Backwardization is what depressions are all about. We see this increasing, not decreasing. In gold markets, in stocks, in interest rates offered by banks for holding funds, auto and wine sales: all are moving in negative numbers. Earnings are collapsing BELOW the Great Depression I’s levels! Also, England is thinking of putting health warnings on financial products. HAHAHA. ’Danger: Goldman Sachs gnomes infestation!’ is one possible sign we should see in Jersey City where their tower rises over all buildings there!
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Health warnings on financial products – UK Politics, UK – The Independent
Financial products could come with “health warnings” saying how risky they are, under proposals being unveiled by the Treasury today. Chancellor Alistair Darling is to suggest using alerts, similar to those already employed on cigarettes and fatty food, for pensions and mortgages….
The document is expected to endorse recommendations on tougher capital and liquidity requirements for banks, put forward earlier this year by Financial Services Authority (FSA) chairman Lord Turner.
It will also set out a range of options for curbing excessive lending – such as imposing tougher capital ratios for banks during boom times, and a “tax on size” to prevent balance sheets ballooning out of control.
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HAHAHA. Yes, let’s have warnings on financial instruments! ’Danger! This is a Ponzi scheme,’ for example, is a good choice. Or, ‘Warning: Goldman Sachs Danger Zone! Do Not Trade In Stocks Or Commodities!’ Then, there is the ‘Do Not Feed The Bernanke’ signs we need in Congress. How about, ‘Rip Off Artists At Work’ signs on Wall Street? Before any Cramer show, ‘Watching This Monkey Scream Will Puncture Your Ear Drums’? We also need a sign that flashes on screen whenever cute, fluttery females in tight clothes come onto financial TV shows: ‘Prostitutes Are Dangerous For Your Health, Wealth and Sanity.’
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One amazing thing here is the last paragraph: I recall, the Chinese central bank raised the reserve ratios back in 2007. The US and UK central banks refused to do this. The real question here is, why did China do this back when it mattered while the US and UK refused to do this? It was pretty simple. When China did this in August, 2007, world credit markets instantly began to retreat. Before this, even as the housing bubble popped in 2006, credit continued to flow into real estate.
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Indeed, the more astute people online such as myself, complained about this flow of easy credit into real estate. In 2006, the vast bulk of mortgages created were fake ones with super low temporary interest rates. Billions of dollars of these things were inked during 2006 and around 50% of these deals have collapsed into bankruptcy in the last year as the low teaser rates reset to the proper levels.
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Regulators to Consider Limits on Oil Contracts – NYTimes.com
Reacting to swings in oil prices in recent months, federal regulators announced on Tuesday that they were considering trading restrictions on hedge funds and other “speculative” traders in markets for oil, natural gas and other energy products.
In a big departure from the hands-off approach to market regulation of the last two decades, the chairman of the Commodity Futures Trading Commission, Gary Gensler, said his agency would consider limits on the volume of energy futures contracts that purely financial investors would be allowed to hold…..
The agency also announced that it would pull back part of the veil on the oil and gas markets, publishing more detailed information about the aggregate activity of hedge funds and traders who arbitrage between domestic and foreign energy prices….
But a growing number of critics have blamed some of the extreme volatility on the role of purely financial investors — those who are simply betting on the direction of energy prices, as opposed to those who actually use such products, like airlines.
Both the NYT and WP wrote longwinded articles about a very simple matter and both managed to avoid naming any names. JP Morgan and Goldman Sachs were 100% responsible for destroying our economy last summer. As the US ground to a standstill, GS and JPM were whooping it up, getting immense bonuses. They control our government so we didn’t hear a peep from any responsible politicians. Instead, everyone was supposed to talk about removing the tax on gasoline! This infantile approach was encouraged by political hacks who were being bribed by GS and JPM to lie about who was responsible for the sudden surge in oil prices.
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I don’t want any blame to fall on the ’sheeple’. People can’t know things that are hidden from them. I do hope Gary Gensler carries through his threat to make markets more informative. GS and JPM get tons of insider information. The poor saps who try playing the commodity markets on the same playing field as these giants is at a severe disadvantage. One can only read various blogs and watch bimbos on TV wearing short skirts cooing about what is hot, hot, hot. But GS and JPM know exactly how the market is operating, who is buying what, where and when and other cool data. We are always playing catch-up. To have real-time deep information would be most helpful.
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Of course, we saw this week how the markets behaved when a Russian computer expert leaked information of the super-secret GS trading program. GS said, IN COURT, that this program, IN OTHER HANDS, would destabilize markets! As if GS hasn’t grossly destabilized markets, using this creepy program, themselves! The entire hedging markets has blown up in size from a small corner of markets into the major force in markets due to the creation of the Derivatives Beast. This thing, far from killing risk, has made risk impossibly huge and impossible to avoid. So if one element goes down, all others go down.
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Since GS and JPM and other swindlers control our Congress, they will talk about openness and information sharing but in the darkness of night, will toil hard to prevent any real changes that cuts GS advantages so they can’t loot the rest of us. By the way, one of my neighbors is a GS executive. She and her husband don’t talk to me anymore. HAHAHA.
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Wine Cheaper Than Water in Australia
According to news.com.au , major wine retailer Dan Murphy’s is currently selling some wines for $1.99 a bottle – cheaper than some bottled water. “We’ve seen growers who didn’t bother picking their grapes this year,” said wine industry critic and judge Stuart Gregor. “There is a huge oversupply and we have more grapes than we are selling, and prices are being pushed down.”
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A collapsing system sees these sorts of strange effects. For example, when oil was very cheap, it was less per quart than bottled water. This is a danger sign. A great deal of this water being sold is nothing special. I have a mountain with real springs and drink this unadulterated water. But the big water sellers get their own water often from municipal water systems, for example. And when it is put in a plastic bottle, it is not as pure as wine in glass bottles, just for example.
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Wine production has been proof of a culture being ‘civilized’ ever since the Empire of Crete pre-1800 BC. The delightful and playful civilization of Knossos and the Cycladic Islands was based on oil from olives and winemaking. If I had to move into the past and live in some civilization, I would choose this one.
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Clark Howard: New car today can be cheaper than used one – CNN.com
New data from Comerica Bank’s Auto Affordability Index shows that new cars are now the most affordable they’ve been since records started being kept in 1979. In fact, the average new car is now $1,700 cheaper than it was during the last quarter of 2008. And we’ve got more price cuts coming because of oversupply.
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This is totally insane! I got this in the mail yesterday:
The funky check in this offer is via Uncle Sam, the guy with the bottomless credit line with China and OPEC. Seems, he wants me to buy new, not used cars. There are many paradoxes at work here. For example, I can’t sell my old car easily! Thanks to these offers. So, Uncle Sam will junk my perfectly useable old car if only I replace it with a brand new car! Now, this is very uneconomical. It screws up the entire business of capitalism. It is faux capitalism. It is funny money capitalism. It is capitalism with no capital but all about adding on immense seas of debt to keep business going.
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S&P 500 Earnings Decline: 90% | The Big Picture
Barry Ritholtz
With earnings season coming to an end, I wanted to find a way to depict the severity of the financial meltdown into the context of profits. This Stock of the Day chart does so, showing just how unprecedented the profit destruction has been:
This graph shows how profits have collapsed. They are basically below Great Depression I levels. This new Great Depression is obviously eating our financial lunch. Even as GS and JPM hand out immense, record bonuses to their financial geniuses who earned these things by destroying our entire economic and monetary systems, we see real profits collapsing in all industries, all other endeavors. Only warmongering and ripping off the investment business is working anymore. So, hedging via playing insider commodity games is very lucrative for the guys we bailed out last September when both GS and JPM suddenly and magically turned themselves temporarily into regulated banks so Uncle Sam could go to China for funds to bail them out.
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Now, both pirate organizations have reverted to their natural forms: as looters. And they are surpassed only by the people looting this nation so we can have one of the most inefficient and expensive healthcare provisions of any industrialized nation on earth. The insurance companies are flooding Congress with loot so Congress will repair this mess by making the looting even easier. The phobia about paying taxes comes in view here: people who have someone else bankroll their health insurance have the luxury of worrying about taxes. Those who have no health insurance go bankrupt due to trying to pay the healthcare costs, out of pocket. No matter how much you save, one heart attack can wipe you out, even if you have squirreled away more than a million dollars in savings!
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With healthcare, oil sales, military spending (ie: TAXES) and financial games by GS and JPM all being the ONLY profit centers in our civilization, we will go bankrupt. These things are all very non-productive compared to other sectors. And the way we are propping up our auto sector is simply making things worse, not better. First of all, a lot of this loot will flow to Japan, our most dangerous rival so far, in the auto sales sector.
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http://www.professorfekete.com/articles/AEFTheVanishingOfTheGoldBasis.pdf
THE VANISHING OF THE GOLD BASIS and its implications for the international monetary system A paper presented at the Santa Colomba Conference on the International Monetary System at the Palazzo Mundell, July 2009. Antal E. Fekete San Francisco School of Economics The basis for agricultural commodities shows a clear annual cyclical pattern that closely follows the crop year. It starts with contango just after harvest, and ends with backwardation when supplies are drawn down just before the new crop is brought in.
The behavior of the gold basis lacks this cyclical pattern characteristic of the markets for agricultural goods. Contango obviously follows the fluctuations of the interest rate up or down, the adjustment being practically instantaneous. But, in addition, there is a rather curious phenomenon that can be described as the secular vanishing of the gold basis. This means that, as a percentage of the carrying charge (interest) the gold basis has been steadily eroding and by now has all but reached zero. Reversals in the trend, if any, are minor and temporary. It is difficult to imagine any combination of circumstances in which there could be a major reversal in the trend of the gold basis, unless there was an explosion of interest rates.
It is incumbent upon economic theorists to explain the peculiarity of the secular vanishing of the gold basis, which is not observed in the case of the basis of other non-agricultural commodities such as the base metals, for example.
The overwhelming fundamental fact about gold during the past half a century is the steady and relentless absorption of new supplies from the mines through individual hoarding demand. Half a century of gold production at peak rates of output has disappeared without a trace and is by and large unaccounted for. This is more gold than had ever been produced previously. At the same time also absorbed was whatever monetary gold governments and central banks have in their wisdom dishoarded.
It can hardly be doubted that if further supplies of monetary gold were dishoarded, it would be easily absorbed as well, and any setback in the price of gold on that account would be temporary. One should also remember that net dishoarding of gold by governments and central banks is a thing of the past. Countries such as China, Russia, Brazil, to mention but a few, are on record as wanting to buy all the gold they can without unduly disturbing the price. This means that the combined net private and official demand for gold will be insatiable for the foreseeable future. This is in full agreement with the secular vanishing of the gold basis.
The burning question is what happens when gold markets go to permanent backwardation, as is likely if present trends continue. Clearly, the gold futures markets will be no longer viable as they are presently constituted. The main source of gold for investment purposes will be permanently shut, as a negative gold basis means that all offers to sell cash gold have been withdrawn. To see this we have only to remember that paper gold promising future delivery can no longer be trusted under the regime of a negative basis, as explained above. The huge volume of trade in paper gold would disappear with the advent of permanent backwardation.
Gold is being hoarded. South Korea is now hoarding gold. This gold hoarding will increase. Negative Global Interest Rates, Sweden Cuts Deposit Rate to NEGATIVE .25% : this news is shocking! I suppose, there will be a run on the banks. People will haul out their funds and find a new place to put it. Most likely, in foreign banks. But a good number will buy gold, I guess. This is insanity. Governments are subsidizing private purchases of often frivolous consumer goods (most Americans do NOT need new cars!) while the entire banking system continues to collapse.
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As I showed in the past, this is mega-backwardization. It is a process whereby we make all things flip from positive to negative. This takes me back to one of my main themes: all systems that come from the Cave of Wealth and Death are like lightning. The negative/positive polar charges will suddenly flash and with a deafening boom, switch places. Yesterday, a lightning bolt hit my house (as per usual) and there is no ‘boom’ when this happens. The sound is a deafening ‘crack’ and this is a crack in time and space.
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The electrical systems we live inside of is mostly invisible. We don’t ’see’ this unless there is a violent storm. Then, the very invisible negative or positive charges that surrounds and flows over all things suddenly becomes blindingly visible in a split second. We are in an economical storm. But the roar of the thunder, the blinding flashes, are not coming out of nowhere. We could see this storm gather strength, long, long ago. I would suggest, during the Vietnam War.
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The day Nixon decided to dump the gold standard was the launching point of many forces. We see them clearly, now, as they interacted with each other and grew in power. The depression cycle has only two ways it can end: WWIII or a mega-inflation event caused by too much government debt created to push the economy forwards in the teeth of a collapse in our collective ability to take on more debts.
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By the way, I am very pleased to see Fekete echo my own warnings about gold: it is all about possession. If you have papers claiming that you can redeem this for physical gold, you will discover that you cannot do this. And this is a sign that we are entering a ‘flip’ point where up is down and in is out and the polar opposites exchange places and we have this loud ‘crack’ sound.
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Normal backwardation – Wikipedia, the free encyclopedia
Normal backwardation is a futures market term describing a situation where the amount of money required for future delivery of an item is lower than the amount required for immediate delivery of that item. For example, immediate delivery of gold may cost $1,000 an ounce, whereas delivery in two months only costs $900 an ounce, with that $900 to be paid at time of delivery. It is a peculiar situation, because no rational person would buy gold for $1,000 an ounce today, when they could enter into a contract to take delivery for $900 in two months time, except when they do not believe their counterparty will be able to deliver at the $900 forward price, or if they needed to use the gold immediately (more likely to occur with a soft commodity such as grains). Thus backwardation is a signal that the item in question is in short supply. [1]
Formally, backwardation means a downward sloping forward curve (as in an inverted yield curve). A backwardation starts when the difference between the future price and the cash price is less than the cost of carry, or when there can be no delivery arbitrage because the asset is not currently available for purchase….
Backwardation very seldom arises in money commodities like gold or silver.
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Just a review of this business. Gold and silver markets are commodity markets that happen to also be the shadow system of what used to be the top value banking systems on earth. That is, any empire that could coin actual gold or silver coins without debasing these with base metals (the US began doing this in 1964) means price stability. So why speculate? Speculation flourishes when there is some difficulties in matching cause and effect or price and volume, etc. Since gold and silver are now in backwardization, this is a sign that all systems continue their depressionary cycle.
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Gold has been relatively stable compared to say, housing values or the price of aluminum or bottles of wine. By the way, JPM and GS play the gold markets, too. They play in all markets. And usually devastate them. Beware. They know a lot more than we know because they have control of the levers of power inside both the Federal Reserve as well as the Federal Government. They are the true shadow government.
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Contango Vs. Normal Backwardation
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35 Comments
July 8, 2009 at 2:53 pm
Re: Contango vs Normal Backwardation graph at the end of today’s blog.
It seems to me that you have your labels inverted.
ΩΩΩΩΩΩΩΩΩΩΩΩΩΩ
ELAINE: that is the way the graph was set up. If it is wrong, let me know exactly what is wrong with it.
July 8, 2009 at 3:18 pm
elaine says: The delightful and playful civilization of Knossos and the Cycladic Islands was based on oil from olives and winemaking. If I had to move into the past and live in some civilization, I would choose this one.
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this is the time and place where the better womens fashions did not include covering their breasts if i remember correctly. forever, men will literally sacrifice everything and themselves for the right breasts won’t they. and in return, women expect men to make the world a better place for them to be happy in. and so the world turns. trapped because of breasts. i’ll bet eve had nice ones.
July 8, 2009 at 3:26 pm
3 Chinese Firms use Yuan
in cross border trade for
the first time.
http://tinyurl.com/n3fd83
July 8, 2009 at 4:35 pm
My girlfriend has perfect breasts…last weekend we visited the Louvre and I told her that they should be hanging there instead of the Mona Lisa.
July 8, 2009 at 4:55 pm
3 Chinese Firms use Yuan
in cross border trade for
the first time.
http://tinyurl.com/n3fd83
ADIOS DOLLAR !
July 8, 2009 at 4:57 pm
In this little parable the “dog” is the working people. The “hunter” is the CEO’s. The “gang of
men” that greet the hunter” are the bankers and Wall St types. And the “villagers that chase down
the dog” are the Rush Limbaugh dittoheads.
“Once upon a time up in the mountains of Africa, there lived a hunter and his trusty mongrel. Dog and master had a good fruitful working relationship. They worked together hunting as partners and once a kill was made, the dog would be taken care of.
Of course he would not get the choice cuts, but the dog could count on the hooves, the inedible parts of the head and so on while the human got the really good meat.
But the mongrel was happy with his job. It was interesting. He got to travel to distant bushes and meet different animals. And the pay, well, a dog could live on it.
One day, dog and master went out hunting and got a particularly juicy buck. It was fat, strong and beautiful and took all the strength of the mongrel’s jaws to hold it down, awaiting his master. The master duly came, finished off the prey and carried it back to the village, his faithful dog, proud and exhilarated, at his heels.
But on arrival, something strange happened. A large pack of men came to congratulate the hunter on his good job. They stayed to help with the slaughter. The dog watched from the sidelines, occasionally rising to wag his tail and grin in appreciation of the proceedings. His stomach was, however, on fire. He used too much energy to fell the prey and was hungry.
But the hunter appeared to have forgotten his partner. He gave the intestines to one of the villagers and the liver and other delicacies went to his own hut. The dog watched with rising panic as all the scrap were shared out, then the villager hoisted the rest of the carcass and took it to his own hut. The hooves also went to another villager.
At this point the dog was on his feet, alarm quickly turning to fury. Only the skin was left and as the hunter and villagers prepared to ready it for curing, the dog swung into action.
Quick and agile, he snatched the skin between his jaws and took off like an arrow. A gaggle of villagers grabbed various weapons and shot off after him.
The dog ran and ran past the village, down gorges, forded rivers shied and up deep valleys. Ten miles away he looked up and the strong pack of runners were hot on his tail. More miles down the road and the dog was beginning to weaken. He took another cautious look back and the villagers were beginning to gain on him. He grabbed up the skin and off he went again. He ran and ran for hours in the hot sun. Weary and fed up, the pursuers no more than 30 paces behind, he put down the skin and turned to face the villagers, and asked, “Gentlemen, this is not about the hide , is it.”……………………….. (no question mark needed)
July 8, 2009 at 6:12 pm
I really want to know who is selling North Korea all the computers. Is it Dell, Lenovo ( IBM ), HP, SUN? Someone is selling those damn things to NK and shipping them there and opening bandwidth for them to connect to the world. It is probably the same people who sell NK, the printing presses, paper and special ink with which the NK’s make all the super funny money.
( Previous para was snark for the snarkimpaired).
July 8, 2009 at 7:39 pm
Morgan Stanley Plans to Turn Downgraded Loan CDO Into AAA Bonds
http://www.bloomberg.com/apps/news?pid=20601087&sid=aeTzfvEedKpQ
July 8, 2009 at 9:21 pm
This is very off topic but there’s an almost unnoticeable smiley face in the top right corner.
Does it mean anything?
July 8, 2009 at 9:23 pm
From that tio’s link:
“A lot of banks and insurers “cannot buy anything but AAA,” said Sylvain Raynes, a principal at R&R Consulting in New York and co-author of “Elements of Structured Finance,” which is due to be published in November by Oxford University Press. “You’re manufacturing AAA out of not AAA, therefore allowing those people who have AAA written on their forehead to buy.” ”
In other words, another clear fraud coming up. Wonder who will buy that junk anymore?
July 8, 2009 at 10:38 pm
Nearly everything was rated AAA even if the payments on these bonds were backed by people promising to pay $500,000 mortgage on shanties in slums.
July 9, 2009 at 12:00 am
Speaking of backwardization, Feminist Majority Foundation advocates further troop escalation and war in Afghanistan.
“As humanitarians and as feminists, it is the welfare of the civilian population in Afghanistan that concerns us most deeply. That is why it was so discouraging to learn that the Feminist Majority Foundation has lent its good name — and the good name of feminism in general — to advocate for further troop escalation and war.
On its foundation Web site, the first stated objective of the Feminist Majority Foundation’s “Campaign for Afghan Women and Girls” is to “expand peacekeeping forces.”
July 9, 2009 at 12:01 am
Re Bill’s comment.
A seller of an above-ground commodity to you at a future date incurs storage costs, insurance costs, and the like before you take delivery. So,other things being equal, (in particular, the ’spot’ price of the commodity being expected to remain constant) then it is natural to expect the commodity to sell for a higher price when the delivery is farther into the future.
Turning to the chart at the end of today’s blog, the falling red contango line shows how in ordinary times, with good confidence and trust, a seller could get $90 for gold delivered on a certain date a year from now but probably will get only about $65 for gold to be delivered on that same date if the sale is delayed half a year. The buyer will pay less for the gold to be stored by the seller for a shorter time.
The chart seems OK, understood this way.
This falling red contango line is only speculation as to what will happen to a certain futures contract. So if what’s depicted actually does happen then we will look back and say that a year ago the commodity WAS in contango.
The rising green contango curve from the referenced article’s other figure, figure 1, actually represents a slightly different notion of contango using SEVERAL contracts of different maturities, instead of the behavior of ONE contract at several points time. If futures contracts are priced this way then we say now that the commodity IS in contango now.
-Fred
July 9, 2009 at 12:07 am
Thank you, Fred, for the comments. Yes, there are storage, handling and insurance costs when playing in commodity future markets. They all have stress points. The thing I believe we are seeing is market manipulations (for example, encouraging auto sales via various tricks and schemes) that are supposed to defeat the Great Unwinding created by Libra balancing our books.
The auto business is very unbalanced on several key levels. For example, we import a lot of oil. The last thing we need is more cars on the road and more driving. Yet, this is what is being artificially boosted.
On the other hand, the major G7 nations claim gold is useless so they unloaded it. But now, Asian nations are saying, gold is great. We are entering a conflict of interests here! It will be most interesting to watch this unfold.
July 9, 2009 at 2:29 am
California: Terminated?
there was this story about IOUs or something
July 9, 2009 at 2:33 am
years ago when i still cared i used to graph by hand all the different soybean contracts on the same graph in different colors for the hell of it. that year, something was special about the growing season because the different contracts made like a mobius strip or something as they turned upside down and inside out because of a coming bad year….or a much better new growing season. anyway, that was contango i read. that was when the commodity markets meant something real to the people involved with growing commodities and raising commodities and processing the commodities. that was when the world made sense and worked a hell of a lot better….
and a smiley face????
July 9, 2009 at 5:22 am
” We ought to remember that if all the remaining paper wealth is wiped out, gold will still survive intact. It is the only financial asset that has no counterpart as a liability in the balance sheet of someone else. That is its main excellence, a property lacking in all other financial assets.”
Antal Fekete
I have wondered who the buyers were for the thousands of tons of gold sold by Central Banks and government treasuries in the last three decades. It is dismissed as a barbarous relic in public, but behind the curtain gold is money. It transfers wealth and power through time and space. The billions of humanity are forced to accept fiat over the barrel of a gun, as the profits are sequestered in gold for use by parties unknown, for purposes unknown, at a time unknown. Elaine, do you consider that the breakdown of law will make it essential for PTB to back a currency with gold to establish credibility when promises to pay are no longer trusted or accepted? Bernanke is a fan of FDR’s confiscation of gold and the consequent devaluation of the dollar in 1934 as gold was repriced from 20USD to 35USD. This was an overnight 57% devaluation little mentioned in history or press of the time. The looming WWII allowed the Breton Woods reset of the ponzi system of debt.The mathmatics of compounding makes debt based money subject to inevitable collapse and the PTB must use war(violence) to maintain control during the reset period. The following link and a few excerpts might point to possible actors and the future, or it might just be another nightmare. Just the same, gold gives one a certain independence, but I suppose the man behind the curtain doesn’t like competition from backyard bankers. Thanks for the article, Elaine.
http://www.augustreview.com/issues/globalizati/trilateral_planto_corner_world_gold_market?_20081209107/
By Patrick Wood, Editor
December 9, 2008
[Editor's note: members of the Trilateral Commission and companies with Commission representation appear in bold type.]
Since 1973, this writer has made inquiry as to the location and ownership of the vast stores of monetary gold (400 oz., .999 pure bars) in the world. There has not been a formal audit on Fort Knox, for instance, since the Eisenhower administration. Official statistics on gold holdings are often contradictory. Getting plain answers from any Central Bank in the world, including the Fed, is virtually impossible.
[]
Although the economic and financial experts swore that gold was an outmoded, ineffective and useless financial asset, cooler heads knew better. In recent years, these same experts have reversed field and are now proclaiming that gold is still, and always has been, a consistent monetary asset. Why the flip-flop?
The economic chaos in the world today is a direct result of policies set in motion to foster a New International Economic Order (NIEO). The NIEO was the explicit creation of the Trilateral Commission, founded by David Rockefeller and Zbigniew Brzezinski in 1973, and their early papers and task force reports clearly asserted their NIEO plans.
Members of the Trilateral Commission were instrumental in creating the European Union as well. The EU is the prototype of global governance that will soon exert its influence to reshuffle world relationships.
Since 1973, Trilateralists have dominated the Executive Branch of the U.S. government with politicians like Jimmy Carter, George H. W. Bush, Bill Clinton, Al Gore and Dick Cheney. This has led to domination of the world trade mechanisms like the World Bank and negotiation of free trade agreements.
[]
There is mounting evidence that there has been a larger plan underway to corner the global supply of gold, thus laying the groundwork for a global currency exclusively controlled by Trilaterals and their friends. By extension, economic and political mechanisms would be controlled to the same extent.
[]
Since 1973, there has been an overarching plan to quietly centralize gold into private hands, using incrementally created wealth made possible by rapidly inflating paper currencies.
This theory must be explored and tested, because if true, it represents not just the hijacking of America (already thoroughly demonstrated elsewhere in this writer’s papers), but the hijacking of an entire planet!
In 1976, Antony Sutton wrote,
“The assault on gold today is an integral part of a planned move into a new economic order under the dominance of a single country. It was Nazi Germany in the 1940’s; it is the United States in the 1970’s. In brief, the war on gold that we observe today, and discuss below, is dollar imperialism, designed to maintain the U.S. dollar as the only world currency without competitors. The purpose is the formation of a world totalitarian state under Wall Street dominance.” (The War on Gold, Antony C. Sutton, 1976, p. 63)
Sutton’s view was limited because he had not yet discovered the Trilateral framework just created three years earlier in 1973. We can see now that the totalitarian state is still clearly in view, but the self-proposed rulers of this new arrangement will be members of the Trilateral Commission, and their monetary “enforcer” will be gold.
[]
July 9, 2009 at 5:47 am
I am constantly being out bid on houses by investors… and as of today i am going to underbid more and wait until november/12% unemployment or a fantastic deal… people are throwing all kinds of money public and private into housing and its barely treading water ‘believe that’… since i cant get what i want… im gunna try to stick it to the man more ‘the momentum is in my favor’ and wait tha’ damn thing out or make a real deal… give me high interest rates you bastards in the fed cuz all the cash you pumped into speculators is still out there ‘believe that’
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oyeah and gold and bankwardashin… thats the unknowable… i see it this way… its a spread, and what the ‘valuable’ truly is will rise to greater value and the common… yeah like that stuff will be almost a joke, especially with joblessness and mass retirement/liquidation… who knows how far backwardation has to go with market manipulation before its a out in the open black market scence, neccesary to just participate in the economy
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http://www.youtube.com/watch?v=vOO5ofUk4xI&NR=1
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in the future people will buy more stuff they need
July 9, 2009 at 5:57 am
the modern speculator is someone with wads of cash ‘probably earned by modernizing the economy utilizing labor to scale access to essential modern services at a competitive cost advantage using impressive teamwork and leadership skills’
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you break it you buy it
July 9, 2009 at 9:00 am
“It’s Finished”…
http://tinyurl.com/pjcdwj
July 9, 2009 at 9:52 am
Cave of Wealth & Death
update:
AlphaParty founder
wearing Hugo Boss
jumps w/champagne
http://tinyurl.com/l65bd9
July 9, 2009 at 1:31 pm
Thanks, Tell, that was very good to read.
But I still don’t get it, why are the banks “too big to fail”? If the nation bailing them out fails with them, I see no point in doing that. If our financial system is insolvent, declare it and rebuild it! No reason to pour infinite money and future taxpayer obligations to it at all!
July 9, 2009 at 1:32 pm
Well, the only reason to bail out would be that the damage in economy will be smaller. But when we do not know the value of banks assets, I say reset the damn things.
July 9, 2009 at 1:42 pm
“ There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.
John Adams (1735-1826)
July 9, 2009 at 1:45 pm
Duski
There comes a point when too many people realise that the governments can`t bailout the banks,they don`t have and never will have the vast amounts of money that is needed to accomplish this feat. All this is an illusion, just playing for time and that Duski is now running out…Fast. As the old saying goes…”The game is up”.
I will tell you this…They will not give power up at the polls doing so would take away their wealth and their power. VERY nasty times are ahead for us all…Time will tell.
July 9, 2009 at 3:47 pm
Duski
I should also have told you it`s got more to do with the running out of planetary resources then it has money/debt. Hence the elites fixation with world population control and the world domination of said resources, oil etc.
July 9, 2009 at 3:49 pm
“T. Boone Pickens New Plan: America Is Entitled To Iraqi Oil As Compensation For Fallen Soldiers (Poll Question) “…
http://tinyurl.com/ll8sqp
July 9, 2009 at 4:46 pm
HAHAHA. T Bonehead Pickpocket thinks like a Nazi. We invaded, we got hurt, invading, so we get to loot anyone we invade so we can pay ourselves off for the trouble of invading.
July 9, 2009 at 4:50 pm
“running out of planetary resources then it has money/debt”
That should have read…
The past mismanagement off planetary resources has led to us running out of planetary resources.
July 9, 2009 at 10:36 pm
[...] Since GS and JPM and other swindlers control our Congress, they will talk about openness and information sharing but in the darkness of night, will toil hard to prevent any real changes that cuts GS advantages so they can’t loot the rest of us. By the way, one of my neighbors is a GS executive. She and her husband don’t talk to me anymore. HAHAHA. Courtesy of Culture of Life News [...]
July 10, 2009 at 11:58 am
If one believes that Gold is in some way the way that the future will make trading and buying and selling convenient again, then why do you keep talking up the vitrues of gold NOW. The more you talk, the more you might just convince some addlepated statist drones to enter the market and buy gold even though it is contrary to their educational conditioning. More buyers, higher prices to you. Higher prices to you today means that you will have less of this useful stuff tomorrow when the shit hits the fan. People who really and truly believe that gold will make the future right should be talking down the barbarous relic at every chance they get, badmouth the goldbugs, agree with Franklin’s thefts and Nixon’s renunciations.
BUT NOOOOOOOOO
You kvell and kvetch and shout huzzanahs about the virtues of gold and it keeps going up in price.
Accumulation requires some sense of strategy, some degree of hard work, and the ability to Keep Your Mouth Shut if you can’t say something bad about Gold.
All those websites and experts praising gold to the skies are also very willing to sell you gold now.
I am much more impressed with the sites TV oriented sites that are willing to buy your “junk” gold for “almost” spot minus a small shipping, handling, refining, assaying, and general operating fee. I wish I has thought of that way to accumulate the barbarous relic myself. The TV sites are very willing to give you crap paper for metal value. I suspect that there is a Bush family member somewhere in that TV company. The Bushes have poo-poohed gold for a long time, they own large chunks of a few big gold mines too.
July 12, 2009 at 6:02 am
CK. have you checked gold spot lately? it’s been trading at the SAME OLD PRICE of $900 and change for many months now. re-lax.
July 12, 2009 at 6:03 am
elaine, do a search for “half past human” and let me knwo what you think!
July 12, 2009 at 11:09 am
@NewOak
And if the prosletyzers were not so vociferous, it would be trading lower and my FRN/slave points would buy more. But NOOOOOO. Like speed addled hippies they just keep yapping and educating and tut-tutting.
STFU and buy large on the declines, if you truly think that bad times be coming on, or that the NWO is arriving soonest.
July 15, 2009 at 3:25 am
http://www.counterpunch.org/martens01212008.html
Pam Martens (second only to Elaine in her investigative brilliance) nailed the bogus derivative CDS pricing done by Markit controlled Goldman Sachs. It is now coming to light in a probe by the Justice Department leaked today (becasue it was buried in the 10Q along w/ GS earnings yesterday).