IT’S THE GOLD AGAIN FOLKS: PART ONE: A LOOK BACK
Well gold is in the news again folks, or rather, it is always in the news, but since there's only one of me, it gets rather difficult to cover everything all the time. So, a little catching up is in order over the next few days. This article was shared by many of you, and it seems Mr. "Tyler Durden" of Zero Hedge has gone back and done some digging, and found this:
Now, if you scroll all the way to the bottom, you'll find a link to the same article here:
Foreign Relations of the United States, 1973–1976 Volume XXXI, Foreign Economic Policy, Document 63
Now let's look closely at a few passages:
U.S. objectives for world monetary system—a durable, stable system, with the SDR [ZH: or USD] as a strong reserve asset at its center — are incompatible with a continued important role for gold as a reserve asset.... It is the U.S. concern that any substantial increase now in the price at which official gold transactions are made would strengthen the position of gold in the system, and cripple the SDR [ZH: or USD].
"In other words: gold can not be allowed to dominated a "durable, stable system", and a rising gold price would cripple the reserve currency du jour: well known by most, but always better to see it admitted in official Top Secret correspondence."
"Mr. Enders: Well, there are several ways. One way is we could say to them that they would accept this kind of arrangement, provided that the gold were channelled out through an international agency—either in the IMF or a special pool—and sold into the market, so there would be gradual increases.
Secretary Kissinger: But the French would never go for this.
Mr. Enders: We can have a counter-proposal. There’s a further proposal—and that is that the IMF begin selling its gold—which is now 7 billion—to the world market, and we should try to negotiate that. That would begin the demonetization of gold.
Secretary Kissinger: Why are we so eager to get gold out of the system?
Mr. Enders: We were eager to get it out of the system—get started—because it’s a typical balancing of either forward or back. If this proposal goes back, it will go back into the centerpiece system.
Secretary Kissinger: But why is it against our interests? I understand the argument that it’s against our interest that the Europeans take a unilateral decision contrary to our policy. Why is it against our interest to have gold in the system?
Mr. Enders: It’s against our interest to have gold in the system because for it to remain there it would result in it being evaluated periodically. Although we have still some substantial gold holdings—about 11 billion—a larger part of the official gold in the world is concentrated in Western Europe. This gives them the dominant position in world reserves and the dominant means of creating reserves. We’ve been trying to get away from that into a system in which we can control—
…
Mr. Enders: Yes. But in order for them to do it anyway, they would have to be in violation of important articles of the IMF. So this would not be a total departure. (Laughter.) But there would be reluctance on the part of some Europeans to do this. We could also make it less interesting for them by beginning to sell our own gold in the market, and this would put pressure on them."
Et voila! we have at least a part of an answer, a long-term historically rooted answer, to part of what's been going on since President Nixon took the dollar off the gold standard in 1971: Europe was making unilateral moves to pull away from the U.S dollar reserve status, a move apparently initiated by the French, and indeed, a little digging will reveal that this process was being pushed as far back as the government of President Charles de Gaulle. Reading further into the document, the attitude of Henry Kissinger, then the U.S. Secretary of State, is revealing:
"Secretary Kissinger: If they go ahead on their own against our position on something that we consider central to our interests, we’ve got to show them that that they can’t get away with it. Hopefully, we should have the right position. But we just cannot let them get away with these unilateral steps all the time."
In other words, the USA was opposed to sovereign European nations acting like sovereign nations.
So we have a basic premise: in order to prop up the dollar, various US controlled or influenced institutions were to sell bullion reserves to suppress gold prices and buttress the dollar. Given the attitude, would this have possibly involved the the covert, and quite illegal, sale of the bullion reserves of other countries, such as Germany? and is this why the US fed has been "reluctant" to repatriate that country's gold?
Well, by the above premise, repatriating Germany's (or anyone else's gold), would allow such a nation to exercise greater independence. But you cannot repatriate what isn't there... which leads us to make a little prediction. Watch for some nation - possibly from the BRICSA nations - to call for an international audit of the US Federal Reserve system. Of course, it won't happen, but watch for it anyway, because if the Vatican can be audited, why not the Fed, which never has been? To refuse an audit, however, will further weaken the already strained system...
See you.... oh wait, there's one more thing:
POSTSCRIPT: Some of you have been emailing me and asking "Just who is this 'Tyler Durden' anyway?" Well, I cannot say I know, but, I'll share the following information, though I cannot verify if the individual mentioned in the following quotation is the current "Tyler Durden" of Zero Hedge or not:
"Dan Ivandjiiski was traveling in Poland when he received an e-mail... A former trader himself, he'd been railing against high-speed trading for months on his new blog, called Zero Hedge. From his spare apartment on the Upper East Side of Manhattan, he'd been posting under the pseudonym Tyler Durden, the name of the psychopathic character in Chuck Palahiuk's novel Fight Club. Few outside his inner circle knew his true identity, but his savvy, numbers-centric analysis made it obvious to his blog's faithful readers that he'd been a Wall Street insider who couldn't take all the bull**** anymore.
"Durden's primary target - some might even say morbid obsession - was Goldman Sachs. He'd become convinced that the powerful bank was manipulating markets for its own benefit....
"By the summer of2009, Zero Hedge had become a must-read for Wall Street insiders."(Scott Patterson, Dark Pools: The Rise of the Machine Traders and the Rigging of the U.S. Stock Market, [New York: Crown Business, 2013], p. 251.)
And one more thing, "Durden," like many others, increased his attentions to the issue of High-Speed Trading, or High Frequency Trading, after the May 6, 2010 "Flash Crash."
See you on the flip side.
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FOA (friend of another) was a high ranking gold trader and insider that briefly blitzed the gold scene over a decade ago, he also provided interesting historical analysis. FOFOA (friend of friend of another) has carried the flame and has a website, http://fofoa.blogspot.com.au/.
Their basic position is that once gold is completely decoupled from the monetary system (which means national reserves will no longer count and an international body will use some other reserve mechanism), gold will no longer serve as money but as a store of value (like precious stones or property).
Once this happens it will be revalued at anything upward of ten times it’s present value.
To those sources already mentioned I’ll add The Daily Bell, Global Research, and Max Keiser, who is always good for a much needed laugh as well …
Optimists … Last night I listened to Clif High’s recent Red Ice interview, and Richard Hoagland on Dark Matter Radio. Both are seeing collapse of the national security state and financial system as signs of positive change and are optimistic about the future … Clif High is enthused about bitcoin; Hoagland spoke of the secret space program and moon bases and urged everyone to read Rich Dolan and Joseph Farrell about the breakaway civilization.
Pessimists … Here’s Lindsey Williams’ latest ‘revelation’… may be some truth in it. Global Currency Reset Within 90 Days
http://www.lindseywilliams.net/lindsey-williams-goldseek-radio-chris-waltzek-december-2013-post/
Gold and silver price fixing
– London Gold Fix Calls Draw Scrutiny Amid Heavy Trading
Every business day in London, five banks meet to set the price of gold in a ritual that dates back to 1919.
http://www.bloomberg.com/news/2013-11-26/gold-fix-drawing-scrutiny-amid-knowledge-tied-to-eruption.html
– Silver Update 12/6/13 Silver Fixing
http://www.youtube.com/watch?v=9–YxIKJSpo
Thanks to Dr. Farrell and everyone here for support … stay informed and hopeful!
I mean Crooked States Of America.
Oh Beautiful, for spacious skies
for amber waves of grain,
for purple robes of merchantiles
above disputed terrain,
Amerika, Amerika,
“God” spawned its seed on thee
Destroy the hood
preaching brotherhood
from sleaze to pining sleaze.
The USA foundation has always been swindling somebody out of their rich’s be they native people, working class, poor people in general. Anyone who does not have real power no matter how much money you have. It has really been the Cooked States of America.
I throw King World News and Paul Craig Roberts into the mix, just to keep an open mind on what other intelligent and knowledgeable people have to say, but I love the three sites already mentioned for their out of the box thinking,
Engdahl I know, and I will look into his site, I have only read articles found elsewhere,
When will the US be rid of these despicable oligarchs ruling in its name?
Issuing currency = Sovereignty.
Gold backed currencies forces an equality factor in sovereignty.
The 1973 Oil Crisis was engineered to make an oil backed reserve currency in dollars only(because gold had to be replaced in a manner to maintain control/it was planned in to occur in sequencial stages over a period of time).
The SDR, in electronic form, has been the goal for a long, long time.
Is an audit by THE criminal syndicate to be believed? Seriously.
Just the mention of Henry Kissinger’ name makes me puke, this sleezebag’ name has been linked to every conspiracy theory known to man.
Seriously, the yellow metal has been manipulated since Venice, and now we all know what happened in Venice back when it was a den of Vipers, then they moved house.
China and Russia are buying gold like there’s no tomorrow, and I don’t think they are stupid. Zero Hedge is a great site and I go there every day, and I know nothing about finance. Lets see what Joseph has for us tomorrow, I’ll bet its a WHOPPER DOOZIE!!!
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These are great, all, these websites. It’d be great to know more of what this alert crew reads… I think the defining characteristic of all three is they have the same intention behind them: How do I map reality?
But the reasons for Nixon’s actions toward gold in the early 1970s aren’t news. The weakening of the US dollar in the 1960s and early 1970s is a big reason for the actions of OPEC in the early 70s too. 1973 is also the last year of a US trade surplus with the world.
Anyhow, the question remains: Why would gold be of any particular value except for some industrial purposes?
And a big speculative, but it’s very likely that gold can be made in quantity reasonably easily–no one doesn’t need a nuclear reactor of any type either.
Yes
…the three websites provide needed clarity on events of late and all things current. Let me add one more trusted analyst of history in which to review for ones clarity of whats going on…. Author/Historian Mr. F. William Engdahl. Website… engdahl.oilgeopolitics.net. His books and articles….and interviews on youtube…supplement and compliment Fitts, Farrell , and Zero Hedge, as per providing deep historical analysis of todays worldwide geopolitical events. Read his half dozen books..each is a grad school of knowledge of behind the scenes goings-on of political /historical events. Youll finish each book and walk outside on a clody rainy day and finally see the sun shining brightly as youll be so filled with the clear broad picture of whats really going on. Bless all of these gifted authors snd analysts.
Interesting loop for me. I heard about Solari.com, Catherine Austin Fitts, by reading the comments on Zero Hedge which I contend is a must-read even if you are not a Wall Street investor. Solari then led me to this website. Personally, I think you can’t consider yourself to have accurate information, financial or political, unless you are reading at least these three websites daily; and the resulting interweb of readers and their input is at the least fulfilling, often humbling.
Thanks, as always, Dr. Farrell.