-- Published: Wednesday, 3 September 2014 | Print | Disqus
By Bill Holter
I wrote yesterday that "something will be needed to point at" in order to blame or explain a market panic. Over the weekend, Zerohedge posted an article written by a writer who goes by the name "George Washington". The article speaks of 28 pages of the 911 commissions report which is currently "classified", there is now a movement even within Congress to declassify it.
I won't get into the "911 debate" as to what or how it happened, I have my opinion and you have yours. I will say the commission itself was clearly hamstrung to truly investigate and no matter what the classified 28 pages say, they are most probably not complete truth or possibly even just plain wrong. Rumor has it (I normally don't like to deal in rumor but this is logical) that Vladimir Putin has the Snowden files which "outs" what really happened. If this turns out to be true, what will happen to the "faith" part in the phrase "full faith and credit" of the U.S. government?
While reading the article, something else kept crossing my mind. The "fear" is that Saudi Arabia will be implicated in some fashion. Do you see where I might have been going while reading the article? First and foremost, this report may point a finger directly at Saudi Arabia. Whether they had any participation or not is immaterial in my opinion. If they did, declassifying or delaying declassification of this report may be a bargaining chip used against them. When I say "against them", I am talking about the possibility Saudi Arabia begins to accept currency other than dollars for their oil. Hanging this report over their heads may have been a way to hold them in the petrodollar scheme, delaying it could also serve to keep them in the dollar game, for now.
Let's look at this from another couple of angles. There has been speculation Saudi Arabia does not have the oil reserves they claim to have, is this true? Are they now of "less use" to the U.S.? Or conversely, pointing a finger at the Saudis as being behind 911 could be used as an excuse to go after them? If they truly do have the claimed reserves, Saudi Arabia would be a very profitable "conquest".
From even another angle, the percentage of Americans who still believe the "official" version of 911 is now at an all time low. The sheeple are stirring and there are now more whom believe it was a demolition job with many many more on the verge of either changing or making up their minds away from the official version. This could possibly simply be a distraction of some sort, we will see.
Think this through for yourself, I will help you with some questions that should be asked. First, why now? Why, 13 years later is this being brought up in Congress and even being reported on by the main stream masters of hide and seek? Have we set our sights on Saudi Arabia and their oil? If this report does come out and implicates the Saudis, what will their reaction be? Will they actually dissolve OPEC and accept non dollars? Or, will they specifically NOT accept dollars any longer. There are all sorts of questions to be asked, I just personally cannot get away from the possibility of the Saudis being used as a scape goat for a system in panic. From so many different angles, the outing of this information can and will roil the markets, most obviously the dollar and Treasury markets. When this news first came out 3 months or so back, my first thought was "uh oh, is this how the plug will be pulled?". I guess we'll just have to wait and see?
In other weekend news, proof positive of central banks from around the world trading (buying) stock futures has been uncovered. Have you wondered how the stock market has not had any serious corrections in the last 3 years? Wonder no more, central banks have dampened volatility and put their bids under stocks. In essence, they have been printing money out of thin air and then using the money to support the markets, Da Vinci I think would be jealous of this painting scheme.
While we now know for a fact that stock markets have been supported, the "ostrich society" continues to disavow any precious metal manipulation. Without writing a full article, I want to say silver is "stupid cheap". It is too cheap in relation to gold and roughly 20% below its cost of production. The current ratio is 66 silver ounces to one ounce of gold. Silver is taken from the Earth at ratio much closer to 15-1 which matches the ultra long term price ratio. In my opinion, silver is THE cheapest or most undervalued asset on the planet ...and one which central banks do not have any stockpiles of whatsoever.
I know you are probably thinking "what do these topics all have in common?". Simple, everything is rigged. You must ask yourself every single day, "what is truly real and what isn't?". Stocks, bonds, commodities, news and information, elections or what have you, everything. Tying this back to the piece I wrote yesterday, when the "rig" fails there will be by necessity something to point at as to what went wrong. Saudi Arabia "defecting" from the Anglo banking system would surely fit the bill. I have believed for quite sometime, Saudi Arabia will in fact move "Eastward" and ally themselves with Russia and China. In so doing this, the Anglo American banking interests can demonize them as "a", one, or one of many "causes".
I obviously don't know "when" but I can say the "rigs" will eventually fail, they always have and always will throughout history. If central banks have been levitating the stock markets, holding interest rates down and suppressing precious metals prices then it goes to reason we will see the opposite whenever the rigs do finally fail. We may see crashing stock markets until investors understand them as an exit from hyperinflating currencies ...at which point stocks will bottom and explode upward. It also stands to reason we will see interest rates rising as well as an absolute panic into precious metals for safe quarter.
The rig in the precious metals arena has been the most egregious and I will say the most dangerous rig to the "riggers" themselves. I say "dangerous" because they cannot be printed to supply delivery requirements. Precious metals also have another "emotional" aspect to them which many if not all markets do not. You have heard the phrase "there is no rush like a gold rush". This is because in times of panic or turmoil, the higher the price goes, the more the public will want metal. This is a funny anomaly but history has shown this very emotion to be prevalent at the worst of times. The problem for the banking system is the only way to calm a frenzied gold or silver market is by delivering metal for delivery. If metal does not exist, the price must go to a level that creates private supply (sales) from the sidelines. Your next question then is whether or not there is enough confidence in fiat for sellers to accept them? This is the big question, whether or not sellers can be enticed to sell and create supply. I personally suspect the answer at some point will be "no", and as a result, several new asset backed currencies will be introduced out of necessity.
Regards,
Bill Holter
http://blog.milesfranklin.com/
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-- Published: Wednesday, 3 September 2014 | E-Mail | Print | Source: GoldSeek.com
