1. As we approach elections everything possible is being done to keep equities from total implosion.
2. As we approach elections everything possible is being done to keep the hollow US dollar firm
3. As we approach elections everything possible is being done to keep gold under control to assist in keeping the dollar firm.
4. Gold is NOT a commodity. It is a currency.
5. There is an appearance of involuntary liquidation in gold as hedge and gold funds are pressed by redemptions and needs for capital to pay off investors.
6. Gold never changes. Things change in price comparison to gold, so therefore you can jump up and down on the barometer but that will not change the circumstances it is reading.
7. The means of keeping all things in check is to demoralize those whose positions oppose the goal while showing some sunshine to those who wish to keep their positions.
8. Nobody on earth can prevent the CONSEQUENCES of Chairman Bernanke and Secretary of the Treasury Paulson’s attempt to offset the unavoidable CONSEQUENCES of the same actions taken by the central bank and treasury of the 1930s.
9. The different monetary action now in the degree applied will have their own and different CONSEQUENCES in the degree of economic impact.
10. The dichotomy between the bullion supply/demand picture and the easy to manipulate paper gold market continues. Pedro says: “A “friend” of mine was in Zurich yesterday. Aside from the fact that there were no gold coins available in one of the major centers of the world gold trade, it was also noted that there are no longer any large safe deposit boxes available at Credit Suisse Banhofstrasse.”
11. Here is where we are headed to some degree, regardless of the manipulation of markets to paint charts at an unprecedented level.
A Tale from Weimar Germany
by Roland Watson
Most readers will be familiar with the great hyperinflation of Weimar Germany. Indeed, it is often held up as the icon of what can go drastically wrong when government throws off all restraint in regards to the production of fiat money. I do not need to labour the point much as to how billions and then trillions of marks were literally not worth the paper they were printed on and how workers had to be paid by the hour lest their wages rapidly lost purchasing power in the brief time between being paid and spending that same money.
As ever, gold and silver proved to be safe havens from the ravages of inflation. Indeed, anything other than the mark seemed to a good place to park one’s wealth. In those days, that could be anything from bedpans to US dollars to precious metals. However, depending on one’s accumulated wealth, gold and silver were amongst the top assets in terms of holding and transporting wealth. Despite this, one set of figures and one notable week in the life of Weimar Germany demonstrated that one particular form of wealth proved to be in particularly heavy demand
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12. Don’t let the unprecedented bullying of all markets to meet political expediency draw your attention off the ball.
There are defined CONSEQUENCES to the new approach taken by the top expert of the 1929 to 1940 depression. The error is that these actions will have CONSEQUENCES different from 1930 and they will be more devastating than one can ever imagine.
Monetary inflation, “the unlimited creation of fiat money,” will cause massive price inflation regards of the level of business activity