-- Posted Sunday, 5 July 2009 | | Source: GoldSeek.com
By R. D. Bradshaw
The rise of gold prices during the past couple of years has sparked much interest from writers, publishers, investment counselors, news sources and so forth over the prospects of further price increases in gold in the future. In general, most informed people agree that it’s going up; and many or most look for some big price increases soon because of the present economic problems and fear over the reserve status of the US dollar.
While there have been some vacillations back and forth on the predictions, I have consistently made the case in the Goldsmiths that gold will indeed explode up one day--if and when the Rothschilds either have it all/almost all or they lose control. When one or the other happens, gold will literally explode into the ceiling. Thus, the price of gold, from my perspective, has been largely dependent upon whether the Rothschild Cabal continues to be in control of the financial markets or not. Actually, the same thing can be said for silver, wheat, corn, orange juice, the euro and almost all commodities and currencies.
So, will gold and whatever be going up or down? Well, it depends upon what the Cabal wants at a given moment in time in order to make the most profits and rip the people off the most. Too, as I have also repeatedly said, the Cabal’s control over prices and events will continue to be in place unless something dramatically happens over a period of time to change or alter that control. Particularly, in the Goldsmiths, Part LXXVI, I summarized some of the things which can cause the Cabal a loss of control in the future.
Without repeating those several things, which can go wrong for the Cabal, I will in this Goldsmiths focus on the one item which is developing as the more likely of all to interfere in Rothschild operations. Though there is no intent on my part to downgrade the other possibilities, this one at the moment seems to offer the best chance of development.
Though I have often put China at the head of the list for trouble, I have recently begun to look at one of the other options as being more plausible in the near term. Of course, China sounds logical but as the days progress it is becoming clearer that China is not likely near term to do anything too dramatic/drastic to upset the current balance of power. She might do it a little later on, but not right now in mid 2009.
A Revisit to this One Cited in the Goldsmiths, Part 76.
In this context, I have been leaning to the prospects for a major food loss as being at or near the top of the list of potential problems for the Rothschilds. I cited this one in the Goldsmiths LXXVI. It’s not to say that the other listed reasons are not developing presently. They are. It’s just that the others, like China, are not moving extremely fast here in mid 2009. They are all on the drawing boards for ultimate fulfillment—but later and not right now.
In various news reports and analyses at www.analysis-news.com, the subject of the US food supply and valuation factors are discussed from time to time. In the main, the supply issue (which can upset the Rothschild Cabal’s control of agricultural commodity prices) is largely dependent on two things--how much food is planted in the US (or how many farmers are planting how many acres) and the weather (which, as I discuss at analysis-news.com, is even controlled or influenced by the Cabal thru DARPA and its weather alteration program).
Before the Cabal moved on Sep 1, 2008 to crash commodities, there had been some improvements in food prices at the production level. This reality, in early 2008, prompted numbers of people with access to land to plant as many agricultural crops/areas as possible. This was particularly true with grains in the US Midwest and Great Plains. The result was a small rebound in the food harvest for 2008. But with the Rothschild imposed collapse, it has meant that food prices went back down and farmers cut back on their planting plans.
Tragically, for farmers, the fall in prices in 2008 has meant that more and more farmers faced the on-going problem of how to survive. A news report from The Capitol Times of Madison, Wisconsin quoted John Kinsman, a local dairy farmer and president of the Family Farm Defenders.
Kinsman said: “Many U.S. farmers are going out of business because they receive prices equal to about one half their cost to produce our food. How long could any enterprise receiving half the amount of its input costs stay in business? As an example, dairy farmers in the Northeast and Midwest must be paid between 30 and 35 cents per pound for their milk to pay production costs and provide basic living expenses. Until 1980, farmers received a price equal to 80 percent of parity, meaning that farmers' purchasing power kept up with the rest of the economy. Unfortunately, a 1981 political decision discontinued parity, and today the dairy farmers' share is below 40 percent.
“ ‘Free trade’ and other regressive agricultural policies have decimated farms. We are now a food deficit nation dependent on food imports, often of questionable quality. Our food system is nearly broke, which is almost as serious as our country's financial meltdown. With fair farm policies, farmers would get fair prices that would not require higher consumer prices… In addition, excessive middleman profits are taking advantage of both consumers and producers. As more farmers face bankruptcy, we all face a food emergency…
“Despite the magnitude of this food emergency, the ‘farm crisis’ does not appear in headlines, so politicians are not compelled to provide political or financial assistance to something that would likely fail to bring votes. As farmers, we are now only about 1 percent of the U.S. population, and have little power to expose and prevent our demise.”
Kinsman put it well. Farmers, or at least the smaller family farmers, are going out of business. What agriculture is being done is being done by large corporate farmers who are strictly in it for profit. As the Cabal continues to manipulate prices down, it means that small family farmers, who have to plant a crop to survive, are being forced off the land; and large corporate farmers are simply not going to plant unless they can make a profit. This environment translates to a coming food crisis. There is no way to avoid it.
If there is one thing presently holding it together and giving family farmers some hope of receiving a decent return, it has been the weather. Though the Cabal (thru its control of the US government and the weather manipulations at DARPA) has been creating rain (which can make grain), Rothschild control could easily come to a screeching halt one day. Already this year, we are having profoundly important weather problems (while rain makes grain, too much rain, coupled with hail and storms, does not; and also there is the possibility of drought).
As noted in the Goldsmiths 76, a huge crop loss will cause enormous problems for the Cabal manipulators. And right now, this reality is shaping up to be one of the more likely possibilities for a loss of Cabal control this year and perhaps even next year if something else doesn’t surface to cause the Cabal enormous control problems.
The Cabal is still running the US show. Its power over the US dollar and the large central banks is either discouraging the Chinese or making it hard for the Chinese to do much to break the power of the Cabal to manipulate the markets with the dollar and control the prices of gold, oil and other commodities. There is no doubt that such option is coming one day; but the problem is when. In the meantime, we must turn to the here and now. For that, food may be the best near term possibility for Rothschild problems.
This backdrop on the curtailment of food production (because of declining producers or less production) will bring about a loss of the Cabal’s power over a large segment of commodities. Prices will literally go up despite the efforts of the Cabal to control them in a deflationary fall (which is what the Cabal has been pushing off and on for two years now). Believe me, if food starts going sharply up, we can bank on it that this condition will influence other commodities and the dollar since most of them are inter-related.
Now to the Question of Hyperinflation
In numerous Goldsmiths I have written extensively about the prospects for hyperinflation. I think it is eventually coming but we are in a depression right now which could ignite some serious deflationary moves short term as the Cabal seems to be directing things presently. As a minimum, the banks are not lending money and the economy is in a serious slow down.
Some sources have made strong arguments for a serious deflationary collapse this year, like Market-Ticker. And now the latest proponent of deflation is the Elliott Wave sources. Market Watch on July 1, 2009 addressed this course in the vein of a devastating deflation which can see gold go down to $680 or lower.
Market Watch quoted a leading Elliott Wave proponent: “If hyperinflation is coming, how come gold doesn’t know about it? Investors know full well how much credit the Fed and U.S. government are attempting to inject into the economy, as these figures are reported almost daily in the media. … With consumer prices reflecting deflation and expectations staying high for hyperinflation, the stage is set for deflation to overwhelm all sectors of the economy.’ EWFF is completely skeptical about the authorities’ attempt to stave off deflation, saying: ‘Not a day goes by without a proposal for some new law or government decree that will only strengthen the grip of deflation.’”
Alternatively, there are some sources out there opting for a quick hyperinflationary blow off. But these sources are decreasing in number. One of the advocates on this option long held that it was imminent and only later would a depression result. I note that this source recently changed its prediction to soon coming hyperinflation with a co-existing depression (which is what I have consistently held to eventually happen, but not immediately). Certainly, the depression we are now in begs for some strong deflationary pressures. Consequently, we could easily have some deflation problems near term.
To the list of questions on the deflation course, we must add the words of Ellen Brown at webofdebt.com and her report of Jun 21, 2009 on the Retreat of the Shadow Lenders: Why Deflation, Not Inflation, is the Order of the Day. She wrote: “While contrarians are screaming ‘hyperinflation!’, the money supply is actually shrinking. This is because most money today comes into existence as bank loans, and lending has shrunk substantially. That means the Fed needs to ‘monetize’ debt just to fill the breach.”
Ms Brown made her case by charging that the money supply is not expanding. She cited investment advisor Mark Sunshine from a June 12 blog: ‘[W]hile media talking heads were ranting about how the Fed was running their printing presses overtime to push up money supply, the facts were very different. M1 has actually declined since the middle of December, 2008. During the same six month period M2 has only risen by a little less than 3%.’
“The Fed is no longer reporting M3, the largest measure of the money supply, but according to Sunshine: ‘[W]e know that broader measures of money supply, like M3, haven’t materially risen in 2009. M3 followers can get a very rough idea of what M3 would have been, if it were published, by looking at the Federal Reserve quarterly Flow of Funds Accounts of the United States which was distributed yesterday. As it turns out, total net borrowing of the United States (private and public) dropped approximately $255 billion in the first quarter and other indicators of M3 fell or are about flat (on a net basis). . . . [T]his data supports [the] theory that the fall in private borrowing is more than offsetting the rise in government borrowing and therefore, at least for the time being, financing the deficit isn’t a problem.’”
Ms Brown further makes her case by noting the global credit freeze. She adds that when credit shrinks, the money supply shrinks with it. The point she makes is that at present the money supply is not increasing to cause an inflation problem. The message is that in this present arrangement, hyperinflation is out of the question. Her remarks are good to address.
To be sure that we are all on the same wave length, here are the applicable definitions from Answers.com: M1 is the narrowest measure of the Money Supply. M1 includes currency held by the public, plus travelers' checks, demand deposits, other checkable deposits (including negotiable order of withdrawal (NOW) accounts, Automatic Transfer Service (ATS) accounts, and credit union share draft accounts).
M2 is a category within the money supply that includes M1 in addition to all time-related deposits, savings deposits, and non-institutional money-market funds. Investopedia says: M2 is a broader classification of money than M1. Economists use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions.
M3 is the category of the money supply that includes M2 as well as all large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets. Investopedia says: This is the broadest measure of money; it is used by economists to estimate the entire supply of money within an economy.
Despite the obvious implications of M3 and its importance to the economy, the Fed has quit reporting and talking about M3. Obviously, the Fed wants the public to be kept in the dark about M3. Regardless, the classic textbook definition is that too much money chases too few goods which cause prices to go up. As I have noted in former Goldsmiths, we could have inflation, either with an increase in the money supply or a decrease in the availability of goods and services.
Ms Brown and almost all persons addressing the question of inflation and the possibilities of a hyperinflationary collapse inevitably focus on the money supply. And Ms Brown’s argument is well made that maybe the money supply is not increasing presently.
But What About the Availability of Goods?
But for purposes of this Goldsmiths, let us focus on the availability of goods and services rather than on the question of increases or decreases in the money supply. While I don’t propose to suggest that we might soon face a decrease in most services or even most manufactured goods, I would assert that the question of the supply of food is perhaps in a different category. We very well could have a shortage of food—for whatever reason.
If we had a serious crop loss or even a significant curtailment (as could happen this year or next year), what would that do to the Cabal’s push for deflation in our society? And on this option, please don’t look to the agricultural data being produced by the US Dept of Agriculture. This agency, like most of the other Federal agencies, is notorious about lying and deceiving the suckers as to reality (in order to support Cabal objectives). The problem here is that early in the year, the USDA seems to habitually make outrageously high forecasts which usually don’t materialize in the real world.
As discussed in the Goldsmiths 27, 47 and others, we could be moving to the point of where most people only have sufficient income to buy the minimum essentials while also paying the bankers their demands for most of our money. The essentials generally include housing and utilities, transportation, clothes and household expenses, intangibles (taxes and insurance) and food. Of this list, food becomes the most important one of all. If the US had a crop problem, food costs could accelerate to the point that it overshadows all the other so-called essentials.
While housing costs and perhaps transportation expenses have went down and may go down further in future days, most of our essentials won’t change that much. For sure, I don’t know of any decreases in insurance, taxes or utilities as most of these items go up. Even postage rates continue to go up year by year. But if food really spikes up, it could upset the whole fabric of the manipulating work of the conspirators to impose further deflation on the society.
The bottom line here is that at the moment a very good case can be made for a crisis in food to bring about the first real test of the Cabal’s power over America. Frankly, I don’t think the Cabal is capable of dealing with a food crisis. While the manipulators have collapsed food prices in the last year and continue to control them in the present situation, I can see where they may have problems—perhaps as early as the fall of this year. If food prices take off, we can rest assured that gold and silver will be going up.
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Back issues of the Goldsmiths, by the editor of the Analysis of News, can be accessed from a Google or Yahoo search engine by typing in “R. D. Bradshaw” Goldsmiths. Several hundred web sites can be found with the back issues and with translations to Spanish, Italian, German, Polish, Dutch, Chinese and other foreign languages. Finally, the “Archives-Goldsmiths” of this website (www.analysis-news.com ) has all of the Goldsmith articles issued to date.
Besides the revelations contained in the Goldsmiths’ articles, the work of the plutocratic financial market manipulators to conspiratorially manipulate and control the financial markets (to make more profits and install a world government under their management) is also addressed at length in the periodic analysis of the news and in other articles produced at www.analysis-news.com. This website has an article of interest to any person interested in understanding the market Manipulators. It is the Hidden Secret of the Manipulators, why they succeed and how to follow their manipulations.
Readers of the above articles are invited to visit www.analysis-news.com and become a subscriber to regularly read some of the material from the world of information which will further reveal how extensive the manipulation, control and dishonesty realities are in the financial, currency and commodity markets, not only in the US but indeed around the world. To go to the home page of this website, please click at the link here: www.analysis-news.com.
-- Posted Sunday, 5 July 2009 | Digg This Article
| Source: GoldSeek.com
