year, a Happy Christmas and Festive Season, and a safe and prosperous New Year.

Global Government – Portent of the Future?

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I’ve been giving quite some thought to events in the political, and financial sphere and Gold and other precious metals markets of late, and trying to figure out what the true goals of the global elite are really upto.

Gold for centuries has been the backing for currencies, and the last time we had a global economic and military crisis, in the period from 1914 to 1946, Gold was eventually taken out of the hands of the American population at the princely sum of $25.00 an ounce by Presidential decree, in executive order 6102 in 1933 – just before it was revalued to $35.00.

Some semblance of order was gained when the Bretton Woods agreement was ratified after 1945. The dollar would be backed by Gold, and exchangeable for Gold and the other world currencies would be fixed to the dollar.

This stood the test of time, until the 1960s when the world’s major economies began growing at different paces, and a war in Vietnam, forced the U.S. to spend more on munitions and men trying to hold back the tide of communism than its economy could comfortably afford.

This led countries such as Spain, France and Britain to exchange some of their foreign U.S. currency reserves for Gold in the Fed’s vaults. The final straw was when Britain told its U.S. ambassador to exchange $3billion for Gold, on 11th August 1971.

Just 4 days later, Richard Milhous Nixon – President, made a direct announcement to the people of America on television, that he was “temporarily” suspending the right to exchange dollars for gold.

The ‘Gold Window’, as it was called has remained firmly shut ever since. The reason? Because they were running out of gold. And we know from our history that – “He who owns the gold, makes the rules.” and the last full audit of the Fed, was conducted… in 1954.

At the time, Gold could be exchanged for $35.00 per troy ounce (ozt) by countries only. Over the ten years after 1971, the Gold price would rise spectacularly as people worried about inflation, which rose to 26.9% in Britain, and 25%+ in America, in 1974, as the world oil price rose, in large part to events in the middle-east, but also the number of dollars being emitted to pay for the oil – until Henry Kissinger had a cunning plan.

So, given the recent events in the middle-east, and the number of dollars that have recently been printed, apparently $4 trillion and counting. Then of course there is the Bank of Japan’s recent pronouncement that it would double down on Quantitative Easing (QE) with its own printing presses, and of course not forgetting the decision to: “Do whatever it takes” by European Central Banker in Chief – Mario Draghi, and of course our own ex Goldman-Sachs executive – Mark Carney – Chief Cashier of the Bank of England has cut the government some slack with its own printing presses, so that the government could spend money it didn’t have, on things we don’t necessarily need.

And the reason they didn’t have the money is because governments, especially socialist government’s have a tendency to bribe the electorate with their own money by making promises, that the tax-payer can’t afford. And then the Bank loans them the currency and expects to be paid back with interest – What is their escape plan?

Eventually, those who pay, end up as wage slaves. As Mr Churchill so famously quoted: “The trouble with Socialism, is, eventually they run out of other people’s money.”

Because, of course, when the nation is paying interest on loans from years ago it has less to spend for the here and now – and in Britain we recently paid off our War Bonds – from 1914… So you can see how long that can have an affect. Central Bankers have a tendency to enslave the population by encouraging governments to spend more than they have, in the full knowledge that they will earn interest for years, possibly decades to come. And there’s nothing like a good war for Banking business.

In business, the owners will frequently look at investments through the eyes of a “Cost-Benefit” analysis, so that they can check – before they spend – whether the investment will reap financial rewards and exceed the investment.

But many governments want to invest in socially desirable investments, where it is difficult – if not impossible – to measure the costs and benefits. Of course politicians want their cut – in the form of salaries too.

Bankers also have a tendency towards centralisation – first on a national level, but increasingly on an International level. In Europe, politicians have still not had accounts signed off for several years, as they give money to their own pet projects.

So to come to the meat of this piece.

Gold has been driven down in the last 3 years since it peaked at circa $1980 in late 2011. So, with Central Banks in Venezuela, Germany, Holland, and now France either requesting their gold back from the Fed, or recommending it to the government, either by politically minded individuals, or opposition leaders; what is the end game? I believe it is simply a “One world government” with the Bankers pulling the strings from behind the curtain.

The Swiss Gold Referendum

Switzerland’s referendum vote on Central Bank Gold, on the Sunday, 30th November, didn’t go as hoped, after the Central Bank began a campaign of fear, and Citibank released a report a couple of days ahead of time, which to be honest, smacked of fear and desperation – On the banker’s part…

http://goldsilverworlds.com/physical-market/the-swiss-referendum-on-gold-whats-missing-from-the-debate/

Despite this, the Gold price held up quite well, after an initial dip.

http://www.mineweb.com/mineweb/content/en/mineweb-independent-viewpoint?oid=241985&sn=Detail

Central Banks’ Love-Hate relationship with gold and Silver.

http://www.mineweb.com/mineweb/content/en/mineweb-editors?oid=261075&sn=Detail

So, why do the Banks have a love-hate relationship with Gold? The Central Banks know that money is power… And remember – “Gold is money – All else is merely credit.” – so said, John Pierpoint Morgan, of J.P. Morgan-Chase Bank fame, and if you have been following this blog for a while now, you will know from my many posts, that ultimately we are owned by bankers, and the main protagonist of these bankers is the Federal Reserve. So their objective appears to be to get Gold out of the hands of the people, because that allows the person freedom, and liberty to do as they see fit – as long as they do no harm, nor cause any loss to others. And if you read anything from Ted Butler, you’ll know he thinks the same. Since the beginning of U.S. independence, the constitution has been chipped away at, leaving it a shadow of its original intent. The constitution says that only Gold or Silver can legally be money, yet by sleight of hand, the Bankers have removed every last vestage of real money from the American People, and when they control the money, they are the rulers.

I’ll leave you this video clip which demonstrates this, and is perhaps instructive of where the world is going.

So, if we return to the main reason for this blog, it is to encourage the reader to become an independent thinking human being, responsible for your own actions and have the freedom, and liberty that you were born with, but your parents gave up so shortly thereafter. But you can take some of it back…

Remember:

“He who owns the gold, makes the rules.” Of course, you can buy Gold with silver, or crypto-currency (or some of the paper that they print for you to use.) And at the moment Silver is on sale. As I was writing this, the price of Gold is $1198.10. Silver is at $16.41. So, Silver is therefore 1/73rd as cheap as Gold, though throughout most of recorded history, it was a lot more expensive – it was about 1/15th or 1/16th the price of gold, and sometime in the future, it will be circa 1/10th.

So if you buy 73 ounces of silver at the moment, for the same money you could buy 1 ounce of Gold. But if you wait a while, and silver rises to the price I expect, then your 73 ounces of silver will likely buy between 3-8 ounces of Gold and one day, I expect to be able to buy a house, for circa 30-40 ounces of Gold.

So, are you going to get some now?

You can start your savings: HERE!

And you can get started with crypto-currencies HERE!

So, what is the ultimate goal that I spoke of at the start of this piece?

I believe that the Bankers are using arbitrage – buying something cheap in one place, to sell it elsewhere where it is more expensive (more highly valued) to send Gold and Silver overseas, as the flow of wealth heads East, these Bankers (I believe) intend to establish themselves where the next world hegemon will likely be, in China, just as these Bankers left the shores of England and Europe to go to America when they realised that England was becoming a spent force.

http://kingworldnews.com/chinas-plan-dominate-world-crush-united-states/

And who will be pulling the strings? – That’s right – He who owns the Gold.

You can read more about how these Bankers came to rule the world: Here!

If you like this piece, then please post it to your favourite blog, like it or tweet it.

The Politics of Different economic models – Do they matter?

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Old-Bailey-ScalesOfJusticeI’ve been giving some thought to, Monopolies and Oligopolies and Geo-Politics recently.

Many economists will tell you that both Monopolies and Oligopolies are detrimental to the economy. Monopolies generally are not allowed to exist – and where they do exist, they are generally in state control. Mostly in countries with one-party or no-party apparatus, whether that be Fascist, or communist and for many reasons, these two regimes allow or enable them, and share one common thread.

Both state types seek to compel people to do or not do, things that are, or are not in their own best interests – depending on the “thing” we are referring to.

Communists disallow ownership, and vest almost everything in the state, while the Fascist country vests the wealth of the country in the hands of one or a few “wise men” who own the bulk of the productive assets, and tax the rest of the society to pay for things that are generally considered in the nation’s good.

Oligopolies are a slightly different matter.

These have a tendency to become cartels, where these organisations secretly work to protect their own interests, while apparently working for the good of the customer and the nation, it is obviously not competitive, so are not in the consumer’s interest, but governments quite like these because it makes taking policy decisions easier to implement, when they can get the heads of these half-dozen or so corporations in one room – after taking their advice of course.

Here in the UK, we have an oligopoly in the energy market, and for this reason it’s heavily regulated, though if the energy regulator wasn’t trying to get them to improve their customer service, they might be focussed on the thing, that consumers worry about more – prices.

But there’s another oligopolistic industry, and monopolistic practice that is at the root of many other problems in Western Societies.

Banking oligopolies, and Monopolistic Central Banks.

The Central Bank determines the supply of the currency, and the governments allow this, in its own self-interest. The government can pay its bills with money it doesn’t have, which it otherwise would have to tax from its taxpayers, instead it borrows from the bankers, and then has to pay interest, which steals from the citizens, silently through the process of price inflation.

But what it takes with one hand, it gives with the other, in higher stock-market values, and rising asset prices – which benefits those wealthier citizens, who own stocks, properties and other financial assets. This makes those on limited incomes fall further back in the “getting on the ladder” rungs of success.

It happens through the agents of the Central Bank, the major clearing Banks, who form an effective oligopoly linked into this nefarious practice, (also as their owners – as in this case – of the Federal Reserve) while the population are enslaved by debt-slavery, because their taxes are used to pay the interest of the debts to these banks, who buy these Treasuries, using money they don’t really have, but who get it from their paymaster – the Central Bank.

Of course, for all this to work, people have to keep their wealth in cash form, or invested in things that can be manipulated for the ends of the Bankers. – homes, the stock-market, bank deposits etc,

Of course, they would deny this… but as Mrs Margaret Thatcher once opined: “They would say that, wouldn’t they?”

But, once people begin saving their wealth in forms that can’t be taxed, or that the authorities – the government, and the Bankers can’t manipulate, governments and politicians begin to worry.

For example: Crypto-currencies are things that Bankers fear, because they don’t control them, and aren’t taxable – at least not yet. If you have these great. If you haven’t, then perhaps you ought to check them out at Qoinpro. After all, if you can’t beat ’em, then join ’em. And numerous Bank employees and senior executives are now buying into these in increasing amounts – in particular – Bitcoin.

After all, for hundreds of years, the Bankers have controlled the printing presses that gave them immense power over the country and its institutions.

It was President Andrew Jackson of the United States who commented that:

“Banks of issue, are more dangerous than standing armies”

And Thomas Jefferson, who said:

“Paper is poverty. It is not money, it is the ghost of money.”

So what did they mean? As I’ve previously explained, paper currency is a receipt for money, while real money is both Gold and Silver.

So, why do they fear them?

If we look back into history, a Bank Note once said with authority – “I promise to pay the bearer on demand the sum of …”

The missing words originally were the sum involved – ‘in Gold’, or ‘in Silver’ depending on the country of origin, or as the twenty dollar bill from the early 1900s stated: “There has been deposited twenty dollars in gold at the Federal Reserve”

And this prevented the Central Bankers from printing too many of them, unless they had the gold in the vaults to back that up. It meant they could only lend out “savings”.

But what they do now, is lend out debt – because there is no savings, or nowhere near enough at any rate. And when that happens, we are borrowing from our children’s future – Which is fine for investments that add to our stock of goods, but what about those debts used for holidays or other consumption services? And what if they can’t be re-paid?

It also means the taxpayers of the future – our children, and their children, will have to pay off these debts through higher taxation, or face a lower standard of living through reduced government services, and experience greater control of their lives by a centralising government.

All industries tend to grow towards having a few large entrants, before newer entrants change things and shake up the industry just as Tesla has shaken up the motor industry in the U.S..

As a further example: TESCO, the UK’s largest of the big 4 grocery retailers, has suffered recently in this fall-out, suffering a 50% share-price decline, as new entrant Aldi has grown its profits by 65%.

And to get to the geo-political issues, as ISIS rears its head in the middle-east, and Ukraine hots up, and once more unrest in Libya is raising its ugly head again, and now I hear two nuclear nations are on the brink of a conflagration, as Islam butts up against alternative lifestyles and religions. Many of these wars could embroil the west, and that will mean the amount of money the west needs to spend to fund its military activities, could be the straw that breaks the camel’s back. As stock markets have reeled in recent days, perhaps the market collapse that many predicted is already upon us.

And apparently the Indian and Pakistani peoples are on the verge of yet another major war between these two nuclear powers. And this is over a resource that neither can afford to lose – water.

Of course with both governments in dispute over the region of Kashmir, in the mountains of the north, the two governments came to an agreement over the Indus river many years ago, which allowed for both nations to tap into this resource which flows through the region, and they have already fought four wars over the territory.

But, since the agreement, both nation’s populations have risen exponentially. India now has a population of 1.2BILLION, while Pakistan has 178million.  With senior figures in Pakistan now talking of Jihad, as India extracts more water, this is raising tensions, as Pakistan has only 30 days supply for the whole country.

The Indus river travels the whole length of Pakistan, from its source in Kashmir, to emerge near the Capital Karachi, on the west of the Indian subcontinent, and is responsible for 90% of Pakistan’s water needs. The river holds such a powerful drag on the nation’s minds, because it is used to generate electricity, and is responsible for 50% of Pakistan’s employment.

It could be used to trigger Pakistan’s “first use” policy, starting a nuclear war, given that many Pakistanis are affiliated to one of eight different radical Islamic organisations, who recently formed a joint committee of Jihad. Kashmir could well be that straw that breaks the world’s financial back, causing relations between allies to worsen, triggering a new world war.

Rising tensions and a nuclear war would be hugely detrimental to world economy and financial markets, as Pakistan and India fight over this precious liquid.

Prices of stock-markets would go into free-fall, as much as 40% almost overnight, and trigger losses on derivatives, which as some highly influential, and well-informed people now believe, is as much as 10 times the notional value of the world’s economy – or some 700 TRILLION American dollars.

If that happens, then the flight to safe haven assets will be huge, and if you don’t physically, own either Gold or Silver, your wealth could be totally eliminated. The world’s economy could be so badly damaged, that for a time supply chains break down, and Banking organisations suffer, like Bear Stearns and Lehman Brothers in 2008,  reducing many corporations to pennies on the dollar as their chickens come homes to roost.

As a result, Indian Gold price premiums were as high as $50+ in 2012, despite government attempts to stem Gold imports, as the population eschewed rupees for Gold and Silver. Silver, now at prices not seen since 2009/10, could rise over its previous peak of circa $50, and take out a new all-time high.

As Warren Buffet, who has run Berkshire Hathaway since its inception, and where one share currently costs over $200,000, has been repeatedly quoted as saying in relation to markets: “Be fearful when others are greedy, and greedy when others are fearful.”

Now is the time to be greedy where silver is concerned as the world uses approximately 200 million ounces more than it produces. Sometime soon, those who cannot run their businesses without silver, will find they will have to cease operations because there isn’t any available, and the price will have to rise, to enable supply to increase.

And in 2013, not only have the Chinese and Russian Central Banks been buying Gold – But RUSSIAN Banks too bought 181.4 Tons of Gold in 2013.  It was more than double that of Russia’s Central Bank additions in 2013.

The biggest buyers according to the Russian Finance Ministry include:
– Sberbank (48.5 tons),
– VTB (38.9 tons),
– Gazprombank (29.1 tons),
– Nomos Bank (19.6 tons),
– Lanta Bank (8.6 tons).

And if this has intrigued you, as to WHY? You can learn how these bankers over 2 centuries worked towards enslaving the people of Europe, Britain and America, in my book: “The Coming Battle – 2013” and you can learn how YOU can claim back your liberty.

W.

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Revenge on the Bankers (Part II)

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My day began on Friday with news that England & Scotland had renewed their Marriage vows, though not before David Cameron had blubbered like an errant husband, saying – “LOOK! I can change”, just so we wouldn’t have to have this discussion again, anytime soon.

And then later the post came, and the Book, safely packaged arriving in a bubble-wrap envelope. Great, I had been beginning to worry that it hadn’t been sent, or that somehow the post office had lost my address. But I needn’t have been concerned.

It’s the new Bill Bonner book “Hormegeddon”, and I hastily tore open the package, read the accompanying letter, and then settled down with a quickly made cuppa to digest Bill Bonner’s wit, erudition, and learning from over 40years as a trained economist. The pearls of wisdom if you like.

A synopsis of the opening chapter is not about to follow, but the basis of the book is that a little of something can be beneficial, but when you get a whole lot of it, it eventually ends badly. Like receiving a glass of water, or a whole ocean full… And Bill has applied this insight to social systems, politicians, and economics in his own inimitable style.

Some time ago now, I wrote about taking revenge on the Banksters, who having used fractional reserve banking, have increased their control of the economy, and the productive assets of a nation, by allowing them to create currency out of thin air, to give to those on the inside, which allows the Central Bankers and the owners of those printing presses, to buy assets at knock-down prices, in an economic bust, which they themselves have engineered.

By not having currency tied to any particular asset class, making the currency of every major economy, purely paper based and thus essentially valueless, they have got to the point where one suspects, the analogy in Hormegeddon is about to befall us.

If the value of money was tied to any commodity, and that commodity went up in price, the population as a whole would know instantly, that price inflation was taking place.

Of course, when you have a tie to any commodity it has to be agreed which commodity.

At various times throughout history, different commodities have been used.

In early history, people stored whatever they had an excess of. The arable farmer stored grain, that was in excess of his needs, and he traded some with the farmer who had Dairy cows, and other livestock.

The hunter stored furs, and traded some for grain when he found a farmer with excess grain.

Of course the problem for many of these commodities was that they were perishable, and so deteriorated in damp or poor conditions.

People realised that a more permanent medium was needed, so that excesses built up in the good years could be traded for things in the lean years.

This was the start of money. Money is really just savings converted into a form that is more useful.

No savings? No money. No problem.

Of course when some people learned about metals, and began making tools like swords, tips for arrows, belt buckles, stirrups for the better control of horses, and adornments. People began to realise the value of these metals as a store of wealth. And the most precious of those metals were silver and Gold.

These two metals were found in many places in tiny amounts, but also didn’t deteriorate. Gold mined in the 5th Century BC, will still resemble Gold mined last year. And Silver whilst it may have lost some of its shine, will still weigh almost exactly what it did a hundred, or thousand years ago.

Gold, of course, retains its lustre long after it is mined and refined, and even mixed with silver, copper and other metals still retains its size shape, weight and colour. This together with its shine, made it desirable, and thus when in the 6th Century BC, as populations were growing in what is now modern day Turkey, people used this strange metal – called “Electrum” – a mixture of these, in the earliest coins.

By the early middle ages, merchants who travelled in their business were prone to being accosted and their money robbed, which made the carrying of these precious metals dangerous. The Goldsmith realised that if he stored the merchant’s gold and gave the merchant a gold receipt, the merchant could transfer that gold to another by merely signing over some of that wealth, and thus the check was born, and the Gold receipt could be used to pay for things. Thus the Bank note was born.

Later the Goldsmiths began lending money and charging interest, and thus Banks were born. As the economy grew, so did the power of the Goldsmiths, now called Bankers, and as more and more people kept their wealth in the vaults of the Bank, the Bankers realised they could lend out more than they had in storage, and thus fractional reserve banking was born.

As the economy boomed during the 16th to 20th centuries as first the Spanish, the Portuguese, then later the Dutch, French and British began their pursuit of global empires, Banks provided capital for these explorers, and got their pound of flesh, whether the trip was a success or not, though the borrower frequently had to pledge their home, or other chattels.

Over the 250 years since Nathan Mayer Rothschild, sent his five sons to London, Paris, Frankfurt, Naples and Vienna to found the Rothschild empire, things have only gotten bigger.

These sons founded a Rothschild Bank in each of these cities, a truly international Banking system, that allowed the Rothschilds to benefit from local contacts, and to play each country off against the others, when they came to blows, as they had a tendency to do in old Europe.

President Lincoln, was a man who refused to do business with these Rothschilds, who demanded large interest rates to fund the civil war, and for his sins was shot when he began printing the nation’s currency.

Slowly over several generations, these Banker’s wealth and power over the economy grew, especially when they got together and formed Central Banks and colluded with other Central Banks – the largest of these – the ECB, PBoC, BoJ, Fed, and the Central Bank of Central Banks – the BIS (Bank of International Settlements) based as it is in Basel, Switzerland, home of the notoriously secretive Banking fraternity.

Since 1913, the Fed in particular, has exerted greater control over the world, as the printing presses of the United States were used to fund wars, and the military industrial complex. And the savings of the Chinese, Russians, Indians, Brazilians and other developing nations were used to prop up the dollar further extending this power.

Is this all coming to an End?

A slow start to controlling these Bankers in America was taken a few days ago, on 17th September, as a Bill was passed in the U.S. House of Representatives.

Congressman Paul Broun – U.S. Republican, promoted the Bill H.R. 24, the Federal Reserve Transparency Act (Audit the Fed), which passed in the U.S. House of Representatives with strong bipartisan support. H.R. 24 has over 220 co-sponsors and passed overwhelmingly by a 333-92 margin. Broun, released the following statement after the Bill passed…

“Today’s passage of the Audit the Fed bill brings us one step closer towards bringing much-needed transparency to our nation’s monetary policy. For the past 100 years, the Federal Reserve, a quasi-government agency, has acted under a veil of secrecy – controlling our monetary policy and thus, our economy…

While in recent years, the Fed has been granted a greater role in overseeing the regulation of our financial system, current law specifically prohibits audits of the Federal Reserve’s deliberations, decisions, or actions on monetary policy. This lack of accountability and transparency has led to grievous consequences – and it must end.”

In reality, the Fed is a private organisation with its only shareholders, the 6 or so Banking Families who sneaked out of New York in November 1910 to an (at the time) unknown location to create the organisation, that would strangle the U.S. economy several times over the next 100+ years.

Along the way, the Fed has relieved lots of people of their gold, and is alleged to be responsible for the deaths of various Presidents, and others who threatened their little racket.

We have all heard of the depression that occurred commencing in 1929. In order for the U.S. President to commit to the works that would help get the economy working again, he had to spend money he didn’t have, and the only people who could print or produce the money in America at the time was the FED.

However, the credit of the U.S. was not quite as good as it has been over the last 40+ years, and so the Fed forced the President to confiscate the gold and silver of the nation at a fixed price ($25.00/troy oz) and then re-value it when they had almost 7,000 tons to $35.00 an ounce, which with the other 13,000 tons of Gold they took from overrun Europeans, stood the test of time, until 1971, when Nixon ended the Bretton Woods agreement unilaterally.

So, to get to the meat of this piece, one day soon, this power of the Bankers will come to an end – probably VERY badly.

WHY? How? The Internet!

The Internet has changed dozens of industries in the 40years since DARPA (Defence Advanced Research Projects Agency) funded the first basic research into computer communications.

Amazon, Google, Apple, Microsoft, HP, Dell, E-bay, Netflix, MySpace, Facebook, Alibaba et-al. The Internet and these Tech giants have revolutionised whole industries, and the business models that worked before the Internet, have had to be revised, now that potential customers, can meet with potential suppliers electronically. This process is given the grand title of “disintermediation” and it is worrying the Bankers.

Crowd-funding is replacing the traditional role of Banks providing start-up capital; Electronic Stock-brokers are allowing people to trade the markets from home, or wherever their smart-phone happens to be; Digital Money and electronic payments systems initially made Bankers’ life simple, they didn’t even need the printing presses so much, but now with Crypto-currencies, people can trade value without even using their banks – all through the power of the Internet.

The most widely known of these new fangled currencies is Bitcoin, but there are around 80 of these currencies, and their value and power are growing with every passing day. And you can receive FREE Crypto-currencies daily, including Bitcoin from Qoinpro.

Bitcoin is currently valued at over $400, and its two smaller siblings – Litecoin and Feathercoin (which you also receive from Qoinpro) are like Silver and Copper to Bitcoin’s Gold or Britain’s Pounds, shillings and Pence.

Gold and Silver too are not being forgotten in this new world, as organisations are now trading Bitcoins for Silver and Gold making the banking industry all but superfluous in its historical sense. Only the Bullion Vault holders, are doing well, and who are increasingly based in the Far-East as several new vaults have opened there, and just 18months after their opening, they’re almost full to capacity.

As both of these precious metals fall to interim lows, those on the inside of the precious metals markets, are saying that now, as the economy is supposedly on the mend, is exactly the right time to be accumulating.

Many miners too are haemorrhaging as the metal price falls due to paper derivatives being used to manipulate the metal price, but many can’t continue to operate at these levels.

Only the industrial metals miners are keeping supplies coming. Because their precious metals are a by-product of their operation, the price is almost irrelevant to them, as whatever they get is in addition to their industrial mineral operations, but most of the majors who produce the bulk of the metals will either have to cease trading, or close down operations or both.

This is ultimately leading to a supply crunch – particularly in silver.

Silver is both a precious metal and an industrial metal, and demand is soaring.

Every Chinese, Korean and Japanese made i-Phone, Samsung Galaxy, Notepad, Tablet, PC, Nokia, LG, Sony, Toshiba, Canon camera, Nikon, Lumix, Panasonic, MAZDA, Toyota, or British made Ford, Jaguar, Land Rover, or German made BMW, Mini, Mercedes, Audi, or VW… In fact almost every vehicle in the world which is increasingly carrying increasing amounts of electrical and electronic equipment uses silver.

Imagine – China produces 9 million vehicles per year, Britain at its peak produces almost 2million vehicles, and then there’s America, Brazil, France, Italy, Australia, and India as well as all the other smaller nations who build vehicles including Russia and the former Soviet States.

Silver is used in them all. And with digital payments using crypto, how long can the Banks hold out before the system implodes again?

One way to get these Crypto currencies is Qoinpro, who are giving them away free, and will become a coin exchange in the fullness of time charging a small transaction fee as people use their crypto-currencies.

And as for precious metals. China holds just 1% of its $4trillion worth of reserves in Gold. Many believe they will need to have upto 40% of their reserves in Gold. At just 10% that equals $400,000,000,000 worth of Gold at current prices ($1250.00/oz) which would be the equivalent of 320 million troy ounces, or 9,953.11 metric tonnes.

As a result, I believe China will not stop buying Gold until it has around 10,000 metric tonnes.

In 2009, when they last announced their Gold holdings in April, they had just over 1,000 metric tonnes.

Given that they have been buying in increasing amounts and in 2013, that was circa 2,000 metric tonnes, the price longer term is likely to go a lot higher, once their ambitions become more widely known.

And silver which historically has been 1/16th the price of Gold, will likely return to its historical norm.

But perhaps even more, as silver comes out of the ground at just 9:1 it is not outside the bounds of possibility that silver will reach this dizzy height.