Wow, Willie Green.
Now there's a name I have not heard for a very long time...
Posted on 04/07/2013 6:45:56 AM PDT by Bon mots
For Americans, financial and economic Armageddon might be close at hand. The evidence for this conclusion is the concerted effort by the Federal Reserve and its dependent financial institutions to scare people away from gold and silver by driving down their prices.
When gold prices hit $1,917.50 an ounce on August 23, 2011, a gain of more than $500 an ounce in less than 8 months, capping a rise over a decade from $272 at the end of December 2000, the Federal Reserve panicked. With the US dollar losing value so rapidly compared to the world standard for money, the Federal Reserve’s policy of printing $1 trillion annually in order to support the impaired balance sheets of banks and to finance the federal deficit was placed in danger. Who could believe the dollar’s exchange rate in relation to other currencies when the dollar was collapsing in value in relation to gold and silver.
The Federal Reserve realized that its massive purchase of bonds in order to keep their prices high (and thus interest rates low) was threatened by the dollar’s rapid loss of value in terms of gold and silver. The Federal Reserve was concerned that large holders of US dollars, such as the central banks of China and Japan and the OPEC sovereign investment funds, might join the flight of individual investors away from the US dollar, thus ending in the fall of the dollar’s foreign exchange value and thus decline in US bond and stock prices.
Intelligent people could see that the US government could not afford the long and numerous wars that the neoconservatives were engineering or the loss of tax base and consumer income from offshoring millions of US middle class jobs for the sake of executive bonuses and shareholder capital gains. They could see what was in the cards, and began exiting the dollar for gold and silver.
Central banks are slower to act. Saudi Arabia and the oil emirates are dependent on US protection and do not want to anger their protector. Japan is a puppet state that is careful in its relationship with its master. China wanted to hold on to the American consumer market for as long as that market existed. It was individuals who began the exit from the US dollar.
When gold topped $1,900, Washington put out the story that gold was a bubble. The presstitute media fell in line with Washington’s propaganda. “Gold looking a bit bubbly” declared CNN Money on August 23, 2011.
The Federal Reserve used its dependent “banks too big to fail” to short the precious metals markets. By selling naked shorts in the paper bullion market against the rising demand for physical possession, the Federal Reserve was able to drive the price of gold down to $1,750 and keep it more or less capped there until recently, when a concerted effort on April 2-3, 2013, drove gold down to $1,557 and silver, which had approached $50 per ounce in 2011, down to $27.
The Federal Reserve began its April Fool’s assault on gold by sending the word to brokerage houses, which quickly went out to clients, that hedge funds and other large investors were going to unload their gold positions and that clients should get out of the precious metal market prior to these sales. As this inside information was the government’s own strategy, individuals cannot be prosecuted for acting on it. By this operation, the Federal Reserve, a totally corrupt entity, was able to combine individual flight with institutional flight. Bullion prices took a big hit, and bullishness departed from the gold and silver markets. The flow of dollars into bullion, which threatened to become a torrent, was stopped.
For now it seems that the Fed has succeeded in creating wariness among Americans about the virtues of gold and silver, and thus the Federal Reserve has extended the time that it can print money to keep the house of cards standing. This time could be short or it could last a couple of years.
However, for the Russians and Chinese, whose central banks have more dollars than they any longer want, and for the 1.3 billion Indians in India, the low dollar price for gold that the Federal Reserve has engineered is an opportunity. They see the opportunity that the Federal Reserve has given them to purchase gold at $350-$400 an ounce less than two years ago as a gift.
The Federal Reserve’s attack on bullion is an act of desperation that, when widely recognized, will doom its policy.
As I have explained previously, the orchestrated move against gold and silver is to protect the exchange value of the US dollar. If bullion were not a threat, the government would not be attacking it.
The Federal Reserve is creating $1 trillion new dollars per year, but the world is moving away from the use of the dollar for international payments and, thus, as reserve currency. The result is an increase in supply and a decrease in demand. This means a falling exchange value of the dollar, domestic inflation from rising import prices, and a rising interest rate and collapsing bond, stock and real estate markets.
The Federal Reserve’s orchestration against bullion cannot ultimately succeed. It is designed to gain time for the Federal Reserve to be able to continue financing the federal budget deficit by printing money and also to keep interest rates low and debt prices high in order to support the banks’ balance sheets.
When the Federal Reserve can no longer print due to dollar decline which printing would make worse, US bank deposits and pensions could be grabbed in order to finance the federal budget deficit for couple of more years. Anything to stave off the final catastrophe.
The manipulation of the bullion market is illegal, but as government is doing it the law will not be enforced.
By its obvious and concerted attack on gold and silver, the US government could not give any clearer warning that trouble is approaching. The values of the dollar and of financial assets denominated in dollars are in doubt.
Those who believe in government and those who believe in deregulation will be proved equally wrong. The United States of America is past its zenith. As I predicted early in the 21st century, in 20 years the US will be a third world country. We are halfway there.
That's a great idea. Illinois, which has no money to even pay their bills, should spend money on gold, and then lock it up.
That would make me more confident about the state's finances.
and who are the NY Fed member banks?
http://www.newyorkfed.org/banks.html
Adirondack Bank
Adirondack Trust Company
Alden State Bank
Amboy Bank
Banco Popular De Puerto Rico
Banco Popular North America
Bank of Cattaraugus
Bank of Millbrook
Bank of New York Mellon
BPD Bank
Chemung Canal Trust Company
Community Bank of Bergen County, N.J.
Depository Trust Company
Deutsche Bank Trust Company Americas
Empire State Bank
Five Star Bank
Goldman Sachs Bank USA
Gotham Bank of New York
Manufacturers and Traders Trust Company
Mizuho Corporate Bank (USA)
Northern Trust Company of New York
Orange County Trust Company
Peapack-Gladstone Bank
Solvay Bank
Tioga State Bank
Warehouse Trust Company LLC
Last week I bought 220 American Silver Eagles and 100 Walking Liberty Halves. The US Mint has been selling ASE’s at a record pace and 90% silver is getting harder and harder to find.
Oh, really?
http://silverdoctors.com/jim-willie-zirp-the-death-knell/#more-24437
Could you humor a financial naif and explain why?
Is the economy recovering despite the Fed buying its own debt? Are these two separate issues? Why is gold going down against the dollar if the value of dollars is going down too?
I just don't understand.
Why? Are you afraid Tioga State Bank is coming for your silver?
Really. He’s certifiable.
Just taking the San Francisco Federal Reserve Bank for example. It has at least 150 member banks http://www.frbsf.org/banking/institutions/bank-lists.html
Your list of 27 NY Fed member banks.... Most of them are a joke and provide cover for the real member banks. The ones that call the shots such as
Goldman Sachs Bank USA
Bank of New York Mellon
Deutsche Bank Trust Company Americas
Northern Trust Company of New York
Bank of New York Mellon
CitiGroup and JPMorgan should be there but are too cool for that. They are NY Fed primary dealers anyway and very “connected” to the FR money machine
It’s not my list. It’s the public record of the NY Fed Reserve itself.
The US$ centric view does not consider that gold is a standard by which all currencies are valued in a global economy. The relative valuation of the various major currencies has declined when measured against precious metals and other hard assets.
The valuation of the US$ is beginning to fall generally against real estate now that the mess is being resolved.
Inflation is the desired result and is not feared unless it hits a dangerous but un stated rate. We know that rate is in excess of the tolerable 2.5% stated this week.
Please. Illinois is becoming the Haiti of America, at least money wise. They could no more be trusted with gold than they could with grannies used undergarments.
I was talking about responsible red states who already have gold, will likely get more over time, and actually care about their citizenry.
Yes I know that list is on the internet from the NY Fed and is what you make of it. Do you think member bank —Bank Of Tioga has the influence that Mellon bank has?
Check out the San Fran Fed list, very long list of member banks while the NY Fed only has 27
Probably the “member banks” are the foot soldiers not the commanders.
The New York Fed is where all the action is. Controlling the money supply and interest rates... trying to at least. This is why they have a ridiculous list of member banks.
How does that mean they care for their citizens?
It would be better that they pay down their debt and keep their taxes low, unlike my joke of a state, than waste money storing gold.
The Constitution bans states from printing their own paper money or issuing their own currency. But it allows the states to make gold and silver coin a tender in payment of debts.
As of 2012, 13 states are seeking approval from their state governments to either issue their own alternative currency or explore it as an option.
What this amounts to is that if states *have* gold or silver, they can mint coins not as a currency, but to either back state debts or pay off existing debts.
In practical terms this means that their credit rating is sky high, so they can borrow money at much, much lower interest rates, because risk to the lender is reduced to almost nothing.
Say the state needs to borrow $10b dollars. If they can back that debt with gold or silver, instead of an interest rate of $1b, it might be just $50m. A much smaller bite on their taxpayers.
California, with no gold or silver, has to pay junk bond yields, if there is still anyone foolish enough to loan them money.
The other idea, that since they have a public depository, they can both snub the federal government, and help their citizens, by having it do double duty as a private depository.
This means we will hold your gold and silver “as is”, and give it back to you on demand; or, they will refine it to .9999 24K, and store it, or give it back to you on demand, but holographically make it numbered and very tamper resistant, and put it in a case, so that if you want to sell it, it is pretty much guaranteed as very pure.
They would likely charge you a small interest rate for doing this.
This idea really comes into its own if the federals decide to seize private gold again, offering to involuntarily “purchase” it at a ridiculously low price, as they did before.
Because the state can instead consider it a “debt”, pay you for it at the price of gold *at the time you deposited it*, not the ridiculously low federal price, then declare it the property of the *state*, so it cannot be seized by the feds.
Conversely, if and when the feds back off again, you can “repurchase” your own gold for exactly the same price that the state paid you for it, so you both come out “even”. Since the price may be considerably lower when gold has been legalized again, you got the better of the bargain in cash, but enough time will likely have passed that the sting is gone out of it for the state. And if the price of gold immediately skyrockets, you win again, buying your gold back at a much lower price than market value.
Even though he's been one stamp short of postal for a long time now, I was really surprised to see him praising Julian Assange as a hero. Nothing he says/writes will surprise me any more. I think he simply needs attention.
Willie Green used to like the guy.
“Poor Paul, still crazy after all these years. “
Yeah, I read the posted article and it reminded me quite a lot of the writing style of “Mein Kampf”: large numbers of insane, but seemingly plausible assertions without one iota of evidence to back them up.
Wow, Willie Green.
Now there's a name I have not heard for a very long time...
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