JC Collins & Reader Comments From "The Fall of Man’s Logic"
Steve Henningsen (@Stevephenni): August 27, 2014 at 2:49 am Hi JC As usual, I have to read your writings over a few times before sinking in. I’m having trouble with two things.
First regarding gold heading east. As you have indicated throughout your essays, he who holds the gold holds the power, as history shows. If the US has the gold, why give it up? Why would they weaken their position and allow it to flow back east? Does China hold some unforeseen leverage?
Oil sands…everything I have read shows this to be one of the highest cost methods to extract oil, while shale is much lower, but not as low as conventional. Why would the industry shift back to oil sands from shale; especially after being advertised by Wall Street and politicians as the “new energy revolution?” Thanks as always.
JC Collins: August 27, 2014 at 3:59 am Steve, the movement of gold is likely more symbolic as opposed to independently functional or separate from the larger whole.
JC Collins Continues: Now that China has been fully subjected under the machinations of the international bankers it is probable that the gold return will continue to function as a wealth base for those same bankers.
As described in my story of Carney and the marbles, we all battle and squabble for more marbles but never question who is providing them.
If you look further into shale oil you will find that the well depletion rates are extremely high, up to 70% in the first year in some cases. The sustainability of shale oil is deteriorating quickly and will go bust in a year or two.
Just in time for the additional infrastructure work in the oil sands to be completed for the next stage of development. No interest left the oil sands, Wall Street only bought some time for the dollar. Things will shift fast when the time comes.
Susan Morris: August 27, 2014 at 4:02 am Thank you, jc. I’m still trying to understand the pre ww2 era in Asia, as described by the sea groves in their book, but it seems pretty obvious that when us found out about all that gold they decided to keep it secret and use it for the agenda, although it seems some of those early conspirators were not just bankers.
The shameful opium episode in China showed years ago the depths of depravity to which we will go to obtain objectives, and don’t doubt that you’re correct in your assessment – it makes the most sense out of everything I read.
But it is a great pity to think that we cannot seem to extricate ourselves from this self-induced bind. Around me I see good people – but people who will not listen to the voices within, for fear of upsetting the existing order – the order that will eventually enslave them. I assume mme hudes knows the dollar will not fail! Merci, encore
irrelevant111: August 27, 2014 at 4:36 am Mr. Collins, Spot on with your analysis. I am a student of history, as well. Our hope is there will be some semblance of balance as the world changes its impression of money and perceived value. Certainly the fiat solution and its hold is dying on the vine.
One must give credit to Mr. Putin, China n BRICS for changing the tide. Time will tell, but appears sooner than later. The world has grown weary of the Petro dollar n its control. The US may soon find itself alone… Food for thought… JR—axx
Bullion Baron (@BullionBaron): August 27, 2014 at 8:06 am “…if gold did happen to go to $10,000.00 an ounce it would only happen in a hyper-inflation scenario and its purchasing power would remain the same”
Gold increased from $100 to $850 from the bottom of the mid 1970s correction to January 1980. A similar burst over the next few years would see the Gold price at $10,000 from $1,200. Why would it only occur with hyperinflation today? Why couldn’t monetary system fears as the transition occurs and geopolitical evens create an environment with a similar outcome?
JC Collins: August 27, 2014 at 10:51 am The nominal value of gold has changed little over the years. Gold increased in the timeframe you mention simply because the value of the dollar was going down at the same time. Golds purchasing power stayed the same.there will be no separation of these patterns for the simple reason that you cannot pay for your groceries with a gold coin.
If fiat currencies actually collapsed and the world found itself without any economic or social structure then perhaps gold would break from its nominal value. But I see that series of events as extremely unlikely.
Bullion Baron (@BullionBaron): August 27, 2014 at 9:31 pm I accept that the US Dollar index was falling at the time, reducing the dollars global purchasing power and inflation was high, so the dollar was losing purchasing power locally, but there is no way that you can say that Gold’s purchasing power remained the same over this period 1976-1980 or even 1971 to 1980.
Likewise it didn’t have the same purchasing power from the peak to trough in the bear market that followed. Asset bubbles can and do happen, driven by greed & fear. I don’t buy the premise that we can’t see another one as we start to see changes to the monetary system, another crisis or geopolitical events.
JC Collins: August 27, 2014 at 10:27 pm I somewhat agree because the nominal value over time does show slight variations but only as it matches the larger pattern and trend. Check out the nominal chart at the following link:
I just don’t see the huge swing that some are predicting for PM’s.
n3angus: August 27, 2014 at 3:26 pm Great piece JC , thanks for stimulating the thought process always !!!! I got to thinking after reading this paragraph the word ” Consolidation ” is key again here , and with its action comes wars ; ” From this gold consolidation came the global financial system which the world has operated on for the last 70 years.
The only change over that time is in the early 1970’s when oil became a more visible component of the system than gold, but both functioned equally and separately underneath as the lifeblood of the system” , JC the KEY WORD IS “””LIFEBLOOD””” what you described happening then relates to this going on today , http://www.newsweek.com/race-buy-worlds-water-73893
The bankers are getting ready to fund both sides of this war ;
This is a huge problem for the future too !!!!
matt (@speedspirit42): August 27, 2014 at 6:27 pm “In order for such a system to work the old sovereign debts need to be cleared from the books and the true economic potential and metrics of each region need to be evaluated and adjusted before the multilateral is implemented ” JC
So if China needs to clear their debts which you said is about 1 trillion in Gold what about the $17.69 Trillion of the United States. You do a great job of explaining but I sure would like to see a chart on the math of these debts.
JC Collins: August 27, 2014 at 6:34 pm What was discussed in the post was only one segment of the sovereign debts of both countries. I do enough charts and graphs at work Matt, the blog is my release from the intensity of my job. Well, back to the growing spreadsheet…
Toknowyourenemy: August 27, 2014 at 7:17 pm As a first time poster, I don’t want to over-step my welcome – but after reading many of the pieces it seems you believe this one-world-currency is a good and positive change for most north Americans.
The transition surely will be a period of violence and upheaval – I was really hoping you could and would shine some light on that issue specifically. ‘
The more detail the better…..to me, the spoiled and entitled petulant societies of north America are so fragile and tied together with debt and unfunded promises and general abuse of the petrodollar that I can’t see how real social unrest isn’t baked into the cake.
And please, if you would, offer your views on DHS bullet buying/arming, and the general militarization of the nation’s police force. Does it mean what it appears? Thank you for your time and consideration as well as the thought provoking articles/posts, etc.