Post by stingray on Aug 2, 2015 12:37:18 GMT -5
This week in America everyone is all up in arms about a lion. Before that it was a confederate flag, which was actually the Tennessee battle flag, and before that everyone was enamored by Bruce Jenners “Courage”. While in the real world, the US is adamant that Iran has nuclear capabilities and planned parenthood is a baby parts mill. It seems that the media has a way distracting Americans quite easily. Maybe the movie "The Matrix" wasn’t that far off? Jesus did say “we take captive every thought to make it obedient to Christ”.
There has been a tremendous amount of speculation and chatter about events of biblical proportions happening this fall. Its easy to get caught up in this talk when we look at how the world has drastically changed in just the last decade. It seems that every country is riddled with debt. The past couple of months we have seen the Chinese stock market have a huge correction. This doesn’t necessarily mean that China is going to the wayside. The correction is due to market manipulation that the Chinese are trying to mimic the tactics the US use. Last week China released how much gold they have on reserve for the first time in 6 years. The world was expecting an amount that would rival the US reserves but they stated they only have 1,054 tonnes of gold. Just 3 months earlier it was said that they had over 3,000 tonnes and experts who have been watching the purchase of gold move east expected an amount closer to 10,000 tonnes, since China has been purchasing 200 tonnes a month since 2009.
Speaking of gold, it currently is being suppressed at 5 yr lows. The mainstream media is portraying it as outdated and worthless. As if all this paper money has any intrinsic value to it. Gold and silver has been used as currency since the dawn of man. I will continue to purchase both gold and silver even if the price continues to fall (I encourage everyone to purchase gold or silver whenever they have the means to). With the current price of silver you can purchase one pre-1964 dime for about $1.25. This makes it easy for anyone to start collecting.
I believe its important to have physical gold and silver on hand because on Oct 20th the IMF will release an “Alternative Reserve Currency”. Most experts expect it to be backed by gold and be from China. What does this mean for America? It means that overnight we could see 100’s of billions of dollars converted from the dollar to the Yuan “Renminbi”. This could cause hyper-inflation quite quickly. When Obama became president the monetary base was around $900 billion (This is the amount of dollars being used in the world economy). Since then, the monetary policy to make the economy SEEM like it is growing has been Quantitative Easing. This is when the fed’s start printing money and releasing it in to the economy to encourage consumers to buy. We have had QE1, QE2 and QE3. They have been talking about QE4 all summer. Currently the monetary base stands at over $4 TRILLION. So 300% of our economy has been created out of thin air with no real basis to exist. So when countries from around the world stop using the dollar, the dollar will enter our economic system and quickly fall: the devaluing of the dollar.
Why hasn’t Quantitative Easing worked? Because Americans are still trying to recover from the financial crash of 2008. For QE to work properly, Americans must become consumers. To the fed’s dismay, Americans have become more interested in paying off their current debt and saving their money. The same thing is happening in Europe. The EU prints off Euro’s just as quick if not quicker than the US. It’s become an on-going global ponzi scheme and the game is about to end.
BRICS is officially open for business and growing rapidly. This is Russia’s and China’s attempt to unseat American hegemony. Every country in the world has lined up to do business with BRICS except America and Japan. Most of southeast Asia is already clearing their financial transactions with them. The interesting thing about these nations (Brazil, Russia, India, China, and South Africa) is that they span the whole globe. Brazil is in South America, Russia is in Europe and Asia, India has direct influence in the Indian Ocean and Middle East, China is in Asia and South Africa in Africa. Every continent will have a BRICS member on it except North America.
Saudi Arabia is jumping deep in bed with BRICS. Soon they will start to list their oil in the Yuan and Ruble. I’m sure the rest of the OPEC nations will follow suit. This is one reason I suspect that the US is so adamant about striking a deal with Iran and lifting sanctions. Iran is the last bastion of cheap oil which, for the most part, goes to Russia and terrorist nations. The stronger BRICS gets, the more worried the politicians in America and the EU become. This is one reason for the build up of NATO troops in Ukraine. Russia wants to become relevant on the world scene again and the US is trying its hardest to keep them under their thumb.
While all this is happening the mainstream media does its best to pump up the US economy, no matter how bad the numbers are. The numbers have been so low for so long that just a fraction of growth seems monumental. The biggest defense for the economy from the media is, "where are all the food lines if wages are down, and unemployment up?" Since the introduction of the food stamp program, the government can hide the 47 MILLION Americans on food stamps by ushering them through the checkout line with what looks like a debit card. That’s 17% of Americans. Imagine if these 47 million people were standing at food banks all across America each week-- what that would look like?
The media also likes to point at the dollar's strength and precious metal's suppression, as reasons for a strong economy. The USD Index is only at 97.10. Since 1996 the range of the index has been 72 to 120. The index is the strength of the dollar against the Euro (57.6%), the Yen (13.6%), the Pound (11.9%), the Canadian Dollar (9.1%), the Swedish Krona (4.2%) and the Swiss Franc (3.6%). Given that all these countries are riddled in debt, if the US economy was so robust, it should be much stronger than it currently is. Notice too, what currency is missing? The Yuan. The dollar with its global reserve currency status also puts all other currencies at a buying disadvantage due to the fact that the dollar never has to be converted into another currency.
As for gold and silver, it's quite the anomaly. Demand is at an all time high for the physical product. Most mints are 30 to 60 days out on delivery dates, (especially for silver). Yet the markets portray the volume of gold and silver being sold on the secondary market as extremely high. Reality: The gold that is being portrayed as being sold is paper gold called 'shorts'. Investor A borrows 100 ounces (1 short contract) from investor B @ $1200 an ounce. Investor A then sells the 100 ounces for $1200 an ounce. The price of gold falls to $1100 an ounce in a few weeks and investor A then purchases the 100 ounces and gives them back to investor B. Investor A just made $100 an ounce or a total of $10,000.00. The price of gold can easily move back an forth $20 throughout the day. An investor could make $1,000 to $2,000 a day in paper trades on the physical value of gold. This is what is happening in the precious metals market. Prices are being suppressed by paper gold sells. But the up side for gold and silver seem to be good. Mines are slowing down due to the cost of mining. Silver is directly tied to most other metals because it is a by product. All along the demand is getting higher. Soon there will be a gold and silver shortage and the price will start to rise substantially; probably when other currencies start to drop. If you compare the monetary base with the price of gold there has never been such a wide gap. Today gold reserves in the US is only 7.58% of the monetary base (If you believe the numbers the fed is telling us). The median percentage dating back to 1917 is 48.75%. In order to hit that number today due to the Feds printing money at will, the price of gold would have to rise to $6,349 an ounce. If the gold reserves were to back the monetary base by 100% then the price of gold per ounce would need to rise to $15,872. It currently trades under $1100 an ounce and will probably fall further before it starts its bull run. Remember all these short gold contracts that have been sold? At some point they will have to be purchased and delivered. Today the amount of gold outstanding is 323.5 tonnes. Silver outstanding is 273m ounces, --which is more than the annual mining output of 2014.
Today unlike any other time in history, the global economy is linked tightly together. There exists only 3 types of countries today: Resource rich countries. Countries that are high in mining (Russia, Australia, most of South America, Canada, and parts of Africa). Then you have the manufacturing countries (China and most of SE Asia). Then you have the consumer countries (The US and Europe). The Chinese are trying to transition to a consumer country but is failing miserably. The resource rich countries produce raw material which is then sold to manufacturing countries to be made into consumer products and exported to the US and Europe. What happens when the US and Europe stop buying products and starts saving their money or paying off their debts as they are doing now? They import less from the manufacturing countries and they purchase less raw material from resource rich countries. Mines slow down or close. The governments of the consumer countries receive less revenue through taxation and the economy slows. Tada, you then have global financial crisis. 2008 was a precursor to what may be on the horizon.
There has been a tremendous amount of speculation and chatter about events of biblical proportions happening this fall. Its easy to get caught up in this talk when we look at how the world has drastically changed in just the last decade. It seems that every country is riddled with debt. The past couple of months we have seen the Chinese stock market have a huge correction. This doesn’t necessarily mean that China is going to the wayside. The correction is due to market manipulation that the Chinese are trying to mimic the tactics the US use. Last week China released how much gold they have on reserve for the first time in 6 years. The world was expecting an amount that would rival the US reserves but they stated they only have 1,054 tonnes of gold. Just 3 months earlier it was said that they had over 3,000 tonnes and experts who have been watching the purchase of gold move east expected an amount closer to 10,000 tonnes, since China has been purchasing 200 tonnes a month since 2009.
Speaking of gold, it currently is being suppressed at 5 yr lows. The mainstream media is portraying it as outdated and worthless. As if all this paper money has any intrinsic value to it. Gold and silver has been used as currency since the dawn of man. I will continue to purchase both gold and silver even if the price continues to fall (I encourage everyone to purchase gold or silver whenever they have the means to). With the current price of silver you can purchase one pre-1964 dime for about $1.25. This makes it easy for anyone to start collecting.
I believe its important to have physical gold and silver on hand because on Oct 20th the IMF will release an “Alternative Reserve Currency”. Most experts expect it to be backed by gold and be from China. What does this mean for America? It means that overnight we could see 100’s of billions of dollars converted from the dollar to the Yuan “Renminbi”. This could cause hyper-inflation quite quickly. When Obama became president the monetary base was around $900 billion (This is the amount of dollars being used in the world economy). Since then, the monetary policy to make the economy SEEM like it is growing has been Quantitative Easing. This is when the fed’s start printing money and releasing it in to the economy to encourage consumers to buy. We have had QE1, QE2 and QE3. They have been talking about QE4 all summer. Currently the monetary base stands at over $4 TRILLION. So 300% of our economy has been created out of thin air with no real basis to exist. So when countries from around the world stop using the dollar, the dollar will enter our economic system and quickly fall: the devaluing of the dollar.
Why hasn’t Quantitative Easing worked? Because Americans are still trying to recover from the financial crash of 2008. For QE to work properly, Americans must become consumers. To the fed’s dismay, Americans have become more interested in paying off their current debt and saving their money. The same thing is happening in Europe. The EU prints off Euro’s just as quick if not quicker than the US. It’s become an on-going global ponzi scheme and the game is about to end.
BRICS is officially open for business and growing rapidly. This is Russia’s and China’s attempt to unseat American hegemony. Every country in the world has lined up to do business with BRICS except America and Japan. Most of southeast Asia is already clearing their financial transactions with them. The interesting thing about these nations (Brazil, Russia, India, China, and South Africa) is that they span the whole globe. Brazil is in South America, Russia is in Europe and Asia, India has direct influence in the Indian Ocean and Middle East, China is in Asia and South Africa in Africa. Every continent will have a BRICS member on it except North America.
Saudi Arabia is jumping deep in bed with BRICS. Soon they will start to list their oil in the Yuan and Ruble. I’m sure the rest of the OPEC nations will follow suit. This is one reason I suspect that the US is so adamant about striking a deal with Iran and lifting sanctions. Iran is the last bastion of cheap oil which, for the most part, goes to Russia and terrorist nations. The stronger BRICS gets, the more worried the politicians in America and the EU become. This is one reason for the build up of NATO troops in Ukraine. Russia wants to become relevant on the world scene again and the US is trying its hardest to keep them under their thumb.
While all this is happening the mainstream media does its best to pump up the US economy, no matter how bad the numbers are. The numbers have been so low for so long that just a fraction of growth seems monumental. The biggest defense for the economy from the media is, "where are all the food lines if wages are down, and unemployment up?" Since the introduction of the food stamp program, the government can hide the 47 MILLION Americans on food stamps by ushering them through the checkout line with what looks like a debit card. That’s 17% of Americans. Imagine if these 47 million people were standing at food banks all across America each week-- what that would look like?
The media also likes to point at the dollar's strength and precious metal's suppression, as reasons for a strong economy. The USD Index is only at 97.10. Since 1996 the range of the index has been 72 to 120. The index is the strength of the dollar against the Euro (57.6%), the Yen (13.6%), the Pound (11.9%), the Canadian Dollar (9.1%), the Swedish Krona (4.2%) and the Swiss Franc (3.6%). Given that all these countries are riddled in debt, if the US economy was so robust, it should be much stronger than it currently is. Notice too, what currency is missing? The Yuan. The dollar with its global reserve currency status also puts all other currencies at a buying disadvantage due to the fact that the dollar never has to be converted into another currency.
As for gold and silver, it's quite the anomaly. Demand is at an all time high for the physical product. Most mints are 30 to 60 days out on delivery dates, (especially for silver). Yet the markets portray the volume of gold and silver being sold on the secondary market as extremely high. Reality: The gold that is being portrayed as being sold is paper gold called 'shorts'. Investor A borrows 100 ounces (1 short contract) from investor B @ $1200 an ounce. Investor A then sells the 100 ounces for $1200 an ounce. The price of gold falls to $1100 an ounce in a few weeks and investor A then purchases the 100 ounces and gives them back to investor B. Investor A just made $100 an ounce or a total of $10,000.00. The price of gold can easily move back an forth $20 throughout the day. An investor could make $1,000 to $2,000 a day in paper trades on the physical value of gold. This is what is happening in the precious metals market. Prices are being suppressed by paper gold sells. But the up side for gold and silver seem to be good. Mines are slowing down due to the cost of mining. Silver is directly tied to most other metals because it is a by product. All along the demand is getting higher. Soon there will be a gold and silver shortage and the price will start to rise substantially; probably when other currencies start to drop. If you compare the monetary base with the price of gold there has never been such a wide gap. Today gold reserves in the US is only 7.58% of the monetary base (If you believe the numbers the fed is telling us). The median percentage dating back to 1917 is 48.75%. In order to hit that number today due to the Feds printing money at will, the price of gold would have to rise to $6,349 an ounce. If the gold reserves were to back the monetary base by 100% then the price of gold per ounce would need to rise to $15,872. It currently trades under $1100 an ounce and will probably fall further before it starts its bull run. Remember all these short gold contracts that have been sold? At some point they will have to be purchased and delivered. Today the amount of gold outstanding is 323.5 tonnes. Silver outstanding is 273m ounces, --which is more than the annual mining output of 2014.
Today unlike any other time in history, the global economy is linked tightly together. There exists only 3 types of countries today: Resource rich countries. Countries that are high in mining (Russia, Australia, most of South America, Canada, and parts of Africa). Then you have the manufacturing countries (China and most of SE Asia). Then you have the consumer countries (The US and Europe). The Chinese are trying to transition to a consumer country but is failing miserably. The resource rich countries produce raw material which is then sold to manufacturing countries to be made into consumer products and exported to the US and Europe. What happens when the US and Europe stop buying products and starts saving their money or paying off their debts as they are doing now? They import less from the manufacturing countries and they purchase less raw material from resource rich countries. Mines slow down or close. The governments of the consumer countries receive less revenue through taxation and the economy slows. Tada, you then have global financial crisis. 2008 was a precursor to what may be on the horizon.