Guest Post by Hugo Salinas Price
The Powers That Be in the US and its allies seem to be committed to keeping the price of gold below $1320US/oz.
Is the US control of the price of gold bad for China? It would appear that since China is purchasing large amounts of gold, keeping the price from rising is in the interest of the Chinese.
Is the US control of the price of gold bad for Russia? It would appear that Russia has no urgent reason to see a higher price of gold.
Is control of the price of gold considered as a damaging policy by the Rest of the World? The Rest of the World does not seem to be particularly upset by the control of the price of gold.
Who is upset that the price of gold is so clearly kept down below $1320US/oz? Answer: the gold miners of the world and those who own gold as financial protection, as well as those who have long positions in the futures markets. All of these actors are limited in number, as contrasted with a world population of some 7.5 billion humans.
So it is evident that in reality there are relatively few parties – individuals and corporations – who care about the price of gold. For the vast majority of people in The West, the price of gold is of no concern whatsoever. Wealthy Chinese are buying gold, but they know better than to say anything about it, let alone complain about the low price.
Gold has been banished from everyday use, and can only be hoarded unproductively. Gold is going into hiding, as Professor Antal E. Fekete has pointed out. (See www.professorfekete.com)
This is not the first time gold has gone into hiding; gold went into hiding in the days of the collapse of the Roman Empire of the West. It is going into hiding again, in the present slow-motion financial collapse of the world.
The price of gold will enter a rising trend, no matter how violent the official interventions to control its price, because at the present low prices it will be impossible for the gold market to satisfy demand for gold from a largely silent minority of mankind that wants to own gold. When this happens, we can expect the criminalization of gold ownership, at least in some quarters of the world.
At some point, impossible to predict, the demand for physical gold will only be satisfied at increasingly higher prices.
Gold today has really only one enemy: the Federal Reserve of the US.
At about $1307US/oz, one US Dollar is worth 0.0238 grams of gold. That is to say, a little more than two-hundredths of a gram: 2.38/100 of a gram. At 0.02 gram per Dollar, the price of gold would be $1,555US/oz. (31.103 gr per ounce/0.02 = $1,555.15US/oz)
The Federal Reserve – and the US Establishment – are naturally worried that as the dollar becomes worth less gold, there may be a loss of confidence in the dollar in the world’s financial markets. That is a horrifying prospect for the Federal Reserve and the US Government, as the American Empire rests on two pillars, each of which supports the other: the Military and the Dollar.
If the Dollar loses prestige in the world and declines in value against other currencies, the Military loses force. If the Military loses force, the Dollar loses acceptance. If they go, the American Empire is over.
Russia and China are ambivalent about the Dollar. The health of their economies – such as they are – depends on a Dollar which maintains its value. So they are not going to challenge the Dollar by fiddling with the price of gold.
On the other hand, the American Empire is not behaving towards them in a friendly manner. For that reason, they will not be collaborating actively to suppress the price of gold.
Russia will not demand gold for its oil and gas; Russia does not wish to upset the apple-cart. China will not push for a higher price of gold, because it owns over $4 trillion in Bonds denominated in both Dollars and Euros (with minor amounts in other currencies.) China wants to use those Bonds to buy up resources all over the world, and has no interest in destroying their value.
So Russia and China are just going to sit back and watch the gold markets do their work, which will be inexorable.
Will Russia and China collaborate to establish a new Gold Standard for the world? Highly unlikely. The structure of their economies is built upon banking systems which carry out fractional banking and which are loaded to the gills with maturity imbalances: short massive amounts of deposits and long massive amounts of long-term loans. They will not change this system until it suffers a total collapse, and then they will strive to resurrect the same flawed system, because that is all they know how to do.
Russia and China are attempting to set up a rival to the IMF. To the IMF mess will be added the BRICS mess, with all the same wasteful “development loans”. I repeat: that is all they know how to do.
Gold and silver will never lose the powerful attraction which they hold for humans.
However, the use of gold and silver in a productive, free society based on property rights, and in its financial system, is a body of theory which is unknown to today’s rulers. The necessary knowledge was put aside to deal with the exigencies of WW I, which started just 100 years ago, and was never put to work again when that war was over.
At this point, it is as impossible to recover that knowledge and the spirit what went with it, as it is impossible to recover the spirit which created the Parthenon and the other marvels of antiquity.
“You are lost and gone forever,
Oh my darling, Clementine!”
I bid you welcome to The New Dark Age.
I’m posting this here to make sure it is seen.
Da Joos bomb YET ANOTHER shelter full of children. I’ll bet there were tunnels there. Just like there were under Gaza’s ONLY power station … also bombed … which means, among other bad things, no water sanitation.
Thankfully, Da Joos — God’s Chosen — have every right to bomb da fuck outta the ragheads … genocide only exists when he happens to da Joos … and the fuckin ragheads started it anyway.
Stupid kids should have ducked
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http://www.dailymail.co.uk/news/article-2714575/Humanitarian-crisis-Gaza-half-million-homeless.html
It’s sad but I don’t think a two state solution would solve the problem.I think it’s an unsolvable problem. One thing for sure it’s a bad neighborhood with both sides having the will to kill each .
The fighting shattered a cease-fire, brokered by the U.S. and United Nations, that was barely 90 minutes old. Speaking at the White House, Mr. Obama expressed pessimism that an agreement to end the violence could be reached soon, and called on Hamas to release the soldier unconditionally and as soon as possible, although neither Israel nor Hamas have confirmed his capture.
“I think it’s going to be very hard to put a cease-fire back together again if Israelis and the international community can’t feel confident that Hamas can follow through on a cease-fire commitment,” he said at a news conference.
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Good Dog………Good Dog……..Goooooooooood Dog
I dropped out at 31.03 grams per ounce. I was taught the conversion was 28.3 grams per ounce, but maybe I am wrong. The “world collaboration” to defeat the dollar will not be the driving factor in the collapse of the dollar. It will be the profligate spending by our ignorant elected officials and the complicit Federal Reserve. Many of these counties will not be happy in the ensuing chaos. The collapse will happen with or without them, they may hasten it by a few days or months, but the ultimate demise has already been set in motion. Most likely part of a much larger plan the even you and I are not privy to.
Gold most likely will hold some value to the .01%, to the average citizen food, and self preservation will be of the utmost importance. Gold will not buy these. If their is truly a “slow collapse” and gold becomes the currency of trade without certain protections thugs will just steal your gold, if the government does not do it first. Hence just different thugs stealing your gold.
It is a time of hard decisions, especially will those who have a family with children to protect. They are often the most vested in the normalcy bias for the sake of their family. I was over mom and dad’s yesterday dropping off a lamp that I rewired for them. While there my son and I did a few repairs and adjustments. mom and dad are 80 and 81 respectively. He handles computer and cable/tv issues I fixed the grill and a window. My mom commented on how me and my three brothers always fix things as oppose to calling someone or throwing things out. I said it is just the way we are, it is what we saw growing up and it is what my kids and nephews have seen growing up. These simple skills along with a host of others such as building and farming will give us a chance to survive since we are not part of the .01%. A large stash of gold will not plant our garden or repair our leaky roof. While some currency may be needed foe things I cannot make or grow, I do not see hoarding significant amounts of hard currency helping the average person more than hoarding knowledge that could directly help him or herself.
Bob.
Bob, precious metals are measured in troy ounces. From wikipedia:
“The troy ounce (oz t) is a unit of imperial measure. In the present day it is most commonly used to gauge the mass of precious metals. One troy ounce is currently defined as exactly 0.0311034768 kg or 31.1034768 g. One troy ounce is equivalent to approximately 1.09714 avoirdupois ounces.”
W/regard to repair vs replace/discard, I’m like you. I get satisfaction of keeping things working instead of letting them end up in a landfill somewhere. I’ve kept my lawnmower going 10 years despite the self-propel unit stopping and the body rusting out and a wheel nearly falling off. While jogging last week, someone was discarding the same model Craftsman but a much newer one. I asked if I could take and and what was wrong–they could not start it. I had it running in 5 minutes after getting it home–the auto-shutoff cable was not fully engaging in the start position and it needed a small tweak where it connects to the motor. It’s in perfect condition.
bb,
BOTH sises?
Sorry, but there’s only one side.
Israel has the world’s largest, one of the best equipped armies in the world. All GIFTED to them by the US taxpayer, to the tune of 3 BILLION per year for over 60 years.
Israel was established by the Zionists as a beachhead into the ME, where most of the oil was, at the time. The oil is/was the carrot held out to the West as the handy excuse to constantly interfere with the affairs of those who have lived there for 4 thousand years. However, the real agenda goes far beyond oil.
The drivers of that agenda are the same people driving the agenda to destroy the middle class in America and confer more and more power to the ruling elite. A New World Order as Bush the first declared here.
Note his reference to the sky, seas and sands,,,, sands of the Middle East. We know why we’re there he says,,, sure,,, HE knows but most of the peons sure as hell don’t.
But some of us DO. Pass it on, look up The Protocols of Zion. Click on the sidebars, wake up beyond the politics and economics of the US of A. Beyond the artificial paradigm of left versus right. They have divided our house, a house divided can’t stand unless you really DO wake up.
Most of us have declared that we woke up in one fashion or the other. You’ve only got one eyelid barely open. Open the other for the TRUE and FULL story behind the death and destruction.
Watch this,
https://www.youtube.com/watch?v=etXAm-OylQQ&feature=player_detailpage
https://www.youtube.com/watch?v=ITTmMWlMu7U&feature=player_detailpage
https://www.youtube.com/watch?feature=player_detailpage&v=kWfwK3Xc_Y4
But change is afoot.
If the BRICS succeed, it’ll be one more nail in the coffin of the ruling elite’s control over the affairs of the world. Obama, not too long ago, has thrown the Saudis under the bus, they, the lynch pin of the Petro-dollar Ponzi scheme that has allowed the US to spend its way to world, military dominance. The Saudis are now looking to the emerging far East to align itself with.
Ever wonder why it’s called the STATE of Israel? Yep, you got it, it is, De Facto, the 51st state, make no mistake about it, And the way the Zionists have control over EVERY administration, Lib AND Con, Tel Aviv might as well be our capital.
BUT, if the Petro-dollar dies so goes the US military and so goes the viability of Israel as a self sustaining country. With the US no longer a major ,military power, Israel will have to fend for itself and Israel has been a nasty neighbor for its entire existence.
Ahmanadinejad never said he’d like to “wipe Israel off the map”. what he DID say that one day, no map will show the word Israel because the entire political structure of the region will be radically altered. All the people, industry, institutions will still be there but the ARTIFICIAL borders created by the West, after the fall of the Ottoman Empire, will change, reflecting the wishes of the people on the ground.
Rise Up.
Thank you for the explanation. I will never understand why they need so many different measuring systems other than to confuse and obfuscate the average person so please pardon my ignorance. While I am certainly not anti gold/silver, I do not think it will be the cure for most of the population when the collapse reaches maximum acceleration. I’m sure the FEMA camps will cure all that.
Bob.
Sensetti: obama’s head belongs on yorkie, not a Pitbull.