Crisis Overload

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It has been two weeks since my last post, and to be honest, I am not quite sure, which of the many topics, that are concerning me, (and perhaps you), that I should devote my attention to.

Since I last wrote, the Crimea has indeed seceded from Ukraine, just as I suspected it would, and Kaiser Putin, has signed a treaty granting citizenship to the Russian speakers of that particular peninsula. And the Tartars, and Ukrainian nationals who resided there – but NOT the Ukrainian military members, who were stripped of their munitions, and sent packing back to the motherland. Was all that to ensure the Russian Black Sea port of Sevastopol remained in Russian hands?

Those other former CIS satellite nations with large ethnic Russian populations will no doubt be preparing themselves for similar secession requests, and perhaps even more military turmoil that has beset that particular part of the world.

The financial commentators, watching over the financial health of the economy in China, have in some ways been almost apoplectic as China’s GDP growth, fell to a mere 6.5% p.a. against the Political class’ expectations and demand for 7.5% (Oh, that Europe, Britain and America should suffer such a poor growth rate) and the expectation there is that this may cause a financial calamity as some large financial institutions succumb to the stresses and strains of a planned economy.

In Europe news arrives of a rash of Bankers committing suicide – King World News interviewed Gerald Celente, who discussed a Wall Street Journal story, about a Mr Brokesmith a senior executive of Deutsche Bank who was found hanging in his home, with several suicide notes being found – but their contents kept secret by the media – who it is believed are colluding with senior bankers to keep these stories under wraps. And over forty such deaths have been noted, though largely unreported in mainstream media, but as the Financial Regulators finally do their jobs and scrutinize the actions of these Banks some are obviously running scared.

Celente, who founded Trends Research, is also seriously concerned at the amount of unrest arising around the world as interest rates start to rise, and the Bankers extract their pound of flesh severely constricting economies as money disappears from the economies of the West and has created a new organisation he refers to as the “Occupy Peace” movement.

Last year, the largest Banks of the U.S. – the big six – JPMorgan Chase, Goldman-Sachs, Citigroup, Wells Fargo, Morgan Stanley and Bank of America, earned collectively $76 billion, just shy of the peak attained in the last boom year of 2006, just before the market seized up, and the world monetary system almost ground to a halt. Just before Bear Sterns, Lehman Bros, Fannie Mae (FNMA – Federal National Mortgage Association), Freddie Mac (FHLMC – Federal Home Loan Mortgage Corporation) Royal Bank of Scotland, Lloyds TSB, Northern Rock and all the other smaller banks disappeared or were bailed out,  in the frenzy that followed.

The Banks we must remind ourselves have paid $100 billion in legal settlements since the start of this crisis some 5 years + ago, and we must ask ourselves WHY senior banking figures have not been prosecuted. Despite rising evidence of market manipulations of several market sectors – LIBOR, Gold, Silver, and other commodities forcing several funds into negative situations for the last few years.

And in America class action law suits have been filed against these market manipulators, who lest we forget, are allegedly doing this at the behest of the Federal Reserve. As these law suits come to court, perhaps we will hear more from the mainstream media, or perhaps we won’t, until it is too late .

Some commentators are already suggesting a market peak is close and a full-blown market pull-back is eerily close. Gold and Silver have reacted to those who want to keep those two precious metals from showing their true value against a currency that is being inflated by Senior Banks.

Portuguese citizens are calling on their Government to renege on their international debts and to use that money to support the citizenry in Education, Health and other social systems.

I suppose they see Iceland, who put some of their Bankers on trial, and avoided many of the problems besetting the west by avoiding the requirement to meet the interest rate returns demanded by the bankers, as the model they should follow. Incidentally, I heard recently that Iceland has created a crypto-currency, and is distributing it to all Icelandic citizens free of charge so that people can become knowledgeable, and use these new currencies uncontrolled as they are by Banking Institutions – The wave of the future?

And one of RT’s flagship financial news programmes – Keiser Report – hosted by Stacy Herbert and Max Keiser, commented on how the Bank of England’s Governor – Mark Carney,  who is the former governor of the Bank of Canada and a senior executive of Goldman Sachs let slip that it is not the Central Bank that creates new money, but the Senior Banks themselves who do so. Every time a citizen arrives at a senior bank to borrow some money – say for a mortgage – or to buy a company, that money gets created as a credit on the borrower’s account and a debit on the Bank’s account. The Bank gets an asset, and the debtor gets a liability. Thus a debt becomes both an asset and a liability – each taking their role in the scheme of things.

That money that then gets paid to the seller of the property, and deposited elsewhere in another Bank. As a result, the deposited funds are loaned out into other uses – People, borrow it for cars, and furniture, caravans and holidays and those car showrooms and furniture stores deposit it in their banks, who lend it out to… (You get the idea) Thus this initial borrowed money grows both the debt and the economy. This is the multiplier effect, and all currency in existence is a leverage on debt.

However, every debt has to be repaid with interest. And the more debt, the more interest is taken from the general population to go to fund the lifestyles of senior bankers and to pay off this debt. And eventually this will destroy the economy, and the population. At no time in history has this ever – EVER – ended otherwise.

The only antidote to this, is for all people to save their wealth, not in Bank-notes sitting on a Bank’s ledger (that don’t in reality exist) but in hold in your hands physical metal – GOLD and Silver. Most people fail to realise, that as depositors in a Bank, they are all unsecured creditors, and even in some cases the Insured element of their deposits is at risk in the event of a full economic collapse as might be coming your way.

The Chinese and the Russians, the South Africans, Turks, Iranians, Vietnamese, Indians, Indonesians and many others recognise this, and when the inevitable happens, the dollar’s role as world reserve currency will cease.  But temporarily, the Chinese want a strong dollar, because at the moment the Chinese hold $4trillion in currency reserves, most of which is denoted in either dollars, or dollar bonds. So the Chinese are effectively hedging their finances with enough gold so that when this happens, they will not lose the value that their success has earned them.

Some time ago, I predicted that Gold would ultimately rise to around the $8,500/oz level.  In the Jim Rickards audio below, he mentions $9,000 Gold. Are we both so far from the truth? And if so, what of Silver‘s ultimate high? It is not outside the bounds of possibility this will reach the dizzying heights of $500 as Gold and Silver return to their historic ratios of around 16:1. Though given how little Silver is being mined, this could get as close as 10:1, which is in line with the ratio coming out of the ground.

And with it, much of the unrest that is promulgated behind the scenes by shady political characters for their own ends by people who don’t have to pay for things with REAL money, will cease. Recent reports have also emerged that Turkey, perhaps aided by some of those same forces, was planning to raise a “False Flag” event in an attempt to give them reason to enter Syria, to assist in the overthrow of President Assad, who has steadfastly refused to stand down in spite of provocation, and much western criticism of his policies, particularly as has been mentioned previously of the agreement to allow a pipeline from Iranian controlled gas fields to the Mediterranean, through his country, and Lebanese controlled territory.

Perhaps a few words should be borrowed from John Lennon, Paul McCartney, George and Ringo all those years ago when we faced similar circumstances: – “All we are saying, is give peace a chance” – Save Gold and Silver.


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