Socio-Economics History Blog

Socio-Economics & History Commentary

Is the Time Ripe for a New Global Reserve Currency?

RMB_world_currency_billboard China

  • Is the Time Ripe for a New Global Reserve Currency?
    by http://www.financialsense.com/  
    China’s push for the adoption of a super-sovereign reserve currency points to a possible larger role for IMF’s Special Drawing Rights (SDR).

    The current international monetary system is a historical exception. It has no anchor, such as the silver standard, the gold standard, or the Bretton Woods agreement.

    Instead, a floating currency – the US dollar – accounts for the greatest share of foreign exchange reserves, amounting to more than $3.8 trillion, or 64% of allocated reserves (see chart below). Significant currency debasement by the Fed, and increasing prominence of other large economies, such as China, has raised questions in recent years about the justification of King Dollar’s rule.

    Not All Sunshine and Roses
    Being the supplier of the global reserve currency is not necessarily an enviable position. There is a fundamental tension between short-term national and long-term global monetary policy, known as the Triffin Dilemma. This paradox arises when the United States runs a trade deficit in order to provide the extra dollar-denominated liquidity demanded by foreign states and entities, which in turn results in higher consumption for American consumers.

    In the long term, however, persistent trade deficits result in declining value and credibility of the reserve currency, making it less attractive as a store of value.

    read more.

Reminbi-Chinese_Yuan_CNY_rise-payment-currency

http://www.lbma.org.uk/assets/events/BMF2015/yao1.pdf

Click on image to read the pdf file.

http://www.telegraph.co.uk/finance/currency/6152204/UN-wants-new-global-currency-to-replace-dollar.html

Click on image for article.

http://usa.chinadaily.com.cn/world/2014-01/29/content_17264069.htm

Click on image for article.

http://www.cbsnews.com/news/united-nations-proposes-new-global-currency/

Click on image for article.

http://www.globalresearch.ca/the-financial-new-world-order-towards-a-global-currency-and-world-government

Click on image for article.

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July 14, 2015 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

Are Big Banks Using Derivatives To Suppress Bullion Prices? — Paul Craig Roberts and Dave Kranzler

FedRes_banksters_looting_cartoon_Amateurs

  • Are Big Banks Using Derivatives To Suppress Bullion Prices? — Paul Craig Roberts and Dave Kranzler
    by Paul Craig Roberts and Dave Kranzler, http://www.paulcraigroberts.org/  
    We have explained on a number of occasions how the Federal Reserve’s agents, the bullion banks (principally JPMorganChase, HSBC, and Scotia) sell uncovered shorts (“naked shorts”) on the Comex (gold futures market) in order to drive down an otherwise rising price of gold. By dumping so many uncovered short contracts into the futures market, an artificial increase in “paper gold” is created, and this increase in supply drives down the price.

    This manipulation works because the hedge funds, the main purchasers of the short contracts, do not intend to take delivery of the gold represented by the contracts, settling instead in cash. This means that the banks who sold the uncovered contracts are never at risk from their inability to cover contracts in gold. At any given time, the amount of gold represented by the paper gold contracts (“open interest’) can exceed the actual amount of physical gold available for delivery, a situation that does not occur in other futures markets.

    In other words, the gold and silver futures markets are not a place where people buy and sell gold and silver. These markets are places where people speculate on price direction and where hedge funds use gold futures to hedge other bets according to the various mathematical formulas that they use. The fact that bullion prices are determined in this paper, speculative market, and not in real physical markets where people sell and acquire physical bullion, is the reason the bullion banks can drive down the price of gold and silver even though the demand for the physical metal is rising.

    For example last Tuesday the US Mint announced that it was sold out of the American Eagle one ounce silver coin. It is a contradiction of the law of supply and demand that demand is high, supply is low, and the price is falling. Such an economic anomaly can only be explained by manipulation of prices in a market where supply can be created by printing paper contracts.

    Obviously fraud and price manipulation are at work, but no heads roll. The Federal Reserve and US Treasury support this fraud and manipulation, because the suppression of precious metal prices protects the value and status of the US dollar as the world’s reserve currency and prevents gold and silver from fulfilling their role as the transmission mechanism that warns of developing financial and economic troubles. The suppression of the rising gold price suppresses the warning signal and permits the continuation of financial market bubbles and Washington’s ability to impose sanctions on other world powers that are disadvantaged by not being a reserve currency.

    It has come to our attention that over-the-counter (OTC) derivatives also play a role in price suppression and simultaneously serve to provide long positions for the bullion banks that disguise their manipulation of prices in the futures market.

    read more.

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July 10, 2015 Posted by | Economics | , , , , , , , , | Leave a comment

Physical Silver Shortage EXPLODES! “We Are Looking at the Potential of 2008 Style PM Premiums”

Sold-Out-Silver_Coins

  • Physical Silver Shortage EXPLODES! “We Are Looking at the Potential of 2008 Style PM Premiums”
    by http://www.silverdoctors.com/  
    Everything has changed in the past 48 hours…
    Tuesday morning we warned that physical shortages and BIG jumps in physical silver premiums were imminent after 90% silver premiums had doubled in the past 48 hours.


    Below is an update of the physical precious metals markets over the past 48 hours:

    90% premiums skyrocketed over the weekend after the Greek Referendum vote with availability nearly nill- wholesalers/distributors are now offering 90% silver in volume at up to $3 over spot, and supplies are rapidly vanishing.

    Just before noon Tuesday, the US Mint advised Authorized Primary Dealers it had SOLD OUT of all Silver Eagle coins, and would be taking no further orders until approximately August, at which point it would begin rationing coins to Authorized Dealers.

    Silver Eagle premiums instantly skyrocketed across the market, with premiums rising as high as $3.25 over spot/oz WHOLESALE / IN BULK

    Between 4pm EST and 5pm EST on Tuesday 7/7, one of the largest Authorized Dealers sold through 250,000 Silver Eagles and raised premiums .50/oz further!

    SDBullion broke all-time sales records Tuesday for order volume as well as total ounces sold- with demand FAR OUTPACING the Nov 5th 2014 bottom for gold and silver which had previously held both records.

    Later in the afternoon, premiums began surging on Silver Maples and silver rounds and bars, and Authorized Dealers are advising that a production and premium hike announcement is expected imminently from the Royal Canadian Mint.

    Wholesale premiums on many silver rounds and 10 and 100 oz bars HAVE DOUBLED in 48 hours.

    SDBullion received a wholesale quote from one of the largest Authorized Dealers Wednesday for nearly $5/oz over spot for 5,000 oz of current year America The Beautiful Coins- a premium spike of over 100% in less than 24 hours!

    Tuesday, the Sunshine Mint rounds and bars went from immediately available to production completely sold through August 13th in under 4 hours!

    In many cases, physical silver is now MORE EXPENSIVE to acquire (on both a wholesale as well as retail level) after a $1/oz paper smash than it was prior to this week’s trip down the proverbial mine-shaft!

    Wednesday the shortage began to spread to GOLD products.

    read more.
     

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July 9, 2015 Posted by | Economics | , | Leave a comment

Massive Contagion Will Lead To A Worldwide Financial Catastrophe – Will A Desperate U.S. Start World War III?

russia-us-nuclear_missile_War

  • Massive Contagion Will Lead To A Worldwide Financial Catastrophe – Will A Desperate U.S. Start World War III?
    by http://www.kingworldnews.com
    As the world nervously waits to see what chaos will unfold on the heels of the historic Greek vote to reject more European austerity, the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News that we will see massive contagion that will lead to a worldwide financial catastrophe.

    Egon von Greyerz:
     “We are facing colossal problems in the world today.  The U.S. is bankrupt, with debts having increased each year since the early 1960s.  And in this century debts have gone up exponentially….


    Expect Massive Contagion That Will Lead To A Worldwide Financial Catastrophe
    So we are talking about a worldwide problem, not just a Greek problem.  The majority of the $100 trillion bond market is worthless, and of course a ticking time-bomb of over $1 quadrillion worth of derivatives is linked to that.  This means that, sadly, we are heading into a major contagion that will lead to financial catastrophe for the world.  This will also lead to an implosion of all bubble assets across the globe.  So to own physical gold and silver are absolutely essential to ensure against the coming wealth destruction.”


    read more.

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July 7, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , | Leave a comment

Citigroup Just Cornered The “Precious Metals” Derivatives Market

FedRes_banksters_looting_cartoon_Amateurs

  • Citigroup Just Cornered The “Precious Metals” Derivatives Market
    by Tyler Durden, http://www.zerohedge.com
    One week ago, when we scoured through the latest OCC quarterly derivative report (in which we find that the top FDIC insured 4 US banks continue to account for over 90%, or $185.5 trillion of all outstanding derivatives which as of March 31 amounted to $203 trillion; nothing new here), we found something fascinating: based on the OCC’s derivative update, JPM had literally cornered the commodity derivatives complex, when from “just” $226 billion in total Commodity exposure, JPM’s notional soared by 1,690% in one quarter to $4 trillion, or about 96% of total.

    However, another big question remains: just what is Citigroup – not, not JPMorgan – with the Precious Metals category. Here is the chart showing Citigroup’s Precious Metals (mostly silver now that gold is lumped in with FX), exposure over the past 4 years. Of note: the 1260% increase in Precious Metals derivative holdings in the past quarter, from just $3.9 billion to $53 billion!


    read more.

Illuminist_banksters_creating_money_out_of_nothing_lending_n_charging_interest

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July 6, 2015 Posted by | Economics | , , , , , , , , , | Leave a comment

New World Currency Backed By Gold Revealed

  • Published on Jul 3, 2015
    As many are increasingly coming to terms with the ‘obvious failure of fiat currency’, the inevitavble question arises “what next?” Earlier this year, we discussed the possibility of a Chinese- or Russian-currency backed by gold, amid the increasing calls (domestically and abroad) for an end to USD Reserve hegemony; but this weekend, as Bloomberg reports, Lord Meghnad Desai, chairman of The Official Monetary and Financial Institutions Forum, stated that IMF Special Drawing Rights (SDR) should contain some gold to help stabilize the currency.


    http://www.prisonplanet.com/gold-back…
    http://www.prisonplanet.com/this-octo…

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July 3, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Leave a comment

Bill Holter Warns “Greece is Going to Happen HERE!”

  • Bill Holter Warns “Greece is Going to Happen HERE!”
    by http://www.silverdoctors.com/  
    Bill Holter joins The Doc for an Exclusive Update on the Greek Crisis, and the Potential for a Full Derivatives CONTAGION, Discussing:

    * Greek problem is not $3 billion, its $3 TRILLION IN DERIVATIVES– Will ISDA Allow Default?
    * Greek default WAS NOT PRICED IN- Why a MASSIVE LIQUIDITY EVENT has been triggered!
    * End Game for Greek Depositors- Are the Depositor Haircuts and Bail-ins Imminent?
    * Bill Warns: Greece Is Going to Happen Here- The Credit System is Going to Collapse!

    * Gold Will Get Your Wealth into the Next System After a Reset Occurs
    * JPM Corners the Commodities Derivatives Market Adding $3 TRILLION 
    * COMEX Will Go Force Majeure Allowing JPM to Unwind Massive Short Position

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July 3, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Leave a comment

Dr. Jim Willie: King Dollar’s Reign of Terror Almost Over

  • Published on Jul 1, 2015
    topics covered are: 

    – Greek debt service and default 
    – the insanity of the continued situation gone amok without internal mechanisms
    – delusion and madness of crowds with self deceptions
    – numerous psychological devices used by people caught in the system
    – details of King Dollar reign of terror with all its abusive devices
    – USTreasury Bond worldwide dumping extravaganza
    – seizure of the bond market and extensions to European bonds
    – related damage to fixed income sectors
    – source of terrorism in USA and abroad for defending the Dollar Sphere
    – the USGovt Corp has become a criminal organization
    – exported terror by Langley groups
    – war zones of Cyprus, Libya, Egypt, Syria, Ukraine, Georgia with deceptions
    – the color revolutions and Arab Spring revolutions as Langley operations
    – lost concepts of capital formation and money itself
    – handouts for continued consumerism is not reform

    Jim Wilie website: http://www.goldenjackass.com
    “Guarantee Dollar Death Dynamics”
    http://news.goldseek.com/GoldenJackas…

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July 2, 2015 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

SoT #39 – Market Update: Is The Comex End-Game In Sight?

  • SoT #39 – Market Update: Is The Comex End-Game In Sight?
    by Shadow of Truth, The Daily Coin  
    The information in this report is take from sources believed to be reliable; however, the Commodity Exchange, Inc disclaims all liability whatsoever to its accuracy or completeness. This report is produced for information purposes only.  
    – Legal disclaimer at the bottom of the Comex daily gold and silver vault inventory reports


    The legal disclaimer showed up one day a couple years ago at the bottom of the Comex vault reports. Every gold and silver – especially silver – analyst on the internet discusses the state of condition of the Comex using these reports as if they are bona fide.

    Given the implications of the above legal disclaimer, this is quite disconcerting. Even gold/silver analysts who are critical of the rampant illegal manipulation of the gold and silver markets on the Comex take the data as reported as being legitimate.

    CLEARLY, that disclaimer tells us not to take the Comex data reports seriously.  In fact, it suggests the distinct possibility that the reports might not be accurate or complete.  Why? Because the reports largely come from the three primary market making banks on the Comex:  JP Morgan, Scotia and HSBC.

    The big banks have been successufully prosecuted and fined for fraud and criminal behavior in just about every business segment of their operations except their gold and silver trading. This includes criminal activity in other commodity markets. If these reports are in fact accurate and bona fide, it would be the ONLY business segment of any of these banks that is reported without any misrepresentation or outright fraud.  The probability of that being the case is 0% using a 100% confidence interval.   Sorry Ted.

    read more.

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June 30, 2015 Posted by | Economics | , , , , , , , , | Leave a comment

THE SILVER SQUEEZE: Comex is Losing Control

  • Published on Jun 25, 2015
    Dave Kranzler from Investment Research Dynamics.com is back to discuss the treachery of the United States Congress and Senate who have betrayed the American people once again by approving the fast tracking of the TPP, which Dave says is the death nail for the American middle class. We also cover the all-time high silver open interest on the Comex, the Cartel is piling on new paper shorts at record levels and Dave says, “This is potentially building to the mother of all short squeezes, and I think the fact that they keep piling on more and more naked short interest on the Comex tells us that they’re losing control of this.”

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June 27, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , | Leave a comment

James Turk: We Are In A Money Bubble Which Will Lead To A Fiat Money Collapse

We will all be trillionaires but can't afford breakfast !

We will all be trillionaires but can’t afford breakfast !

June 27, 2015 Posted by | Economics, Social Trends | , , , , , , , , , , , , | Leave a comment

Bo Polny: The Biblical 7 Year Cycle & THREE DIGIT SILVER in 2016

  • Published on Jun 18, 2015
    Silver & Gold analyst Bo Polny from Gold2020Forecast joins us to talk about the 252-year stock market cycle, which can be broken down into smaller 7-year cycles, all of which points to an epic collapse in 2016. Bo says, “The cycle IS the manipulation” of the markets that we so often talk about. 


    Bo’s unique approach to precious metals analysis is regularly shared at Silver Doctors and SGT report. In this stunning interview Bo says his research indicates that the current 7-year cycle is coming to an end in the very near future,, playing out in 2016. The result of the end of the current cycle will be a massive stock market crash and the reversal of gold and silver to much, much higher prices. In fact, Bo is the only pundit we know of who is specifically predicting three digit silver in 2016.

    Bo says, “And now the cycle is about to turn… the next massive or big up leg is now set to begin… before the month of June is over a new breakout will be apparent.”

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June 20, 2015 Posted by | Economics, GeoPolitics | , , , , , | Leave a comment

Secret War on Cash: “Discussions at Bilderberg Centered Around Capital Controls, Abolition of Cash”

  • Secret War on Cash: “Discussions at Bilderberg Centered Around Capital Controls, Abolition of Cash”
    by Mac Slavo, June 13th, 2015, SHTFplan.com  
    According to some, a very quiet stealth war on cash has begun. May your bank account, debit card and gold reserves be on guard…

    The world’s elite are meeting in secret this week at the Bilderberg meeting, set at a luxury resort in Telfs-Buchen, Austria. Investigative journalists have confirmed that the private discussions among top power brokers across the globe include arrangements to restrict currency and penalize – or ultimately even ban – cash.

    Read the attendees list
    … real power and wealth are running with the movers and shakers. With bankers, equity giants and financiers all present, the agenda is quite in line with recent reports, as SHTF has long reported.


    Expert Says “Banning Cash” The Only Solution to Negative Interest Market Problems
    Cash on Lockdown: Bankers “Want Badly to Charge YOU Interest for Depositing YOUR Funds”
    Banned: Chase Bank Says You Can No Longer Store Cash or Precious Metals In Your Safe Deposit Box

    Paul Joseph Watson of Infowars recently warned via video: (top of post). The initiation of an coup on cash is underway: 


    The powerful Bilderberg Group will discuss imposing more capital controls on average citizens while HSBC, whose Group Chairman will attend the conference, is set to pay more than $40 million dollars for illegal money laundering involving arms dealers and helping the wealthy avoid taxes.

    It’s very much a case of do as we say, not as we do.
    […]
    Ironic therefore it is that HSBC representatives will be party to discussions at Bilderberg centered around moving towards the abolition of cash and the imposition of capital controls on ordinary citizens in the name of stopping tax fraud and allowing more state control over people’s finances.

    During the conference, Bilderberg will set the consensus for green lighting economic restrictions under the justification of stopping financing for terror groups like ISIS. Bilderberg will also discuss new controls on the sale of precious metals throughout Europe.

    Numerous influential voices have recently called for eliminating physical currency altogether, giving central banks and governments the power to directly control your finances under the justification of preventing an economic collapse and bank runs.

    read more.
http://english.pravda.ru/news/business/19-05-2015/130638-cash-0/

Click on image for article.

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June 14, 2015 Posted by | Economics, EndTimes, GeoPolitics | , , , , , , , , , , , , , , , | 1 Comment

David Morgan: Panic Exit Out of Currencies & Into Gold & Silver

  • Western governments are implementing Bail-In for the TBTF banks. It means that savers are now unsecured creditors ie. you are just an investor taking risk by loaning money to the bank. When the banks go bust, they have the right to take your money. Western governments/banks are also implementing a tax on savings (negative interest rate is a tax on savings). Why would anyone continue putting their savings in a bank. Since you cannot withdraw cash (after it is banned) the logical move is to buy physical gold/silver to protect yourself.
  • David Morgan: Panic Exit Out of Currencies & Into Gold & Silver
    by Greg Hunter’s USAWatchdog.com 
    Finance and economic writer David Morgan thinks the global economy very likely could take a sudden turn for the worst.  Morgan says, “There is going to be a panic buy into the metals, and there is only so much to go around. . . . The way things have gone from the 2008 financial crisis until now have only gotten worse. . . . I don’t think we are going to have a hyperinflation, but what I do believe is there will be a panic exit out of currencies.  That event will cause people to run for the most trusted money that exists, and that is gold and silver.  The other thing is you cannot have currency anymore.  That is a double edged sword because if you can’t have currency anymore . . . people will think if I can’t have currency anymore, guess what I can have?  Gold and silver, and they can’t get around that. . . .People that can think will go to the money of all time, and that is gold and silver.”


    What could cause a sudden panic?  Morgan speculates, “One is some event in the bond market that people don’t see and most likely it is the U.S. bond market, but it could be in the Yen. . . .  Japan is so illiquid, and they have gone to basically the hyperinflation route that it is only a question of time and could start there.  It could start anywhere.  There is a bunch a kindling all over the bond markets, all over the debt markets all over the world, and one match could light it off.  I really don’t know where it is going to start, but I do know history teaches us that once the confidence is lost, you can’t get it.  That’s what this game is all about.”

    Earlier this year, Morgan said he thought there could be another economic meltdown this fall, and he’s not backing off.  Morgan explains, “Part of it is the seven year cycle in the stock market, and seasonality plays strongly in both the metals and stock market.  September/October is the time frame where you get a falloff.  The stock market is so overvalued it has no relationship with physical reality.  The physical economy does not match what stock prices are at all–not even close. . . . The mainstream media keeps saying things are good, and all people have to do is look out their window.  There is a trigger mechanism and it’s what I call financial survival instinct. . . . You cannot stop reality.  The reality is we are in a debt based economic system in a scenario that has never happened before. . . . When this thing busts, it will make the 1930’s look like a warm-up parade because it will not be centered in Europe and the United States.  It will be China.  It will be India. It will be Australia, Europe, the United States, Canada, Mexico and South America.  It is going to be everybody.”  Morgan goes on to point out, “It’s all about trust, and now these big banks don’t trust each other, and that was the same problem in 2008.  They did not want to accept each other’s paper because they didn’t trust it.”

    read more.

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June 4, 2015 Posted by | Economics, Social Trends | , , , , , , , , , , , , , , , , , | Comments Off on David Morgan: Panic Exit Out of Currencies & Into Gold & Silver

Jim Willie: QE is Back! $1 Trillion per Quarter. China’s Financial War on the U.S. …

  • Published on Jun 2, 2015
    IN PART 1:

    – The Federal Reserve is using Belgium, Luxembourg, Ireland, the Cayman Islands, and Switzerland to export over $1 trillion of QE per quarter ►2:16 
    – U.S. Treasury Bond market volume is dangerously low. What lies ahead for US Treasury Bonds? ►8:15 
    – China has taken control of the International Monetary Fund ►16:47 
    – The Eastern banking system will not accumulate U.S. Treasury Bonds anymore. Instead, they will convert U.S. Treasury Bonds into Gold bullion. Will the entire world follow suit? ►25:39 
    – In what way will Silver play a role in the new monetary system? ►35:10 

    IN PART 2:
    – The conversion of U.S. Treasury Bonds to Gold bullion by Eastern nations will be seen as a declaration of financial war. How can the U.S. government respond? ►0:00
    – Jim Willie’s two biggest disappointments about the big picture ►11:53 

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June 3, 2015 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , | Comments Off on Jim Willie: QE is Back! $1 Trillion per Quarter. China’s Financial War on the U.S. …

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