-- Published: Monday, 7 December 2015 | Print | Disqus
Dear Friend of GATA and Gold:
Somebody else besides GATA not only understands but is writing about what he calls the "imperial project" behind the U.S. dollar.
It's Charles Hugh Smith, who discusses the markets at his Internet site, Of Two Minds. In his December 4 commentary, "Why the Fed Has to Raise Rates" --
"Those who argue the Fed can't possibly raise rates in a weakening domestic economy have forgotten the one absolutely critical mission of the Fed in the Imperial Project is maintaining U.S. dollar hegemony.
"No nation ever achieved global hegemony by weakening its currency. Hegemony requires a strong currency, for the ultimate arbitrage is trading fiat currency that has been created out of thin air for real commodities and goods.
"Generating currency out of thin air and trading it for tangible goods is the definition of hegemony. Is there is any greater magic power than that?
"In essence, the Fed must raise rates to strengthen the U.S. dollar and keep commodities such as oil cheap for American consumers. The most direct way to keep commodities cheap is to strengthen one's currency, which makes commodities extracted in other nations cheaper by raising the purchasing power of the domestic economy on the global stage."
While Smith doesn't quite get around to mentioning gold and the Western central bank gold price suppression scheme, the threat posed to dollar hegemony by gold is obvious. For gold is potentially what is it long used to be, an independent world reserve currency. Indeed, as GATA often has asserted and as declassified U.S. government documents show, maintaining dollar hegemony is the primary objective of the gold price suppression scheme:
Controlling the world through currency market rigging is actually an old story. While the world imagines Nazi Germany's looting of occupied Europe during World War II as a matter of soldiers with bayonets on their rifles breaking into banks, shops, and museums and carrying away the contents, the primary Nazi method of expropriation was actually currency market rigging.
This rigging was documented by a study by the U.S. War Department in November 1943 --
-- and it is described at length by the German journalist, historian, and political scientist Gotz Aly in his 2005 history "Hitler's Beneficiaries: Plunder, Racial War, and the Nazi Welfare State":
Aly notes that expropriation through currency market rigging drafted every citizen of an occupied country almost unwittingly into the service of the occupier and made it more difficult for people to understand how they were being looted.
That's why what is being called the "currency war" is an understatement. It is, as Smith writes, the "imperial project" -- and free-trading gold is the ultimate weapon against it.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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-- Published: Monday, 7 December 2015 | E-Mail | Print | Source: GoldSeek.com