Hang On To Your Precious Metal

There are gold bugs who believe that gold always was and always will be money and not just a commodity. There are the gold rubs who deceive us to believe gold is simply a commodity, you can't eat it or use it and they preach that daily. Which do you believe?

Well, the Central Banks of the world in reality use it as money between themselves but tell us officially it is not. If it is not, then why did G20 ask the Germans to pledge their gold as a backstop to the European Financial Stability Fund? A commodity cannot perform this purpose. The Germans told them where to go.

As always, follow the money to find the truth. The present monetary system is decaying fast because the Fiat system has created sovereign debt that simply has to be inflated away as the only method of paying it off. Along with that goes any paper based wealth you may have accumulated. If this were a game of Monopoly, the Elites won, start a new game, where is that reset button anyway? Turns out it may well be in Europe after all.

If your investments are in paper, if you are quiet, you can hear them inflating away now. This will become a roar in the non too distant future as quantitative easing filters down into inflation. There is simply no alternative. Beware of coming manipulations and untruths concerning inflation and its reporting in the future. The market will tell the story. Food prices are up over 30% in the last year already. Oil is over $100 and climbing despite the economic downturn.

I do recognize that there is an intense movement worldwide to replace the US dollar as the worlds reserve currency.

The movement is coming from Asian, South American and now European sources. It is the European sources that actually pose the most promising and threatening to the US dollar as reserve currency. Europe is engaged in talks to introduce a two tiered Euro. Basically a Latin and Nordic Euro. ( http://www.gold-eagle.com/editorials_08/willie062410.html )

The new Nordic Euro will be backed, not by simply a promise to pay like Fiat currency, but by a mix of commodities. Gold, Silver, Industrial metal and Oil. Debates on the mix are presently underway.

The Russians, Germans, Nordic countries will exclude the PIIGS nations and they will be left to suffer with what may be termed the Latin Euro.

The Nordic Euro is being designed as a return to sound money and is a likely a co-candidate to usurp the US dollar as the global reserve currency. The Chinese openly are moving to bring the Yuan into play as a reserve currency. The result will probably be a combination of new currencies that collectively will signal the end of the Fiat US dollar as the worlds reserve currency. China and India have already installed vending machines that dispense gold. When the mid eastern oil producers require oil to be purchased with the nordic euro, it will have arrived.

Western Central Banks are struggling now to keep their gold price manipulations effective. Gold swaps between Central Banks are highly secretive and are designed to suppress the market price of gold. Paper Gold short sales have sold estimates of 100 times the amount of physical gold existing above ground.

It is rumoured that the US Fed gold swaps between Central Banks now include 22 carat gold bar coming from the Roosevelt gold confiscation of 1933. The gold in circulation as money at the time was confiscated and melted down. There are in fact gold quality swaps now being undertaken by Central Banks.

What this means is that the US Fed does not have enough 24 carat monetary gold in their vaults to achieve the swaps intended purpose of keeping the lid on the true value of gold. Or they don't want to use their remaining monetary gold. In either case the evidence shows that swaps, leverage and secretive operation is required to keep the investor from panicking at the realization that there is not enough physical to cover the paper. Paper gold only works as long as the investors accept certificates instead of bullion. And that the market price of gold is manipulated downward by the Central Banks.

The cat is out of the bag. Hugo Chavez wants his gold. It may not be there (New York, London) as it has been oversold, leased and swapped or what ever Central Bankers do with gold. The Central Banks have leased gold to achieve swaps and the IMF has allowed them to count the leased gold as "good as gold in their vaults". This is criminal, period. Chavez had better check the serial numbers of the bars, if he gets any.

The Central Bankers persist in manipulating the price of gold because they can. They have oversold gold, leased gold, leveraged gold and this is why they say it cannot ever be money. Because the truth would criminalize the bankers, not because there is not enough gold. There is enough gold but its price will be somewhat higher than it presently is.

Remember that quantities of gold held by sovereign states has not been accurately reported for over 30 years. We still use that 30 year old data. Recently Saudi Arabia, India, Brazil, China have all reported sovereign gold quantities they hold are substantially more than the 30 year old data suggests. Why are more countries nationalizing gold mining? No one knows the real quantities. A free market commodity does not act like this.

The present monetary system uses leverage, deceit, manipulation and yes even theft (QE1 and TARP) to keep the system going. The Occupy Wall Street movement proves even main street recognizes the problem and are getting fed up with the present system.

The US is presently in denial but it is increasingly becoming clear that alternative currencies are evolving that are not Fiat based. The longer the US fights against this evolution, the harder it will fall. If they really had the gold in Fort Knox or wherever, they wouldn't be in this situation. The game would have played out differently by now.

The people of Greece are developing integrated bartering systems now. People will adjust. It is time for the present monetary system to evolve and it will. The world recognizes the worlds present monetary system is corrupted, bankrupt and another system is already evolving. As it turns out, gold always was and always will be money. Same thing goes for silver.

For those who do not think there is enough gold around to act as money. You just keep thinking that while you read this. ( http://www.kitco.com/ind/willie/apr192011.html ) and then I will make you a bet that I will be able to buy more Nordic Euros with my gold than you can with your fiat dollar, what? Can't meet that bet?

Owning physical bullion means you won't play the bankers game. You are out of their control. The Bank owned vs privately owned gold is said to be approximately 50/50 now. Good thing it is and that JQ Public can still take possession of bullion in Canada. It is now being limited in Austria and other European countries. That is, you can only purchase a small quantity of bullion at the banks, it is limited. This is a recent (within a month) development and a situation unique to money, not a commodity.

I am a prepper and have food, supplies and retreats in place. I am not and never have been employed in the financial system. I invite civil dialogue on alternative economics as possible topics. I truly hope that I am wrong but I continue to plan for the worst and hope for the best.

Have faith in the people, people. Their Establishments are set to evolve.

To the gold rubs. Keep buying US Treasuries, it won't be anarchy

To the gold bugs, the door is creaking open on the flood gates, hang in a little longer