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Guest Post: Ben Bernanke's Secret Philanthropy
Submitted by Simon Black of SovereignMan blog,
Legendary oilman T. Boone Pickens famously calls America’s oil imports ‘the greatest transfer of wealth in the history of the world.’
Pickens is referring to the money that is paid each year to oil exporting nations, particularly those in the Persian Gulf which raked in around $100 billion last year.
No doubt, this is an enormous transfer of wealth. But it’s a drop in the bucket compared to the TRILLIONS that Ben Bernanke gives the world’s elite.
Over the past few years, central banks have created trillions of dollars, most of which they loaned to commercial banks at 0%. The commercial banks then loaned this money to their best customers (and governments) at a slightly higher rate.
The end result is that a huge chunk of those trillions ended up in the pockets of a small handful of people. The banks and their best customers get sweetheart deals to make even more money, while the vast majority of people get screwed with inflation.
For example, the banks here in Singapore loan investment capital to their wealthiest customers at astoundingly low rates, between 0.25% and 1%! And with borrowed funds, they buy cash-producing assets which make even more money– stocks, real estate, and high-yield bonds.
Essentially they borrow at less than 1%, but generate a yield of 8% to 10% on the investment. The bank is practically giving them free money. I call this ‘philanthropy of the wealthy.’ And it starts with Mr. Bernanke.
Naturally, the average guy on the street doesn’t get these deals. Instead, he gets hit with inflation and watches his savings erode. Just this morning, in fact, they announced that Singapore’s inflation hit 4.7% in September, up from 3.9%.
This issue isn’t about rich vs. poor. Creditworthy investors are very sharp to take advantage of the opportunity. And it’s not about Singapore either, this is worldwide.
The issue lies within the system itself– that our ‘free society’ has awarded a tiny elite the supreme power to control the price of money. And in doing so, central bankers steal purchasing power from the many and benefiting the few.
The scale of this theft is in the trillions of dollars. It constitutes, by far, the greatest transfer of wealth in history, vastly exceeding America’s energy imports.
It’s an unconscionable, immoral, ridiculous game. But there’s good news– we can stop playing whenever we want. We don’t HAVE to hold their worthless currency. We don’t HAVE to keep transferring our purchasing power to an elite group. We can “opt-out”.
You see, the power they have is printing currency. So one easy way to opt out is to stop holding their paper, stop holding savings in dollars, euros, etc. Trade as much of their paper as you can for something REAL, especially physical precious metals.
And, in case one day they change the rules and try to FORCE us to hold their paper, it’s best to store your metal in a safe jurisdiction overseas, out of their reach.
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So if I keep picking at the Great Wall of China with a toothpick, eventually I'll break through? There is hope indeed!
Why does Tyler keep posting Simon Black's shit?
simon saved tyler's life in a boating accident years ago........................
To: InternetInfidel
Why do you continue to read Black's articles and post the same stupid comment so many others have?
Legendary oilman T. Boone Pickens famously calls America’s oil imports ‘the greatest transfer of wealth in the history of the world.’
Doesn't he mean the greatest transfer of wealth to America? Else it is the most Machavillian statement of all times.
Oil has real value...
Fiat currency is backed by the full faith and credit of the United States Government...
Like a game of musical chairs, you don't want to be the last country holding treasury debt when the music stops...
The Chinese understand this...
Soon there will be no oil to import at any price. You can always walk to Mc Donalds to work. I hope you like to eat rice, a lot of rice, because that's what you will be able to afford to eat if they don't remove Bernanke from his Godly stature.
Can someone tell me where Simon Black is wrong? Cus everyone is dumping on him, and he isn't wrong. Perhaps then, the shit flinging is because mr black is late to the party, again? Or rather, that he is wasting everyone's time with shit everyone whose anyone already knows?
OK I'll tell you since you don't seem to get it.
Simon has ZERO understanding of economics and finance, he just regurgitates random snippets of info and thinks that means comprehension.
Reading his stuff you can tell he is a complete moron, it is not a matter of factual mistakes, it is just constant shitty articles that contributes zero insight. ZERO fucking insight from Simon Blacks mixed puke of cliches and ego.
there's a whole world to invest in out there outside your stack Gentlemen, try looking over it sometime and broaden your outlook/mind to a range of options for your future security
Please, by all means SUGGEST a few, that are portable, and cannot be confiscated by taxation, or nationalization, or the tax rates raised so high you cannot afford to keep them.The wisest thing to do IMHO outside PM's is leasing or renting, owning property of any kind, is highly dangerous esp with the regime now in charge.
If we get a 4 peat, u can bet ur ass, property,farmland,etc will become part of the great property grab of the Commies.
At least w/PM's you can hide them, and you can market them off radar..............property(land/houses) is by virtue of what it is, not portable.
Because someone, somewhere, likes Chilean women who are shaped like fire plugs and almost as attractive... or maybe not.
For a moment I thought you had said, Chilean women ignite as quick as spark plugs. That would be the understatement of the day. They're faster and furiouser.
http://www.lucasbar.cl/caramelos
'Trade as much of their paper as you can for something REAL, especially physical precious metals.'
If there is one thing that makes me nervous as a PM investor, it is hearing Simon Black tell me to 'buy gold.' It sends cold contrarian shivers of terror down my spine.
''Why does Tyler keep posting Simon Black's shit?''
I believe Tyler has to pay the bills, the ads must not be cutting it.
Tyler posts this shit to pound it into your head that you HAVE to be in precious metals.
It's the only place to be.
Double post fail
+ 1
Happens to the best of us...
You got it. That's how the Grand Canyon was made.
we give them colored paper, they give us the lifeblood of our economy
who's transferring wealth to whom here?
+ 1
But those colored pieces of paper will fail. When? Beats me.
Be smart, and buy some real physical gold, you'll be glad you did!
This is a continuing giveaway at 85 Billion per month ... How and when does this stop
It stops when they give me $1 billion of that.
Which is to say: never.
It stops when the system collapses not before then.
It stops when WE collapse their windpipes, not before then.
fixed
It certainly makes nonsense of the Spending Cap doesn't it?
It stops when/if inflation increases to the point where even officially downplayed figures can't hide it any more.
We are trading our paper for Boone's Farm Strawberry. Great on ice.
"Legendary oilman T. Boone Pickens famously calls America’s oil imports ‘the greatest transfer of wealth in the history of the world."
The collapse of fiat is going to be the greatest and swiftest transfer of wealth in history. Beat the rush.
But they are committing these immoral crimes to make the world a better place to live.
yes i've felt materially better since Barney Frank crashed the US property market in unpayable debt and Barry O pissed away more money than any suicide socialist in history
socialism works for me, it's working wonders in Detroit, Chicago and New York, and especially on Wall Street
FOWARD !!!
Not till you see these manipulators being dragged down the streets, begging - no, screaming for mercy while being thrown at the gallows... will you see any real change.
All must turn from apathy to sympathy before we march for our freedoms. Till then you're just a shitty slave bitch.
Mob Justice is a two edged sword-
http://www.gistus.com/16886/aluu-4-video-brutal-murder-4-uniport-student...
In terms of ubiquity, mobility and utility on short notice, gallows and guillotine have long been surpassed by the humble woodchipper.
Simon, i agree the monopoly money systems are the biggest fraud and theft (transfer of wealth) of societies work.
I disagree metals however are any better at holding a persons wealth than paper currency in so far as all 'products' go up and down in price. Gold can rise 20% in a year in USD but stay flat in Singapore Dollars. If i was in Singapore the Sing' Dollars would be better in my hand than Gold which is alot harder to exchange
there's a world of monopolist money out there across the globe ...don't railtrack peoples thinking into a homage to Gold, that suggests bias and a certain stupidity toward using all available options
I've a stack of metals and foreign currency ...i feel better for the diversity and flexibility that portfolio offers me
oh bore, getting junked by tunnel vision Gold-bugs
there's a whole world to invest in out there outside your stack Gentlemen, try looking over it sometime and broaden your outlook/mind to a range of options for your future security
Well, at the moment all currencies are Dollar based and collapse of the Dollar will definitely effect almost any other currency with one exception. Chinese government buys a huge amount of Gold and, in my opinion, they will be ready to make renminbi Gold based at the time of Dollar collapse (but not a day earlier). Or,perhaps, even more definitely:the Dollar will collapse on their schedule. That will make renminbi a world reserve currency instantaneously. A funny ramification of this scenario is the idea promoted by many on this site that collapse of Dollar will mean a global collapse of the whole financial system. It is true only partially. Indeed, US will totally collapse and even those with physical Gold will not benefit from that (it will be either confiscated by the government or the situation deteriorate to the extent that the use of physical Gold as a medium of exchange will become simply too dangerous). Those people who are smart enough to move out of country before it happens and settle down in places like HK or Macau will find themselves in relative safety of Chinese government machine protected by relative flexibility of these cities. While those in US who are salivating at the idea of total collapse, indeed find themselves in deep shit (which they totally deserve) for a very long period of time. in other words, fiat system will definitely survive but this time with fair
winners and losers.
Trade as much of their paper as you can for something REAL, especially THEIR physical precious metals. There, Mr Black, fixed it for you.
I will write a check for 5 trillion $ payable to the charity of Obammys choice if he produces flying monkeys out of his ass by the 31st at 5pm...fuck you Donald Trump. You been Trumped!
We have a criminal government with criminal elements as part of it who do not give one fat, friggin' damn about the ordinary people of the United States. Isn't that obvious by now?
This country is being brought down. That is no accident. That is the result of plotting and scheming for MONEY, POWER and CONTROL of anything that isn't nailed down, nationally and globally.
What I'm seeing is that if this keeps up, and the people of this slumbering nation ever stop watching the insipid, untruthful television news and wake up at last because what is happening all around, including to each of us individually, can no longer be ignored, then our hearts and our minds and our bodies may have to be put on the line.
And that's the bottom line, whether we like it or not.
Sorry but the chart for the price of gold looks like a bubble prelude.
Farmland for capital, cows for cash flow.
Cows for profits when you least expect it.
FTW. But good luck finding any you can live off of and afford. Unless you're into Wyoming.
Largest tract for sale in two counties in Ill. is 90 acres. Got a bid in on another 45. Two nice old barns and a one acre pond, but mostly just another place to piss in the woods. Gotta love the simple pleasures.
Good luck in my birthplace Illinois. If that state is not the belly of the beast it is at least its armpit!
LOL...how many Americans do you think own gold and silver--even paper gold and silver, let alone physical? Who are the buyers in this "bubble" of yours? Besides, gold and silver aren't becoming more precious--the world's paper (especially the dollar) is simply becoming less precious. That's all the gold chart is telling you. It's not even a mystery: The Federal Reserve and other CBs are pretty upfront about what they're doing--why *else* would gold and silver's charts look the way they do?
About 3% of Americans own precious metals. This does not include necklaces and other trinkets.
Tuco
It all depends on your timeframe. My gold is savings and I can wait 10 years if it came to that. When the gig is up I will be rewarded at least 20x. In 1922 the world put debt into the monetary system. Debt has to grow until it can´t. Debt meet exponential function and loss of trust and voila Freegold. If you put all the real assets in the world on one side and all the imaginary buying power of debt and it´s derivatives (currency is one of them) on the other side even an infant would spot the bubble :)
Not to say that farmland and cows will be bad, only less good than gold in the long run.
honest question here : what's to keep the feds (utilizing one of BHO's XOs) from simply taking one's farmland (of course *cough* 'in the name of national security') , someday when the SHTF ?
He's got it backwards. We're giving them free credits for REAL wealth..OIL.
Greatest transfer of wealth is correct..from them, to the u.s
In 'american' societies, victimology is high. 'Americans' have to be on the wrong side of the deal.
A USD note in their pocket is worthless.
A USD note in the pocket of others is the biggest transfer of wealth ever.
That's 'american' for you.
In Chinese Citizenism societies, defecationology is high. Chinese Citizenism citizens have to shit on the side of the road.
A piece of toilet tissue in their pocket is worthless.
A Little Red Book in their other pocket is the biggest transfer of filth ever.
That's Chinese Shitizenism for you.
In Chinese citizenism societies, AnAnonymous is high.
AnAnonymicans have to defecate on the dung side of the road.
A history book in front of them is worthless.
AnAnonymousitizens rewrite history through the pseudoscience of excremental phrenology, interpreting the lumps in their stools in the biggest evacuation of bowels ever.
That's AnAnonymostentatiousness for you.
"Go and shit upon the grass and feel your lumps."
Unmatched 'americans' They always do it.
Fiat is worthless in their pockets.
Fiat is the greatest transfer of wealth when in the pockets of others.
For 'americans', everything is situational.
What a world that 'american' world.
Unhygienic Chinese Citizenism citizens. They always do it with their bare hands.
Toilet tissue is worthless in their pockets.
Bare-handed asswiping is the greatest transfer of filth when crapping on the sides of the roads.
For Chinese Citizenism citizens, everything is shituational.
What a turd world, that Chinese Shitizenism world.
Unwatched AnAnonymousitizens. They always do it, and then blame Americans.
Feces are worthless confined to their pantaloons.
Feces are the greatest transfer of bowel contents when on the roadsides of others.
For Chinese citizenism citizen AnAnonymicans, everything is coprological.
What a worldwide olfactory effrontery, that Mao See Dungheap new world odor.
What an arrogant man (Pickens). I got windmills to sell ya. I got water to sell ya. Oh by the way can I get some of your tax money to pay for my pet projects.
...and you could add his gas powered trucks too which he's tapped-up DC to support
American enterprise is stitched-up and dead as a dinosaur when you need DC's financial and legislative help to take on a project
there's no free market or free competition (especially in energy), it's all State endorsed and protected monopolies ...vibrancy has gone, State stagnation and decline assured
I think a better solution would be some sort of giant worldwide clawback for the people.
Besides, when considering the suppression of precious metals prices in favor of less wealthy people, they indeed become an affordable value-store solution. And in the end, perhaps the only one. That's another aspect of Ben Bernanke's secret philanthropy; so secret that even he himself hasn't recognized it yet.
T Boone "I lay claim to the entire largest underground resevoir of fresh water in the US because I put a well on 40 acres of land in Texas, that I have been draining and selling to Mexican drug cartels" Pickens.
Prior to that he used junk bonds to buy out small oil companies and sell them off to the big players. To call Pickens an oilman is like calling Krugman an economist. That guy almost makes Obama look like a saint.
Yeah if T Boone, Bernanke, Blankfein, and Dimon were in a room, I would still kill them all. It would be a toss up as to which person would go first.
Just lock them in a room with some food and water, enough to last them a month. It would be more fun watching what happens than simply killing them.
I would bet real money (silver) that after three days only Dimon is left alive. I would then bet even more real money (gold) that Dimon doesn't make it to the weekend.
But yes, good idea about the room.
don't forget Corzine , please !
In case anyone gave up on trying to read the comic attached to this article on the front page, it says "Help! I've fallen and I can't get up!"
Gold will, either, get you killed or get confiscated.
Did you know gold in safe deposit boxes is NOT insurable?
The Treasury's notional value of an once of gold is $42.22/ounce:
http://fms.treas.gov/gold/index.html
Be careful! When the gov't confiscates your gold they are going to give you $42.2222 for each ounce. Not the $1700/ounce you paid.
The ETF, GLD, is just a device to accumulate all the gold in one place to ease confiscation.
Think about it. FDR did it in 1934 and it will happen again.
I wouldn't risk it. I'll take my chances in cash.
If they are gonna take our gold we might as well give them a little "lead" as well.
Tuco
helping_...I think you've completly nailed it. As a lesser of available evils i'm betting on mining stocks...
great info!
$42/oz? i'll sell one oz from my stockpile and give them $42 for every oz that I have !! see my post below.
http://www.zerohedge.com/news/2012-10-24/guest-post-ben-bernankes-secret-philanthropy#comment-2916600
I completely agree with you but, I cannot deny the tragedy I have been close to as a friend of my family was murdered for a few gold coins many years ago. A worker at his home saw him handling the coins, came back later an killed him and absconded w/ the coins.
I can't help but imagine how one would exchange gold for any goods without a army of protection?
Can you trust the police to protect you or will they shake you down to rip you off?
How will you spend your metal without getting shanked, shot, robbed etc.?
I don't hold any gold and don't know the fever. I can't imagine trying to sleep at night once anyone knew you had a PM?
That's not even considering how the gov't would treat you once they found out. IRS, ATF, Secret Sevice, FBI...etc just waiting to find a reason to take it from you?
So many questions.
Be very careful my fellow.
42/oz - so I'll turn a tidy profit on my gold-plated tungsten then.
Wez Amerikans not so brite! I'll give ya $43 fer that thar' tungsten! I got some of them golden $50 pieces I got on that ther TV fer $29.99 and a shammy as a bonus.
As I write this ridiculous post the "sell me gold sites" appear on every available inch of ad space on my screen.
Sorry unemployed advertising sales guys! We don't need you now that we have google algos to do your job.
But it’s a drop in the bucket compared to the TRILLIONS that Ben Bernanke gives the world’s elite.
Fed's job is to steal ALL of Ameirca's wealth and give it to bankers.
Ok, so how does the Fed do that?
We know currency ("money") printing is basically how. Print enough currency to debase the "US dollar" to nothing.
But the "rules" say currency can't just be printed and handed out. Fed must receive something to put on the asset side of their balance sheet to keep it looking like a legitmate balance sheet.
So Bernanke buys financial paper with it. Financial paper alledged to have some stated value. He buys a billion of financial paper for a billion freshly printed "dollars".
Of course said financial paper isn't worth anywhere near its stated value. If it was, banks wouldn't sell it to the Fed, they'd keep it. They only sell their most toxic worthless trash to the Fed ...at full "par value" ...plus fees and commissions.
If the asset side of Fed's balance sheet was ever marked to market they'd be hopelessly insolvent.
But it's never marked to market, Bennie can say that crap is worth whatever he wants to say it's worth. And "insolvent" doesn't matter anyway, nobody is gonna declare the Fed insolvent, ever.
Bennie might have to print $500 trillion to debase "the US dollar" to nothing and effectively give all of America's wealth to bankers. Who knows, maybe it would have to be $1,000 trillion.
But there's not that much financial paper around for Bennie to buy. So how's he gonna do it?
Simple. Backstop all the derivatives out there. Wall Street alone has about $600 trillion of derivatives in play. Worldwide it's way over a quadrillion.
Now you know how he'll do it.
Imagine waking up some morning hearing about a "major worldwide credit event", and Bennie had to print $600 trillion to pay off all those derivatives (to bankers of course).
The "US dollar" would crash. Worthless. Just that fast.
Libor alone is the $800 trillion gorilla that nobody is talking about anymore.
You betcha. That's how it's done and that's how they operate. Creating absolutely nothing of value, not working any jobs worthy of consideration. Glorified thieves and pirates. They're stealing and affording themselves the protection of the legalized mafia a.k.a. "government".
Best not to pay any attention to it and keep finding and stashing away. The gig is up soon enough. More and more people are getting "it" and will challenge them until the system implodes. It will be nasty and there won't be many who can safely assume today that they are prepared for what is coming.
"it’s best to store your metal in a safe jurisdiction overseas, out of their reach."
Good article except for statement above. Keep your metals "cool, dry and nearby"!
Tuco
I'm pretty sure they gave away the gold too.
When an article starts with the word "legendary" I know I have already read one word too many.
that Ben shalom, such a swell fellow.
the story does not tell us if Ben shalomed the lady at the end of their discussion; i'm sure she was looking for gold in the flesh, where it glittters most.
"If you can keep it... glittering, you will get your golden rub."
The story goes that Benjamin Franklin was approached by a woman as he left the Constitutional Convention
She asked:
“What have you given us?”
Franklin is said to have replied:
“A republic, if you can keep it.”
Addendum:
Then she asked:
"And what kind of money shall this republic use?"
"The only thing that has ever been money, and will forever be money: Gold and silver, if you can keep it.
Name the country:
No....their not talking about the United States......but China.
Well, it is more an American Corporate goal because....well.....those profits would go bye-bye if their Communist Plantation Managers ever lost stranglehold of their Fields.
Are we still doing articles about buying gold and storing away to avoid confiscation?? Yawn!
i'll be a PHYSICAL gold buyer
....@ $300/oz...NOT @ $1700, not 1800 and definitely NOT 1900 !! but, but the "strategist" marc faber said: BUY @ 1900, 1800 and just last week he said when @ 1750:
"gold is trending higher" = i posted on zh that i don't give a rat's azz what he says...i'll patiently wait for $300 BEFORE it skyrockets to $10k..and silver??? from $4 to $150+
NOW the question about "holding it safely overseas" as the author says...i say nothing is safe !! unless you hold it somewhere underground...will you honestly trust the europeans to hold your gold?
what is odummer REFUSES to give up the presidency after a MAJOR LANDSLIDE LOSS? what if he tells the europeans to hand over that American gold?? what if you decide to hold it in russian and/or chinese hands...and you get back gold plated copper or tungsten?
Agreed - except for wishing you made your physical purchases back in 2002. Odds are you won't see $300 Gold or $4 Silver again in your lifetime. Better late then never, besides, you should have 10% of net worth in metals regardless of the economic or market climates.
completely self centered comment I assure you it's been goin on for years
There remains a safe jurisdiction overseas? Not so sure....
the only country a nation has is its own land, that of its fathers, paid and bought with generations of blood. For those on the move, its the land they chose to plant their roots; good or bad.