THE FUNDAMENTAL TRANSFORMATION OF THE UNITED STATES

Over several decades, money-printing and globalization have fundamentally transformed the United States:

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• Before globalization, the U.S. was a manufacturing dynamo and the greatest creditor-nation of all time.

• Today, the U.S. is dependent on foreign countries for most manufactured products. Now, America is the greatest debtor-nation in the history of the world.

America’s transformation is an economic catastrophe:

• From 1900 to 1971, the U.S. had balanced trade accounts and trade surpluses.

• But in 45 of the last 47 years, the U.S. has racked up mind-numbing trade deficits.

BEFORE “FREE TRADE”
(United Nations-Managed Trade)

In the early days of the Republic, America’s Founders knew manufacturing would be the key to economic independence. (Before the American Revolution, colonists had mainly exported raw materials and imported manufactured goods.) Right from the beginning, leaders promoted trade with all nations and created trade policies that changed the nation.

Founders such as George Washington (Father of the country), James Madison (Father of the Constitution) and Alexander Hamilton (Secretary of the Treasury) introduced an American System of protection to domestic labor and industry. In 1789, the first Congress of the United States passed the “Tariff Act.”

Why did our forefathers establish protective tariffs on foreign merchandise and what were the results? 

As a consequence of the legislation, Americans decided to produce the goods themselves, rather than pay the import tax and depend on foreigners. The strategy created a production-boom for ‘infant’ industries and businesses that competed with England. Throughout the land, competition was fierce to develop new and better products. Inter-state commerce sky-rocketed; and customers ended up paying less.

MANUFACTURING IS A WEALTH MULTIPLIER.

The export economy of the United States grew by leaps and bounds.

For the next 150 years, customs duties produced 50% to 90% of all federal revenues (no income tax until 1913).


From sea to shining sea, a powerful middle class developed because products were MADE IN THE U.S.A. Equipment was invented to save time, save work, and save money.

        

Tremendous wealth was created by manufacturing products using domestic raw materials. In no way did U.S. trade policies lead to isolationism. Before Free Trade (quotas, sanctions, favored nations), the U.S. traded with nations impartially. America supplied the lion’s share of domestic needs and exported high-quality MADE-IN-U.S.A. products to the world.

                                          Image result for vintage rca radio 

 Monarch 18-30 Neverslip (1916)    Image result for kodak camera

PROTECTIVE TARIFFS WORKED.

  • Before globalization, America’s robust manufacturing-base supplied 40-42% of ALL manufactured products traded on the planet.
  • Before Free Trade, the United States became the greatest creditor-nation of all time. 
  • Before the dollar was the “reserve currency,” our Treasury held title to 80+% of the world’s officially-held gold reserves (20,000+ tons after World War II).

Economic nationalism was United States policy. The nation’s leaders believed political independence (national security) depended upon industrial independence. Very high, protective tariffs provided the foundation for economic development; secured the American market for U.S. producers; and upheld a high standard of wages for American workers.

UNITED NATIONS • BRETTON WOODS
(the end of economic nationalism)

In 1944, the “United Nations Monetary and Financial Conference” convened at Bretton Woods, New Hampshire to establish the dollar as the world’s “reserve currency.” National currencies were un-pegged from gold, and pegged to the dollar. Conferees adopted a plan for an international monetary system: 

In the new monetary system, national economies would become integrated and inter-dependent. International trade would be centrally managed within a framework of United Nations Governance by U.N. agencies such the World Court, World Bank, and the International Monetary Fund (IMF).

By the incremental loss of economic independence, nations would gradually lose national sovereignty (nationhood).

At the close of the conference, the U.S. Treasury Secretary (Henry Morgenthau, Jr.) said the establishment of the U.N. banking system marked the “end of economic nationalism.” And he was right.

U.N. TREATY POWER

National economies were integrated in phases, beginning with the U.N.’s General Agreement on Tariffs & Trade (22,000-page GATT Treaty, Jan. 1, 1948). The U.N. treaty legally removed protective tariffs and other barriers to interdependence. 

As the policy of protection was removed from U.S. industry, America’s powerful manufacturing economy was gradually transformed to a consumption economy.***

WHEN THE DOLLAR WAS A DOLLAR.

Until 1971, paper dollars were “as good as gold.” The dollar was 100% convertible to gold in foreign exchange (1792-1971). Before the dollar’s tie to gold was severed, ‘money-printing’ was constrained by the physical supply of gold and silver.* 

  


The dollar had tremendous purchasing-power when all Americans owned coins of silver and gold (for 142 years until 1933). The dollar was redeemable in gold: a 
$1 bill = 1/20th of 1 oz; a $20 bill = 1 Troy oz. (It now takes 65 times more dollars to buy a 1-oz $20 gold coin left.)

THRIFT • SAVINGS • SOUND MONEY

Before the dollar was debauched, entrepreneurs and average Americans pinched penniess and saved for future enterprise:

“The prudent, penniless beginner in the world labors for wages awhile, saves a surplus with which to buy tools or land for himself… and at length hires another new beginner to help him.”**** ~Abraham Lincoln~

Over three centuries, the virtue of thrift was deeply ingrained in the American psyche. Just about everyone quoted the following proverbs:

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 “A penny saved is a penny earned.”

 “Neither a borrower nor a lender be.”

 “Never spend your money before you have it.”

 “Look after the pennies and the dollars will look after themselves.”


1971: UNLEASHING ECONOMIC DESTRUCTION

The frugal habits of Americans began to change after silver coins disappeared from circulation and the dollar was no longer backed by gold [Aug. 15, 1971]. Destructive forces were unleashed, just as Lord Keynes had warned:

“There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”** ~John Maynard Keynes~

As a result of the debauched currency, “the hidden forces of economic law” moved the nation in a new direction. Previous generations had created, saved, and invested their own capital to expand enterprises. After the dollar was debased, they began to rely less on private capital. Businessmen turned to banks, instead of saving for business expansion. Over time, the bank (debt) became the third party in most transactions. 

After the debasement of the dollar, debt began to play a new role in the lives of individuals. The savings rate declined; and Americans began using bank credit cards to fund consumption debt.

America’s consumption economy has produced trade deficits in 45 of the last 47 years. From 1792 to 1971, the U.S. settled trade imbalances with gold. Since 1971, U.S. trade deficits have been paid with borrowed money.

UNITED NATIONS FREE TRADE

In 1994, the U.N. NAFTA Treaty (North American Free Trade Agreement) was “fast-tracked.” NAFTA signaled an exodus by local manufacturers to foreign lands. Why? No employee healthcare or retirement benefits, low taxes, fewer regulations, lower prices, lower quality, no unions (super-cheap labor). Millions of U.S. industrial jobs vanished.

In 1995, the U.N.GATT Treaty (General Agreement on Tariffs & Trade) was replaced by a sweeping U.N. Management System called the World Trade Organization (WTO).

The U.S. manufacturing exodus accelerated in the decade leading up to the 2008 crash. Almost 50,000 manufacturing plants (with 500 or more employees) moved operations off-shoreDomestic high-tech-manufacturing began to disappear.

Image result for map of u.s. manufacturing in china
Image courtesy of The Atlantic.

 A CONSUMPTION ECONOMY IS A DYING ECONOMY.***

Until credit froze worldwide on Aug. 9, 2007 and markets crashed in 2008, people enjoyed the illusion of growth and prosperity as a result of easy credit at low rates. The last ten years of Quantitative Easing (QE), 0% interest rates, and various government programs have helped to disguise the structural increase in unemployment:

More than 95 million Americans are no longer counted in the work-force; and an all-time-high number of young, eligible workers do not have jobs.

AMERICA 2018 – STATE OF THE UNION

Today, most Americans struggle with personal debt; and many cities and states have enormous, unfunded obligations. The nation is involved in two wars (plus covert-operations), and has more than 700 military bases around the globe. The U.S. pays the bills with ‘money-printing;’ the Federal Reserve digitally creates credit (U.S. debt) by the $ trillions

Only 10-11% of the workforce is involved with manufacturing. America now imports most manufactured goods, and exports mainly raw materials (coal, fertilizers, wheat, tobacco, meat, soy beans, etc.). Today, public employees out-number manufacturing employees by 2 to 1. In a few years, 2/3 of the population will be government-dependent in some way.

It is not an accident the U.S. has become economically dependent and indebted beyond belief. Lawmakers ignored the Constitution, debased the dollar, and hitched America’s wagon to U.N. Global Governance.

Free Trade agreements serve to destroy American sovereignty. According to the U.N.’s World Court, U.N. treaty authority trumps the authority of the U.S. Constitution/ Bill of Rights. Trade agreements (which govern much more than trade) have the force to over-rule U.S. law:

World Trade Organization [WTO] (Marrakesh Agreement, Uruguay Round, etc.); North American Free Trade Agreement [NAFTA]; Central America Free Trade Agreement[CAFTA]; Security and Prosperity Partnership of North America [SPP]; Trans-Pacific Partnership [TPP]; Korea Free Trade Agreement; Columbia Free Trade Agreement; Panama Free Trade Agreement; Transatlantic Trade and Investment Partnership [TTIP], [TISA], etc. 

Closed-door negotiations by unelected bureaucrats are fast replacing open government by elected representatives. To regain U.S. independence, leaders must heed U.S. law. The House of Representatives alone has Constitutional authority to regulate commerce with foreign nations (Article II, Section 2; the Treaty Provision requires 2/3 Senate approval).

ESSENTIAL PRINCIPLES OF OUR GOVERNMENT

George Washington was America’s greatest statesman. He was unanimously elected President (two times); and chosen by the Founders to preside over the framing of the Constitution and Bill of Rights. In his famous “Farewell Address,” he warned leaders to “steer clear” of foreign alliances:

“The great rule of conduct for us in regard to foreign nations is in extending our commercial relations… our commercial policy should hold an equal and impartial hand… It is our true policy to steer clear of permanent alliance with any portion of the foreign world….” George Washington, “Farewell Address,” 1796.

Thomas Jefferson was America’s first Secretary of State, Vice President, and third President. When Jefferson outlined “the essential principles of our government,” he emphasized the danger of entangling, international alliances: 

“…peace, commerce, and honest friendship with all nations – entangling alliances with none….” Thomas Jefferson, “Inaugural Address,” March 4, 1801.


ECONOMIC RUIN

Our forefathers enacted tariffs to protect domestic labor and industry. Today, our rich heritage is being squandered away. Un-American FREE TRADE is producing economic ruin:

  • Wages are stagnant.
  • The average person’s standard of living is falling.
  • America’s preeminent position among the nations has slipped.

In Abraham Lincoln’s day, southern plantation-owners were the ‘Free-Traders.’ Lincoln rejected the idea that economic progress requires permanent, low-class workers (the rationale for slavery). He campaigned to boost protective tariffs. 

Image result for u k guardian abe lincoln

“I… try to show, that the abandonment of the protective policy by the American Government… must produce want and ruin among our people.” Abraham Lincoln.****

To “Make America Great Again,” the Republic of the United States of America needs statesmen who understand the “essential principles of our government.” We fervently hope the President will continue to resist globalism.

Submitted by Denise Rhyne

END NOTES

In 1776, the U.S. Continental Congress printed paper dollars (not backed by gold or silver) to fund the American Revolution (for guns, ammunition, soldiers, etc.). In 1776, 1 “Continental” PAPER dollar was equivalent to 1 Spanish SILVER dollar (8 Reales). In 1779, 1 SILVER dollar = 1,000 Continental dollars (price inflation reached 47% per month)!

Image result for 1779 Continental Dollars

* America’s Constitution (1789) was designed to preserve the Republic and the integrity of the dollar: “No State shall… make any thing but gold and silver coin a tender in payment of debts….” [U.S. Constitution, Article I, Section 10.]

*In 1792, “The Coinage Act” under President George Washington defined a legal dollar, fixing the dollar to gold at $20 to 1 Troy oz ($1 = .7734 oz silver; $1 = .04837 oz gold).

** John Maynard Keynes, The Economic Consequences of the Peace(McMillan, 1919); St. Martin’s Press for the Royal Economic Society, pp. 148-149, 235-236, London, 1971.

*** U.S. Consumption Economy/ Personal Consumption Expenditures (PCE): From 1998 through the third quarter of 2007, consumer spending (81.3%) plus government spending equaled 96% of the growth in GDP (Gross Domestic Product); U.S. exports plus business investment accounted for only 3% of GDP growth. In the 25 years leading up to the 2008 debt-crisis, consumer spending accounted for 82.5% of real GDP growth. Each year, PCE grew 3.5%, continuously compounded. William Emmons Jan 2012 Federal Reserve Bank of St. Louishttp://www.stlouisfed.org/publications/re/articles/?id=2158

**** The Collected Works of Abraham Lincoln, Roy P. Basler, Editor, (1859 Address to the Wisconsin State Agricultural Society, Vol. III, pp. 478-479); (1846 Discussion of Protective Policy, Vol. I, p. 415); Rutgers University Press, New Brunswick, N.J., copyright 1953 Abraham Lincoln Association.

WEIGHTS, MEASURES & BALANCING SCALES:
http://www.youshouldbuygold.com/weights-measures-and-balancing-scales/

CONTENTS: Ancient Weights: TALENT, MANEH, SHEKEL, GERAH, BEKAH; TROY Weights; METRIC Weights; CARAT Weights; KARAT Purity; MILLESIMAL Fineness; FAR EAST Weights; British POUND (Pound Sterling, Pennyweight, Sovereign); DOLLAR (Old U.S. Gold Coins); Historical GOLD-to-SILVER RATIOS (U.S. 90% Silver Coins, Gold & Silver American Eagles); BIBLE Weights (Conversion TABLE); WORLD COINS.

FEDERAL RESERVE DOUBLE WHAMMY:
http://www.youshouldbuygold.com/federal-reserve-double-whammy/

WHO WERE THE BANKERS AT BRETTON WOODS (first-ever list): http://www.youshouldbuygold.com/who-were-the-bankers-at-bretton-woods/

WHAT ARE CAPITAL CONTROLS? http://www.youshouldbuygold.com/what-are-capital-controls/

Dollar Will Lose Value Over Time: Guaranteed.

Coins made of silver and gold store value over time. The paper dollar loses value over time — it is guaranteed. In 1971, a $1 bill was equivalent to 1/35th of one ounce of gold. In 2018, a $1 bill is worth only 1/1,350th of a new one-ounce gold coin [below]. 

After the 2007 credit-collapse, China implemented a strategy to slowly de-peg from the PETRO-DOLLAR and aggressively add gold to its foreign exchange reserves. The day credit FROZE worldwide [Aug. 9, 2007], the gold price was $662.60/oz [London p.m. fix]. On March 14, 2008, people were shocked when gold surged past $1,000/oz for the first time ever

Image result for forest for the trees luke gromen

THE EAST IS DRAINING BULLION FROM THE WEST.

Of the 3,000 tons of gold mined each year, every ounce of gold is PRE-SOLD. Who is buying all of the gold? Since the 2007 credit-collapse, Chinese, Russian, Indian, and Middle Eastern purchases of gold bullion have been unprecedented. Buyers from the Near and Far East [VietNam, Turkey, Singapore, Hong Kong, Shanghai, Dubai, Bangkok, etc.] are vacuuming available bullion supplies on every price-dip. (Recently, Russian buying has dwarfed purchases by China!)

Gold Kilobars

In the last ten years, there has been a massive draw-down of deliverable gold at the London Bullion Market Assn. [LBMA] and the New York Commodities Exchange [COMEX]. As a result of scrap shortages, the world’s five major refineries have waiting lists for deliveries of pure bullion. Warehouse inventories of available “Good Delivery Bars” [400 oz gold bars, 1,000 oz silver bars] are extremely low at bullion banks. 

Image result for naked silver shorting

Two of the bullion banks under pressure are JPMorganChase Bank and the Hong Kong & Shanghai Banking Corp. JPMorganChase is custodian of “SLV” the silver ETF (Exchange Traded Fund) and HSBC is custodian of “GLD” the gold ETF.

PAPER SILVER • PAPER GOLD

Today, more than half of the world’s population believe that the only real money is gold and silver. On the other hand, less than ½ of 1% of Americans own physical precious metals. Most investors in the West buy PAPER silver and gold ‘derivatives’ [options, commodities futures contracts, and ETFs].

The PAPER market is an entirely ‘different breed of cat’ than the PHYSICALS market. Physical bullion cannot be printed; the supply is limited. The highly leveraged PAPER market has an unlimited, ‘virtual’ supply of silver and gold. In this securitized, fractional-reserve system, they sell gold and silver contracts without the bullion to back the contracts ounce-for-ounce [the practice of selling 100s of ounces to every 1 oz of stored physical silver is called “naked shorting.”]*

NAKED SHORTING DISTORTS SUPPPLY AND DEMAND. 


Thanks to an unlimited supply of PAPER silver and gold, the digital market is in control of spot prices. Prices do not reflect actual supply and demand for physical bullion. During intervals in 2011, 2013, 2014, and July 2015, supplies of silver were so tight, U.S coin dealers were unable to satisfy over-the-counter demands. But each time, the market was flooded with massive tonnage of PAPER silver to suppress the price.

Shortages of actual silver and gold bullion can be hidden as long as naked shorting controls the pricing mechanism. The last time free-market forces prevailed against the trading desk of the New York Federal Reserve was in 2011.When silver and gold supplies completely dried up around the world, silver climbed 160% in only nine months. Coin dealers across the nation were “Bid only” – “No offer.” 

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PRINTING DOLLARS

The official money supply quadrupled from 2009 to 2014. But the Federal Reserve no longer reveals how much or how fast the total monetary base is expanding. To avoid the spotlight on the ballooning total, the Fed quit publishing the “M3” monetary aggregate in 2006. [Image of the Adjusted Monetary Base courtesy of Zerohedge.]

Image result for st louis fed adjusted monetary base

The chart above shows how rapidly the monetary base has been expanding. Money-printing is showing up in rising costs: in the inflated stock market and select real estate markets, for insurance, rent, utilities, tuition, medical care, groceries, gold, and crypto-currencies.

DON’T END UP HOLDING A PIECE OF PAPER.

A whole lot more money-printing is headed our way. And deliverable bullion in the West is in short supply. Extreme product shortages always end up triggering runs to higher highs. The next move up in precious metals will be propelled by HUGE supply deficits. The exchanges are selling the same ounce of physical gold or silver over and over. It is estimated there are 400 claims to every 1 oz of “deliverable” silver at the N.Y. COMEX.

Silver is called ‘the poor man’s gold.’

Take delivery while actual coins are readily available in North America. If markets are disrupted, old U.S. silver dollars and U.S. 90% silver dimes, quarters, and halves [pre-1965 coins] could be used in small transactions. PHYSICAL silver and gold coins are valuable under all market conditions. Don’t end up holding a piece of paper!

Submitted by Denise Rhyne

END NOTES

* NAKED SHORTING (three articles): http://www.youshouldbuygold.com/wp-content/uploads/2017/09/GOLD-SILVER-9-1.pdf


The British Pound Sterling lost its status as the primary basis of global trade in 1944. Why? Because the Treasury of the United States held title to about 4/5ths of the world’s officially-held gold reserves [more than 20,000 tons after WWII]. The dollar became the world’s “reserve currency” because U.S. government creditors could
convert their dollars to U.S. gold [from 1792 until Aug. 15, 1971].

Since gold convertibility was suspended in 1971, the dollar has retained its reserve-currency status because of the dollar’s forty-year monopoly in settling OPEC oil trades. THE PETRO DOLLAR SYSTEM: http://www.youshouldbuygold.com/gold-the-petro-dollar-and-us-foreign-policy/ 

WEIGHTS, MEASURES & BALANCING SCALES (Contents): Ancient Money; TROY Weights; METRIC Weights; CARAT Weights; KARAT Purity; FAR EAST Weights; MILLESIMAL Fineness; POUND (Sovereign, Pound Sterling, Pennyweight); DOLLAR (U.S. 90% Silver & Old Gold Coins); Biblical TABLE of Weights: Talent (Kikkar), Maneh, Shekel, Gerah, Bekah; Historical Gold–Silver RATIOS; World Gold Coins. http://www.youshouldbuygold.com/weights-measures-and-balancing-scales/

 

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We Already Have HYPER-CREDIT.

The combination of currency debasement, falling production, and rising debt always ends in credit collapse. In all history, there are no exceptions. But ten years ago, few Americans had ever considered the possibility.

Image result for credit freeze

Suddenly, on Aug. 9, 2007, inter-bank lending locked up; the dollar was in free-fall; and credit completely FROZE here and around the world. The following year, Bear Stearns collapsed (March); Merrill Lynch and Lehman Brothers collapsed (Sept. 15); and the stock market crashed (Sept. 29, 2008). The Dow Jones Industrial Average had the biggest one-day drop in U.S. history; Lehman was the largest bankruptcy in U.S. history. 

Since the global credit-collapse in 2007, the economy has been rocked by a series of violent after-shocks: the banking system came close to locking up again in Nov. 2011, Oct. 2014, and Aug. 2015. The Federal Reserve has kept the dollar-reserve system afloat by ‘doubling down’ on the excesses that led to the debt crisis. For nine years, the world has been on the biggest debt-binge of all time (U.S. debt has more than doubled). 

The Federal Reserve’s remedy for the on-going debt-crisis is the creation of HYPER-CREDIT. The entire financial system is sustained by exotic financial instruments called “derivatives.”

Image by Martin Kozlowski, Wall Street Journal.

The Federal Reserve monetizes debt (here and abroad). From nowhere, trillions of dollars spring into existence (new debt becomes brand-new credit). The Fed and other central banks have created, issued, financed, or enabled an estimated 1.4 QUADRILLION dollars of derivatives debt to ‘paper over’ the fragile banking system. The number attached to this debt has three more zeros than the combined value of all of the goods and services produced on earth (10 to the 15th power)!

 $1 trillion = one million million dollars
$1 quadrillion = one thousand million million dollars

By definition, one thousand trillion dollars of derivatives debt “derive value (cash flows) by reference to underlying assets.” What possible collateral could give value to more than one quadrillion dollars of derivatives debt? The following logical conclusions can be made about this historic debt bubble:

  • There is relatively little real collateral underlying the debt.
  • The debt can be repaid only by more HYPER-CREDIT.
  • The debt is merely delaying a monetary catastrophe.
  • The climactic end of the bubble is certain (Herbert Stein’s LAW): “If something cannot go on forever, it will stop.”

A few years back, Dr. Jürgen Stark, an economist with the European Central Bank, shook the financial world when he told the Ludwig von Mises Institute that the global financial system came “within hours” of collapse in Nov. 2011. He said:

“The whole system is based on pure fiction, groping since 2008 to avoid a second Lehman, which if it happens, the system will not survive.” [Professor Dr. Jürgen Stark, European Central Bank; mises.org.]

Dr. Stark told the audience that the only thing keeping the system going since 2008 is money-printing; central bankers are “flying blind;” no one knows how much money (credit) is being created or where it is going. He recommended allocating savings to traditional safe-havens such as silver and gold. 

OVERNIGHT GOLD/ SILVER SHORTAGES

The year before the global credit-collapse, gold was $525/oz [Jan.5, 2006]. The day credit FROZE worldwide [Aug. 9, 2007], the gold price was $662.60/oz [London p.m. fix]. On March 14, 2008, people were shocked and amazed when gold surged past $1,000/oz for the first time ever. However, soon after the stock market crashed [Sept. 2008], gold dropped 30% (from $1,000 to $700/oz) and silver fell 70% (from $21 to $9/oz).

Did the precipitous fall in silver and gold prices mean low demand and abundant supply? NO. The ‘hit’ on precious metals was accomplish by “naked” short-selling.* Every scared gold-bug wanted coins; and every U.S. dealer ran completely out of coins and bars – almost overnight

Within a few days, the supply of PHYSICAL gold and silver dried up all over the country. The major world refiners had nothing. NO gold or silver was available from the five major world mints: Canada, Austria, Perth, South Africa, and U.S. Mint. Dealers could not get delivery for well over a month. In 2011, the same thing happened; and silver deliveries were delayed even longer. When the next financial crisis rocks the dollar, will supplies of gold and silver completely disappear?

PARADIGM-SHIFT IN GLOBAL MONETARY SYSTEM

Today’s market indicators do not reflect what is happening beneath the surface. The monetary system ‘as we know it’ is coming to an end. The International Monetary Fund says a “Money Standard Shift” will be concluded during the next crisis. 

BEFORE THE NEXT PANIC, PRESERVE YOUR 
NEST-EGG BY SWITCHING TO REAL MONEY.

If you take delivery of silver and gold, you will have protection from illiquid markets, third-party risk, and overnight currency devaluations. Today, the price of the 1-oz gold coin [above] is $1,350. Since the day credit collapsed, the PAPER dollar has lost more than half of its value against PHYSICAL gold.

Submitted by Denise Rhyne.

END NOTES

* Gold and the dollar are competing currencies. A rising gold price indicates a failing dollar. For this reason, the trading desk of the Federal Reserve “manages” the spot price with a trading technique called “naked” short-selling. When gold and silver break to the upside, spot prices are brought down by massive, concentrated sales of derivatives (PAPER gold and silver). Contracts representing millions of ounces are dumped simultaneously on London and New York exchanges. 

Things You Probably Didn’t Learn in School About Gold & Silver-pdf : Includes articles on NAKED SHORTING.

 

“Indeed, one can be deceived in many ways; one can be deceived in believing what is untrue, but on the other hand, one is also deceived in not believing what is true.” [Danish philosopher Søren Kierkegaard, 1847 Works of Love, Haper Perennial, p. 23, 1962; Kjerlighedens Gjerninger, SKS, vol. 9, Gad & Søren Kierkegaard Forskningscentret, p. 13, 2004.]

Platinum Markets-Brace for Uncertainty, Keep Door Open for Opportunity

by Aran Murphy

The market-makers wondered aloud at the end of 2016: Which way will our economy turn with new policy makers in Washington? Will our national debt become difficult to service with higher interest rates? Will our unfunded pension liabilities force broad-scale local bankruptcies? Or will we pull the government back, liberate our taxpayers and traders, and allow our entrepreneurial base to do what it does best?

A consensus emerged in December that our days of forestalling hard debt and demographic-driven choices are limited. Many worry that it is too late, or that the incoming President is too politically inexperienced to put our national finances back on track. Others think – with the recently elected – we may see tremendous opportunity to re-establish growth and loose our economic fetters. From bonds to stocks to more pure measures of market volatility, President-elect Trump continues to bring opposing views out after long years of – what many will consider stagnating – policy consensus.

After the US elections, stock market indices took off. The bond markets tumbled. The Federal Reserve Bank raising rates didn’t help bonds, of course. Gold, silver and platinum prices eased as the world creeps out from under the Sword of Damocles that has long been the official policy of zero interest rates(One can’t have functioning capital markets when central banks are pricing capital at zero). The markets overall seem tentative about what direction, economically, the US should expect. Will the US experience crisis, or will it find the real growth in incomes and economic opportunity that has eluded us for the past 12 years? Continue Reading →

Beware Of The Dollar: The U.S. Ponzi Economy Is Malfunctioning.

Gold is the true SAFE-HAVEN currency. The dollar is ‘strong’ only when compared to more toxic currencies. Since the 2007 credit-collapse, the dollar has fallen 100% against gold. In other words, it now takes twice as many dollars to buy the same amount of gold.

Dramatic Spike In Fund Flows Into The Gold ETF GLD And A Major Warning On The U.S. Dollar

On the day markets FROZE worldwide [Aug. 9, 2007], the price of gold was $662.60/oz [London p.m. fix]. It now takes twice as many dollars to buy the same Troy ounce of PHYSICAL gold. The price of gold is signaling declining confidence in the dollar-reserve system.

THE DAY LIQUIDITY EVAPORATED

It is generally acknowledged the current crisis in financial markets began with a liquidity freeze on August 9, 2007. France’s largest bank, Banque BNP Paribas, cited that date as “the day liquidity completely evaporated from certain segments of the U.S. securitisation market.”* Continue Reading →

A Silver Short Squeeze Is On The Way

Everything has gotten bigger since the last major silver short squeeze (2011). Debt is bigger, leverage is bigger, and the number of major players taking delivery of physical silver is bigger.

The concentrated short positions in silver held by a small number of “bullion banks” DWARF the Hunt brothers’ 1980 long position of only 100 million oz.


Based on supplies of actual, available bullion and the last six months of demand, we expect to see a short squeeze (RUN) on silver [and gold] in 2017. Odds are: SILVER COINS will be the trade of the year. Continue Reading →

Gold Price Manipulation Will End.

We are living in an age of manipulated financial markets – interest rates are artificially low, and the stock market is artificially high. Demand for physical gold is at historic highs, supplies are strained, yet the price is relatively low. When will manipulation of the price of gold come to an end? 2017.

First, it is important to understand why the Federal Reserve is pulling out all the stops to repress the price of gold. A high gold price makes the dollar look bad. No one would want dollars if the price of gold were allowed to rise according to actual demand and actual supply of PHYSICAL bullion.

Over many decades until 2007, the Federal Reserve kept the price of gold artificially low by selling tons of bullion. However, coordinated gold sales by central banks stopped after the 2008 crash. Continue Reading →

The HYPER-CREDIT BOOM – BUST

Global financial markets are integrated and inter-dependent. The markets look ahead and trade on anticipation. It is now extremely bullish for gold!

Zero% Interest Rate Policy (ZIRP)

Since 2008 (for the first time in the history of the world), 90% of the developed countries have had 0% interest rates and a steady flow of “Quantitative Easing” (QE). A small number of “too-big-to-fail banks” [domestic and foreign] have been able to borrow from the Federal Reserve at or just above 0%. (For seven years, overnight/inter-bank lending was 0% to .25%. On Dec. 16, 2015, the nominal rate was raised to .25%; the maximum rate is now .50%).  Continue Reading →

Very Little Available Gold is Left in the West.

The last time gold and silver moved like a freight train was in the 2011. One country triggered the RUN on gold and silver. Overnight, supplies of gold and silver dried up; and mints worldwide ran out of deliverable bullion.


In less than nine months, gold and silver made new highs. Gold rose $600; silver climbed 160%. Silver was just as scarce as gold. (Silver was $9 Sept. 2005; $50 April 2011.) 

A LITTLE GOLD HISTORY FOR THE BIG PICTURE

When the leading currencies were backed by gold, the United States exported more than 40% of all manufactured products used by the world. While today the U.S. is the greatest debtor nation, fifty years ago, America was the greatest creditor nation. Back then, other countries needed sufficient gold to buy made-in-America products.
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