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Trading Lessons

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.

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