This page has been archived and commenting is disabled.

Guest Post: Gold Swap Signals the Roadmap Ahead

Tyler Durden's picture




 

Submitted by Gordon T. Long of Tipping Points

Sultans of Swap: Gold Swap Signals the Roadmap Ahead

The news rocked the global gold market when an almost obscure line item in the back of a 216 page document released by an equally obscure organization was recently unearthed. Thrust into the unwanted glare of the spotlight, the little publicized Bank of International Settlements (BIS) is discovered to have accepted 349 metric tons of gold in a $14B swap. Why? With whom? For what duration? How long has this been going on? This raises many questions and as usual with all $617T of murky unregulated swaps, we are given zero answers. It is none of our business!

Considering the US taxpayer is bearing the burden of $13T in lending, spending and guarantees for the financial crisis, and an additional $600B of swaps from the US Federal Reserve to stem the European Sovereign Debt crisis, some feel that more transparency is merited. It is particularly disconcerting, since the crisis was a direct result of unsound banking practices and possibly even felonious behavior. The arrogance and lack of public accountability of the entire banking industry blatantly demonstrates why gold manipulation, which came to the fore in recent CFTC hearings, has been able to operate so effectively for so long. It operates above the law or more specifically above sovereign law in the un-policed off-shore, off-balance sheet zone of international waters.

Since President Richard Nixon took the US off the Gold standard in 1971, transparency regarding anything to do with gold sales, leasing, storage or swaps is as tightly guarded by governments as the unaudited gold holdings of Fort Knox. Before we delve into answering what this swap may be all about and what it possibly means to gold investors, we need to start with the most obvious question and one that few seem to ask. Who is this Bank of International Settlements and who controls it?

BANK OF INTERNATIONAL SETTLEMENTS (BIS)

The history of the BIS reads with all the intrigue of a spy novel and comes with a very checkered past. According to the BIS web site, as a privately held bank, it decided in recent years to become wholly owned and controlled by the Central Banks of the world - a highly unusual decision for a private enterprise. Lengthy court cases in Le Hague were involved by private members who objected. Something like this is usually called a buy out or takeover, but there are no public records of any of the central banks making such an acquisition - an extremely strange set of events with little media coverage.

I am sure it can all be explained very logically until we get to the size of the balance sheet. We are talking close to a half trillion dollar balance sheet, or more specifically 259 billion SDR’s, which is approximately $400B. Where did the capital or deposits come from? The BIS goes out of its way to specifically assert it only accepts deposits from member central banks, though it does also state confusingly in the financial notes that there are deposits from previous financial statements from recognized international banks. Therefore, are we to conclude that the US Federal Reserve has huge deposits at the BIS? Though I couldn’t find the assets on the Fed’s balance sheet, I’m sure they are there in the small print or on the New York Feds balance sheet somewhere. It would be a legal requirement. It is a forensic accounting nightmare to find these items based on public documents of the various private organizations. Apparently it is just none of our business. For such a major element of the world’s operating financial structure to have such poor visibility, it seems preposterous until you actually do the research. It should be laid out so a freshman Economics class could easily follow the ownership acquisition and money flows. It isn’t and it appears to this researcher that it is intentionally opaque.

Since the BIS goes out of its way to ensure readers in its annual financial report that no private funds are accepted, maybe all we really need to know is what the BIS officially tells us. The BIS is owned and controlled by their member Central Banks. Therefore if the BIS was to do a gold swap of the magnitude of 349 metric tonnes, then board member Ben Bernanke would have known of it in advance and approved it. He would know exactly who the transaction was with and why. If he didn’t then he is legally negligent in his fiduciary responsibility as a BIS board member, because of the size of the transaction and its material effect. Other board members include: Mervyn King, Governor of the Bank of England, Jean-Claude Trichet, President of the European Central Bank, Axel Weber, President of the Deutsche Bundesbank and William C Dudley, President of the Federal Reserve Bank of New York. You can’t have it both ways.

Though we can suspect many things, there is no other conclusion we can reach than the swap is part of an agreed upon plan or concurrence between these board members. So what is the possible understanding or plan?

WHO GAVE UP THE GOLD?

There are not a lot of institutions who possess 349 metric tonnes of gold. So who needs $14B worth of cash and has this amount of gold? That shouldn’t be too hard to find.

Sovereign governments have historically created their wealth by invading other countries to pillage their treasuries which held gold, silver and the crown jewels. The winning and seizure of more land allowed the sovereign to give it to the nobles who used it to tax and tithe the feudal tenets. Recurring wealth flowed upward to the sovereign treasury.

Considering today’s EU membership, where sovereign countries can no longer print their own currency (the politicians first weapon of choice), there are three channels (other than the very politically unpopular increase in taxes and fees) open in modern times to raising money for the treasury:

  1. The public sale of debt offerings instruments such as Bills, Notes and Bonds
  2. The more recent and stealthy approach of selling assets, including revenue streams from such things as taxes, fees, licensing etc. These are sold into the securitization market through complex derivative structures such as Interest Rate and Currency Swaps contracts. This approach, as recently discovered, has been rampant throughout Europe even prior to the creation of the EU.
  3. When you exhaust all of the above, you then sell the family jewels – the sovereign treasury of gold holdings.

The BIS was very quick to respond to public speculation about the massive gold swap when they immediately clarified that the gold swap was with a commercial bank.  Since by its own statements, as I mentioned above, it doesn’t accept deposits from non member banks, this seems confusing on the surface. Does it or doesn’t it accept private deposits?  It would be respectful to assume that the BIS is telling the truth and that they did in fact conduct the transaction with a private bank who was transacting the swap on behalf of a central bank or sovereign treasury. This would sort of make everything work. For the BIS to be telling the truth in all their statements, the transaction must be with a member central bank with the involvement of an intermediary commercial bank. But something still isn’t right here.

When you work through the details you quickly arrive at an astounding coincidence. Portugal shows it has 348 tonnes of sovereign gold. The swap was for 346. Portugal is a member bank, though does not sit on the Board, but attends the General Meeting as an observer only.  Portugal, as a member of the PIIGS, only days after the unearthing of the swap, was again downgraded by Moody’s, thereby making its lending costs even higher than the already elevated levels being demanded by the financial markets. There is a very strong possibility that the swap is with Portugal. Though who the swap is with is important to those trading debt and credit derivatives it isn’t quite as important to those interested in the gold market.

Ben Davies the CEO of Hinde Capital in London and a player in the gold market suspects (12:40) we may have a modified form of swap emerging. There is the possibility that the commercial bank is in fact a major gold bullion bank. Some of the bullion banks have major short positions on gold that far outstrip the annual physical production of gold. The disconnect between physical and paper gold along with rising gold prices is likely causing serious strains on their balance sheet. As Davies points out the gold may be transacted from a central bank to the BIS through a bullion bank while the gold physically remains with the originating central bank; is classified as ‘unallocated’ at the BIS but in fact remains on the books of the bullion bank. It effectively is double accounted for. The increase in gold would allow gold prices to be pushed lower, which in fact is what has been happening. A careful reading of the BIS financial statements shows more clearly the accounting for such a transaction.

There can be little doubt that the Gold Swap is with a central bank where the physical gold remains. The transaction is considered a deposit at the BIS (liability) but has been lent to a commercial bank (likely a bullion bank) as a loan (asset). The question is only why a bullion bank needs to borrow this quantity of gold, remembering it never gets the physical gold because it remains at the originating central bank. The reader is encouraged to read the Financial Policy notes #4,5, 6, 13, 14, 15, 16, 17 and 19 within the BIS Financial Statement for a clearer understanding along with Notes to the Financial Statements #4 and #11.

The BIS is known as the central bank to the central bankers.
The BIS may equally be referred to as the Central Gold Bullion Bank to the Gold Bullion Banks.

The March 31 2010 Financial Statement of the BIS shows 43.0B SDR’s of gold or 16.6% of total assets. According to note #4 to the BIS Financial Statements: “ Included in ’Gold bars held at central banks” is SDR 8,160.1 million (346 tonnes) (2009: nil) of gold, which the Bank held in connection with gold swap operations, under which the Bank exchanges currencies for physical gold. The Bank has an obligation to return the gold at the end of the contract.”  It is very important to appreciate this note is pertaining specifically to BIS ‘assets’ which in the case of banks are what the reader would consider ‘loans’. Under Financial Policy notes #5 to the Financial Statement the BIS is clear that under banking portfolios “all gold financial assets in these portfolios are designated as loans and receivables”. Separately, but very interestingly the BIS additionally states “ the remainder of the Banks equity is held in gold. The Bank’s own gold holdings are designated as available for sale”. 

SPECIAL DRAWING RIGHT (SDR)

If problems get worse for Portugal, as possibly the global economic climate worsens, then the gold may never legally belong to Portugal. The contracted swap terms at some point may simply reclassify it a net zero sale, if Portugal fails to return the cash portion of the swap. The BIS would have 346 tonnes of gold and Portugal the $14B of Euros it has long since spent to solve a 2010 problem. By then Portugal likely would need even more loans in whatever currency would replace a crumpling or possibly extinct Euro.

Up until 2004 the BIS denominated its financial statements in Gold Francs. It now has made a major shift to denominating itself into Special Drawing Rights (SDRs). The calculation is exactly the same as used for the IMF. The SDR is operating as a defacto currency.

It takes a little arithmetic (which is not done in the financial statements) to be able to get values in any currency that can give the reader a perspective of the scope of the activities at the BIS. The SDR reporting obscures the BIS’s significant size and scope.

FUNDING

For those who followed the European Sovereign Debt Crisis and the negotiations with Greece, you know that the IMF was an unwelcomed intruder into EU financial affairs. Greece on more than one occasion held the IMF as a negotiating ploy and as a funding alternative to the EU’s procrastination and lack of decisiveness.

The IMF’s willingness to interfere created a lot of bad feelings within the EMU and Germany specifically. As Ambrose Evans-Prichard reported:  “The ECB is barely on speaking terms with the IMF – the "Inflation Maximizing Fund" as it was dubbed in a Bundesbank memo - - The IMF has not caught up to the reality in Europe said ECB über-hawk Jürgen Stark on July 9th” The final EU bailout in fact heavily involved the IMF participation. The very busy IMF is the dominant crisis lender of last resort throughout all Central & Eastern European current financial problems.

What we are seeing is the emergence of another funding structure based on the SDR - SDR’s that have a degree of gold backing. The BIS now has a total of 12.4% of its deposits (32B SDR) in the form gold deposits. Note #11 to the BIS financial statements states: “Gold deposits placed with the Bank originate entirely from Central Banks. They are all designated as financial liabilities measured as amortized cost”.

ARE WE SETTING THE PINS UP FOR AN ALTERNATIVE RESERVE CURRENCY?

Are we moving towards the BIS and IMF being fractional reserve banks that will create money & credit - a reserve currency that will satisfy Russia and China with an element of Gold backing? A bank such as the BIS could easily assume this role (if it hasn’t already) as could the IMF with possible banking charter adjustments.

The chances are high that this is the roadmap we will find ourselves taking. Like all banking that started as Gold backed you could expect that in this case the little gold backing that starts the process is quickly diminished so a limitless money machine could begin functioning. The gold backing would likely be an initial requirement by Russia and China. The partial gold backing would lend credibility to the acceptance and a possible reserve currency alternative and eventual establishment as the global reserve currency.

SHADOW BANKING REPLACEMENT

The collapse of the Shadow Banking system and its attendant  SIV / CDO structures were at the root of the financial crisis.  That structure which is representative of a huge amount of the credit growth since the dotcom bubble burst isn’t coming back soon, if ever. The world needs more liquidity than the central banks or sovereign treasuries can currently deliver politically. The central bankers, huddled in their bimonthly board meeting at the BIS in Basel, Switzerland, know this better than anyone. Their discussions in the very halls of the BIS must resonate with them to use all the tools available at their disposal - quickly.

Paul McCulley and Richard Clarida at Pacific Investment Management Co. (PIMCO) have written extensively about the Shadow Banking System and its growth. An extensive slide presentation on the Shadow Banking System can be found on my web site at TIPPING POINTS. I won’t go into the detail here, but suffice it to say that the shadow banking system collapse has created a massive hole in credit creation that central bankers can’t fill in the manner in which they presently appear to be approaching the problem.  Of course appearances can be deceiving

The problem has now reached crisis proportions and the central bankers know they must urgently act in a coordinated manner. Deflation now has a firm hand on the global economy and this must be reversed. I have been calling for a US Quantitative Easing QE II of $5T in my writings for some time. This amount is required for the US alone. The entire global requirement is three to four times this amount.

The above chart serves as an illustration to simplify the essence of the Shadow Banking System . The international bankers prefer to refer to the process as Capital Arbitrage. An arms-length agreement allowed the banks to invest in a Structured Investment Vehicle (SIV) as an affiliate investment. The large spread that an SIV captured made it an excellent investment, but more importantly it allowed the banks to use their fractional reserve (10X) money creation abilities to buy risky securitization products without them appearing on their balance sheet. The banks received huge multiplier leveraged returns from the high yielding Collateralized Debt Obligations (CDOs) until the crisis imploded the game.

HOW MUCH LEVERAGE WILL THE CENTRAL BANKER CHOOSE TO COMPOUND?  => “x” times “y”

When the financial crisis unfolded you may recall that then US Treasury Secretary Hank Paulson’s (former Chairman and CEO of Goldman Sachs during the explosion of Shadow Banking structures) first solution was to create a $100B Super SIV. The SIV leverage thinking was so entrenched that this was the first ‘go to’ solution to fight de-leveraging. If we were to jump forward to today when we are further along in increasing and unprecedented de-leveraging, what the central bankers need to replace the shadow banking system is a vehicle that will deliver the previous scale of leverage PLUS an order of magnitude more. The answer is the Bank of International Settlements. The SIV model is used as illustrated ‘Shadow Central Banking System’ above.

With the use of the SDR ‘currency’, central bankers can compound fractional reserve lending.

IT’S ALREADY HAPPENING

It is my view this process is already well along. The following Bloomberg global money supply growth chart graphically shows this.  As the circles indicate, once again money is flowing into the pipeline or at least into global bank reserves.

CONCLUSION

The advantage of this approach is:

  1. Leverage: Compounding money creation between banks
  2. Partial gold backing: Present BIS levels of  12.4%
  3. SDR: Offers a basket of currencies approach versus a single currency dependency.
  4. Former Communist bloc regime backing: China and Russia would likely support this approach for a number of reasons, which they have already expressed as short comings to the current global reserve situation.
  5. Reserve Currency: The SDR approach offers a migration path from today’s US$ reserve currency to an alternative bank reserve currency to a future global reserve currency.

 

This may be the final lever required to initiate a Minsky Melt-Up (see: EXTEND & PRETEND - Manufacturing a Minsky Melt-Up) and the $5T in QE II (see: EXTEND & PRETEND: A Guide to the Road Ahead) I have been writing about for some time now.

There are many questions that are raised in the above discussion - many about the future role and safety of gold. Time and space don’t allow for this here. I hope to work through the answers in forthcoming articles.

If you would like to be notified as the articles are released, then sign-up and additionally follow the ongoing daily developments at Tipping Points.
       
The following gave me concern when I first read it many years ago and something for you to think about:

"...the powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations."

Professor Carroll Quigley
Tragedy and Hope: A History of the World in Our Time (1966)
President Bill Clinton’s Georgetown Professor

Sign Up for the next release in the Sultans of Swap series:  Commentary

Gordon T Long        
Tipping Points

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 07/23/2010 - 10:47 | 485259 God
God's picture

Drogo is obsessed and blinded by the possibility of an unlikely event; that rare occurrence is his raison d'etre. At thirteen she encountered the book, little did Yevgenia know that she would spend an entire life playing Giovanni Drogo in the antechamber of hope, waiting for the big event, sacrificing for it, and refusing intermediate steps, the consolation prizes.

Sat, 07/24/2010 - 10:24 | 486709 French Frog
French Frog's picture

There was a very good article by FOFOA a while back describing the fact/possibility that the BIS is the entity organising the sale/purchase of VERY LARGE AMOUNT of PHYSICAL GOLD by central banks, completely independently of Commex/LBMA pricing & suggesting a difference in price between these 2 markets by a factor of 20.

Sat, 07/24/2010 - 11:56 | 486791 maddy10
maddy10's picture

hahahaha

Nut cases on the loose!

I haven't heard of any gods controlling nearly 500 tons of gold in homes of India!

stop this nonsense and move on

This entire thread should be flagged

Fri, 07/23/2010 - 10:44 | 485260 crzyhun
crzyhun's picture

Nothing to worry about, please move along! Move along, I said.

Fri, 07/23/2010 - 11:26 | 485312 Rollerball
Rollerball's picture

Exactly.  

We're "seeing" it only because the "First Seed" (TPTWAB) want us to see it:  so to know who's "seeing" it and, to reinforce (that) there's absolutely nothing we will do about it.

Trade accordingly. 

http://www.youtube.com/watch?v=o_12E1EN6fs&feature=related

Fri, 07/23/2010 - 16:18 | 486089 Bartanist
Bartanist's picture

Been thinking about this a lot: The collection and disappearance of gold, the BIS, the meek shall inherit the earth, zionism and (here's where I lose ya) Enlil/YWHW and the Annunanki/Nefilim who came to earth hundreds of thousands of years ago to mine gold (for whatever reason), created man through genetic engineering, combining Homo Erectus and their own genes and became man's slavemaster and "god(s)". For full verification all you have to do is read and ascribe to Zecharia Sitchen's translations to the Sumerian records of events leading through the flood and up to the cliff notes version of the history in the bible.

If the BIS is collecting gold and is primarily run by those who have been left as caretakers of mankind (now who do we know that feel they have that responsibility), it makes sense, given the assumptions, that they are getting the gold ready for a shipment ... odd though from the Sitchin timeline, the planet Nibiru is not due for its reappearance for another millenia. Suppose he could be wrong or possibly it no longer matters what distance the planet (you know the one that Nasa found in 1983 that is 4X the size of earth) is from earth.

But consider the gods from the old records still here on earth and being the Invisible Hand of Providence that has been leaking technology into our society, not for the last several hundred years, but from the time right after the flood... but that would mean that Enki/Ptah were still here ... the provider of technology and brother to Enlil/YWHW the warrior and leading god of earth.

Not really sure if there is anything that makes any MORE sense.

Fri, 07/23/2010 - 16:49 | 486132 tanerlorn
tanerlorn's picture

Agree, and it should be pointed out that the 2012 Olympics are in London, which is being billed as the new Zion, and we have a timeline.

Sat, 07/24/2010 - 00:53 | 486518 Trial of the Pyx
Trial of the Pyx's picture

I know this all sounds like crazy talk. I can hardly believe I am replying in this subthread myself...but I have seen first hand what happens to people the first time they encounter gold in the wild...the look in their eyes as they swirl the pan over and over again.

 

Homo Sapiens is one enormous and fiendishly clever piece of concentration equipment...creator or no.

Fri, 07/23/2010 - 17:09 | 486155 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

I've read Sitchin as well. However, I cannot ascribe to "god appeasement payments" what can more easily be credited to thieving criminal bastards right here on planet Earth.

As for an 'invisible hand of providence', have you had a look outside today? It's more like the invisible boot stamping on the face of mankind. 

Fri, 07/23/2010 - 17:29 | 486173 Bartanist
Bartanist's picture

It would not necessarily be god appeasement payments, just mining operations as usual with the collection through agents.

Have someone else do the work. Control the system through debt and influence on government. Trade fiat (nothing) for gold on some type of schedule that fits with deliveries. It could go on for a very long time, essentially unnoticed.

There are all sorts of conclusions that could be made into the conspiratorial. One thing the gods of old supposedly did for us was "decrease the burden of man on the earth", through the creation of wars. It was seen as something of a kindness and not necessarily an evil. An analogy would be increasing the hunting limit on deer so that the remaining animals would not be starved to death during the winter.

I think "why gold is needed" has been a major topic of speculation and one that we may not have the technology yet to answer.... although there is a theoretical high temperature gold superconductor... see when one discusses it as if it is normal, it almost sounds sane.

... and yeah typo on the "YHWH".

Fri, 07/23/2010 - 17:39 | 486193 Bartanist
Bartanist's picture

Anyway, just for grins, notice the pyramid motif on their buildings.

http://www.bis.org/press/photo_gallery.htm

Fri, 07/23/2010 - 23:33 | 486465 Oh regional Indian
Oh regional Indian's picture

Doo, the boot stamping on the face of mankind is not even invisible anymore.

Out in the open for all except the most "blind". This is the challenge phase.

We'll do this to you, will you squeal?

Sitchin's work is impeccable but the fact is that India has even older creation mythology. SO, who really knows.

I guess only the future ever really clarifies the past.

ORI

http://aadivaahan.wordpress.com

Sat, 07/24/2010 - 07:32 | 486604 Walt Whitman
Walt Whitman's picture

"When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle."

     -Edmund Burke (1770)

Fri, 07/23/2010 - 18:53 | 486269 New_Meat
New_Meat's picture

#485259

Hey, God, waddya think?

- Ned

Fri, 07/23/2010 - 21:24 | 486369 Snidley Whipsnae
Snidley Whipsnae's picture

"the planet Nibiru is not due for its reappearance for another millenia."

How do the folks on Nibiru stay warm when their planet's elongated orbit takes them so far from the sun that it looks like another tiny star? Extended low temp of near absolute zero. Just askin'

Fri, 07/23/2010 - 21:38 | 486380 trav7777
trav7777's picture

blankets made out of Krugerrands?

Fri, 07/23/2010 - 21:39 | 486382 robobbob
robobbob's picture

gold fueled furnaces

that's why they need so much

Fri, 07/23/2010 - 22:16 | 486419 Bartanist
Bartanist's picture

No Clue ... never been there. We who live on the surface of earth would have to guess because we have no first hand knowledge. Is it impossible? ... Again, I do not know. But, what I do know is that scientists originally vastly underestimated the age of the earth based on the temperature of the core because they did not take into consideration the heat generating effects of radioactive decay.

So, can you tell me why the earth has both gravity and a magnetic field? How does it work and why?

Sat, 07/24/2010 - 06:38 | 486589 Bringin It
Bringin It's picture

So, can you tell me why the earth has both gravity and a magnetic field? How does it work and why?

That's a pretty good answer.


Fri, 07/23/2010 - 10:46 | 485263 snowball777
snowball777's picture

Portugal. 389 >= 374. And they're hole is about $14B deep.

Fri, 07/23/2010 - 10:47 | 485266 ShaneAshton
ShaneAshton's picture

Lengthy and informative...i just wanna know how and when these criminals will hang for their treason and i can retire by selling my krugerrands at $54k a piece

Fri, 07/23/2010 - 10:58 | 485280 anony
anony's picture

Query:

Can a sitting or squatting POTUS really, all by his lonesome, take the disUnited States off the gold standard?

 

 

Fri, 07/23/2010 - 12:42 | 485583 Geoff-UK
Geoff-UK's picture

Are you asking a legal question, or a reality question?

Cuz the answers are 'no' and 'yes', respectively.

Progressives have fought clear laws and clear execution of same since the first Progressive was spawned from Satan's bowels.

Fri, 07/23/2010 - 11:01 | 485286 Cognitive Dissonance
Cognitive Dissonance's picture

"Who is this Bank of International Settlements and who controls it?"

I always say that the BIS is the central banks central banker. The BIS is the maestro, the conductor, the center of the universe and where all power flows from and to. The players behind the BIS are the secret hands, the powers that be, the gods of our world. They will never grace the cover of Time or be mentioned in Forbes, at least not by their real names. If you know who they are, you're instantly dangerous to them.

Cue the black helicopters.

Fri, 07/23/2010 - 11:53 | 485373 GoinFawr
GoinFawr's picture

"Therefore if the BIS was to do a gold swap of the magnitude of 349 metric tonnes, then board member Ben Bernanke would have known of it in advance and approved it. He would know exactly who the transaction was with and why..."

Uh, Privately owned, non-military helicopters can be black too, right? 

Regards

Fri, 07/23/2010 - 12:01 | 485439 Cognitive Dissonance
Cognitive Dissonance's picture

If you mean those black helicopters owned by CSC, SAIC, Xe (Blackwater), DynCorp, Booz Allen Hamilton, CACI and so on, then YES I include them. Especially them because most of the really dirty illegal (for the government) work is now done by "private contractor", particularly those on the Fortune 500 list.

Fri, 07/23/2010 - 14:31 | 485885 carbonmutant
carbonmutant's picture

That and Black Glass Vans...

Fri, 07/23/2010 - 13:05 | 485660 HumbleServant
HumbleServant's picture

I would think that by now the Zero Hedge community would be a group of the most faithful Christians in the world.

We can all see the book of Revelations playing right out in front of our eyes while the vast majority of Americans are most concerned about when Lindsey Lohan is getting out of jail.

Even as recently as the 1990's, could you have realistically envisioned some kind of a mark that was required to be able to make any economic transaction?  When all of this collapses, I could easily see a one-world electronic currency controlled by the BIS.

Could you have ever realistically thought of a way that there could be a one-world leader that ruled from somewhere in Europe?  With everybody having instant worlwide visual communications on their personal telephone now, it is very possible.

The great news is that God is not going to let his children who have placed their faith in Jesus Christ live through the coming hell.

When is it going to be?  Nobody knows but I would rather be 10 years early than one day late.

There are no atheists in fox holes.

Fri, 07/23/2010 - 13:20 | 485713 Carl Marks
Carl Marks's picture

Allahu Akbar

Fri, 07/23/2010 - 17:59 | 486218 HumbleServant
HumbleServant's picture

I once heard a preacher talking about a debate he had with an atheist.  They went back and forth and it finally came down to the fact that neither one of them could absolutely prove or disprove the existance of God.

The preacher said in his final statement that he could provide a list of hundreds of people he personally knew that would testify that their lives had been radically changed by Jesus Christ.  People who had literally been in the gutter, suicidal, drug addicts, alcoholics, abusers, murderers and on and on that now had lives that would be considered rich and fulfilling by all standards.  Lives with happy marriages, productive jobs, fulfilling relationships and generally full of love.  In other words, multi-decade, quantifiable results that showed the evidence of a radically changed life that all parties would agree indicated a happy, well adjusted person. 

He asked the athiest how many people he could list whose lives had been radically transformed through atheism.  The atheist said none.

Fri, 07/23/2010 - 18:44 | 486256 jesusfreakinco
jesusfreakinco's picture

I am one!  Betcha couldn't have guessed that, eh?

Fri, 07/23/2010 - 19:00 | 486275 Sabremesh
Sabremesh's picture

As far as religious brainwashing goes, this is quite clever, but how is it relevant to the topic?Can't you find somewhere else to do your happy-clappy stuff?

Fri, 07/23/2010 - 20:01 | 486315 gmrpeabody
gmrpeabody's picture

Uh....., you mean the topic of alien peoples that came to Earth thousands of years ago and genetically engineered man so we could mine gold for them? That topic?

Sat, 07/24/2010 - 01:26 | 486533 Trial of the Pyx
Trial of the Pyx's picture

guffaw

Fri, 07/23/2010 - 18:48 | 486264 jesusfreakinco
jesusfreakinco's picture

Island_dweller,

I watched the video.  I found it to be quite entertaining actually, even though I am a born-again Christian.  You can cite the 'apparent' contradictions, but you can't refute my estimony.  I was once lost and now I am found.

John 3:16 For God so loved the world that he gave his one and only Son,[a] that whoever believes in him shall not perish but have eternal life.

It says whoever shall believe in HIM, not whoever shall believe in the Bible.  The Bible is an instrument of His truth, not THE instrument.   Jesus is THE instrument.

Name another who has risen from the dead after being in the tomb for three days?

Fri, 07/23/2010 - 22:46 | 486442 Bringin It
Bringin It's picture

Well, there is Lazarus ...

And then ther's this.

"You see, in Egyptian mythology it was the role of the son of God and saviour, Horus, to raise his father, Osiris, from the dead and in a sense resurrect himself, as Horus was Osiris resurrected."

http://www.redicecreations.com/specialreports/2006/03mar/masonserpent.ht...

and this -

http://www.paganizingfaithofyeshua.netfirms.com/raise_lazarus_truth_sun_...

Moses was way off course.  The "promised land" is Kashmir.  You have to dig a little deeper. ... or not.  Up to you.

Sat, 07/24/2010 - 00:29 | 486499 Bringin It
Bringin It's picture

This is good to.

"Jesus as a Reincarnation of Horus"

http://www.near-death.com/experiences/origen046.html

 

Sat, 07/24/2010 - 04:46 | 486573 Oh regional Indian
Oh regional Indian's picture

Interesting links.

Thanks. Share more if possible? I like to see what other off-the-wallers read.

ORI

http://aadivaahan.wordpress.com

Mon, 07/26/2010 - 22:24 | 489628 Bringin It
Bringin It's picture

ORI - I have a great book titled - "Jesus Died in India".  On the back cover it has the strange words - Not for sale in North America.

The story goes that Jesus escaped Herod's henchmen by fleeing to Egypt, specifically Alexandria, where his subsequent upbringing exposed him to Egyptian beliefs and Buddhist teachings.  Alexandria was a/the main trans-shipping point between India and the Mediteranean via the Red Sea.

So many of the psalms are similar to the sutras that predated Jesus by 500 years.  Compassion modified the depiction of the firey God of the old testament.  When He returned and started teaching he lived with, hung around with the Essenes who Essenes led a strictly celebate and communal life as in a monestary. ...  And it goes on from there, leading to the conclusion that the saints shrine in Srinagar contains the body of a holy man with his hands and feet pierced.

Have you ever run across any of this?

A lot of the West behaves as if hermeticly sealed off from those unrestrained thinkers out East.  Yet one of the last Pharos -Ptolemy, father of Cleoptra was formerly a general in Alexander's army that invaded and conquered the Indus River valley, home of the Vedas.

Namaste

ps. I went to your site and read a story about not taking baths which kind of put me off.  It's not so bad it I don't ever take a bath maybe, but if all the people around me don't, then that's a different kettle of fish entirely ;-)

Tue, 07/27/2010 - 12:10 | 490330 thisandthat
thisandthat's picture

Very interesting, thanks.

Sat, 07/24/2010 - 15:27 | 486974 Blankman
Blankman's picture

Who wrote the bible?  Man, not god nor jesus.  Belief in oneself is stronger than any belief in organized religion.

 

"I am like God and God like Me.  I am as large as God. He is as small as I. He cannot above me nor I beneath him."

- Angelus Silesius


 

 


Sat, 07/24/2010 - 06:41 | 486590 Bringin It
Bringin It's picture

Well said.

Yet 9 junks so far.

 

Fri, 07/23/2010 - 14:49 | 485928 zapdude
zapdude's picture

I'm with you, brother, but we're a quiet minority.

The reality is "wide is the gate and broad is the road that leads to destruction, and many enter through it.  But small is the gate and narrow the road that leads to life, and only a few find it." (Matt. 7:13-14)

Guys, you can't take your money with you (what little we may have left after all the crooks & thieves!), so think about where you will spend eternity, because we all will die someday. 

And besides, this skullduggery has been going on for thousands of years in various forms and levels of complexity, all because of mankind's greedy and selfish nature.  The connected dots go back a long, long way.  Certain doom seemingly lies ahead -- but I know how it ends.  The 'good guys' win.

I will be a solid fan of ZH for a long time.  I am a Christian forever.

Fri, 07/23/2010 - 15:26 | 486011 20smoney
20smoney's picture

Amen.. for more, I'd encourage you to read the following: http://20smoney.com/2010/07/20/the-bible-the-american-dream/

Fri, 07/23/2010 - 16:24 | 486105 zapdude
zapdude's picture

Great article, 20, thanks.  "Radical" sounds like a book I should read.

The "American Deam" indeed -- it lasts only as long as you're comfortable & asleep.

And I don't expect Fawr or Furker to accept or understand...

Fri, 07/23/2010 - 15:53 | 486054 UncleFurker
UncleFurker's picture

 

Not quiet enough, unfortunately.

 

 

Fri, 07/23/2010 - 21:43 | 486385 Uros Slokar
Uros Slokar's picture

Amen to that.

Fri, 07/23/2010 - 16:23 | 486103 HumbleServant
HumbleServant's picture

You know, I read somewhere that on a long enough timeline the survival rate for everyone drops to zero.

Fri, 07/23/2010 - 22:04 | 486413 nmewn
nmewn's picture

I have always marveled at those who scream at those with religious views, especially Christian views.

Yet when fearing the end of their life on this Earth, whether being chased by a bear, a murderous meth head or even in a passionate embrace to bring forth life they always scream one name consistently ;-)

Sat, 07/24/2010 - 00:03 | 486482 False_Profit
False_Profit's picture

Gott mit uns...

Sun, 07/25/2010 - 12:19 | 487592 andy55
andy55's picture

"In every country and every age, the priest has been hostile to liberty."
~ Thomas Jefferson

Sun, 07/25/2010 - 14:57 | 487718 thisandthat
thisandthat's picture

TJ, like all the main "founding fathers" was a mason, so, not really impartial on that issue - the same could more than well apply to their own hierarchy, for instance...

Fri, 07/23/2010 - 21:34 | 486375 Smu the Wonderhorse
Smu the Wonderhorse's picture

Orthodox Christianity, my friends.  Keeping the faith for twenty centuries.  Accept no substitutes.

http://www.orthodoxinfo.com/

Fri, 07/23/2010 - 15:32 | 486022 GoinFawr
GoinFawr's picture

I'm sorry, but don't the three Abrahamics all believe that Jesus rode dinousaurs?

http://www.moronail.net/img/6560_truth-about-evolution

Then again

http://www.moronail.net/img/6592_jesus-saves

I admit that might be a decent place to store your gold coins...

I just know that I am going to regret not staying out of this, but I take the Marcus Brigstocke line when it comes to the believers in 'magic'.

http://www.youtube.com/watch?v=l5pARGk5S4Q&feature=PlayList&p=A013CB5E3A79B3A2&playnext=1&index=38

Regards

Fri, 07/23/2010 - 15:51 | 486050 UncleFurker
UncleFurker's picture

 

I'll pass, but thanks for the offer.

But send me your cars and flat screen TV's. You won't be needing them, will you?

 

 

Fri, 07/23/2010 - 21:34 | 486377 Snidley Whipsnae
Snidley Whipsnae's picture

I'm with you. Bring on the rapture...Go up already! I'm really, really, tired of listening to these dog freaks on a thread about the BIS.

Fri, 07/23/2010 - 19:22 | 486290 brushfire
brushfire's picture

thankfully im not in a fox hole. that would surely cloud my thinking, tricking me into believing some ridiclulous bullshit in the interest of maintaing my own sanity.

Fri, 07/23/2010 - 21:53 | 486399 slobbermut
slobbermut's picture

Very exciting times for those who discern the writing on the wall.  Just as you say, before our very eyes we see prophesy take shape.  No guarantee that Christians won't suffer great tribulation and even death though, only that we are not appointed to suffer the specific deception to come upon the world nor the specific wrath of Him to whom we must all give account.  Enter through the 'narrow' gate my friends, for broad the road and wide the gate that leads to destruction.  Never Ever take that mark, no matter what - all who take the mark seal their fate for eternity. 

(1)  “He was granted power to give breath to the image of the beast, that the image of the beast should both speak and cause as many as would not worship the image of the beast to be killed.

And he causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name."    (Revelation 13:15-17)

 

(2)  Then a third angel followed them, saying with a loud voice, “If anyone worships the beast and his image, and receives his mark on his forehead or on his hand, he himself shall also drink of the wine of the wrath of God, which is poured out full strength into the cup of His indignation.

And he shall be tormented with fire and brimstone in the presence of the holy angels and in the presence of the Lamb. And the smoke of their torment ascends forever and ever; and they have no rest day or night, who worship the beast and his image, and whoever receives the mark of his name.”   (Revelation 14:9-11)

*Remember - the Apostle Paul called the preaching of the gospel 'foolishness' to those who are perishing.

Sat, 07/24/2010 - 09:56 | 486677 HumbleServant
HumbleServant's picture

Well said.

Fri, 07/23/2010 - 14:19 | 485862 ATTILA THE WIMP
ATTILA THE WIMP's picture

The BIS is loaded with Bilderbergers and Trilateral Commission members.

http://www.cabiz.net/vincent/worldgovt.htm

Scroll down above link and observe graph of connections on right side.

More incest here than Rothschild family tree.

 

Fri, 07/23/2010 - 15:01 | 485953 DavidPierre
DavidPierre's picture

Very often, if you want an explanation for things
that seem to be beyond explanation, you can profit
from looking to the past.

This interview - recorded nearly 30 years ago about
events that took place over 60 years ago - is one
of the most remarkable bits of video I've ever
seen. 

An hour long ... great late night viewing.

http://sn126w.snt126.mail.live.com/default.aspx?rru=inbox

Fri, 07/23/2010 - 15:10 | 485975 Cognitive Dissonance
Cognitive Dissonance's picture

Clicking the link brings me to a page where I'm being asked to sign in to Hotmail. Not likely.

Do you have the correct link? Are you linking me to your e-mail account (the last word in the link is "inbox") or a web site that requires Windows Live Hotmail?

Fri, 07/23/2010 - 16:22 | 486102 DavidPierre
DavidPierre's picture

SORRY!

Posted wrong link...

Here's the correct one

http://www.brasschecktv.com/page/898.html

Fri, 07/23/2010 - 17:31 | 486185 Island_Dweller
Island_Dweller's picture

please get rid of the first bogus link......

Fri, 07/23/2010 - 19:00 | 486274 DavidPierre
DavidPierre's picture

How ?????

Fri, 07/23/2010 - 21:55 | 486403 Iam_Silverman
Iam_Silverman's picture

How?

Look below your initial post.  You should see the word "edit".  Click on that and have a blast.

Of course you must be logged in to see that option.  I use it a lot.  Sometimes my fingers type things that don't make scents.  <--Dammit, see what I mean?

Fri, 07/23/2010 - 23:20 | 486460 GoinFawr
GoinFawr's picture

Tyr edittting that nou, wafter a reeeplie.

oops

Sat, 07/24/2010 - 08:07 | 486617 Cognitive Dissonance
Cognitive Dissonance's picture

As GoinFawr already knows, once a post has been responded to, it can no longer be edited. Thus the incorrect link can not be removed unless by Tyler or Marla, who rarely (if ever) interfere with us mere mortals.

Sat, 07/24/2010 - 22:48 | 487224 Iam_Silverman
Iam_Silverman's picture

Yes - I am now knowing.

Does that make sense?  It was a quote from some Indian character I saw once.

Nonetheless, ya'll are spot on.  Once someone else has pointed out your shortcoming - it is there for all to see, for ever and ever....

Fri, 07/23/2010 - 23:29 | 486463 Hephasteus
Hephasteus's picture

Weird I ran into that video a couple years back when I was trying to figure out what the hell happened to education.

Fri, 07/23/2010 - 16:18 | 486093 ATG
ATG's picture

The BIS used to trade shares with Nestle on the Swiss exchange.

Most shares owned in corporate nominee name concealing Rothschield and Rockefeller ownership of usury banks around the world.

Some speculated Jewish Nazi Swiss confiscated gold found its way to BIS.

The founder of Bilderberg was SS.

Whatever. We do not lose power until we give it away, and knowledge is power.

One way to get more gold is to shake it out of weak hands with merciless selloffs.

Also works with real estate and stocks financed by bonds...

http://socioecohistory.wordpress.com/2009/08/10/who-owns-the-federal-res...

Fri, 07/23/2010 - 21:44 | 486386 robobbob
robobbob's picture

names. actual names

who are they? what do they look like? where do they operate from?

you can't issue an arrest warrant naming "TPTB"

 

Fri, 07/23/2010 - 21:57 | 486405 Iam_Silverman
Iam_Silverman's picture

"you can't issue an arrest warrant naming "TPTB""

I have seen indictments listing "et al" though.

Fri, 07/23/2010 - 22:38 | 486440 Brutlstrudl
Brutlstrudl's picture

We know but we don't know

Fri, 07/23/2010 - 11:02 | 485289 cbaba
cbaba's picture

 biggest organization on earth:

BIS is owned by many banks which are the tentacles of Godmansucks  aka vampire squid.

They own FED , Bank of England , UBS, Deutshe bank, Barclays, and many Us group banks such as MS, JPM, City, BOA etc... they are controlled by GS and GS is controlled by Rothschild Family.

Their wealth is estimated as 7 trillion dollars.

They control all Gold  in vaults.

 

 

Fri, 07/23/2010 - 11:52 | 485404 The Rock
The Rock's picture

BINGO!!

The Rothschild-Owned Central Banks of the World

Afghanistan: Bank of Afghanistan
Albania: Bank of Albania
Algeria: Bank of Algeria
Argentina: Central Bank of Argentina
Armenia: Central Bank of Armenia
Aruba: Central Bank of Aruba
Australia: Reserve Bank of Australia
Austria: Austrian National Bank
Azerbaijan: Central Bank of Azerbaijan Republic
Bahamas: Central Bank of The Bahamas
Bahrain: Central Bank of Bahrain
Bangladesh: Bangladesh Bank
Barbados: Central Bank of Barbados
Belarus: National Bank of the Republic of Belarus
Belgium: National Bank of Belgium
Belize: Central Bank of Belize
Benin: Central Bank of West African States (BCEAO)
Bermuda: Bermuda Monetary Authority
Bhutan: Royal Monetary Authority of Bhutan
Bolivia: Central Bank of Bolivia
Bosnia: Central Bank of Bosnia and Herzegovina
Botswana: Bank of Botswana
Brazil: Central Bank of Brazil
Bulgaria: Bulgarian National Bank
Burkina Faso: Central Bank of West African States (BCEAO)
Burundi: Bank of the Republic of Burundi
Cambodia: National Bank of Cambodia
Cameroon: Bank of Central African States
Canada: Bank of Canada – Banque du Canada
Cayman Islands: Cayman Islands Monetary Authority
Central African Republic: Bank of Central African States
Chad: Bank of Central African States
Chile: Central Bank of Chile
China: The People’s Bank of China
Colombia: Bank of the Republic
Comoros: Central Bank of Comoros
Congo: Bank of Central African States
Costa Rica: Central Bank of Costa Rica
Côte d’Ivoire: Central Bank of West African States (BCEAO)
Croatia: Croatian National Bank
Cuba: Central Bank of Cuba
Cyprus: Central Bank of Cyprus
Czech Republic: Czech National Bank
Denmark: National Bank of Denmark
Dominican Republic: Central Bank of the Dominican Republic
East Caribbean area: Eastern Caribbean Central Bank
Ecuador: Central Bank of Ecuador
Egypt: Central Bank of Egypt
El Salvador: Central Reserve Bank of El Salvador
Equatorial Guinea: Bank of Central African States
Estonia: Bank of Estonia
Ethiopia: National Bank of Ethiopia
European Union: European Central Bank
Fiji: Reserve Bank of Fiji
Finland: Bank of Finland
France: Bank of France
Gabon: Bank of Central African States
The Gambia: Central Bank of The Gambia
Georgia: National Bank of Georgia
Germany: Deutsche Bundesbank
Ghana: Bank of Ghana
Greece: Bank of Greece
Guatemala: Bank of Guatemala
Guinea Bissau: Central Bank of West African States (BCEAO)
Guyana: Bank of Guyana
Haiti: Central Bank of Haiti
Honduras: Central Bank of Honduras
Hong Kong: Hong Kong Monetary Authority
Hungary: Magyar Nemzeti Bank
Iceland: Central Bank of Iceland
India: Reserve Bank of India
Indonesia: Bank Indonesia
Iran: The Central Bank of the Islamic Republic of Iran
Iraq: Central Bank of Iraq
Ireland: Central Bank and Financial Services Authority of Ireland
Israel: Bank of Israel
Italy: Bank of Italy
Jamaica: Bank of Jamaica
Japan: Bank of Japan
Jordan: Central Bank of Jordan
Kazakhstan: National Bank of Kazakhstan
Kenya: Central Bank of Kenya
Korea: Bank of Korea
Kuwait: Central Bank of Kuwait
Kyrgyzstan: National Bank of the Kyrgyz Republic
Latvia: Bank of Latvia
Lebanon: Central Bank of Lebanon
Lesotho: Central Bank of Lesotho
Libya: Central Bank of Libya
Lithuania: Bank of Lithuania
Luxembourg: Central Bank of Luxembourg
Macao: Monetary Authority of Macao
Macedonia: National Bank of the Republic of Macedonia
Madagascar: Central Bank of Madagascar
Malawi: Reserve Bank of Malawi
Malaysia: Central Bank of Malaysia
Mali: Central Bank of West African States (BCEAO)
Malta: Central Bank of Malta
Mauritius: Bank of Mauritius
Mexico: Bank of Mexico
Moldova: National Bank of Moldova
Mongolia: Bank of Mongolia
Montenegro: Central Bank of Montenegro
Morocco: Bank of Morocco
Mozambique: Bank of Mozambique
Namibia: Bank of Namibia
Nepal: Central Bank of Nepal
Netherlands: Netherlands Bank
Netherlands Antilles: Bank of the Netherlands Antilles
New Zealand: Reserve Bank of New Zealand
Nicaragua: Central Bank of Nicaragua
Niger: Central Bank of West African States (BCEAO)
Nigeria: Central Bank of Nigeria
Norway: Central Bank of Norway
Oman: Central Bank of Oman
Pakistan: State Bank of Pakistan
Papua New Guinea: Bank of Papua New Guinea
Paraguay: Central Bank of Paraguay
Peru: Central Reserve Bank of Peru
Philippines: Bangko Sentral ng Pilipinas
Poland: National Bank of Poland
Portugal: Bank of Portugal
Qatar: Qatar Central Bank
Romania: National Bank of Romania
Russia: Central Bank of Russia
Rwanda: National Bank of Rwanda
San Marino: Central Bank of the Republic of San Marino
Samoa: Central Bank of Samoa
Saudi Arabia: Saudi Arabian Monetary Agency
Senegal: Central Bank of West African States (BCEAO)
Serbia: National Bank of Serbia
Seychelles: Central Bank of Seychelles
Sierra Leone: Bank of Sierra Leone
Singapore: Monetary Authority of Singapore
Slovakia: National Bank of Slovakia
Slovenia: Bank of Slovenia
Solomon Islands: Central Bank of Solomon Islands
South Africa: South African Reserve Bank
Spain: Bank of Spain
Sri Lanka: Central Bank of Sri Lanka
Sudan: Bank of Sudan
Surinam: Central Bank of Suriname
Swaziland: The Central Bank of Swaziland
Sweden: Sveriges Riksbank
Switzerland: Swiss National Bank
Tajikistan: National Bank of Tajikistan
Tanzania: Bank of Tanzania
Thailand: Bank of Thailand
Togo: Central Bank of West African States (BCEAO)
Tonga: National Reserve Bank of Tonga
Trinidad and Tobago: Central Bank of Trinidad and Tobago
Tunisia: Central Bank of Tunisia
Turkey: Central Bank of the Republic of Turkey
Uganda: Bank of Uganda
Ukraine: National Bank of Ukraine
United Arab Emirates: Central Bank of United Arab Emirates
United Kingdom: Bank of England
United States: The Dirty Nasty Stinky Fed, Federal Reserve Bank of New York
Uruguay: Central Bank of Uruguay
Vanuatu: Reserve Bank of Vanuatu
Venezuela: Central Bank of Venezuela
Vietnam: The State Bank of Vietnam
Yemen: Central Bank of Yemen
Zambia: Bank of Zambia
Zimbabwe: Reserve Bank of Zimbabwe

 

Fri, 07/23/2010 - 11:55 | 485422 Cognitive Dissonance
Cognitive Dissonance's picture

For those who didn't actually scan the list, this little gem jumped out when I went looking.

"United States: The Dirty Nasty Stinky Fed, Federal Reserve Bank of New York"

Fri, 07/23/2010 - 12:01 | 485435 The Rock
The Rock's picture

THE ROTHSCHILDS (1743)

A goldsmith named Amshall Moses Bower opened a counting house in Frankfurt Germany in 1743. He placed a Roman eagle on a red shield over the door prompting people to call his shop the Red Shield Firm pronounced in German as "Rothschild".

His son later changed his name to Rothschild when he inherited the business. Loaning money to individuals was all well and good but he soon found it much more profitable loaning money to governments and Kings. It always involved much bigger amounts, always secured from public taxes.

Once he got the hang of things he set his sights on the world by training his five sons in the art of money creation, before sending them out to the major financial centres of the world to create and dominate the central banking systems.

J.P. Morgan was thought by many to be the richest man in the world during the second world war, but upon his death it was discovered he was merely a lieutenant within the Rothschild empire owning only 19% of the J.P. Morgan Companies.

"There is but one power in Europe and that is Rothschild."
19th century French commentator 1

We will explore a little more about the richest family a little later, after we've had a look at:

1. Niall Ferguson, THE HOUSE OF ROTHSCHILD, Money's Prophets, 1798-1848

THE AMERICAN REVOLUTION (1764 - 1781)

By the mid 1700's Britain was at its height of power, but was also heavily in debt.

Since the creation of the Bank of England, they had suffered four costly wars and the total debt now stood at £140,000,000, (which in those days was a lot of money).

In order to make their interest payments to the bank, the British government set about a programme to try to raise revenues from their American colonies, largely through an extensive programme of taxation.

There was a shortage of material for minting coins in the colonies, so they began to print their own paper money, which they called Colonial Script. This provided a very successful means of exchange and also gave the colonies a sense of identity. Colonial Script was money provided to help the exchange of goods. It was debt free paper money not backed by gold or silver.

During a visit to Britain in 1763, The Bank of England asked Benjamin Franklin how he would account for the new found prosperity in the colonies. Franklin replied.

"That is simple. In the colonies we issue our own money. It is called Colonial Script. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers.

In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one."
Benjamin Franklin 1

America had learned that the people's confidence in the currency was all they needed, and they could be free of borrowing debts. That would mean being free of the Bank of England.

In Response the world's most powerful independent bank used its influence on the British parliament to press for the passing of the Currency Act of 1764.

This act made it illegal for the colonies to print their own money, and forced them to pay all future taxes to Britain in silver or gold.

Here is what Franklin said after that.

"In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed."
Benjamin Franklin

"The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction. The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the international bankers was the PRIME reason for the Revolutionary War."
Benjamin Franklin's autobiography

By the time the war began on 19th April 1775 much of the gold and silver had been taken by British taxation. They were left with no other choice but to print money to finance the war.

What is interesting here is that Colonial Script was actually working so well, it became a threat to the established economic system of the time.

The idea of issuing money as Franklin put it "in proper proportion to the demands of trade and industry" and not charging any interest, was not causing any problems or inflation. This unfortunately was alien to the Bank of England which only issued money for the sake of making a profit for its shareholder's.

1. Congressman Charles G. Binderup of Nebraska, Unrobing the Ghosts of Wall Street

THE BANK OF NORTH AMERICA (1781-1785)

If you can't beat them, join them, might well have been his argument when arms dealer, Robert Morris suggested he be allowed to set up a Bank of England style central bank in the USA in 1781.

Desperate for money, the $400,000 he proposed to deposit, to allow him to loan out many times that through fractional reserve banking, must have looked really attractive to the impoverished American Government.

Already spending the money they would be loaned, no one made a fuss when Robert Morris couldn't raise the deposit, and instead suggested he might use some gold, which had been loaned to America from France.

Once in, he simply used fractional reserve banking, and with the banks growing fortune he loaned to himself, and his friends the money to buy up all the remaining shares. The bank then began to loan out money multiplied by this new amount to eager politicians, who were probably too drunk with the new 'power cash' to notice or care how it was done.

The scam lasted five years until in 1785, with the value of American money dropping like a lead balloon. The banks charter didn't get renewed.

The shareholder's walking off with the interest did not go unnoticed by the governor.

"The rich will strive to establish their dominion and enslave the rest. They always did. They always will... They will have the same effect here as elsewhere, if we do not, by (the power of) government, keep them in their proper spheres."
Governor Morris 1

1. THE CONSTITUTIONAL CONVENTION OF 1787, 7/2

FIRST BANK OF THE UNITED STATES (1791-1811)

It worked once, it will work again. It's been six years. There are a lot of new hungry politicians. Let's give it a try. And so there it was, in 1791, the First Bank of the United States (BUS). Not only deceptively named to sound official, but also to take attention away from the real first bank which had been shut down.

Its initials however gave a clear indication that Americans were once again being taken for a ride. And true to its British model, the name of the investors was never revealed.

Having gotten away with it a second time, some of them probably wished Amshall Rothschild had picked a different time to make his pronouncement from his private central bank in Frankfurt.

"Let me issue and control a nation's money and I care not who writes the laws."
Mayer Amschel Rothschild, 1790

Not to worry, no one was listening, the American government borrowed 8.2 million dollars from the bank in the first 5 years and prices rose by 72%. This time round the money changer's had learned their lesson, they had guaranteed a twenty year charter.

The president, who could see an ever increasing debt, with no chance of ever paying back, had this to say.

"I wish it were possible to obtain a single amendment to our Constitution - taking from the federal government their power of borrowing."
Thomas Jefferson, 1798

While the independent press, who had not been bought off yet, called the scam "a great swindle, a vulture, a viper, and a cobra."

As with the real first bank, the government had been the only depositor to put up any real money, with the remainder being raised from loans the investors made to each other, using the magic of fractional reserve banking. When time came for renewal of the charter, the bankers were warning of bad times ahead if they didn't get what they wanted. The charter was not renewed.

Five month later Britain had attacked America and started the war of 1812.

Meanwhile a short time earlier, an independent Rothschild business, the Bank of France, was being looked upon with suspicion by none other than:

NAPOLEON (1803 - 1825)

He didn't trust the bank saying:

"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."
Napoleon Bonaparte, 1815

For both sides of a war to be loaned money from the same privately owned Central Bank is not unusual. Nothing generates debt like war. A Nation will borrow any amount to win. So naturally if the loser is kept going to the last straw in a vain hope of winning, then the more resources will be used up by the winning side before their victory is obtained more resources used, more loans taken out, more money made by the bankers; and even more amazing, the loans are usually given on condition that the victor pays the debts left by the loser.

In 1803, instead of borrowing from the bank, Napoleon sold territory west of the Mississippi to the 3rd President of the United States, Thomas Jefferson for 3 million dollars in gold; a deal known as the Louisiana Purchase.

Three million dollars richer, Napoleon quickly gathered together an army and set about conquering much of Europe.

Each place he went to, Napoleon found his opposition being financed by the Bank of England, making huge profits as Prussia, Austria and finally Russia all went heavily into debt trying to stop him.

Four years later, with the main French army in Russia, Nathan Rothschild took charge of a bold plan to smuggle a shipment of gold through France to finance an attack from Spain by the Duke of Wellington.

Wellington's attack from the south and other defeats eventually forced Napoleon into exile. However in 1815 he escaped from his banishment in Elba, an Island off the coast of Italy, and returned to Paris.

By March of that year Napoleon had equipped an army with the help of borrowed money from the Eubard Banking House of Paris.

With 74,000 French troops led by Napoleon, sizing up to meet 67,000 British and other European Troops 200 miles NE of Paris on June 18th 1815, it was a difficult one to call. Back in London, the real potential winner, Nathan Rothschild, was poised to strike in a bold plan to take control of the British stock market, the bond market, and possibly even the Bank of England.

Nathan, knowing that information is power, stationed his trusted agent named Rothworth near the battle field.

As soon as the battle was over Rothworth quickly returned to London, delivering the news to Rothschild 24 hours ahead of Wellington's courier.

A victory by Napoleon would have devastated Britain's financial system. Nathan stationed himself in his usual place next to an ancient pillar in the stock market.

This powerful man was not without observers as he hung his head, and began openly to sell huge numbers of British Government Bonds.

Reading this to mean that Napoleon must have won, everyone started to sell their British Bonds as well.

The bottom fell out of the market until you couldn't hardly give them away. Meanwhile Rothschild began to secretly buy up all the hugely devalued bonds at a fraction of what they were worth a few hours before.

In this way Nathan Rothschild captured more in one afternoon than the combined forces of Napoleon and Wellington had captured in their entire lifetime.

http://www.xat.org/xat/moneyhistory.html

http://www.xat.org/xat/usury.html

http://www.xat.org/xat/worldbank.html

 

Fri, 07/23/2010 - 12:45 | 485594 Blues Traveler
Blues Traveler's picture

Great Post Rock, thank you...Napoleon could have done some great things but he chose a road more traveled.

Fri, 07/23/2010 - 13:49 | 485797 seventree
seventree's picture

Good work. I have been aware of many pieces of this puzzle but never have seen them put together so neatly.

Colonial Script was a harbinger of America's future. Having nothing to do with the demands of trade or industry, it was concieved from the beginning as a way of financing the colonial wars, essentially getting merchants to donate their goods and services, and soldiers their energy and lives, for nothing since the Script by government intent had no backing and was intended to depreciate to zero which it eventually did.

America had learned that the people's confidence in the currency was all they needed, and they could be free of borrowing debts.

Fri, 07/23/2010 - 16:56 | 486113 ATG
ATG's picture

Burned by the worthless Continental funded by private farmers, small businessmen, patriots and foreign adversaries of Britain with hard-earned Spanish Silver Dollars and gold to fund the Revolution, the founding fathers backed the Dollar and Treasury Notes with gold and silver per the Constitution, and Copper per the Mint Act of 1792.

First Treasurer Alexander Hamilton, owner of the New York Bank and Post, lobbied Washington and Congress for the Whiskey Tax to redeem worthless Continentals for Europeans and his cronies and clients who bought up the worthless paper from sacrificed businessmen, farmers and patriots.

The Continental was redeemed by gold, silver and US Treasury debt secured by the Whiskey Tax, providing the first successful US Treasury Insider scandal.

Of course General and President Washington had to lead troops to fire on American citizens, most of them not paid for their great sacrifice in the Revolutionary War, to enforce the unpopular whisky "luxury" tax.

Seems whisky, like ammo and leather, was better currency than crop spoilage.

Aaron Burr administered the final verdict on that adulterous Caribbean Bastard schemer Hamilton by duel at 49 at the very site along the Hudson River in Weehawken New Jersey, where his eldest son has been killed by duel three years earlier.

http://en.wikipedia.org/wiki/Alexander_Hamilton

Thomas Jefferson, founder of the Democratic Republic Party, repealed the tax and laid the cornerstone for American liberty and prosperity.

Worth remembering gold changes hands with war, usually going to the bankers from the victors...

http://en.wikipedia.org/wiki/Whiskey_Rebellion

Fri, 07/23/2010 - 21:50 | 486393 Snidley Whipsnae
Snidley Whipsnae's picture

Thanks for pointing out Hamilton's roll. It was omitted in the long post above.

 

Fri, 07/23/2010 - 14:10 | 485846 greyghost
greyghost's picture

yep.....'UNITED STATES NOTES" the only money of the people of the united states of america!!!!!!!

Fri, 07/23/2010 - 14:35 | 485897 trav7777
trav7777's picture

like I keep sayin, all those palaces all over the world didn't build themselves...

Fri, 07/23/2010 - 23:05 | 486454 Bringin It
Bringin It's picture

Thanks for the list Rocky

Sat, 07/24/2010 - 03:23 | 486557 thisandthat
thisandthat's picture

Don't know what it matters for the purpose, but the Bank of Portugal was actually nationalized back in 1975.

Hypothetically, and playing into this scenario, the giving away of the gold, as claimed in the article (and the "suggestion" by Bloomberg, this week, for Portugal to do exactly that - give it away, to solve its woes) could relate to that fact: they don't control it, but it controls nothing, either, now - it would've just become nothing more than a state owned empty, broke bank shell.

But maybe you should do a better research, before posting - for example: Banco Central da Guiné-Bissau (BCGB) is the central bank of Guiné-Bissau, not what you listed.

Sat, 07/24/2010 - 10:40 | 486727 The Rock
The Rock's picture

I should have posted the source:

http://www.bis.org/cbanks.htm

 

Sun, 07/25/2010 - 06:14 | 487397 thisandthat
thisandthat's picture

My bad, BCGB was extinct quite sometime ago.

Sat, 07/24/2010 - 07:56 | 486612 Tense INDIAN
Tense INDIAN's picture

i cant believe that RBI is a Rothschild bank.....

Sat, 07/24/2010 - 10:39 | 486722 The Rock
The Rock's picture

Check out "For school Kids - Money Kumar & The Monetary Policy"

http://www.rbi.org.in/financialeducation/home.aspx

Sun, 07/25/2010 - 10:16 | 487492 OddFieldIsStrong
OddFieldIsStrong's picture

I have two questions:

1. Where does this list come from? Any citations/websites I could dig further?

2. Is there any central bank that is not on this list? I tried every country I could think of, and short of Brunei they are on the list.

 

Fri, 07/23/2010 - 11:05 | 485293 Pladizow
Pladizow's picture

This is good news for gold.

The more often it is utilized and therefore viewed as a currency, the better.

Fri, 07/23/2010 - 11:49 | 485402 Internet Tough Guy
Internet Tough Guy's picture

Yes, someone needed big liquidity and the only way to get it was with gold. Clearly gold is moving back to the center of the monetary system.

The BIS isn't going to tie its gold into SDRs though. SDRs are just a fiction that tries to mimic gold. BIS will clear international transactions with gold backing when the USD goes.

Fri, 07/23/2010 - 11:08 | 485299 BrianOFlanagan
BrianOFlanagan's picture

very interesting thought piece.  It makes sense that this could be indicative of how the central banks intend to create a global currency and use it re-inflate.  

...or it could've been just a simple everyday cash for commodity financing.

 

 

Fri, 07/23/2010 - 13:20 | 485712 The Rock
The Rock's picture

It is "Cash4Gold" on a worldwide sovereign basis!

Fri, 07/23/2010 - 11:08 | 485300 Bluntly Put
Bluntly Put's picture

I calculate a total value of about $615 million, that is at the book value of $50 per ounce. Just a minor aberration, no problems here move on.

Fri, 07/23/2010 - 22:03 | 486412 Iam_Silverman
Iam_Silverman's picture

"book value of $50 per ounce"

Rather interesting that the face value of an Gold American Eagle is $US50.00.  Would that be your reasoning for assuming a $50 book value?

Fri, 07/23/2010 - 11:09 | 485302 DarkMath
DarkMath's picture

This explanation of the Gold Swap seems like a stretch. I like this reasoning a lot better:

http://gata.org/node/8850

The Comex is simply running out of Registered Gold that it can lease. While Comex Gold investories are at an all time high most of that Gold is termed "Eligible" or not for lease. Comex had a major Gold infusion in December/January at the exact time the BIS Gold Swap occured.

The Comex is simply running out of Gold and Silver. In fact it did run out of Silver this month but escaped the hangman's noose by paying a huge premium to settle in cash:

http://harveyorgan.blogspot.com/

"What does this mean?  Simply the comex is in trouble and sought help from the customer.
It leased 490,000 oz of pure silver and must have paid a huge premium.  The customer
then bought with the proceeds an equal number of Sept contracts with a prayer that there is no default.He wins if the silver game is still alive in Sept.  He loses on a default but gains only with fiat money as his silver inventory is gone."

 

Fri, 07/23/2010 - 11:22 | 485316 BrianOFlanagan
BrianOFlanagan's picture

there seems to be some truth to their observations.  Registered inventories have been declining for both gold and silver and lease rates are negative.  But if there's really a supply shortage, wouldn't we see massive backwardation? Or I suppose, maybe that is going to happen shortly.

 

Fri, 07/23/2010 - 12:18 | 485504 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Nice Dennis Kneale avatar!

Fri, 07/23/2010 - 11:17 | 485314 Yikes
Yikes's picture

That's a lot to digest but what I take away from it is that the BIS would like to destroy the USD as a reserve currency by supplanting it with SDR's back by fractional gold.  Did I get that right?  If so, how likely is their objective?

 

He's reading alot into that gold swap.

Fri, 07/23/2010 - 11:17 | 485319 Bluntly Put
Bluntly Put's picture

I think it's more of a hedge. Could be wrong.

Fri, 07/23/2010 - 12:14 | 485489 Internet Tough Guy
Internet Tough Guy's picture

SDRs are issued by the IMF, not BIS. BIS will use gold to support international liquidity after the USD falls as reserve currency. SDR is just another ponzi by the US, no one will buy into it, the Russians and Chinese have already turned it down.

Fri, 07/23/2010 - 21:55 | 486404 Snidley Whipsnae
Snidley Whipsnae's picture

Menawhile, the Chinese have their own ideas about what a world reserve currency should be...

"Chinese Central Bank Outlines Plan To Ditch the Dollar as Yuan's Peg"

"

Hu Xiaolian, deputy governor at the Chinese central bank, has released a paper which suggests it's soon time for China to peg the yuan to a basket of foreign currencies, rather than the U.S. dollar alone.

This especially makes sense for China given that, going forward, the U.S. might not the voracious consumer it once was. Thus tying itself at the hip to the dollar might not be as useful as it was before."

Read more: http://www.businessinsider.com/china-yuan-currency-basket-change-2010-7#ixzz0uYp337ZE

Fri, 07/23/2010 - 11:18 | 485322 Amsterdammer
Fri, 07/23/2010 - 11:20 | 485327 DoctoRx
DoctoRx's picture

The author says:
I have been calling for a US Quantitative Easing QE II of $5T in my writings for some time. This amount is required for the US alone.

Is he actually recommending this?  What is the historical evidence to support unrestrained money printing, especially at a time when there has been no net decrease in the general price level?

Fri, 07/23/2010 - 12:45 | 485593 hamurobby
hamurobby's picture

Is he actually recommending this?  What is the historical evidence to support unrestrained money printing, especially at a time when there has been no net decrease in the general price level?

 

No, but its what he expects, Please read his Misky melt up, he lays out for the layman the possibilities and the outcomes (de/inflation) and why, with or without qe2.

Sure im in the deflation camp, but my fat finger is hovering over the buy button as we deflate. I dont expect for the Gov to let the economy slide, they need the tax revenues, and the fed cannot let asset values (RE) collapse further.

Fri, 07/23/2010 - 11:22 | 485330 tony bonn
tony bonn's picture

bis is another rockefeller / masters of the universe fraud...it is a financial arm of the military industrial complex working in complete coordination with the cia, mi6, and mossad...banking and covert operations go hand in hand....

an example of the fraud is in jim willie's latest article about billions of excess treasury sales over debt needs....he didn't say it but i will: it is all going into the masters of the universe fund which is closely related to bis and imf as the rockefuckus transfer all sovereignty to the transnationals....

these freaks have actually taken over the world and imbecile americans go for it...this financial crisis is nothing but a mirage to hide the raping and looting of national governments...

Fri, 07/23/2010 - 11:27 | 485344 snowball777
snowball777's picture

If they can't determine a 'who', then isn't it possible it is a plural (i.e. several sovereigns dipping into their reserves for short-term cash)?

The SNB funding their forex bravado is another possibility.

Fri, 07/23/2010 - 14:12 | 485849 Tearsinrain
Tearsinrain's picture

If not a 'who', perhaps a speculative why:

From the Telegraph (UK) 12 days ago -- reprinted by Infowars-Ireland

"The news that a mystery bank has just pawned the family jewels gave traders a jolt – nervous about the sudden transfer of almost 20pc of the world’s annual gold production and the possibility of a sell-off.

In a tiny footnote in its annual report, the bank disclosed its unusually large holding of gold, compared with nothing the year before. The disclosure was a large factor in the correction of the gold price this week, which fell below $1,200 for the first time in more than a month.

Concerns hinged on whether the BIS could potentially sell on this vast cache of bullion in the event of a default, flooding the market with liquidity. It appears to have raised $14bn for whoever’s been doing the swapping – small fry on the currency markets, but serious liquidity in the gold market.

Denominated in euros, gold has fallen 8pc since the beginning of the month and is now trading at a seven-week low of €937 per troy ounce.

The big gold exchange traded funds (ETFs) – having peaked at record inflows in May – have also been showing net outflows over the past few days.

Meanwhile, economists and gold market-watchers were determined to hunt down which bank is short of cash – curious about who is using their stash of precious metal for what looks suspiciously like a secret bailout.

At first it looked like the BIS was swapping gold with a troubled central bank. After all, the institution is the central bankers’ bank and its purpose to conduct transactions with national monetary authorities.

Central banks in the troubled southern zone of Europe were considered the most likely perpetrators.

According to the World Gold Council, central banks in Greece, Spain and Portugal held 112.2, 281.6 and 382.5 tons of gold respectively in June – leading analysts to point fingers at Portugal, or a combination of the three.

But Edel Tully, an analyst from UBS, noted that eurozone central banks would be severely limited with what they could do with the influx of extra cash – unable to transfer it straight to governments or make use of the primary bond markets.

She then listed the only other potential monetary authorities with enough gold as the US, China, Switzerland, Japan, Russia, India and Taiwan – and the International Monetary Fund.

This led to musings that the counterparty was the IMF, making sense because the lender of last resort is historically prone to cash shortages and has been quietly selling off gold in the first half of the year." More to read

Here is the Link:

http://info-wars.org/2010/07/12/secret-gold-swap-has-spooked-the-market/

 

 

Fri, 07/23/2010 - 11:40 | 485371 DaveyJones
DaveyJones's picture

"since the crisis was a direct result of unsound banking practices and possibly even felonious behavior"

possibly?

Fri, 07/23/2010 - 11:45 | 485386 Debtless
Debtless's picture

Gold is currency disaster insurance IMHO. Have some, don't look at it as a gain or loss until it's needed. Hopefully never.

Fri, 07/23/2010 - 11:46 | 485389 Heavy
Heavy's picture

I smell doom.

Fri, 07/23/2010 - 12:23 | 485520 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Are you sure that isn't Chumba you smell?  (sorry - I couldn't resist)

Fri, 07/23/2010 - 11:46 | 485390 Heavy
Heavy's picture

dbl post

Fri, 07/23/2010 - 11:46 | 485392 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Platinum, bastardz!

Fri, 07/23/2010 - 11:51 | 485412 mudduck
mudduck's picture

BIS has their lair in a hollowed out volcanoe accessable only by teleportation from an undisclosed location in Basel, or by a short ferry ride across the river Styx (cost; 2 peices of silver). A little known factiod is that when photographed from Mars the volcanoe lair is the right nostril of a face like image that is 3 times the size of Newfoundland.

Fri, 07/23/2010 - 16:25 | 486108 George the baby...
George the baby crusher's picture

I think you missed your medication time.

Fri, 07/23/2010 - 11:53 | 485417 simon says
simon says's picture

No crime is perfect.  There is an obvious weakness in Gordon Long's theory:  The breakdown of fiat monetary systems when supply chains get interrupted.  Societies switch to barter in a matter of days when supply chains get interrupted.   Only gold and other PMs will work as money in this "barter economy" because they are the only real stores of value.  The real question is:  What is it that keeps the supply chains humming in spite of the bogus money suppliers are getting for their output?  The answer is:  Blind Trust.  Its like trusting your spouse 100% until you find out he/she has had an affair.  The there is 100% no trust.  This is how these fake monetary systems will end.  The banking cartel is not as fearful as it is made out to be - it needs the power of the people to exert its force.  It will not have that power when it loses the people's trust  ...  the impetus for that will be the first major interruption in the global supply chain.

Fri, 07/23/2010 - 12:01 | 485438 RSDallas
RSDallas's picture

True, but the entire US system will gladly welcome a change after we experience a prolonged depressed state, one in which we have never before experienced.  It will be, at that time, discussed within the halls of congress as our only way out.

Fri, 07/23/2010 - 22:09 | 486415 Iam_Silverman
Iam_Silverman's picture

"Societies switch to barter in a matter of days when supply chains get interrupted."

Do you mean like: "here, have this load of smart bombs in exchange for your <insert commodity name here>"?

Fri, 07/23/2010 - 11:55 | 485420 RSDallas
RSDallas's picture

Sounds to me like this could be the mechanism wherein the US finally goes through a de facto default and everyone re-loads and off we go again.  The question is what % do we get to exchange our worthless pieces of paper for?

Fri, 07/23/2010 - 11:58 | 485430 almost_have_a_name
almost_have_a_name's picture

If they scoop up enough gold, they can drive the price up to intangible levels. Who, on main street, would hang a 50K chain around their neck ? What can you purchase with a 50k coin. It can't be sliced thin enough for main street's day to day trade.

With enough people perceiving it as 'out of reach' fashion or indivisible currency, demand will dry up. Psychologically, this would help dampen the 'gold standard' fever we see today.

So, how are they going to stop CraigsList ?

 (Next up for bid this beautiful heifer, Bessy : Do I here 45 45 45 Craigs, 46 46 46, 46.5 46.5 46.5, sold !)

 

 

 

 

Fri, 07/23/2010 - 12:11 | 485469 Internet Tough Guy
Internet Tough Guy's picture

High price would make gold the store of value, not jewelry. High price would also be enough to keep gold flowing as store of value, not as transactional money.

Fri, 07/23/2010 - 14:21 | 485868 ATM
ATM's picture

I think you're missing the point. If gold is 50k/oz that doesn't mean that it appreciates by 41x. It means that the dollar has depreciated and something that was 1200 bucks when gold was 1200 is also now $50,000. You're trading that $50,000 gold coin for a $50,000 ma'ns suit.

when the dollar starts depreciating like that then people will stop accepting it as an exchange medium because it's store of value ability will be gone. The only reason it is perceived to have any value today is because people haven't woken up to the fact that the dollar is dead already and printing trillions more of them is the only option government has going forward.

 

Contrary to your belief, this will only increase the demand for gold ans people swarm to trade their paper for the shiny metal before they can't get even one ounce for $100,00, $1,000,000 or $1,000,000,000,000 as that crisp $100 trillion Zimbabwe on my wall attests. People will not trade anything real for a dollar bill. Why would they? It loses value faster than an open jar of mayonaise sitting on my picnic table in todays 95 degree heat.

How are they goping to stop Craigslist? You haven't been listeing lately have you? They are installing the infrastructure to monitor all of the trading, swaping, pay, buying, selling etc and they also have their friendly spooks inside Google. An additional 650,000 IRS stormtroopers? Just the beginning.

 

 

Fri, 07/23/2010 - 18:46 | 486261 Implicit simplicit
Implicit simplicit's picture

Temporary firewalled communiites could be built and dismantled quickly with passwords for member entry, as the  digital wars begin. These passwords could be sent by short wave radio messages that are coded if phones are not viable. Satellites, towers, and  hardlines could be hacked.

Sat, 07/24/2010 - 02:41 | 486552 SilverIsKing
SilverIsKing's picture

"You're trading that $50,000 gold coin for a $50,000 mans suit."

Perhaps but how's this?

"Trading five $50,000 gold coins to pay off a $250,000 mortgage."

Better?

Fri, 07/23/2010 - 14:29 | 485882 Walt Whitman
Walt Whitman's picture

So, how are they going to stop CraigsList ?

By shutting down the internet with a false flag cyber attack, given all the chatter about Protecting Cyberspace as a National Asset Act (S. 3480)...

- Coming soon to a flat screen near you.

Conspiracy theory, misplaced fear, grasping at straws?

Where are the events of the last few years leading? Really rough seas ahead, if this is true. The elite have cycled economies through peaks and troughs for centuries. Nothing has changed except the scale of their treachery. Treason will be too good for them; long, painful torture for them may suffice as justice for their crimes against humanity.

This post by Gordon Long may be one of the most important ever posted on the esteemed zerohedge.com.

One more important question might be...

If the Portuguese do not own the gold in their vaults, who owns the gold in Fort Knox?

Sat, 07/24/2010 - 00:07 | 486484 Oh regional Indian
Oh regional Indian's picture

Knox Knox

Who's there?

No body. Just kidding.

Actually, is there gold in Fort Knox?

The elephant that dwarfs all other gold considerations remains invisible and naked!

Good question Walt.

ORI

http://aadivaahan.wordpress.com

Sat, 07/24/2010 - 04:04 | 486564 thisandthat
thisandthat's picture

Portuguese gold has been in Fort Knox all along - as the German, btw.

Fri, 07/23/2010 - 11:59 | 485433 Pooh-Bah
Pooh-Bah's picture

Many 'We Buy Gold' stores have cropped up in my area. I would like to know how much gold they are collecting and who they are reselling it to.

Fri, 07/23/2010 - 12:06 | 485452 almost_have_a_name
almost_have_a_name's picture

Good question, they could be minions of the central banks, funded by 'bail out' dollars.

 

Fri, 07/23/2010 - 14:47 | 485924 thesapein
thesapein's picture

probably mostly from jewelry, right? lots of people are just trying to sell what they can to survive right now. Do you say, no, hold your gold during these times, to someone who needs to eat today? It's sad, and I feel lucky for being able to hold.

Fri, 07/23/2010 - 22:11 | 486417 Iam_Silverman
Iam_Silverman's picture

"Do you say, no, hold your gold during these times, to someone who needs to eat today?"

Nope.  You say "Hey, I'll trade you this or that for your gold".

Fri, 07/23/2010 - 12:11 | 485470 Reese Bobby
Reese Bobby's picture

Surely our elected officials will get to the bottom of this!

http://www.youtube.com/watch?v=zNZczIgVXjg

 

Fri, 07/23/2010 - 12:13 | 485480 A_MacLaren
A_MacLaren's picture

Could it be Portugal?

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a1un98uhqUVg

"The 382.5 tons of gold that Portugal holds..."

Fri, 07/23/2010 - 21:54 | 486389 RockyRacoon
RockyRacoon's picture

The fact that Portugal's holdings are close to the swap doesn't mean it was Portugal.  I'd say that is coincidental.  Why would they put up all of their gold?   Better to be looking at someone with a holding much larger who put up only a fraction of their holdings.  Make sense?  That still narrows the field considerably since the really big gold holding entities would probably not need to swap -- we'd just print our own!

Fri, 07/23/2010 - 12:33 | 485554 P-K4
P-K4's picture

Not too worry, I checked their website and "the BIS strongly advises caution against fraudulent schemes." I'm going back to changing the cat liter.

Fri, 07/23/2010 - 12:37 | 485565 rlouis
rlouis's picture

Thanks Gordon, for sleuthing out Portugal, and also your research into the BIS - provided some real gold. I've kept the Quigley quote about the bankster's intention to run the world in a feudalist fashion close at hand for several years.  I couldn't read the windbag's Tragedy and Hope but highly recommend W. Cleon Skousen's Naked Capitalist interpretation of it as an excellent source of alt-history.  

Fri, 07/23/2010 - 12:40 | 485574 the grateful un...
the grateful unemployed's picture

The Bush people used double counting in the SPR to drive gasoline prices lower after Katrina. The SPR is technically made up of government, Salt Dome storage, and enterprise, or private storage. After Katrina SPR lent out to enterprise, but when it was time to return the oil, they did so only on paper.

When the tankers arrived in NY harbor, the enterprise people counted all the oil in their storage, inventory reports were high, but the crack spread kept widening. Eventually the oil traders got wise, and started ignoring inventory reports altogether. Gasoline demand was falling, so gas prices flattened out, while crude prices continued to climb. Some hedge funds were buying oil and storing it, and the BRIC countries started building SPR facilities, (an above ground storage tank adds about $3 to the price of a bbl of oil), and now of course China consumes more oil than the US. China and Russia also seek guarantees that the US manipulation of the currency exchange system will not be used to exploit their resources. 

Gold doesn't trade in a bubble.

 

,

Fri, 07/23/2010 - 13:51 | 485804 OutLookingIn
OutLookingIn's picture

Correction:

Total primary energy consumption in China has surpassed that of the U.S.

However, China and India with 40% of the world's population uses 2 barrels of oil per person per day. The U.S. uses 25 barrels per person per day!

Fri, 07/23/2010 - 14:08 | 485842 the grateful un...
the grateful unemployed's picture

correction notedcorrection noted, and the gold trade follows the energy trade, as the US extracts energy from the global market at bargain prices using a weak dollar policy. 

Fri, 07/23/2010 - 12:40 | 485577 Oquities
Oquities's picture

in constructing an SDR from a basket of goods, gold is weighty enough to accumulate in mass quantities.  but the other obvious elements for a new world SDR currency, such as agricultural commodities and energy cannot be collected so easily, without BIS taking ownership of futures/derivatives, etc.  if that's their goal, look for more gold swaps with troubled sovereign states, as gold should make up at least 25% of a global SDR unit.  SDR = Sovereign Dollar Replacement.

Fri, 07/23/2010 - 12:49 | 485607 Segestan
Segestan's picture

Miners need to form an association, a Gold OPEC so to speak, to set price before the banking cabal get supply ,.plays their ponzi gig on price controls.

Fri, 07/23/2010 - 12:54 | 485631 hound dog vigilante
hound dog vigilante's picture

 

BIS = NWO.

 

Yes, it is just that simple.

 

Fri, 07/23/2010 - 12:59 | 485646 laosuwan
laosuwan's picture

As I read this article I cannot help but wonder what it would be like without a free internet where sites like zero hedge can operate for those of us who dont fall for what the mainstream tells us. Can you imagine having to rely on Barons, The Wall Street Journal and Business Week as our sole source of info (lol). I am sure Obabma has plans for the web in the near future.  If we lose a free web for sites like zero hedge, we are doomed.

 

Anyway, the leasing of gold reminds me of the movie The Producers, where they over subscribe investors to the off broadway play Springtime for Hitler, hoping it will fail and they wont have to repay anybody, but the play actually becomes a smash hit. Could have been about gold leasing by Central Banks.

 

Own physical; its the only reason to play with gold.

Fri, 07/23/2010 - 13:05 | 485667 Geoff-UK
Geoff-UK's picture

Gold fraud compared to The Producers?  That's a FANTASTIC analogy.  And like Mel Brooks' masterpiece, the public doing the opposite of what you WANT them to do can ruin you financially.  Someone show this movie to Ben Bernake stat before he tries to push gold down again! 

MAN, this is the reason I effing love ZH.

Fri, 07/23/2010 - 13:06 | 485669 Blues Traveler
Blues Traveler's picture

Single interenet sign-on (it will be like a license plate #) is coming to a theatre near you.  Of course nobody wants it, people will protest it, but that will not stop these anti-americans..  It will be a trojan horse burried in some bill....its coming.

Fri, 07/23/2010 - 13:12 | 485686 Oquities
Oquities's picture

nah, they would have to get us addicted to the internet before that could happen..

Do NOT follow this link or you will be banned from the site!