One of the boomerang effects of ZIRP lending of ‘money’ created out of thin air as credit from the Federal Reserve’s attempt at saving the richest, biggest banks on earth from their own follies, was the sudden, catastrophic surge in most commodity prices as the very rich fled stock markets and flooded into commodity markets. This, in turn, has fueled world revolts as people are caught in this terrible price vise with declining wages and rising survival costs. The sudden, global spread of the semi-anarchic Occupy Wall Street is a sign of vast, deep, international public distress with the Wall Street profit machine in general and specifically, how speculators are destroying society.
Of course, the clueless minions of the mainstream media have to pretend that Fox News doesn’t lie and the NYT isn’t an organ for internationalist Bilderberg conspiracies and everyone has to pretend, on TV and in print, that the OWS demonstrators are clueless. But the demonstrators do have a clue and it is deeply embedded within their collective name for their global demonstrations: Wall Street is definitely at fault here. They created the conditions that led to the present global collapse. They bribed politicians not only in the US but in the EU and UK to rig up a system that would self-destruct.
They were the ones who corrupted the regulators or got politicians to scrimmage for them against regulators. So, thoroughly intimidated and left with fewer and fewer tools for regulating markets, a vast series of gigantic bubbles began cooking. This is so easy to understand: the most quick, easy money to be made is via inflating a bubble. It doesn’t matter what is used as an excuse or a basis for a bubble. All bubbles depend on easy credit given to SPECULATORS who then bid up the price of everything in sight. If they have access to ZIRP loans, they can speculate with virtually no capital at all and pay off these quick loans via the profits from speculation.
If there is an endless supply of easy ZIRP credit offered to bankers, they will take it and by gold futures, buy oil futures, buy stocks, engineer take overs and mergers, lend to property buyers, etc. If trillions and trillions of dollars, yen and pounds are handed out this way, they flood markets with ‘new money’ created via loans. Since no sane bank can hand out ZIRP loans, this is up to central banks who run the printing presses. Their only limit to printing up money via lending to the big bankers and governments is fear of inflation.
Inflation is one of the most clever of the Goddesses (as I like to think of these unemotional, natural forces, to personify them as gods and goddesses is instructive since the lessons about wealth all are very ancient and lots of this is in mythology) is the Goddess of Inflation. The central banks know that if they let too much free funny money loans circulate, we get inflation. The forms inflation takes while cooking is simple to see: if commodity and asset prices shoot upwards rapidly, this is a signal that there is too much money floating around in the SPECULATIVE community.
Here are some older cartoons explaining how all this works. The Cave of Wealth and Death is very ancient. People recognized this dire place which is deep inside our own brains and is our subconscious mind’s core, is where greed and wild sex resides. Both are very actively attached to the concept of ‘money’ and ‘lending’.
So, the banking gnomes want to have infinite wealth but no inflation. But they want their investments and valuable assets such as property, gold, stocks, etc. to go up and u p and up in value! So they feed inflation but are scared of making the money worthless. This usually ends with them making money worthless, of course. Over time, this dynamic always crushes the monetary systems. The floating fiat currency system launched by Nixon and Burns is now crashing and burning as all currencies strive to weaken themselves vis a vis against the US fiat dollar as the US madly prints money and lends like a fiend, to drop the value of the dollar. This, in turn, has flooded the planet with excess ‘money’ which is stored in many FOREX accounts which threaten to explode into activity as countries struggle to stop mass revolts due to commodity price inflation. Which is entirely caused by the gnomes, themselves.
The goddess of Wealth is various aspects of Medusa. People forget, Medusa was just one of three sisters. So, one is the Pre-history Medusa, one is Present Times Medusa and the eldest is the most dangerous, the Death Medusa.
This is the Death Medusa. The gnomes can’t help themselves. They want all the money. They have infinite appetites. They fear death but want to take all the world’s wealth with them like the earliest civilization’s leaders who wanted to hoard all the wealth inside of various graves. Graves that have been systematically looted over the last 10,000 years. If there is a grave to be raided or dug up, we are there with the backhoes! Ancient wealth items are exceedingly valuable!
The Goddesses of Infinity and Zero are twin sisters. One automatically morphs into the other. Infinity is nothingness. Where there is space and time, there is degrading of all systems, death and birth due to gravity and activity. With gravity compressing things or bringing things together, we have star formation, galaxies, planets rotating around stars and life on earth. And sex. These forces are embodied in our brains, instinctually operational at all times even though most of this is in the subconscious mind which we only access in dreams.
Gambling is all about getting access to credit. All gambling houses love to grant credit to people who sign over their property, their businesses, their children, whatever is put on the table so they can indulge in mindless addictions. The more a person loses at gambling, the more they desire credit to continue so they can eventually hit the jackpot or more likely, die of a heart attack at the table.
The world’s stock markets all began as open gambling houses. They still are but they were coated with a layer of legitimacy by governments regulating them but they are still quite nakedly, gambling houses. The commodity markets, on the other hand, were a combination of gambling on the future weather with farmers and the needs of suppliers for farm goods. This market is the main leading indicator of wild inflation in that it hammers consumers hugely and where it hurts the most: food and fuel. So, the U.S. plans to crack down on commodity traders; will it stick? | The Raw Story
In a measure decried by Wall Street and trading companies as a misguided political attempt to cap soaring oil and grain prices, the Commodity Futures Trading Commission is set to vote in favor of “position limits” that will cap the number of futures, swaps and options contracts any trader can hold…Over the weekend, France lost its battle to force mandatory curbs on energy and food commodities, and Britain’s Financial Services Authority — which overseas most of the major non-U.S. commodity exchanges — has maintained its opposition to mandated limits.
The City of London is all about evading controls. It has been since its inception long ago during the Middle Ages. The Crown gets its little snip from the deals and it is pretty much a game of evading civic authorities. The Mayor of London can’t tell the City, which is a few blocks in size, what to do about nearly anything. In NYC, on the other hand, the Wall Street Offshore Tax Haven gang took over the mayor’s office and as usual, the more power the gnomes have, the quicker and harder they crash.
This is due to themselves crashing everything. Like yesterday, when I spoke of the ‘drive as fast as possible in a monotonous circle until you crash’ Nascar race drivers, they go pedal to the metal no matter what.
As usual, gold is a commodity market played by the gnomes in about as ruthless a game as they dare so Gold Bullion Plunges, CFTC Votes on “Speculative Curb”, Asia “Could Be New Pool of Liquidity” for Gold Market | Gold News
Gold Bullion prices fell 1.4% in less than half an hour to $1638 per ounce Tuesday lunchtime in London – while stock markets also fell sharply – after investment bank Goldman Sachs announced a third quarter net loss of $393 million.
The loss – Goldman’s second ever as a listed company – represents 84 cents per share, compared to a Bloomberg analysts’ consensus forecast of 11 cents.
Some people like to think that Goldman Sachs and other gnome operations love to have depressions. They don’t, actually. They love the bubbly. They love lots of fizz. They grimly hang on and enjoy cheaper prices in depressions but they are not happy with these, they want infinity, not sloshing along picking up pennies in the gutter. Commodity markets are viewed as a desperate, last chance for money operation. This is due to it being stubbornly physical.
This is why the carbon CO2 trade business made them all hysterically happy. It was an invisible gas! And it was everywhere and nearly everything produces it! Whoopee! They even enthused that this could lead to infinite derivative deals. Then, it got too cold, too many people got too angry about high energy taxes and it has fizzled badly. So, back to buying gold and then trying to swindle someone down the line in desperate, dirty gold market deals.
Goldman Sachs couldn’t manipulate this market nearly as well as they do say, the derivatives market. They love derivatives, they hold their noses to do gold. And now, they are out of the gold since they have no profits to park there, temporarily. So gold drops like a rock. Oil, on the other hand, depends on wars. If we attack an oil producing nation like Iraq or Libya, the price of oil soars. Now that these wars are winding down, it is back to preventing Iran from selling oil. This pleases Saudi Arabia which is desperate for higher prices for oil. And it pleases the big gnomes playing the oil futures markets.
Alas, high oil prices=economic recession in the US. So, I expect this to worsen, not get better any time soon.
P.O. BOX 483
BERLIN, NY 12022
Make checks out to ‘Elaine Supkis’
Click on the Pegasus icon on the right sidebar to donate via Paypal.
16 responses to “Goldman Sachs Loses Money So Gold Prices Fall”
This is slightly off topic, but, here is a new development that ought to get your motor running :
Bloomberg has reported that Bank of America is trying to secretly transfer their potential $75 trillion derivatives exposure from their Merrill Lynch securities side of their ledger to the FDIC (taxpayer) insured deposits side of their ledger. The Federal Reserve appears to be all in favor while the FDIC is flipping out. Apparently, the transfer is illegal, but who knows what the Fed and US Government might do in our present Alice In Wonderland world.
Nothing is illegal anymore. If you can get away with it it is legal. Might makes right.
Congress and the Supreme Court are just tools of the elite. If they determine that the rest of America needs to be feed to the Derivatives Beast they will gladly throw the rest into the gaping maws. Congress certainly won’t stand in the way of the Banks if they get desperate enough again.
I apopogise for this,but the process that is being described above is one that has been played out countless times throughout human history,and is primordial/hardwired. The United States thus is being deconstructed,to be reconstructed into a new “rough beast” as the Roman Empire was deconstructed,and eventually became the Holy Roman Empire,the USSR
was Deconstructed,and has not yet morphed into a new Mass.
But I must say about the US(Exceptionalistan),a big SO WHAT? combined with a bigger YAWN,and cosmic INDIFFERENCE.
What’s New PussyCat?
Precious metal prices are manipulated more relentlessly than any other investment. There are all these leveraged “paper gold” issues that are traded like currencies in the FX market to determine the “price” of the stuff. Now you have the deflationists saying that it’s a poor investment, that it will only go lower, and the inflationists saying put your life savings into it and bury it in the back yard. …
I am inclined to think that both the inflationists and deflationists will be correct. In the end, you will be trading it for whatever else you want, at a ratio settled on between yourself and the other party, like everything else. Used cars, furniture, houses, horses, etc. all trade every day and not necessarily at a price set in New York or Chicago.
So the deflationists will be correct as the price of all these ephemeral virtual paper claims on the metals goes to zero, and the inflationists will be correct as the value of the actual metals goes to whatever you can trade it for.
Urban, i’m not sure your account considers the effects of hyperinflation through currency failure. Your scenario is one sided.
What defines an Anarchist anyway? I’ve always felt the label was never well defined. People tend to think civil chaos and burning cars when the term is mentioned. Whereas I’ve always viewed it as a state of mind, not tied to any particular ideology or philosophy. A sane anarchist is not anti-government or anti-socialist…. just anti-State and anti-tyranny. Here is a very good essay on the matter:
No, it’s quite both-sided.
The deflationists will be able to point to a pile of fancy documents purporting to confer rights to ounces of gold in, um, some warehouse or other, somewhere. The only gold in these documents will be in the printed scrollwork around the edges, if there are even printed documents at all. The deflationists will be correct in that their value is almost zero.
The inflationists, on the other hand, will be able to point to another pile of documents with fancy scrollwork. which also makes nice wallpaper. Anyone who actually possesses an ounce of gold will not part with it for such green documents, or will require bales and bales of them in exchange for that ounce.
So both groups can say “See? I told you so!”
gawd…………..Any advice for the little man [not the middle man] as the melt down happens??????
The inflationists will move to another currency, not all will fail.
Germany is the #2 sovereign wealth nation but NO CURRENCY, it is trapped in the euro. But China is the world’s #1 sovereign wealth nation so it will have a currency worth something in the end. The value of gold paper trades will vacillate between paper worth and worthless depending on circumstances whereas the gold, the metal, will have relative value no matter what.
The only problem with gold that is physical is simple to detect: Throughout history including the last 75 years in the US, gold is simply CONFISCATED if a currency collapses. This has happened over and over again in history which is why it is so easy to predict it happening in the future.
The problem of gold is that there is so damn little of it.
“Similarly, it is estimated that all the gold ever mined in the world (160,000 tonnes as of 2007), could be placed in a single cube roughly 60 ft. on a side, with a value of $3.68 trillion.”
Let all nations tie the value of their currencies to this magic/divine cube.
Let all nations divide this cube into a share that reflects the value of their share of paper money offered.
Let all nations divide it’s share of gold between their citiziens.
And there is absolutely nothing left apart from microscopic amounts.
Tying various papers to gold, or gold to various papers, is no more “money” than printing fiat money.
But it sure drives home the point that resources are finite. And why the governments start to confiscate it when desperate enough.
Governments confiscate land, too. Or anything else of value, when they get desperate.
So, invest my retirement funds in Lunar real estate ?
Or, as some folks advise, invest in friends / relationships / community.
I want to cancel my subscription wth Gold Sach
Pingback: Bloomberg Marvels: How Does Norway Keep Inflation 2.4%? | Culture of Life News
Yikes!…I was going to write that Nixon’s reneging of Breton Woods in 1973 that decoupled paper (fiat) money from historical real money (anchor-precious metals) would have consequences that are now being played out, but most here have beat me to it;>)…manipulation of precious metals is the Davinci code of to this financial/monetary manipulation….and total misallocation of world wide scarce resources. Love you like a sister Elaine;>)
My granddaddy warned me about all this. He was a Victorian gentleman born way back in 1885. He told me about the birth of the Federal Reserve.
He was very pissed about inflation in the 1950’s.