-- Posted Monday, 18 August 2008 | Digg This Article | Source: GoldSeek.com
By R.D. Bradshaw
In March 2008, gold hit a high of around $1030 per ounce. By mid-August, it had collapsed to $772. Similar falls happened to most of the commodities and foreign currencies. Wheat went from a high of $13-15 to $7-8 per bushel; Silver, soybeans and corn all crashed as well. Even the EURO currency went from almost $1.60 to $1.46 and oil fell from $149 to $111.
Here, the question must be asked--how is it possible that these prices can collapse in just a matter of days? For the answer, one must address the subject of the historic goldsmiths and how they are still around today and still making money--like never before. This article and two succeeding ones will broach this theme.
As a backdrop on this topic, here are a couple of quotes. Per Thomas Jefferson, in 1800, “Everything predicted by the enemies of banks...is now coming to pass. We are to be ruined by a deluge of bank paper” (Dec 2002, “Radio Liberty,” p. 1). In 1850, Thomas Webster added: “Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money” (ibid, p. 1).
The story of banking and paper money evidently started with ancient goldsmiths. In the early days, it was a known axiom that gold and silver particularly (and other precious metals and stones as well) were recognized as things of value and could be used for exchange purposes. Accordingly, goldsmiths appeared on the scene to provide some services for people with gold.
One of the services provided (for a fee, of course) was that goldsmiths would accept gold for deposit or storage from people possessing it (because gold was bulky and was a problem for storage, safekeeping and exchange). Goldsmiths would give the gold owner a receipt for his gold.
As time passed, people in society with these receipts began exchanging the receipts as money without converting them to gold. Since goldsmiths would pay off gold when the receipts were presented, the receipts were as good as gold (and thus, became a medium of exchange and the real beginnings of paper money).
The goldsmiths quickly learned that most people would never bother to surrender their receipts for actual gold (since it was bulky and problems for storage and safekeeping and since the receipts were as good as gold in making exchanges). Accordingly, many of the early goldsmiths decided to write more receipts than they had gold. The goldsmiths then could issue these receipts for goods, services and investments.
The only problem with this system was that when the goldsmith issued more receipts than there was gold he ran the risk of facing a run on his operation and would not be able to cover all of the receipts he had issued. Of course, people not receiving gold for their receipts would get mad and often hang the goldsmiths. Goldsmithing could be a risky business whenever the goldsmiths tried to cheat the public (which was often).
Seeing the success of goldsmiths, banks developed and started issuing their own receipts in the form of bank notes (yes, individual private banks could issue their own money in the form of IOU bank notes). Soon, nations and national governments got in on the act by issuing paper money as well.
Because of the history of backing gold receipts (with gold), much of this early paper money being issued came out with a provision to allow its conversion to gold (or silver, as happened eventually in the US). Again, the paper money was as good as gold (or silver, in some cases).
Since there was a possibility of issuing more paper money than justified by gold on hand, some banks and even nations decided to follow this route to increase their wealth. But again, there was a risk factor involved if the people ever became suspicious over their money and made a run on the bank or national bank in the case of nations.
This was one of the problems in France in the late 18th century. King Louie was persuaded by some bankers to issue huge quantities of paper money which were not backed by gold or hard assets. Inflation took off and the people ultimately got fed up with conditions. They rose up in rebellion and proceeded to chop Louie’s head off (along with numbers of other government leaders).
But the conniving goldsmiths (bankers) were not exactly stupid. They were ever watching and plotting on how they could have a money making banking business which didn’t carry any risks for themselves. Ultimately, they came upon a wise and crafty solution which only required the concurrence and agreement of the people and/or the national leaders in a given nation (the king, politicians or whomsoever was in charge).
The idea was simple. Create their own privately owned central or national bank which had the exclusive right and privilege in the nation to issue paper money. By government fiat, the whole nation could be made to accept and use this central bank money exclusively with no other options.
Given time, the next step up in this plan was to completely abolish any connections which these bank notes had with backed gold, silver or other precious stones or metals. In other words, back this paper money (bank IOU notes) with nothing.
The third big need for the private bankers to make barrels of money was to conduct all banking operations in the central bank in absolute secrecy. While some decisions can be allowed out publicly (de facto, after they were in effect), the idea was that no one in the public domain could ever know what the banks were doing--except the people on the inside in the operation or the behind-the-scenes owners.
Once these three provisions were in place, it would allow the goldsmiths or bankers an unlimited opportunity to issue all of the paper money and bank credits that they desired without restrictions or limitations. If there were any runs on the bank, the goldsmiths (bankers) would never be held accountable. Instead the people could get mad at the king or governing politicians. If anyone was hanged, it would be the government leaders.
This scheme was sold to the kings and governing politicians on the premise that the owners of the central bank would supply the leaders with all of the money that they wanted (this involved the first stage of the concept of an elastic currency--that is one without limitation or restriction).
The next facet of this elastic currency idea was that if the people became upset and tried to make a run on the private bank or banks (owned by the same bankers who owned and controlled the central bank), the elastic currency would come into play and make more paper money available to whomever in power desired it, and in almost any reasonably wanted or needed quantity.
From the banker/goldsmith point of view, this would be a perfect banking situation. All that was needed was the presentation of whatever conditions as were necessary to sell this plan to the king or the governing politicians.
Moving in on the US
Starting with the time of the naive George Washington, the fat cat bankers tried to sell this plan to the new American government (by working through their agents--like John Adams and Alexander Hamilton [who was named Levine in the West Indies]). Success came with the First US Bank and then later a Second US Bank. However, men like Andy Jackson came along and stopped their efforts in the 19th century. Thus, they had to sit on the sidelines and wait.
In order to hasten the day of success, the bankers were always busy taking steps to achieve their ultimate goal. They would routinely cause depressions, economic dislocations, money panics, etc in order to encourage the US government/people to adopt their plan.
Finally, in 1913, their chance for success came when they elected their own man, Woodrow Wilson, to the presidency (and they have continuously elected all presidents since Wilson). They moved fast with Wilson and on Dec 23, 1913 (while many members of Congress were home on vacations), they created their legislative dream in the form of an all-powerful, privately-owned, central, US bank.
In order to fool the people, they chose to put the word federal in the name of their private bank (to make the people believe that it was a part of the federal government when, in fact, it was not). Thus, the Federal Reserve Bank was born (called the Fed and actually made up of 12 member banks which are all owned/managed by private bankers).
The next step needed to sell this thing was to allow the president to appoint a seven member overall board of governors. But wisely, the bankers organized their system by making this board a figure head operation when they wisely created a controlling entity called the Federal Open Market Committee (FOMC). The FOMC makes the key decisions for the central bank.
Though the so-called board of governors are members of the FOMC, the Fed law wisely provided that all 12 participating private bankers are full participants in all FOMC meetings, discussions, plans and activities--although only five of these private bankers can vote on Fed actions at FOMC meetings.
The Power of Money
While the private bankers are in actual control of the 12 member banks, they are also in de facto control of the seven member board of governors. This came about because the 18th century banker Mayer Amschel Rothschild said to permit him to control a nation’s money and he cared not who wrote its laws (most of us know about the golden rule—he who has the gold does the ruling. Proverbs 22:7 says about the same thing—in that the rich rule over the poor, and the borrower is servant to the lender).
Obviously, once some person gains control of a nation’s money, the door is opened for him to also control its law-makers and laws (to insure that the law-makers never get bold and try to pass restrictive laws to interfere in his operation).
With this control, the US president always appoints people acceptable by the bankers to the seven member Fed board. Alan Greenspan, a recent chairman of the board, is a perfect example of a banker’s man placed within the board. The bankers loved him because he worked for them. Thus, the president must appoint people to the seven member board who are acceptable and toe the line for the bankers.
Hence, in 2001, Bush was prepared to nominate Country Bank CEO Terry Jorde to the Fed board. Per columnist Robert Novak, she was vetoed by Fed Chairman Alan Greenspan, the banker’s man (per the Jun 29, 2001, “The Week,” p. 37, in a news report on “No dissent allowed in Greenspanland”). Thus, Bush was in the position of having to have his nominations to the Fed board cleared in advance with Greenspan.
Since appointments to the board are for 14 years and since board members cannot be removed except in case of personal misconduct, it really is academic to talk about the question of independence by the board. Once members are in there, they always go along with the bankers (who, with their money, wield a big stick in American politics). And since the board has no power on its own, it matters not anyway.
In offering the governing politicians unlimited supplies of money, the plan sold to the US was that the Fed would always buy any US Treasury bills, notes, bonds or paper which could not be sold to the public. This is called monetizing the debt when the Treasury simply hands a stack of interest bearing paper to the Fed in exchange for Fed money or bank credits (which are available in almost unlimited quantities at the Fed).
This means that the Fed itself is one of the largest holders of US debt. With this huge inflow of interest annually to the Fed, the Fed offered a solution to satisfy the concern of politicians by transferring any unspent sums of interest back to the Treasury at the end of the year (and it does this annually so no one can claim that the Fed is out to make money on its own operations or from interest on US paper).
Of course, there was never any plan or need for the Fed, itself, to be a money making operation. It doesn’t need to make money because it was created for other purposes. In fact, the Fed does not need to make money because it already has essentially unlimited supplies of its own money and can issue this money in a virtually unchecked and unverified manner (because its operations are carried out in secret and there is no checking or auditing of what it does--even the CIA does not have this secrecy since the CIA has to ask the president and Congress for money and must accordingly accommodate them. With the Fed, it asks no one for money since it already owns the bulk of the US money supply).
So, although the Fed carries on its operations in secret and although it is never independently checked or audited (by anyone), the Fed chairman does occasionally testify before Congress on what the Fed is doing. Because of a lack of verification, the Fed Chairman can tell the Congress about whatever he wants to and no one will be the wiser.
In putting this thing over, the private bankers (who would become the private owners of the Fed) wanted still more benefits or offerings from the US. First, they wanted the United States to transfer much/most of the US gold supply to the Fed--which is what happened. The US gave up its primary gold supply to the Federal Reserve Bank.
And second, the bankers wanted the Fed to have complete power and authority to control US interest rates at all levels and to be able to make money available to whomever/wherever it chooses at a given point in time. These provisions were given to the Fed.
By controlling interest rates, it is an acknowledged fact that the Fed can enter and participate in the buying and selling of US notes, bonds, bills, etc. And it does. The Fed enters the allegedly free markets and either buys or sells US and/or other paper to control interest rates (thus, the Fed insiders always know in advance which way interest rates and bond prices are going to go).
Another thing that the Fed has been doing (but has been doing in secret because if the word was out, many people would get mad) is to enter and participate in the buying and selling of gold, silver and other commodities as desired. These markets are not free or market responsive based upon supply and demand. They are subject to the wishes of the Fed to control them.
Some years ago, the Fed/Treasury created something called the “Exchange Stabilization” fund or system to use a vast sum of Federal Reserve Notes to influence, control and participate in the currency markets (this thing was approved by Congress, though it is clearly an unconstitutional action).
Hence, the Fed/Treasury can enter the different currency markets around the world to control the value of various foreign currencies. Thus, they can make the Mexican peso (or any other foreign currency) go up or down (and especially, in collusion with other reportedly private central banks--like the Bank of England, the Bank of Japan, the ECB, etc).
The last item that the Fed/Treasury can do (or rather is doing since it is being done in secret and evidently illegally) is to rig and control the US stock market by entering the market with unlimited supplies of dollars to make selected stocks go up or down. Though gullible and uninformed US stock and commodity market investors believe that the markets are free and market responsive, they are not. They are manipulated and controlled.
The Fed and the Treasury collaborated on this madness and created something in 1988 with the approval of Ronald Reagan (reportedly, per executive order 12631 on Mar 18, 1988) called the “Working Group on Financial Stability” (popularly known as the Market Control Unit or the Plunge Protection Team). This unit operates in collusion with the market-makers (the stock and commodity brokers making the markets on the major stock exchanges) to buy or sell certain stocks, bonds, currencies and/or commodities at certain times.
Acts to Make Money for Its Secret Owners
All along, there was no plan that the Fed itself had to be a profitable operation because it has all of the money it can possibly use in the context of the printing presses and the huge inflow of interest annually from the US Treasury.
Actually, the plan always was that the Fed would do things and carry on its buying and selling options in ways to benefits its secret owners, managers and other insiders. The Fed itself does not need to make money in its buying and selling operations in the various financial markets. All it has to do is to keep its owners and other key selected insiders aware of what it is doing in secret.
Can the reader possibly begin to understand the benefit that would come to an investor if he had prior knowledge that the Fed would enter the bond markets on a given day to buy or sell US government bonds to alter bond prices and/or to drive interest rates up or down?
Alternatively, how about the benefits to a trader in gold on the commodity exchanges? What if the trader had advance knowledge that the Fed would enter the gold market at a given point in time and sell huge quantities of gold to drive the price down (which can be either long or short sales since the Fed has unlimited money to play with)? Would this type of information allow a trader/investor to make gobs and gobs of profits? Has a cat got a tail?
Working the stock exchanges is even more enticing. Suppose you are a stock market player and you have advance information that the Fed will buy (or sell) Dow-Jones stocks on a certain day--like maybe GM or whichever. With your advance information, you can buy (or sell) these stocks in advance and then later sell (or buy) them back with fantastic profits.
If the Fed loses five or ten billion dollars in Fed notes in the markets, it is no big deal because the Fed can simply print more of them (although it should be obvious to anyone above the idiot level that this squander of money belongs to US taxpayers who will have to pick up the liability for all of these Federal Reserve Notes and bank credits which have been liberally distributed around the world to make profits for the Fed owners and insiders).
This type of Fed information on Fed actions is highly secret and no one knows much about it except the Fed’s secret owners, people on the inside in the Fed, and brokers who execute orders for the Fed. Of course, it goes without saying that these insiders do tip off and keep some of their friends, relatives and colleagues apprised of what all is going on.
Thus, Fed owners (seemingly like the Rockefellers, Warburgs, Lazards and Rothschilds), agents (like perhaps JP Morgan-Chase and Goldman-Sachs) and friends (maybe George Soros) will always know in advance which way things are going in order to make huge profits.
Besides these primary functions, which allow the Fed to manipulate and control various financial markets to benefit its secret owners and insiders, the Fed also has other powers. The Fed can establish banking reserve requirements (which determine how much money banks can loan out to customers) and the discount rate (which is one more important barometer governing US interest rates).
As a backup for its member banks (US national banks and some state approved banks), the Fed stands ready to accept discounted notes and paper from banks in an emergency. This means that if there is a run on a local bank, that bank can come to the Fed and get some immediate money to bail itself out.
Finally, the Fed has the power to establish margin requirements in the stock and commodity markets (in other words, the credit levels allowed purchasers) and to act as a clearing house for many checks drawn on US banks.
While these incidentals are extremely important and represent enormous profit opportunities for member banks, they are not as important to the overall profitability of the operations to the Fed owners, as is realized in the ability of the Fed to secretly enter the financial markets and manipulate and control them (within reason and to a point as long the US dollar has value and acceptance) in any desired direction.
The Last Problems
In 1913, everything was on go for the big bankers. But there were remaining problems.
First, the US Constitution set the power to coin money and to regulate the value thereof with the US Congress. How could all of this power be placed in a privately owned corporation? Well, the solution was that the US Treasury would print all of the paper money wanted by the Fed and charge the Fed for the cost of printing. Hence, the Treasury prints the Fed notes and sells them to the Fed for pennies on the dollars.
The next big issue for the bankers was the possibility that the dumb, gullible public might become informed on what all was happening to their money and the secret actions of the Fed to use the US money in ways to make profits and gains for its secret owners and insiders. In other words, the people could get riled up against the bankers.
The last big issue concerned the possibility that the Fed (and especially in collusion with certain other privately-owned European central banks) could conceivably lose control of events or precipitate a collapse of the historically strong dollar. The stock market crash of 1929 almost brought about the end of the system. But massive federal spending by FDR saved the process for the Fed owners.
Too, with the development of the privately owned US central bank, there has been a simultaneous process underway where virtually the same people who own or benefit from the Fed also own or control the US media powers.
Thus, the people who control or have access to the Fed (i.e., the large international banks and bankers—possibly like the Rockefellers, Rothschilds, Warburgs, City Bank of NY, J. P. Morgan-Chase, Bank of NY, Kuhn Loeb and Company, Goldman-Sachs, etc--but this list does not include most of the small town local banks which are not privy to this operation) also own or control the US media powers (like ABC, CBS, NBC, CNN, AOL-Time-Warner, the Washington Post, Newsweek, etc).
With this dual control, the masses can be forever kept in perpetual ignorance about what all is going on behind the scenes. With an ignorant public, the status quo can continue and the big bankers will continue to make vast profits.
This is why people like Katherine Graham (now deceased, and one of the former owners of the Washington Post and Newsweek magazine) could go to the secret Bilderberg meetings once a year (where plans were laid on in secret by the plutocrats to make profits and install a world government) and nothing about the meetings would ever be made public in the US media.
The fantastic success of privately-owned central banks in England, France, the US, etc, prompted the banking plutocrats to decide to branch out in a world configuration. The plan was simple. The bankers joined arms with numerous other peoples who wanted the implementation of world government. In the deal, the bankers wanted to own and operate the world’s central bank (to make incredible profits).
To bring the bankers’ plans into fruition, the bankers chose a two prong attack. In the immediate here and now, the bankers caused the globalists to organize and develop three preliminary international banking operations--the World Bank, the Bank for International Settlements (BIS) and the International Monetary Fund (IMF).
The BIS clears checks and keeps track of the financial status/accounts of the various nations, relative to other nations. The World Bank makes loans and the IMF manipulates currencies and financial markets around the world on behalf of the leading international bankers. All of these big global operations are privately owned and/or are financed by gullible taxpayers in the Christian West and not by the benefiting rich banks/bankers.
Realizing that the above just cited international operations would take some time to evolve into a one world central bank, the banking plutocrats began working with other globalists, who likewise wanted world government, on a transitional process to create regional central banks and currencies to rule supreme in certain regions.
The first of these regional operations transitioned in Europe when the fat cats there started the European Common Market in the post WWII era. While the common market idea started with trade, it has slowly progressed into all kinds of things in the way of creating a single European government in the form of the European Union (EU). This entity is moving to encompass politics, religion, commerce, money, sociology, etc. Of course, the bankers soon came on board and organized their own EU central bank and issued its own currency (the EURO) to phase out all national currencies in Europe.
But the regional plan is greater than just Europe. There is also an organization of African states which is bringing all of the Black African nations into one entity. The plan is that the EU bank and EURO will eventually cover both Europe and Africa. The planners and shakers have a similar idea in mind for Asia where the Bank of Japan and the Yen will become the common financial operators in Asia.
The last area under consideration is the Americas. Just as the EU started on the basis of commerce and trade, the North American plutocrats pushed through NAFTA (North American Free Trade Association).
NAFTA was sold to the gullible American people on the premise of opening up markets to the US. Actually, the reverse has happened. Before NAFTA, the US had a trade surplus with Mexico and Canada. Now, the US has a deficit with those nations. But the American people simply never understood what this game is all about. Therefore, they have allowed it (in their state of ignorance).
Not only is there a plan to create a single state in North America (that’s why Vicente Fox of Mexico and George W. Bush of the US both worked for the removal of the US-Mexican border; thus, to allow free movement of people between the two states), the same thing is underway in South America where there is a unity movement in progress.
Right now, the plans of the plutocratic bankers is that both the North American and South American regions will come under the money control of the US Federal Reserve Bank. There is hope that eventually the US dollar will become the currency (to be called the Amero) in both continents (Canada and Argentina have both addressed this question).
So the question must be--will the bankers succeed in creating these three regional central banks and three regional currencies in a step toward their ultimate goal of a one-world central bank and one world currency? Since the plutocratic bankers are in the driver’s seat at this time (with all of their wealth, money and profits), the answer seems to be yes.
Something Else is Needed
But while the plans for a future world central bank seem assured in time (which the big bankers can control through their political lackeys and prostitute politicians in the various nations), the international bankers may not be able to completely implement their planned transitional operation of the three regional banks (though they may partially achieve this objective). Thus, there remains a fly in the ointment.
The story of Colonel Edward Mandell House applies here. Suffice to say, he was the de facto man in charge of America in the years 1913 to 1921 under Woodrow Wilson. House reportedly said that great reforms seldom materialize except during great upheaval. Obviously, the big boys want a great upheaval right now to bring forth more of their plans for world government and a world central bank.
There is substantial evidence suggesting that they elected George W. Bush in the US and will also elect his successor (if there is one) to bring about the desired great upheaval. This evidence would suggest that this upheaval can take place in two manifestations--a coming great economic and monetary collapse and a coming WWIII.
Probably, the international bankers want their three regional currencies and central banks in place before the coming world central bank and currency arrive. They are almost to the point of having the three regional banks and currencies right now. But once a great upheaval occurs, it will be a simple matter to complete the work of the three systems and immediately begin work on the one system.
Even under the one coming world system, perhaps the big boys will still allow some regional and national central banks (in order to use them to exercise control over the coming one world system). So likely, there will be some transitional days in the move to world government and a one-world bank and currency.
Howbeit, there is one critical problem present right now which may prevent the US Federal Reserve Bank from ever becoming the regional central bank for the Americas. The US has fantastic debt which is about ready to destroy the whole US economic, political, governmental and social systems. Without going into the specifics, it is estimated that US debt now exceeds $500 trillion and it keeps going up daily.
We are already seeing the fallout of the problem with the housing collapse. Some see an early crisis in the credit card markets. This whole thing can balloon up to the crisis level quickly and particularly so with the continual wars and political intrigues involving the US around the globe. Already, the Fed alone has spent some $one trillion dollars bailing out the big banks (the Fed has taken these steps unilaterally without congressional appropriation as is required by the US Constitution). There are questions about how much money that the Fed and the US government can spend before hyper-inflation sets in. For sure, it’s on the way!
Probably, the international bankers running things hope to contain the collapse when it comes in order to preserve the Fed. But maybe things will get out of hand and they will lose control (as they almost did in 1929). In fact, maybe the US government will be totally and completely destroyed in the coming upheaval. If this happens, there will be no Federal Reserve Bank or dollar to run things in America for any period of time.
Frankly, at the moment, this writer believes that the big boys expect to keep the status quo on the Fed and the dollar. But possibly things might not go so well in the coming days. The dollar and the Fed could both go down the tubes--along with the US national government.
The Consuming US
An NPR news report, on Jan 31, 2003, suggested that around 70% of the economic activity in the US is consumer driven. Actually, it should not take too many brains to figure out that the American social welfare state has created a lazy unproductive society which largely will not work and produces virtually nothing of real value (of course, the US is perhaps the world’s largest producer of weapons of war).
A person can go into almost any American town and the biggest and most important businesses are stores which sell consumer goods (Walmart is now the nation’s largest company). Many of these consumer goods are foreign produced (even much US food now comes from overseas). The result is that the US has been running a huge international trade deficit for years now. The monthly deficits are now running at about $50-60 billion.
But that’s only part of the money problem because the US government and actions of the Fed to control the financial markets also send billions of dollars overseas annually.
US government aid, gifts, payoffs, bribes and expenditures to foreign nations could be another $100 billion to $one trillion annually. In his Jan 2003 state of the union address, Bush wanted billions more for all kinds of things--including $15 billion to fight AIDS in Africa. But besides what US politicians publicly admit, many of these funds going overseas are hid from the gullible, voting public (lest the voters get mad and cut back on these funds).
The Bush administration’s Feb 3, 2003, budget request (in the appendix of the $2.23 trillion plan) additionally asked for $2.5 billion for “economic support funds” for the Middle East, $4.4 billion for “foreign military financing” (evidently not for US forces, but for foreign armies--like the mercenaries on the US payroll in Afghanistan), $5.5 billion to forgive some outstanding “economic and military grants” and $1.3 billion for the “Millennium Challenge Account” plus the more clearly defined foreign aid of $18.8 billion and perhaps another $12 to $14 billion more for Israel (Feb 17, 2003, “American Free Press,” p. 1).
Actually, the foreign expenditures also indirectly include billions more to maintain US military bases, government bureaucratic offices and embassies and traveling US dignitaries abroad. These expenditures are usually never identified as foreign, but that’s where the money is spent. Too, there are the vast payments made to the UN, the IMF, and other international agencies and functions (most of which ultimately goes overseas).
In order to manipulate and control the financial markets, the Fed also sends billions of dollars overseas whenever it chooses. This writer is unsure of how many dollars the Fed has shipped overseas because the Fed keeps these numbers secret. For certain, it has been billions or trillions (which could now be held in US debt instruments or deposits around the world).
Beyond the huge debt acknowledged, there is also the matter of loan guarantees of at least $70 trillion. The US government directly or through the US Exim (Export-Import) Bank guarantees vast sums of loans made overseas--usually, by US banks and businesses. What will happen if many of these loans fail and the US must pick up the tab? Of course, the answer is that the US will print worthless paper money and pay them off.
Too, there is the matter of continuous US wars and military and political movements against various nations around the world. These actions cost the US billions/trillions annually. To add to the problem they keep intensifying and going up in cost.
Assuredly, these numbers do not include the many bribes and payoffs around the world that the US has made or will make to foreign nations for support--which will also number in the hundreds of billions of dollars. Most of these nations and their leaders passionately hate the US. But they have given the US lip service and vocal support as long the US money keeps coming to them (as is well known, many of these leaders sock this US money away in secret bank accounts so that if they are kicked out of office they can have an escape fund).
The Mar 7, 2003, “The Week” (cover and page 24) had two most fascinating cartoons about George Bush and his spreading around of US dollars to support his war against Saddam and Iraq.
One cartoon was of a huge US transport airplane (perhaps a C130 or C5). The back tail section was depressed (opened) so that there was a huge bag of something waiting to be unloaded--obviously dollars since the bag was labeled $32 billion--in reference to the US plans to give Turkey at least $32 billion or more if she would just allow US military forces to use Turkey as a staging area to attack Iraq.
A couple of American soldiers were tugging on the bag of money. Another soldier had a written message in his hand. He said “Let me be sure I’ve got this straight...we drop the LEAFLETS over Baghdad and the CASH over Turkey.”
However, the best cartoon that week in the “The Week” was on the cover. It showed a George W. Bush in Arab clothing and riding a camel. George had a bag of US money ($100 dollar bills). He was throwing this money out in all directions. The air was full of these bills. And surrounding the camel, one could see a huge assortment of people with hands outstretched, trying to catch the money.
Yes, these two cartoons tell it like it is. George W. Bush is trying to become number one in the give away of US money worldwide to support his ambitions to control the Middle East (so that the Bushes, Rockefellers, Standard Oil, Halliburton, and the plutocrats will get to steal huge sums of money from the Muslim oilfields).
The point is that the US dollar is in a very precarious position. It is backed by nothing except the goodwill of the American people to work and pay it off. And that condition is simply not out there (as Americans generally won’t work for anything, since they have been spoon fed by the welfare state for generations).
Crashing the Dollar
Thus, the essence here is that the United States and the Fed have flooded the world with dollar bills. Foreigners are holding vast sums of US money, debt instruments, accounts, etc. And the US simply has virtually nothing of value to redeem these multiplied trillions of dollars now overseas.
While foreigners have bought much US land with this huge outflow of US money and debt, even this possibility is limited. The reason is because of the fear of exorbitant taxation from a society which is totally and completely bankrupt. As the US goes down the tubes, the states and counties will place enormous tax burdens on land owners (since that will be about the only thing of value that can be taxed).
Of course, the stage has been set for a total and complete meltdown of the US financial system (and when it falls, the bankers who created it will get in their private jet planes and flee to their hideouts and secret bank accounts in other nations of the world). The primary issue remaining is what will cause or bring about this meltdown?
For some time, in late 2002 and early 2003, rumors surfaced that if the US proceeded with an attack upon Iraq (and now the target is Iran); there would be a Muslim attempt to crash the dollar. In view of the vast sales of oil to America and the West and the fact that the oil-rich Muslim states have been placing this money in US dollars in New York banks, this possible course of action must not be ruled out.
In fact, months earlier, Iraq had started making some or all of her oil sales in EUROs. Of course, this was one of the key reasons why Bush wanted an Iraqi war. Since Iran has now followed suit and is turning to gold and currencies besides the US dollar, she too has provoked the big banks and invited an attack. Anyway, it certainly would be no problem for the oil producers (like in OPEC) to make their sales in EUROs or some other world currency.
Countries like Malaysia and Saudi Arabia are also looking into the issue of an alternative currency. Is it possible that if the oil producers abandon the dollar that the US dollar could tank? If the Muslims abandon the dollar, will other nations follow the same path? China in particular holds vast sums of US debt instruments. She could one day say: “No more.”
Regardless of what might be happening behind the scenes, it is a fact that the US dollar has been slowly falling in value in the foreign exchange markets. The May 23, 2003, “The Week” (p. 3) took note of this situation in a story on “Should the U.S. lift the falling dollar?” as if the US can stop the fall.
Per the report, foreigners own far fewer US assets than usual. “The Week” adds: “The worry is that, with their U.S. holdings worth less and less in terms of their home currencies, foreigners may decide to bail.” If they do, the US dollar will go into a free fall. The conclusion from the London “Financial Times” was that Europe, not Washington, will decide the fate of the dollar.
The artificial push-up of the US dollar by the Fed and various central banks in the past several weeks does not change reality. The US dollar is sick and weak. It is going down the tubes in a crash—not whether, but only of when.
Radio Liberty and James Dines
The Nov 2002 “Radio Liberty” (p. 4-5) quoted financial advisor James Dines who wrote: “Money is modern society’s most important commodity: the fulcrum of every financial transaction.
“Those who corrupt money are corrupting society right down to its most basic level, as cancer corrupts the cells of the body at the genetic level...the Eastern Roman Empire founded by Constantine lasted 1,000 years beyond the fall of Rome, probably because the bezant maintained the same value for over 800 years without inflation. Destruction of this currency in 1282 A.D. coincided with the Eastern Roman Empire’s downfall.”
“Radio Liberty” adds to the above: “Europe wants to overhaul the international monetary system and make the EURO the reserve currency of the world. The Islamic countries want to use the ‘gold dinar.’ If that happens, several hundred billion dollars held in other countries will flood our country and destroy our currency.”
Though not mentioned by “Radio Liberty,” the real problem is that the US has flooded the world with worthless dollar bills, bonds, and notes (IOUs) to buy consumer goods (which are not competitively produced in America) and to make bribes and payoffs around the world to benefit America’s secret plutocratic rulers.
Yes, the real problem has been and is with the American political leaders who have willingly debased and corrupted the American money system (in order to get votes and be re-elected). And it is the plutocratic rulers who supply much of the money to politicians for them to be re-elected. Tragically, many Americans are obsessed with the nonsense that the US is a republic or democracy. The truth is that it is a plutocracy ruled by the super rich, many of whom are goldsmiths/bankers.
-- Posted Monday, 18 August 2008 | Digg This Article | Source: GoldSeek.com