-- Posted Sunday, 31 May 2009 | | Source: GoldSeek.com

US MARKETS

            The Chinese and Russians are the laughing stock of the US and European Illuminists at the G-20 meetings concerning talk about a new world reserve currency to supplant the dollar.  With China's gold reserves of about a thousand tons and Russia's five hundred tons, they are like penny ante poker players trying to get in on a thousand dollar ante game.  They need five to ten thousand tons of gold reserves just to be an average player in "The Big Game," much less a leading and influential player.  The rest of their foreign exchange reserves are denominated in fiat currencies, which are all practically worthless except for the euro and Swiss franc. The euro has about 5% backing of gold and the Swiss could have 25% backing if they again desired gold backing.  China has about two trillion dollars worth of foreign exchange reserves, while Russia has about 400 billion dollars worth.  It does not take a math genius to figure out that two trillion times nothing is still nothing.  They are creditors who hold worthless bonds and notes.  Big deal.  Their only trump card is that they can make gold skyrocket and the dollar tank before the Illuminists are ready to take our financial system down.  This is where their real leverage lies.

            The talk about yuan and rubles as part of a world currency basket is just noise, like a bunch of clanging cymbals making cacophonous sounds, because they have very little gold backing.  At best, unless China and Russia add many thousands of tons of gold to their reserves to back up their currencies, the yuan and ruble will get some regional play, as a run-up to a world currency.  This is just hubris to distract us from the true agenda, which is the formation of a single world currency.

            While gold suppression is the Fed and the US Illuminists' number one priority, it is not their number one problem.  So what is their primary problem?  It is how to transition from the dollar to a world currency without losing too much of the powers and privileges that can only be attained by having sole control over the world's reserve currency.  They can't figure out how to share this power with the other Illuminist enclaves in setting up a new world currency without substantially reducing their own power. This is a conundrum for them.

            China and Russia are both well aware that they must acquire substantially more gold if they want to have any say on the matter of a world currency. The trick is, how to acquire new gold reserves without sending gold on a moon-shot or causing harm to the dollar by dumping dollars for gold.  This is the opposite of what the Fed and US Treasury want, at least for now, until they are ready to take the system down to pave the way for a world currency and a one world government.  So the Chinese and Russians are now at loggerheads with the US and European Illuminists.  What China and Russia need to do in their own best interests is an anathema to the Fed and the US Treasury. This may explain the IMF gold sale rumors.  China wants more gold, and this would be a way to grab a large chunk without running the gold price up, which would make the Fed go ballistic.

            The US and European Illuminists are also in a cat fight, because the European enclave controls more gold than the US elitists, so naturally they do not believe that the system of dollar hegemony, and all the privileges that go with it, should be continued any longer.

            You might be tempted to think that, in reality, the US gold reserves and, for that matter, central bank gold reserves around the world, are not what the central banks claim them to be, due to leasing and outright sales, so the US and European Illuminists are in no better position than the Chinese and Russians with respect to the debate about a new world reserve currency.  You would be dead wrong if you thought that. Why, you might ask?  Let's discuss that.

            Never mind that the roughly eight thousand tons of US gold is stolen or hypothecated, because the US and European Illuminists stole a large portion of it, or they bought it at fire-sale prices and still have it in their secret vaults in Switzerland and off-shore in safe-haven countries.  Who do you think was doing all the buying during the London Gold Pool of the late 1960's, just for starters, which was fueled by Fort Knox gold provided courtesy of President Johnson, who was an elitist bootlicker and one of the most evil men of the 20th century?  Why do you think US coin melt from the Depression is showing up in London gold vaults?  Rumors still abound that the Rockefellers, with President Johnson's help, stole a large portion of the Fort Knox gold during the London Gold Pool days, and those rumors could well be true based on what we have heard from some of our subscribers who used to work at Fort Knox.  Could that explain why one of Rockefeller's secretaries, who blabbed about them acquiring some of the US gold, "accidentally" fell out of a high rise building?  Could it be that President Johnson was grateful for Rockefeller's help in eliminating the pesky President Kennedy when he tried to put their precious Fed out of business via Executive order 11110? We'll let our subscribers decide!

            The same is true for the European gold holdings and the holdings of other central banks around the world, which are a fraction of what they claim, perhaps with as little as five thousand tons remaining out of some thirty thousand tons officially claimed by all central banks, including the privately owned US central bank, the Fed, via its so-called gold certificates, which are claims on the US Treasury gold.  Rest assured that much of this gold was leased out and sold not just to jewelers, but to the US and European Illuminists as well.  In addition, much of this central bank gold was either pilfered outright, or was virtually given away by people like Gordon Brown of England, the King of Fire-Sale Gold, who sold half of the UK national gold reserves to the Rothschilds and other Illuminists at the bottom of the gold market.  The remainder of the UK gold reserves is probably leased out and gone to oblivion like the US gold.          The people in the UK are minus eight billion and counting on that one, while the Rothschilds are on the plus side of that equation.

            And who do you think were buying a large portion of the gold sold under the Washington Agreement and its various renewals?  We'll give you three guesses.

            And who owns all the secret gold that has been stolen in various wars, conquests, pogroms, genocides and religious inquisitions over the many centuries, that don't show up in the World Gold Council's figures?  And who owns all the scrap gold that was melted down in the last gold craze of the late 1970's and early 1980's for which no records were kept?  And who owns all the old investment gold held by families of old wealth that was secretly moved from the US to Europe after the Great Depression on a tip-off from FDR that he was going to render gold ownership illegal in the US.  They got a nice profit when FDR bumped the gold price from $20 an ounce to $35 dollars an ounce, didn't they?  Who owns all this unaccounted for gold.  Again, we'll give you three guesses.  We can assure you that it is more than the 2% unaccounted for by the World Gold Council.

 

        Then there is the 26,500 tons of gold which the World Gold council allocates to private investment.  Just who do you think most of those private investors are anyway?

 

ENGLAND

Net mortgage lending in Britain hit the lowest level in eight years in April while savings growth remained subdued, the British Bankers Association said Wednesday, suggesting the Bank of England's massive cash injections into the economy have yet to boost credit activity.

 

That was echoed in a statement by a major mortgage lender, which said it saw no decisive upturn in the housing market and that it expects mortgage and savings markets to contract in 2009-2010.

The BBA said net lending was 2.7 billion pounds ($4.3 billion) in April, compared to an average of 3.4 billion pounds in the previous six months. The March figure was 3.4 billion pounds.

 

Gross mortgage lending of 7.9 billion pounds was down from 8.7 billion pounds in March, and 52 percent below a year ago.

 

Both the gross and net figures were the lowest since March 2001, the association said.

Personal deposits were up 1.8 billion pounds, compared to a rise of 700 million pounds in March and the six-month average of 1.1 billion pounds.

 

The value of house purchase mortgages approved edged up from 3.4 billion pounds in March to 3.5 billion pounds in April. That was 30 percent below year-ago levels.

 

Retail sales resumed their fall in May following an unexpected Easter holiday-related bounce in April, with retailers expecting a similarly weak performance in June, a report by the Confederation of British Industry showed Thursday.

 

But the business group's latest Distributive Trades Survey showed that other than April, May's drop in sales was the smallest for almost a year and retailers' sentiment about the general business prospects was also the least negative since November 2007.

 

The survey's headline retail sales balance fell to -17 in May from +3 in April. The balance is the difference between the percentage of retailers reporting higher sales and those reporting lower sales.

The result was weaker than the market consensus estimate of a balance of -10 from a Dow Jones Newswires survey of economists.

 

"Retailers are less pessimistic about their general business situation, and the decline in demand now appears to be slowing compared with the turn of the year," said Ian McCafferty the CBI's chief economic adviser. "However, with unemployment still rising, conditions will remain tough."

 

Retail sales resumed their fall in May following an unexpected Easter holiday-related bounce in April, with retailers expecting a similarly weak performance in June, a report by the Confederation of British Industry showed Thursday.

 

But the business group's latest Distributive Trades Survey showed that other than April, May's drop in sales was the smallest for almost a year and retailers' sentiment about the general business prospects was also the least negative since November 2007.

 

The survey's headline retail sales balance fell to -17 in May from +3 in April. The balance is the difference between the percentage of retailers reporting higher sales and those reporting lower sales.

The result was weaker than the market consensus estimate of a balance of -10 from a Dow Jones Newswires survey of economists.

 

"Retailers are less pessimistic about their general business situation, and the decline in demand now appears to be slowing compared with the turn of the year," said Ian McCafferty the CBI's chief economic adviser. "However, with unemployment still rising, conditions will remain tough."

                   THE INTERNATIONAL FORECASTER

SATURDAY, MAY 30, 2009

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-- Posted Sunday, 31 May 2009 | Digg This Article | Source: GoldSeek.com

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