Rick Shade June 10, 2014 at 8:16 pm Energy, and it’s availability, has to be looked at too. For the last 80 years or so, cheap oil around the world fueled the world for the massive growth of cities, skyscrapers, cars, etc.
There are people who contend that we are at Peak Oil…and that much of the fighting is also about the remaining supplies. Others say it is plentiful and is actually created by the earth in processes that aren’t explained to people in the west.
I have no idea….but I really doubt that the architects of the new world hegemony will be able to transition everything into a wonderful place. I do concur that it is taking place, and I think what we see is by design.
Rick Shade Continues: My take is that there are traps, unseen obstacles, that no man can see, and the world will continue to blunder and fall forward ..eventually to his demise.
The elite are not as special as all that. There will always be the horrible inbalances, extreme poverty, and depravation, because the rich will stay rich, and the poor will be victimized. THAT will NOT change…because the heart of most of the players…is selfish
Daneackerman June 11, 2014 at 3:48 pm Nice translation. The mix he used was clever.
Tyberious June 11, 2014 at 12:36 am J.C., Another thought provoking essay. Thanks.
Could you please provide your comments on Russia and Ukraine? And why we (US and NATO) have surrounded them (Russia) and why we are expanding our military presence in the Western Pacific near China, if they are indeed the bankster’s chosen ones?
I just feel things are your essay are incomplete or one sided. If debt is an issue the US could as Bernanke said revalue gold and wipe out any debt, provided we have the gold we say we have.
Secondly, you proclaim the what we are witnessing is a pre-scripted play, with nations states as the actors in a screenplay written by banksters, that’s a hard pill to swallow.
Indeed banksters own many actors and go through great lengths to promote and execute their nefarious plans but why Egypt, Iran, Afghanistan, Syria, Libya and Ukraine? Where these action sanction to fool the people into an SDR?
My contention is the US, is attempting to hold on to power. China, will not provide the IMF with any loans or commit with any collateral for funding, so Legarde was simply making a plea to China. The BRICKS bank now has 80 aligned countries.
That’s my take on things. And oh yeah, if the SDR is a basket of currencies and therefore is also Fiat, whom or what will prevent it from also being printed to oblivion? Got Gold!? It’s what really money is!
JC Collins June 11, 2014 at 1:07 am Tyberious, thanks for the comment. First let’s start with fiat.
It’s likely that whatever form the SDR takes initially it will without a doubt slip back into full fiat once again. I’ve covered that here a few times as it appears my bland disconnected way of describing things is easily mistaken for support and promotion of the multilateral system. It will corrupt as all things do in the world of matter.
Secondly, gold can never be used to wipe out the public and private debt for the simple reason that there would be nothing left to value the gold. The BIS, which includes the central banks of the BRICS countries have no intention of moving away from a debt based system.
‘All money is debt created and the money supplies will have to be reduced through an SDRM mechanism and other debt reduction methods. See the post A Global Currency Reset for a good overview of this debt reduction methodology. Gold can only maintain wealth and not create it.
That is the crux of the gold skyrocketing scenario. Something other than gold will have to replace the debt and SDR bonds will likely be the main character.
It may have been simpler in times past, like say before the industrial revolution, to play with the value of gold and wipe out debt. But today the world economy is too integrated with massive production and trade for gold to be the sole answer.
The unrest and other geopolitical tensions in the world are indeed a part of the engineered dialectic but their origins are found in historical and legitimate events.
Even though the end result for the multilateral system is predetermined, there are some fluctuations allowed for the competitive nature of the international business and banking worlds.
Think of it as flex in the system. There are many roads to Rome but once there it is still Rome. Which means you’re correct about the US attempting to retain control of specific regions and resources.
Hopefully this answers your questions. Thanks for the support.
matt (@speedspirit42) June 11, 2014 at 2:13 am Deflation= lower Gold prices you say but Silver is almost extinct and will be by 2020 says USGS. The mines can not continue to operate with the PM’s at these prices. That’s means less supply.
Demand is increasing with more exposure of financial stresses placed within the system of fiat. Where there is a lot of demand the prices rise. So JC I do not see how prices can go lower for PM’s? Can you explain where I am wrong?
JC Collins June 11, 2014 at 1:10 pm Matt, you are not accounting for the restructuring of the financial system. The stresses within the current fiat system will be temporarily removed with the SDRM and SDR bond allocations. Gold and silver are maintaining their purchasing power, as they always have.
The purchasing power of both is still the same as it’s been for thousands of years. It’s the increased carrying costs of faulty economic policy and socialism which has skewed the system.
Supply and demand are based on todays indicators and will continue to fluctuate in the coming years. I see supply problems having little effect on the value and purchasing power of both gold and silver.
The price of PM’s today is based on the US dollar. When the system shifts and values are based on something else, say the SDR, that number could appear lower, based on exchange rates.
No matter the appearance, the purchasing power will stay the same as inflation is driven out of the system. It’s all relative.
Gold can neither build or destroy wealth, it only maintains wealth, as its always done. If I invested $10,000 in gold last year, I can expect that it will have the same purchasing power in 50 years, no matter what exchange rate system is used or what currency its priced in.
And that’s what’s amazing about gold and why the elite want to keep it, they can play with the financial systems all they want because their wealth is maintained in gold. Supply and demand, boom and bust, it matters not to them.
Ustavsuare June 11, 2014 at 6:45 pm Thank you for another perceptive essay JC.
I’ve always had a bit of a problem with the argument that gold “maintains” purchasing power because the purchasing power of those holding gold and silver is relative to everyone else who are not holding it.
Let’s start from the premise that wealth is stored energy.
The Law of Conservation of Energy says that energy is never created or destroyed, but transferred. The sun transfers carbon into plants, we eat the plants, carbon and oxygen metabolize to ATP, etc. Our energy is then transferred into the product of our labor which we exchange with others. So “commerce” is really bartering energy.
So if wealth is energy, then wealth also is never created or destroyed, but transferred.
When the paper is sucked out of the system, whatever wealth that was stored in that paper has to transfer somewhere. It will transfer into the most liquid, real assets, assets from which wealth (energy) cannot escape through defaults (or episodic bouts of massive inflation as this process plays out).
But not everyone owns gold and silver, in fact most people don’t. So the wealth stored in their paper will be transferred to those holding precious metals and other commodities.
Holders of gold and silver will have more energy stored then before the eventual deflation. So a priori the purchasing power of gold may stay the same, but a posteriori the purchasing power of those holding gold—relative to others—will increase.
JC Collins June 11, 2014 at 7:41 pm Great analogy from an abstract angle. The only thing I would add is that all the paper in the system has not come about by production, being the time and labor equals energy formula.
The value of…say…a Twitter like stock is the kind of paper that was born from zero energy. I would reckon that only a small percentage of paper in circulation has come from actual production. It is the production percentage that I can see transferring into PM’s, but only if an SDRM process does not take place. And obviously I think an SDRM process is definitely in play.
cebuslick69 June 11, 2014 at 4:36 am JC, Another thought provoking article. Thanks.
Curious to your thoughts on the growing perception that the Bric nation’s newly formed Brics Gold Bank, will actually supercede the World Bank & IMF, when they double cross the existing “Western” banking cabal. China/Russia now have an estimated 40,000 tonnes
of gold and the growing opinion that the almost 400 billion of US Treasuries held in custody in Belgium are actually collateral for huge leveraged (25-30 times) Comex gold order from Russia, China, Saudi & other sovereigns dumping UST for real, non-dimishing assets as US paper.
Also, now American companies are dumping dollar reserves to hold other currencies to facilitate doing business with de-dollarised economies. I believe China, Russia, Saudis, Germans, Brazil & others will turn their backs on another Western controlled Fiat system not backed by GOLD.
China/Russia hold all the wealth & energy cards and will use them in unison to finally crush the American fiat, debt control of international trade (Petrodollars). Of course that will be after WW3!!!
JC Collins June 11, 2014 at 12:56 pm
The 40,000 tonnes of gold is unsubstantiated and regardless, as stated in the post, the international bankers still own the gold, its just moved around to bring regional balance to the multilateral system as it emerges.
Everything else you stated fits perfectly with the pattern of transition away from a dollar based system to supra-sovereign currency system. I think it unlikely that we will see a WW3 scenario.
What we are watching is the controlled and managed removal of the United States and the dollar from its power position in the world. The only real enemy left for the international bankers is now the people themselves, which we see manifested in the militarizing of police forces around the world.
Through social engineering the people of the world will be rallied around a different type of enemy. Global warming has only been a trial run for a larger organization of the masses.
D Mac June 11, 2014 at 2:14 pm JC, have you talked about the FreeGold topic? FOFOA?
Seems to me that we are moving towards a scenario where people/banks/institutions are waking up to the fact that their “paper gold” isn’t really “there”… Rehypothecated.
What happens when there is a mass scramble to secure the actual physical and we see a 100 claims per 1 ounce? Also on the silver, copper, aluminum…… On and on… Will we not see a tremendous price spike?
Supply and demand free market forces peeking it’s head out from under the controlled financial paradigm? I sense we are on the brink of this and every person/banker/nation for themeseleves and their allegiances to the cabal gets severed. Thoughts?
JC Collins June 11, 2014 at 2:43 pm I see paper gold being consolidated along the same lines as other debt, which is in essence what they’ve made paper gold. It is only perceived chaos.
There has been great organization behind world financial events ever since 1913. The Great Depression wasn’t an accident and neither was the crisis which began in 2008.
This is all very well planned with the end result predetermined well beforehand. It only appears like poor planning to us because we are not functioning and reasoning with a full understanding of what it happening. Mistakes are not made, though they may be allowed to happen on a more regional and micro level.
D Mac June 11, 2014 at 2:52 pm Thank you JC! I’m still trying to wrap my head around this “Gold being consolidated” thing… So let’s say I own 50000 oz of paper gold and I feel uncomfortable about my gold being stored by another party and ask for my physical, and they say no (for whatever reason they use an excuse for the metal not being there..)
and at the same time 10 others are doing the same as myself….
How does this “gold being consolidated” thing appease me as the investor who wants physical because I dont trust the system? Because if I in the end get burnt by these guys I would then take whatever $$’s I had left and convert it into physical anyway I could see fit because I would then actually realize how limited and valuable it is…. Can you please give me some for persepctive?
JC Collins June 11, 2014 at 3:35 pm They would owe you the debt or value of the gold which would be balanced through other means than handing over physical gold. Same process as not being able to honor treasury bonds and servicing the debt.
Someone told me a long time ago that if you can’t hold in your hands than it’s not yours. Paper is a necessity for participation in the larger economy but everything else I put into something physical.
The fact that gold is limited and valuable is what helps it maintain its purchasing power and makes it the best storage for wealth retention.
Our time and energy builds wealth and gold and silver will store it for us for generations. When we keep our time and energy in paper of any sort it will slowly slip away year after year.
Paper is paper whether its backed by gold or the full faith and credit of the United States. Man, I work hard and want to maintain that wealth in something other than debt instruments. Hope this helps you.
D Mac June 11, 2014 at 3:45 pm Thanks again JC, yes this I do understand, I own a precious metals dealership and am the co-author of the book The Silver Bomb. I guess where we are mis-communicating is that if “I want physical” I will not be happy with the “Paper value” given to me because they can’t deliver the real stuff.
So, when this happens, it will make me (along with many others) seek out the actual physical metal which will lead to a hyperbolic spike in the price. The free market supply and demand will come into full view.
Once confidence is lost there will be such a rush into physical it will be like pushing the contents of Hoover Dam through a garden hose. This is where guys like me write about PM’s to the moon. Thoughts? Much appreciation!
JC Collins June 11, 2014 at 4:54 pm I’ve read The Silver Bomb and loved it. I’m somewhat humbled to have you commenting on my blog. Let’s see if I can formulate a response that makes sense – my way of thinking about it is that PMs maintain wealth as opposed to create wealth.
If all the gold in the world is valued at say $100,000 and 1000 people own that gold equally, they each have $100 dollars of gold.
Now recognizing that the purchasing power of the original $100,000 cannot change, (only time and labor can create wealth )if suddenly there are 10,000 people who now own the gold the amount which each owns becomes $10. The only way for the purchasing power to remain the same is through deflation, which I believe we are now in the early stages of.
I know it sounds completely at odds with conventional wisdom but Im expecting that as demand for gold increases the actual intrinsic value will appear to go down. It’s all relative to purchasing power and the highs and lows of inflation.
Mass money printing has lead to inflation which PMs have had to adjust too by increasing in value. With a contraction of the money supply we will see the opposite effect. With deflation will come a decrease in value. But the purchasing power will remain the same as always.
I reckon that supply and demand have little effect on the purchasing power of PMs, though slight fluctuations in value could be capitalized on by the astute investor.
Perhaps we are each approaching the subject from a micro and macro level. The daily metrics of PM swings in regards to inflation would be the micro and the larger broad view of what actual purpose PMs serve in the balancing and maintenance of wealth is the macro.
Thanks for taking the time for these exchanges. Hopefully I explained my position clearly enough.
D Mac June 11, 2014 at 5:45 pm Thank you JC, I truly feel very fortunate to have found your blog. Great insights not only from you but your readers comments.
All this intelligence and respect gathered in one spot is a breath of fresh air. I still believe we are going to see some price spike fireworks on PM’s as this wild ride continues. Any thoughts on Bix Weir’s latest (I know you don’t believe in the Good Guy bad Guy scenario… Not sure I Do either… But it’s fun to consider… I guess….):
As the Bad Guys scramble to find a new way to announce to the world the rigged price of silver so far the best they can do is point to the totally inept “experts” at Kitco!
Kitco Metals Debut Online Silver Fix
While organizations are still in the process of developing their price discovery systems, Kitco Metals Inc. recently launched a global silver fix price network. Kitco.com now publishes four fixing prices: 10 a.m. New York Silver Fix, 10 a.m. UK Silver Fix, the 10 a.m. Mumbai Silver Fix and the 10a.m. Hong Kong Silver Fix.
John Dourekas, senior vice president of Kitco Labs, a division of Kitco Metals, said they developed the four fixing prices because they represent the largest precious-metals trading centers in the world.
“Our new fixing network gives precious metal traders a geo-strategically balanced view of the global silver market,” he said.
Not only has Kitco created an enhanced network but it also meets the criteria that silver market participants are looking for according to the LBMA survey results, Dourekas said.
Let’s think about this for a second. Over the last 100 years three of the largest bullion banks in the world would sit in a room in London and decide on the price of silver based upon their thousands of customer orders. They are accused of rigging the market so they all bailed on the London Fix and are now sitting exposed to HUGE lawsuits based on their past misdeeds.
They abruptly announce the end of the London Silver Fix set for August 14, 2014 leaving the world without a mechanism to price physical silver and leaving hundreds of billions of dollars worth of Silver Derivatives flapping in the wind without a means to settle them… causing even more liability and exposure.
Fast forward to today where a privately owned Canadian on-line website and bullion dealer that tows the line for the banking cabal, promotes the likes of Jeffrey Christian,