Resource Wars

Things are getting messy – Bankers and Politicians unite.

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Since my last post, the middle-east has got a little more messy. Russian military are now helping the Assad regime (Read: – the Syrian Government) to fight the numerous factions now trying to overthrow Basher Al-Assad – some supported by the U.S.

The U.S. media machine has come out in full force against this support by Putin’s military, as can be seen in this video.

But, with the “accident” of 1st November, when the Russian aircraft fell from Egyptian skies, maybe a new chapter in this messy situation has begun.

There are those who believe the inevitable result of the investigation will be that the plane was brought down by an organisation hostile to Russia’s involvement in the middle-east and Syria’s government.

Now, of the actors in the middle-east – Iran, Saudi-Arabia, the U.S., Islamic State (ISIL/IS), Al-Nusra, Al-Qaeda, and the other militants such as the Free Syrian Army (FSA), who would gain most?

A spokesperson for the Egyptians has already dismissed the notion of an Islamic group based in Egypt being involved, but given that the democratically elected Egyptian Islamic President was removed from office, by military forces, is that outside the bounds of possibility?

If we know anything about the Banking Cabal, we know that politicians, need money to pay for wars for political ends, and Bankers don’t really care why they need it, as long as there’s a profit in it, and we increasingly have currencies that can be just “magicked up” out of thin air, making political intervention, that much easier and that much more profitable for the Bankers.

There are those who feel the end result of all this meddling, will inevitably lead to WWIII, and some even, that it has already started – as can be seen in the you-tube videos above and below. (published in May and October 2015) And even that a third world war, has been pre-ordained ever since 1871, when Albert Pike allegedly wrote a letter to Mazzini, dated August 15, 1871, in which he outlined his thoughts.

(though claims it was in the British Museum have not been verified – see the comments on this page: http://www.infiniteunknown.net/2012/02/17/albert-pike-predicted-three-world-wars-in-1871/ )

But the result of all this political meddling, is seen in increasingly larger distortions in financial markets, and resource wars can lead to hot wars, and hyper-inflation, which if you remember your history, was the fuel that Hitler needed to begin his military build up in the 1930s.

Mike Maloney who has monitored the financial system in the U.S. since the early 2000s, published a recent video to show how these political decisions are only making things worse as a result of FED manipulations as evidenced here.

We have to assume therefore, that this is either naiveté, ignorance, ineptitude, OR we must assume, that these decisions are for their own political agenda. Any other assumption is outside the bounds of possibility.

And America’s involvement in the middle-east, has been less than successful – if you judge success by nations working together to solve problems, but what IS the problem?
Answer: Resources.. and control of them. In other words. Oil! (and Gas.)

Which suggests that the world is quickly teetering towards the financial reset that would eliminate the bankers and this debt and release the Central Banks to raise rates without causing a global downturn of 1930 proportions.

But the rising stars in the world’s economy, also want a bigger say in affairs – see this: http://www.nytimes.com/2014/02/05/opinion/the-imf-needs-a-reset.html?_r=2

On a different, but related note, Bix Weir suggests that the recent Glencore price fall is due largely to these financial manipulations and here you can hear his thoughts on what might happen as a result.

And as is mentioned in the video, one of the people accused of financial crime, was finally pardoned by Bill Clinton, just before he left office, and who went on to found Glencore.

Lastly, Bloomberg on 3rd Nov, 2015, released by Julie Hyman, said lower U.S. factory order numbers were down 1%, slightly worse than expectations of 0.9% which would suggest, that all this additional debt being produced around the world is still unable to stifle the larger demographic trend I have often spoke about leading to lower global demand.

And that is just one of the reasons you need to buy silver, gold and crypto-currencies. If you want other reasons, here’s, Alasdair Macleod to explain why…

W.

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Digital Currency – The Last Refuge of a Banking Scoundrel?

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In the news over the weekend, we heard the story that Andrew Haldane, the chief economist and executive director for monetary analysis and statistics at the UK’s Bank of England, has tried to run up the flagpole, the prospect of a digital only currency. America too is discussing this.

Now, why would a Banker do this?

What is a Bank? Primarily it stores savings (Capital) for its customers, and loans out this money (well we’ll call it money for now) to businesses and others to finance the development of new products and services, which add value, assist in growth, employ people, and spread prosperity throughout the nation (or currency union).

However, when a country has excess savings, these are liabilities on the bank’s books, and has been touched on several times throughout the time of this blog, these have to be paid back. However, there may be times when there are fewer good opportunities to loan money out for the banks, with huge amounts of money sitting in savings and today is one such time.

The driving force behind this excess savings is demographics. Demographics is the study of populations. The studies look at birth, and death rates, gender etc, and at how those births and deaths impact the society, and the economy. Where we build schools, hospitals, and even infrastructure like industrial parks.

After the second world war, all those returning service personnel got busy making babies. It happened in America and the Pacific region in ’47, it happened in Europe in ’46, as those two major conflagrations came to an end.

Twenty years later in the sixties, those babies, now young adults drove the swinging sixties, and Carnaby Street, the music and fashion scene as they all began doing what young people do. The children of those people reached maturity 20 years later, in the 80s and early 90s, driving Punk music, New-wave and the New Romantics, the “Acid house” scene, and the Brit-pop and Indie scenes of the 90s. This was the shadow boom as you might call it. These children of the baby-boomers are driving the economy now, as they reach their 40s, and lead consumption spending, but soon this too will slow.

Of course the baby-boomers as they are known, those born after WWII, are now frantically saving for their retirements, buying buy-to-let properties, and investing in their pension funds and therein lies the rub. All that capital going into savings has led to several booms; in Technology, in Housing, and since the 2009 credit crunch, the stock-markets in general. But since early 2012, the baby-boomers have been retiring in droves at the rate of circa 8-10,000 people per day, in the U.S. alone, and because of the low interest rates, and the drive to “save the economy” the Central Banks have loaned the people, and their representatives (governments) huge amounts of money.

America has an $18 Trillion public debt. Britain is in an even worse situation (person for person) with a public debt of £1.4 Trillion ($2Trillion+) And those Bankers are now worried that they might not get their money back.

And what IS money? When money was just Gold and Silver, the Bankers got rich, by lending pieces of paper, that were exchangeable for Gold and Silver, that they had mysteriously created out of nothing more than paper and ink. This fractional reserve lending, grew their power, and grew their immense wealth.

The Houses of Rothschild, Morgan, Seif, Rockefeller and others who ran or owned Banks became the powers behind the thrones of more countries than could be imagined.

Digital Currency Drawbacks?

If we can just take our money “out of the banks”, this should force Bank Presidents to be prudent with it, or, as we saw with Northern Rock, we get a run on the Banks. When our money (or rather currency) is just digits on a Bank Balance sheet, we cannot. This means Bankers can fund whatever they want, without worrying about us cutting off their drug supply.

But a purely digital currency has several other drawbacks too.

With a purely digital currency, EVERY transaction will register on a computer somewhere. Tax Authorities will therefore be able to trace every transaction – And TAX it. That tax goes to pay salaries of government employees, but it also pays for those in politics, who may not always disclose where that money goes: Funding Wars overseas, providing incentives and making deals in private rooms under the guise of “National Security”, and it pays off the loans that bankers make to governments – all made possible by greater tax taking.

But a further worry is that the account details of every person will also need to be held somewhere too, making the prospect of 1984 as written about by George Orwell a frightening reality.

The informal economy disappears too.

Tipping a waiter, a Cabbie, a Pizza Delivery boy or even the Bin-man come Xmas time, becomes almost impossible. The loss of these ways of showing appreciation, potentially makes poor service a given, as with no financial incentive to provide excellent service, these people may offer mediocre service at best, or even leave the industry making many restaurants forced to pay higher wages forcing up costs, and thus reducing the number of visits per week, per month or per year. Giving someone a £50 note for a Birthday present, or Xmas present becomes impossible too. Teenagers everywhere will suffer, and grand-parents will actually have to get to know them and find out what their kids actually need – or want – and they may get a few unusual requests or worse…

But, the one big drawback for everyone, is not zero interest, it is negative interest rates. Which means charging you to hold your money. Anyone with savings in an account, or perhaps as the result of a house sale, becomes just another potential donor to a Banker’s lifestyle.

BUT the ultimate issue is one of liberty and trust. A business deal of old, demanded nothing more than the money, and a handshake. This relied on trust of the money, and the person. In a digital world, all trust comes down to is your credit rating, and your government granted identity number. Perhaps ultimately your radio frequency identification (RFID) chip implanted under your skin, so you don’t even need to carry a bank card.

But it also opens up a world of potential to deny you access to things the government thinks you shouldn’t see, or get access to. In effect WE become slaves to government, and the people who pull their strings, instead of government working for us. And that is the most important reason, why it should NEVER be considered the only way to pay.

“Bank paper must be suppressed and the circulation restored to the nation to whom it belongs.
“The power to issue money should be taken from the banks and restored to congress and the people.
“I sincerely believe that banking establishments are more dangerous than standing armies.
“I am not among those who fear the people. They and not the rich, are our dependence for continued freedom. And to preserve their independence, we must not let our rulers load us with perpetual debt.”

Thomas Jefferson – Former President of the U.S. of A.

And in his farewell address to the people, March 3, 1837, President Andrew Jackson solemnly warned the people against the Banker’s power, after the recent financial crisis; as the “Credit Crunch” is still ringing in our ears, it appears VERY apposite

“We are not left to conjecture how the moneyed power, thus organized, and with such a weapon in its hands, would be likely to use it. The distress and alarm which pervaded and agitated the whole country, when the Bank of the United States waged war upon the people in order to compel them to submit to their demands, cannot yet be forgotten.

The ruthless and unsparing temper with which whole cities and communities were oppressed, individuals impoverished and ruined, a scene of cheerful prosperity suddenly changed into one of gloom and despondency, ought to be indelibly impressed on the memory of the people of the United States. If such was its power in a time of peace, what would it not have been in a season of war, with an enemy at your doors.

No nation but the freeman of the United States could have come out victorious from such contest; yet, if you had not conquered, the Government would have passed from the hands of the many to the hands of the few; and this organized money power, from its secret conclave, would have dictated the choice of your highest officers, and compelled you to make peace or war, as best suited their own wishes. The form of your Government might for a time have remained, but its living spirit would have departed from it.”
(Read more at: The Coming Battle 2013 )

And Finally, if the above comes to pass, what will our International trading partners make of a currency, that can be conjured up on a computer by a banker? If China sells us Cars, Computer Equipment, Smart-phones etc, and all they get in return is a ledger entry on a computer, what confidence will they have that those digits will be worth anything, when they decide to spend them, possibly years later. What would you do if you were China?

If we are ever to have international finance based on trust, then there is only one solution – currency must be in the final analysis, backed by precious metals. and those metals represent true value, even if their value may vary from time to time – but Gold is still gold, and Silver is still silver. Platinum, and Palladium too are useful – usable in catalysts, jewelry and other uses. Silver is usable in 10,000 uses and rising, and its value and availability are about to get a whole lot rarer, and a whole lot more expensive as a result.

So if this does come to pass, who is really in charge in the UK? The Government? or its Financiers?

If you want to move your money out of the Bankers’ way? Then Click Here to get started.
PS:
After posting this I discovered a video clip by Max Keiser of the Keiser Report, which mentions the speech by Andy Haldane. Let me know what you think below.


W.

‘J’ Curve Conundrum.

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Thomas Malthus, was a Reverend at the dawn of the Industrial Revolution in England. In 1798, he wrote an essay, “Essay on the Principle of Population”, which was concerned with the rising population, and theorised that improvements in subsistence would lead to higher growth in population, which in turn would mean competition for resources, wars etc, which would lower standards of living back to subsistence level.

Of course back then he couldn’t have envisioned the dramatic changes in technology, and the inventiveness of we humans, nor of the advances in food production, and at how much land has been turned over to agricultural use.

We see examples of this in countries where historically the people had large areas of un-developed land: For example, in areas such as Argentina, which has large tracts of savannah – open grassland – and Brazil which has huge jungle and forest areas.

This led Argentina to grow Beef cattle, which was ideally suited to their environment and during the early 1900s, Argentina was one of the richest six or so countries on the planet.

In the last few decades, we have seen how forests and jungles have been cleared in increasing proportions, particularly in Papua New-Guinea, and Brazil with their rising populations, and need for more cultivated land, but also the loss of habitat for native species, and a rapid fall-off in biological diversity. Brazil of course became famous for its coffee crop, and more recently sugar cane, which it uses ( after processing into ethanol, ) in its efforts to minimize its oil costs by using it in its Taxi fleets, and other vehicles.

But was Malthus that far wrong? Back when Thomas Malthus was alive, there were just one billion people. By 1927, there were 2 billion. In 1960, that became 3 billion, and by 1974,  4 billion.  As of 1987, the population of the planet was about 5 billion inhabitants, and by 1999, that was 6 billion, in 2010, we passed the 7 billion mark, and those who make these predictions think we will surpass 9 billion by 2030-35, which means at current rates, we are adding 1 billion every 10-12 years on average.

With China announcing it will amend its one child policy so that those people who satisfy certain conditions, may have another child – this may drive growth faster. However, cultural norms which favour boys over girls, is precisely the policy which may lead to more men who do not have a partner when they reach sexual maturity, and this we know leads to higher sex crimes. But may also add to instability, and a political drive to find use for these men in the military.

But  if this means more unemployment, and higher demand for food at a time of maximum worldwide output, is this a recipe for wars over resources? And as China increases its economic muscle, so  it will increase its military muscle, and already there are rising tensions in the South-China seas, as Vietnam, Indonesia, Japan, and Philippines have rising demand for energy, and other resources which may be buried beneath this contested stretch of water, at a time that Chinese Naval vessels are patrolling and harrassing other ships in the area. Vietnam even mentioned its concerns in a broadcast on Vietnam’s Overseas broadcasts, which it is known that America monitors. Was this an open request for America to intervene?

Of course, back when Reverend Malthus was postulating, he studied rabbits, and of course mixamotosis cured that particular problem for decades when it first appeared in the 1900s. By the same token, wars such as WW1, and WW2 reduced the numbers of humans at a time of rising populations and lower economic activity, and have no doubt lowered the total populations that we see today. So, is therefore ,WW 3.0 almost inevitable?

If we study almost all “bubbles” from the South-Sea bubble of the 1780s, to the Dot-Com mania of the late 90s and early noughties, we realise that – as the old saying goes – “What goes up, must come down”.  Does this apply therefore to populations?  And if not, how do we cope with 10 billion plus people on the planet by 2050, given that the amount of land is finite, oil, gas, and other mineral resources particularly, take increasing amounts of energy and finance to find, but the biggest hurdles will be potable water, and food.

The unrest in the middle-east will be as nought if we do not as a species collectively address these hurdles. Many African countries have shared the vast river resources of the Blue and White Nile rivers, but what if one country through which the rivers pass takes more and more water for agriculture, and thus leaves less for those countries downstream?

In 2008, food riots broke out in 40 countries.  Aquifers are currently being depleted at phenomenol rates, and many will be empty by 2025. What is less well known is that these take 6,000 years to fill, and it takes 1,000 tonnes of water, to grow 1 tonne of Wheat.

And just since the year 2000, water demand has surged 58% worldwide.

So, everything is about to get VERY expensive

Precious Metals too suffer from this, and one of the few ways to protect yourself from what is to come, will be to hoard those resources that do not diminish over time. – Which brings us back to money – Not currency – A piece of paper, is a piece of paper, even if it does have $100 printed on it.  JP Morgan used to say “Gold is money, everything else is credit”, but Gold or Silver are also things of beauty, and when times are tough as we may be heading for, then possession is nine-tenths of the law, and the value of that money will  be preserved during inflationary times. Silver too, is a fungicide, a bactericide, and virucide. Kings and Queens, would in years past only drink from Silver vessels – a way to make potable water?

As Central Banks and particularly the Fed, manipulate the precious metals markets, we see Art prices rising inexorably – just as happened in the mid 1970s. Those seeking a return on their capital or who wish to move their capital to an overseas market to limit their tax position, may pay for an art-work, and ship it overseas where some years later they sell at a profit, and pay less in taxes.

Pop art icon, Andy Warhol, had a piece recently sold at auction, at over $100million. The Art market is telling us a subtle truth – the dollar is losing purchasing power, relative to things – Art in particular. The time will come for precious metals too.

Speaking of which, I’ve been reading more bullish sentiment of late regarding Silver Prices…

A couple of PM specialists feel that the bottom has already been and gone, and that we might see a new yearly high this year, and an all time high next year.

Having commented already on where I think Gold will go elsewhere, I suspect (But hope I’m wrong) that silver will remain in the doldrums for another 2 years or so, before we see a new all time high.

As things stand, Silver prices are not just based on investment demand. Supply is variable based on other commodity production – it is a by-product of several other mineral production… Zinc/Lead/Nickel/Copper/Gold mining in many mines, which with increases in growth in other markets will stimulate production of these other commodities (and thus silver).

As the price at the moment is still just above where mines can be profitable, then there’s not much reason to cut back production. (New mines are a different matter)

That said, there’s lots of new technology, which should keep demand up – with 10,000 uses, and the most widely used substance after oil – and if investors still keep buying silver coins and rounds/bars at unprecedented levels, at these low low prices, then once prices start to turn up, this will suck in the wider investment community, and we will see the blow off phase. (the J curve where the price goes vertical)

Of course, when that happens, that might be the end of the Dollar, though the U.S.’s rising oil production may overturn that as fewer dollars head overseas to pay for oil, and thus as some of those dollars return home for software, and other high-tech products, then this may strengthen the currency.

That said, hopefully, we’re at the turning point for precious metals. Anyone interested in buying Silver at V.A.T. free prices might want to learn where and how they can do this – Here