-- Posted Wednesday, 10 September 2008 | Digg This Article | Source: GoldSeek.com

Insiders behind the US Fed are maintaining control of the world's monetary system by deciding who will live and who will die. 

This week the US Treasury strongly implied that Freddie and Fannie bonds are as good as US Treasuries, and that the stock in these entities is worthless. 

Freddie and Fannie bonds were saved because China owns 1T dollars worth of them and China was getting nervous.  A careful look at the language of the statement reveals that there are loopholes.  There are two reasons for the loopholes:

1) So that it is somewhat credible to imply that the US Taxpayer is only on the hook for 200B
2) So that China and others remain in fear (but that the fear is not great enough to engender action)

For the last month the US Treasury, in conjunction with the CTFC, SEC, Goldman Sacs and others have conspired to annihilate gold and silver on the futures exchanges of the world in conjunction with massive intervention to prop up the US Dollar vs other currencies.  There are several reasons for this:

1) So that the US Treasury Bond and the US Dollar would appear to be the only safe harbor during the upcoming storm
2) To provide cover for insiders to close out short of gold and silver positions and go long
3) To further concentrate the short position in gold and silver into one or two entities that are targeted to be killed
4) To encourage non-insiders to enter short positions in gold and silver

Insiders behind the US Fed understand that the power to destroy wealth is an important aspect of the power to create money.  Famous business leaders, central banks and other once proud individuals and entities are lining up, begging to be included in the do not kill list.  The insiders at the US Fed are politicizing the entire monetary system, destroying the connection between honest profit and reward, between fraud and punishment.  Slowly the insiders at the US Fed are strangling the productive capacity of the economy and creating a gray market for gold and silver.   This can go on as long US Dollars are accepted around the world or until insiders at the US Fed decide to change the game.

I believe that insiders at the Fed are not planning to introduce a new currency, not planning to change the game.  I believe that they are interested in keeping their wealth and living out the rest of their lives in unencumbered luxury, even amid a world they they have destroyed.  The current Treasury Secretary has announced that he is retiring from the Treasury at the end of the Bush administration, that the next administration will have to sort out Freddie and Fannie.  I take him at his word. 

Watch the price of gold carefully.  Gold is the only viable alternative to the fiat currencies for storing large amounts of wealth in a generic form.  Once gold starts to accelerate away from previous highs, it will become attractive as an alternative to the depreciating dollar, even for large holders of dollars.  If fraudulent promises to pay in gold and silver blow up, this will only panic the public into a more intense interest in gold and silver and out of the dollar.  Unlike the holders of Fannie and Freddie bonds, people who find out that they don't really own gold and silver are not going to be happy taking US Treasuries.  During a time of profound distrust in the value of any monetary promise, an ounce of gold in hand could be worth a small fortune.  Under this circumstance, silver would become the common medium of exchange, and silver would increase in value by many multiples as well.

My heart goes out to all who read this and understand.  This is not an easy time.


by: Vincent Bressler
vincentbressler@yahoo.com
-- Posted Wednesday, 10 September 2008 | Digg This Article | Source: GoldSeek.com

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