LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Palladium Melts Up
By: Ed Steer

What Expiring Bubbles Look Like
By: Gary Tanashian, NFTRH

Where Did the Housing Market Go, and Where is it Going Next? My first 2020 Economic Prediction
By: David Haggith

Gold Stocks Wavering
By: Adam Hamilton, Zeal Research

Precious Metals Update Video: A trade deal with China and what kind?
By: Ira Epstein

Looking on the Bright Side
By: John Mauldin, Thoughts from the Frontline

COT Gold, Silver and US Dollar Index Report - January 17, 2020
By: GoldSeek.com

The Genius of JPMorgan
By: Ted Butler

Precious Metals Update Video: Gold Market Trying to Figure out Where Next?
By: Ira Epstein

A Tale of Two Markets
By: Gary Christenson, The Deviant Investor

 
Search

GoldSeek Web

 
Gold and Silver Storm the Fed



-- Posted Thursday, 5 May 2011 | | Source: GoldSeek.com

All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.

      John Adams (1735-1826), American President

 

Americaís founding fathers would not be surprised at the dire state of the nation they created in1776. America was then an experiment. No similar form of government had ever been attempted; and even at its birth the founding fathers had doubts as to whether the American experiment would succeed.

 

Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide.

John Adams (1735-1826), American President

 

The once great nation of America is now a goat rodeo where the electorate is both confused and ignorant yet stubbornly believes itself otherwise. Adroitly ruled by corporate and banking elites whose deadly threat remains unrecognized, America today is bereft of leadership and options, a shadow of the nation intended by its founders.

 

The warnings of those who created America have long been forgotten. John Adamsí words regarding the dangers of not understanding the nature of coin, credit and circulation was clear warning to those who would later place the nationís currency in the hands of private bankers.

 

The central role played by central banking in Americaís problems is not understood by most Americans. However, the founding fathers clearly understood the dangers posed by the issuance of debt-based money from central banks. On my program, Dollars and Sense, .I explain the system of central banking adamantly opposed by our nationís founders, see http://www.youtube.com/user/SchoonWorks#p/a/u/0/vjViF97hHSM

 

Of the founding fathers, Thomas Jefferson especially recognized the dangers that central banking posed to the American experiment:

 

The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin [gold and silver coins]. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.

 

Yet, on December 23, 1913, private bankers gained their long-awaited advantage over America when business and corporate interests successfully created the Federal Reserve Bank, a central bank which the founding fathers had fought the Revolutionary War to prevent.

 

After 1913, a consortium of private banks which would henceforth issue Americaís currency in the form of debt, i.e. Federal Reserve notes, in opposition to the wishes of those who founded America.

 

The Fedí substitution of its paper notes for gold and silver has now caused the nation irreparable harm. Since 1913, the bankerís debt-based currency has resulted in the transfer of most of Americaís wealth to the moneyed elites, leaving the rest of America impoverished and in debt. Today, the very top 1 % of America receives 25 % of its income and controls 40 % of its wealth.

 

The bankersí parasitic plunder of America is almost complete as Americaís politicians have sold-out the country, members of both parties are now indentured to the special interests who openly buy their votes behind closed doors.

 

..deep down in our hearts, we have been accomplices to doing something terrible and unforgivable to this wonderful country. Deep down in our hearts, we know that we have bankrupted America and that we have given our children a legacy of bankruptcy. ... We have defrauded our country to get ourselves elected.

Senator John C. Danforth (MO-R), April 22, 1992

 

The bankersí triumph, however, is not complete and were it not for their insatiable greed, the bankers would already own America. But in 2008, the bankerís greed, overstepping all bounds, almost destroyed the global economy and significantly damaged the worldís banking system; and while this is bad for the Fed, itís good for America.

 

Only the complete collapse of the Federal Reserve System and central banking can now free America from eternal debt enslavement; and while itís been a long time since 1776, there are more ways than one to overthrow the few who tyrannically rule the many by credit and debt.

 

CENTRAL BANKINGíS CONUNDRUM

 

The foundation of central banking was the convertibility of its debt-based paper money to gold or silver. This convertibility provided the confidence to exchange valuable goods and services for the bankersí paper banknotes.

 

The ability to convert paper banknotes for gold and silver provided the requisite confidence for the bankers system to function. As long as the delicate balance between credit and debt could be maintained, this system, known as capitalism, provided England with an insurmountable advantage over the rest of the world.

 

England alone was able to send its army and navy to war on credit. Its navy essentially became a fleet of state-sponsored pirates, allowing England to invade other countries with impunity, plunder their wealth and become the largest empire in the world since Rome.

 

The British empire, however, reached its apogee in the mid-19th century and when its empire began contracting, the bankers needed another country to serve their now insatiable ambitions and need for profits. America was their country of choice.

 

In 1913, the creation of the Federal Reserve Bank in America afforded international bankers the very same opportunities conditional upon America fulfilling two essential prerequisites: (1) maintain the convertibility of paper money to gold or silver, and (2) maintain the critical balance between credit and debt. America failed to do either.

 

America maintained the convertibility of paper money until 1971 when the US had overspent its gold reserves after WWII and could no longer convert US dollars to gold; and, as a result, the balance between credit and debt after 1971 also became heavily imbalanced in favor of debt when the US discovered it could easily trade its paper dollars for the worldís wealth without a concomitant transfer of gold.

 

America took Englandís golden goose, spent the gold and now the days of central banking are numbered; and whether you know it or not, this crisis presents America with a priceless opportunity to free itself from the unconstitutional abrogation of the right to live, work and prosper free of the parasitic bankers who profit from the indebting of others.

 

THE SURGING PRICE OF GOLD AND SILVER AND THE COMING COLLAPSE OF THE FEDERAL RESERVE

 

When the US could no longer convert its US dollar to gold in 1971 as required under the Bretton-Woods agreement, paper currencies everywhere became only government promises to pay. For the first time in history, all money became fiat.

 

Central banks rightfully became concerned that the value of their currencies, when no longer convertible to gold or silver, would loose value; and, indeed, that is what began to happen.

 

Governments everywhere began printing more and more money as gold no longer had to be exchanged for excess currencies held by other countries; and, of all the countries that abused the new found ability to do so, the US was the greatest transgressor.

 

This is why the US soon had the largest trade imbalance in the world. The US took advantage of the reserve currency status of the US dollar to begin buying more oil from the Middle East and more goods from Asia.

 

First Taiwan in the 1970s, then Japan in the 1980s, then China in the 1990s and 2000s found themselves with increasingly excessive amounts of US paper money. Lacking the need to exchange gold for its dollars, after 1971 the US went on a worldwide spending spree with its increasingly worthless US dollars; and, today, the rising price of gold and silver reflects the worldís growing unease with still growing US deficits in both its domestic budget and foreign trade.

 

Of the 21 trading days in April, the price of gold reached record highs on 15 of those days. The ascent of silver was even greater. Todayís acceleration of silver and gold is an indication that Fedís attempts to continue central bankingís 300 year hegemony are failing.

 

The below graph compares the price of gold to the NASDAQ and US housing bubbles; and while gold is not a bubble, to the unknowing it can appear to be so. That is because gold is moving inversely to another bubble, the now-deflating bubble of paper money, the largest bubble in history.

 

 

In April, hedge funds bet billions that the US dollar would fall and they won the bet. The price of gold is currently tracking both the demise of the US dollar and the collapse of confidence in the Fedís global ponzi-scheme.

 

Instead of being afraid of the future, Americans should be rejoicing.

 

FRAUD AT THE FED

Is the Fed engaged in fraud?

Does a bear sh*t in the woods?

Do hemorrhoids hurt?

 

Eric deCarbonnel has posted a remarkable video on fraud at the Fed: In FRAUD: Federal Reserve Is Selling Put Options On Treasury Bonds To Drive Down Yields, Mr. de Carbonnel provides a clear-cut narrative as he connects the dots on a Fed scheme to distort interest rates, thereby misleading buyers regarding the risks associated with US Treasuries.

 

Mr. de Carbonnelís twelve minute video goes by with remarkable speed, leaving the viewer both enlightened and repulsed, somewhat akin to watching Hannibal Lectureís handiwork being explained in detail.

 

We are indebted to Mr. de Carbonnel for his revelation of what would be in a just world, the smoking gun. But this is not a just world. This is America where power determines whatís right and wrong, where the scales of justice are weighted in favor of those who rule and where the cries of the less fortunate are dismissed as undeserved.

 

Nonetheless, Mr. de Carbonnelís indictment will give the viewer a clearer understanding of the smoke and mirrors deployed by the Federal Reserve. His video can be viewed at

http://www.youtube.com/watch?v=ZnZnkaq8Nf8&feature=player_embedded#at=31

 

That the Fed would engage in fraud to perpetrate the ponzi-scheme of which the Fed is the principal is not to be unexpected. The Fed is engaged in a fight to the finish, although the Fed does not yet know the end is far closer than believed.

 

What economists perceive as a series of unexpected exogenous shocks are instead the signs of systemic instability caused by the collapse of their debt-based paradigm. Bankers will be surprised when their control over the worldís wealth and resources ends along with the paper money that made it possible.

 

The bankersí self-centered concern about the future is justified as the Fed is vulnerable as never beforeóand while this may be bad for the Fed, it will be good for the rest of us, especially America..

 

Question: What will bankers do?

Answer: They will have to find gainful employment in a world where parasites no longer rule.

 

                                                             AMERICA THE FROG

 

 

 

The frog is frozen still

In water now so hot

The waterís almost boiling

But the frog knows it not

 

Quickly it must jump

To avoid a boiling death

The Fates themselves are watching

With collective bated breath

 

Will America survive?

Or will it now succumb

Its heritage abandoned

Its future now undone

 

By its own hand itís threatened

Itself its great threat

The frog continues sitting still

In denial ignorant yet

 

The waterís getting hotter

The heatís turned up to high

And itís an even money bet

That the frog is gonna die

 

Buy gold, buy silver, have faith.

 

Darryl Robert Schoon

www.survivethecrisis.com

www.drschoon.com

Blog www.posdev.net/pdn/index.php?option=com_myblog&blogger=drs&Itemid=81


-- Posted Thursday, 5 May 2011 | Digg This Article | Source: GoldSeek.com




 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.