Tuesday, November 29, 2011

Currency Wars: The ZIOCONNED Anglo-American Century and Why the Financial Engineers Hate Gold and Silver....

Currency Wars: The ZIOCONNED Anglo-American Century and Why the Financial Engineers Hate Gold and Silver....LOL

"Every nation ridicules other nations, and all are right."

Arthur Schopenhauer

'Nominal GDP targeting' is a way of raising the Fed's inflation target without admitting to it explicitly.

Nominal GDP means that one can meet their growth target simply by inflating the money supply to make up the difference between 'real growth' and 'headline growth.'

NGDP targeting is so obvious and clumsy that I doubt that the Fed will try and hide their future monetization of the debt under such a small fig leaf, as Jim Rickards suggests. I think the monetization is already occurring in the Eurodollar markets, and an ongoing stealth bailout of European debt, in order to save the big money center banks at home.

And this is why the Fed stopped reporting on Eurodollars, as a component of M3. It was to pave the way for the monetary equivalent of a financial neo-con Marshall Plan, to addict European governance to the US dollar and pave the way for a stronger position for the dollar as a one world currency.

That dominance 'could' come in the form of the SDR for global trade if the composition of the SDR contains a significant dollar component. Here is a prior blog entry
here that explains the struggle for the SDR that is now occurring. Here is an overview of what I call the Currency Wars.

A slightly different plan has been underway for Asia, whose economies have become addicted to export production for US dollar paper, which makes up a huge portion of their reserves and financial system.

At some point those Eurodollars may come home, if Europe finds a way out of its dilemma caused in part by the US banks and hedge funds, and of course Europe's own political weakness and greed. And the Fed is confident they have a way to stem that tide of dollars 'back in the system.' But they do not expect this to happen, because the ratings agencies and the funds have the power to submit any government to a relentless credit assault.

As I have suggested in the past, the model has been to bring the system to a crisis, and then to have the bankers make an 11th hour 'offer which they cannot refuse' to the people of the nation, as they did in the adoption of TARP in the US. 'Adopt our plan, or suffer the consequences.' And I believe that the Anglo-American banking cartel will make this same play again, but this time with Europe and the world.

A sticking point in the US financiers plan is the precious metals, gold and silver. It is a pivotal point of control that will become much more prominent in the future. China and Russia will play that card with some of their BRIC allies. But in the short term the Anglo-Americans are solidifying their power in the oil rich Middle East, since like gold and silver, oil is a powerful piece in this global chess game.

In the meantime, here is an exposition of 'Nominal GDP targeting' so you can become familiar with it......

After the bell, Fitch reiterated the US AAA credit rating but changed the outlook from stable to negative.

"The Maastricht treaty set a limit of 60% for Government debt as a Percentage of GDP. As of May, 2011 only 4 of the 17 countries in the Euro-zone are below this requirement. The worst violators of the debt limit requirements are probably obvious: Greece at 157.7%, Italy at 120.3%, Ireland at 112%, Portugal at 101.7%, and Belgium at 97%. (By the way, Belgium debt was downgraded on Friday following downgrades of Portugal and Hungary.)

But readers will probably be surprised by the next two countries which are currently above the Maastricht limit: France currently has 84.7% debt to GDP and Germany is close behind with 82.4%. Both of the two 'fiscal leaders' of Europe have a worse debt to GDP than Spain which is three places better than Germany at 68.1%!

The only countries which currently adhere to the Maastrict treaty limit for debt to GDP are Finland, Slovakia, Slovenia, and Luxembourg, certainly not what most investors would consider the leaders in Europe! The average Euro-zone debt limit as of last May is 87.7%, over 25 percentage points above the required limit. I have gone on a bit too long about this, but the slide really brings home the fact that the treaties of the EU don't need to be tightened, but instead the adherence to these treaties need to be strengthened. Leaders can talk about new requirements all they want, but what good is this talk if no-one is going to adhere to these new requirements anyway?"

Chris Gaffney, The Daily Pfennig, 28 Nov 2011

Gold and silver enjoyed a post-option expiration bounce back to trend.

Markets overall remain headline driven.

"Every nation ridicules other nations, and all are right."

Arthur Schopenhauer

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