Best of the Week
Most Popular
1.The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - Doug_Wakefieldth
2.Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - Nadeem_Walayat
3.The Trend Every Nation on Earth Is Pouring Money Into - Keith Fitz-Gerald
4.Do Tumbling Buybacks Signal Another Stock Market Crash? - 26Mike_Whitney
5.Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - Nadeem_Walayat
6.Gold And Silver Price - Respect The Trend But Prepare For A Reversal - Michael_Noonan
7.U.S. Economy Faltering Momentum, Debt and Asset Bubbles - Lacy Hunt
8.Bullish Silver Stealth Buying - Zeal_LLC
9.Euro, USD, Gold and Stocks According to Chartology - Rambus_Chartology
10.Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - EWI
Last 5 days
Pretium - Canadian Golden Elephant - 31st Oct 14
What USA Today Got Wrong About the Stock Market Fear Gauge - 31st Oct 14
Election Result - Labour Wins South Yorkshire Police and Crime Commissioner - 31st Oct 14
Gold Price Falls, Stocks Record Highs as Japan Goes ‘Weimar’ - 31st Oct 14
EUR/USD - Double Bottom Or New Lows? - 31st Oct 14
More Downside Ahead for Gold and Silver - 31st Oct 14
QE Is Dead, Now You Tell Me What You Know - 31st Oct 14
Welcome to the World of Volatility - 31st Oct 14
Stocks Bear Market Crash Towards New All Time Highs as QE3 End Awaits QE4 Start - 31st Oct 14
US Mortgages, Risky Bisiness "Easy Money" - 30th Oct 14
Gold, Silver and Currency Wars - 30th Oct 14
How to Recognize a Stock Market “Bear Raid” on Wall Street - 30th Oct 14
U.S. Midterm Elections: Would a Republican Win Be Bullish for the Stock Market? - 30th Oct 14
Stock Market S&P Index MAP Wave Analysis Forecast - 30th Oct 14
Gold Price Declines Once Again As Expected - 30th Oct 14
Depression and the Economy of a Country - 30th Oct 14
Fed Ends QE? Greenspan Says Gold “Measurably” “Higher” In 5 Years - 30th Oct 14
Apocalypse Now Or Nirvana Next Week? - 30th Oct 14
Understanding Gold's Massive Impact on Fed Maneuvering - 30th Oct 14
Europe: Building a Banking Union - 30th Oct 14
The Colder War: How the Global Energy Trade Slipped From America's Grasp - 30th Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VIII) - 29th Oct 14
Flock of Black Swans Points to Imminent Stock Market Crash - 29th Oct 14
Bank of America's Mortgage Headaches - 29th Oct 14
Risk Management - Why I Run “Ultimate Trailing Stops” on All My Investments - 29th Oct 14
As the Eurozone Economy Stalls, China Cuts the Red Tape - 29th Oct 14
Stock Market Bubble Goes Pop - 29th Oct 14
Gold's Obituary - 29th Oct 14
A Medical Breakthrough Creating Stock Profits - 29th Oct 14
Greenspan: Gold Price Will Rise - 29th Oct 14
The Most Important Stock Market Chart on the Planet - 29th Oct 14
Mysterious Death od CEO Who Went Against the Petrodollar - 29th Oct 14
Hillary Clinton Could Be One of the Best U.S. Presidents Ever - 29th Oct 14
The Worst Advice Wall Street Ever Gave - 29th Oct 14
Bitcoin Price Narrow Range, Might Not Be for Long - 29th Oct 14
UKIP South Yorkshire PCC Election Win is Just Not Going to Happen - 29th Oct 14
Evidence of New U.S. Housing Market Real Estate Bust Starting to Appear - 28th Oct 14
Principle, Rigor and Execution Matter in U.S. Foreign Policy - 28th Oct 14
This Little Piggy Bent The Market - 28th Oct 14
Global Housing Markets - Don’t Buy A Home, You’ll Get Burned! - 28th Oct 14
U.S. Economic Snapshot - Strong Dollar Eating into corporate Profits - 28th Oct 14
Oliver Gross Says Peak Gold Is Here to Stay - 28th Oct 14
The Hedge Fund Rich List Infographic - 28th Oct 14
Does Gold Price Always Respond to Real Interest Rates? - 28th Oct 14
When Will Central Bank Morons Ever Learn? asks Albert Edwards at Societe General - 28th Oct 14
Functional Economics - Getting Your House in Order - 28th Oct 14
Humanity Accelerating to What Exactly? - 27th Oct 14
A Scary Story for Emerging Markets - 27th Oct 14
Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - 27th Oct 14
Europe Redefines Bank Stress Tests - 27th Oct 14
Stock Market Intermediate Correction Underway - 27th Oct 14
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans - 26th Oct 14
Obamacare Is Not a Revolution, It Is Mere Evolution - 26th Oct 14
Do Tumbling Buybacks Signal Another Stock Market Crash? - 26th Oct 14
Has the FTSE Stock Market Index Put in a Major Top? - 26th Oct 14
Christmas In October – Desperate Measures - 26th Oct 14
Stock Market Primary IV Continues - 26th Oct 14
Gold And Silver Price - Respect The Trend But Prepare For A Reversal - 25th Oct 14
Ebola Has Nothing To Do With The Stock Market - 25th Oct 14
The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - 25th Oct 14
Japanese Style Deflation Coming? Where? Fed Falling Behind the Curve? Which Way? - 25th Oct 14
Gold Price Rebounds but Gold Miners Struggle - 25th Oct 14
Stock Market Buy the Dip or Sell the Rally - 25th Oct 14
Get Ready for “Stupid Cheap” Stock Prices - 25th Oct 14
The Trend Every Nation on Earth Is Pouring Money Into - 25th Oct 14 - Keith Fitz-Gerald
Bitcoin Price Decline Stopped, Possibly Temporarily - 25th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

Gold and the Bankster Panic Crash of 2013

Commodities / Gold and Silver 2013 Feb 21, 2013 - 05:06 PM GMT

By: Andrew_McKillop

Commodities

TRASH ALL MONEYS
Normally this slogan comes from Anarchists or possibly Marxists, and more recently in Europe, since 2008, from Black Bloc groups which have moved on and extended their previous protest range which covered anti-nuclear action, protest against squatter evictions, civil rights protests, even gay marriage protest, either for or against. The Bankster Bloc is now onside and active, in the same quest. Its slogan is the same as the Black Bloc: Trash All Moneys.


In a recent eye-opening Market Oracle article 'The Great Gold Deception and Misdirection', Stewart Dougherty tells us about the predictable coming disaster for US federal finances, the Obama administration endlessly adding more fuel to the funeral pyre of the US economy, and society. Dougherty  then asks: "But now we have a contradiction. On the one hand, we are told that the government smashes precious metals prices in order to prop up the value of the dollar. On the other hand, we learn that the government intends to trash the dollar, in an effort to jump start the dying economy through export growth. Which is it then, and what does the government really want?".

Any anarchist, psychotic or dreamer can answer that question: everything and nothing. The big difference is the Bankster Bloc also wants a global currency war, but these Anarchists do not need to mess around in street demos wearing a chechia to hide their faces and fend off the teargas.

FUNNY MONEY IS ONLY AMUSING FOR SOME
Some economists define "a Veblen good", named for Thorstein Veblen as high-status items like luxury cars, expensive suits and shoes and watches, not essentially and necessarily gold or other PM (precious metals), but above all things which stay appealing to the rich as long as their prices remain high or increase. A decrease in the price of Veblen goods will cause them to become less exclusive, which will reduce their previous buyers' fondness for these goods. But how about money?

This above all concerns governments, not individuals. However, the spendthrift and workshy, prestige-conscious State is very similar to its lookalike private counterparts, the elite, compulsively driven by:

*The desire to show off self-defined "success"
*The need to have the same or more of what all other States or elites have
*Prolific self-delusion, or mindless advertising and publicity for the private version
*Easy credit and fast gratification

For governments and the State, which when teamed with the Banksters produces the ultimate and worst form of Crony Capitalism, any theory will go. The fundamental basic is anarchic "thinking", that is kneejerk response and reaction. We can take the 1980-2000 period as broadly dominated, in the Western model mature democratic States and their economic and monetary "management" policies, by so-called Supply Side economics or Reaganomics. Production, that is the supply of money, goods and services is the most important determinant of economic growth, of course assuming that economic growth is important. In reality, ever since 1980, long-term trend rates of economic growth declined in almost every single Western type mature democracy. By design?

The supposed theory of Reaganomics is or was in apparent stark contrast to Keynesian theory, which claimed that any time demand falters this is a national catastrophe, leading to lower production. Any lagging of consumer demand behind production will drag the economy into recession. Governments need to print money and stoke up the consumer mob. Greed is good. There is in fact no real difference between these two philosophies or policies, because both of them take as basic that the Bankster Bloc will come onboard and stay for the ride, but its decision to leave can take only a few days or weeks.

BANKSTER PANIC AND THE GOLD CRASH OF 2013
Ayn Rand, not known as a fierce attacker of the Bankster Bloc is cited by Stewart Dougherty in his article, Rand saying: "We are fast approaching the stage of ultimate inversion: the stage where the government is free to do anything it pleases, while citizens may act only by permission; which is the stage of the darkest periods of human history, the stage of rule by brute force.”

This is the same form of paying paranoia - paying in the sense of book sales - used by Noam Chomsky to rail about the so-called Hyper Imerpium of the USA, unable to beat Afghan resistants and Pakistani NW Frontier tribal leaders, and now waging Cyber War against Chinese teenage hackers in their cybercafes! The fundamental error of Rand or Chomsky is ignoring the raw anarchy, non-rule, disorganization and ever rising dysfunctionality of the late stage State and its late stage Economy.

The Bankster Bloc is small, determined and organized, and feels all-powerful compared with the delinquant and delirious State. Now is the moment to act. The gold panic of early 2013 is a stark and clear example. For its own self-image, insofar as it talks about itself, the bankster elite claims it is not anarchic - but compared to the State and the economy "as we knew it" the Bankster Bloc is totally anarchic. It has now decided to trash all moneys, either directly by its own action, or through its Crony Capitalist political pawns and servants, called Great Leaders of Democracy by the zombie media.

We could look for clear advance warnings of the coming gold panic - both Soros and Bacon clearly said they were bailing out of gold in late 2012, while Paulson claimed he was hanging in. But in the weeks following there were private meetings we do not know about, drawing together the Bankster Bloc, planning the rout. Their sell-off's target price is also something we don't know; we could try looking at mining costs, overground gold stocks, strong and weak currencies (in fact weak and weaker moneys), and surmise the possible floor prices which may be very low. But this mulling would be as useless as historians looking at the Night of Saint Barthelemey of August 1572 and asking why perhaps 20 000 people were massacred in Paris streets in the few days following it, and tens of thousands of others, in other French cities in the weeks and months after. The historical cause or causes of these events is still disputed. What mattered is a core elite group decided and acted.

The gold panic of 2013 is above all stark proof that we can shuffle the two words “banksters” and “governments” because they mean the same thing, today. Most important of all, neither of them want economic growth, full employment, balanced budgets, stable moneys or any other Olde Tyme iconic symbol of the national economy.

Time is now much too short. A new phase or stage of the crisis has started.

This stage or phase is driven by the banksters, and their action will get brutally clear, for all persons, however much they like to ignore reality, however much they want to believe in Muddle Through. When there is a Bankster Panic this is a fundamental financial panic, unlike 1929 or 1973 or 1987 or 2008 which were stock exchange panics, partly driven by financial panic, but including several other factors or drivers. Arguably, the Banksters played neutral-to-positive in these panics, they did not in any coordinated, massive and repeated way act to intensify the stock exchange panic, except in the present post-2008 context and situation, now radically intensifying.

THE CRASH OF '73 AND NOW
Not 1973, but 1873, and a much clearer Bankster Panic. This financial crisis triggered an international economic depression in both Europe and the United States that lasted at least 7 years, even 10 year or longer. One key factor driving this financial panic was a brutal fall in world demand for silver following Germany's decision to abandon the silver standard in the wake of the Franco-Prussian war and the war reparations, in gold, that Germany received. Gold mine supply had also increased, pushing aside demand for monetary silver as the price of gold fell. The impact of the crisis on general prices - intense deflation - can be seen in Chart 1 of this:
http://archive.org/stream/cu31924013815166#page/n5/mode/2up

Attacking gold, today, can be seen as attacking the very summit of the monetary-fiduciary pyramid or currency confidence system. The goal is clear: Trash all world moneys but also, just as important, trigger deflation and force an increase of interest rates. This is the ultimate imaginable Death Cross signal for the economy and stock prices.

The present strategy of the Banksters is clear: they want a credit deflationary crisis. In the general economy. This will intensify the fall in demand, further reducing prices and increasing supply gluts, for example in the carmaking industry. Distressed assets at firesale prices will become even more abundant as the deflationary recession intensifies.
As we know, unstable currencies are a worldwide phenomenon today, but from 2013 their further destabilization is a clear target of the Banksters. Spontaneous reaction to this, as in previous cases, will include barter and alternate money arrangements, the equivalent of 1990s "dollarization" in the debt-crippled economies of several countries outside the OECD group. Global trade can only be hit, due to  official currencies being obligatory to pay for imported goods. Th key role of barter as a protective tariff shield will be seen in the forced re-localization of economic activity at a much lower level than today.

To what extent the Banksters have foreseen what will happen as they pursue their strategy is open to debate. Their track record on looking far ahead is like that of their crony political friends and servants, and brutal reversals of their action is at any time possible - while the economy grinds lower in a deflationary spiral. Their most basic objectives, which are financial super profits and forcing up interest rates, are their primary concern. At the current time, given the tragic state of the economy in most OECD countries, this decision by the Banksters can only be seen as anarchic.

The countdown to major civil unrest is probably short, in several countries, but here again the forecasting is difficult, and we must wait to see how the political pawns of the Banksters act.

By Andrew McKillop

Contact: xtran9@gmail.com

Former chief policy analyst, Division A Policy, DG XVII Energy, European Commission. Andrew McKillop Biographic Highlights

Co-author 'The Doomsday Machine', Palgrave Macmillan USA, 2012

Andrew McKillop has more than 30 years experience in the energy, economic and finance domains. Trained at London UK’s University College, he has had specially long experience of energy policy, project administration and the development and financing of alternate energy. This included his role of in-house Expert on Policy and Programming at the DG XVII-Energy of the European Commission, Director of Information of the OAPEC technology transfer subsidiary, AREC and researcher for UN agencies including the ILO.

© 2013 Copyright Andrew McKillop - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisor.

Andrew McKillop Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

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

Free Report - Financial Markets 2014