It’s the Dollar, Stupid

Kurt Nimmo
Infowars.com
September 27, 2010

For the sixth day in a row, the price of gold has skyrocketed. On Monday, the precious metal climbed to a 30-year high as fiat paper money values tumbled. Gold for immediate delivery rose as much as 0.3 percent to an all-time high $1,300.15 an ounce.

Instead of rushing into government created paper assets, investors are buying gold and silver.

Instead of rushing into government created paper assets, investors are buying gold and silver.

“There is a net devaluing of currencies,” James Moore, an analyst at TheBullionDesk.com in London. told Bloomberg this morning. Gold gained as Ireland prepares to bail out Anglo Irish Bank Corp. and speculation over European banks lacking adequate capital.

The dollar fell after Ben Bernanke announced the Federal Reserve is prepared to launch a new round of quantitative easing by buying millions of dollars of bonds.

The Federal Open Market Committee’s September 21 statement said it “will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery.” Quantitative easing is a term used when the Fed increases the size of the money supply and floods financial institutions with capital in order to promote increased lending and liquidity.

It should be noted that the Fed used quantitative easing during the first Great Depression. The Fed began to purchase securities in the open market in April of 1933 and eventually shifted to the Treasury and the White House through gold purchases. On August 28, 1933, Roosevelt moved to confiscate all gold held by citizens.

JPMorgan Chase & Co. said there is a 75 percent chance that the Fed will start another round of “asset purchases” before the end of this year to boost the economy, supporting Treasury bond prices, according to Bloomberg.

However, as Bob Chapman of the International Forecaster noted earlier this month, the Fed effort is doomed to fail in a spectacular way. “What the Fed has been approaching since June is a ‘liquidity trap.’ That is when loans are offered to business and they refuse to borrow. They stop using credit because they question the future of the economy, their government and the specter of new taxes in the future. Money and credit is available, but few want to assume the risks to borrow,” writes Chapman.

Instead of rushing into government created paper assets, investors are buying gold and silver. “This market is the exact opposite of the gold and silver markets, which are in an 11-year bull market. The metals separated from the dollar 15 months ago and they have already won the battle of the world’s only real currency. Gold has gained 15% a year for those last 7 years. This is a secular bull market and cannot be denied. Further, gold has appreciated annually against every currency,” writes Chapman.

Central banks around the world have moved into gold, a trend that began in the 1980s. India, China, Russia, and other nations have increased their gold reserves as fiat currencies hit the skids and the Greatest Depression picks up steam.

The continued gold rush and the remarkable rise in prices of both gold and silver represent a bellwether for the demise of the dollar. The decline of the dollar means millions of Americans will suffer a huge loss of purchasing power and a sharp decline in living standards. In fact, this process is now already well underway as unemployment rises and the middle class shrinks in size.

It is not the vagaries of the stock market or inept government economic policy that has ushered in the Greatest Depression.

The Federal Reserve is not run by clueless government bureaucrats. It is a subsidiary of the bankster cartel and federal only in name.

Fresh food that lasts from eFoods Direct (Ad)

The Greatest Depression now underway is an engineered event. The destruction of the dollar, the increase in the fiat money supply that will create merciless inflation, and the slow withering away of the middle class — all of this is part of the plan to remake the world as the globalists see it.

If the Greatest Depression is allowed to continue unabated — and it looks like it will — billions of people will be reduced to serfdom under a global government scheme cooked up by the elite.

–

Kurt Nimmo edits Infowars.com. He is the author of Another Day in the Empire: Life In Neoconservative America.

Fresh food that lasts from eFoods Direct (Ad) 

Live Superfoods It is time to Wake Up! You too, can join the "Global Political Awakening"! 

Print this page

Forget $1,300, Gold Is Heading To $11,000 On Dollar Collapse

Photo: Ironchefbalara

Precious metal hits new record high as greenback plummets in reaction to expectation of Fed’s quantitative easing policy

Paul Joseph Watson

Prison Planet.com
Wednesday, September 22, 2010

In light of gold hitting a new all time record high today, Omnis senior managing director James Rickards’ forecast that the precious metal will soar to anything up to $11,00 in the aftermath of a dollar collapse makes the current $1,300 level look tame in comparison.

Gold bullion’s climb to just below the $1300 an ounce psychological barrier has precious metal investors giddy, but the story behind gold’s continued rise is more about dollar weakness than anything else.

Gold spot hit a fresh all time high of $1,294.95 in London today with $1,302 the next major target, while silver leapt above the $21 an ounce level for the first time in 30 months

However, paralleling gold’s rise has been the crumbling dollar, which has hit a 6 month low when measured against a basket of other currencies. The greenback was at $1.19 against the euro just a few months ago but has since sunk to around the $1.33/$1.34 level.

The Yen recently hit a 15 year high against the dollar, a rise that was only subdued by deliberate Bank of Japan currency manipulation, and the Chinese Yuan also recently hit a new record high against the greenback.

Dollar weakness has been fueled by Federal Reserve chief Ben Bernanke’s indication that the Fed is about to launch a fresh round of quantitative easing by buying millions of dollars of bonds.

Gold has also been boosted by central banks becoming net buyers of the precious metal after years of selling. Leading gold mining companies have also been bullish in their future outlook and have announced that they plan to wind up forwards sales, a clear indication that high prices are here to stay.

As we have reminded our readers all along, buying gold is not so much a way of making money (although people who bought when gold was at just $300 an ounce may beg to differ), but is a means of preserving wealth as the dollar is rapidly devalued by ceaseless money printing and the rising cost of living.

As Jim Rickards explained during a recent CNBC interview, forecasts for gold to hit $5,000 an ounce are entirely realistic, given the fact that if the gold standard is reintroduced, it will have to be set at an accurate inflationary level against the dollar.

“It’s not really a forecast, it’s simple math and it’s where we’ll end up once the dollar collapses,” said Rickards, adding that gold’s range could be as high as $11,000 dollars an ounce, much to the astonishment of the CNBC anchors.

Rickards emphasized that gold is not going up, the dollar is collapsing, and that we’ll see relevant price comparisons in all areas of the economy. For example, a nice suit will still cost roughly one ounce of gold to purchase as it always has, the difference being that it will cost many many times the current amount to buy that same suit in dollars.

Watch the clip below.

*********************

Paul Joseph Watson is the editor and writer for Prison Planet.com. He is the author of Order Out Of Chaos. Watson is also a fill-in host for The Alex Jones Show. Watson has been interviewed by many publications and radio shows, including Vanity Fair and Coast to Coast AM, America’s most listened to late night talk show.

*********************

Discover how the banksters hijacked the economy with the creation of the Federal Reserve. For a limited time, Midas Resources is offering a Free Silver Dollar when you purchase “The Creature from Jekyll Island” by G. Edward Griffin. Order your copy today or call Midas at 1-800-686-2237and tell them you want to order “The Creature from Jekyll Island” with the free silver dollar.

Prison Planet.tv Members Can Watch Don't Tread On Me Right Now Online - Don't Miss Out! Get Your Subscription Today!

 

Fresh food that lasts from eFoods Direct (Ad)

Live Superfoods It is time to Wake Up! You too, can join the "Global Political Awakening"!

Print this page

Congressmen Weiner and Waxman Set Gold Hearing

by Ira Stoll
Seeking Alpha

Just as the government is trying to prevent people from investing in anything other than T-Bills by raising taxes on taxable interest and dividends to confiscatory levels, it's also trying to prevent you from parking your wealth in assets, like gold, that compete with the paper dollars issued by the Federal Reserve and the Treasury. A press release from Rep. Anthony Weiner, Democrat of New York, not yet (as of this instant) posted on Mr. Weiner's Web site, announces that a September 23 hearing of the Subcommittee on Commerce, Trade, and Consumer Protection (a subcommittee of Rep. Henry Waxman's Commerce Committee) will focus on "legislation that would regulate gold-selling companies, an industry who's [sic] relentless advertising is now staple of cable television."

From the press release: "Under Rep. Weiner's bill, companies like Goldline would be required to disclose the reasonable resale value of items being sold." That's great. Are Mr. Weiner and Chairman Bernanke also going to agree to print on every dollar the reasonable expectation that its value will be eroded by inflation?

Gold investors (or speculators) are already punished by the federal government by having their investment, even in a gold exchange-traded-fund, taxed at the higher rates that apply to collectibles rather than long term capital gains.

Not to mention the fact that Mr. Weiner's regulatory push seems as much aimed at conservative journalists as at the gold-dealers. The press release says, "Goldline employs several conservative pundits to act as shills for its' [sic] precious metal business, including Glenn Beck, Mike Huckabee, Laura Ingraham, and Fred Thompson. By drumming up public fears during financially uncertain times, conservative pundits are able to drive a false narrative. Glenn Beck for example has dedicated entire segments of his program to explaining why the U.S. money supply is destined for hyperinflation with Barack Obama as president."

Imagine the uproar if a Republican-majority Congress started investigating and having a regulatory crackdown on big advertisers in liberal outlets such as the New York Times. The First Amendment freedom-of-the-press crowd would be marching in the streets.

The whole situation is amazing. If Mr. Weiner really wants to calm fears about hyperinflation, the last way to do it is to have a government hearing cracking down on the people warning of it.

The press release reports that "invitations to the hearing have been sent to the representatives of Goldline International, the Federal Trade Commission, the Consumers Union and other potential witnesses, including former Goldline employees." Mr. Weiner might also consider calling John Paulson and George Soros, who have also reportedly been buying gold lately, though Mr. Soros was also quoted as calling it a bubble. But Mr. Paulson saw the housing bubble coming so he might be right about the inflation risks, and Mr. Soros is a big funder of left-wing causes, so neither of them would fit with the objective of the hearing.

Anyway, we are looking forward to the hearing, which should be quite a show.

Read More

Fresh food that lasts from eFoods Direct (Ad)

Live Superfoods It is time to Wake Up! You too, can join the "Global Political Awakening"!

Print this page

Gold and Silver Explode as Banksters Abandon Market Manipulation

Kurt Nimmo
Infowars.com
September 14, 2020

Gold has surged to a new high as the prospect of inflation reared its ugly head in the United Kingdom on bad news from a report indicating a weaker-than-expected eurozone industrial production. Germany and France, despite sovereign debt fears, have been able to manage anemic growth but today’s data signals a slow down.

	Gold traded as high as $1,261.90 on Tuesday. Photo: Bullion Vault.

On Tuesday the gold price traded as high as $1,261.90 and as low as $1,246. “The U.S. dollar index was adding 0.03% to $81.90 while the euro was losing 0.19% to $1.28 vs. the dollar. The spot gold price was rising $14.30, according to Kitco’s gold index,” writes Alix Steel for The Street.

Silver also experienced a boost today. The precious metal was up 14 cents to $20.31. Earlier this month, spot silver trading reached its highest point since March 2008.

“While silver has many of the same investment attributes as gold, it enjoys the added advantage of industrial demand. And as a currency alternative, silver is more practical. It’s been used as a currency, most notably by the United Kingdom (pound sterling). The French word for money is argent, or silver. In fact, the United States and Great Britain were both on a silver standard up until the 1800’s,” explains Gabriel Wisdom, writing for Forbes on September 8.

Market observers believe silver prices will soon rise on speculation that JP Morgan is in the process of winding down its proprietary trading operations. “In the past years, compelling evidence of silver and gold price manipulation by JP Morgan has been found,” writes Elisheva Wiriaatmadja.

“JP Morgan was not just an accommodative good corporate citizen in the illegal transfer of the manipulative silver (and gold) COMEX short position. In addition to undisclosed government guarantees against loss, JP Morgan was given free reign to liquidate the COMEX short position at their discretion, knowing full-well the regulators would look the other way, no matter what dirty tricks were necessary to cause the price to collapse,” MarketWatch noted over two years ago.

Fresh food that lasts from eFoods Direct (Ad)

Now that the banksters have decided to abandon their artificially low price scheme, the price of silver will rise, making it an excellent investment.

—

Midas Resources Silver Special:

The Walking Liberty Half designed by Adolph A. Weinman is said to be one of the most beautiful silver coins ever struck. Minted from 1916 through 1947 rare specimens can command premiums exceeding 6 figures. The Walker is also the original design for the 1oz silver eagle. Having finite mintage, it is expected that demand for this coin will continue to consume supply as more people enter the silver market.

Call Midas Resources to get this special limited offer today at 1-888-294-6187 and tell them you want the Alex Jones Special on the Walking Liberty Half Dollar.

Terms and conditions apply. Other coins are available for purchase below.

For more information and frequently asked questions please click here.

Live Superfoods It is time to Wake Up! You too, can join the "Global Political Awakening"! Print this page

Rogers gets appetite for Chinese gold investments

World-renowned investor Jim Rogers is in talks with Hengtai Datong Gold Investment Ltd on cooperation opportunities to cash in on surging demand for the precious metal in China, the company claimed on Wednesday.

Wang Zhibin, the Beijing-based company's CEO, said that Rogers may either buy a stake in the privately held firm or jointly develop gold mine projects with it.

"Our innovative investment model in bullion has attracted Rogers," said Wang, adding that the US investor, who visited the company's headquarters in July, may use the company as a platform to enter China's nascent bullion investment market.

The company's transaction volume for the yellow metal jumped 50 percent in the first seven months of this year compared with the same period in 2009, on Chinese investors' feverish enthusiasm for gold as the realty and capital markets lost steam.

"I bought gold in China many times, and I'm sure I will continue to buy gold in China, I do think there's fabulous future for gold in China," Rogers said in a telephone interview with China Daily on Wednesday.

But he didn't confirm possible cooperation with Hengtai Datong, saying that he only had dinner with the company's top management team a few weeks ago in Beijing.

"If I find a suitable way to invest (in China's gold market), I'm sure I will," said Rogers, the co-founder of the Quantum Group of Funds with tycoon George Soros in the 1970s.

"Anything is possible, if the opportunities come along," Rogers said.

China is the world's biggest supplier and the second-largest consumer of the precious metal. Gold demand in the nation surged 9 percent to 427.5 tons in 2009. That compared with the global market's 11 percent drop in demand over the same period.

Zhang Bingnan, vice-president of the China Gold Association, said that China is expected to report even higher gold output in 2010.

The People's Bank of China, along with five ministries, released a report earlier this month to encourage the development of the domestic gold market.

If the government seeks to foster the growth of China's gold market, this will create "great opportunities" for investors, Rogers said, adding that the size of the country's population and the limited supply of the precious metal in the world market were also the reasons for him to bet on gold.

He said that China transition from a less-developed to a developed economy would offer "hundreds of opportunities", but he refused to comment on the sectors that he favors the most. 

Source: China Daily