Socio-Economics History Blog

Socio-Economics & History Commentary

Canadian Doctor: H1N1 Vaccination a Eugenics Weapon for Mass Extermination

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July 11, 2009 Posted by | Medicine & Health | , , | 13 Comments

Surreptitious Gold Purchase, the U.S. Dollar, and the Chinese Yuan

  • The Chinese are no idiots! They know what is coming. Incessant Quantitative Easing amounts to USD devaluation. Can the US fulfill all their debt obligations? I doubt so. Social security and Medicare liabilities amount to anywhere between US$60T and US$100T. With tax revenues collapsing, America is going the way of California. California will default on its debts soon. It is effectively defaulting now by paying with IOUs.
     
  • I have my doubts that the western central banking cartel, the shadow government, will allow the Chinese to take over their financial and banking system without a fight. They will never give up their control over fiat money. How will they maintain control? War? Blackmailing? Coercing? Co-opting? Corrupting? No doubt all methods will be used!
     
  • The Chinese are accumulating gold surreptitiously. Gold is real money. They know it. There is no way any government can print, out of thin air, quantities of gold! Jennifer Barry explains :
      
    China now has the fifth largest official gold reserve, 1,054 metric tons, surpassing Switzerland. While this was a 76% jump in gold holdings, the yellow metal is still only 1.6% of China’s foreign reserves. Just to reach the global average of 10.5%, China would have to grow its gold hoard to nearly 7,000 t.
     
    This announcement was a huge coup for the Gold Anti-Trust Action Committee (GATA), which has reported since 2003 that China was surreptitiously buying large tranches of gold. Contrary to the official communication, GATA’s intelligence indicates that China’s purchases were made on the open market through intermediaries in New Zealand and Australia. Ellison Chu, director of precious metals at Standard Bank in Hong Kong, backs the GATA theory that
     
    China has obtained foreign gold, stating that “China has been buying via government channels from South Africa, Russia and South America.” I would be astonished if China hadn’t purchased significantly more than 400 metric tons, and are continuing to carefully accumulate every time the price is slammed by the Gold Cartel.  Notably, none of the mainstream gold analysts accounted for this huge Chinese demand, nor have they acknowledged they were totally wrong about their supply numbers.
     
    Why Announce It?
    China reported six years of purchases at once, but why admit to buying gold at all? Officials stated they were contemplating raising the nation’s gold reserve to 4000 t back in November, which was clearly a hint as to their intentions. However, the Chinese were unchallenged about their static claim of 600 metric tons of gold, so there was no external impetus for them to disclose their activity in the metals market. In fact, the gold price rose sharply after  the announcement, making any purchases in May and June much more expensive. 
     
    I believe this gold news was a “shot across the bow” to warn about the irresponsible speed at which the Federal Reserve is debasing the U.S. dollar. While I believe that China holds much less of its reserves in dollars than is generally assumed, the Chinese government does not appreciate the attempt to dilute the nation’s Treasuries to near worthlessness. This dovetails with a suggestion by both China and India that the IMF sell its 3217 t of gold to help poor countries, implying they want to buy it all. Even if China purchased the whole lot, it would cost $103 billion at $1000 per ounce, just 5.25% of the country’s reported forex reserves. The IMF may finally carry out its threat to “sell” 403.3 metric tons of gold, but this is likely just accounting for the central bank reserves that have already been leased clandestinely and moved East into strong hands.
     
    China’s announcement is very bullish for gold, as it will encourage other central banks to buy in addition to those already doing so like Russia and Venezuela. With the legitimacy bestowed on gold as a monetary asset, and the justified criticism of Britain’s gold sales in 1999, many nations will follow Germany’s lead and refuse to sell more gold. Large private investors as well as other sovereign wealth funds are likely to copy the Chinese. In fact, trader John Paulson’s giant hedge fund is heavily weighted in GLD, which purports to hold real metal.  As fiat currency loses the confidence of the public, the “barbarous relic” will become the money of choice.
     
    Golden Yuan?
    China’s increase in gold reserves has another more profound implication that most commentators haven’t realized. It’s clear to me that China has plans to replace the U.S. dollar as a reserve currency with an at least partially gold-backed yuan. I have to give Jim Sinclair credit, as he predicted the Chinese were moving to a gold-backed yuan in 2002 as part of their “long term plan of Economic Ascendancy.” He deduced that the Chinese government allowed the private ownership and sale of gold by their citizens in order to re-monetize gold. China has experienced the folly of paper money many times before and – as Mr. Sinclair puts it – “their memory is culturally infinite.” The Chinese are aware they must step in to facilitate the move back to hard money.
      
    China is doing little to hide its intentions. Chinese officials have long complained about the excesses allowed by the dominance of the USD, and have recently called for the use of Special Drawing Rights to settle trades. In April, the Chinese completed currency swaps with many countries including Indonesia, Malaysia, South Korea and Argentina for use in bilateral trade, avoiding the USD. The BRIC countries (Brazil, Russia, India, and China) just discussed a “supranational” currency to reduce dependence on the U.S. dollar at a summit in June, and American officials were not permitted to attend.
    However, to have a true reserve currency, China would need to allow full convertibility. The Chinese government would need to loosen the trading band which manages the yuan-U.S. dollar exchange rate. The yuan has gained more than 6% since the dollar peg was eliminated in July 2005, but the currency is sure to rise sharply if permitted as it’s clearly undervalued. However, the central bank will be reluctant to let the currency float freely with exports down sharply.
     
    Nevertheless, China is now selling yuan-denominated bonds domestically as an intermediate step, and allowing some import and export contracts to be settled in yuan for the first time. To ease out of supporting the dollar by suppressing the yuan, China’s central bank is transitioning toward shorter term Treasuries to increase its flexibility. Zhang Guangping, vice head of the Shanghai branch of the China Banking Regulatory Commission, has mentioned plans to transform Shanghai into a financial center to rival New York and London by 2020. This would clearly require a floating currency with a much higher relative value.
     
    Of course, China will make sure the transition leaves it as the world leader for the 21st century. Even with only 5% of forex reserves in gold, the yuan would be a serious contender for reserve currency status. The European nations have sold much of their gold since 1990, and the U.S. hasn’t allowed an audit of its alleged 8,136 tons of metal since the 1950s. With the additional assets of commodity stockpiles and the dominant manufacturing economy, China is going for all the marbles. History has shown that the dominant country has the dominant currency, from the Romans through the British Empire.
     
    Paper currencies are backed by faith and confidence in the nations that issue them. As the Federal Reserve prints the dollar to worthlessness with its “quantitative easing,” governments will increasingly question why they hold paper promises that are rapidly losing their value. They will look for a market big enough to diversify into. With over 1.3 billion potential consumers, China is certainly large enough. While I believe many countries will follow the Chinese lead and will secure strategic commodities like oil and copper, it would make sense to acquire the yuan if this was a viable option. For many nations across the globe, China is their largest trading partner. It’s inconvenient and adds expense to acquire USD when not even purchasing goods from America.
     
    Once the yuan has gained the status of pre-eminent global currency, China will have many advantages currently enjoyed by the U.S. dollar. Even when not conducting business with China, countries will use yuan. The Arab states will accept yuan in exchange for oil, and demand for this essential fuel will keep the currency strong. Commodities like wheat will be priced in yuan per kilo, not dollars per bushel. Once China improves the transparency and governance of its banking centers, capital will migrate from the West to the East. Nations will accumulate the Chinese equivalent of U.S. Treasuries.
     

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July 11, 2009 Posted by | Economics, GeoPolitics | , , , , , , , , | 6 Comments

Ron Paul On Federal Reserve Audit: We Will Not Be Stopped !

  • The battle to audit and shut down the FedRes is heating up. This is not going to be an easy fight. Abraham Lincoln, John F Kennedy and possibly even Ronald Reagan took on the FedRes. And they lost. All the plans for Congress to take back the right to print fiat money were all reversed.
       
  • Paul J Watson reports :
      
    Appearing on Fox News’ Freedom Watch with Judge Napolitano Paul referred to Senate authorities blocking Jim DeMint’s attempt to attach the legislation, which already has 250 co-sponsors in the House, as a provision to a spending bill as a “facade”.
     
    The amendment was blocked by Senate authorities on Monday after they claimed that it violated rules for provisions attached to spending bills. “Technicalities are always ignored for things they want – this means they don’t want it and this is their organized effort now to stop us, but we’re not going to be stopped, it’s just going to energize everybody at the grass roots,” said the Congressman.
     
    Paul said that it made no sense to give the Fed more power when they had already created the bubble that led to the economic collapse in the first place. The Obama administration’s new regulatory reform plan, which will officially hand the Federal Reserve complete dictatorial control over the U.S. economy, will give the
    Fed the authority to “regulate” and shut down any company whose activity it believes could threaten the economy and the markets.
      
    Asked what the powers that be were afraid of should the Fed be audited, Paul listed a number of issues that would be brought to light with increased transparency.
     
    “I think the biggest thing is the cronyism, who got the benefits, who really got some of these Federal Reserve funds as well as TARP funds, and I don’t think they want people to know about it,” said Paul, adding, “I’d like to know what they’re doing internationally, what kind of agreements they have with international banks, with other governments, and also what they do in the gold market – how they manipulate the value of the dollar by manipulating gold prices.”
     
    As we have previously highlighted, the
    Fed has refused to disclose where trillions in bailout funds have gone despite a lawsuit filed by Bloomberg.
     
    Paul explained that nobody knows exactly what would be uncovered but that was the whole point of having an audit in the first place. The Congressman concluded that the Washington elite would do everything in their power to dig their heels in and prevent the bill from passing, because it represents the first major step in abolishing the Federal Reserve altogether.
     
    “When we discover what’s really going on, I think the American people are going to demand the next step, they’re going to demand honest money – it’s happened many times in history,” added Paul.

     
  • The FedRes is not taking things lying down. Financial Times reports
     
    Fed warns on Congressional scrutiny
    The Federal Reserve warned on Thursday that a growing congressional threat to curtail its independence would destabilise markets and raise the cost of servicing US debt for “current and future generations”.
     
    Ron Paul, the Texas Republican, has gathered the support of a majority of the House of Representatives for a bill that would audit the Fed’s monetary policy decisions. He told a Congressional hearing he wanted the power to prevent the Fed being “secret and clandestine and serving special interests”.
      
    The Fed is struggling to face down a political backlash from different parts of Congress amid scepticism over its policies designed to
    restart the flow of credit and the award of new powers to curb systemic risks.
     
    Donald Kohn, vice-chairman of the Fed, argued at the House financial services subcommittee hearing that any sense of political interference would negatively affect markets. “Any substantial erosion of the Federal Reserve’s monetary independence likely would lead to higher long-term interest rates as investors begin to fear future inflation,” he said.
     
    Not only did Mr Kohn argue that the Fed should be given the power to regulate large systemically significant companies, but he argued against giving up responsibility for consumer protection, asking Congress to overturn the Obama administration’s proposal to create a new
    Consumer Financial Protection Agency.
     
    ”I would hope that the Congress might think about whether there are ways of strengthening the Federal Reserve’s commitment to consumer regulation as an alternative to creating a new regulator,” he said.
     
    As US authorities have considered how to reform the country’s regulatory regime in the wake of the current economic crisis, the Fed has been drawn into an argument with other regulators over who oversees the US’s largest financial institutions.
     
    The conflict appeared to end with the
    Obama administration giving power over systemically significant insitutions to the Fed, with additional oversight from a council of regulators including the Federal Deposit Insurance Corporation.
     
    But critics in Congress have not given up an attempt to push all or more of the power to the council, taking it away from the Fed. The hearing on Thursday heard support for that view. Mr Paul’s audit bill now has more than 250 co-sponsors.
     
  • See also :
     
    The Great Bank Robbery: How the Federal Reserve is Destroying America!
    Banksters’ Takeover of America Almost Complete!
    Ron Paul: The Obama Administration Wants To Give More Power To The Federal Reserve, The Institution That Caused Our Problems !
    Obama’s “Financial Regulatory Reform Plan” is Banksters Consolidating Their Power!
    The Federal Reserve: Secretive And Incompetent Organization ! The Creature From Jekyll Island.
    History of Money & Fractional Reserve Banking System
    How International Bankers Gained Control of America!
    Federal Reserve is a Private Company. 
    Ron Paul – Federal Reserve is the Culprit!

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July 11, 2009 Posted by | Economics | | 5 Comments

Japan’s Economy Continues to Collapse, No End to the Depression !

Japan_Machiner_Orders
  • Is the global economy on the road to recovery? I don’t think so! The only country that seems to be doing reasonably ok is China. And this is largely because of their high savings rate and US$565B stimulus plan. There seems to be some indication that China may be scaling back on their stimulus for fear of creating a major economic bubble.
     
  • Japan, the 2nd largest economy in the world is no where near recovery. Adrian Ash comments:
      
    Japanese machine orders just sank to a 22-year low…
    IF WE ARE SLIPPING into a Japan-style depression, as signaled perhaps by the swollen demand (and supply) for government debt worldwide, then recovery might take longer than almost anyone guesses. Twenty years could be too soon, in fact. At least on the Japanese model.
     
    “Clearly, the Japanese economy is not performing as many expect it to,” reports the ever-invaluable
    Japan Economy News.
     
    No fooling. Rising 54% to new monthly highs from the first-quarter of 2002 to the start of 2008 (and spiking as the US Dollar collapsed together with Bear Stearns that March), the Yen-value of Japanese machine orders has sunk back to the level of 22 years ago.
       
    That was prior to the top of Tokyo’s real-estate and equity bubbles in 1989 – a whole heap of going nowhere that says over-capacity is baked in the crust yet again.
     
    “The Cabinet Office announced that core machinery orders in Japan fell 3.0% in May to ¥668.2 billion [$7.2bn],” Ken Worsley goes on, citing the data with orders in more volatile sectors stripped out. “Although this is less than the 5.8% drop seen in April, it still means that machinery orders have fallen to a new all-time low. May was the third month in a row that core machinery orders have fallen.”
     
    Capital spending in the iron & steel sector fell 46% from May ’08. Transport orders fell 50% on a year earlier. Okay, you can blame it on Lehmans failing last autumn if you must. Everyone else will, even if global demand and output had clearly turned down long before then. But the idea that depleted stockpiles of consumer and industry goods will at some point spark a self-inspired rebound is just the kind of “How bad can it get?” hopefulness Japan repeatedly poked in the eye over its first decade of post-bubble slump.
     
    Now “More and more Japanese firms are going bankrupt,” Worsley continues, noting how Tokyo Shoko Research said June saw 1,422 firms with debts above ¥10 million ($100,000) go under – the worst June for bankruptcies since 2002, back when the threat of US deflation first led the Fed to follow Japan towards near-zero interest rates. But cheer up – that all worked out fine. I mean, how bad can it get?

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July 11, 2009 Posted by | Economics | , , , , | Comments Off on Japan’s Economy Continues to Collapse, No End to the Depression !

Medvedev Unveils “World Currency” Coin At G8

  • The movement to bust the USD is accelerating! Make no mistake, major countries are taking steps behind the scenes to end the USD hegemony. The BRIC countries are leading the assault. France seems to be switching sides or are they just role playing for the Illuminati masters?
     
  • The Illuminati elite engineered this crisis to move the world to their pre-planned: One World Currency. I have no doubts the USD will be greatly debased soon. And the world will be clamoring for an alternative: a One World Currency. Both the IMF and World Bank are being positioned as the global central bank that will regulate all nations money supply. The private BIS (Bank of International Settlement) is probably the back up.
     
  • Paul J Watson reports :
      
    In a highly symbolic moment at the G8 summit in Italy today, Russian President Dmitry Medvedev unveiled to reporters a coin representing a “united future world currency”.
     
    “We are discussing both the use of other national currencies, including the ruble, as a reserve currency, as well as supranational currencies,” the Russian leader said at a news conference.
     
    However, those who have downplayed the formulation of a world currency by dismissing it as merely a progression of SDR’s (Special Drawing Rights) and not something that would physically be used by citizens in a system of world government, were contradicted when Medvedev clearly outlined that the new currency would be “used for payment” by citizens as a “united future world currency”.
     
    “This is a symbol of our unity and our desire to settle such issues jointly,” Medvedev said. “Here it is,” Medvedev told reporters today in L’Aquila, Italy, after a summit of the Group of Eight nations. “You can see it and touch it,”
    reports Bloomberg.
     
    The question of a supranational currency “concerns everyone now, even the mints,” Medvedev said. The test coin “means they’re getting ready. I think it’s a good sign that we understand how interdependent we are.”
     
    Press images released to the Yahoo photo wire did not show any close up shots of the coin and little was known about it, except that it had been minted in Belgium and bears the words “unity in diversity”. An
    RIA Novosti report noted that the coin represented an example of a “possible global currency”.
     
    China and Russia have repeatedly called for a new global currency to replace the dollar.
    When confronted about plans to supplant the dollar with a new global currency, both Federal Reserve chairman Ben Bernanke and Treasury Secretary Timothy Geithner denied that such an agenda existed.
     
    However, just days after he told a Congressional hearing that there were no plans to move towards a global currency, Geithner sought to please the elitist CFR by assuring them that he was
    “open” to the notion of a new global currency system.
     
    The scandal-ridden and highly secretive
    Bank For International Settlements, considered to be the world’s top central banking power hub, released a policy paper in 2006 that called for the end of national currencies in favor of a global model of currency formats.
     
    The global currency would be a key central plank of a future system of world government. Earlier this week, Pope
    Benedict called for a “world political authority” to manage the global economy.

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July 11, 2009 Posted by | Economics | , , , , , | 2 Comments