Dollar Devaluation, Debt Default & Gold

• I have written quite a few posts highlighting the likelihood of a USD devaluation. This will be via Gold. Since it is impractical to devalue against each individual currency worldwide, the easiest way will be to devalue against Gold. A devaluation as you know is inflationary. Just what the doctor ordered for the decimating deflation we are facing.
   
• Diane Francis writes in U.S. dollar devaluation on its way :
    
  Now it is 2009 and what appears to be looming, according to one authoritative press report this weekend, is a massive pre-emptive devaluation of the U.S. dollar as Team Obama readies itself to announce the “Big Bang” – a gigantic bailout of the frozen U.S. economy involving trillions of dollars.
   
  So far, Washington has allocated US$750 billion for banking rescues and another US$825 billion for job creation projects. But that’s nothing.
    ….
  Those are the highlights of what can only be described as a Nuevo Financial System and a currency debasement which will involve the printing of trillions of dollars, Euros and all the others.
   
  Canadian government officials will end up having to do the same: the “bad” bank to bail out the banks which are caught in the contagion of the global meltdown plus job creation stimulus and a broadening of the social safety net.
     
• Keep in mind that the FedRes has so far failed in all its attempts to re-inflate despite printing trillions of dollars out of thin air. The current strong USD is also impacting US export competitiveness greatly. The relative cost of siting a factory in US compared to Asia is still too high. Manufacturing will not return to America unless cost is competitive. A simple devaluation will address the issues above. But a devaluation of the USD is no cure all for the economy. It will destroy all our savings ! And if it goes out of control will lead to Zimbabwe like hyper-inflation. Think : 3 eggs cost a billion dollars! So please take precaution: buy Gold !
   
• Bernanke says repeatedly: FedRes is ready to go into the treasury market to buy bonds. What a noble and highly prepared FedRes right? The reality is somewhat more sombre! James West says in U.S. Debt Default, Dollar Collapse (emphasis mine):
    
  The prospect of the United States defaulting on its debt is not just likely. Its inevitable, and imminent.
   
  The regulatory black holes into which sanity and reason disappear on a daily basis are soon to collapse under the mass of their sheer size. The circle jerk going on among G7 governments has to end – the steady advance of gold, even in the face of a managed price, exposes the real value of the U.S. dollar, as opposed to its apparent value expressed in the dollar index.
   
  Is 2009 the year that the United States formally defaults? And with that, will the dollar collapse and be rolled back ten for one or more? There are a lot of reasons to support that theory. To Wall Street economists, such an event is heresy and therefore unthinkable. Yet Wall Street is the very La-la-land that bred the idea of a perpetually indebted nation in the first place.
   
  Number one among the indicators favoring this scenario is what is happening in the U.S. Treasuries auction market. Last Thursday, an $30 billion auction in five-year notes failed to stir the interest of traditional primary dealers. The auction itself was saved by an anonymous “indirect” bid.
   
  Buyers are discouraged by the prospect of what is expected to amount to $2 trillion total issuance for the full year of 2009. The further out the maturities on notes, the more bearish the sentiment towards them. The only way to entice buyers is through the increase in yields.
   
  But with yields at 1.82 per cent, five-year notes were met with a demand for 1.98 times the amount offered – the lowest bid-to-cover ratio since September. A sell-off in treasuries began in earnest upon the conclusion of that auction.
   
  The U.S. Federal Reserve suggested last week that it was going to step up its treasury-buying activity, and the mainstream media interprets this as a form of market support. What it actually is evidence of growing anxiety and desperation on the part of the Fed as the realization dawns that demand for treasuries is progressively evaporating.
   
  The increased demand for gold as an investment witnessed throughout the last two weeks that has pushed gold to a 4 month high is further evidence that investors across the board are gravitating more towards gold and away from U.S. debt. 
   
• If you will accept it, all the warnings signs are there for a major, cataclysmic financial event. A devaluation against Gold has been done in the past by FDR (1933-34). Before he devalued, Congress passed a law to confiscate all physical gold from Americans. That is why there has been a lot of talk about gold confiscation.
   
• The basic thinking behind gold confiscation are :
   
  - Uncle Sam needs a lot of money/asset.
  - There are a lot of debts that need to be paid to foreigners.
  - Foreigners will not be inclined to accept USD but will accept Gold.
  - When Americans hoard Gold, the economy will not be able to re-inflate. Gold will then be the default currency as the USD will collapse. Who wants a piece of toilet paper USD? The financial system based on fiat currency will collapse.
   
• Since my earlier posts on the collapse of the bond market in Jan, bond prices have collapsed. But bond yields are still unattractive. Will we see bond yields rise to 10% and above? Unlikely, now that FedRes will go in and buy up these bonds. But when the FedRes does that, it means that the USD will collapse. Because the FedRes will have to print something like US$2T out of thin air. When foreign bond holders see the FedRes buying, I have no doubt that they will dump all their existing bond holdings onto the FedRes. So the money printing can be more than US$2T. Maybe even US$8-10 T. This is madness !
   
• Something has to give! It will be the USD ! What better time to ’force’ a new currency upon the American public! The Amero? What better time to come out with a new Financial World Order ? A new banking system that will control and manage all governments and central banks such that the ‘sinful’ mistakes of the US government will not be repeated. The usual Illuminati: Order out of Chaos crap!
   
• When the USD is devalued massively against Gold, the rest of the world will have to decide next what they are going to do with their fiat currencies. I believe the EU and Japan will follow suit and devalue accordingly. They are beset by similar problems. The rest of the world will by default devalue also. If they don’t they will not be able to compete economically. Gold will thus soar in all currencies. The degree to which it will soar for each currency will be different. But you get the idea: competitive devaluation worldwide!
   
• US government debts of US$10-15T (not including unfunded liability for Social Security and Medicare of about US$45 T), will be inflated away. US$ 10-15T will be worth what is US$1-1.5T in terms of purchasing power. Since US holds the most amount of Gold reserves worldwide, US will be solvent again. As a comparison US has 8100 tonnes of gold while China has only 600 tonnes.
   
• My feeling is that we are very close to the tipping point. Celente and GEAB are probably right in forecasting cataclysmic financial event in March 2009. You have the next few weeks to prepare. Buy as much physical gold as you can and hold it yourself. Don’t be surprise if the US government confiscates all the physical gold in gold ETF funds or in gold vaults that hold them for pension funds!  I doubt the US government have the resources to go house to house and check whether each family has gold. Individuals are really small fries compared to all the gold held in vaults for hedge funds and pension funds.
   
• How much will gold soar to? It is anybody’s guess. Uncle Sam has 8100 tonnes worth about US$250B. To turn US$250B to pay off US$10T of debts, you have to raise gold price by 40x. This is a wild figure! Impossible? Maybe. But keep in mind in the 1980-81 period gold price rocketed 21x to a high of US$870/ounce ! That was during the Iran/Iraq war. Now we are facing a greater crisis: A global monetary meltdown!
   
• See also :
   
  Massive US Dollar Devaluation Against Gold During 2009
  Gold Rush Worldwide!
  Obama, Roosevelt, Gold Confiscation and Dollar Devaluation
  Economic Depression and Gold
  Celente – Code Red ! Economy in Collapse !
  GEAB : Systemic Economic Crisis: The Sequence of Global Insolvency Begins
  Global Financial & Economic Meltdown
  GEAB forecasts Next Financial Tsunami in March 2009
  Global Monetary Meltdown in 2009 ?
  America’s Debt – Ticking Nuclear Bomb!
  American & British Banks are Bankrupt!
  Economic Collapse of 2009 – Greater than Great Depression of 1929
  America is at the Edge of Niagara Falls
  Gerald Celente – Trends 2009
  Can Countries Go Bankrupt ?

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Disclaimer – I am not a financial advisor. This is not an advice to buy, sell or hold any stocks or bonds or any precious metals.

Gaza Genocide Must Not Be Forgotten

• We will not be silent on Gaza! As a Christian I find the actions of Israel in the ethnic cleansing of the Palestinian people repugnant. The Bible does not condone murder. Neither does the bible teach genocide.
   
• The sad and somewhat strange truth is that many of these Palestinian people may be of the seed of the 12 tribes of Israel. That is they are genetically Jews from the 12 sons of Jacob. The Ottoman empire conquered the middle east after the fall of the Roman empire. Being a Muslim empire, many Jews probably were forced or of their freewill converted to Islam.
   
• Joshua Holland writes in Controversial Bestseller Shakes the Foundation of the Israeli State :
    
  What if the Palestinian Arabs who have lived for decades under the heel of the modern Israeli state are in fact descended from the very same “children of Israel” described in the Old Testament?
   
  And what if most modern Israelis aren’t descended from the ancient Israelites at all, but are actually a mix of Europeans, North Africans and others who didn’t “return” to the scrap of land we now call Israel and establish a new state following the attempt to exterminate them during World War II, but came in and forcefully displaced people whose ancestors had lived there for millennia?
    ……
  That’s the explosive thesis of When and How Was the Jewish People Invented?, a book by Tel Aviv University scholar Shlomo Zand (or Sand) that sent shockwaves across Israeli society when it was published last year. After 19 weeks on the Israeli best-seller list, the book is being translated into a dozen languages and will be published in the United States this year by Verso.
    ….
  Its thesis has ramifications that go far beyond some antediluvian academic debate. Few modern conflicts are as attached to ancient history as that decades-long cycle of bloodletting between Israelis and Palestinians. Each group lays claim to the same scrap of land — holy in all three of the world’s major Abrahamic religions — based on long-standing ties to that chunk of earth and national identities formed over long periods of time. There’s probably no other place on Earth where the present is as intimately tied to the ancient.
   
• I don’t subscribe to all the views in the book. Many assertions probably can never be proven. However, to say that all Israelis nowadays are direct descendants of the 12 tribes of Israel is likely to be untrue. Some are probably Khazar converts from the old Khazarian empire that converted to Judaism in the 8th century.
   
  “Hasdai ibn Shaprut, who was foreign minister to Abd-al-Rahman, Sultan of Cordova, in his letter to King Joseph of the Chazars (about 960 AD) … speaks of the tradition according to which the Chazars once dwelt near the Seir Mountains [The 'Seir Mountains' are none other than the original land of Esau-Edom - 'Thus dwelt Esau in mount Seir: Esau is Edom' (Genesis 36:8). Seir was a mountain range sought of the Dead Sea and was also known as the 'land of Edom' (Genesis 36:21). The Seir mountains were the home of the Edomites for nearly a millennium (The Edomites arrived in Edom or Seir at the end of the 14th and beginning of the 13th century B.C. Encyclopedia Judaica, Vol. 6, p. 372) Thus we have it from Jewish sources that the Khazars originally 'dwell near the Seir Mountains' so are racially of Edomite stock. But how and when did Edomites get to Khazaria? There is evidence that in the 6th century BC, some of the Edomites fled their homeland of Seir and migrated north, 'After the fall of Jerusalem, in 586 BC, the Edomites began to press northward (Ezekiel 36:5)." (The New Westminster Dictionary of the Bible, ed. by Henry S. Gehman, The Westminster Press, Philadelphia, 1970, p. 418 )
   
  "Edom is in Modern Jewry." (The Jewish Encyclopedia,1925 edition, vol. 5, p. 41)
   
  "Strictly speaking, it is incorrect to call an ancient Israelite a 'Jew' or to call a contemporary Jew an 'Israelite' or a 'Hebrew.'" (The Jewish Almanac, Compiled and Edited by Richard Siegel and Carl Rheins (New York: Bantam Books, 1980) p. 3.)
   
• Joshua Holland again :
   
   ....more serious criticism also greeted Zand's work. In a widely read critical reviewof Zand's work, Israel Bartal, dean of humanities at the Hebrew University, slammed the author's second assertion -- that Zionist academics had suppressed the true history of Judaism's spread through emigration and conversion in favor of a history that would give legitimacy to the quest for a Jewish state.
   
  Bartal raised important questions about Zand's methodology and pointed out what appears to be some sloppy details in the book. But, interestingly, in defending Israel's academic community, Bartal supported Zand's more consequential thesis, writing, "Although the myth of an exile from the Jewish homeland (Palestine) does exist in popular Israeli culture, it is negligible in serious Jewish historical discussions." Bartal added: "no historian of the Jewish national movement has ever really believed that the origins of the Jews are ethnically and biologically 'pure.' " He noted that "[i]mportant groups in the [Zionist] movement expressed reservations regarding this myth or denied it completely.”
   
  “As far as I can discern,” Bartal wrote, “the book contains not even one idea that has not been presented” in previous historical studies. Segev added that “Zand did not invent [his] thesis; 30 years before the Declaration of Independence, it was espoused by David Ben-Gurion, Yitzhak Ben-Zvi and others.”
   
  One can reasonably argue that this ancient myth of a Jewish nation exiled until its 20th century return is of little consequence; whether the Jewish people share a common genetic ancestry or are a far-flung collection of people who share the same faith, a common national identity has in fact developed over the centuries. But Zand’s central contention stands, and has some significant implications for the current conflict between Israel and the Palestinians.
   
• Why can’t we have a single Palestinian state for both Israelis and Palestinian Arabs? Why not? I don’ t see anything wrong with it. Religiously, Torah Jews and Anti Zionist Jews are correct in saying that the true Israel will only return to the promised land by an Act of God via the Messiah: Yeshua Hamashiach. It is the Will and Prerogative of God and no man should take it upon himself to act on it.
   
• Joshua Holland again :
   
  A logical conclusion of Zand’s work exposing Israel’s founding mythology may be the restoration of the idea of a one-state solution to a legitimate place in the debate over this contentious region. After all, while it muddies the waters in one sense — raising ancient, biblical questions about just who the “children of Israel” really are — in another sense, it hints at the commonalities that exist between Israeli Jews and Palestinian Arabs. Both groups lay claim to the same crust of earth, both have faced historic repression and displacement and both hold dear the idea that they should have a “right of return.”
   
  And if both groups in fact share common biblical ties, then it begs the question of why the entirety of what was Palestine under the British mandate should remain a refuge for people of one religion instead of being a country in which Jews and Arabs are guaranteed equal protection — equal protection under the laws of a state whose legitimacy would never again be open to question.
   
• See also :
   
  Khazar Empire, Illuminati and New World Order
  Richard Falk – Memories of Warsaw Ghetto
  CBS 60 minutes – Exposing Apartheid !
  Gaza 2009 – We will never Forget !
  Solidarity with Gaza – Canberra Australia
  The Truth About the Gaza Massacre!
  History of Zionism – Ethnic Cleansing of Palestine !
  We will not be silent on Gaza!
  UK Jewish MP – Israel Behaving Like Nazis
  Life In Occupied Palestine – Anna Baltzer
  Protests Against Gaza Massacre by Anti Zionist Jews
  Anti Zionist Jews’ Demonstration Against the Zionist Massacre in Gaza
  Zionism is the Cause of the Problems - Rabbi
  Anti Zionist Jews that lived in Palestine Tell Their Story
  AMERICAN JEWS OPPOSE ISRAELI POLICY IN GAZA
  Israelis who Refuse to Serve in the Military – American Jews Protest !

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Medical Cartel & Cancer

• Eustace Mullins, author, researcher and historian talks about his book : Murder by Injection - The Story Of The Medical Conspiracy Against America .
   
• In this book Mr Mullins documents the Medical Monopoly that has hijacked the American medical establishment. Big Pharma has a strangle hold on medical schools and research centres that effectively makes them an extension of Big Pharma. Why are there no cures for cancer? Cancer is a highly profitable business for Big Pharma. Does the Medical Monopoly work against the best interest of Americans? Are doctors mere technical sales representatives for this Medical Cartel?
   
• Mullins alleges in his book that :
    
  An important step on the road to world monopoly was the most far-reaching corporation invented by the Rothschilds. This was the international drug and chemical cartel, I.G. Farben. Called “a state within a state,” it was created in 1925 as Interessen Gemeinschaft Farbenindustrie Aktien gesellschaft, usually known as I.G. Farben, which simply meant “The Cartel”. It had originated in 1904, when the six major chemical companies in Germany began negotiations to form the ultimate cartel, merging Badische Anilin, Bayer, Agfa, Hoechst, Weiler-ter-Meer, and Greisheim-Electron. The guiding spirit, as well as the financing, came from the Rothschilds, who were represented by their German banker, Max Warburg, of M.M. Warburg Company, Hamburg. He later headed the German Secret Service during World War I and was personal financial adviser to the Kaiser. When the Kaiser was overthrown, after losing the war, Max Warburg was not exiled with him to Holland, instead he became the financial adviser to the new government. Monarchs may come and go, but the real power remains with the bankers. While representing Germany at the Paris Peace Conference, Max Warburg spent pleasant hours renewing family ties with his brother, Paul Warburg, who, after drafting the Federal Reserve Act at Jekyl Island, had headed the U.S. banking system during the war. He was in Paris as Woodwow Wilson’s financial advisor.
   
  I.G. Farben soon had a net worth of six billion marks, controlling some five hundred firms. Its first president was Professor Carl Bosch. During the period of the Weimar Republic, I.G. officials, seeing the handwriting on the wall, began a close association with Adolf Hitler, supplying much needed funds and political influence. The success of the I.G. Farben cartel had aroused the interest of other industrialists. Henry Ford was favorably impressed and set up a German branch of Ford Motor Company. Forty per cent of the stock was purchased by I.G. Farben. I.G. Farben then established an American subsidiary, called American I.G., in cooperation with Standard Oil of New Jersey .
    …..
  In 1930, Standard Oil announced that it had purchased an alcohol monopoly in Germany, a deal which had been set up by I.G. Farben. After Hitler came to power, John D. Rockefeller assigned his personal press agent, Ivy Lee, to Hitler to serve as a full-time adviser on the rearmament of Germany, a necessary step for setting up World War II. Standard Oil then built large refineries in Germany for the Nazis and continued to supply them with oil during World War II. In the 1930s Standard Oil was receiving in payment from Germany large shipments of musical instruments and ships which had been built in German yards.
     ……
  As the world’s pre-eminent cartel, I.G. Farben and the drug companies which it controlled in the United States through the Rockefeller interests were responsible for many inexplicable developments in the production and distribution of drugs. From 1908 to 1936 I.G. held back its discovery of sulfanilamide, which would become a potent weapon in the medical arsenal. In 1920, I.G. had signed working agreements with the important drug firms of Switzerland, Sandoz and Ciba-Geigy. In 1926, I.G. merged with Dynamit-Nobel, the German branch of the dynamite firm, while an English firm took over the English division. I.G. officials then began to negotiate with Standard Oil officials about the prospective manufacture of synthetic coal, which would present a serious threat to Standard Oil’s monopoly. A compromise was reached with the establishment of American I.G., in which both firms would play an active role and share in the profits.  
   
• Have there been many cures that have been suppressed by Big Pharma because they are natural and cannot be patented? How about Vitamin B17 ? DCA ? What about the fluoridation of water? Are there proofs that fluoridation of drinking water prevents cavities? There seems to a large body of research that says fluoridation of water is harmful to the human body. See : http://www.fluoridation.com/ 
   
• This is a rather interesting perspective. Draw your own conclusions. See also :
   
  The Science and Politics of Cancer
  Vitamin B17 Cancer Treatment ?
  Promising Cancer Cure – DCA !
   

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Gerald Celente – Criminal Congress, March 2009 Depression Crisis

Part    4     ,      Part    5   

• Alex Jones interviews Gerald Celente (27 Jan), renown forecaster of Trends Research Institute .
   
• Key points :
   
  Around Feb/Mar America will see ‘Big Failures’
  We are going to see ‘Economic Riots’
  Realization of Depression will seep in by March 2009
  Congress – A house of Ill Repute
  Obama Policies Disillusionment
  Banking collapse – Bank Holiday?
  Gold Confiscation?
  Secessionist Movement Increasing in America
  Geopolitics – Iran and Israel (Beginning of WW3 ?)
  Corporate Take Over of America and the World (Fascism)
  Military Industrial Complex Taking over the Country
  Economic 9/11
  and so on…….
   
• See also :
   
  Celente – Code Red ! Economy in Collapse !
  Gerald Celente – Trends 2009
  Gerald Celente – Israel War to Ignite Terror, Threaten Global Economy and possibly Spark World War III
  Economic Meltdown 2009 – Gerald Celente, Bob Chapman & Robbie Noel
  Economic Collapse of 2009 – Greater than Great Depression of 1929
   

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