From La-la Land to Serfdom

I've not posted here for a while, I've been very busy and to be quite honest, things have been so incredibly surreal and so much has happened that I didn't know where to begin. In today's climate, blogging would have to be a full time job just to even slightly breakdown the news.

If you're not already doing so you need to start finding some good, reliable news sources...

Financially the plan of the global crime syndicate is really moving along. The Bilderberg documents from 2005 spelled a lot of what is happening out. I've known about this for a long time and yet to see it happen is both disturbing and surreal at the same time. They really are going for broke. Calls for a new global currency are increasingly cacophonous.

The truth is, the whole world financial order is a sham, being based on debt. Money is borrowed into existence, effectively charging us silently and then interest is paid. Where does the interest come from? Well, it's borrowed into existence with interest. There are many ways to fix our economic system, but fear is projected until the public are terrified they're worthless fiat money won't be available to them. When the solution of bailouts is suggested, they public sigh in relief. No-one ever stops to think where the money comes from... It's almost like the government is some huge, rich entity sitting on pots of gold...

...which brings me on to precious metal suppression. I thought that breaking the $1000/oz barrier would send gold to the moon. Back when Bear Stearns was eaten alive by JP Morgan at the public's expense, to save JP Morgan's credit default swaps from unwinding, gold shot up and since then has been mercilessly taken down through selling paper gold that doesn't exist, even though the news has been worse and worse ever since. There's been a plethora of even larger failures and gold falls, vertically, every few days at the exact same time every time. Even the most stubborn establishment journalists are beginning to see what is happening. There have been calls for the CFTC to investigate. They'll investigate for sure, but they'll conduct the equivalent of a government enquiry, designed specifically to protect the perpetrators. There is only one solution. Every single person who thinks there is manipulation needs to seize the opportunity to buy and take delivery. At this point only defaults in the futures markets can make a difference. As Jason Hommel so succinctly points out:

"Many people continue to write to the CFTC to investigate and end the fraud. I don't think they will, since it's the nature of futures contracts themselves that is the essence of the fraud."

I actually think they'll investigate, but I agree with Jason's point about futures.

The Gold Cartel have certainly done a great job of stopping precious metals from being the go to asset they usually are. But, artificially low prices mean shortages. That is the key to the end of the fraud. But therein lies the real danger.

You see, I'm not frightened of the economic problems. If the collapse was, well, collapsed in the right way, we could end up with a new financial system based on freedom and real wealth, and the hardships required to correct would be short and sharp. What bothers me is that we are heading for Global Tyranny on a scale never seen before.

The bailouts may stave off the pain for a little longer, but giving a junkie heroin isn't the answer. Solving the problem of inflation with inflation isn't the answer. The great financial bubble isn't really housing, or stocks etc. It's fiat currencies. When they all devalue at the same time, it's hard to notice. But viewed in what they'll buy is the key to understanding how we're getting fleeced. Sure, the dollar is strong at the moment, as people flee stocks into cash.

Now housing and stocks are unwinding, people are scared out of property and stocks. They want cash in the form of savings and bonds etc.

As they realise there is no safety there, there is only one place left. Buying stuff and in particular, precious metals. If you think about it, at the moment as debts go bad and things unwind the money is defaulted on, the credit not paid back, so the currency supply is shrinking. Deflation. That usually means currencies rise in value against goods and services as the market revalues them. The problem with that scenario is that when accompanied by recession, jobs tend to pay less and less as the cost of living drops also. But debts stay fixed and grow in comparison. That's what happened in the Great Depression.

The point today is that governments today run huge deficits and owe massive debts, many times GDP. They can't afford deflation, it would collapse the country because they'd default and no-one would buy their bonds. So they print, print, print, reducing the values of their debts, and paying them stealthily by stealing from the value of their currencies, so they needn't tax the people, which is never welcome and would be likely to kick the ladder from under their own feet.

It just takes time for this to become apparent. People see deflation so they run to cash for safety but Buck-busting Ben Bernanke has come to the rescue and turned the money spout on. It just takes time for that to have an inflationary effect, anything from 6 to 18 months.

I think the deflation will worsen in the short term and then the machine will be turned up to 11. All types of bad debt will be bought by the central banks. Eventually you may even see see lifetime tax rebate cheques, anything to get money into circulation. At that point however, the jig is up because the game will be obvious for all to see and the currency won't grow fast enough to counter the loss of faith.

Precious metals throughout history have always revalued themselves to the currency supply eventually. There are 140,000 dollars in circulation for every troy oz. of gold. As gold and silver become money again, they will equal all liquid currency and probably overshoot briefly. The gold market is tiny and the silver market even smaller, maybe 1 billion oz. At todays prices that's only $10-12 Billion!!!!!!!! A tiny, tiny fraction of the world's currency supply moving into precious metals would send their prices into outer space.

On top of that there is a massive silver shortage because in modern times it gets used, not hoarded. It will be industrial users who bid the price up as the shortage gets worse because they won't mind paying 10 times more, since each component they make may only use 1p or less of silver. That default on supply is coming soon, it's also why investors can't get silver now. Industrial users use more than is mined every year and investment demand has increased, perhaps ten fold. All stockpiles have been drawn down and all large bars are going straight to industrial users. If you bought 1000oz COMEX bars now and melted them down into 100oz and less and sold them in the real market, you'd make 50%! I hope wealthy people start doing just that to bring the day of default closer.

It's sickening seeing what's happening. There are worldwide shortages and 2-20 trillion has been earmarked for pumping in now. And the ultimate inflation hedge, gold acts like there is deflation. These bastards need bringing down and locking up. Tell everyone you know about the nature of money and it'd difference to currency... it's their only real defence against these tyrants. If only a few 1000 people have real money and know the problem it will be a cake walk to demonise them to the rest of the people and blame them, or at the very least, steal from them.