IMPLICATIONS
FOR THE ENVIRONMENT, WORLD PEACE, WORLD POVERTY AND THE HUMAN FUTURE
A BRIEF SUMMARY
Copyright Steven M. Greer,M.D. – March 2001
For most people, the question of whether or not we are alone in the universe is a mere philosophical musing — something of academic interest but of no practical importance. Even evidence that we are currently being visited by non-human advanced life forms seems to many to be an irrelevancy in a world of global warming, crushing poverty and the threat of war. In the face of real challenges to the long-term human future, the question of UFOs, extraterrestrials and secret government projects is a mere sideshow, right? Wrong — catastrophically wrong.
The evidence and testimony presented in the following pages establishes the following:
Ø That we are indeed being visited by advanced extraterrestrial civilizations and have been for some time;
Ø That this is the most classified, compartmented program within the US and many other countries;
Ø That those projects have, as warned in 1961 by President Eisenhower, escaped legal oversight and control in the US, the UK and elsewhere;
Ø That advanced spacecraft of extraterrestrial origin, called extraterrestrial vehicles (ETVs) by some intelligence agencies, have been downed, retrieved and studied since at least the 1940s and possibly as early as the 1930s;
Ø That significant technological breakthroughs in energy generation and propulsion have resulted from the study of these objects (and from related human innovations dating as far back as the time of Nikola Tesla) and that these technologies utilize a new physics not requiring the burning of fossil fuels or ionizing radiation to generate vast amounts of energy;
Ø That classified, above top- secret projects possess fully operational anti-gravity propulsion devices and new energy generation systems that, if declassified and put to peaceful uses, would empower a new human civilization without want, poverty or environmental damage.
Those who doubt these assertions should carefully read the testimony of dozens of military and government witnesses whose testimony clearly establishes these facts. Given the vast and profound implications of these statements, whether one accepts or seriously doubts these assertions, all must demand that Congressional hearings be convened to get to the truth of this matter. For nothing less than the human future hangs in the balance.
Implications for the Environment
We have identified insiders and scientists who can prove, in open Congressional hearings, that we do in fact possess classified energy generation and anti-gravity propulsion systems capable of completely and permanently replacing all forms of currently used energy generation and transportation systems. These devices access the ambient electromagnetic and so-called zero point energy state to produce vast amounts of energy without any pollution. Such systems essentially generate energy by tapping into the ever-present quantum vacuum energy state — the baseline energy from which all energy and matter is fluxing. All matter and energy is supported by this baseline energy state and it can be tapped through unique electromagnetic circuits and configurations to generate huge amounts of energy from space/time all around us. These are NOT perpetual motion machines nor do they violate the laws of thermodynamics — they merely tap an ambient energy field all around us to generate energy.
This means that such systems do not require fuel to burn or atoms to split or fuse. They do not require central power plants, transmission lines and the related multi-trillion dollar infrastructure required to electrify and power remote areas of India, China, Africa and Latin America. These systems are site-specific: they can be set up at any place and generate needed energy. Essentially, this constitutes the definitive solution to the vast majority of environmental problems facing our world.
The environmental benefits of such a discovery can hardly be overstated, but a brief list include:
Ø The elimination of oil, coal and gas as sources of energy generation, thus the elimination of air and water pollution related to the transport and use of these fuels. Oil spills, global warming, illnesses from air pollution, acid rain etc can and must be ended within 10-20 years;
Ø Resource depletion and geo-political tensions arising from competition for fossil fuel resources will end;
Ø Technologies already exist to scrub manufacturing effluent to zero or near zero emissions for both air and water-but they use a great deal of energy and thus are considered too costly to fully utilize. Moreover, since they are energy intensive, and our energy systems today create most of the air pollution in the world, a point of diminishing return for the environment is reached quickly. That equation is dramatically changed when industries are able to tap vast amounts of free energy (there is no fuel to pay for — only the device, which is no more costly than other generators) and those systems create no pollution.
Ø Energy-intensive recycling efforts will be able to reach full application since the energy needed to process solid waste will, again, be free and abundant.
Ø Agriculture, which is currently very energy dependent and polluting, can be transformed to use clean, non-polluting sources of energy.
Ø Desertification can be reversed and world agriculture empowered by utilizing desalinization plants, which are now very energy intensive and expensive, but will become cost-efficient once able to use these new, non-polluting energy systems.
Ø Air travel, trucking and inter-city transportation systems will be replaced with new energy and propulsion technologies (anti-gravity systems allow for silent above surface movement). No pollution will be generated and costs will decrease substantially since the energy expenses will be negligible. Additionally, mass transportation in urban areas can utilize these systems to provide silent, efficient intra-city movement.
Ø Noise pollution from jets, trucks and other modes of transportation will be eliminated by the use of these silent devices.
Ø Public utilities will not be needed since each home, office and factory will have a device to generate whatever energy is needed. This means ugly transmission lines that are subject to storm damage and power interruption will be a thing of the
past. Underground gas pipelines, which not infrequently rupture or leak and damage Earth and water resources, will not be needed at all.
Ø Nuclear power plants will be decommissioned and the technologies needed to clean such sites will be available. Classified technologies do exist to neutralize nuclear waste.
Utopia? No, because human society will always be imperfect — but perhaps not as dysfunctional as it is today. These technologies are real — I have seen them. Anti-gravity is a reality and so is free energy generation. This is not a fantasy or a hoax. Do not believe those who say that this is not possible: they are the intellectual descendants of those who said the Wright brothers would never fly.
Current human civilization has reached the point of being able to commit planeticide: the killing of an entire world. We can and we must do better. These technologies exist and every single person who is concerned about the environment and the human future should call for urgent hearings to allow these technologies to
be disclosed, declassified and safely applied.
Implications for Society and World Poverty
From the above, it is obvious that these technologies that are currently classified would enable human civilization to achieve sustainability. Of course, in the near term, we are talking about the greatest social, economic and technological revolution in human history — bar none. I will not minimize the world-encompassing changes that would inevitably attend such disclosures. Having dealt with this issue for much of my adult life, I am acutely aware of how immense these changes will be.
Aside from the singular realization that homo sapiens are not the only — or most advanced — creatures in the universe, this disclosure will cause humanity to be faced with the greatest risks and opportunities in known history.
If we do nothing, our civilization will collapse environmentally, economically, geo-politically and socially. In 10 – 20 years, fossil fuel and oil demand will outstrip supply significantly — and then it is the Mad Max scenario where everyone is warring over the last barrel of oil. It is likely that this geo-political and social collapse will precede any environmental catastrophe.
The disclosure of these new technologies will give us a new, sustainable civilization. World poverty will be eliminated within our life times. With the advent of these new energy and propulsion systems, no place on Earth will need to suffer from want. Even the deserts will bloom…
Once abundant and nearly free energy is available in impoverished areas for agriculture, transportation, construction, manufacturing and electrification, there is no limit to what humanity can achieve. It is ridiculous — obscene even — that mind-boggling poverty and famine exists in the world while we sit on classified technologies that could completely reverse this situation. So why not release these technologies? Because the social, economic and geo-political order of the world would be greatly altered.
Every deep insider with whom I have met has emphasized that this would be the greatest change in known human history. The matter is so highly classified not because it is so silly, but because its implications are so profound and far reaching. By nature, those who control such projects do not like change. And here we are talking about the biggest economic, technological, social and geo-political change in known human history. Hence, the status quo is maintained, even as our civilization hurtles towards oblivion.
But by this argument, we would have never had the industrial revolution and the Ludites would have reigned supreme to this day.
An international effort to minimize disruption to the economy and to ease the transition to this new social and economic reality will be needed. We can do this and we must. Special interests in certain oil, energy and economic sectors need to be reigned in and at the same time treated compassionately: Nobody likes to see their power and empire crumble. Nations very dependent on the sale of oil and gas will need help diversifying, stabilizing and transitioning to a new economic order.
The United States, Europe and Japan will need to adjust to a new geo-political reality as well: As currently poor but populous countries dramatically develop technologically and economically, they will demand — and will get — a meaningful seat at the international table. And this is as it should be. But the international community will need to put in place safeguards to prevent such potential geo-political rapprochement between the first and third world from devolving into bellicose and disruptive behavior on the part of the newly empowered.
The US in particular will need to lead through strength — but avoid the current trend towards domination. Leadership and domination are not the same, and the sooner we learn the difference the better off the world will be. There can be international leadership without domination and hegemony, and the US needs to realize these distinctions if it is to provide much-needed leadership on this issue.
These technologies, because they will decentralize power — literally and figuratively — will enable the billions living in misery and poverty to enter a world of new abundance. And with economic and technological development, education will rise and birth rates will fall. It is well known that as societies become more educated, prosperous and technologically advanced — and women take an increasingly equal role in society — the birth rate falls and population stabilizes. This is a good thing for world civilization and the future of humanity.
With each village cleanly electrified, agriculture empowered with clean and free energy and transportation costs lowered, poverty will dramatically fall in the world. If we act now, by 2030 we will be able to effectively eliminate all poverty in the world, as we know it today. We only need the courage to accept these changes and the wisdom to steer humanity safely and peacefully into a new time.
Implications for World Peace and Security
A few years ago I was discussing this subject with the former Chairman of the Senate Foreign Relations Committee, Senator Claiborne Pell. He explained to me that he had been in Congress since the 1950s but had never been briefed on this subject. I told him that the nature of these black projects has resulted in most of our leaders being left out of any decision making on this subject, and what a shame this is. I said, "Senator Pell, all that time you were Chairman of Foreign Relations, you were deprived of the opportunity to deal with the ultimate foreign relations challenge…" and I pointed to the stars above our heads. He said, " You know Dr. Greer, I am afraid that you are right…"
It is true that our great diplomats and wise elders, such as Senator Pell, President Jimmy Carter and other international leaders have been specifically and deliberately prevented from having access to or control over this subject. This is a direct threat to world peace. In the vacuum of secrecy, operations supervised by neither the people, the people’s representatives, the UN nor any other legitimate entity have taken actions that directly threaten world peace.
Testimony, corroborated by multiple military witnesses who do not know each other and who have had no opportunity for collusion, will show that the US and other countries have engaged these ETVs in armed attack, in some cases leading to the downing of these vehicles. As I said to Mrs. Boutros Ghali, wife of the then Secretary General of the UN, if there is even a 10% chance that this is true, then this constitutes the gravest threat to world peace in human history
Having personally interviewed numerous credible military and aerospace officials with direct knowledge of such actions, I am certain that we have done this. Why? Because these unknown vehicles have been in our airspace without our permission and because we wanted to acquire their technology. Nobody has asserted that there is an actual threat to humanity from these objects: Obviously, any civilization capable of routine interstellar travel could terminate our civilization in a nanosecond, if that was their intent. That we are still breathing the free air of Earth is abundant testimony to the non-hostile nature of these ET civilizations.
We have also been informed that the so-called Star Wars (or National Missile Defense System) effort has really been a cover for black project deployment of weapon systems to track, target and destroy ETVs as they approach Earth or enter Earth’s atmosphere. No less a figure than Wernher Von Braun warned on his death-bed of both the reality and the madness of such a scheme, apparently to no avail (see the Testimony of Carol Rosin, former spokesperson for Wernher Von Braun).
Well, unless we change directions we are likely to end up where we are going.
With the types of weapons currently in the covert arsenal — weapons more fearsome even than thermonuclear devices — there is no possibility of a survivable conflict. Yet in the darkness of secrecy, actions have been taken on behalf of every human that may endanger our future. Only a full, honest disclosure will correct this situation.
It is not possible for me to convey in words the urgency of this.
For 10 years I worked as an emergency doctor and saw how every possible object can be used as a weapon. Every technology, unless guided by wisdom and a desire for that good and peaceful future – the only future possible — will be used for conflict. Super-secret projects that answer to no legally constituted body- not the UN, not the US Congress, not the British Parliament — must not be allowed to continue to act in this way on behalf of humanity.
One of the greatest dangers of extreme secrecy is that it creates a hermetically sealed, closed system impervious to the free and open exchange of ideas. In such an environment, it is easy to see how grave mistakes can be made. For instance, the testimony here will show that these ETVs became very prominent after we developed the first nuclear weapons — and began to go into space. There were multiple events — corroborated here by numerous credible military officials — of these objects hovering over and even neutralizing ICBMs (Intercontinental Ballistic Missiles).
A closed, military view of this might be to take offense, engage in counter-measures and attempt to down such objects. In fact, this would be the normal response. But what if these ET civilizations were saying, "Please do not destroy your beautiful world — and know this: we will not let you go into space with such madness and threaten others…" An event showing concern and even a larger cosmic wisdom could be construed over and over again as an act of aggression. Such misunderstandings and myopia are the stuff wars are made of.
Whatever our perceptions of these visitors, there is no chance that misunderstandings can be resolved through violent engagement. To contemplate such madness is to contemplate the termination of human civilization.
It is time for our wise elders and our levelheaded diplomats, like Sen. Pell, to be put in charge of these weighty matters. To leave this in the hands of a clique of un-elected, self-appointed and unaccountable covert operations is the greatest threat to US national security and world security in history. Eisenhower was right, but nobody was listening.
In light of testimony showing that covert actions have been taken that involved violent engagement of these visitors, it is imperative that the international community in general and the US Congress and President in particular do the following:
Ø Convene hearings to assess the risks to national and international security posed by the current covert management of the subject;
Ø Enforce an immediate ban on weapons in space and specifically ban the targeting of any extraterrestrial objects since such actions are unwarranted and could endanger the whole of humanity;
Ø Develop a special diplomatic unit to interface with these extraterrestrial civilizations, foster communication and peaceful relations;
Ø Develop a suitably empowered and open international oversight group to manage human-extraterrestrial relations and ensure peaceful and mutually beneficial interactions;
Ø Support international institutions that can ensure the peaceful use of those new technologies related to advanced energy and propulsion systems (see below).
In addition to the above, a less obvious — but perhaps equally pressing — threat to world peace arises from the fact that the covert control of this subject has resulted in the world being deprived of the new energy and propulsion technologies discussed earlier.
World poverty and a widening gap between rich and poor are serious threats to world peace that would be corrected by the disclosure and peaceful application of these technologies (see above). The real threat of war over a shrinking supply of fossil fuels in the next 10-20 years further underscores the need for this disclosure.
What happens when the 4 billion people living in poverty want cars, electricity and other modern conveniences — all of which depend on fossil fuels? To any thinking person, it is obvious that we must transition quickly to the use of these now classified technologies — they are powerful solutions already sitting on a shelf.
Of course, a number of insiders have pointed out that these technologies are not your grandfather’s Oldsmobile: They are technological advances, like any other, that could be put to violent uses by terrorists, bellicose nations and madmen. But here we enter a catch 22: If these technologies are not forthcoming soon, we will face a certain meltdown in human civilization and the environment; if they are disclosed, immensely powerful new technologies will be out there for possible destructive uses.
In the near future, it is prudent to view humanity as likely to use any new technology violently. This means that international agencies must be created to ensure — and enforce — the exclusive peaceful use of such devices.
The technologies exist today to link every such device to a GPS (Global Positioning System) monitor that could disable or render useless any device tampered with or used for anything put peaceful power generation and propulsion. These technologies should be regulated and monitored. And the international community must mature to a level of competence to ensure their exclusive peaceful use.Any other use should be met with overwhelming resistance by every other nation on Earth.
Such a pact is the necessary next step. Maybe someday, humanity will live in peace without the need for such controls. But for now, the situation is like that of chained dogs — some strong leashes are warranted and are essential.
But such concerns cannot be a rationale for further delaying the disclosure of these technologies. We have the knowledge and means to ensure their safe and peaceful use — and these must be applied soon if we are to avoid further degradation of the environment and an escalation of world poverty and conflict.
In the final analysis, then, we are faced with a social and spiritual crisis that transcends any technological or scientific challenge. The technological solutions exit — but do we possess the will, wisdom and courage to apply them for the common good? The more one contemplates this matter the more it is obvious that we have one possible future: Peace. Peace on Earth and peace in space — a universal Peace, wisely enforced; for every other path leads to ruin
This then is the greatest challenge of the current era. Can our spiritual and social resources rise to this challenge? Nothing less than the destiny of the human race hangs in the balance.
Finance > GFC, Bilderburg,911, Black Projects, Conspiracy to Destroy wealth though the Monetary System and create one World Govt / Corporation.
Wednesday, August 25, 2010
Watch Greece For Results & Our Future
I spent near a decade in the deep south of Texas, it was hot and the Texans are great people. The time encompassed the Reagan years and I remember his speech to the nation on America becoming a “Service” economy. The concept smelled a little then I thought ; Service? Like are we not going to make anything anymore, just convert to this abstract of Information Tech and Banking.
Reagan campaigned on reducing the Deficit and keeping America strong, close the window of vulnerability (Code for more arms and his Star Wars). Down in Texas we were recovering from the Oil prices being so low and people were coming from the North to find work. One end was working the North was in recession.
By the time I was getting ready to leave the Housing and jobs situation were the only things going down. For Sales everywhere. The Savings & Loan crisis cost billions and Reagan had bankrupted the USSR and set America on the same path.
Returning to Australia I was very positive about Americans and the ethic that you could make it if you wanted to, however if you really messed up it was not a good place to be broke. Seems now Americans have no where to go , a great country and good people had been over decades of Financial tricks been conned into a rigged game, the turns of Recession & Boom had the same result, more of everything went to fewer people.
Some 10% of the population owns 90% of the country, that in turn has been put in a sovereign Mortgage to China and the international Corporations. 911 and the Patriot Act had turned the USA into a Prison / Military Corporate State. Some very smart people had managed a similar result in Europe and the United Kingdom.
Seems that the ‘Tinfoil Hats’ were not so crazy after all. (I was one of them) I saw conspiracys in a lot of things and it turned out there were. The Gangsters and the Shadow Governments had been behind the scenes all along contriving to bring the World to where it is today. Amazingly a large proportion of people still don’t want to believe it, 911 was a bunch of Arab Terrorists, Technology that might produce cars that could last 30 years and get 100 miles to a gallon of Gas (Or maby water) had been suppressed.
Underground bases, Trillions disappearing into Black operations / Projects that even Presidents could not be privy to. The aim being the establishment of a New World Order or Global Government. This we have to a certain extent, the last few acts have yet to be accomplished. How many good people will die , how many soldiers sent to un_ winnable wars. Wars started under false flag operations, lies about weapons of Mass Destruction and fighting Terror at the cost of real Terror at home. The terror of being enslaved, Sefdom in a Facist Spy State of Orwellian Nightmare Proportions.
Interesting as 20 million Pakistani’s face starvation and disease, we have our media focused on the days trades at Wall street, who or where the next Sovereign State to collapse?
Back step to the Greek crisis, and have a look at Greece today, unemployment rising rapidly, business grinding to a halt, state revenues decline with the Tax base. The Austerity measures are taking there toll. As more countries adopt them the result will be the same. It’s a no win situation, the Austerity needed to pay the loans destroys the capacity of the Nation to pay them. A catch 22. Even Greek Islands are up for sale, a nice place for the Globalists to retreat when the mobs are running rampant in the cities of the Western World.
The scenario is already being played out now and when the final card falls it will be a chain reaction. I have no idea why anyone in there right mind would buy a US Treasury Bond or even a UK one. These countries are Bankrupt, triple D rated Junk Bonds returning .0x%. The Fed is buying a lot of them now as the Chinese slide the mat out from beneath, see how far they can pull before everyone heads for the door and the money owed is worthless.
The only questions left are timing, it won’t do the average Analyst any good to study charts or Hindenburg Omens , none of these technical indicators matter. Reason: The game is rigged, the “Great Game” as it was once called where Banks and Black agency’s started wars and profited from both sides, WW1 & WW2 were both being serviced by Industrialists from both sides, until the designated winner was allowed to finish the other off and the loser turned to rubble. More opportunity for the financial s to make money rebuilding the world they had smashed.
So here at 2010 we wonder, double Dip? Only in ice cream I am afraid, the recovery never started, the Green Shoots were just Mold. Personally I am hoping we are given a little more time by our new masters before the great crash of 201? My less optimistic thinking is late November 2010 My more exuberant side is looking at 2012 maybe even a bit further. Thing is; the Gangsters are not completely unified themselves and being prone to greed and a lust for power one element is probably going to be tempted to speed the timetable for their own gain.
Hence sooner rather than later. I won’t bore you further, no one reads this Blog anyway so my one suggestion is watch Greece, there you have the future unfolding. When its apparent the Greek people are ready to go Banana’s and buckle under the weight of ‘Austerity’ (Orwellian for Poverty) the Globalists will have to do something. Order will be restored. A New World Order.
Reagan campaigned on reducing the Deficit and keeping America strong, close the window of vulnerability (Code for more arms and his Star Wars). Down in Texas we were recovering from the Oil prices being so low and people were coming from the North to find work. One end was working the North was in recession.
By the time I was getting ready to leave the Housing and jobs situation were the only things going down. For Sales everywhere. The Savings & Loan crisis cost billions and Reagan had bankrupted the USSR and set America on the same path.
Returning to Australia I was very positive about Americans and the ethic that you could make it if you wanted to, however if you really messed up it was not a good place to be broke. Seems now Americans have no where to go , a great country and good people had been over decades of Financial tricks been conned into a rigged game, the turns of Recession & Boom had the same result, more of everything went to fewer people.
Some 10% of the population owns 90% of the country, that in turn has been put in a sovereign Mortgage to China and the international Corporations. 911 and the Patriot Act had turned the USA into a Prison / Military Corporate State. Some very smart people had managed a similar result in Europe and the United Kingdom.
Seems that the ‘Tinfoil Hats’ were not so crazy after all. (I was one of them) I saw conspiracys in a lot of things and it turned out there were. The Gangsters and the Shadow Governments had been behind the scenes all along contriving to bring the World to where it is today. Amazingly a large proportion of people still don’t want to believe it, 911 was a bunch of Arab Terrorists, Technology that might produce cars that could last 30 years and get 100 miles to a gallon of Gas (Or maby water) had been suppressed.
Underground bases, Trillions disappearing into Black operations / Projects that even Presidents could not be privy to. The aim being the establishment of a New World Order or Global Government. This we have to a certain extent, the last few acts have yet to be accomplished. How many good people will die , how many soldiers sent to un_ winnable wars. Wars started under false flag operations, lies about weapons of Mass Destruction and fighting Terror at the cost of real Terror at home. The terror of being enslaved, Sefdom in a Facist Spy State of Orwellian Nightmare Proportions.
Interesting as 20 million Pakistani’s face starvation and disease, we have our media focused on the days trades at Wall street, who or where the next Sovereign State to collapse?
Back step to the Greek crisis, and have a look at Greece today, unemployment rising rapidly, business grinding to a halt, state revenues decline with the Tax base. The Austerity measures are taking there toll. As more countries adopt them the result will be the same. It’s a no win situation, the Austerity needed to pay the loans destroys the capacity of the Nation to pay them. A catch 22. Even Greek Islands are up for sale, a nice place for the Globalists to retreat when the mobs are running rampant in the cities of the Western World.
The scenario is already being played out now and when the final card falls it will be a chain reaction. I have no idea why anyone in there right mind would buy a US Treasury Bond or even a UK one. These countries are Bankrupt, triple D rated Junk Bonds returning .0x%. The Fed is buying a lot of them now as the Chinese slide the mat out from beneath, see how far they can pull before everyone heads for the door and the money owed is worthless.
The only questions left are timing, it won’t do the average Analyst any good to study charts or Hindenburg Omens , none of these technical indicators matter. Reason: The game is rigged, the “Great Game” as it was once called where Banks and Black agency’s started wars and profited from both sides, WW1 & WW2 were both being serviced by Industrialists from both sides, until the designated winner was allowed to finish the other off and the loser turned to rubble. More opportunity for the financial s to make money rebuilding the world they had smashed.
So here at 2010 we wonder, double Dip? Only in ice cream I am afraid, the recovery never started, the Green Shoots were just Mold. Personally I am hoping we are given a little more time by our new masters before the great crash of 201? My less optimistic thinking is late November 2010 My more exuberant side is looking at 2012 maybe even a bit further. Thing is; the Gangsters are not completely unified themselves and being prone to greed and a lust for power one element is probably going to be tempted to speed the timetable for their own gain.
Hence sooner rather than later. I won’t bore you further, no one reads this Blog anyway so my one suggestion is watch Greece, there you have the future unfolding. When its apparent the Greek people are ready to go Banana’s and buckle under the weight of ‘Austerity’ (Orwellian for Poverty) the Globalists will have to do something. Order will be restored. A New World Order.
Tuesday, August 10, 2010
The New Philosophers Stone, Turning Paper into Gold & Power.
The New Philosophers Stone, Turning Paper into Gold & Power.
Some of the big players have been ‘Shorting’ the Gold & Silver markets for possibly 40 years, keeping the price low and in the minds of many, converting these metals from a store of wealth, to a, ”Barbarous Relic”.
1971 Nixon removed the USA from the Gold standard and from that point on; the American economy has run on a debt fueled cycle of booms and busts. Each cycle allowing the privileged insiders (Central Banks, Corporate Banks etc) to clean the plate of the average Joe’s Buy & Hold’ Pension account or their attempts to make money from the markets not knowing the game has been rigged from the start.
Each bust followed by more debt to blow another bubble. None of this would have been able to occur if Governments had been kept to the Gold standard, hence the first motive for the Manipulation of the 2 metals we (the few) associate with real Money. Fiat money has allowed the USA to be the worst offender, being the Global base currency.
The US Dollar has had the most to loose from a free Gold & Silver market. Hence in the past decade the need to maintain the massive short positions companies like JP Morgan have utilized to stomp down the Metals natural, market propensity to appreciate as paper currency depreciated.
Enter the GFC, we saw new Orwelian exercises in supporting Bankrupt Institutions, “Quantative Easing” “Economic Stimulus Spending”. Euphemisms for printing Money in amounts inconceivable 30 years ago. We have yet to see the ultimate effect. Institutions were bailed out, corporations put a Gun to the Congressional head. Marshal Law, Global Collapse of Banking. Congress, The EU & United Kingdom took Private Debt and gave it to the Taxpayers futures.
The Shadow Banks and Shadow Power Elites have never considered Gold or even Silver to be a “Barbarous Relic”, just a nuisance that had to be controlled. As the next round of QE enters the Veins of the US economy, a brief respite will be bought before the same fundamental problems surface and the result of the Trillions of created Dollars turns the thinking investors mind to the probability that America and several other nations are in so much debt it can never be repaid.
When the first person / nation decides to dump these worthless bits of paper before everybody else gets the same idea; the rush will have started, the Currency Crisis of 201? Will have begun. All that will have real value will be tangible assets, Soybeans, Coffee, Oil, Gold and Silver. To enable any form of trade to proceed the seller will want security.
Until the world comes up with that , a new currency backed by tangible goods; global trade will stop. Enter a new era call it Hyper Inflation, or Debt Deflation, the defining characteristic of this time will be the end of Fiat Money. The worlds Banking System implodes.
For a time No one will know the value of anything except, that one primary universally recognized substance; Gold & to a greater degree Silver as it will be in very short supply as it will be one of the first Metals to become ‘extinct’. There is little above ground and less, year by year below it.
Rich & Powerful people like to remain Rich & Powerful; their assets will not be stored in vaults full of worthless currencies. The Shadow Bankers and the ‘Power Elite’ call them what you like. They will be the first to know when the Sh*t is going to hit the Fan. In probability they will probably push the first Domino, nobody likes to be caught by surprise. Hence the best way to predict a coming ‘Trend’ (Disaster) is to precipitate it yourself.
2012 is the popular next “Date of Consequence”, the Mayan Calendar and all the predictions that go with it. If there is truth to it or not , the fact remains millions of people expect ‘something’ to happen and I believe the real World Government will not disappoint. People will be very susceptible to something that appears to be real change, hope for a better future.
Obama followed Bush, Bush we put the madness down to a weak & double digit IQ. Obama kicked the people in the Gut, nothing worse than having your dreams smashed in front of you. At least Bush didn’t inspire expectation, Obama and the “Yes We Can” will be remembered as the shyster of hope. Like Hitler; an Orator, a man of the time a new JFK. Instead he surrounded himself with the Banksters and Corporate Mob. The way to destroy hope is to take it to a new high; then push it off a cliff.
There is not enough Gold and especially Silver to serve the needs of the 1% of 1% that now own almost everything without a Chinese Stamp on it. Every major Western Government is now a Corporate Fascist State, ID Cards, CCD cameras and Microphones, a Trillion Dollar Spy system that sifts through every call, E Mail or Tweet. While we were not watching freedom was gradually, quietly, brilliantly obliterated. Go to your next Election and who will it be ? Blue or Red ? Liberal or Labor ? Tell me the difference please.
This essay is about the Gold & Silver side of the run for security that is coming soon, The Short positions will be slowly unwound, and those that aren’t will probably be owned (passed along) to a convenient corporation that will simply bankrupt its self. In the meantime the insiders will have been buying Gold & Silver over the past years; stockpiling it, Gordon Brown helped the cause selling Kilotons of Britons Gold, then we had 911, all the Gold stored under building 4, were did it go? All the Unallocated ETF’s how much is there? Where is it whilst It Vaulted? It has been conveniently undervalued, for the decades this agenda has played out. These people are not fools; they know Gold & Silver, Platinum & Rhodium, Palladium and Uranium are convenient stores of wealth. Essential to whoever takes the controls of a Global Economy hitting the skids. Whoever puts out the first Gold / PM Backed currency will rule the world.
We the people have had 40 years of essentially no real growth in assets, 1 person could support a family, once upon a time. Now two people can barley keep their heads above water and 20 Million Americans are not.
The time we have left is shorter than any one thinks, remember it’s the first to leave the room that wins the game while others get trampled. The Powers That Be (TPTB) cannot afford to be caught ‘short’ as time goes on they will get very nervous and somebody might try a grab for the prize.
Here is where the part of the agenda to accumulate vast amounts of Bullion at bargain prices can work for you, buy now while few are talking about it, Silver is almost unknown as a commodity to the average investor. One rule is to TAKE PHYSICAL DELIVERY. The Gold and Silver ETF’s, these funds (If you read the fine print) do not promise real Bullion delivery should you hold ”Unallocated” accounts, you as a holder of a piece of paper; will collect in exchange another piece of paper. Paid to you during the up turn of Hyperinflation, the cash will be essentially worthless.
The ETF is brilliant in its criminal simplicity; you provide the cash whilst they use your money to purchase Bullion and the using a Fractional Reserve leverage it to 12, 50, 100:1 ratios. Imagine 50 people all thinking they own 100 ounces of the same Bullion Bar. Even if you have an allocated account with some of these ETF’s you may never see the Gold, terrible things happen in crisis situations, the Sub Holder of the Sub Holder of the Vaulting company happens to be a crook and cannot be located and neither can your Bullion.
Its all in the fine print, you will be paid but it will be in American Dollars and I suggest by the time you wake up to the nature of the Fraud being perpetrated; all you will have to show for it is a handful of $10,000,000 Dollar notes to buy lunch at Mac Donald’s after you finish your shift making Fries.
The above is not Investment advice, I am not an Economist, it is an essay exploring ideas. No liability taken if you act upon material printed above.
A Quote from the Daily Reckoning…………..
“Just remember that ETFs are ultimately, like a complicated mortgage derivative, subject to counter-party risk. If the day comes when trust evaporates from the system, value will evaporate from the ETFs. If you want to play gold’s short-term ups and downs, the ETFs are an ideal instrument. Otherwise, stay away.”
Addison Wiggin
for The Daily Reckoning
Some of the big players have been ‘Shorting’ the Gold & Silver markets for possibly 40 years, keeping the price low and in the minds of many, converting these metals from a store of wealth, to a, ”Barbarous Relic”.
1971 Nixon removed the USA from the Gold standard and from that point on; the American economy has run on a debt fueled cycle of booms and busts. Each cycle allowing the privileged insiders (Central Banks, Corporate Banks etc) to clean the plate of the average Joe’s Buy & Hold’ Pension account or their attempts to make money from the markets not knowing the game has been rigged from the start.
Each bust followed by more debt to blow another bubble. None of this would have been able to occur if Governments had been kept to the Gold standard, hence the first motive for the Manipulation of the 2 metals we (the few) associate with real Money. Fiat money has allowed the USA to be the worst offender, being the Global base currency.
The US Dollar has had the most to loose from a free Gold & Silver market. Hence in the past decade the need to maintain the massive short positions companies like JP Morgan have utilized to stomp down the Metals natural, market propensity to appreciate as paper currency depreciated.
Enter the GFC, we saw new Orwelian exercises in supporting Bankrupt Institutions, “Quantative Easing” “Economic Stimulus Spending”. Euphemisms for printing Money in amounts inconceivable 30 years ago. We have yet to see the ultimate effect. Institutions were bailed out, corporations put a Gun to the Congressional head. Marshal Law, Global Collapse of Banking. Congress, The EU & United Kingdom took Private Debt and gave it to the Taxpayers futures.
The Shadow Banks and Shadow Power Elites have never considered Gold or even Silver to be a “Barbarous Relic”, just a nuisance that had to be controlled. As the next round of QE enters the Veins of the US economy, a brief respite will be bought before the same fundamental problems surface and the result of the Trillions of created Dollars turns the thinking investors mind to the probability that America and several other nations are in so much debt it can never be repaid.
When the first person / nation decides to dump these worthless bits of paper before everybody else gets the same idea; the rush will have started, the Currency Crisis of 201? Will have begun. All that will have real value will be tangible assets, Soybeans, Coffee, Oil, Gold and Silver. To enable any form of trade to proceed the seller will want security.
Until the world comes up with that , a new currency backed by tangible goods; global trade will stop. Enter a new era call it Hyper Inflation, or Debt Deflation, the defining characteristic of this time will be the end of Fiat Money. The worlds Banking System implodes.
For a time No one will know the value of anything except, that one primary universally recognized substance; Gold & to a greater degree Silver as it will be in very short supply as it will be one of the first Metals to become ‘extinct’. There is little above ground and less, year by year below it.
Rich & Powerful people like to remain Rich & Powerful; their assets will not be stored in vaults full of worthless currencies. The Shadow Bankers and the ‘Power Elite’ call them what you like. They will be the first to know when the Sh*t is going to hit the Fan. In probability they will probably push the first Domino, nobody likes to be caught by surprise. Hence the best way to predict a coming ‘Trend’ (Disaster) is to precipitate it yourself.
2012 is the popular next “Date of Consequence”, the Mayan Calendar and all the predictions that go with it. If there is truth to it or not , the fact remains millions of people expect ‘something’ to happen and I believe the real World Government will not disappoint. People will be very susceptible to something that appears to be real change, hope for a better future.
Obama followed Bush, Bush we put the madness down to a weak & double digit IQ. Obama kicked the people in the Gut, nothing worse than having your dreams smashed in front of you. At least Bush didn’t inspire expectation, Obama and the “Yes We Can” will be remembered as the shyster of hope. Like Hitler; an Orator, a man of the time a new JFK. Instead he surrounded himself with the Banksters and Corporate Mob. The way to destroy hope is to take it to a new high; then push it off a cliff.
There is not enough Gold and especially Silver to serve the needs of the 1% of 1% that now own almost everything without a Chinese Stamp on it. Every major Western Government is now a Corporate Fascist State, ID Cards, CCD cameras and Microphones, a Trillion Dollar Spy system that sifts through every call, E Mail or Tweet. While we were not watching freedom was gradually, quietly, brilliantly obliterated. Go to your next Election and who will it be ? Blue or Red ? Liberal or Labor ? Tell me the difference please.
This essay is about the Gold & Silver side of the run for security that is coming soon, The Short positions will be slowly unwound, and those that aren’t will probably be owned (passed along) to a convenient corporation that will simply bankrupt its self. In the meantime the insiders will have been buying Gold & Silver over the past years; stockpiling it, Gordon Brown helped the cause selling Kilotons of Britons Gold, then we had 911, all the Gold stored under building 4, were did it go? All the Unallocated ETF’s how much is there? Where is it whilst It Vaulted? It has been conveniently undervalued, for the decades this agenda has played out. These people are not fools; they know Gold & Silver, Platinum & Rhodium, Palladium and Uranium are convenient stores of wealth. Essential to whoever takes the controls of a Global Economy hitting the skids. Whoever puts out the first Gold / PM Backed currency will rule the world.
We the people have had 40 years of essentially no real growth in assets, 1 person could support a family, once upon a time. Now two people can barley keep their heads above water and 20 Million Americans are not.
The time we have left is shorter than any one thinks, remember it’s the first to leave the room that wins the game while others get trampled. The Powers That Be (TPTB) cannot afford to be caught ‘short’ as time goes on they will get very nervous and somebody might try a grab for the prize.
Here is where the part of the agenda to accumulate vast amounts of Bullion at bargain prices can work for you, buy now while few are talking about it, Silver is almost unknown as a commodity to the average investor. One rule is to TAKE PHYSICAL DELIVERY. The Gold and Silver ETF’s, these funds (If you read the fine print) do not promise real Bullion delivery should you hold ”Unallocated” accounts, you as a holder of a piece of paper; will collect in exchange another piece of paper. Paid to you during the up turn of Hyperinflation, the cash will be essentially worthless.
The ETF is brilliant in its criminal simplicity; you provide the cash whilst they use your money to purchase Bullion and the using a Fractional Reserve leverage it to 12, 50, 100:1 ratios. Imagine 50 people all thinking they own 100 ounces of the same Bullion Bar. Even if you have an allocated account with some of these ETF’s you may never see the Gold, terrible things happen in crisis situations, the Sub Holder of the Sub Holder of the Vaulting company happens to be a crook and cannot be located and neither can your Bullion.
Its all in the fine print, you will be paid but it will be in American Dollars and I suggest by the time you wake up to the nature of the Fraud being perpetrated; all you will have to show for it is a handful of $10,000,000 Dollar notes to buy lunch at Mac Donald’s after you finish your shift making Fries.
The above is not Investment advice, I am not an Economist, it is an essay exploring ideas. No liability taken if you act upon material printed above.
A Quote from the Daily Reckoning…………..
“Just remember that ETFs are ultimately, like a complicated mortgage derivative, subject to counter-party risk. If the day comes when trust evaporates from the system, value will evaporate from the ETFs. If you want to play gold’s short-term ups and downs, the ETFs are an ideal instrument. Otherwise, stay away.”
Addison Wiggin
for The Daily Reckoning
Tuesday, July 13, 2010
A Black Swan in more ways than One. The Gulf Mega Disaster
A Black Swan in more ways than One.
BP, the Multinational Global Giant has already lost its AAA rating. Fitch dropped BP’s credit rating an unprecedented 6 notches on June 15th from AA to BBB which followed June 3rd's AA+ to AA cut.
If Lehman Brothers was considered to be the trigger that activated the GFC then consider the implications of a Company the size of many small Countries in its Gross Earnings; and overall effect that a Bankruptcy or Multi Billion Dollar Litigation that will probably result from the disaster in the Gulf of Mexico. It would serve Investors well to do some research on the Economic implications of the disaster as well as the outlook from here on as to the damages already inflicted and the potential for these damages to multiply by factors of 10.
The Deep Sea Drilling represented the cutting edge of technology, during the construction phase problems never before encountered were overcome and the achievement of tapping what might be one of the Worlds largest Oil Deposits, would have made BP the wealthiest Oil Company on the Planet. Unfortunately this outcome did not occur. Workers from the Rig have been quoted as saying the project had problems from the beginning to the moment of disaster. Shortcuts were taken and a lot of vital information has been kept from the public.
What BP achieved was to drill down about 5 Miles into the Earths Crust, under thousands of feet of Ocean. When the Drill finally penetrated the cavity containing the Oil the pressures they encountered were on the order of 60,000 PSI added to that the pressure of the water above another 22,000 PSI for a Total of 70 to 80 Thousand PSI. (A Car Tire has 30 PSI, a Gas Bottle about 100 PSI Max. Hence the difficulties in capping the Well. Imagine trying to push Drilling Mud or Cement down against these pressures pushing back.
Hence all efforts to Cap it have failed, the best they can do is put a “Funnel” over the top and pump as much as you can into a surface ship. Judging by the numbers of Tankers they have not been overly successful even in this. Images of Crack and Fissures breaking open in places away from the Drill Head have been seen. When BP broke into that cavity it landed on a new Planet, a place of impossible pressures, Temperatures and Chemistry.
Soundings have detected a 20 Mile wide ‘Dome’ tens of feet high forming around the Drill Head. This is a giant compressed (80,000 PSI) bubble of Gas and other muck. A very real fear of this bubble reaching a point of bursting and releasing a cloud of Toxic Gas across the lower SE United States. Rainfall containing Toxins from the Oil and from the Dispersant “Correctcit” (Spelled wrong …Corrects it.) A great label for a very toxic substance, apart from Benzene, Hydrogen Sulfide and a dozen others. A Hurricane in the Gulf this year that will cross the Gulf , pick up the Ocean and dump it across the Coastal Cities would be the equivalent of a Chemical Warfare attack on the USA. The chance of a Hurricane of Force 3 to 5 hitting somewhere this season is 100% or as close as you can get. That’s probably one of the few certainties we can be sure of.
This entire event from start till present has been a ‘Whitewash’ / Suppression / Downplay / Spin of Media and Govt. Apart from telling the World the truth (That there is a probability of not being able to Cap the well, even using Nukes is a consideration to ‘Pinch Off’ the well.) We have an Event in motion that threatens the Planet. Its that serious.
Investors should start thinking in terms of BP’s Derivative Exposure and the Counter Parties who will be left hold the Bankrupt Bag, It will cost Hundreds of Billions of Dollars to clean this up, the area (Thousands of miles of coast, fishing, Tourism, the living space of Millions of people. ) People will soon come to their own correct assumption that this is an Oil Chernobyl, in fact Chernobyl would be an easier fix.
Comments from Moody’s:
“In the event of BP’s restructuring or bankruptcy, CSO transactions referencing BP or its affected subsidiaries may experience what is called a “credit event.” If the credit event occurs, the CSO transactions will have to meet their payment obligations to the protection buyers, which will result in the loss of subordination to the rated CSO tranches. In cases where the subordination is no longer available, CSO investors will incur the loss.
….
We reviewed our entire universe of outstanding CSOs and determined that exposure to BP and its rated subsidiaries appears in 117 (excluding CSOs backed by CSOs) transactions, which represents approximately 18% of global Moody’s-rated CSOs. Exposure ranged from 0.26% to 2% of the respective reference portfolios. The transaction with the largest exposure to BP and its subsidiaries is Arosa Funding Limited – Series 2005-5
The other four companies and their subsidiaries that were involved in the Gulf of Mexico incident, which are Halliburton, Anadarko Petroleum, Transocean Inc., and Cameron International. Halliburton appears in 43 CSOs, Anadarko Petroleum appears in 28 CSOs, Transocean Inc. appears in 79 CSOs, and Cameron International appears in 6 CSOs.”
“A study by Monody’s outlines that a BP bankruptcy would impair 117 Collateralized Synthetic Obligations (CSOs), which would lead to pervasive losses by a broad range of holders. The 117 effected is a startling 18% of the total CSOs outstanding, which is an indication of the scope and impact of BP financing globally. For those that remember the 2008 financial debacle, you will recall its epicenter was the collapse of Collateralized Debt Obligations (CDO) associated with mortgages and Credit Default Swaps (CDS) of financial companies impacted. CSOs are even more leveraged and toxic.”
Fitch dropped BP’s credit rating 6 notches on June 15th from AA to BBB which followed June 3rd's AA+ to AA cut.
“On June 25th BP’s Credit Default Swaps shot up 44 to 580 on the 5 years CDS. This meant it costs $580,000 per year to ensure $10 million in BP bonds over a 5 year contract period. Anything approaching 300 is considered serious risk.”
Political implications parallel the Financial and Environmental, anti British feeling will force Politicos to “Come down Hard” the usual guff, however they Buck doesn’t just stop at the White House it crosses the Ocean to the UK. America cannot afford a Trillion Dollar disaster. That’s what this will cost, count in Trillions not Billions. The cost in lives, displaced people and destruction to the Eco System is on a scale Humanity has never encountered in its recorded history. This ‘News Item’ should be a front page everyday, it seems silence is the only thing enveloping this ‘Spill’.
By the end of October the Gravity of this ‘Spill’ will be obvious to all. Prior to that Investors with any exposure to BP, its Co-Defendants and any Company with exposure to a crippled BP need to get out now before the obvious becomes obvious.
BP, the Multinational Global Giant has already lost its AAA rating. Fitch dropped BP’s credit rating an unprecedented 6 notches on June 15th from AA to BBB which followed June 3rd's AA+ to AA cut.
If Lehman Brothers was considered to be the trigger that activated the GFC then consider the implications of a Company the size of many small Countries in its Gross Earnings; and overall effect that a Bankruptcy or Multi Billion Dollar Litigation that will probably result from the disaster in the Gulf of Mexico. It would serve Investors well to do some research on the Economic implications of the disaster as well as the outlook from here on as to the damages already inflicted and the potential for these damages to multiply by factors of 10.
The Deep Sea Drilling represented the cutting edge of technology, during the construction phase problems never before encountered were overcome and the achievement of tapping what might be one of the Worlds largest Oil Deposits, would have made BP the wealthiest Oil Company on the Planet. Unfortunately this outcome did not occur. Workers from the Rig have been quoted as saying the project had problems from the beginning to the moment of disaster. Shortcuts were taken and a lot of vital information has been kept from the public.
What BP achieved was to drill down about 5 Miles into the Earths Crust, under thousands of feet of Ocean. When the Drill finally penetrated the cavity containing the Oil the pressures they encountered were on the order of 60,000 PSI added to that the pressure of the water above another 22,000 PSI for a Total of 70 to 80 Thousand PSI. (A Car Tire has 30 PSI, a Gas Bottle about 100 PSI Max. Hence the difficulties in capping the Well. Imagine trying to push Drilling Mud or Cement down against these pressures pushing back.
Hence all efforts to Cap it have failed, the best they can do is put a “Funnel” over the top and pump as much as you can into a surface ship. Judging by the numbers of Tankers they have not been overly successful even in this. Images of Crack and Fissures breaking open in places away from the Drill Head have been seen. When BP broke into that cavity it landed on a new Planet, a place of impossible pressures, Temperatures and Chemistry.
Soundings have detected a 20 Mile wide ‘Dome’ tens of feet high forming around the Drill Head. This is a giant compressed (80,000 PSI) bubble of Gas and other muck. A very real fear of this bubble reaching a point of bursting and releasing a cloud of Toxic Gas across the lower SE United States. Rainfall containing Toxins from the Oil and from the Dispersant “Correctcit” (Spelled wrong …Corrects it.) A great label for a very toxic substance, apart from Benzene, Hydrogen Sulfide and a dozen others. A Hurricane in the Gulf this year that will cross the Gulf , pick up the Ocean and dump it across the Coastal Cities would be the equivalent of a Chemical Warfare attack on the USA. The chance of a Hurricane of Force 3 to 5 hitting somewhere this season is 100% or as close as you can get. That’s probably one of the few certainties we can be sure of.
This entire event from start till present has been a ‘Whitewash’ / Suppression / Downplay / Spin of Media and Govt. Apart from telling the World the truth (That there is a probability of not being able to Cap the well, even using Nukes is a consideration to ‘Pinch Off’ the well.) We have an Event in motion that threatens the Planet. Its that serious.
Investors should start thinking in terms of BP’s Derivative Exposure and the Counter Parties who will be left hold the Bankrupt Bag, It will cost Hundreds of Billions of Dollars to clean this up, the area (Thousands of miles of coast, fishing, Tourism, the living space of Millions of people. ) People will soon come to their own correct assumption that this is an Oil Chernobyl, in fact Chernobyl would be an easier fix.
Comments from Moody’s:
“In the event of BP’s restructuring or bankruptcy, CSO transactions referencing BP or its affected subsidiaries may experience what is called a “credit event.” If the credit event occurs, the CSO transactions will have to meet their payment obligations to the protection buyers, which will result in the loss of subordination to the rated CSO tranches. In cases where the subordination is no longer available, CSO investors will incur the loss.
….
We reviewed our entire universe of outstanding CSOs and determined that exposure to BP and its rated subsidiaries appears in 117 (excluding CSOs backed by CSOs) transactions, which represents approximately 18% of global Moody’s-rated CSOs. Exposure ranged from 0.26% to 2% of the respective reference portfolios. The transaction with the largest exposure to BP and its subsidiaries is Arosa Funding Limited – Series 2005-5
The other four companies and their subsidiaries that were involved in the Gulf of Mexico incident, which are Halliburton, Anadarko Petroleum, Transocean Inc., and Cameron International. Halliburton appears in 43 CSOs, Anadarko Petroleum appears in 28 CSOs, Transocean Inc. appears in 79 CSOs, and Cameron International appears in 6 CSOs.”
“A study by Monody’s outlines that a BP bankruptcy would impair 117 Collateralized Synthetic Obligations (CSOs), which would lead to pervasive losses by a broad range of holders. The 117 effected is a startling 18% of the total CSOs outstanding, which is an indication of the scope and impact of BP financing globally. For those that remember the 2008 financial debacle, you will recall its epicenter was the collapse of Collateralized Debt Obligations (CDO) associated with mortgages and Credit Default Swaps (CDS) of financial companies impacted. CSOs are even more leveraged and toxic.”
Fitch dropped BP’s credit rating 6 notches on June 15th from AA to BBB which followed June 3rd's AA+ to AA cut.
“On June 25th BP’s Credit Default Swaps shot up 44 to 580 on the 5 years CDS. This meant it costs $580,000 per year to ensure $10 million in BP bonds over a 5 year contract period. Anything approaching 300 is considered serious risk.”
Political implications parallel the Financial and Environmental, anti British feeling will force Politicos to “Come down Hard” the usual guff, however they Buck doesn’t just stop at the White House it crosses the Ocean to the UK. America cannot afford a Trillion Dollar disaster. That’s what this will cost, count in Trillions not Billions. The cost in lives, displaced people and destruction to the Eco System is on a scale Humanity has never encountered in its recorded history. This ‘News Item’ should be a front page everyday, it seems silence is the only thing enveloping this ‘Spill’.
By the end of October the Gravity of this ‘Spill’ will be obvious to all. Prior to that Investors with any exposure to BP, its Co-Defendants and any Company with exposure to a crippled BP need to get out now before the obvious becomes obvious.
Thursday, July 8, 2010
Silver : The Quiet Metal
October 2010 would be next opportunity providing all follows history; Bull Markets have three stages , first a slow upswing , second consolidated upswing when Investors desperate to find 'Parking Space' for money, (we are in beginning to middle of stage 2. Stage 3 Public and anyone else all gripped by 'don't want to miss out' like a Real Estate / Dot Com / Tulip / boom.
Third stage is a growing bubble, irrational exuberance. Mentioned in evening news programs..."Today Tonight" "Should you be buying Gold?" Koshie holding the Breakfast Show in a Gold Vault. Third stage starts when people become aware of this small corner of the worlds 30 Trillion Economy, possibly strikes during a Sovereign Debt Default or recognition US Dollar is not a Safe Haven.
Note: commentators as applied to Gold rarely use the words “Safe Haven” anymore. Plenty of people ready to buy scrap Gold, very few selling and no big talk from Media about Gold.
Silver, you would not know the stuff exists lest of all that its very cheap, the Media is owned by the Elite, Silver is a very small market. Some estimate 200 Million Ounces actually available in World Stock piles. Half a Billion $ would dry up the Market.
My thinking is when no - one is talking about something, especially Mainstream Media then its probably worth a look at. Physical Possession is only real safe way to own Metals. Stocks are very vulnerable as Silver is Mined as a By Product of Tin , Lead etc mining. Stocks are not a safe option.
Deflation is probably the only scenario where Gold & Silver could be adversely effected. Even during the Great Depression after initial drop during Deflation phase Gold gained 30% after meddling by FDR and JP Morgan.
Little known fact: JP Morgan avoided duty in Civil War by paying $300 to have another serve in his place. This was Legal, can't have the Elite's kids being blown to bits by Bullets Daddy manufactured.
Today Silver is $18.40 USD per Oz, Aust Dollar @.86, that's $22 Australian, for an ounce in a 100 Ounce Bar, a machined coin is $26 to $27 for one Ounce. Buying a 10 Oz Coin the Machine price drops to $25.50.
If buying the 1 Kg coin the cost per Oz is $24.17. It would not take much for Silver to reach an Australian Spot price of 24. Per Oz. ($19.50 US per Oz with Au Dollar at $.81 to the US $ = Aussie Spot of $24 per Oz in Bullion form not a shiny 10 Oz coin.
The price of converting Bullion into Coin is not fixed, at present its about $5 an ounce, if Silver doubled in price the 'machine costs go up as % of cost of coin. Hence Silver coin of 1 Oz at $30 + $9 to $12 in overhead,
Britain is putting a 20% GST on all Silver coins, US is preparing $600 'declaration' limit (Name & Tax Please).
Ideally Silver and Gold will continue upward at steady pace, 14% up this last year. A good Investment is one that has a low probability of loosing 50% -100% of value. Silver is never going to loose 100%; highly unlikely 50%, 10 or 20% on ups & downs always a possibility.
Long Term.... 2 to 5 years, the price should Triple. There is 1 Oz of Gold for every 15 of Silver in the ground. The price of Silver should normally reflect this ratio. Presently it takes 67 Oz Silver to Buy 1 of Gold (67:1). Ratio at (15:1) = $80 per Oz, that just reflecting the fundamental supply ration. If reserves are as low as we think they are ???
"The Commodity Exchange Inc. said there was another 64.5 million ounces stored in COMEX warehouses in the Eligible category, which silver could presumably be coaxed into the Registered class at some silver price.
All together there were about 114 million ounces in both classes of inventory in COMEX warehouses which is about 16.4% of all the silver contracts sold as of June 22.
Historically only a small fraction of open silver contracts are actually held to maturity and delivered into. Currently it would take something on the order of 9,900 contracts standing for delivery to exhaust all the Registered silver now held by the COMEX. That is equivalent to just under $900 million worth of silver at $18.00 USD. "
It would not take much to fire up Silver...One Billionaire
http://goldsilver.com/newsletters/newsID/8580/ref/1
Third stage is a growing bubble, irrational exuberance. Mentioned in evening news programs..."Today Tonight" "Should you be buying Gold?" Koshie holding the Breakfast Show in a Gold Vault. Third stage starts when people become aware of this small corner of the worlds 30 Trillion Economy, possibly strikes during a Sovereign Debt Default or recognition US Dollar is not a Safe Haven.
Note: commentators as applied to Gold rarely use the words “Safe Haven” anymore. Plenty of people ready to buy scrap Gold, very few selling and no big talk from Media about Gold.
Silver, you would not know the stuff exists lest of all that its very cheap, the Media is owned by the Elite, Silver is a very small market. Some estimate 200 Million Ounces actually available in World Stock piles. Half a Billion $ would dry up the Market.
My thinking is when no - one is talking about something, especially Mainstream Media then its probably worth a look at. Physical Possession is only real safe way to own Metals. Stocks are very vulnerable as Silver is Mined as a By Product of Tin , Lead etc mining. Stocks are not a safe option.
Deflation is probably the only scenario where Gold & Silver could be adversely effected. Even during the Great Depression after initial drop during Deflation phase Gold gained 30% after meddling by FDR and JP Morgan.
Little known fact: JP Morgan avoided duty in Civil War by paying $300 to have another serve in his place. This was Legal, can't have the Elite's kids being blown to bits by Bullets Daddy manufactured.
Today Silver is $18.40 USD per Oz, Aust Dollar @.86, that's $22 Australian, for an ounce in a 100 Ounce Bar, a machined coin is $26 to $27 for one Ounce. Buying a 10 Oz Coin the Machine price drops to $25.50.
If buying the 1 Kg coin the cost per Oz is $24.17. It would not take much for Silver to reach an Australian Spot price of 24. Per Oz. ($19.50 US per Oz with Au Dollar at $.81 to the US $ = Aussie Spot of $24 per Oz in Bullion form not a shiny 10 Oz coin.
The price of converting Bullion into Coin is not fixed, at present its about $5 an ounce, if Silver doubled in price the 'machine costs go up as % of cost of coin. Hence Silver coin of 1 Oz at $30 + $9 to $12 in overhead,
Britain is putting a 20% GST on all Silver coins, US is preparing $600 'declaration' limit (Name & Tax Please).
Ideally Silver and Gold will continue upward at steady pace, 14% up this last year. A good Investment is one that has a low probability of loosing 50% -100% of value. Silver is never going to loose 100%; highly unlikely 50%, 10 or 20% on ups & downs always a possibility.
Long Term.... 2 to 5 years, the price should Triple. There is 1 Oz of Gold for every 15 of Silver in the ground. The price of Silver should normally reflect this ratio. Presently it takes 67 Oz Silver to Buy 1 of Gold (67:1). Ratio at (15:1) = $80 per Oz, that just reflecting the fundamental supply ration. If reserves are as low as we think they are ???
"The Commodity Exchange Inc. said there was another 64.5 million ounces stored in COMEX warehouses in the Eligible category, which silver could presumably be coaxed into the Registered class at some silver price.
All together there were about 114 million ounces in both classes of inventory in COMEX warehouses which is about 16.4% of all the silver contracts sold as of June 22.
Historically only a small fraction of open silver contracts are actually held to maturity and delivered into. Currently it would take something on the order of 9,900 contracts standing for delivery to exhaust all the Registered silver now held by the COMEX. That is equivalent to just under $900 million worth of silver at $18.00 USD. "
It would not take much to fire up Silver...One Billionaire
http://goldsilver.com/newsletters/newsID/8580/ref/1
Thursday, June 24, 2010
BIGPISA Britain, Italy, Greece, Portugal, Spain, America.
BIGPISA Britain, Italy, Greece, Portugal, Spain, America. A few more could be added. Australia is one of them, we have 4 major Banks up to 60% invested in Real Estate, 40% of that being financed from abroad.
I enjoy hearing Gerald Celente’s & others. ‘Reality Shots’ on FSN,Financial Sense Newshour with Jim Puplava some people are absorbing and reacting, though not enough to reverse the inertia the Powers That want to Think For Us have set in motion.
Its now almost 10 years since I watched the WTC crumble into a neat hole, we still don’t know who put the Shorts on the Airlines, and about 500 other unanswered questions. The people might be angry, yet they are also in Denial. A deeply held addiction to keeping this Blind Faith in Government. AE911Truth.org
I know all about Addiction & Denial, its power overcomes the Will, even when standing in the rubble of their lives only about 5% ever escape. Hence the possibility of a Third Party / Popular Movement that can succeed against ‘The Syndicate’ is a very low order of chance.
Both in Europe and USA the rights enshrined in concepts of Freedom, Free Markets, Speech have already been quietly removed. Democratic / Republican
/Liberal / Labor makes no difference. The Patriot Act… how they must have laughed when that one went through. It matters not to the Legislators, they all think they have a Golden Ticket, when the inevitable System Failure, Blue Screen of Death pops up the Syndicate will let them stand to fulfill their last function in Government.
Their role as the front men getting punished , Pilloried on CNN etc. While the ‘White Shoe Boys’ as Celente calls them head out for their prearranged safe spots. (Probably Underground ).
The boys won’t wait for a ‘Black Swan’ to crash it all, its always better to be in control, the next event will be a Lehman Bros collapse of Sovereign level, either the UK or Japan. America will have its Guns out, if we can’t print a Quadrillion Dollars ..F U.. try to get it out of us. Bye the Bye we have a War to expand and a Nation under Martial Law.
China and the other players left holding Trillions in worthless paper will be worrying about keeping their 1.5 Billion people from getting out of hand.
The aim since WW1 has been Global control, not of Government but of money, our paper money will be replaced over a long Bank Holiday, the fear stricken, hungry brainwashed masses will praise these new false Money Messiahs. They saved the World. The Internet has been the primary reason they have so far failed. We are dealing with Fascists,
I hear voices calling for Censorship of the Internet. One where we don't even know who's on the list. Why? To protect the Children. This is not confined to Australia. The Net is the last Bastion against those who are determined to destroy the Worlds Currency, that and Gold Buyers.
Its always been the same old story, the ‘plot’ started 400 years ago, the methods are thousands of years old. Finance both sides then come in with Carpet Baggers.
I know people, I have seen how easy it is to Shepard them. I started buying Silver & Gold at the start of 09. I have bought some Bullion mostly but now thinking in Coins, the markup sucks but I figure an ounce of Silver in a negotiable quantity / clearly real Silver is possibly best now. A 1 oz Silver Coin under $30 AU is still cheap, buying Silver is a Long Game.
When the final Act of the ‘Program’ plays out the Paper Money of Europe, UK, USA & Australia will be worthless, Regardless of a Housing Crash sooner or later. I bet early 2012 for that, the Big Players will take their winnings of the table first. The US$ is doomed, that is almost Logically undeniable, if it goes, so do the other or Visa Versa.
I believe in times to come; 10 or 15 or even 20 years away. Silver will be as valuable as Gold, disruption of the Global System will trash exploration and the mania for real assets will have people looking to preserve their wealth, who gives a sh*t about investing in rigged games, wealthy people and average awake individuals will also come to the conclusion that the greatest Financial challenge in the 2010’s will be preserving what is yours and being able to pay for what you need in a real money.
95% of Investors are not in that mind set yet, many will be to late. We will know the winds of disaster are blowing by the flight to Gold Silver Platinum and eventually Palladium. ) + Other REO;s. Low volume on stagnant Exchanges, a slow awakening by the Western World that the Recession is not over, the Depression just beginning. And an inkling in the minds of some that they have lived through the greatest Con Job ever pulled over the perception of Humanity and what was really going on behind their back as they waved their 2 Party Flags.
Good Luck to All. Nothing is how it seems, you think Economics is the only branch of Science & History that needs Debunking? Do you understand how a Skyscraper can collapse at close to Terminal Velocity?
Regards David > Melbourne > previous resident of Texas USA
One last PS: 'They' are not fools, its about Power not Money, they still have a Card up the sleeve, that's best left for another day.
I enjoy hearing Gerald Celente’s & others. ‘Reality Shots’ on FSN,Financial Sense Newshour with Jim Puplava some people are absorbing and reacting, though not enough to reverse the inertia the Powers That want to Think For Us have set in motion.
Its now almost 10 years since I watched the WTC crumble into a neat hole, we still don’t know who put the Shorts on the Airlines, and about 500 other unanswered questions. The people might be angry, yet they are also in Denial. A deeply held addiction to keeping this Blind Faith in Government. AE911Truth.org
I know all about Addiction & Denial, its power overcomes the Will, even when standing in the rubble of their lives only about 5% ever escape. Hence the possibility of a Third Party / Popular Movement that can succeed against ‘The Syndicate’ is a very low order of chance.
Both in Europe and USA the rights enshrined in concepts of Freedom, Free Markets, Speech have already been quietly removed. Democratic / Republican
/Liberal / Labor makes no difference. The Patriot Act… how they must have laughed when that one went through. It matters not to the Legislators, they all think they have a Golden Ticket, when the inevitable System Failure, Blue Screen of Death pops up the Syndicate will let them stand to fulfill their last function in Government.
Their role as the front men getting punished , Pilloried on CNN etc. While the ‘White Shoe Boys’ as Celente calls them head out for their prearranged safe spots. (Probably Underground ).
The boys won’t wait for a ‘Black Swan’ to crash it all, its always better to be in control, the next event will be a Lehman Bros collapse of Sovereign level, either the UK or Japan. America will have its Guns out, if we can’t print a Quadrillion Dollars ..F U.. try to get it out of us. Bye the Bye we have a War to expand and a Nation under Martial Law.
China and the other players left holding Trillions in worthless paper will be worrying about keeping their 1.5 Billion people from getting out of hand.
The aim since WW1 has been Global control, not of Government but of money, our paper money will be replaced over a long Bank Holiday, the fear stricken, hungry brainwashed masses will praise these new false Money Messiahs. They saved the World. The Internet has been the primary reason they have so far failed. We are dealing with Fascists,
I hear voices calling for Censorship of the Internet. One where we don't even know who's on the list. Why? To protect the Children. This is not confined to Australia. The Net is the last Bastion against those who are determined to destroy the Worlds Currency, that and Gold Buyers.
Its always been the same old story, the ‘plot’ started 400 years ago, the methods are thousands of years old. Finance both sides then come in with Carpet Baggers.
I know people, I have seen how easy it is to Shepard them. I started buying Silver & Gold at the start of 09. I have bought some Bullion mostly but now thinking in Coins, the markup sucks but I figure an ounce of Silver in a negotiable quantity / clearly real Silver is possibly best now. A 1 oz Silver Coin under $30 AU is still cheap, buying Silver is a Long Game.
When the final Act of the ‘Program’ plays out the Paper Money of Europe, UK, USA & Australia will be worthless, Regardless of a Housing Crash sooner or later. I bet early 2012 for that, the Big Players will take their winnings of the table first. The US$ is doomed, that is almost Logically undeniable, if it goes, so do the other or Visa Versa.
I believe in times to come; 10 or 15 or even 20 years away. Silver will be as valuable as Gold, disruption of the Global System will trash exploration and the mania for real assets will have people looking to preserve their wealth, who gives a sh*t about investing in rigged games, wealthy people and average awake individuals will also come to the conclusion that the greatest Financial challenge in the 2010’s will be preserving what is yours and being able to pay for what you need in a real money.
95% of Investors are not in that mind set yet, many will be to late. We will know the winds of disaster are blowing by the flight to Gold Silver Platinum and eventually Palladium. ) + Other REO;s. Low volume on stagnant Exchanges, a slow awakening by the Western World that the Recession is not over, the Depression just beginning. And an inkling in the minds of some that they have lived through the greatest Con Job ever pulled over the perception of Humanity and what was really going on behind their back as they waved their 2 Party Flags.
Good Luck to All. Nothing is how it seems, you think Economics is the only branch of Science & History that needs Debunking? Do you understand how a Skyscraper can collapse at close to Terminal Velocity?
Regards David > Melbourne > previous resident of Texas USA
One last PS: 'They' are not fools, its about Power not Money, they still have a Card up the sleeve, that's best left for another day.
Saturday, June 19, 2010
GOLD & FRACTIONAL RESERVE BANKING OF UNALLOCATED BULLION.
GOLD & FRACTIONAL RESERVE BANKING OF UNALLOCATED BULLION.
I have listened to "The Great Gold Debate" on the Financial Sense Newshour with Jim Puplava & try to draw a reasonable conclusion from the statements of both Adrian Douglas and Jeffrey Christian. The paragraphs below are direct quotes from articles written by each. The Debate: http://www.financialsense.com/fsn/2010.html
Adrian Douglas: How much imaginary gold has been sold?
In the last 14 years the supply of dollars has increased from $4 trillion to $15 trillion (+275 percent) while the gold price has risen from $400 in 1995 to $1,000 in 2009 (+150 percent).
….”There has to be an alternative massive supply of gold to make the price rise slower than the influx of dollars.”
……. “When the GLD trading characteristics are applied to the OTC daily trading volume, it gives an implied minimum inventory stock level of 64,000 tonnes. Given that the actual inventory cannot be more than 15,000 tonnes, this tells us that 49,000 tonnes of imaginary gold has been sold. That is to say "unallocated gold.”
…………….”This lends credibility to at least the ballpark level of our estimate. It means that about 50,000 tonnes of gold has been sold that is in excess of actual real stocks. This does not include all the lookalike scams of pool accounts, gold certificates, unallocated brokerage sales, ETFs, etc., which might be another 10,000 tonnes.
So the order of magnitude of the net short position of gold in the world is 60,000 tonnes. This is against a total possible claimed gold supply of 30,000 tonnes from all central banks, a figure GATA believes is now less than 15,000 tonnes."
--------------------------------------------------------------------------------------------------
CPM Group Jeffrey Christian's Final Response to GATA
…..However, “Gold also is a financial asset that is banked. In bullion banking jargon, this is called an unallocated account. Just like cash deposited in a checking account, the bank represents that it has enough assets to service the expected volume of withdrawals, but it doesn’t necessarily have enough bullion to allow all the depositors to withdraw all their gold all at once. many gold “certificate programs” are unallocated bullion accounts.”
“This is well understood by professionals in the industry and by most investors involved in these assets. Again, it should come as no surprise to anyone with bona fide credentials as an expert of any kind in the gold bullion marketplace. Yet GATA has tried to portray the fact that banks are required to hold only a portion of their gold assets, as they do money, as somehow being scandalous."
(Emphasis added, David) "END QUOTES"
----------------------------------------------------------------------------------------------------------
CONCLUSION:
To my non-Accountant mind, Christian states that Banks treat Unallocated Gold as they would ‘unallocated money’, the probability of Fractional Reserve Banking of Gold is 100%. The question remains one of what the ratio is 4:1, 12:1 or would they be even more irresponsible based on past experience.
I find it hard to believe Bankers could resist the temptation to exploit the asset and use the paper to manipulate prices when opportunity arises.
Personally I bet its about 12:1 or 180,000 Tons. 5,787,134,382 Billion Oz @ $1000 per Oz that’s ah? 5.7 Thousand Billion or $5.7 Trillion give or take a billion.
Thinking from the Banks point of view, would it be logical that the ‘Paper’ funds deposited with the Bank for unallocated Gold the money received from the Investor would be added to the Banks bottom line of assets. From that point on the paper for the Gold turns back into a Ledger entry. The Banks lend money based on their Capital multiplied by the Fractional Reserve method over time.
The Banks are not doing anything out of the normal from their point of view, keeping only enough Gold to meet Allocated Redemptions and a few demanding customers would be sufficient.
This lends credence to the theory that Banks act to suppress the price of Gold to:
1) Discourage people from redeeming Physical Bullion not in existence.
2) Keep the price from costing their bottom line by having to pay more to meet redemptions. (Do they act in a manner that stretches the Law or is their no Law to prevent them using the Gold on their books as they would with a cash deposit.
3) Prevent a feedback loop in the Gold price if Gold was considered a ‘Hot’ investment and the demand on their supply of Physical Gold was to escalate.
Plenty of logical reasons that explain how both parties believe they are right and the primary questions are.
??: IS ‘FRACTIONAL RESERVE GOLD BANKING’ REAL AND DO THE BANKS AND FUNDS ACT ILLEGALLY TO MANIPULATE THE MARKET BY VIRTUE OF SIZE AND OPACITY?
At 12:1 and $5 Trillion at stake, greed might allow standards to slip a bit? Even at 2:1 its about a half a Trillion. The Banks have a lot of motivation to keep a nice balance of incoming funds for Paper Gold, a slowly rising volatile price to keep the funds coming and allow for big profits regardless of the Market direction. Meanwhile investing the Trillions of Funds Assets into other profit markets.
As always please check my Math and post re any false assumptions I may have made.
The Ultimate argument in favor of holding Gold and Silver is the evolution of the GFC , now a 'Sovereign Debt Crisis' soon to become a 'Global Currency Crisis'. This will occur when people who have spent lifetimes accumulating wealth see no safe haven, Cash is only as good as the country behind it. Real Estate is on a downward sloap, Bonds, Stocks etc all have uncertainty and the fear generated by uncertainty.
Sooner than later investors will go to basics, almost a racial memory of holding the only real store of wealth. (Forget profits just holding your wealth will be #1 priority). Gold and Silver are the only investments that make any sense.
Considering the fundamentals of Silver (low supply above ground, critical Industrial use, perception of value as currency. Personally I believe Silver will reach $100 an ounce in 3 to 5 years. Depending on how long the Financial System can keep standing on ever increasing amounts of paper money.
With a Quadrillion of Derivatives floating around and Trillions of created money entering the system an end is inevitable. What we avoided after Lehman Brothers will come back as a Credit Crisis of Global Proportions. Not only will Banks not trust each other, they won't trust the paper money from the USD to the Euro or UK Pound.
Now will the average person, finding themselves at closed ATM's, or more probably restrictions from Government on withdrawing your money. We will have an Inflating Currency
parallel to a Deflating Economy the real Economy separating from the paper backed and Electronic systems.
The Kaos will be proportional to the time it takes to purge the system and create a new one backed by a basket of real assets.
World Governments have been doing everything they can to push the time further down the road. Like a Bulldozer pushing soil it will take more to move less.
What mystifies me is that there are intelligent people in Government that must know where this will lead (Quantitative Easing, Stimulus etc) we cannot attribute it to Keynesian and Austrians thinking a bit differently. I would propose the Powers That Be are simply sucking the system dry while they can, robbing the Museum during the War no ones able to see past the smoke.
When they have taken all that can be got...they walk away and leave the world to sort itself out. If you don't believe Conspiracy Theory relating to the Financial world and the evolution of systems to remove Legislation and oversight, create the federal Reserve Banks, all to enable the very few to exploit the majority. You would be ignorant of a long history of these events.
There has been no fundamental improvement of the Human Nature, we are in WW3 and have been since 911 when the present unending War was created. "Beware the Military Industrial Complex" Eisenhower was telling us something, he knew that few would listen.
I have listened to "The Great Gold Debate" on the Financial Sense Newshour with Jim Puplava & try to draw a reasonable conclusion from the statements of both Adrian Douglas and Jeffrey Christian. The paragraphs below are direct quotes from articles written by each. The Debate: http://www.financialsense.com/fsn/2010.html
Adrian Douglas: How much imaginary gold has been sold?
In the last 14 years the supply of dollars has increased from $4 trillion to $15 trillion (+275 percent) while the gold price has risen from $400 in 1995 to $1,000 in 2009 (+150 percent).
….”There has to be an alternative massive supply of gold to make the price rise slower than the influx of dollars.”
……. “When the GLD trading characteristics are applied to the OTC daily trading volume, it gives an implied minimum inventory stock level of 64,000 tonnes. Given that the actual inventory cannot be more than 15,000 tonnes, this tells us that 49,000 tonnes of imaginary gold has been sold. That is to say "unallocated gold.”
…………….”This lends credibility to at least the ballpark level of our estimate. It means that about 50,000 tonnes of gold has been sold that is in excess of actual real stocks. This does not include all the lookalike scams of pool accounts, gold certificates, unallocated brokerage sales, ETFs, etc., which might be another 10,000 tonnes.
So the order of magnitude of the net short position of gold in the world is 60,000 tonnes. This is against a total possible claimed gold supply of 30,000 tonnes from all central banks, a figure GATA believes is now less than 15,000 tonnes."
--------------------------------------------------------------------------------------------------
CPM Group Jeffrey Christian's Final Response to GATA
…..However, “Gold also is a financial asset that is banked. In bullion banking jargon, this is called an unallocated account. Just like cash deposited in a checking account, the bank represents that it has enough assets to service the expected volume of withdrawals, but it doesn’t necessarily have enough bullion to allow all the depositors to withdraw all their gold all at once. many gold “certificate programs” are unallocated bullion accounts.”
“This is well understood by professionals in the industry and by most investors involved in these assets. Again, it should come as no surprise to anyone with bona fide credentials as an expert of any kind in the gold bullion marketplace. Yet GATA has tried to portray the fact that banks are required to hold only a portion of their gold assets, as they do money, as somehow being scandalous."
(Emphasis added, David) "END QUOTES"
----------------------------------------------------------------------------------------------------------
CONCLUSION:
To my non-Accountant mind, Christian states that Banks treat Unallocated Gold as they would ‘unallocated money’, the probability of Fractional Reserve Banking of Gold is 100%. The question remains one of what the ratio is 4:1, 12:1 or would they be even more irresponsible based on past experience.
I find it hard to believe Bankers could resist the temptation to exploit the asset and use the paper to manipulate prices when opportunity arises.
Personally I bet its about 12:1 or 180,000 Tons. 5,787,134,382 Billion Oz @ $1000 per Oz that’s ah? 5.7 Thousand Billion or $5.7 Trillion give or take a billion.
Thinking from the Banks point of view, would it be logical that the ‘Paper’ funds deposited with the Bank for unallocated Gold the money received from the Investor would be added to the Banks bottom line of assets. From that point on the paper for the Gold turns back into a Ledger entry. The Banks lend money based on their Capital multiplied by the Fractional Reserve method over time.
The Banks are not doing anything out of the normal from their point of view, keeping only enough Gold to meet Allocated Redemptions and a few demanding customers would be sufficient.
This lends credence to the theory that Banks act to suppress the price of Gold to:
1) Discourage people from redeeming Physical Bullion not in existence.
2) Keep the price from costing their bottom line by having to pay more to meet redemptions. (Do they act in a manner that stretches the Law or is their no Law to prevent them using the Gold on their books as they would with a cash deposit.
3) Prevent a feedback loop in the Gold price if Gold was considered a ‘Hot’ investment and the demand on their supply of Physical Gold was to escalate.
Plenty of logical reasons that explain how both parties believe they are right and the primary questions are.
??: IS ‘FRACTIONAL RESERVE GOLD BANKING’ REAL AND DO THE BANKS AND FUNDS ACT ILLEGALLY TO MANIPULATE THE MARKET BY VIRTUE OF SIZE AND OPACITY?
At 12:1 and $5 Trillion at stake, greed might allow standards to slip a bit? Even at 2:1 its about a half a Trillion. The Banks have a lot of motivation to keep a nice balance of incoming funds for Paper Gold, a slowly rising volatile price to keep the funds coming and allow for big profits regardless of the Market direction. Meanwhile investing the Trillions of Funds Assets into other profit markets.
As always please check my Math and post re any false assumptions I may have made.
The Ultimate argument in favor of holding Gold and Silver is the evolution of the GFC , now a 'Sovereign Debt Crisis' soon to become a 'Global Currency Crisis'. This will occur when people who have spent lifetimes accumulating wealth see no safe haven, Cash is only as good as the country behind it. Real Estate is on a downward sloap, Bonds, Stocks etc all have uncertainty and the fear generated by uncertainty.
Sooner than later investors will go to basics, almost a racial memory of holding the only real store of wealth. (Forget profits just holding your wealth will be #1 priority). Gold and Silver are the only investments that make any sense.
Considering the fundamentals of Silver (low supply above ground, critical Industrial use, perception of value as currency. Personally I believe Silver will reach $100 an ounce in 3 to 5 years. Depending on how long the Financial System can keep standing on ever increasing amounts of paper money.
With a Quadrillion of Derivatives floating around and Trillions of created money entering the system an end is inevitable. What we avoided after Lehman Brothers will come back as a Credit Crisis of Global Proportions. Not only will Banks not trust each other, they won't trust the paper money from the USD to the Euro or UK Pound.
Now will the average person, finding themselves at closed ATM's, or more probably restrictions from Government on withdrawing your money. We will have an Inflating Currency
parallel to a Deflating Economy the real Economy separating from the paper backed and Electronic systems.
The Kaos will be proportional to the time it takes to purge the system and create a new one backed by a basket of real assets.
World Governments have been doing everything they can to push the time further down the road. Like a Bulldozer pushing soil it will take more to move less.
What mystifies me is that there are intelligent people in Government that must know where this will lead (Quantitative Easing, Stimulus etc) we cannot attribute it to Keynesian and Austrians thinking a bit differently. I would propose the Powers That Be are simply sucking the system dry while they can, robbing the Museum during the War no ones able to see past the smoke.
When they have taken all that can be got...they walk away and leave the world to sort itself out. If you don't believe Conspiracy Theory relating to the Financial world and the evolution of systems to remove Legislation and oversight, create the federal Reserve Banks, all to enable the very few to exploit the majority. You would be ignorant of a long history of these events.
There has been no fundamental improvement of the Human Nature, we are in WW3 and have been since 911 when the present unending War was created. "Beware the Military Industrial Complex" Eisenhower was telling us something, he knew that few would listen.
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