Learn the inside story of how the Greatest Financial Crisis in US history developed. How did the Financial Crisis Really unfold and for what Reasons? Who Benefited and who stands to lose. What can we do and will the American People finally Unite
D. Stewart Armstrong
Seacoast Consulting United We Will Stand
January 20, 2010
Ladies and Gentlemen:
This article is about offering you quality sources of coherent information about gold and gold shares. The writers and other resources I am recommending are at the very end of the piece. I am setting the stage for why you might consider supporting these people who truly understand gold and its relationship to the entire financial/geo-political /socio-economic environment. Feel free to skip to the final page as you will miss nothing you don’t already know.
This quality information from these writers is “The Gift” and they will assist you in understanding why gold has been the financial “king of the hill” for 5000 years. There is a reason why the status quo, (the powerzdatB), fight gold tooth and nail every penny of the way on its ascension to its rightful thrown. Silver is its Queen. The Republic was betrayed in 1913—under Wilson; and the battle was lost in 1971—under Nixon, but of course.
There is a logical reason there are sneak attacks on gold in the middle of the night when no one is paying attention, or on weekends when no one is watching and there are reasons gold is called a “political metal”. Most investments are made to increase ones financial circumstance —not to deliberately lose money (in order to debilitate a commodity). That doesn’t even make sense now, does it? And yet this exercise can be viewed on a regular basis if one knows where and how to look.
Some, not all of the people writing about gold, understand how it is connected to all the important financial issues of the day.
The Big Picture and the Wizards of Ounces (Oz)
All investors should understand the various components of The Big Picture of which gold and the PM complex are an integral part. There are a group of sleazy men who have their own big picture which is diabolically opposed to the one that 90% of Americans desire.
These men sit behind a veiled curtain and pull metaphorical levers of power. They want all of the money and all of the power.
These men are self appointed by an illegal institution which is diametrically opposed to the Constitution of the United States of America. This institution is called the Federal Reserve and it is neither Federal nor is it a reserve. It is simply the biggest fraud cum Ponzi scheme ever perpetrated upon any society in the history of mankind.
That it just so happened to be perpetrated upon the citizens of the one country whose sole objective was to eliminate such inequities and imbalances in its Republic after affirming that all men were created equal, and whose Constitution specifically spoke out against any possibilities of such an oppressive organization ever existing, is the irony of all ironies.
Audit the Federal Reserve
If there is nothing to hide, then prove us to be lunatics by simply allowing a forensic audit on the Federal Reserve. It is the most important action since the creation of this organization in 1913. Then, allow a forensic audit on Fort Knox. Finally, we need to repeal the Patriot Act and all subsequent versions of this violation of the rights of the American People.
So folks, if we want our country returned to us, we are going to have to be a David to their Goliath. It can be done. United We Will Stand and United we Will Win! It is but another irony that we will win something we should never have had to fight for in the first place. First step-get off the couch—second step—buy a ROLL of stamps.
We must understand this puzzle and what it means to each of us on a personal level. We must understand all parts of it and then we must stand united against the continuance of such an egregious fraud against each and every American.
My journey into economics began in 1956 when I was a sophomore at Harvard. A classmate was arguing with me that the Federal Government did not have to balance the budget. He was sure of this because his professor had told him so.
My thinking was different. “If the Harvard Department of economics did not believe that we had to balance the budget, then they must be a bunch of idiots. I have nothing to learn from such people. I will learn my economics when I’m out of here Good bye John Harvard.”
Fourteen years later, in 1970, I knew that the price of gold, then $35, had to go up. After all, pretty much every good in the economic universe had tripled in price between 1935 and 1970. By that time, I had learned about Adam Smith and the law of supply and demand. The decision by the U.S. Government to suppress the price of gold and keep it at $35 (along with its allies in the London Gold Pool) was the height of foolishness. Prices are determined by supply and demand. An important factor in the demand for all goods is the supply of money. And the supply of money had been increasing dramatically over the past 35 years. To anyone who understood the political situation at that time (and knew that the printing of money was going to continue, the conclusion was simple. All prices, most especially the price of gold (which had lagged most other goods), had to go up.
The conclusion was simple, but few others understood it. Henry Reuss, at that time the chairman of the House Banking Committee, announced that the price of gold would fall to something on the order of $6 or $8 per ounce. Actually, gold briefly dipped a few cents below $35 in 1970, and then it was off to the races.
The puzzling thing was that, as gold climbed above $800/oz. (in early 1980), the entire official economic community refused to admit that it had happened. It was one thing to fail to predict the rise in gold in advance. That merely shows one to be an incompetent economist. But these people failed to comprehend (or admit) the rise in gold AFTER IT HAD HAPPENED. This was no longer just a matter of being stupid. It was a matter of being so incredibly stupid that there is no word in the English language (or any other language) to describe it.
Gradually I realized what had happened. Everybody in economics who had some kind of a title was a blithering idiot. None of them had any knowledge at all. Harvard had defrauded me when it told me that its professors were economists, and this same fraud was being perpetrated over the entire world on a much larger scale.
Gradually I was able to piece together what had happened. When FDR took office in 1933, he rammed a bill through Congress (in one day) taking the country off the gold standard and giving the commercial bankers the privilege to create money. They still have that privilege today.
I lifted this off of www.kitco.com. James Turk is the gentlemen’s gentlemen of the gold community, respected by all. Kitco is one of the largest gold sites on the web.
We’ve had discussions about inflation vs deflation, and everything in between. Mr. Turk is brilliant and has availed himself of several excellent quotes–please pay special attention to the final two paragraphs of this piece.
Socialism has come to mean many different things to many people, but regardless how it is defined, in the months immediately ahead it will be put to a rigorous test. The test will be visible to everyone as countries around the globe run out of money and confront overwhelming debts that cannot be repaid as well as other wide-ranging financial promises that can no longer be met. In short, the ideological bankruptcy of socialism will be laid bare by government insolvency.
It had to come sooner or later. The reasons are not hard to understand.
The ideological bankruptcy is neatly captured by British author and advocate for individual rights, Cecil Palmer: “Socialism is workable only in heaven where it isn’t needed, and in hell where they’ve got it”. And government insolvency is explained by famed economist Frederic Bastiat, who made this levelheaded observation nearly 150 years ago about the nascent modern socialism then emerging. “The State is that great fiction by which everyone tries to live at the expense of everyone else.” More recently, Margaret Thatcher, being a sensible politician, put it pragmatically: “The problem with socialism is that you eventually run out of other people’s money.”
Take Greece for example. This past week yields on its 10-year bonds surged in the wake of downgrades by the bond rating agencies, which finally recognized that Greece does not have the financial resources needed to repay its debts, which now stand near junk levels. Not far behind are Latvia, Spain, Ireland, the United Kingdom and almost every other country in Europe, even though they may still flog paper rated as “investment grade.” The reality is that the rating agencies just have not yet come to grips with the breadth and depth of widespread government insolvency, or have willingly turned a blind-eye to it. And don’t forget Iceland which of course has already collapsed.
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