Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Will You Make Money in the New Silver Bull Market ? - 13th Aug 20
Hyper-Deflation Capital Destruction And Gold & Silver - 13th Aug 20
Stock Market Correction Approaching - 13th Aug 20
Silver Took the Stairs to $21 in 2008, Took Escalator to $29 2010. Is Silver on Elevator to 120th floor today? - 13th Aug 20
President Trump Signs Additional COVID Relief – What To Expect from the Markets - 13th Aug 20
Has Gold's Upward Drive Come to an End? - 13th Aug 20
YouTuber Ads Revenue & How to Start a Career on YouTube - 13th Aug 20
Silver Notches Best Month Since 1979 - 12th Aug 20
Silver Shorts Get Squeezed Hard… What’s Next? - 12th Aug 20
A Tale of Two Precious Metal Bulls - 12th Aug 20
Stock Market Melt-Up Continues While Precious Metals Warn of Risks - 12th Aug 20
How Does the Gold Fit the Corona World? - 12th Aug 20
3 (free) ways to ride next big wave in EURUSD, USDJPY, gold, silver and more - 12th Aug 20
A Simple Way to Preserve Your Wealth Amid Uncertainty - 11th Aug 20
Precious Metals Complex Impulse Move : Where Is next Resistance? - 11th Aug 20
Gold Miners Junior Stcks Buying Spree - 11th Aug 20
Has the Fed Let the Inflation Genie Out of the Bottle? - 10th Aug 20
The Strange Food Trend That’s Making Investors Rich - 10th Aug 20
Supply & Demand For Money – The End of Inflation? - 10th Aug 20
Revisiting Our Silver and Gold Predictions – Get Ready For Higher Prices - 10th Aug 20
Storm Clouds Are Gathering for a Major Stock and Commodity Markets Downturn - 10th Aug 20
A 90-Year-Old Stock Market Investment Insight That's Relevant in 2020 - 10th Aug 20
Debt and Dollar Collapse Leading to Potential Stock Market Melt-Up, - 10th Aug 20
Coronavirus: UK Parents Demand ALL Schools OPEN September, 7 Million Children Abandoned by Teachers - 9th Aug 20
Computer GPU Fans Not Spinning Quick FIX - Sticky Fans Solution - 9th Aug 20
Find the Best Speech Converter for You - 9th Aug 20
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Ultimate Market Regulator Failed

Politics / Market Regulation Jun 13, 2010 - 07:36 AM GMT

By: Shelby_H_Moore

Politics

Best Financial Markets Analysis ArticleEmail sent to: Brooksley Born,

I know your fought for the regulation of OTC derivatives: http://www.marketoracle.co.uk/Article14485.html


I am for the most scientifically efficient regulation.

In 1988, Larry Summers wrote a critical research paper which implied that for the fiat (money=debt, fractional reserve, i.e. ponzi) financial system to be able to escape return to an intrinsic value of zero (as fiat systems have done in every example in history of man), that this most efficient regulator had to be suppressed:

http://www.gata.org/files/gibson.pdf

What Summers discovered was that gold is the regulator of real interest rates. The people vote and the market corrects itself. If interest rates are lower than the inflation rate, gold ALWAYS increases in fiat price (because gold pays no interest). Interest rates are the regulator of all financial activity. I want you to think outside the small box of incidences of "fraud" and think about the larger containing box of "opportunity cost". Interest rates regulate humanity's opportunity cost. If interest rates are not regulated by the market feedback mechanism (the mother of all fraud), then regulation of individual incidences "fraud" is analogous to putting a bandaid on cancer sores.

But gold failed to regulate from at least 1992 (especially 1996) forward. Why? Because CPI statistics were increasingly lies to make it appear that real interest rates were positive:

http://www.shadowstats.com/alternate_data/inflation-charts

And because Central Banks were leasing their gold to suppress the gold price. And because as the BIS confirms, up to 100 times more derivative silver (and gold) promises (effectively naked shorts) were sold than exists physical metal (more supply of "metal" means lower price):

http://silverstockreport.com/2009/OTC-silver-fraud.html

Greenspan misapplied the freemarket theory, because there is no way that markets can self-regulate if the feedback mechanism for interest rates is suppressed. I have a hard time believing that Greenspan did not know gold was being suppressed, since he stated, "central banks stand ready to sell unlimited quantities of gold".

Had your regulation of OTC derivatives pushed through, you would likely have revealed the interest rate manipulation, and caused the fiat system to self-correct earlier, which would have caused a massive recession if not depression and a skyrocketing gold and silver price.

Instead the boys kicked the can down the road, and what is coming now is horrific beyond description. What we are likely to get now is a backlash of socialism so severe (because decades of mis-allocation due to incorrect opportunity costs), that the freemarket will be crushed for decades. For example, even now the freemarket can not buy gold and vote, because mathemetically gold can only keep pace with inflation, and yet gold is taxed at 28% (and probably higher soon), so thus anyone who buys gold is going to lose at least 28% in terms of purchasing power (although this will be better than what is coming for people who don't buy gold).

Macro-economics trumps micro-management. Socialism is central decision making and freemarket is individual decision making. Capital is not money, and when money has incorrect oppportunity cost, then capital is destroyed (for a looong time). The freemarket did not fail, Summers and the boys suppressed the feedback mechanism that allows individuals to vote and regulate. The fraud was at the very top, at the macro-economic level. It was 100% socialistic (central management).

And now we are going to pay for it with horrific hyper-inflationary, greatest depression since Rome.

An interesting confirmation is the mathematical fact that when gold is money, savers gain 33,900% greater return per century:

http://www.marketoracle.co.uk/Article16212.html

God bless,

By Shelby Henry Moore III

antithesis@coolpage.com

short bio, I have published articles on FinancialSense.com, Gold-Eagle.com, SilverStockReport.com, LewRockwell.com. I am the sole or contributing programmer of numerous (some million+ user) commercial software applications, such as Corel Painter, Cool Page, WordUp,
Art-O-Matic, etc.. I have an education in engineering and math.

Disclaimer: My writings are my personal opinions, not to be construed as statements-of-fact. Do you own research. Licenses to think and communicate have never interested me too much, so I am not a licensed research, journalism, investment, legal, nor health professional. Please consult the proper authorities for all matters covered in my writings. I disclaim all liability for what you do after reading my writings. No one can predict the future, and if there is a physical world investment that never loses value, I haven't found it yet in my 44.1 years here on Niribu.

© 2010 Copyright Shelby Henry Moore III - All Rights Reserved


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Shelby Moore (author of this article)
15 Jun 10, 10:38
Delay not escape

Correction:

"Larry Summers wrote a critical research paper which implied that for the fiat (money=debt, fractional reserve, i.e. ponzi) financial system to be able to escape return to an intrinsic value of zero (as fiat systems have done in every example in history of man), that this most efficient regulator had to be suppressed"

Should be:

"Larry Summers wrote a critical research paper which implied that for the fiat (money=debt, fractional reserve, i.e. ponzi) financial system to be able to DELAY its return to an intrinsic value of zero (as fiat systems have done in every example in history of man), that this most efficient regulator had to be suppressed"

The point is that the suppression of gold as a regulator of interest rates, is necessary to extend the ponzi system.


Paul
15 Jun 10, 15:02
Larry Summers

Larry Summers wrote a paper outlining how the final financial reckoning can be delayed a little longer while he and his kind loot the system just a little more.

There, that sound better.


paul blanch
18 Jun 10, 07:38
gold taxation

Shelby,

I've read your theory as to the eventual taxation of gold, under a new gold standard controlled by our elite bankers. Your theory unfortunately has several FATAL flaws. For instance, if just ONE country, like China, refuses to join the banking cartel and establishes their own gold standard, then the price of gold cannot and will not be controlled. What chance is there that virtually every nation in the world will allow themselves to be subjugated to the elite bankers? I say there isn't a "snowballs chance in hell". China is already disdainful of the banking elite and any effort on their part to extend their control would be met with fierce nationalistic self interest..>>.. paulb


Shelby Moore
18 Jun 10, 12:01
re: gold taxation

Paul, don't be so naive. China has been controlled by the elite for a long time, since at least the opium wars. China is one of the main battering rams driving the NWO strategy.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules