Tag Archives: Central bank

Jim Willie ~ Bank Run Happening in Bullion [Video]

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USAWatchdog.com

Jim Willie, Editor of The Hat Trick Letter, says the recent gold price take-down has caused, “A bank run in gold bullion banks.  It’s a vault run. . . . Wealthy investors are asking for their gold, and some are finding out it’s not there.”  Jim Willie, who holds a PhD in statistics, says things are getting worse.  Dr. Willie contends, “Back in 2011 and 2012, you had an important event every three of four months.  Now, it’s every two or three weeks. So, the mean time between failures is rapidly declining.”

Dr. Willie goes on to predict, “Before, they were talking about stress tests.  Now, they realize that all of them in the past were a fraud.  So, they are talking about ‘bail-ins’ because they are expecting failures.”  Dr. Willie contends, “It’s all coming to a climax where gold is going to be central with a gold-trade central bank and gold priced at $7,000 per ounce.”  Join Greg Hunter as he goes One-on-One with Jim Willie of GoldenJackass.com.

GE Christenson ~ Gold And What I Know for Certain

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Deviant Investor May 16 2013

What I Know for Certain

  • Death and taxes!
  • Fear and greed are powerful motivators.
  • Individuals, businesses, and governments do what they think is beneficial for them.
  • Businesses and governments protect their products and territory and resist competition and enemies.
  • Concentrated wealth creates power and corruption. The greater the concentration of wealth, the larger and more pervasive the power and corruption.
  • Gold and silver have been money for over 3,000 years.
  • Unbacked paper money systems have always failed.

What I Think is True

  • The basic product of a central bank is the unbacked paper currency it prints in ever-increasing quantities.
  • Central banks will fight all competitors to their currencies. The oldest competitor to unbacked paper currencies is gold, ancient money.
  • Politicians want to spend money and increase their power.
  • Bankers want to create money, lend it to governments, and thereby secure a permanent and increasing revenue stream.

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Bill Bonner ~ The Greatest Lie The FedRes Ever Told

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The Daily Bell May 7 2013

cartoon_fedres1

Public life bumbles along under a combination of false pretenses and self-imposed delusions.

At the start of last week, it was widely reported that US central bankers had gone as far as they were willing to go. There were voices in the Fed, said the news, urging caution. There would be no further monetary stimulus measures, said the commentators.

Investors grew cautious.

But by the end of the week, they were rolling the dice again. The Fed was working hard to fight the impression that it had either lost its nerve or recovered its senses. From The New York Times:

The Federal Reserve said Wednesday that its economic stimulus campaign would press forward at the same pace it has maintained since December, putting to rest for now any suggestion that it was leaning toward doing less.

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Michael Snyder ~ 11 Reasons Why The Federal Reserve Should Be Abolished

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The Economic Collapse May 6 2013

If the American people truly understood how the Federal Reserve system works and what it has done to us, they would be screaming for it to be abolished immediately.  It is a system that was designed by international bankers for the benefit of international bankers, and it is systematically impoverishing the American people.  The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years.  The Fed creates our “booms” and our “busts”, and they have done an absolutely miserable job of managing our economy.  But why do we need a bunch of unelected private bankers to manage our economy and print our money for us in the first place?  Wouldn’t our economy function much more efficiently if we allowed the free market to set interest rates?  And according to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is the one that is supposed to have the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.  So why is the Federal Reserve doing it?  Sadly, this is the way it works all over the globe today.  In fact, all 187 nations that belong to the IMF have a central bank.  But the truth is that there are much better alternatives.  We just need to get people educated.

The following are 11 reasons why the Federal Reserve should be abolished…

#1 The Greatest Period Of Economic Growth In The History Of The United States Happened When There Was No Central Bank

Did you know that the greatest period of economic growth in U.S. history was between the Civil War and 1913?  And guess what?  That was a period when there was no central bank in the United States at all.  The following is from Wikipedia…

The Gilded Age saw the greatest period of economic growth in American history. After the short-lived panic of 1873, the economy recovered with the advent of hard money policies and industrialization. From 1869 to 1879, the US economy grew at a rate of 6.8% for real GDP and 4.5% for real GDP per capita, despite the panic of 1873.  The economy repeated this period of growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while the GDP was also doubled.

So if our greatest period of economic prosperity was during a time when there was no Federal Reserve, then why shouldn’t we try such a system again?

#2 The Federal Reserve Is Systematically Destroying The Value Of The U.S. Dollar

The United States never had a persistent, ongoing problem with inflation until the Federal Reserve was created in 1913.

If you do not believe this, just check out the inflation chart in this article.

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FS Staff ~ Currency Wars Now Entering Their End Game

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Financial Sense April 11 2013 (Thanks, A.L.)

Grant Williams, author of the widely read newsletter Things That Make You Go Hmmm, discusses with Financial Sense Newshour the next logical step in the ongoing currency wars, the difficulties facing Japan with import prices, and, lastly, a few thoughts on gold repatriation by central banks. Here, we present a partial transcript of the interview.

The Bank Credit Analyst just reported that the Bank of Japan will expand its balance sheet by 40% to 220 trillion by the end of 2013 and the Fed will also be expanding its balance sheet by 35% this year. What are your thoughts on this?

“Japan has fired the bazooka. They’ve decided to go all in; put all their chips on the table after two decades of very poor economic performance…we’ve entered the realms of complete and utter monetary debauchery in Japan now. They are absolutely desperate to weaken their currency and they figure they can do this, generate inflation, and then unwind it painlessly if they do get there. Kyle Bass has spoken about this phenomenon at lengthover a number of years now and we really do seem to be moving towards this end-game where we’re in a currency war—there’s no two ways about it—and Japan has decided to arbitrarily try and weaken their currency. Now, they’re getting away with it; the Yen’s weakened against the dollar by some 27% in the last few months but, at some point, we’re going to start to see some retaliation. The Koreans particularly need to do that. Japan and Korea compete directly in two very key industries; both of which are automobiles and consumer electronics. If you look at the divergence of the Nikkei and the Kospi in Korea you’ll see that as Japan has weakened its currency and [the Nikkei] strengthened, Korea has gone exactly the other way and it’s too big a deal for this to happen in a vacuum. So, right now, Japan is getting away with this but I suspect in fairly short order once the initial impetus of this trade runs out we’re going to see some salvos fired back by the Koreans and the Chinese—things could get ugly quite quickly I think.”

Japan imports a lot of things—everything from energy to raw materials to food—so how can you continue to import all these items when your currency is being rapidly depreciated?

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Mike Adams ~ Bitcoin Crashes Over 50% Just One Day After Bold Public Prediction

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NaturalNews April 11 2013

In what has to be the most accurate currency crash prediction ever made, bitcoin crashed today from $266 to a low of $105 in a rapid “free fall” market crash pattern, erasing $1 billion in currency valuation in a matter of hours. I openly and publicly predicted all this would occur yesterday, in both a Natural News article as well as national radio via the Alex Jones Show broadcast aired on over 120 am stations.

But the real story here isn’t that I accurately made this dire prediction less than 24 hours before it took place; the real story is that this crash was almost certainly caused by a covert central bank “stress test” of the pliability of the bitcoin market. That’s all explained below. (This is a Natural News exclusive. Nobody else has realized this yet…)

Alternative media nails it

The alternative media has already begun to pick up on the story of the crash and the prediction I made just hours before it took place. Mac Slavo of SHTFplan.com writes:

Earlier this morning, Mike Adams of Natural News penned a warning to investors and those seeking privacy and wealth protection by utilizing the digitally encrypted BitCoin currency unit… A few hours after Adams’ dire warning was posted, the crash he warned about has become a reality.

This morning, without warning, and moments after Bitcoin achieved its all time highs, the currency collapsed over 50%, essentially vaporizing upwards of one billion dollars in value.

This is what panic selling looks like — in real time:

Anthony Gucciardi of StoryLeak.com writes:

Bitcoins have been surging beyond $200 amid mass speculation and bandwagon investment, but as of this writing bitcoin value has dropped from $266 to a low of $105 — a crash that was predicted verbatim just several hours before by Mike Adams of NaturalNews.

…as predicted by Mike Adams just several hours beforehand in his article “How the looming bitcoin crash will be exploited by globalists to outlaw decentralized crypto currencies”, bitcoin holders have entered a nightmare scenario sparked by what appears to be individuals purposefully attempting to devalue the currency…

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Michael Snyder ~ Why Are The Banksters Telling Us To Sell Our Gold When They Are Hoarding Gold Like Crazy?

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Economic Collapse blog April 10 2013

The big banks are breathlessly proclaiming that now is the time to sell your gold.  They are warning that we have now entered a “bear market” for gold and that the price of gold will continue to decline for the rest of the year.  So should we believe them?  Well, their warnings might be more credible if the central banks of the world were not hoarding gold like crazy.  During 2012, central bank gold buying was at the highest level that we have seen in almost 50 years.  Meanwhile, insider buying of gold stocks has now reached multi-year highs and the U.S. Mint cannot even keep up with the insatiable demand for silver eagle coins.  So what in the world is actually going on here?  Right now, the central banks of the world are indulging in a money printing binge that reminds many of what happened during the early days of the Weimar Republic.  When you flood the financial system with paper money, that is eventually going to cause the prices for hard assets to go up dramatically.  Could it be possible that the banksters are trying to drive down the price of both gold and silver so that they can gobble it up cheaply?  Do they want to be the ones sitting on all of the “real money” once the paper money bubble that we are living in finally bursts?

Over the past few weeks, nearly every major newspaper in the world has run at least one story telling people that it is time to sell their gold.  For example, the following is from a recent Wall Street Journal article entitled “Goldman Sachs Turns Bearish on Gold“…

Another longtime gold bull is turning tail.

Investment bank Goldman Sachs Group Inc. said Wednesday that gold’s prospects for the year have eroded, recommending investors close out long positions and initiate bearish bets, or shorts. The shift in outlook was the latest among banks and investors who have soured on gold as its dozen-year runup has been followed by a 12% decline in the last six months.

Goldman began the year predicting gold would decline in the second half of 2013, but said Wednesday the drop began earlier than expected and doesn’t appear likely to reverse. Like others, the firm said the usual catalysts that have been bullish for gold during its run are no longer working.

Major banks over in Europe are issuing similar warnings about the price of gold.  The following is from a Marketwatch article entitled “Sell gold, buy oil, Societe Generale analysts say“…

Analysts at Societe Generale predict in a note Thursday that gold prices will fall below $1,400 by the year’s end and continue heading south next year.

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Mike Adams ~ How The Looming Bitcoin Crash Will Be Exploited By Globalists To Outlaw Decentralized Crypto Currencies

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NaturalNews April 10 2013

There’s a bigger agenda happening with bitcoin that needs to be publicly stated, and this goes far beyond the issue of the financial harm that will be caused when the bitcoin bubble finally implodes.

Central banks hate bitcoin. They hate it because it doesn’t allow them to loot bank accounts (Cyprus) and control the movement of capital around the globe. Bitcoin, in fact, threatens the very foundation of monetary control that underlies all the corrupt governments of the world. As such, bitcoin is a huge threat to the status quo, making it an obvious target for the globalists to attempt to destroy.

Discrediting bitcoin isn’t enough, however. To really be effective, they need to make bitcoin illegal.

The plot to criminalize bitcoin

How do you criminalize bitcoin? The same way you get guns banned: Plan an attack, make sure lots of people get hurt, roll out all the victims in front of the cameras, then use the sob stories as moral justification to crack down with oppressive new laws.

This is the agenda being planned right now with bitcoin. The recipe works like this:

Step 1) Central banks buy up massive quantities of bitcoin currency, driving the prices into the stratosphere and encouraging millions of people around the world to jump on board the “get rich” bandwagon.

Step 2) Once bitcoin valuations reach a sufficient level of insanity, start a massive selloff by dumping the bitcoins you already bought onto the market, offering them for sale at any price (i.e. sell into falling prices, accelerating the loss in valuations).

Step 3) Watch panic take hold as the bitcoin crash accelerates, ending in a catastrophic wipeout of “valuation” of all bitcoins.

Step 4) Find “victims” of the bitcoin crash who can tell a good sob story for the mainstream media about how they invested little Johnny’s college money in bitcoin and lost it all. Roll them out on CNN and MSNBC where they cry on camera and talk about how they were ripped off by bitcoin and now they only trust the government from now on.

Step 5) Demonize bitcoin by characterizing it as a “libertarian pyramid scheme.” Lash out against both decentralized currencies and libertarians.

Step 6) Once the demonization gains traction, have traitors in the U.S. Congress announce a “Consumer Currency Protection Act” that outlaws non-central bank currencies such as bitcoin. It’s all “for your safety,” of course. Shut down all online bitcoin wallets and exchanges, calling them “criminal pyramid schemes” and arrest a few people using bitcoin to send a warning message to the rest.

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Mike Adams ~ The Bitcoin Bubble Explained: Understanding The Mathematics Of The Inevitable Bitcoin Crash

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NaturalNews April 10 2013

John, Mary and Kate are three “investors” who are buying bitcoins. Each time one of them buys a bitcoin, the value of bitcoins rises due to increased demand.

John got in early and bought 10 bitcoins for $1 each. So John’s investment is a total of $10.

Mary got in a month ago and bought 10 bitcoins for $20 each. So Mary’s total investment is $200.

Kate just bought her bitcoins, purchasing 10 of them for $200 each. So Mary’s total investment is $2,000.

The total amount of their combined purchases as $10 + $200 + $2000, or a grand total of $2210.

But the three of them, in total, THINK they have a grand total of $6,000 worth of bitcoins because ALL the bitcoins they purchased are now “valued” at the most recent purchase price of $200.

In other words:

John currently owns 10 bitcoins valued at $200 each, so John thinks he’s got “$2,000 worth of bitcoins” in his account.

Mary’s 10 bitcoins are also valued at $200 each, so Mary thinks she’s got “$2,000 worth of bitcoins.”

Kate’s bitcoins are also worth $200 each, so Kate has $2,000 worth of bitcoins.

In total, these three people believe they have $6,000 worth of bitcoins.

Yet, they only “invested” $2210.

Somehow, $3,790 in “value” was created out of nothing.

Where did this extra $3,790 come from?

Answer: It doesn’t exist. It is an illusion.

Bitcoins, like stocks, create the illusion of free wealth during a rise in valuation

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Paul Craig Roberts ~ The Assault On Gold

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Paul Craig Roberts April 4 2013

For Americans, financial and economic Armageddon might be close at hand. The evidence for this conclusion is the concerted effort by the Federal Reserve and its dependent financial institutions to scare people away from gold and silver by driving down their prices.

When gold prices hit $1,917.50 an ounce on August 23, 2011, a gain of more than $500 an ounce in less than 8 months, capping a rise over a decade from $272 at the end of December 2000, the Federal Reserve panicked. With the US dollar losing value so rapidly compared to the world standard for money, the Federal Reserve’s policy of printing $1 trillion annually in order to support the impaired balance sheets of banks and to finance the federal deficit was placed in danger. Who could believe the dollar’s exchange rate in relation to other currencies when the dollar was collapsing in value in relation to gold and silver.

The Federal Reserve realized that its massive purchase of bonds in order to keep their
prices high (and thus interest rates low) was threatened by the dollar’s rapid loss of value in terms of gold and silver. The Federal Reserve was concerned that large holders of US dollars, such as the central banks of China and Japan and the OPEC sovereign investment funds, might join the flight of individual investors away from the US dollar, thus ending in the fall of the dollar’s foreign exchange value and thus decline in US bond and stock prices.

Intelligent people could see that the US government could not afford the long and numerous wars that the neoconservatives were engineering or the loss of tax base and consumer income from offshoring millions of US middle class jobs for the sake of executive bonuses and shareholder capital gains. They could see what was in the cards, and began exiting the dollar for gold and silver.

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Steve Quayle ~ Bank “Hacks” Perpetrated At “Nation-State” Level

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Northeast Intelligence Network March 29 2013

More hacks coming to siphon your money

Ten months ago a massive powerful bank hack hit over 206 banks worldwide simultaneously siphoning billions from customer accounts. It went under-reported and unnoticed by main stream media. Six months ago NatWest/RBS online banking and ATM went offline. Millions had trouble accessing their funds. A few months later online banking and ATMs from some of the biggest names in banking in the US started to receive DNS error messages and were knocked offline completely or were limping along,causing millions a hassle and head ache to get their funds.

Two weeks ago Chase had an “issue” with their online banking computers as well as their mainframe servers were hit by some “problems” that caused thousands of their customers bank accounts to read $0.00 as their balance. Millions of others had issues accessing funds and ATM’S from the house of Morgan. Last week the entire banking network of South Korea went down for hours, millions of customers were not able to access their funds, use ATMs or even check their balance. This week the entire Internet teetered on the brink of collapse as SpamHaus was hit by over 300 billion bits of information per second. That is what we are led to believe and that this attack was led by a rival company Cyberbunker. Whether this story is true or not, it does highlight the sensitivity of the internet. The overpowering pattern and factor here is that wherever you look in the world there are issues with the internet, networks and servers and it all centers around banking.

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Tim Price ~ A Central Banker’s Checklist For Prosperity

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Sovereign Man March 24 2013

If there was ever a policy manual on how to deal with recession, the Fed and ECB’s copies have fallen out of the ugly tree and managed to hit every single branch on the way down.

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Indeed, if the world’s central bankers had wanted to perpetuate this recession until hell froze over, they couldn’t have done a better job:

  • Set interest rates to levels flatter than ten-day old beer? Check.
  • Stimulate consumption? Check. At the expense of savers? Check.
  • Push stock markets to all-time nominal highs at shaky valuations? Check.
  • Prevent widespread liquidation of financial assets? Check.
  • Keep lending money to shaky businesses? Check.
  • Keep that QE liquor flowing to ensure that banks never have to face their hangover whilst sober ? Check.
  • Ensure that bad banks– and let’s face it, they’re all bad– gorge on lousy government debt instead of lending to small and medium sized businesses? Check.
  • Keep on inflating base money? Check.
  • Interfere with the market to ensure that bad assets never reach a clearing price? Check.
  • Inflate retail prices? Check.
  • Seize funds directly from savers’ accounts? Check.

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