This means that had you or I been in the know we could have
earned
about 10 years of savings account interest in only six months,
without buying a thing. We could have asked our respective
bankers
to convert our dollar savings accounts into Euros with a simple
bookkeeping entry. Yes, there would have been a little red tape,
but the international money dealers and bankers do this all the
time
for their own accounts. Perhaps we need to know what they know?
The mysterious Euro is not the only measure of the dollar's
collapse. There is hardly a currency that has not gone up
against
the dollar, including the South African Rand, which has more
than
doubled! Stories of the falling dollar are whispered in hushed
tones but do not often make it into the US press, or when it
does
the explanation is usually murky.
TOP
Few Americans as yet give any real meaning to the fall of the
dollar
or related it to the rise in gold prices. But it is not a
coincidence, and there is reason to believe the trend has not
run
its course.
If you were to ask your local bank VP to explain the
relationship
between gold and the dollar, you could expect a long and
confusing
answer, ending with something like this: "Nobody knows what will
happen in the final analysis." Your banker's MBA or PHD degree
does
not equip him to understand anything as basic as what makes gold
and
the dollar go up and down.
TOP
But the big usury-bankers (internationalists with license to
print
diluted money out of thin air) who own and run the Federal
Reserve
anti-bank and its clone anti-banks in world financial centers
understand gold very well. You, too, can understand it and so
can
your l3-year old, if he is bright and willing.
Here are a few
questions:
- What do serial wars have to do with gold and the dollar?
- How is our currency diluted?
- What does the Federal Reserve System (FED) do?
- Why didn't CNN or 60 Minutes explain this?
- Who owns the gold?
TOP
This, Part I of GOLD: A REDISCOVERED INVESTMENT explained why
logical thinking persons might buy gold now and why it made less
sense to do so in past decades.
A queasy stock market (especially the speculative NASDAQ),
continuing Wall Street scandal, inflationary loss of buying
power
and general fears about all kinds of violence are among the "gut
feel" elements that have awakened the slumbering interest in
gold
ownership.
But there is also a more basic reason. Recent low world interest
rates favor gold investment. According to the Gold Anti-Trust
Action Committee (GATA ) say other King Midas investors are
believed
to have soaked up as much as half of the known world supply,
accumulated over 5000 years of mining. Among the new huge
accumulators of gold are the billion Chinese who are becoming
consumers and savvy savers. Several veteran gold experts, who
claim
to study the figures from morning till night, state that
hoarders
are fast overrunning the historical supply.
TOP
An
Interesting Unasked Question:
Who Holds the World's Debt?
by Israel Shamir,
from the
Shamir Readers Yahoo! Newsgroup
JAFFA: January 2, 2004-- It is rather
embarrassing to recommend a not-too-new book to the
readers; it is probable that you have read it and know
the author. However, if you are as ignorant of
Michael Rowbotham as I was, you will receive a
surprise, even a shock. Rowbotham noticed that all the
countries from the US to Uganda are deep in debt; he
dared to ask: "Debt to whom?" Who are these people that
the whole world is indebted to?
<Begin Excerpt>For example, every country in the
world suffers from a massive and constantly increasing
national debt. Britain has a national debt that is fast
approaching £400 billion. Canada's debt has reached $560
billion and Germany's now exceeds 500 billion
deutschmarks. So are these poor countries?
No
more so than Japan with a debt equivalent to two
trillion dollars or America with a national debt now in
excess of five trillion dollars. Since the poorer
nations are crippled by their indebtedness to
international lending institutions and foreign banks,
the overall picture is of a world suffering acute and
ever worsening insolvency.
But this is really quite illogical and absurd... The
question almost asks itself. If all the nations of the
world are in debt, who are they in debt to? Rationally,
where there is a debtor, there should be someone else
who is a creditor. If every nation is in debt, who,
precisely, owes whom? In addition to the logical
absurdity of all nations being simultaneously insolvent,
such escalating national debts are a complete
contradiction of the real and obvious wealth of these
nations.
This is underlined by
the fact that the nations which run the largest national
debts are those with the most advanced economies. What
can we say to the developing nations struggling under
the burden of their debt, nations who have copied our
economic institutions and aspire to a life free from
poverty?
'Work hard, and one day
your debt will be as small as America's - a mere five
trillion dollars!'...
Click link to continue reading the
first chapter of The Grip of Death
Or get the books
Goodbye America!
Globalization, Debt and the
Dollar Empire
The Grip of
Death:
A Study of Modern
Money, Debt Slavery and Destructive Economics
|
|
|
WHTT is inclined to believe them for two good reasons: low
interest
rates make gold purchases appear logical and the cost of serial
wars
makes it all too obvious that the dollar is being destroyed by
dilution in front of our eyes.
The figures for gold sales by central banks--the world's largest
holders--are well-hidden by these huge hoarders and impossible
to
verify, because the hoarders are not obliged to tell anyone more
than they choose. Determining who owns the supply of gold
accumulated over 5000 years of history is not the precise
science
some tell us it is. The availability of inflated currencies to
buy
gold is much more critical than the central bank's supplies or
any
government statistics.
TOP
Consumption for jewelry and investment by individuals is thought
to
have exceeded new production of gold for each of the last
several
years. The new production and current consumption figures are
documented by industry sources such as mining companies who brag
about their production and generally tell the truth, and most
new
gold comes from a handful of big producers. New production is
dwarfed by one month's U.S. federal deficit, which is headed for
500
billion dollars this year alone. To put it another way, there is
not much gold compared to the money supply. It is a pea compared
to
an orange.
There are natural gold consumers that buy as a method of
savings.
they have no other choice. Gaza City in occupied Palestine is a
very poor place where this writer visited. When you bank in Gaza
City, you might wonder if your bank will be there the next
morning,
and because Gaza Arabs are literal prisoners of the State of
Israel,
they are forced to use Israeli currency.
TOP
My Arab friend took me to the gold market in Gaza City, and
there I
stayed for a few hours, talking to two of the businessmen who
make
their living converting Shekels--the money used in Gaza--into 22
and
24 karat gold jewelry for people who are fortunate enough to
accumulate paper money. Gaza craftsmen pound the near pure gold
into bracelets, necklaces and other jewelry, and because there
are
few jobs in Gaza, their labor is very cheap. Gaza gold jewelry
sells at only a small premium over its gold value.
One of the gold buyers was a well-dressed young Arab
businessman in a western suit and tie. His wife wore
traditional Muslim attire, covering all but her face.
|
|
They sat next to me in the small
stall
where the gold trader kept his inventory on hooks in a little
bay
window off his cubicle that was just large enough that his right
arm
could reach all of its corners. There was just room for four of
us
to sit on the L-shaped wooden bench. I waited while he did
business. TOP
The parties negotiate quietly for a few minutes, the buyer
discussing the several handcrafted bracelets with his wife. He
quietly settled on three bracelets, each about a half ounce,
which
he paid for with thousand Shekel notes. The young Arab
businessman
slipped the purchased bracelets onto the arm of his lady where
they
disappeared under the black sleeve of her garment. They
departed,
having converted fast-decaying and hated Shekels to wealth that
they
could carry and that would not decay. The lady looked pleased;
there is not much wealth in Gaza, and the family's savings
account
on her arm is safe against dilution; it is portable wealth that
requires no banker and that "moths cannot eat."
A steady stream of buyers moved through the Gaza gold market.
Ordinary people buy gold in Gaza, if they are lucky enough to
have
any paper money to exchange for it.
IS GOLD AN INVESTMENT?
So enormous has been the fall of the dollar in world markets as
to
convince many substantial investors that it is suffering from
serious dilution wounds that may never heal. Gold has risen
about
60% in value since September 11, 2001, to over $413.00 per
ounce.
Platinum and Palladium have risen even more.
TOP
The Gaza Arab has real problems. He might have to leave his home
or
see it destroyed at a moments notice. He is subject to search,
and
his house could be bulldozed with no recourse available to him.
His
bank could be blown to bits by a missile. But even if none of
these
things happen, he knows the Israeli currency loses 20% or more
of
its value every year. He is a natural gold buyer.
What about those who think we live in safe and war free
countries? With savings accounts returning two percent per year
or less, some savers have figured out it is logical to
accumulate gold in place of bank deposits, T-bills or CDs. While
gold yields zero, anyone can see there is an upward trend, while
savings accounts yield so little that the sacrifice in income is
nominal. A teenager buying cokes can tell you that dilution is
many times more than 1% a year; regardless of what the
government tells us about stable prices, most know otherwise.
TOP
During much of the 1980s the income sacrifice to own gold was 5
10%
per year or more. In other words, you had to forgo 10% of annual
income to own gold. This may be the cheapest time in American
history to convert savings to gold. It also may be the period of
highest dilution prospects in recorded history. As long as
interest on savings remains low and inflation is present, gold
makes perfect sense. Citizens around the troubled world know
this and are buying. Americans are still beguiled by what their
stockbroker tells them.
The dilution (commonly know as inflation) loss in the U.S. is
three or more times the return on savings accounts, depending on
whose numbers you listen to; in most developing countries it is
much worse. Dilution in Israel is more than 20% per annum, year
in and year out. Wherever this is true, there is little
sacrifice in accepting a zero return on gold in exchange for the
hope of a price rise that will at least keep up with dilution.
TOP
The current gold price is 50% above its lows of two years ago,
but still less than half of the 1984 high water mark of $800.00
plus per ounce. Gold reached these heights at an illogical time
when interest rates were at strangulation levels in the U.S. and
returns available on savings and bonds were at a record 10% or
more. In the following decade, the rising stock market caused
investors to delay all worries about dilution and gold. This
trend of disinvestments in gold continued for 20 years. Overt
manipulative selling by "central banks," which will be discussed
later, and a once-in-a-lifetime bull market in stocks caused
most investors to forget all about gold. Not so today.
Today economic conditions are very much the reverse of the
1980s. Central banks are printing money in unheard of quantities
to finance the American Empire's serial war policy. Frightened
and savvy investors see through the war scam and realize how
much is costs; gold was rediscovered as an investment when the
stock market turned lower at the turn of the 21st century. The
fundamental reasons for a gold rise are present and the upward
trend is apparent. Our purpose is not to predict gold prices,
but to explain the dynamics of the market and urge Americans to
take the falling dollar market in dead earnest. Neither is a
fluke and each goes hand in glove with the other.
TOP
CONCLUSION
The young businessman in Gaza City put his ounce and a half of
pure
gold savings on his wife's covered arm for security. This man
has an advantage over the American, for he could have no
illusion over the crumbling values of the Shekel, nor could he
be so foolish as to not recognize the tenuousness of his life;
he wisely thinks of survival. He must live in a state of
financial reality, and he instinctively knows the Shekels in his
wallet are intrinsically worthless and lose value as surely as
soda water loses its fizz. He has no illusions about the money
in his pocket; it is money issued by Israel, his enemy, who he
distrusts, if not despises, so he is wary. The Gaza man has this
advantage over the American. He labors under no illusion of
honest money.
Americans do not know enough to mistrust the issuer of our
money. They have been trained to trust those who issue their
dollars. The coins and bills they hold contain the now lost
motto, "IN GOD WE TRUST." But like the bracelets in Gaza City,
the dollar was once
made of precious metals. It was worthy of trust. If we practiced
"In God We Trust," we would do as the man in Gaza City does.
In upcoming part II:
How the Federal Reserve Banks
dilutes money and why.
TOP
Pastor Charles E. Carlson is managing partner and directs We
Hold These Truths, Ltd. a conservative non-profit organization
based upon defending the fundamental principles of the US
Constitution, exposing propaganda and stories missing in the
Mainstream, holding accountable religious leaders teaching and
promoting activities contrary to Christianity and ending serial
wars created by US elitism and favored nation's status. His
political and faith based newsletter,
The
Pharisee Watch examines the forces shaping
every policy of the US government
|
